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cp07-11-1995 cSUNDAY MONDAY TUESD -9- -10- -11- v. NUiCNINSON CITY CALENDAR 5:30 p.m. - City Council Week Ot Meeting at City Center July 9 LO July 15 1995 WEDNESDAY THURSDAY FRIDAY SATURDAY -12- -13- -14- -15- 10:00 a.m. - Directors Meetin 9:30 a.m. - Senior Advisory VACATION: at City Center Board Meeting at KEN MERRILL - July 10 -21 Staff Conf. Room Senior Center AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JULY 11, 1995 CALL TO ORDER - 5:30 P.M. 2. INVOCATION - Rev. Tim Caspers, Shalom Baptist Church NEEKerele6l 1101 M4111 MeElima ll►l 11 MINUTES OF REGULAR MEETING OF JUNE 27, 1995 AND BID OPENING OF JUNE 12, 1995 Action - Approve as distributed - Approve as amended (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS • 1. BUILDING OFFICIAL'S REPORT - JUNE 1995 2 PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES OF JUNE 1, 1995 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 95 -153 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING SECTION 2.60 BY CHANGING CERTAIN LANGUAGE RELATING TO THE LENGTH OF TERMS OF BOARD MEMBERS AND ADOPTING, BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (SECOND READING AND ADOPT) 2. ORDINANCE NO. 95 -154 - VACATION OF EASEMENTS (MIKE & GENELLE SCHALL) (SECOND READING AND ADOPT) 3. RESOLUTION NO. 10515 - RESOLUTION FOR PURCHASE 4. RESOLUTION NO. 10516 - RESOLUTION FOR 1996 TRANSIT GRANT APPLICATION 1 CITY COUNCIL AGENDA - July 11, 1995 • (c) TRANSIENT MERCHANT PERMIT FOR JEROLD UNTIEDT (DEFERRED JUNE 27, 1995) (d) HAULING LICENSE FOR AW DISPOSAL /AAGARD WEST ( COMMERCIAL /RESIDENTIAL/RECYCLING) (e) SHORT -TERM NON - INTOXICATING MALT LIQUOR LICENSE FOR R. C. PROMOTIONS Action - Motion to approve consent agenda ' l: :1 :. 1► . 1 I u NONE (a) PRESENTATION OF RESOLUTION OF APPRECIATION TO BECKY ALBRECHT OF HUTCHINSON TECHNOLOGY, INC. (b) PRESENTATION BY BARRY FICK FROM SPRINGSTED REGARDING REPORT ON COMPUTER CONSORTIUM STUDY 04T RI REPORT BY FORESTER MARK SCHNOBRICH ON CITY'S WEED PROGRAM Action - (d) PRESENTATION BY FINANCE DIRECTOR REGARDING PLANNING PROCESS FOR 1996 BUDGET AND YEAR END AUDIT REPORT Action - 2 • 0 CITY COUNCIL AGENDA - July 11, 1995 (a) CONSIDERATION OF DEVELOPMENT AGREEMENT FOR DOWNTOWN HUTCH HOTEL (TAX INCREMENT FINANCING) (DEFERRED NNE 27, 1995) Action - Motion to reject - Motion to approve nlllml1 1 (a) CONSIDERATION OF HOLDING CITY COUNCIL WORKSHOP ON JULY 25, 1995 AT 4:15 P.M. REGARDING CITY FINANCIAL REPORTING Action - Motion to reject - Motion to approve (b) CONSIDERATION OF VEHICLE PURCHASE RECOMMENDATION FOR NEW 1995 MODEL L8000 FORD CAB & CHASSIS Action - Motion to reject - Motion to approve (c) CONSIDERATION OF SETTING PUBLIC HEARING FOR STRONG BEER AND WINE LICENSE APPLICATION BY DURWOOD LAMPRECHT, DBA BAVARIAN HAUS Action - Motion to reject - Motion to approve and set hearing for July 25, 1995 at 6:00 p.m. (d) CONSIDERATION OF CONSTRUCTION ESCROW AGREEMENT Action - Motion to reject - Motion to approve (e) CONSIDERATION OF AGREEMENT WITH MN/DOT FOR STATE AID FOR AIRPORT MAINTENANCE AND OPERATION Action - Motion to reject - Motion to approve and adopt Resolution No. 10517 (1) CONSIDERATION OF AIRPORT CONDEMNATION ISSUE REGARDING SVANDA PROPERTY Action - Motion to reject - Motion to approve Sponsor Certification • 3 CITY COUNCIL AGENDA - July 11, 1995 : ►! • (a) COMMUNICATIONS (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds 4 L_ J • MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JUNE 27, 1995 1. The meeting was called to order at 5:30 p.m. by Mayor Torgerson. Present were: Mayor Marlin Torgerson, Council Members John Mlinar, Kay Peterson and Don Erickson. Absent: Council Member Bill Craig. Also present: City Administrator Gary D. Plotz, City Engineer John Rodeberg and City Attorney G. Barry Anderson. 2. In the absence of a pastor, there was no invocation. u11►1 1 .I The minutes of the regular meetings of May 23, 1995 and June 12, 1995 were approved as distributed. (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS is 1. FINANCIAL REPORT - MAY 1995 0 2. INVESTMENT REPORT 3. PLANNING COMMISSION MINUTES OF MAY 16, 1995 4. LIBRARY BOARD MINUTES OF JUNE 12, 1995 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 95 -152 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE, DISPOSITION OR TRANSFER OF CERTAIN REAL ESTATE TO HUTCHINSON COMMUNITY DEVELOPMENT CORPORATION AND ADOPTING, BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (SECOND READING AND ADOPT) 2. ORDINANCE NO. 95 -153 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING SECTION 2.60 BY CHANGING CERTAIN LANGUAGE RELATING TO THE LENGTH OF 1 14 CITY COUNCIL MINUTES - JUNE 27, 1995 0 TERMS OF BOARD MEMBERS AND ADOPTING, BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (FIRST READING AND SET SECOND READING FOR JULY 11, 1995) 3. RESOLUTION NO. 10502 - RESOLUTION FOR PURCHASE 4. RESOLUTION NO. 10503 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES 5. RESOLUTION NO. 10504 - RELEASING PLEDGED SECURITIES FROM CITIZENS BANK & TRUST CO., HUTCHINSON, MN 6. RESOLUTION NO. 10505 - RESOLUTION TO REINSTATE ASSESSMENTS FOR HELLANDS FORFEITED PROPERTY (c) TRANSIENT MERCHANT PERMIT FOR JEROLD UNTIEDT (d) DELINQUENT WATER AND SEWER ACCOUNTS . (e) CHANGE ORDER NO. 1 FOR CIVIC ARENA ICE SYSTEM RENOVATION (f) APPOINTMENT TO PLANNING COMMISSION — BILL ARNDT (g) OUT -OF -STATE TRAVEL FOR RANDY DEVRIES (h) HAULING LICENSES: I. MCKIMM MILK TRANSIT, INC. — COMMERCIAL HAULING 2. WITTE SANITATION -- COMMERCIAL/RECYCLING HAULING 0) VARIANCE TO REDUCE SETBACK TWO FEET FROM ALLEY FOR CONSTRUCTION OF GARAGE ADDITION REQUESTED BY JIM BENTON WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION (j) CONDITIONAL USE PERMIT REQUESTED BY JIM BENTON FOR CONSTRUCTION OF GARAGE ADDITION WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 10511) 2 0 CITY COUNCIL MINUTES - JUNE 27, 1995 (k) PRELIMINARY AND FINAL PLAT KNOWN AS FIRST ADDITION TO SOUTH LAKEWOOD ESTATES SUBMITTED BY BRUCE NAUSTDAL AND DIANE SORENSEN WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 10508) (l) VACATION OF EASEMENTS REQUESTED BY MIKE & GENELLE SCHALL WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (FIRST READING OF ORDINANCE AND SET SECOND READING FOR JULY 11, 1995) (m) CONDITIONAL USE PERMIT FOR CONSTRUCTION OF OFFICE BUILDING IN IIC DISTRICT REQUESTED BY DAVID BROLL WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 10509) (n) VARIANCE FOR BILLBOARD SIGN ON HWY. 7 EAST, SECTION 33, HUTCHINSON TOWNSHIP (ARTHUR SAAR PROPERTY) SUBMITTED BY CUNNINGHAM ADVERTISING WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (o) STREET NAME CHANGE IN KRSIEAN ACRES AND ON NORTH HIGH DRIVE WEST WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION OF CITY STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 105 10) (p) APPOINTMENT TO POLICE COMMISSION —JOHN DECKER The motion to approve the consent agenda, including items as recommended by Planning Commission, with the addition of 4 (p) to reappoint Mr. John Decker to the Police Commission and to defer 4(c) until an investigation has been completed, was made by Council Member Erickson, seconded by Council Member Mlinar and unanimously carried. ■1 .71MM111I17915 1 (a) PROPOSED AMENDMENTS TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND PROPOSED TAX INCREMENT 3 CITY COUNCIL MINUTES - JUNE 27, 1995 FINANCING PLAN FOR DISTRICT NO. 10, HUTCHINSON HOTEL Mayor Torgerson called the hearing to order at 6:00 p.m. Mr. Dick Lennes, Director of HCDC, explained Tax Increment Financing and the resulting tax capture. He commented on the variables of early payback and the pay - as- you -go process. Mr. Lennes then introduced Developer Dean Limoges, Construction Manager Dan Huebert, and Mr. Jim Mills, Sales and Marketing. Mr. Limoges commented on the project of renovating Hutch Hotel into offices. He commented the project agreements are signed and they are ready to proceed with sales. Mr.Mills commented on the marketing of the office spaces and the forms of advertising to the public. He explained the use of the building floor by floor. Mr. Huebert commented on the renovation of the building and the process to be used. Discussion followed on the time lines. Mr. Limoges stated that by early fall the building should be sold out, and construction should begin in late fall. A motion was made 6y Council Member Mlinar to close the hearing at 6:14 p.m., seconded by Council Member Peterson and unanimously carried. Mr. Mlinar made a motion to recommend approval of the Tax Increment Financing Plan for District No. 10 and to adopt Resolution No. 10506 and No, 10507. Seconded by Council Member Peterson the motion carried unanimously. (b) IMPROVEMENT PROJECT NO. 96-02, LETTING NO. 2 (ARCH STREET) Mayor Torgerson called the hearing to order at 6:15 p.m. Director of Engineering John Rodeberg explained the project location. Council Member Mlinar moved to close the hearing at 6:17 p.m., seconded by Council Member Peterson and unanimously carried Council Member Mlinar made a motion to approve project No. 96-02, Letting No. 2, and to adopt Resolution No. 10513 and No. 10514 approving the plans and specifications and advertising for bids on July 28, 1995. Seconded by Council Member Peterson the motion carried unanimously. 0 0 0 CITY COUNCIL MINUTES - JUNE 27, 1995 0 'W.Gja 10 twim =11 I EfIRRM : 9136111161 &IF.121 • • (a) PRESENTATION OF RESOLUTION OF APPRECIATION TO DORIS AND TOM DAGGETT Mayor Torgerson presented a plaque of Resolution of Appreciation to Doris and Tom Daggett for the donation of land in Industrial Park. (b) REPORT ON MID- MINNESOTA DEVELOPMENT COMMISSION BY EUGENE HIPPE Mr. Eugene Hippe, representing Mid - Minnesota Development, commented on the history of the commission and the development in the area He stated the Regional Development Act made provision for local representation of elected officials to be appointed to the commission. Mr. Hippe gave each Council Member a copy of the Technical Assistance document and reviewed its contents pertaining to Hutchinson and McLeod County. He stated that housing inspections for Hutchinson are now contracted to Mid- Minnesota Development. (c) PRESENTATION BY CONSULTANT BILL GRASAVAGE ON HRA SMALL CITIES GRANT APPLICATION Ms. Jean Ward, HRA Executive Director, introduced Mr. Bill Grasavage. Mr. Grasavage commented on the HRA Small Cities Grant Application and the neighborhood rehabilitation project on Adams Street. He commented on the response from the survey forms and the interest by the residents. � 10:09) 1111111091-741121103 R oil l.►!. I►!W, 1510 121 (a) CONSIDERATION OF ACCEPTING PETITION AND WAIVING HEARING, RECEIVING REPORT, APPROVING PLANS AND SPECIFICATIONS AND ADVERTISING FOR BIDS FOR LETTING NO. 1, PROJECT NO. 96 -01 (DEFERRED JUNE 12, 1995) 5 CITY COUNCIL MINUTES - JUNE 27, 1995 0 Director of Engineering John Rodeberg explained the project on Krsiean Acres and noted there would be some deferred assessments. Discussion followed on the original platting and the concept of "ghost platting ". John Rodeberg stated the residents were informed of the platting process. He stated there will be a second informational meeting with the residents in the area. Council Member Peterson made a motion to approve the report, plans and specifications and to advertise for bids, and to waive readings and adopt Resolutions No. 10496 through No. 10499. Seconded by Council Member Mlinar the motion carried unanimously. (b) CONSIDERATION OF APPROVING PLANS AND SPECIFICATIONS FOR SOUTH GRADE ROAD AND LYNN ROAD PROJECT John Rodeberg commented this was a federal aid project, and the city may only approve the plans and specifications as the federal agency allows. He stated the plans and specifications are at the State for review. Discussion followed on the safety issues at the intersection. Council Member Erickson made a motion to approve the plans and specifications, to advertise for bids and to adopt Resolution No. 10512. Seconded by Council Member Peterson the motion carried unanimously. (a) CONSIDERATION OF COMPREHENSIVE AND LIABILITY INSURANCE RENEWAL Mr. Dennis Potter, Insurance Planners and Mr. Mark Flaten, American Risk Services, explained the costs and decrease in the cost to renew the liability insurance. Mr. Flaten commented on the cost benefits of increasing the deductible to $25,000 from $5,000. He stated the $25,000 deductible would have a $125,000 cap as opposed to the $50,000 cap with a $5,000 deductible. City Attorney Anderson commented he has no concerns with going to a $25,000 deductible. Finance Director Ken Merrill stated raising the deductible makes sense and would suggest establishing a reserve fund with the saving. 6 0 9 CITY COUNCIL MINUTES - JUNE 27, 1995 Council Member Erickson made a motion to approve the renewal and increase the deductible to $25,000. Seconded by Council Member Mlinar the motion carried unanimously. (b) CONSIDERATION OF DEVELOPMENT AGREEMENT FOR SIMONSON LUMBER COMPANY City Attorney Anderson commented on the agreement and recommended the Council approve the $175,000 purchase of right -of -way to complete the Bluff Street bridge project. Council Member Erickson made a motion to recommend approval of the agreement contingent on review by staff and payment of $175,00 to Simonson Lumber for the acquisition of right -of -way. Seconded by Council Member Peterson the motion carried unanimously. (c) CONSIDERATION OF DEVELOPMENT AGREEMENT FOR HUTCH HOTEL . City Administrator Gary Plotz explained the agreement has not been received. Council Member Mlinar made a motion to defer this item to the July 11, 1995 meeting. Seconded by Council Member Erickson the motion carried unanimously. 1 ul : ►1 • (a) COMMUNICATIONS FROM COUNCIL MEMBER JOHN MLINAR Council Member Mlinar stated the City/school auction will be held Thursday, June 29th. (b) COMMUNICATIONS FROM COUNCIL MEMBER KAY PETERSON Council Member Peterson commented on the ribbon cutting ceremony at Prince of Peace Retirement Living open house. She stated there was an excellent attendance of approximately 1,000. (c) COMMUNICATIONS FROM CITY ADMINISTRATOR GARY PLOTZ City Administrator Gary Plotz commented on a request by Crow River Habitat for Humanity to waive the building permit fee. He stated the State surcharge of $46.82 7 CITY COUNCIL MINUTES - JUNE 27, 1995 would be required and recommended waiving the remainder of the fees. Council Member Erickson made a motion to waive the building permit fees except for the State surcharge of $46.82, seconded by Council Member Mlinar the motion carried unanimously. Mr. Plotz explained the directors now have the budget worksheets which are to be returned by July 26th. He also reported there is a new merit worksheet which is now in the review process. Mr. Plotz commented on the dust control concerns in Vest River Park along Les Kouba Parkway. Bob Thistle of Springsted will be present at the July 1 Ith meeting with an extensive report on the computer consortium study. There was a meeting with Utility representatives regarding the results of the survey. Gary Plotz commented on the oak wood that will be made into mulching chips and sold at the compost site on Saturday, July 15, 1995. (d) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING JOHN RODEBERG Director of Engineering Rodeberg updated the Council on construction status. (e) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON Mayor Torgerson commented on calls he has received regarding weeds in the city especially behind Champion Auto. . ice. ; • : r •. ..0 •.rr :: • ����. (a) VERIFIED CLAIMS The motion to approve the claims and to authorize payment form appropriate funds was made by Council Member Erickson, seconded by Council Member Peterson and carried unanimously. 0 0 CITY COUNCIL MINUTES - JUNE 27, 1995 I] 40 There being no further business, the meeting adjourned at 7:16 p.m. 0 MINUTES BID OPENING MONDAY, JUNE 12, 1995 Finance Director Kenneth B. Merrill called the bid opening to order at 3:30 P.M. Also present were President Steve Apfelbacher of Ehlers & Associates and Administrative Secretary Marilyn J. Swanson. The following bids were opened for a $4,185,000 General Obligation Improvement Bonds, Series 1995A: MUM y .: Dain Bosworth, Inc. $1,633,008.12 5.1750 FBS Investment 1,618,235.83 5.1280 William R. Hough 1,634,789.17 5.1835 Cronin Co. 1,642,056.92 5.2058 The following bids were opened for a $1,500,000 General Obligation Bonds, Series 199513: INTEREST BATH Cronin Co. $795,349.87 5.5023 Dain Bosworth, Inc. 796,817.13 5.5131 The bids were referred to the Bond Consultant for review and a recommendation at the June 12, 1995 City Council meeting. The bid opening adjourned at 3:35 P.M. 0 9 wilbl 03671116HO 1O. 0607- 0094:APPROVAL EAPI;eFS 2/23198 w„. C-404 U1. Dar18 Of con u -rsw aras.ua •rs Qana Pealed In 11,6 pwwlbl laabad i - lilaw narrecr rry rrora h nrrr rN addnee ireidHp ZIP Carol REPORT OF BUILDING OR ZONING PERMITS ISSUED AND LOCAL PUBLIC CONSTRUCTION 357400 27 s »99 085 T o 26 9999 02730 JAMES MARRA BLDG OFFICIAL. FOR CITY OF HUTCHINSON H Your &"V Perrruie SVa ha durr0ed, rnwk fXJ appropriate box bobw and aspiale bay' ❑ Dbcanti usd 4Wrq permits NUTCHINSON CTT. CTR 111 HASSAN ST 5 HUTCHINSON MM 55350 ❑ Mwgvd with another system ❑ Spot WO two or more systama ❑ Arnuad land ran PlF/uE THIS COMPLETE AND MAE. FORM ON OR BEFORE JULf 4. 199% C3 Had odr drrr0aa - H no psnnft wra issued during dao prlod. nrriW ern Ma box —. ❑ Buss of tie Crraaa 120+ EM 10th 8~ Instructions am included. For further assistance, call and nfun rho faun JeNewww AM,N {71]2-0001 1-B00- 845 -82{{. MEAN NEBIDENTIAL PRIVATELY OWNED PUBLICLY OWNED HOUSEKEEPING BUILDINGS Mp, Number of Houwp Ws Valuation of castructim CVnh ors Number of Valuation corutructron Omit orov 7.Housing flrr♦IuYu NI Ib) Ic) (d) L1 If) [g) Exduds uruob- hones, 101 6 6 841,871 I gran. ground ro roof waR -Nor above e -No uadbt above ew baldW, and ICS.eop - 'sys"Mrndumptynlae«s. +02 2 1 4 375 145 Tw frnbybddinpa 1OB Than - and fou -fwr*y 194 FN►ary fwriv brl*w 10B TOTAL - Bsmaf TOT -106 —► Me NEW RWDENITIAL PRIVATELY OINKED PUBLICLY OWNED NfHIHOUSEKEEPINS BUILDINGS hm 6A 601 Vallaton of construction Nnbrof ValWon of construction No. &ddnngs Rooms ornk crur BuYdnn� R°°'es omitores W W (c) Idl W (n Ipl Hntals, nrrDWe, and tauYt cabins Itrrralera accxn Wdedw Ord" 21 O&W aha4r 21 NEW NONNESIDENTIAL PRIVATILV OWaNmD PUBLUCLY BUNDIN" Ns. Number of Vairrfon of crrtrunlon Number of VdwOon of wnmction bddral link min bt Drat Darts W RI I4 Id) W Amnrrnrs, aodr, and rocs"drW WIN Clardra rd o0rr reftioux, H kxkmbW rd deciadl M SarMee atrluru aM nasal 98raw 329 and iradtrdonaf Ofaeaa, brlI acrd Rof e" PHbic worb wW UtWlw SdrocY rW ~ sdurl tbwl stonos OW eustorrner aanvluaa an I Odw norm odw der ADDITIONS, ALTECDNy`A AND No. PRIVATELY OWNED PUBLICLY OWNED Nuubar of Vakuticn at construeoon Number of Valuation of conatrucdon h&*W Linlf cant NAdW pa OOYe t'rrr W Ibl (cl (d) le) Raaldarrdal - CIUeNy addtbrr of and cow" In Mom 134. NO UWWWralaand noont-aaftespiq p Addidaft of ea daoaDbm c+rporls bched uc+v -r. rr�w.c -ar PL"W COW77NIA( ON AMR" am �► MI -2 Total Permits 63 Total Valuation $1,827,952 0 FAx ottw bwidp and .uucmrea INDIVIDUAL PERMITS AUTHORIZING CONSTRUCTION VALUED AT 4600,000 OR MORE Please provide the IoNO q hformatWn for each permit authorakV construction valued at 0500.000 or mua amend In sactloru 1 tlrrouph N. horn No. 0v - Nunbw of from peapriprypt HaX--- and &* Valuation of as builds, ,16rk 0Q � aAyVB ono - Ibl Kind of buKdYq Id W fff 1 1 �cfeacerw- -i:jt" ❑F N. - -- S aadaaaa -- 1L Naca 4 – — ❑Prime -- 0 -- -- 4 KLrd of MMrp — _--- _— __— ___ - -- ❑Pdvm Kind of building 4 ❑Prwar sf r.dbr — ❑PWe K nd of Wv 4 -- ❑nfvale fib .dda. - - --' -- ❑put6c KYat a Qmv 4 — — Kant or buadrq I:d Kind of h/dYq ❑14Mm -- farad's.. ❑ntla 4 -- ❑14Mb fflle.dlw - - - -- - - -- -- ❑.tear: 4 cdntrn.rtn w peambd" - . M1�IK% or7 ❑ No ❑ Yea — Plara (Yr+adaltlorW hhmrWOn h mmrto. Noma M p.rapn m oortract raprrdb+p tNs npmt Talapltmr Building Official Area mea fMeabar brWA% an 612 234 -4216 0 NUNUTES Parks, Recreation & Community Education Advisory Board June 1, 1995 Members present. were Robert Hantge, Mike Cannon, J.P. Auer, Mike Schall, Bruce Rosenow, Loretta Pishney, Rev. Brian Brosz and Peggy Westlund. The meeting was called to order at 5:15 p.m. The Minutes dated May 4, 1995 were approved by a motion made by Mike Schall, seconded by Loretta Pishney, motion carried 8 -0. OLD BUSINESS Civic Arena Update - The replacement of the refrigeration system is on schedule. The old equipment was sold to an organization in Clearwater, Florida. Arbor Da X - The event took place at the Mcleod County Fairgrounds. It was well attended by 1,100 participants. Many volunteers helped make the program a success. Bike Bonanza - There were 743 helmets ordered after the bike bonanza. Problems were experienced with the manufacturers ability to fill the order and 138 helmets were back ordered. The event was very successful. Facility Use Policy District #423 - It is currently being reviewed by the policy committee. Summer Pro r m - The Board reviewed the registration numbers for Community Education and Parks and Recreation Programs. In Community Education, classes are cancelled if registration fees can't cover instructor fees. In the Parks and Recreation baseball program numbers are down in the third to eighth grade level. Projects - Playground equipment has been installed in Roberts and Shady Ridge Parks. At Oddfellows Park, located behind Super America gas station, the cement has been poured and the sand filled in for playground equipment installation. A.F.S. Park will have a 6 1/2 foot statue installed of a former Foreign Exchange Student. Dedication of the statue in the park June 10. There are over 400 acres of park land to mow. Figure Skating Program - The city has been working with the Figure Skating Task Force. Together they have been working on budgets and advertised for an instructor in the Minneapolis Tri un and the Ice Skating Institute of America (I.S.I.A.) Newsletter. Some applications have been received, there will be a mutual list of questions for the interviews. ' C2/ MINUTES Parks, Recreation & Community Education Advisory Board June 1, 1995 Page two Figure Skating Program_ Cont. Other associations that are running programs are Tennis, Basketball, Hockey and Baseball. In the future, the precision line will be run by the Figure Skating Association, the city will facilitate the ice time for the association. July Meeting - At the next regular meeting, July 6, there will be tour of the park projects. Programming Minutes - The Board received and reviewed minutes from the Programming Committee. The ballfields are in high demand. &-,guests for use of Library Square and Fireman's Park - Robert Hantge made a motion to approve the requests as stated in the letters to the Board. Rev. Brian Brosz seconded the motion. The motion carried 8 -0. Adjournment - Bruce Rosenow made a motion to adjourn at 6:20 p.m. Loretta Pishney seconded the motion. Motion carried 8 -0. klm 0 L_J ORDINANCE NO. 95 -153, 2ND SERIES PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING SECTION 2.60 BY CHANGING CERTAIN LANGUAGE RELATING TO THE LENGTH OF TERMS OF BOARD MEMBERS AND ADOPTING, BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: Section 1. City Code, Sec. 2.60 is hereby amended as follows: SEC. 2.60 LIBRARY BOARD. A Library board composed of seven members, all of whom shall be residents of the City and shall serve staggered €iv t--- -year terms, is hereby established. Section 2. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall take effect upon its adoption and publication. 0 Adopted by the City Council this _ day of June, 1995. Attest: Gary D. Plotz City Administrator Published in the Hutchinson Leader: First reading: June 27, 1995 Second reading. 0 Mayor E PUBLICATION NO. 4846 ORDINANCE NO. 95 -154 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, VACATING UTILITY EASEMENTS LOCATED IN LARSON SUBDIVISION, AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to vacate the drainage and utility easements located along the southerly line of Lot 5 in Larson Subdivision. • Section 2. That the utility easements to be vacated are described as follows: The southerly 6 feet of the westerly 105.88 feet of Lot 5, Block 1, Larson Subdivision, according to the recorded plat thereof. Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 11th day of July, 1995. Marlin Torgerson Mayor ATTEST: Gary D. Plotz • City Administrator RESOLUTION NO. 10515 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR Blacktop Roadway - Cemetery (330 Ton) $7,342.5( Road Upgrade emeter Yes* Wm. Mueller S Sons *Dollars budgeted for r ad rep it and building dollars wilL i both le used. _The following items were authorized due to an emergency need: ITEM COST Date Approved: July 11, 1995 Motion made bv: Seconded by: PURPOSE DEPT. I BUDGET I VENDOR Resolution submitted for Council action bv: RESOLUTION No,10516 Resolved that the City of Hutchinson enter into Contract . (recipient organization) Number with the State of Minnesota, Department of Transportation. (FY 1996) to provide public transportation service in City of Hutchinson (service area) Further resolved that City of Hutchinson agrees to provide (recipient organization) 40% percent of the total operating cost from local funds and 20% of the total capital costs. Further resolved that authorization to execute the aforementioned Contract and any amendments thereto is hereby given to the Mayor or the City Administrator or the Finance Director (title) (title) Further resolved that the City Administrator or the Finance Director (title) (title) is hereby authorized to execute requests for reimbursement from the Minnesota Department of Transportation. CERTIFICATION I hereby certify that the foregoing resolution is a true and correct copy of the resolution presented to and adopted by Hutchinson City Council at a duly authorized meeting thereof held on the 11th day of July 19 95 as shown by the minutes of said meeting in my possession. 1] {name) City Administrator (title) I] E E TO: City Administrator Gary Plotz FROM: Lieutenant Ron Kirchoff DATE: July 5, 1995 RE: Application for Transient Untiedt Merchant Permit for Gary On or about June 20, 1995 Gary Untiedt made application for a transient merchant permit. The standard investigative techniques were utilized and revealed no past criminal activity which would prohibit Mr. Untiedt from obtaining a permit. In as much as this is a transient merchant permit to sell seasonal goods, Mr. Untiedt was not listed with the Minnesota Attorney General's Consumer Division. Utilizing Mr. Untiedt's home area, Wright County was asked to do a local background check. That background check revealed no criminal activity. Based on the investigative criteria followed, I would recommend Mr. Untiedt be granted the transient merchant permit. . s9S // -�7 0 0 Aaron C. Searl P.O. Box 388 Spring Park, MN City of Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 June 15, 1995 To: Marilyn (counsel secretary?) RECEIVED JUI! 1 91995 CITY OF HUTCHINSON 55384 Enclosed please find the completed application for peddlers, solicitors, and transient merchants. Jerry Untiedt is the farmer and owner of the business and his information is on the application. We would like to run two (2) sweetcorn stands this summer. One would be located at Super America on Hwy 7 (same as Ryan Bushman did last 3 year), and the second location would be in the Hutchinson Mall parking lot in front of Jo Ann Fabrics. We have gotten permission from both of these parties to operate in their lots. If you have any questions, please do not hesitate to call me at (612) 270 -5471 or Jerry at (612) 658 -4672. Thank you for your time and I will be looking forward to hearing from you soon! Thank You, Aaron C. Searl +` 'y',-''� r � •, .yea .• s i J' Molise If r s• I +` 'y',-''� r � •, .yea .• s i J' Molise r s• CM OF NM CHY CENTER 111 NASSAN STREET SE APPLICATION NUTCN04ON.MN SM25n FOR PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS 2" x 2" Picture required 0 How many days? 9 NAME and DRIVER'S LICENSE INFORMATION NAME: J ate. Icj 4. 0 -Yj eel k PERMANENT ADDRESS: g7501)5a �_; W11 Veda, 55,390 PERMANENT TELEPHONE:��Z �jy- 707oZ TEMPORARY LOCAL ADDRESS: TEMPORARY TELEPHONE ACCESS: DRIVER'S LICENSE NUMBER (STATE) M Al (f) JOEMN HEIGHT 6-0 WEIGHT -DEC EYE COLOR ,B/ve FEES S LENGTH OF PERMIT REQUESTED Months? Or year?� LICENSE FEES ARE AS FOLLOWS: Application Fee of $25 applied towards the following permit fee(s) Solicitors, per day ......... ............................... S 25.00 Solicitors, per year ........ ............................... $200.00 Transient Merchants, per day ............................... S 25.00 Transient Merchants, per year .............................. $200.00 Peddlers, per day ........... ............................... S 25.00 Peddlers, Per year .......... ............................... $200.00 BACKGROUND STATEMENT HAVE YOU BEEN CONVICTED OF ANY CRIME, MISDEMEANOR, OR VIOLATION OF ANY MUNICIPAL ORDINANCE, OTHER THAN TRAFFIC VIOLATIONS? YES NO '-� IF YES, STATE NATURE OF OFFENSE AND PUNISHMENT OR PENALTY ASSESSED THEREFORE: DESCRIBE NATURE OF BUSINESS AND DESCRIBE ITEM OFFERED: Z' CJ 41 c A 4 /e // //� i"f' Wr P v� Oct / -�-f m i �j.,� o'-f/ ti � -) l4 Q JL r4.4 X&fl . DESCRIBE METHOD QF DELIVERY V.u,e - DESCRIBE YOUR SOURCE OF SUPPLY - NAME & ADDRESS OF SUPPLIER: O({ /3f /y fS s'"' sa a ✓t/ /y /I'(„/. Ys-3-j PROVIDE TWO (2) MCLEOD COUNTY PROPERTY OWNERS FOR CHARACTER REFERENCES: // NAME S ADDRESS: C Mfr �% ✓.�c NAME d ADDRESS: 2, S4.-4. 0, PHONE NUMBER: W-5," %,V/ PHONE NUMBER: /t- 'L`IJ� 56 6 ogw, STATE LAST CITjYJ YOU CARRIED ON SAME ACTIVITY: / jyveN S 4,4 CITY /STATE NAME: (jaedf+��o. /LI✓. `Ltn lc�c 6,-- l8t- 7/y DATE OF ACTIVITY: FROM: TO: /0, / "iq E -2- it i • I hereby certify I have completely filled out the entire above applica- tion and that the application is true, correct, and accurate.' I fully understand that any person who violates any provision of the Peddlers, Solicitors, and Transient Merchant Ordinance No. 673 is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not ex- ceeding $500 or by imprisonment for a peripd not exceeding 90 days or both, plus, in either case, the costs of prosecution �ee(a. C ure of Aoo scan Da to • No application will be forwarded to the City Council unless received one week prior to the regular Council meeting completely filled out with required picture. OFFICE USE POLICE CHIEF RECOMMENDATION: -3- RELEASE OF I\FORP4TI0:: I* As an applicant for a Peddlers /Solicitors /Transient Merchants License from t ^e City of Hutchinson, Minnesota, I am required to furnish info ration which that a;er.c :• may use in deter-.ining my =oral, physical, yenta: and financial q%a:ifica- ticns. In this connection, I hereby expressly authorize release of any and all ic- fey -_anon which you may have concerning me, including ir`o ration of a co-i'i-J.-a: or privileged nature. I hereby release the agency with which I am seeking application for license, and any organization, company or person furnishing infor- -ation to that agency as e.,-.)ressly authorized above, from any liability for da=age which may result from furnishing the infor- ration requested. Applicant's Full // Printed `lame: �o�� � /��� �� <ICd< (First) (Piddle) (Last) Applicant's Address: `%7 -1'` ;�5�± Sj jw (Numb er) (Street) lft ✓ter /y �.% y� t iyr re`s s� (City) (County) (State b 2i;) Applicant's Birth Date: 3 Zip 4/,9 (Month) (Day) (Year) Applicant's Place of Birth: /tilP�s �A (Ci ) (State) Applicant's Social Security No.: Applicant's Driver's License No.: p� Date . L -Of - ya(��1 App' cant's Signature —�r' 0 • CITY OF HUTCHINSON APPLICATION FOR LICENSING (UNDER ORDINANCE NO. 92 -57) RECENED JUV 2 9 1995 CITY OF HUTCHINSON TYPE OF APPLICATION (PURSUANT TO SECTION 6.23, SUBSECTION 2) A Commercial Hauling .......... FEE $100 /Year X Residential Hauling ......... FEE $100 /Year _X Recycling ...................FEE $ 50 /Year APPLICANT'S NAME, ADDRESS, TELEPHONE NUMBER: P; Lela IN alial �� . NAME AND TITLE OF ALL OFFICERS OF APPLICANT'S FIRM: NUMBER OF YEARS APPLICANT HAS BEEN: IN COMMERCIAL HAULING ...................... Aa Years IN RESIDENTIAL HAULING ...................... RECYCLING ..... .............................. �0 Years LIST REFUSE EQUIPMENT /ofd^ OWNED OR LEASED (INCLUDE -f r Sow RECYCLING EQUIP T).ao-►� So �s tia 6 � 9'3 DESCRIPTION i(o! For& L MAKE /MODEL 9.S Y Pte$ a w ex CAPACITY 4# Ws' A,-CQ a K. �� 7(�ea�lo• -=W* 4, 91 A+ 80 R °I /off SArfL, 9yoa 9° $l Qello�rF znr +t 7Y0 u q/ LIST ADDITIONAL EQUIPMENT NEEDED TO PURCHASE OR LEASE TO MEET LICENSING REQUIREMENT FOR ADEQUATE TRANSIT VEHICLES (SECTION 6.23, SUBSECTION 4,E) ^(a 1" e- INSURANCE COVERAGES (SEE SECTION 6.23, SUBSECTION 4, D) NAME, ADDRESS, TELEPHONE NUMBER OF AGENT: FAMe ": e+— .27': tz /ems 7'.. NOTE: Attach insurance binder to application form that meets or exceeds limits established in the ordinance. MONTHLY SUBMISSION OF INFORMATION TO CITY ADMINISTRATOR (SEE SECTION 6.23, SUBSECTION 9) Are you aware of your responsibility to submit names and addresses of your business and commercial account no later than the 10th of each month to the City Administrator? )_ YES NO Are you willing to maintain a local telephone number and a daily 24 -hour answering service to handle service questions? YES NO I hereby certify that I have completely filled out the entire above application, together with the attached and executed Release of Information Form, and that the application is true, correct, and •a)q - 91T` Date 0 0 0 RELEASE OF INFORMATION FORM As an applicant for a license from the City of Hutchinson, Minnesota, I am required to furnish information which that agency may use in determining my moral, physical, mental, and financial qualifications. In this connection, I hereby expressly authorize release of any and all information which you may have concerning me, including information of a confidential or privileged nature. I hereby release the agency with which I am seeking application for license, and any organization, company or person furnishing information to that agency as expressly authorized above, from any liability for damage which may result from furnishing the information requested. 11 Applicant's Full Printed Name: 0 A R.A Applicant's Address: Applicant's Birth Date: (First) (Middle) ,Sao n/, 6 rbaG (Number) (Street) 0-,O-,t V e r 0-a.tVQA. (City) (County) is a 9 Applicant's Place Y r lip I S yr)/\f of Birth: (City) (State) Applicant's Social Security No.: Applicant's Driver's License No.: Date: 4 a;F.9S 0 Year) Applic 's Signature .S53 /S- D. 1 612 234 4240 JUL -05 -1955 16:11 FROM CITY OF HUTCHINSON TO 9-16I2e6412135 zbKUWjr_•rr_M Form No. 235-A.0c.troe br M.h W,ew -ON. &'- RETAIL "ON SALE" *trite of Ininneocita, COUXTY McLeod - - . ­1 ..... . . .... .... To the ... ... qi Y. 99mac.i-11 ......... 1. ...... R.01i01 C i Hutchins ..... on ................ . .. ..... . ........ ...... .Of tbe. .. . _ ................_...Of... Hutchinson . ................................... ........ .... .. ........... ....................................... I ........ I State of Minnesota: hereby ap'V4zli for a Ueeoee for the tarn, of ... . .............. . . ....... . .. ........... ...... ............... . .. .. .. ___ _-4tawy of--- --__ - -- ........ .. ..... ..... ........ . ...... At Rat-U Onkr, Non-Intoxicating Malt Liquors, as the same are defined by Saw, for ooneampdim "ON-' those cort"4n P".&Aese in the......_ _.._.........._._._............ ..._.... .I.........._..._....._..4..... .1 . . . . . . ­... . . . . . . . . . . . . . . doporibed as falZo . ta-wit at whic), place said app"cans opera".. the aoualrrese o1 -._. - __6? ... ................ ........... .... ... ­­-.1 . ....... . .......... ... ........ ... . ........ .. .. I ... ... I and 00 that end r@p?V*W7 . ...... -a a state_...ae fotlaws: 2-ha.6 said applicant............ a/)"# 47'" S Of 00d "ban" 0haractor, a" eputa; and ha. ... _aftatnod Ow age of 01 W�; shat,_ ... =91' e4tabl4h~nt for which MW lioeaue wU4 be tore," if 4hie applica4tiam " granted, That " manicfaetu of eu4ch malt jjquors has any awmarejap, im whole or in part, in said bg"tnase of said app&,aa" .. cr any intwroet $her"; That 'a" this appu.'am pw-'.Oa t and eubjoa #0 all "a lava of Ae state of Arirereemta and the ardzaoveose and res"40"ane of .......... — ------- - appl&eaUd thereto, Wh(17& are hereby NZado a Part hersof, and h#FVZW a0rW_-.t* observe and obey the same: .. .......................... Recommend approval with restrictions and requirements as in the past. Driver's License I.D. to be required for purchase. Steve Hadson. Police Chief Each applicant further states that ___he is not now the holder of, nor has __Ae made application for, nor does --he intend to make application for a Federal Retail healers Special tas stamp for the sale of gntoxicatinm liquor. JUL 7 1995 �4' P. O. ....... . ,oddrom ..... ... .... ..... W COPENHAGEN SKOAL PULLING CIRCUITSM Coca -Cola Classic NTPA Power Pull Nationals August 1 & 25 1995 McLeod County Fairgrounds Hutchinson, Minnesota Tickets - $9.00 Advance Tickets - $8.00 Sold at: Champion Auto, Hutchinson Area NAPA Stores Sponsored by Coca -Cola �re6 Trade -Mark CHEVY TRUCKS Kendall MOTOR OIL Tuesday. 7:00 a.m. Four Wheel Drive Trucks Two Wheel Drive Trucks Super Stock Tractors Modified Tractors Super Stock Four Wheel Drive Trucks (State) Modified Stock Tractors (State) Wednesday, 7:00 p.m. Four Wheel Drive Trucks Two Wheel Drive Trucks Super Stock Tractors Modified Tractors Modified Stock Tractors (State) Super Stock Four Wheel Drive Trucks (State) ­... ­11 ... .... .. UJ ..I, of the Government ancc ficers� Asso tio,i. Ok Minnesota PV N Consoftium Finds Benefits in Sharing By Part Norton When members of a community agree to pool some of their resources for the com- mon good, they likely will get back more than what they put in. A group of Mince- am cities and government agencies have been reaping the benefits of sharing for more than 20 years. Their consortium, named LOGIS (Local Government Infor- mation Systems Association), has provided them with data processing systems and services that have unique advantages only sharing can provide. Sharing and cooperation are central to the LOGIS consortium, composed of 24 Minnesota municipalities and government ate. By combining their resources, LOGIS members have been able to attain a level of data processing service that would be difficult or prohibitively expensive to acquire separately. Along the way, they discovered that sharing and cooperation a consortium had benefits beyond 1111rst cost savings— benefits that have their operations in many ways. Structure and ffistory of LOGIS Goes and agencies become members of LOGIS by signing a joint -powers agree- ment (Thus, in a legal sense, LOGE is a governmental unit.) LOGIS is controlled by a board of directors containing one representative from each member mum a- paliry /agency. The board approves the- broad aspects of LOGIS, such as its direction and annual budget. An executive committee, composed of five representatives elected by the members, oversees more detailed aspects, such as approval of expenditures, setting operating policies, and service charges. The executive director handles day - today management duties and works with the executive committee and board of directors to develop long -range Policies- The consortium is organized and controlled by nonelected officials tither than dry councils or mayors, which removes it somewhat from political pressures. Like any publicly funded organization, however, some political considerations still apply. • The funding for LOGIS comes from �FC?(Jl,TA 17 G�v STATE /PROVINCIAL HIGHLIGHTS monthly charges billed to its members. These charges cover almost every aspect of LOGIS services, including facilities, unlimited support, hardware and software enhancements, "bug fixes," hardware and software consulting, training and other project work. These charges are difficult to compare with other vendors because other vendors' "maintenance" charges typically consist of only enhancements and bug fixes. For example, if a legislative action requires a change in software, LOGIS provides that change at no additional charge. LOGIS was created in 1972 as a response to the needs of municipaliries at a time when cities were beginning to understand the advantages of data process- ing, but the cost of data processing hardware, software, and staff were too high for all but the largest cities. Seven municipalities reasoned char they could afford access to data processing by cooperating with one another and sharing costs. Thus, LOGIS was born. Operations began in 1973 with a remote communicarions link to computers in Santa Clara, California. The initial applications were financial, fixed assets, payroll, and LOGIS MEMBERS AND POPULATIONS ChylAgen y Poputsom Apple Valley x7,802 Brooldyn Center 28,004 Coon Rapids 59,945 Cottage Grove 24,769 crystal 23,426 Eagan 52,866 Eden Prairie 43,089 Edna 46,249 Farmington 8,000 Golden Valley 20 on oup LakeVWG 29,994 Maple Grove 42,281 Metropolitan Council WA Mkrbbnka 50,096 New Hope 21,452 Norli wart Cable Commission WA Oak Greve 5,765 Orono 7,323 Robb4odale 14,149 St Louis Park 42.755 &*imp" 12,142 Stab of Mirro9ote Baking Codes and SlwMetds WA While Bear Lake 25,153 Total Population 608,281 WA = not applicable utility billing. (These "core" applications continue to be the most heavdv used systems offered by LOGIS.) It soon was apparent that a local data processing provider was needed; so in 1974, LOGIS moved its operations to the Hennepin County Computer Center in Minneapolis. In 1978, operations were converted to minicomputers, which allowed LOGIS to provide additional applicatons, such as property data, special assessments, and vehicle management. In the early 1980s, LOGIS moved operations to its own facility in Brooklyn Center, Minnesota, a suburb in the northwest quadrant of the Twin Cities metro area. This move was necessary so LOGIS could serve its growing membership and increasing number of applications. From offering just four applications in 1973, LOGIS today has evolved to provide data processing solutions from a single support organiza- tion chat encompass a full range of data processing systems and services. Its current membership stands at 21 cities and three government agencies. Processing, Sofrware, and Support LOGIS members can choose either central site or distributed ('in- house') processing. With the central site option, processing is carried out on computers at the LOGIS offices. Members communicate with the central site computers via termi- nals or terminaltmularing personal computers (PCs) across high - speed, dedicated phone lines. Output is panted at the LOGIS offices and sent to members via courier. Recent advances in wide- and local- area - nerwork technology have made it possible for central site members to have "distributed" printers in their offices. These printers are able to receive and print reports and other output from the central site computers. )With the distributed processing option, both the processing and the printing of output are carried out at the members' offices on their own computers. The distributed site computer is capable of using all LOGIS applications, and LOGIS srill provides complete software support. The range of software applications that LOGIS now offers for its members includes financial controls (with integrated fixed assets), utility billing, payroll, human resources, police, geographic information, parks and recreation, fleet management, property data/assessments, permits and inspection, and additional specialty applications. Members choose which JU 1995 • GOVERNmE FwJ u REV 43 Exhibit 1 DATA PROCESSING (DP) COSTS: LOGIS VS. NON-LOGIS CITIES -LOGIS Gilles Large Nort Sma City A City B City C C City F Population 53 ,000 52AW 49,000 23,000 17AW 25,000 Daerlptlort/Cale9ory DP oosb -1994 actual &A*9Spam Annual allocated hardware costs Years for education Annual allocated software costs Years for allocation Total estimated annual costs Populatioll Descrollorucaftory DP Costs-1994 actal SuildYt01Pace Eagrtard suppree Estimated MIS personnel LOGIS special prolects (estaimeted) Conas+icatioro Total MkntMd annual oasts Average "U..tand cast tor. 5787,500 $364,400 $361,000 $84,000 :2801560 $74970 20,223 91319 4,745 2,847 3,796 10,629 54.728 75,386 52,857 30.000 14.000 22,6 5 5 7 5 5 5 84,631 10,600 85,714 26,000 7,000 26,009 5 5 7 5 5 5 $ 347, 082 $ 459, 687 $504.316 $142,817 $285,356 $134,484 LOGIS CHlea Large Cities- Small Cities City G City H City 1 City J City K City L 51,000 29,000 14,008 27AW 14,000 23,000 $204,000 $213,000 $226,000 $105,000 $109,000 $108,000 949 949 3,322 1,424 0 919 2,500 2,500 2,500 1,500 1,500 1,500 37,500 42,500 5.000 20,000 5,000 10.000 5,000 5,000 5,000 5,000 5,000 5,000 4,600 3280 1,900 4,840 1,900 4,120 $254,416 $ 287, 016 $243,377 s138,158 $121,M $129,190 Large non -LGGIS $ 437,028 Small non -LOGIS cities: $187AN Large LOGIS cities: $254,918 Smog LOGIS ddes: $129,7W ' Thew area does have ear tr1@z1 a)qowKftrm d LO018 d§W Sour Survey w wracipr ExpendRiiess bar Norman Prooselft Sysams one Services, an trweperbed wet w* . applications they want to use from the pod of available systems. They can use as many or as few of these applications as they wish, and they only pay for those applications they use. Resources are set aside so that, as applications 'age" (Le-, become obsolete), a replacement an be provided. This guarantees that applications are state of the art Integrated applications transfer appropriate data to one another automari- cally. For example, information from LOGIS' property data system an be accessed for use in its permit and inspec- tion management system. Report-writer software allows users to ante custom reports from the databases. This type of software also allows users to download data to PCs in a variety of spreadsheet and database fOflrlars. A LOGIS Help Desk provides complete telephone support for all applications - those it acquires from other vendors as well as its own applications. Since LOGIS is tended to be the data processing depart- ent for its members, users have unlim- 44 JOE 1995 • GOVERMM FINANCE RMEW ited access to telephone support and the expertise of the other LOGIS staff. Support also is provided for conversion and post - conversion issues. LOGIS customizes training for each of its applications. Each member is alkxted 15 hours of training per application per year however, this time an be "spent' in any way the member desires. A member an use more than 15 hours on one application and less on another. If members use up their allotment and want more training, they are charged a Flat hourly rare char is often less than half that charged by other training facilities. Periodic seminars and workshops about various aspects of applications also are provided. For those applications developed in- house, LOGIS writes and distributes its own user manuals. For applications acquired from outside vendors, the vendors' manuals are copied and distributed so that members have the latest versions. For central site users, LOGIS handles all aspects of data processing operations, including the running and printing of batch jobs, maintenance of communication links to the central computers, and so forth. For distributed site users, LOGIS advises and assists in the selection of hardware, preparation of the computer site, and training of the computer operator. LOGIS also provides ongoing user and technical support for the computer operation. Advantages of a Consortium The advantages of LOGIS' consortium approach grow "rurally out its general principles of sharing and cooperation. For example, members' data processing costs can be reduced by sharing development and technical expenses. By sharing LOGIS personnel, members can reduce or eliminate the need for maintaining their own data processing staff. This also reduces the costs associated with staff turnover (e.g., productivity loss, hiring, training). It should be noted that some members have hired a management information system (MIS) coordinator to address PC issues and act as a liaison with the LOGIS staff. te QRecently, the LOGIS executive commit - commissioned an independent study to compare actiral data processing costs between LOGIS member cities and other cities of similar size. This study, conducted by a leading public financial consulting firm, took into account data processing costs that may be "hidden" in a city's budget. For example, several employees of a city may be classified as being in the finance department although the majority of their duties are data - processing related. The results of the cost study, summarized in Exhibit 1, show conclusively the financial advantages of the consortium approach. LOGIS an be used as a "single - provider sdution' for its members. This is an advantage because of superior product integrarion. If a user confronts a problem with an application, hardware, or commu- nications, the problem will be taken care of within LOGIS. Users are not referred to other companies for a solution. Invettahaas in new hardware and software are part of the charging structure. Ovv the years, LOGIS has continually upgraded its computers, peripherals, and applications without its members paying additional or special fees. Thus, members an able to plan their budgets without for any surprises in data process - costs. Member data are extremely secure. All data are backed up every night, and a copy is stored off -site. If a disaster occurs at a member's facility, all data are restored within 24 hours, and offices with terminals are provided to continue the processing of critical applications. Most organizations cannot afford to maintain a backup site or pay the monthly lease costs for disaster recovery services. LOGIS offers this service at no extra cost- As a consortium, LOGIS provides a unique capability to its members: the flarible sharing of data. LOGIS has in place a sophisticated web of wide area networks (WANs) and local area networks (LANs) that allow members to share certain data with fellow members while keeping other data private. For example, users of the police system can share data about a cdminal's past offenses, aliases, and as3cidates. Since criminals rarely confine their activities to our community in a large metro area, this feature can be of enormous benefit when conducting investigations. The WAN also makes it possible for a member's LAN or distributed site computer to be managed from the central offices. Wrib"crments and upgrades an be performed in a timely manner without intervenrion from member staff. Full data securiry can be maintained. LOGIS also acts as a forum for sharing the ideas and experiences of its members. For example, a finance officers group meets regularly to discuss issues related to both LOGIS and other topics, such as brain- storming abour how to handle new state tax laws or accounting procedures. All members benefit from shared technological expertise. For example, LOGIS has extensively investigated handheld meter - reading devices and shares this expertise with its members. The consortium can facilitate the bidding and implementation of these devices, saving each member many hours of research and investigation. Through user groups, members have a direct say in which enhancements will be made to an existing application and which features a new application will have, nuking the -, groups more influential than similar national user groups for applications from other vendors. The LOGIS Financial Application An interesting case study demonstrating the advantages of a consortium approach is the acquisition of LOGIS' current financial controls application. In early 1991, it became dear that the financial controls application dien in use was at the end of its productive life. A new system was needed to keep pace with advances in hardware and software. Although a consortium may seem to be at a disadvantage in that it must please all its members, the process went smoothly for LOGIS. A selection commiaee was formed consisting of members, staff, and a consultant. Users had a great deal of input in choosing the system, and the mix of members helped ensure that the committee examined as many aspects of the candidate systems as possible. The buying power of the consortium has made it possible to provide a stateof -tbe- art system to its members at a fraction of the normal cost. The relative low -cost through LOGIS enables a small city to use a system that would be extremely difficult for it to afford on its own For example, LOGIS purchased a license for the stew, system at a per- member cost of approxi- mately 511,000, with maintenance fees of approximately $1,500 per year. Without LOGIS, a city typically would pay more than 590,000 for license fees and $11,000 for maintenance fees. Small cities may not have huge budgets, but through the use of a topof-rhe -line computer system they can have complex accounting strucrures. Challenges in the Furure While there are many strengths that flow from the consortium concept, there are also a few challenges which tend to stem from LOGIS' advantages. For example, reaching consensus among members on an impor- tant issue sometimes can be a long process. Thus, it an be difficult to react quickly to changes in the industry. One of LOGIS' weapons against this problem is the long - range planning committee. This commit- tee —which consists of member representa- rives, staff, and (at times) consultants — examines the current situation and future opportunities, determines goals to strive for and develops plans to achieve thou goals. LOGIS must compete with private vendors for market share and retention of customer base- To compete effectively, LOGIS researches continuously to improve its software products and data processing smites. Recently, it has increasingly been moving towards client/server technology: its two most recently acquired systeros- parks and recreation and fleet manage- ment—am client/server based. Client/server technology an run programs and process information on a number of computers regardless of where the programs or data are located. It is easily salable based on user needs and is less dependent on proprietary computer hardware. Perhaps the most notable achievements of LOGIS are its longevity and success. There have been few groups in the nation that an match the LOGIS record of successful cooperation between widely different cities and agencies over such a long period. Much of the credit must go to LOGIS members, who understand at a basic level that they are essentially share- holders in their consortium. The success of LOGIS is their success. 0 li x Nonon a a tac &meal with /or LOGIS. Jane 1995 • Govttwiutarr Fwu a R-Eww 45 0 0 n U Report on the Survey on Municipal Expenditures for Information Processing Systems and Services Phase I: Non -LOGIS Cities Prepared for Local Government Information Systems Association (LOGIS) December 7, 1994 to '4, 0 Table of Contents A. EXECUTIVE SUMMARY . ............................... 1 ........................ B. SCOPE OF SERVICES ........ ............................... C. REPORT OF FINDINGS General Information ..................................... ............................... 1 -3 Current System Costs ..... ............................... ............ 3 Current Annual Operational Costs ................ ............................... 3-4 Miscellaneous Costs .................................... ............................... 45 FutureCosts ................................................ ............................... 5 Conclusion....................................... ............................... ............ 5-6 • D. COMPILATION OF SURVEY RESULTS .......... ............................... 1 -5 0 E. SURVEY RESPONSES .................................... ............................... 1-6 SPRINGSTE Executive Summary Section A • The Local Government Information Systems Association (LOGIS) has engaged Springsted Incorporated to conduct a survey of cities in Minnesota in order to determine the level of computer applications utilization by cities which are not currently using the services provided by LOGIS. C1 The survey results in a number of preliminary observations, outlined as follows: The survey shows a trend to increasing hardware and software usage. This trend has been noted in private industry. The survey shows that larger cities have used computer applications for a longer period than smaller cities, and have upgraded their hardware more times. The survey shows that all cities, large and small, have a significant utilization of computer applications. None of the survey participants anticipate a decline in the amount of money spent for hardware and software in the near future. The survey shows that size is not a factor in predicting computer utilization. Small cities which have significant operating divisions make extensive use of computer applications. The survey shows that, in general, larger cities have greater expenditures for data processing, both in absolute dollar amounts and as a percentage of their budgets. The survey separated mainframe data processing tasks from PC processing tasks, such as word processing, spreadsheet analysis and related tasks. The mainframe data processing tasks performed by each city surveyed are detailed in Section E. % SPRINGSTED Page A -1 Scope of Services Section B • Springsted, working in conjunction with LOGIS personnel, developed a questionnaire which inquired about the computer applications utilization of the entity answering the questionnaire. The questionnaire was sent to six (6) cities, each selected to represent a reasonable cross - section of cities in Minnesota. The cities selected for participation in the survey were not selected using strict scientific criteria to insure that the participants were statistically representative of cities who currently do not utilize LOGIS services. The cities were sent a copy of the questionnaire and a site visit was made by a Springsted representative to complete the questionnaire. Prior to conducting the survey of the participant cities, Springsted went through the survey questions with a city which uses LOGIS services. The goal of this "trial run" was to make sure that the questions included in the survey were designed to collect the information necessary for LOGIS to use in its analysis of the data. The cities included in this survey are identified by a number only. The actual identity of each participant city has not been disdosed to • anyone at LOGIS. This is done to insure confidentiality of the results and insure complete cooperation from the participating Mies. D The following discussion examines the several responses by the six cities to the survey questions, and is organized according to the categories contained in the questionnaire: (1) general questions, (2) a summary of the current costs of the systems, (3) current annual operational costs, (4) miscellaneous current costs, and (5) future costs. The responses from the survey sheets, as they are shown on the table, are organized by the three larger cities and the three smaller cities. Each city has one identifier using Roman numerals. Footnotes and the separately attached pages showing the responses to question 13, the applications used on each city's current system, are coded by those city names. % SPRINGSTED Page B-1 of Section C • General Information 1. During the last three years (1992 to 1994) the expenditures for data processing purposes have increased for three of the cities, have stayed about the same for two cities and have decreased for one. The decrease has come about because of a reduction in the payments for hardware; without that change, all of the larger cities supported increases as did one of the smaller cities. 2. The three cities that indicated an increase in total costs stated that approximately half of the increase was due to hardware costs. Software increases were a lesser part of the total change. City III had a 30 percent increase in personnel costs. City I stated that it had a personnel cost increase equivalent to inflation. (For purposes of this discussion, we are assuming that personnel costs include expenditures for fringe benefits.) 3. As stated previously, the single city that showed a decrease in expenditures during the three years had a reduction in payments for hardware. 4. One of the two cities that showed the costs of data processing to be approximately the same over three years said that there had been no shift in the costs. The other city said that it was able to reduce its personnel over the past five years in various departments outside of the data processing function by 2.25 full -time equivalents by upgrading its hardware and software. 5. Including all data processing costs, four of the cities are planning to spend from a quarter of a million dollars to more than a half - million dollars for data processing during 1995. The other cities will approximate $100,000 each. The data for this question is limited to mainframe or LOGIS -like applications. 6. Four of the cities have 1994 budgets of $25 million to $34 million. The other two plan to spend approximately $12 million and $14 million, respectively. It should be noted that one of the smaller cities has a substantial utility operation; based on the amounts shown here, it is twice as large as any 0- of the three larger cities. (There is some duplicating of % SPRINGSTED Page C -1 LOGIS expenditures in these numbers because internal service funds • of the smaller cities are allocated to the other funds of those cities, and the central equipment fund of City III is partially reallocated. Also, the amounts budgeted in the general funds of these cities varied substantially, but the scope of this study did not get into the types or volumes of the municipal services provided, nor do the differences in the amount of planned expenditures necessarily have any relationship to the data processing costs.) 7. The 1994 data processing budgets dedicated to mainframe costs appear to establish a pattern. The three larger cities each have significant data processing expenditures. Two of the smaller cities have expenditures about one -third the size of the other, but that can be explained by the large role that utility billing plays in the third city's operation. The data for this question is limited to mainframe or LOGIS -like applications. 8. The length of time that the six cities have had independent computing facilities appears to congregate around two time periods: 10 years and 20 years. Note that the smaller city with the exceptional utility system has had computers for the longest period of time. 9. Two of the cities have used the current hardware for seven and 10 years, respectively. The others have upgraded more recently. 10. One city has used its current software for seven years and one for five. The others are three years or less. The city with the oldest software also has had its hardware for seven years. Software has been upgraded from zero to four times, although the city with no upgrades states that it has ongoing maintenance on its software. 11. The larger cities and the smaller city with the large utility system have data processing coordinators or supervisors. The other two cities have no person who has chargeable time to the total system, but each of these two cities has an employee committee which makes recommendations to the % SPRINGSTED Page C -2 LOGES city administration. (In the responses to this question, we • have attempted to include only the mainframe costs.) The four cities with the larger computer systems have various computer staff members as detailed in the table. The two smaller cities (IV and VI) receive their hardware and software support from vendors_ 12. The full -time equivalent personnel involved in the data processing function ranges from none in the two smaller cities to four in one of the larger cities. Current System Costs 13. The PC's used as local area network devices vary from three to eight for the larger cities and are virtually nonexistent in the smaller cities. PC's are used independently in five of the cities. (See Section E.) 14. The system hardware costs approximate a half- million dollars or more for the larger cities and between $100,000 and • $150,000 for the smaller cities. City V has a MacDonald- Douglas computer that is used by its police and fire departments for dispatching; it is of unknown vintage and cost regarding both hardware and software. 15. System software costs vary for all of the cities. Current Annual Operational Costs 16. The annual maintenance costs on all of the computer hardware used in city applications varied from $25,000 to $75,000 for those four cities which are most involved in computer operations. The two smaller cities with smaller operations approximated $10,000. 17. The annual maintenance costs on operating system hardware ranged from $4,000 to $75,000 for the larger cities and from $0 to $5,000 for the smaller cities. The city with no maintenance costs is the one with the newest hardware. % SPRINGSTED Page C -3 LOGIS 18. The annual maintenance casts on application software ranged • from $0 to $10,000 for the larger cities, and from $10,000 to $16,000 for the smaller cities. Cities IV and VI may reflect the difference in cost when it is necessary to employ vendors for maintenance compared to having the capacity on staff. 19. One larger and one smaller city hired outside vendors for support for applications and hardware. Both were on a contractual basis rather than an hourly charge. 20. The larger cities planned to spend from $10,000 to $23,000 for data processing consulting services costs. The smaller cities planned none at all. 21. The diversity of the annual cost of supplies probably reflected the development of the several systems. They ranged from $8,500 to $42,000 for the cities with larger computer systems. The two smaller cities averaged $3,000. 22. Two of the larger cities and one smaller city plan capital expenditures for data processing in excess of $120,000. The • other three cities are under $80,000 each. Miscellaneous Costs 23., 24., 25., 26. and 27. The questions in this section were added to the questionnaire in case these costs were not included in response to the request for data processing costs in question #7. The three larger cities and City V did have the costs for questions #23 to #27 included in that earlier question. One of the smaller cities budgeted $4,000 for professional training (to be provided by vendors) for all staff for data processing and the other had $2,000. City IV had none of the remainder of those costs budgeted. The larger cities budgeted from a half -day per month to two days per month (full -time equivalents) for metropolitan -area user group meetings. City V budgeted five days per year and the other two cities had none. % SPRINGSTED Page C -4 LOGIS 28. The matter of determining the cost of the space allocated to • the data processing function easily could have become bogged down in defining the factors that went into making up the cost rate (cost of the building, heat, light, janitor service, etc.). It was concluded that the survey would use the square foot rate that the Local Government Information Systems Association is paying for its facilities. Therefore, the amount of space used by each city for data processing operations became the variable. The larger cities ranged from $20,000 to $4,700. Two of the smaller cities were under $4,000. City VI has the newest city hall and that may reflect the amount of space provided. 29. Apparently only City III provides off -site storage. 30. Four of the six cities maintain records of communications costs for equipment and telephone lines to off -site facilities. Two larger cities spend $5,500 and $4,000; two smaller cities spend $400 and $500. is Future Costs 31. and 32. Four of the cities are planning new or replacement systems in 1995 or later years. Those expenditures will be for hardware, software and consulting and will total $967,000. Major subsystems will cost $110,650, a total approximating $1,100,000. Conclusion Each reader of the accompany data will draw conclusions that are different from those of anyone else; there does not appear to be any package of information that "snaps out." Nevertheless, there are some statements that can be made that may draw a focus to certain parts of the study. The information from the six cities that were surveyed for the purposes of this study was arranged so that the data from the three larger cities was separated from that of the three smaller cities. The data did not lead to that precise distinction. One of the smaller % SPRINGSTED Page C -5 LOGIS cities has a utility system so large that, more often than not, it • moved the data from that city into a closer relationship with the three larger cities than with its smaller compatriots. This is especially noticeable when comparing the size of budgets, length of time that the cities have had computer facilities, the size of computer staff and the cost of current operations. Other information was more unique to each city. • J To some extent, four of the six cities are expecting an increase in costs from 1994 to 1995; a fifth city improved the data processing services that it provided by upgrading its hardware and software and decreasing the amount of city staff, in departments other than data processing, that are dedicated to data processing. Five of the six cities are planning to spend a substantial amount of money to upgrade their systems within this decade. The sixth city has just completed such an upgrade. PRINGSTED Page C -6 m d Q3 m 0 SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES Survey Questions �jq�1 L&Wt as Smaller Cities (� Cilv lIIIII CIN IV CiN V Ciry VI General: O 1. 1992 -1994 Total expenditures have:fel Decreased Increased Increased About the same About the same Increased .0 2. Expenditures increased because of: N/A N/A N/A w Personnel 5% 30% 5% Hardware 50% 50% 45% o Software 30% 20% 45% Additional Tasks 10% O Other --&% Total 100% 100% 100% p 3. Expenditures decreased because of: N/A N/A N/A N/A N/A Hardware 100% 4. If expenditures remained the same, has there been a shift? NIA N/A N/A No shift N/A Personnel 2.25 fewer FTE's C Hardware Upgraded Software Upgraded 5. Budgeted Data Processinngg Expenditures for 1995:fe1 $201,100 $472,000 $371,800 $82,000 $260,560 $107,000 6. Total 1994 City Budget: General Fund $20,920,300 $16,834,546 $13,012,500 $ 4,750,000 $ 6,171,300 $ 7,005,000 Utility Funds 4,770,000 6,508,505 2,736,700 Enterprise Funds 3,478,800 1,954,343 7,639,900 3,800,000 18,455,700 2,396,000 Internal Service Funds /b/ 657,000 1,270,000 1,838,600 Special Revenue Funds 4,507,400 2,411,000 276,500 Recreation Fund 708,400 HRA 1,824,907 Central Equipment Fund /°/ 1,410,900 Other Funds 318.717 690.900 240.500 Total 1994 City Budget $33,676,500 $25,616,111 $24,596,607 $11,618,000 $26.864,400 $14,216,800 7. Total 1994 Data Processing Budget:(u) General Fund $172,500 $239,500 $213,600 $82,000 $ 65,120 $74,830 Utility Funds 12,300 92,600 43,440 140 Enterprse Funds 2,700 27,800 43,440 All Other Funds 4.500 147.400 2.000 106 560 Total 1994 Data Processing Expenditures $187,500 $364,400 $361,000 $84,000 $260,560 $74,970 8. Number of years operating an independent facility 22 12 18 10 25 10 0 9. Number of years using O current hardware 2 3 7 10 1.5 3 d Number of gen @rations of hardwarefel 5 3 4 2 2 2 SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES Survey Questions QW Lar V les Cl" I CIN IV Smaller Cities C ty VI Cn General (continued): 10. Number of years using current software 2 3 7 5 1.5 3 Z Number of software upgrades(0 1 3 0 4 2 2 11. Computer personnel. —1 Overall Data Processing Finance Dir. w/ MIS IMS Assistant to DP Manager No overall rn Direction(g) DP Supervisor Coordinator Coordinator City Manager DP Manager Hardware Support Two Prgmrs. Computer Fin. Dir. Contract DP Manager IBM and -1%, Specialist -10% -36%, Wybrile DP Supervisor -45% Two Prgmr./ Computer -10% Analysts Operator - 20% each -20% Software Support Two Pr mrs. - 30 %, Computer Fin. Dir. Contract DP Manager Vendor DP Supervisor Specialist -10%. -35%, update -10% -`10% Two Prgmr./ Computer yearly, Analysts Operator HTE Inc. - 80% each -80% 12. FTE - Mainframe 0.82 0.55 220 None 1.70 N/A FTE - Data Processing 4 2 3.45 None 2.50 None Current System Costs: 13. Applications used on city's current system Attached Attached Attached Attached Attached Attached 14. System hardware costs(h ): Computer Systems Purchased $190,714 $376,838 $ 57,000 Workstations 36,589 Included above Terminals and Cabling PC's, Disk Drives and Tape Drives 15,075 81,749 WA N/A 10,000 60,000 N/A Computer Room/Area Construction Costs 31,260 N/A Initial Supplies 3,000 Other Costs Total system hardware costs $273,638 $458,587 $700,000 $150,000 $130,000 $114,281 15. System software costs(h): Payroll $ 4,000 Financial Control 6,000 $119,100 Utility 10,000 Operating ystem $ 74,330 7,100 Report Writers N/A N/A N/A 4,000 Database Managers Included above rQ ramng Languages/Toots Pr mi 3,900 Utility Software 0 Other 348.825 10.945 Total system software costs $423,155 $53,000 $600,000 $130,000 $35,000 $130,045 r O O SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES S Smaller Cities U) Survey Questions C1I>LI CiM III City IV CA" City VI Current Annual Operational Costs: 29 16. Annual maintenance costs on hardware $55,228 $ 28,600 $ 75,000 $ 10,500 $25,000 $ 9,383 Z 17. Annual maintenance costs on operating system software $ 4,195 $ 2,000 $ 75,000 $ 5,400 $ 0 $ 3,000 m 18. Annual maintenance costs on In -house 0 application software Cost N/A $ 24,050 $ 10,000 $ 10,000 $16,000 $14,800 19. Annual outside costs for applications /hardware $ 0 $ 2,000 $ 0 $ 27,000 $ 0 $ 0 Annual contract OR hourly charge N/A Contract N/A Contract N/A N/A 20. Planned data processing consulting services for the year $10,000 $ 15,000 $ 23,000 $ 0 $ 0 $ 0 21. Annual cost of supplies $10,100 $ 8,500 $ 42,000 $ 3,350 $17,500 $ 2,650 22. Budgeted capital additions for computer and applications: Additional Disks $ 4,000 PC's/Terminals $79,900 38,000 N/A $30,000 Additional Software Modules 14,000 N/A 31,500 Bar Coding Equipment 4,000 Specialized Systems 42,000 Other Total Budgeted capital additions for computer and applications $79,900 $100,000 $121,000 $0 $61,500 $0 Are the amounts shown in questions 16 to 22 included in the total shown In question 77 Yes Yes Yes Yes Miscellaneous Costs: 23. Annual fringe benefits costs Included in #7 Included in #7 Included in #7 $ 0 Included in #7 Included in #7 24. Annual budget for professional training for all city staftyO Included in 07 Included In #7 Included in #7 $4,000 Included in #7 $2,000 25. Travel costs if not included in 024 Included in #7 Included In #7 Included in #7 $ 0 Included in #7 Included in #24 26. Metropolitan area user group meetings: Time Commitment Cost 6 days r. 12 daysryr. 24 days r. None 5 days/yr. None Incl uded in 7 Included in 7 Included In 7 $ 0 Included in #7 $ 0 27. Cost of aftending national or regional user group meetings Included in #7 Included in #7 Included in #7 $ 0 Included in #7 $ 0 v w r O O T m 0 r— O O 0 0 0 SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES Lar ties Smal U) Survey Questions ) CiN III City IV "ties City VI U 28. Total area utilized by the data processing ;0 operation: Z Computer Room 595 sq. ft. 650 s% ft. 200 sq. ft. 300 sq. ft. 400 total 1,120 sq. ft. O Data Processing Office, ) Storage, Etc. 1,536 sq. ft. 432 sq. ft. 300 sq. ft. 0 sq, ft, sq. ft. 0 sq. ft. M Cost Based on the Square Footage Shown $20,223 $9,319 $1,745 $2,847 $3,796 $10,629 29. Annual rental costs for oft -site storage, backup materials, etc. $ 0 $ 0 $ 500 $ 0 $ 0 $ 0 30. Annual communications costs to vendors, State agencies, etc. Not significant $5,500 $4,000 $ 0 $ 400 $ 500 Future Costs (Major Computer Upgrades): 31. Antldpaled budget for new, or replacement, computing systems:(k) All PC 75% PC MF $300,000 Hardware-Cost(k) $36,750 $55,000 PC $100,000 $40,000 $0 $ 0 Hardware -Year 1995 1994 1995 1996 Software-Cost(k) $11,250 $86,000 $200,000 $35,000 $0 $ 0 Software -Year 1995 1995 1995 1997 Hardware/Software-Cost(k) $30,000 Consulting -Cost $10,000 $13,000 $ 50,000 $ 0 $0 $ 0 Consuttng -Year 1995 1995 1995 32. Major subsystems replacement If entire Ali PC 75% PC system is not replaced: Hardware- Costfrl $ 0 $12,000 $ 0 $ 0 $0 $34,050 Hardware -Year 1995 Software(l) $ 0 $ 0 $ 0 $ 0 $0 $ 5,100 Consulting(l) $ 0 $0 $13,600 T m 0 r— O O OA Z G) M 0 SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES (a) 1.) Excluding the decrease in the cost of hardware, there was a slight increase in the total costs, probably equivalent to inflation. (b) IV., V., VI.) The expenditures of the Internal Service Fund are reallocated to the other funds. (c) Ill.) The expenditures of the Central Equipment Fund are partially allocated to other funds. (n0 Based on a share of total computer costs allocated to mainframes. (a) IV.) Two generations of DEC hardware, but only one generation on this software. (0 ill.) There have been no formal upgrades, but there is ongoing maintenance. (9) IV.) No dedicated staff. Finance and other staff members process their own work through the computer system. Users group (all depadments) influence the decisions. VI.) Committee of employees provides recommendations to city administrator (h) V) In addition, there is a MacDonald- Douglas computer used for police and Are dispatching whose cost is unknown. VI.) Includes a finance system and a GIS system. N IV.) AM training is provided by the vendor on -site during upgrade or via long-distance telephone. 0) IV.) Permit software .$35,000; Hardware !39,000 (In PC's and PC network); Park software $79,000. PC's, software and calding $27,000 (1995). Vl.) Allocation not made at present. (k) IV.) Mainly PC's and PC network additions. Hardware and software additions of $35,000 (199 7) and $30, 000 (undesignated year) are expected. (I) VI.) Costs to establish a local area network. r m O 0 0 in W U • Section E 13. Please check ALL applications in use on your current system Legend: T to Mn = Terminal to Mini /Mainframe PC to Mn = PC to Mini /Mainframe PC to LAN = PC as Local Area Network PC1..PC6 = PC Only is used, No Mini /Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) City I 00MMI-111 Additional Hardware Needed for PC Only (i.e., printer, modem, etc.) Business License Police • Comp. ee�i ■ ■ ■ ■ ■■ i-roperty ee■■■■■■■ SPRINGSTED Page E -1 • • u LOGES 13. Please check ALL applications in use on your current system Legend: T to Mn = Terminal to Mini /Mainframe PC to Mn = PC to Mini /Mainframe PC to LAN = PC as Local Area Network PC1..PC6 = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) City II Application Payroll T to Mn X PC to Mn X PC to LAN P C 1 P C 2 P C 3 P C 4 P C 5 P C 6 Additional Hardware Needed for PC Only (i.e., printer, modem. etc.) Printer, Modem Personnel X X Printer Utility Billing X X Printer Permits/inspection X X X Printer General Ledger X X Accounts Receivable X X Accounts Payable X X Budgeting X X Cost Accounting X X Purchase Orders X X Printer Financial Other X X Business License Electronic Mail Liquor Invento Vehicle Ni mt. X X Printer Police Comp. Aid Disp. X X X X Police Records X X X Printer. Modems Fire Records X X X X Modems Property Data/ Assessment X X X X Special Assess. X X X X Deputy Registrar Fixed Asset M mt X Street/Alley Inv, X Geo. Info. Sys- X X Plotter, Printer Homestead Proc. Citizen Complaints X Clerks Index X Park/Recreational Facility M mt. Park/Recreation Schedulin X X Printers Dog Licensing Investment M mt. X X Ireeinventory Other. Other Other: Other SPRINGSTED Page E -2 • • • LOGIS 13. Please check ALL applications in use on your current system Legend: T to Mn = Terminal to Mini/Mainframe PC to Mn = PC to Mini /Mainframe PC to LAN = PC as Local Area Network PC1. -PC6 = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) City III SPRINGSTED Page E -3 Additional Hardware Needed for PC Only (i.e., printer, modern, etc.) Purchase Orders Financial (Other) -License Business Property Data/ Assessment ee ■■■■■■■ Facility Mgmt SPRINGSTED Page E -3 i I- I L • 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 LOGIS City IV = Terminal to Mini/Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) m ®® .Additional .... Needed for . In Process of Pu asin, F �1 • -ft 1 • SW acility mqmt. In Process of Purchasing In Process of Purchas- Tree inventory %SPRINGS -ED Page E -4 LOUIS 13. Please check ALL applications in use on your current system City V • Legend: T to Mn = Terminal to MindMainframe PC to Mn = PC to Mini /Mainframe PC to LAN = PC as Local Area Network PC1..PC6 = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) L� • .. _ . ...:. : Hardware _:de . _®EM imerm General Ledger _ . .. e■■■■■■■■ ssment "SPRINGSTED Page E -5 E • • 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC 1.. PC6 LOGIS City VI = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) ;1 SPRINGSTED Page E -6 Additional Hardware Needed for PC Only (i.e., printer, modem, etc.) PermWnspectio Accounts Accoun Police Comp. Aid • r Assessment MEN������ MMMMMMM ei- ;1 SPRINGSTED Page E -6 0 0 0 Report on the Survey on Municipal Expenditures for Information Processing Systems and Services Phase II - LOGIS Cities Prepared for Local Government Information Systems Association (LOGIS) February 1, 1995 �- Table of Contents A. EXECUTIVE SUMMARY ...... ............................... . B. SCOPE OF SERVICES ..................................... ............................... 1 C. REPORT OF FINDINGS General Information ..................................... ............................... 1 -3 Current System Costs .................................. ............................... 3 Current Annual Operational Costs .............. Miscellaneous Costs .................... FutureCosts ................................................ ............................... 5 Conclusion............................... ............................... • D. COMPILATION OF SURVEY RESULTS .......... ............................... 1-4 L� E. SURVEY RESPONSES ............................ ...... ........... 1-6 ...................... SPRINGSTED Executive Summary Section A The Local Government Information Systems Association ( LOGIS) • has previously engaged Springsted Incorporated to conduct a survey of cities in Minnesota in order to determine the level of computer applications utilization by cities which are not currently using the services provided by LOGIS. Subsequent to that engagement, LOGIS engaged Springsted to conduct a survey of cities in Minnesota who are utilizing the services of LOGIS. This survey was conducted in order to provide a frame of reference to the survey of cities who are not currently using the services provided by LOGIS. The survey results in a number of preliminary observations, outlined as follows: The survey shows a trend to increasing hardware and software usage. This trend has been noted in private industry. The survey shows that larger cities have used computer applications for a longer period than smaller cities, and have upgraded their hardware more times. • The survey shows that all cities, large and small, have a significant utilization of computer applications. None of the survey participants anticipate a decline in the amount of money spent for hardware and software in the near future. • The survey shows that size is not a factor in predicting computer utilization. Small cities which have significant operating divisions make extensive use of computer applications. The survey shows that, in general, larger cities have greater expenditures for data processing, both in absolute dollar amounts and as a percentage of their budgets. The survey separated mainframe data processing tasks from PC processing tasks, such as word processing, spreadsheet analysis and related tasks. The mainframe data processing tasks performed by each city surveyed are detailed in Section E. SPRINGSTED Page A -1 Scope of Services Section B • As in the initial study, Springsted, working in conjunction with LOGIS personnel, developed a questionnaire which inquired about the computer applications utilization of the entity answering the questionnaire. The questionnaire was sent to six (6) cities who use LOGIS services, each selected to represent a reasonable cross - section of cities in Minnesota and to correspond generally in demographics and computer applications to the six (6) non - LOGIS cities who were surveyed in the initial phase of the study. The cities were sent a copy of the questionnaire and a site visit was made by a Springsted representative to complete the questionnaire. The cities included in this survey are identified by a number only, as was done in Phase I of the survey. The actual identity of each participant city has not been disclosed to anyone at LOGIS, although LOGIS personnel did assist in the selection of the LOGIS cities chosen for the Phase II survey. Because the LOGIS cities already work with LOGIS, the confidentiality issue is of less concem with LOGIS cities than with the non - LOGIS cities surveyed in Phase I. However, in order to enhance impartiality, we have • continued the practice of identifying the cities in the survey by number, rather than identifying them by name. 40 The following discussion examines the several responses by the six cities to the survey questions, and is organized according to the categories contained in the questionnaire: (1) general questions, (2) a summary of the current costs of the systems, (3) current annual operational costs, (4) miscellaneous current costs, and (5) future costs. The responses from the survey sheets, as they are shown on the table, are organized by the three larger cities and the three smaller cities. Each city has one identifier using Roman numerals. Footnotes and the separately attached pages showing the responses to question 13, the applications used on each city's current system, are coded by those city names. % SPRINGSTED Page B -1 Report of Findings Section C General Information • 1. During the last three years (1992 to 1994) the expenditures for data processing purposes have increased for five of the cities and have decreased for one. The decrease has come about because of a reduction in the payments for hardware and personnel. The five cities that indicated an increase in total costs show that the increases are spread over a variety of sources. In one city, hardware increases accounted for a large portion of the increase. In another city, personnel costs were decreased, but other costs increased by more than the personnel costs declined. Software increases were a lesser part of the total change. 3. As stated previously, the single city that showed a decrease in expenditures during the three years had a reduction in payments for hardware (50% of the reduction) and personnel (50% of the reduction). • 4. One of the cities that showed the costs of data processing to be increasing, City X, shows a decrease in personnel costs of 167 %. This was offset by a 185% increase in costs included in the 'other" category, leading to an overall increase in expenditures for the period. 5. Including all data processing costs, five of the cities are planning to spend from a quarter of a million dollars to more than a hatf- million dollars for data processing during 1995- The other city will spend approximately $150,000. 6. Three of the cities have 1994 budgets of $20 million to $32 million. The other three plan to spend approximately $10.8 million to $13 million. It should be noted that two of the smaller cities have liquor operations, but these operations do not appear to be a substantial portion of these cities data processing expenditures. 7. The 1994 data processing budgets appear to establish a pattern. The three larger cities each have significant data processing expenditures, ranging from a low of $325,000 to • % SPRINGSTED Page C -1 LOGIS $404,000. The smaller cities have data processing • expenditures ranging from $127,000 to $230,000. 8. The length of time that the six cities have had computing facilities appears to congregate around 20 years. Note that this information was not available for two of the smaller cities. 9. All of the cities have recently upgraded their hardware and software. This is not unusual as the software upgrades are often updated versions published by the software vendor. In addition, the bulk of the hardware costs are PC related, and the cost of PC's has declined substantially in recent years, making upgrades cost effective. 10. One city (City XI I) has used its current software for 19 years and another city for five years. The others have used their current software for three years or less. The City which used d current software for 19 years purchased hardware within the past year. Software has been upgraded from annually to seven times, • depending on the application. Again, most upgrades are to new versions of the same software. 11. The larger cities have data processing coordinators or supervisors. One of the smaller cities has the Assistant Finance Director devote some time to data processing, but two of the smaller cities have no person who has chargeable time to the total system, but each of these two cities has a person who spends part of their time working on the software support side. The three cities with the larger computer systems have various computer staff members as detailed in the table. It should be noted that these costs relate primarily to non - main frame activities. These costs relate mainly to PC based systems. 12. The full -time equivalent personnel involved in the data processing function ranges from 0.1 in the small cities to 0.85 • in the larger cities. This is considerably smaller than the SPRINGSTED Page C -2 LOG1S equivalent figures for the non - LOGIS cities surveyed in • Phase I. Current System Costs 13. The terminals and PC's connected to the mini /mainframes are significant for all six cities. The PC's used as local area network devices used much less than the Terminal to Mini /Mainframe mode. PC's are used independently in all six of the cities. (See Section E.) 14. The system hardware costs range between $350,000 and $565,000 for the larger cities and between $78,000 and $135,000 for the smaller cities. These costs are substantially lower than for the six non-LOG IS cities surveyed in Phase I of the study. 15. System software costs vary for all of the cities, with one city unable to provide an accurate figure and one city using only LOGIS software. One of the larger cities and one of the • smaller cities have total software system costs of about $100,000, while one larger city and one smaller city have software system costs of less than $10,000 each. Current Annual Operational Costs 16. The annual maintenance costs on all of the computer hardware used in city applications varied from $500 to $9,000 for the cities. 17. The annual maintenance costs on operating system hardware were zero for all three large cities and one small city. The other two small cities had costs of $5,000 or $6,000. This compares to annual maintenance costs for non - LOGIS cities which ranged from $4,000 to $75,000 for the larger cities and from $0 to $5,000 for the smaller cities. The city surveyed in Phase I with no maintenance costs is the one with the newest hardware. 18. The annual maintenance costs on application software ranged • from $0 to $3,000 for the larger cities, and from $0 to $1,000 for the smaller cities. These costs are significantly lower than SPRINGSTED Page C -3 the equivalent cost for non - LOGIS cities as surveyed in • Phase I n U LOG /S 19. None of the six cities has significant costs for outside costs. 20. None of the six cities has significant costs for data processing consulting services. 21. The diversity of the annual cost of supplies probably reflected the development of the several systems. They ranged from $5,000 to $9,200 for the large cities. The smaller cities averaged $2,500. These costs are lower than recorded by the non - LOGIS cities surveyed in Phase I. 22. All of the cities plan capital expenditures for data processing at some level. These range from $14,000 to $178,000. There appears to be no pattern to these expenditures. Miscellaneous Costs • 23-24., 25., 26. and 27. The questions in this section were added to the questionnaire in case these costs were not included in response to the request for data processing costs in question V. As the survey results show, most of the cities included most of these costs in their response to question V. Only Cities XI and XII have significant costs for user group meetings. 28. None of the cities have significant space devoted to data processing. This is most likely due to the fact that these are LOGIS cities and therefore do not require significant amounts of space in their facilities devoted to data processing. 29. Apparently only City VII provides off -site storage. 30. Most of these costs are included in the answer to question V. SPRINGSTED Page C -4 LOG1S Future Costs • 31. and 32. All of the cities are planning new or replacement systems in 1995 or later years. Those expenditures will be for hardware, software and consulting. All of the costs anticipated to be spent in the future will relate to PC or LAN systems and not to data processing costs as they are defined for purposes of this survey and Phase I. Conclusion Each reader of the accompany data will draw conclusions that are different from those of anyone else. There are some statements that can be made that may draw a focus to certain parts of the study. The information from the six cities that were surveyed for the purposes of this study was arranged so that the data from the three larger cities was separated from that of the three smaller cities. As • with the Phase I survey of non - LOGIS cities, the data for LOGIS cities also did not necessarily lead to that precise distinction. Other information was more unique to each city. • To some extent, five of the six cities are expecting an increase in costs from 1994 to 1995; a sixth city reduced its expenses by reducing both personnel and hardware costs. All of the six cities are planning to spend a substantial amount of money to upgrade their systems within this decade. The upgrades will be in the area of PC's and LAN's rather than in mainframe data processing. % SPRINGSTED Page C -5 • SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES nl L es Smaller Cities C v Survey Questions City VII City IX City x Cl" I City XII General: 1. 1992 -1994 Total expenditures have:(") 2. Expenditures increased because of: Personnel Hardware Software Additional Tasks Other Total 3, Expenditures decreased because of: Personnel Hardware Software Additional Tasks Other Total 4. If expenditures remained the same. has there been a shift? 5. Budgeted Data Processing Expenditures for 1995: 6 Total 1994 City Budget: General Fund Utility Funds Internal Service Funds(a) Enterprise Funds Other Funds Total 1994 City Budget 7. Total 1994 Data Processing Budget: General Fund Utility Funds Internal Service Funds Enterprise Funds Park and Rec. Other Funds Total 8. Number of years operating a computer facifity 9. A Number of years using current hardware? B. Number of years using current software? Increased 3% 10% 20% 20% —4Z% 100% IV Decreased N/A 50% 50% 100°/6 N/A N/A rlr $13,501,600 $ 9.467,900 $22,969,500 $328.000 $328,000 Since 1981 Annual update PC 4or5 $457,220 r (r rrr rr rrr rrr rrr r� rrl $20,050,000 $361,750 $ 22,330 $ 20,000 $404,080 22 LAN 1992 Increased Increased Increased Increased 2.2% - 167% 18% $ 4,893,000 84.5% 82% 2% $13,515,100 7.7% $161,025 $ 67,200 100% 5 -6% 100% 100% 100% 100% N/A N/A N/A N/A N/A N/A N/A N/A $556,145 $243,000 $17,775,942 $ 8,322,100 $10,241,530 Inc. in Enterprise $ 4,845,826 i 1.11.1193 $10,793.362 $ 4,893,000 $126.957 $47,630 $32,863,298 $13,515,100 $223,000 $161,025 $ 67,200 $149,657 $251,125 $ 5,630,703 $ 7,988,483 $ 2,805,307 $ 2.474,017 Liquor -/ Liquor 4 $ 2,106,001 $ 763,881 1- 251.361 i 1.11.1193 $10,793.362 512338,174 $126.957 $47,630 LOGIS $103,100 $ 3,000 $ 43,100 5 20.700 $ 3.750 $354,000 $167,775 $126,957 22 22 Not Available 2 Since 1993 5 2 3 4 S 79.000 $229,730 Less than 1 year 2 IO EE m C r.. N T lD A r O U) Z G) --1 m 0 m ro CD O N • SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES Larger Cities _ Smaller Cities Survey Questions City VII CiN VIII cin Ix City X CiN XI City XII General (continued): 109 A. Number of years using current software Annual Update LAN LOGIS 1992 Since 1993 5 19 B. Number of software upgrades Word =5 LOGIS 2 Varies by WordStar 7 LOGIS Spreadsheet =5 application 11. Computer personnel: Overall Data Processing Direction Hardware Support Software Support 12. FTE - personnel involved in DP /IS function FTE - personnel involved in PC/LAN activity Current System Costs: 13. Applications used on city's current system 14. System hardware costs: Computer Systems Purchased Workstations Terminals PC's, Disk Drives and Tape Drives Computer Room/Area Construction Costs Printers LAN Other Costs Total system hardware costs 15. System software costs: Payroll Financial Control Utility Billing Operating System Report Writers Database Managers Programming Languages/Tools Utility Software Other Total system software costs 1L, Annual maintenance costs on hardware MIS Coord. MIS Coord, Manager of Computer Coordinated Users in each $5,000 Replacement DP Advisory Information committee of six through LOGIS activity Committee Technologies members. MIS Coord.=50% MIS Coord. =30% Mgr. of Inf. Asst F. Dir. =10% None Accounlanl =5% Tech. =40% Detective =5% Dispatcher -5% Engr Aid =5% GIS Tech =5% MIS Coord. =50% MIS Coord. =70% Mgr. of Inf. Asst, F- Dir. =10% Fin. Dir, , Police, Accountanl =2% Police -25% Tech. =10% Delective =5% Engr. =214 Dispatcher =2% Liquor Mgr. =25% Engr. Aid =5% hours/year G I S Tech . =2% 75 .85 .1 A .1 2 25 .65 .4 4 1 None Attached Attached Attached Attached Attached Attached Est, purchase cost, no depr. $ 10,000 $11,500 $ 25,000 $ 5.000 $ 10,000 $ 20,700 $424.000 $210,000 $192,000 $78,510 $24,000 $135,000 $ 86,100 5141 340 $105,000 S so, $47,800 $565,340 $350.000 $363,800 $78,510 _ -- $83,300 — $135,000 None LOGIS 517 000 ST $7,500 51444!?4 $100.000 STo.z44 $27.500 $93Q4Q $93.1100 Inc in Y7 $9,000 Inc in #7 $500 Inc- in 07 $7,500 $5,000 Replacement $5,000 r- 0 G7 Z G) fn --I M 0 to ro N O r� SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES Survey Questions City VII CiN IX CiN X SmQl XlCilles Cdv XII Current Annual Operational Costs: 17. Annual maintenance costs on operating system software 18. Annual maintenance costs on application software 19. Annual outside costs for applicationsMwdware Annual contract OR hourly charge 20. Annual data processing consulting services costs 21. Annual coals of supplies 22. Capital additions for computer and applications: Additional Disks PC's7Terminals Additional Software Modules Other Total Budgeted capital additions for computer and applications Miscellaneous Costs: 23. Annual fringe benefits costs 24. Annual budget for professional training for all city staff 25 Travel costs if not included in #24 26. Metropolitan area user group meetings: Time Commitment Cost 27. Cost of attending national or regional user group meetings 28. Total area uldized by the data processing operation: Computer Room Data Processing Office, Storage, Etc. 29. Annual rental costs for off -site storage, materials, etc. 30 Annual communications costs to vendors, state agencies, banks, etc. None None None None Inc, in #7 $1.500 Inc. in #7 $3,000 Not significant None None Hourly charge N/A None None None Inc in 07 $9,200 Inc. in 07 $9,100 Inc. In #7 $5,000 =1 Inc in #17 Inc. in #17 Hourly charge $1.000 $2,500 $133,900 $61,546 $142,000 $14,495 $ 44.800 IAN S25.4QlI $178,500 $86,546 $142.000 $14.495 Inc. in 07 Inc. in 07 Inc. in #71nc.in 07 $10,000 Inc. in #7 Inc. in 07 24 days/year 3 daystyear Inc. in #7 Inc. in 07 $600 Inc, in #7 Inc. in #7 $350 Inc. in #7 Inc. in #7 Inc. in #7 $4.000 Inc. in #7 Inc. in dept. budg. 6 daystyear 36 days/year $1,200 $6.000 None 100 sq. It. 100 sq. ft. 350 sq, ff. Inc. in #7 None None Inc. In #7 Inc. in #7 $8.617 Inc in 07 $12,000 None 150 sq. h. None LOGIS $1.000 Liquor $600 Contract None $3,400 $22,700 $22,700 Inc in #7 $600 $200 12 days/year $6,700 None None 3,650 Inc in #7 $14,000 $5,000 None None None $2,000 Inc. in #7 $117,800 $117,800 Inc in #7 Inc in #7 None 10 days/yeaf $1,200 None 100 sq. ft, None $2,000 r 'O G) Z Q W M O 17 m (s d 0 0 0 SURVEY ON MUNICIPAL EXPENDITURES FOR INFORMATION PROCESSING SYSTEMS AND SERVICES La eq Survey Questions y VII Citv IX City X SmaIICiN X lies City XII Future Costs (Major Computer Upgrades): 31. Anticipated budget for new, or replacement, computing systems: Hardware(a) LAN-$37.500 1995= $81,427 1995 - $70,000 PC's in 1995 PC'sttenninals Cash registers PC's = $51,0130 1996 = $78,000 $48,600 1995 $22.700 1995 $71,500 1997 =$220,000 Server in 1998 1998480,000 $25,000 Software(c) ConsuBing(d) 32 Major subsystems replacement if entire system is not replaced: Hardware -Cost (a) Vllt, IX) Reallocated to other funds. $5,000 1995420,000 1996=$20,000 1997=$50.000 1998 = $20,000 1986=52,000 1997 = $90,000 1997 = $50,000 PC, terminals: to $60,000 for $108,000 in 1995, recablmg $100,010 in 1996 1997 = $5.000 Software: for consultation $50,000 in 1997: ' Consulling. $5,000 in 1996 (b) Vll.) For 1995 and each of several years. Off) 1997 includes optical disk, radio systems for $140, 000, plus $80,000 for ongoing capital oullay (c) Vll) For 1995 and each of several years. Vlll -) 1997 includes optical disk, radio systems for $30.000, plus $20.000 for ongoing expenditures. (d) 00) 1997 includes transferring data Imm paper to the new system. Park and Rec. system in 1996; vehicle maintenance in 1996, 1997, both from LOGIS Software 1996 None $4,000 r O O • E • Survey 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 Section E City VII = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) Application T to Mn PC to Mn PC to LAN P C 1 P C 2 P C 3 P C 4 P C 5 P C 6 Additional Hardware Needed for PC Onty (i.e., printer, modem, etc.) Payroll X X Personnel X Utility Billing X Permits/Inspecton X X General Ledger X X Accounts Receivable Accounts Payable X X Bud ehn Cost Accounting X X Purchase Orders Financial Other X Business License X Electronic Mail Liquor Inventory Vehicle M mt X X Police Comp. Aid Dis . X Police Records X X Fire Records X Property Data/ Assessment Special Assess. X X Deputy Registrar Fixed Asset M mt. X Street/Alley Inv, X Geo. Info. Sys. UNIX Workstation & X Terminal Homestead Proc. Citizen Complaints Clerks Index Park/Recreational Facility M mt. X Park/Recreation Scheduling X Dog LicensingX X Investment M mt. X Tree Inventory X X Other Other Other SPRINGSTE Page E -1 r1 LJ • • 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 LOG1S City VIII = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) SPRINGSTED Page E -2 T PC PC P P P p p P to to to C C C C C C Additional Hardware Needed for Application Mn Mn LAN 1 2 3 4 5 6 PC Only (i.e., printer, modem, etc.) Payroll X Personnel Utility Billing X Permits /fns ection X X General Led er X Accounts Receivable X Accounts Pa able X Bud etin X Cost Accountin X Purchase Orders Financial Other X X Business License X Electronic Mail X L' uorinvento X X Vehicle M mt. X New Police Comp. Aid X X Moving to PC Dis . Police Records X Fire Records X Property Data/ X X Assessment Special Assess. X X De2uty Registrar Fixed Asset M mt X Street/Alle Inv, X Geo. Info. S s. X X Homestead Proc. X Citizen Com faints X Clerks Index Park/Recreational X New Facili M mt. Park/Recreation X New Schedulin Dog Licensing Investment M mt. X Tree Invento X Other: Other: X Utility Mana ement Other X Well Management SPRINGSTED Page E -2 • • E 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 LOGIS City IX = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) Application Payroll T to Mn X PC to Mn PC to LAN P C 1 P C 2 P C 3 P C 4 P C 5 P C 6 Additional Hardware Needed for PC Only (i.e., printer, modem, etc -) Personnel X Utili Billin X Permits/Inspection X General Ledger X Accounts Receivable Accounts Payable X Bud etin Cost Accounting Purchase Orders Financial Other Business License X Electronic Mail X Liquor Invento Vehicle M mt. X Police Comp. Aid Dis . X Police Records X Fire Records X X X X Property Data/ Assessment X 5peci al Assess. De u R istrar Fixed Asset M mt. X Street/Alley Inv, I X Geo. Info. S s. Homestead Proc. X x - HP NbrksbliaVPWWr nQlwakse W Locis Citizen Complaints I X Clerks Index X Park/ Recreational Facili M mt. Park/IR ation Scheduling X League Scheduling Dog Licensing X Investment M mt. Tree Invento X Other: En . /CAD Other: Uti. /Inv. Other: Meter Reading/Recycling Bar Code Readin X - PC /Plotter X - PC X - Handhelds Other: Food /Pool Ins lion X - Handhelds/Portable Printer % SPRINGSTED Page E -3 • 11 LOGIS 13. Please check ALL applications in use on your current system Legend: T to Mn = Terminal to MinUMainframe PC to Mn = PC to Mini /Mainframe PC to LAN = PC as Local Area Network PC1..PC6 = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) City X Application Payroll L T tc Mn X PC to Mn PC to LAN P C 1 P C 2 P C 3 P C 4 P C 5 P C 6 Additional Hardware Needed for PC Only (i.e., printer, modem, etc.) Personnel L X Utility Billing L X Permits/Inspection L X General Ledger L X Accounts Receivable L -Payable X Accounts L X Budgeting L X Cost Accountinq L X Purchase Orders L X Financial Other L X Business License Electronic Mail IN X Liquor Invento Vehicle M mt IN X PC Police Comp. Aid Dis . L X Police Records L X Fire Records IN X PC Prober Chief Property Data/ Assessment Special Assess. IN Coun X $2,000 PC Deputy Registrar L X Fixed Asset M mt. L X StreetfAlle Inv, Geo. Info. S s. Homestead Proc. Citizen Cam taints Clerks Index Park/Recreational Facility M mt.IN $2,000 Maint PC Park/Recreation Scheduling Dog Licensing Investment M mt. Tree Inventory Other. Other Other: N SPRINGSTED Page E-4 r�f, r] L • 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 LOGIS City Xi = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini/Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) SPRINGSTED Page E -5 Additional Hardware Needed for PC Only (i.e., printer, modem, etc,) Assessment Facility Mgmt. SPRINGSTED Page E -5 9 • • 13. Please check ALL applications in use on your current system Legend: T to Mn PC to Mn PC to LAN PC1..PC6 LOG1S City XII = Terminal to Mini /Mainframe = PC to Mini /Mainframe = PC as Local Area Network = PC Only is used, No Mini /Mainframe needed (Check off same PC number when multiple applications used on SAME PC; check different PC number when applications are on different PC's.) SPRINGSTED Page E -6 Additional Hardware Needed for MEN ININIME MEN IMEME �-MMM MINE W-1-F7112 MIN EMEMINME NO . •'MMNIMI IMIE MEMEMIN �.�_- 00 ... MEN MEN IMIN INME investment Mgmt. Tree Inventory MIME SPRINGSTED Page E -6 0 Report on the Survey on Municipal Expenditures for Information Processing Systems and Services Executive Summary Phase I and Phase II Combined Analysis • Prepared for Local Government Information Systems Association (LOGIS) February 23, 1995 19 • • Table of Contents A. COMPILATION OF SURVEY RESULTS .......... ............................... 1 Purpose of Survey ........................................ ............................... 1 Data Interpretation Constraints ..................... ............................... 1 B. GENERAL COMPARISONS ............................. ............................... 1 %SPRINGSTED of Survey Results Section A Springsted has prepared a summary sheet for both the Phase 1 • (Non - LOGIS Cities) and the Phase II ( LOGIS Cities) survey results. The Summary is divided into three pages. One page provides a summary of the survey responses from Phase I cities. One page provides a summary of the survey responses from Phase II cities. The third page provides a framework for comparing, in general but not specific terms, the Information Processing Systems and Service costs of LOGIS compared to non - LOGIS participants. Purpose of Survey The purpose of the survey of both non - LOGIS cities (Phase 1) and LOGIS cities (Phase II) is to form a general perspective of the amount of effort and cost which cities are devoting to computer application for Information Processing Systems and Services. The survey is not designed to provide an application by application or city by city comparison of these costs. Data Interpretation Constraints • Because the survey is not designed to provide specific comparisons, any such comparison of costs between individual cities is not valid. Each city, whether it is a participant in LOGIS or not, may not be compared to any other city, LOGIS participant or not. There are three primary reasons for this. First, each city uses Information and Data Processing in different ways and at different levels. An individual city may use computer services for many applications or a select few applications. In addition, the applications which are performed using computers may or may not be specialized, requiring specialized application software applicable only to a particular application in a particular city. The complexity of the application for each city will differ as well. More complex situations may occur for the same application in different cities. Second, each city may account for costs of Information and Data Processing in a slightly different manner. One city may choose to capitalize a certain cost over a number of years, where another city may choose to expense a similar cost in one year. The accounting • treatment of both cities may be correct, depending on their individual circumstances. Each city may choose to allocate "SPRINGSTED Page A -1 LOGIS Information and Data Processing costs to various departments • using different methods. The allocation of overhead or personnel to Information and Data Processing will vary between cities and within each city over time. Third, the survey performed by Springsted is not designed to comply with scientific or statistical sampling methodology. The size of the survey is not large enough to be statistically valid. Neither is the selection of the cities for inclusion in the survey completely random to insure statistical validity. Rather, the survey was performed with the consent of the surveyed cities. Each city was selected to meet general criteria established by LOGIS. These criteria included population, growth, number of applications performed using computers among others. No attempt was made to insure that the cities chosen are statistically representative of the north. Nor was any attempt made to insure that the non - LOGIS cities were directly comparable to LOGIS cities. For these three reasons, it is not valid to compare any individual LOGIS city costs with the costs of any individual non - LOGIS city. Rather, the survey results may be used as a starting point to • compare overall costs on a more general basis. • Using a broader approach potentially reduces, but does not eliminate, the risk that individual city differences in levels of applications, types of applications, accounting treatment, or similar issues will alter the analysis in a material respect. Individual city differences will result in comparisons necessarily being less precise than might be desirable. The most valid comparison would be for a non - LOGIS city to compare specific applications to LOGIS charges for the applications to be compared. This would allow identification of specific features for an individual city which may then be adjusted for in any comparison. H SPRINGSTED Page A -2 General Comparisons Section B Looking at a broad based comparison is shown on the schedule of • "Summary - Comparison of Equalized Costs ", which provides one possible framework for looking at LOGIS city costs compared to non - LOGIS city costs for similar services. The LOGIS cost for LOGIS cities was adjusted to reflect survey results showing building space, supplies, personnel. In addition, estimates of LOGIS special programming projects and estimated cost of dedicated high -speed telephone lines were added to the base LOGIS cost. The resulting figures represents an estimate of the total cost to the surveyed LOGIS cities for LOGIS services. The LOGIS cities and non — LOGIS cites are divided into large cities and small cities. The large cities and small cities are each averaged as a group, separated into large and small cities. It is important to note that the averages are based only on the cities included in the survey conducted by Springsted. Since the survey is not based on a statistically significant sample size, only general comparisons should be drawn from the figures. Nonetheless, the survey results provide a beginning point for additional analysis. • Comparison of the LOGIS cities and non - LOGIS cities shows a cost differential between the LOGIS cities and the non - LOGIS cities. This differential occurs for both the large cities and the small cities. This cost differential favors LOGIS in both the large city and the small city groupings. • For the reasons outlined earlier, it is not possible to directly compare the estimated costs on a city by city basis. The magnitude of the differential in the large city portion of the survey indicates that in a general sense, the LOGIS approach to Information and Data Processing Systems and Services may provide a more cost effective delivery of services. % SPRINGSTED Page a -1 0 0 Summary - Comparison of Equalized Costs FJ SPRINGSTED Exhibit I ' Survey on Municipal Expenditures for InforrnaWn Processing Systems and Services Summa - Comparison of Equalized Costs $226,000 $105,000 • NON LOGIS ClUes $108,000 949 949 3,322 Description - Category 1 City II III IV V 2,500 DP Costs - 1994 Actual $187,500 $364,400 $361,000 $84,000 $260,560 $74,970 Building Space 20,223 9,319 4,745 2,847 3,796 10,629 Ann. Allocated Hardware Years for Cost Allocation 54,728 5 75,368 52,857 30,000 5 7 5 14,000 5 22,856 5 Annual Allocated Software Years for Cost Allocation 84,631 5 10,600 85,714 26,000 5 7 5 7,000 5 26,009 5 Estimated Annual Costs $347,082 $45%687 $504,316 $142847 $285356 $134,464 Average Estimated Annual Cost for Large Non-LOGIS Cities (i to 111) $437.028 Small Non - LOGIS Cities (1V to V1) • LOGIS Clues Description - Category LOGIS Cost - 1994 Actual Building Space Estimated Supplies Estimated MIS Personnel LOGIS Sp. Projects (eat) Communications $187.556 $204,000 $213,000 $226,000 $105,000 $109,000 $108,000 949 949 3,322 1,424 0 949 2.500 2,500 2,500 1,500 1,500 1,500 37,500 42,500 5,000 20,000 5,000 10,000 5,000 5.000 5,000 5,000 5,000 5,000 4,600 3,280 1,900 4,840 1,900 4,120 Estimated Annual Costs .$254,416 $267,045 $243,37 $138,168 $121,983 $129 190 Average Estimated Annual Cost for Large LOGIS Cities (V11 to UQ $254,946 Small LOGIS Cities (X to Xlt) 5129.780 Local Government Information Systems Association Survey on Municipal Expenditures for Information Processing Systems and Services Sum - Phase I, Non -LOGIS Cities Description - Category I. Data Processing Budget (LOGIS type activities) 1994 Actual 1995 Budgeted II. FTE Personnel Total Main Frame H/W support LAN/PC type support III. Years of Operation •IV. System Hardware Cost Total PC related Main Frame Hardware Years Current Sys in use Number of Upgrades V. System Software Cost Total PC related Main Frame Software Years Current Sys in use Number of Upgrades Common Applications • VI. Building Space 187,500 364,400 361,000 84,000 260,560 74,970 201,100 472,000 371,800 82,000 260,560 107,000 3.00 2.00 3.45 0.00 2.50 000 1.80 0.55 2.20 0.00 1.70 0.00 1.20 1.45 1.25 0.00 0.80 0.00 22 12 18 10 273,638 458,587 00 000 a 81,749 .1 10 2.00 00 00 12. 5.00 0r i0 423,155 Q 423.155 2.00 1.00 12 20,223 53,000 600,000 130,000 Q 53.QQQ 4 600." Q 3.00 7.00 130-OW 5.00 3.00 0.00 4.00 10 14 7 9,319 4,745 2,847 25 10 130,000 60,000 a 70-Wn 00 2.00 2.00 35,000 130.045 Q Q 35-ran 1 1.50 3.00 2.00 2.00 4 5 3,796 10,629 Local Government Information Systems Association Survey on Municipal Expenditures for Information Processing Systems and Services Summa - Phase II, LOGIS Cities Description - Category I. Data Processing Budget (LOGIS activities) 1994 Actual 1995 Budgeted II. FTE Personnel Total Main Frame H/W support LAN/PC type support III. Years of Operation • N. System Hardware Cost Total PC & related Main Frame Hardware Years Current Sys in use Number of Upgrades V. System Software Coat Total PC related Main Frame Software Years Current Sys in use Number of Upgrades Common Applications • Vt. Budding Space 203,867 212,816 225,655 105,404 108,583 107,621 228,000 228,000 242,000 120,000 126,000 102,000 1.00 1.50 0.50 0.80 0.20 0.20 0.75 0.85 0.10 0.40 0.10 0.20 0.25 0.65 0.40 0.40 0.10 0.00 14 22 22 22 WA 19 565,340 565.344 350,000 350 000 363,800 363.fl44 78,510 7.8.510 83,300 83.344. 135,000 13,5.444 Q Q Q Q Q Q 4.00 4.00 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 2.00 2.00 7,500 100,000 WA WA 27,500 93,000 L50 10.E WA WA 2Z544 93,0.00 Q Q Q Q Q 4 Varies Varies Varies Varies Varies Varies Varies Varies Varies Varies Varies Varies 12 10 14 7 7 5 949 949 3,322 1,424 0 949 C TO: Mayor & City Council FROM: Mark Schnobrich, City Forester DATE: July 5, 1995 RE: Weed Ordinance Update Each year in compliance with City Ordinance Chapter 10.3 1, City staff complete three to four seasonal surveys for weed non compliance. To date we have completed two citywide surveys for lots with weeds or grass which violates City Ordinance. The two surveys have yielded 39 separate lots which were not in compliance as of July 3, 1995. The City Staff also receive citizen complaints in regards to neighborhood weed lots. We respond to each complaint as we receive them. Lots that are found in non - compliance are then researched as to proper ownership and owners address. Property owners are then notified by mail and upon receipt of the weed notice are given seven days with which to comply. Weed lots are then re- surveyed after the seven days and, if found in non - compliance, are turned over to a city contractor for mowing. Each lot that is tagged for weeds and mowed by city contractors is then assessed the cost of the mowing plus a $50 administrative fee. Due to the nature of the weed lots and the specialized equipment needed to handle the weeds, the City is limited to contractors that are able to provide equipment that can actually accomplish the job. In addition to city weed ordinance compliance, city staff work closely with the County Weed Inspector in notifying city lot owners of noxious weed violations. The same procedure is applied on lots with noxious weed, as to city weed non - compliance lots, with the possible addition of contracting the actual spraying of noxious weeds above and beyond just mowing. To date, the city contractor has been given 23 delinquent lots and has mowed 22 lots which will be assessed to the property owner. City Center 1 / 1 Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax (612) 234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 Fax(612)234 -4240 - Prwed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 / (612) 587 -2242 /n Fax (612) 587 -6427 G July 7, 1995 :i • I have attached a preliminary schedule for our 1996 budget for the city council to review. I will review the details and be available to answer any questions you may have regarding the procedure. Our year end audited report has been completed and will be ready for presentation to the council. If the council desires to schedule a workshop to review the material; a date and time will need to be scheduled. isCity Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax(612)234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 Fax(611)134 -4240 - Pnnted an rem l,d pope, - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (612) 587-2242 Fax (612) 587 -6427 • CITY OF HUTCHINSON BUDGET SCHEDULE 1996 JANUARY 1995 - JULY 1995 Planning 1 year and 5 year plans being development by director following City's Vision Statement and council's planned Direction. June 27, Budget worksheets to directors and department heads to be returned by July 27. July 11, Review budget schedule with City Council July 27, Budget worksheets prepared and returned to finance department for fund summary of expenses and revenues for preliminary budget presentation August Directors review budget and propose adjustments to balance revenues and expenditures. preliminary numbers given to city council. September 12, City Council selects hearing date - school district selects first date, county dates are December 12 and December 19. City's selected date and time cannot conflict with School District 423 or McLeod County Truth -In- Taxation (TIT) hearing dates. Hearing cannot be any earlier than November 29, 1995 nor later than December 20, 1995. City Council set preliminary tax levy for 1996. Certified levy can be reduced but cannot be increased for 1996 after public hearing. September through November City council reviews budget - general fund, other government and enterprise funds of the City. Schedule as determined by City Council. November 10 - 24 Parcel specific notices mailed to tax payers indicating preliminary taxes payable. Notice gives date and time of hearings by taxing district. November/ December Printed Notice not more than 6 business days prior but not less than 2 days prior to Truth -In- Hearing date established in September. --Z), December 20 Or at least i day after public hearing city council adopts final 1996 tax levy and certifies the amount to the McLeod County Auditor's Office. 9 • s • NEW YORK WASHINGTON, D. G. DENVER ORANGE COUNTY, CA LONDON- BRUSSELS HONG KONG Mr. Dick Lennes City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 DoiRSEY & WHITNEY PROICSS10 %AL LJA,,C. Ll.,011111 PAPT \- EPSHIP PILLSBURY CENTER SOUTH 220 SOUTH SIXTH STREET MINNEAPOLIS. MINNESOTA 33102-1498 (912) 340-2900 F.,C !912 3. 2888 Mr. Kenneth Merrill City of Hutchinson 111 Hassan Street SE • Hutchinson, MN 55350 Mr. G. Barry Anderson Arnold, Anderson & Dove 101 Park Place Hutchinson, MN 55350 -2563 JEROME P. GELUGAN (6121340-2M July 7, 1995 Re: Hutchinson Hotel Development Agreement Dear Dick, Ken and Barry: SEATTLE ROCHESTER. MN BILLINGS GREAT FALLS MISSOULA DES MOINES FARGO Enclosed is a first draft of the Development Agreement for the Hutchinson Hotel redevelopment project, together with a resolution of the City Council approving the Development Agreement and pay -as- you -go tax increment Bond. The form of the Bond is attached as Exhibit C to the Development Agreement. The Bond is payable from 80% of the tax increment received by the City from TIF District No. 10. No other funds are pledged by the City to the payment of the Bond. I have provided that the principal amount of the Bond is $190,000. I have provided that no interest accrues on the Bond until the later of January 1, 1997 or the second January 1 following the issuance of the Certificate of Completion with • respect to the project. I DORSEY & WHIT \FY P—,--, i—,. L,.. —' rare1,..— Page -2- Mr. Dick Lennes Mr. Kenneth Merrill Mr. G. Barry Anderson July 7, 1995 Please review this material and call me with any questions or comments you may have. JPG:cmn Enclosures 0 • • e r • CERTIFICATE CITY OF HUTCHINSON MINNESOTA I, the undersigned being the duly qualified City Administrator of the City of Hutchinson, Minnesota (the City), hereby attest and certify that: 1. As such officer, I am the recording officer of the City and have the legal custody of the original record from which the attached resolution was transcribed. 2. I have carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. 3. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION NO. Resolution Relating to Development Program for Development District No. 4; Approving Execution of Development Agreement with Morningside • Development Company and Issuance of Limited Revenue Taxable Tax Increment Bond 1] 4. I further certify that the affirmative vote on said resolution was ayes, nayes, and absent/ abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such City Administrator this day of ,1995. Gary D. Plotz, City Administrator Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION RELATING TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4; APPROVING EXECUTION OF DEVELOPMENT AGREEMENT WITH MORNINGSIDE DEVELOPMENT COMPANY AND ISSUANCE OF LIMITED REVENUE TAXABLE TAX INCREMENT BOND BE IT RESOLVED by the City Council (the "Council') of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. Development Program and Tax Increment Financing Plan. The City has previously approved a development program for a development district of the City, under Minnesota Statutes, Sections 469.124 through 469.134, and a tax increment financing plan of the City, under Minnesota Statutes, Section 469.174 to 469.179, designated as Development Program for Development District No. 4 (the "Development District") and Tax Increment Financing Plan for Tax Increment Financing District No. 10 (the "Tax Increment Financing Plan"). The Tax Increment Financing Plan established Tax Increment Financing District No. 10 (the "Tax Increment District "). 1.02. Expenditure of TM Increment Revenue. The Development District constitutes a "project' and the Tax Increment District constitutes a "tax increment financing district" within the meaning of Minnesota Statutes, Sections 469.174 to 469.179, and thus the City has authority under said Sections 469.174 to 469.179 to expend ad valorem tax increments derived from the Tax Increment District to pay costs incurred or to be incurred by the City in aid of the Development Program for the Development District, or to pay the principal of and interest on bonds, notes or other obligations of the City issued to finance such costs, in accordance with the Dedevelopment Program. 1.03. Computation of Tax Increment The County Auditor of McLeod County upon application of the City has or will certify to the City, the Original Tax Capacity of all taxable property in the Tax Increment District (the "Original Tax Capacity"), and is to certify to the City in each year the then current Tax Capacity of all taxable property in the Tax Increment District (the "Current Tax Capacity"). The Current Tax Capacity, less the Original Tax Capacity, is the Captured Tax Capacity. The ad valorem taxes derived from the property in the Tax Increment District in each year, by application of the aggregate tax capacity rate levied by all governmental i • • entities having authority to levy taxes on such property to the Captured Tax Capacity, subject to the limits set forth in the Minnesota Statutes, Section 469.177, is the Tax Increment to be derived from the Tax Increment District (the "Tax Increment "). 1.04. Development Agreement and Bond. It has been proposed that the City enter into a Development Agreement (the "Development Agreement ") between Morningside Development Company (the "Developer "), the form of which has been presented to this Council and is ordered placed on file in the office of the City Administrator. Under the Development Agreement, the Developer agrees to renovate the existing Hutchinson Hotel into an office /renovation condominium, together with other related site improvements (the "Project ") on property included in the Development District and in the Tax Increment District. The Development Agreement provides that to reimburse the Developer for a portion of the costs of the Project the City will issue to the Developer the Limited Revenue Taxable Tax Increment Bond of the City in the original principal amount of up to $190,000 and in substantially the form attached to the Development Agreement (the 'Bond "). The Bond will be payable solely out of Tax Increment and will bear interest at the rates provided in the Bond. is 2.01. Approval of Development Agreement and Bond. The form and terms of the Development Agreement and the Bond are hereby approved, and the execution and delivery by the City of the Development Agreement and execution, delivery and issuance of the Bond by the City as provided in the Development Agreement are hereby authorized. The terms of the Bond shall be as set forth in the Bond. The Mayor and City Administrator are hereby authorized and directed to execute and deliver the Development Agreement and the Bond on behalf of the City in substantially the form presented hereto with such changes and modifications as may be approved by the officers executing the Development Agreement and the Bond. The execution and delivery of the Development Agreement and the Bond by the Mayor and City Administrator shall be conclusive evidence of the approval of any changes and modifications to the Development Agreement and the Bond by such officers. 1] 2.02. Pledge of Tax Increment. The portion of the Tax Increment which constitutes "Available Tax Increment," as defined in the Bond, is hereby pledged to pay the principal of and interest on the Bond as provided in the Bond. 2.03. No Representations or Warranties. The City does not in any manner represent or warrant that the Tax Increment will be sufficient to pay the principal of and interest on the Bond when due. -2- Section • l ty Auditor RQgjairation and Certification of 3.01. County Auditor Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as the County Auditor shall require, and to obtain from such County Auditor a certificate that the Bond has been entered on his bond register as required by law. 3.02. Certification of Proceedinp. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the purchaser of the Bond and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bond as to the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember taken thereon, the following voted in favor thereof: and the following voted against the same: and upon vote thereof being whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, whose signature was attested by the City Admininistrator. E • -3- 0 0 • 11 DEVELOPMENT AGREEMENT DEVELOPMENT DISTRICT NO. 4 (MORNINGSIDE DEVELOPMENT COMPANY.) CITY OF HUTCHINSON, MINNESOTA IR`f7 MORNINGSIDE DEVELOPMENT COMPANY ... roan A" • TABLE OF CONTENTS Section 1.1 Definitions ................. ............................... Section 2.1 By City ..................... ............................... Section 2.2 By Developer ............... ............................... Section 3.1 Use ........................ ............................... Section 3.2 Declaration of Restrictions .................................. Section 4.1 Construction Plans .......... ............................... Section 4.2 Undertaking of Project ....... ............................... Section 4.3 Certificate of Completion ................................... Section 5.1 Defense of Qaims ........... ............................... • Section 5.2 Insurance .................. ............................... Section 6.1 Issuance of Bond ............ ............................... Section 7.1 Transfer of Property and Assignment ........................ Section 7.2 Termination of Limitations on Transfer ...................... Section 8.1 Events of Default ............ ............................... Section 8.2 Remedies on Default ........ ............................... Section 8.3 No Remedy Exclusive ...................................... Section 8.4 Waivers .................... ............................... Section 9.1 Conflict of Interests; City Representatives Not Individually Liable ..................................... Section 9.2 Equal Employment Opportunity ............................. • Section 9.3 Restrictions on Use .......... ............................... -i- Section 9.4 Titles of Articles and Sections ............................... • Section 9.5 Notices and Demands ....... ............................... Section 9.6 Term of Agreement ......... ............................... Section 9.7 Counterparts ............... ............................... Schedule A Development Property Schedule B Project Description Exhibit A Certificate of Completion Exhibit B Declaration of Restrictive Covenants Exhibit C Form of Bond • _ii_ is • DEVELOPMENT AGREEMENT This Agreement is made as of ' 1995, by and between the CITY OF HUTCHINSON, MINNESOTA, a municipal corporation of the State of Minnesota (the "City"), and MORNINGSIDE DEVELOPMENT COMPANY, a ( "Developer "). W ITNESSETH: WHEREAS, the City has designated a development district in the City denominated Development District No. 4 (the "Development District ") and has approved a development program for the Development District (the "Development Program ") pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134 (the "Act "); WHEREAS, the City has established a tax increment financing district designated as Tax Increment Financing District No. 10 (the "District ") within the Development District and authorized the financing of the Development Program pursuant to a Tax Increment Financing Plan For Tax Increment Financing District No. 10 (the "Financing Plan") pursuant to and in accordance with Minnesota • Statutes, Sections 469.174 through 469.179 (the "Tax Increment Financing Act "); WHEREAS, the City Council of the City (the "City Council') has authorized and directed the officers of the City to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the City Council as may be required by the Act; WHERAS, the City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Program, for the City to reimburse the Developer for certain costs to be paid by the Developer with respect to improvements to be constructed on the property located in McLeod County, Minnesota described in Exhibit A hereto (the "Development Property"); WHEREAS, the City is desirous of contracting with the Developer to improve the Development Property in accordance with the Development Program, as specified in this Agreement; and the Developer is desirous of contracting with the City for this purpose. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: ARTICLE 1 Definitions Section I.I. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.124 through 469.134. "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Bond Resolution" means the resolution or resolutions adopted by the City Council authorizing the issuance and setting forth the terms and security for the Bond. "Bond" means the Limited Revenue Taxable Tax Increment Bond in substantially the form of Exhibit C hereto to be issued by the City pursuant to the Bond Resolution and to be delivered by the City to the Developer as provided in Section 6.1 hereof. "Certificate of Completion" means a certification in the form attached as Exhibit A, to be provided to Developer pursuant to this Agreement. CJ "City" means the City of Hutchinson, Minnesota, a Minnesota municipal • corporation. "City Council" means the City Council of the City. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property as a part of the Project, which (a) shall be at least as detailed as the plans, specifications, drawings and related documents which are submitted to the building inspector of the City and (b) shall include at least the following: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) elevations on all sides; (6) landscape plan; (7) grading plan; and (8) utility plan. "Development Area" means the area included in the Development District. "Development District" means Development District No. 4 designated by the City under the Act. "Developer" means Momingside Development Company, a -2- • • "Development Program" means the Development Program for the Development District. "Development Property" means the portion of the Development Area described on Schedule A attached hereto. "Event of Default" means as set forth in Section 9.01 hereof. "Improvements" means the buildings or other improvements located on the Development Property. "Mortgage" means any mortgage made by Developer which covers, in whole or in part, the Development Property. "Mortgagee" means the owner or holder of a Mortgage. "Net Proceeds" means any proceeds paid by an insurer to Developer and the City under a policy or policies of insurance required under Article 5 and remaining after deducting all expenses (including fees and disbursements of counsel) incurred in the collection of the proceeds. • "Project' means the renovation of the existing building on the Development Property into an office /retail condominium, and the construction of site improvements and other improvements of a public nature, all as further described in Schedule B attached to this Agreement. 11 "Plans" means Developer's plans dated . 1995 for the Project prepared by as submitted to the City, with any subsequent amendments approved by the City. "Restrictions" means the Declaration of Restrictive Covenants set forth in Exhibit B. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179. "Tax Increment District" means Tax Increment Financing District No. 10 created by the City pursuant to the Tax Increment Financing Plan. -3- "Tax Increment Financing Plan" means Tax Increment Financing Plan for Redevelopment Tax Increment Financing District No. 10 approved by the City and the City Council and dated June 27, 1995. "Unavoidable Delay" means a failure or delay in a party's performance of its obligations under this Agreement, or during any cure period specified in this Agreement which does not entail the mere payment of money, not within the party's reasonable control, including but not limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which could be resolved by using union labor), fire or other casualty, or lack of materials; provided that within 10 days after a party impaired by the delay has knowledge of the delay it shall give the other party notice of the delay and the estimated length of the delay, and shall give the other party notice of the actual length of the delay within 10 days after the cause of the delay has ceased to exist. The parties shall pursue with reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall not extend performance of any obligation unless the notices required in this definition are given as herein required. Section 2.1. By City. City makes the following representations to • Developer: (a) City is a Minnesota municipal corporation. Under the provisions of the Act, City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Development Project is located within the Development District and the Development Program for the Redevelopment District was adopted and approved in accordance with the terms of the Act. (c) The Tax Increment District is a "tax increment district" within the meaning of the Tax Increment Act and was created, adopted and approved in accordance with the terms of the Tax Increment Act. Section 2.2. By Developer. Developer represents and warrants that: (a) Developer is a duly organized and existing under the laws of Minnesota[ and is in good standing under the laws of the State]. The Developer has full [corporate] power and authority to execute and deliver this Agreement and this Agreement has been duly authorized, executed and delivered by the Corporation. -4- 0 • (b) Developer will, subject to Unavoidable Delays, complete the Project in accordance with the terms of this Agreement, and all local, state and federal laws and regulations. (c) Developer has received no notice or communication from any local, state or federal official that the activities of Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure with respect to the Development Property. (d) Neither the execution or delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which Developer is now a party or by which it is bound. (e) The Developer (i) is not in default in the payment of the principal of or interest on any indebtedness for borrowed money; or (ii) is not in default under any instrument or agreement under and subject to which any indebtedness for borrowed money has been issued. • (f) The Developer would not undertake the Project but for the tax increment financing assistance being provided by the City hereunder. (g) No member of the governing body of the City or any other officer of the City has any direct or indirect financial interest in the Developer, the Development Property or the Project. (h) The costs of land acquisition, demolition, relocation and other site preparation to be paid by the Developer with respect to the Project will be in excess of $190,000. �IMWGTMPA'ZM- It Section 3.1 Imo. Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions and all applicable laws, ordinances and regulations. Section 3.2 Declaration of Restrictions. Developer shall prepare, • execute, and record on the title to the Development Property a Declaration of -5- Restrictive Covenants, substantially in the form set forth as Exhibit B, and shall cause each existing Mortgagee to execute an appropriate instrument in form satisfactory to the City consenting to and agreeing to be bound by the Restrictions in the event it becomes a record owner of all or a part of the Development Property. 0 t 141111. :•• Section 4.1 Construction Plans. Developer shall submit Construction Plans to the City according to the Time Table. The Construction Plans shall provide for construction of the portion of the Project consisting of construction in conformity with the Plans, this Agreement, and all applicable state and local laws and regulations. The City shall approve the Construction Plans in writing if no Event of Default has occurred and, in the reasonable discretion of the City, the Construction Plans: (a) substantially conform to the Plans and subsequent amendments approved by the City; (b) conform to the terms and conditions of this Agreement; (c) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (d) are adequate to provide for construction of the portion of the Project consisting of construction; and (e) provide for minimum disturbance to neighboring properties during construction. No approval by the City shall relieve Developer of the obligation to • comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly demolish the existing buildings or construct the Improvements. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefor, and shall be made within 30 days after the date of their receipt by the City. If City rejects the Construction Plans, in whole or in part, Developer shall submit new or corrected Construction Plans within 30 days after written notification to Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by City. (a) Subject to Unavoidable Delays, Developer will complete the Project all in accordance with the Plans and the Construction Plans on or before .199 (b) All work with respect to the portion of the Project consisting of construction shall be in substantial conformity with the Construction Plans approved by the City. Developer shall promptly begin the Project and diligently prosecute the Project to completion. Developer shall make reports, in such detail -6- • • and at such times as may reasonably be requested by the City, as to the actual progress of Developer with respect to the Project. (c) Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. Except for public improvements which are assessable by the City or other governmental body against other benefitted properties, all street and utility installations, relocations, alterations and restorations shall be at Developer's expense and without expense to the City. Developer at its own expense shall replace any public facilities or utilities damaged during the Project. (a) Promptly after completion of the Project in accordance with this Agreement, Developer will provide the City with a certificate of substantial completion from Developer's architect and the City will furnish Developer with an appropriate Certificate of Completion as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of Developer to complete the Project. The furnishing by the City of the Certificate of Completion shall not constitute evidence of compliance with or • satisfaction of any obligation of Developer to any Mortgagee. (b) If the City shall refuse or fail to provide the Certificate of Completion, the City shall, within 15 days after the Developer provides the architect's certificate referenced in Section 43(a), provide Developer with a written statement specifying in what respects Developer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for Developer to obtain the Certificate of Completion. Section 5.1 Defense of Claims. Developer shall indemnify and hold harmless the City and their respective officers, employees and agents for any loss, damages and expenses (including attorneys' fees) in connection with any claims or proceedings arising from damages or injuries received or sustained by any person or property by reason of any actions or omissions of Developer or its contractors, agents, officers or employees or arising out of or relating to this Agreement or the transactions contemplated by this Agreement, other than claims or proceedings • arising from any negligent or unlawful acts or omissions of the City or its -7- contractors, agents, officers or employees, and for any loss, damages and expenses in connection with any claims or proceedings related to the payment of relocation benefits to any person as a result of any redevelopment of the Development Property by the Developer. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity may be sought against the Developer under this Section 5.1, such person will notify the Developer in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Developer shall assume the defense of such action (including the employment of counsel, who shall be counsel satisfactory to the City, and the payment of expenses) insofar as such action shall relate to any alleged liability in respect of which indemnity may be sought against the Developer. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Developer unless the employment of such counsel has been specifically authorized by the Developer. The Developer shall not be liable to indemnify any person for any settlement of any such action effected without its consent. The omission to notify the Developer as herein provided will not relieve it from any liability which it may have to any indemnified party pursuant hereto, otherwise than under this section. Section 5.2 Insurance. (a) The Developer shall keep and maintain the Development Property • and Improvements at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: (1) fire (2) extended coverage perils (3) vandalism and malicious mischief (4) boiler explosion (but only if steam boilers are present) (5) water damage (6) debris removal (7) collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ( "Full insurable value" shall include the actual replacement cost of the Improvements (exclusive of foundations and footings) without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect with respect to any portion of the Improvements to be renovated or remodeled as a part of the Project prior to the issuance by the City of a -8- • Completion Certificate under Section 4.3 hereof with respect thereto shall be maintained on an "all- risk' builder's risk basis during the course of construction. The policies required by this Section 5.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $25,000. (b) Policies of insurance required by this Section 5.2 shall assure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Improvements then in force complies with this Section 5.2. .. :!.1. • Section 6.1 Issuance of Bond. In order to reimburse the Developer for all or a portion of the costs paid by the Developer as to that portion of the Project identified on Schedule B hereto, the City agrees to issue the Bond to the Developer. The Bond shall be originally issued in the principal amount of $190,000. No interest shall accrue on the Bond until the later of (i) January 1, 199 or (ii) the second Janaury 1 following issuance by the City of the Certificate of Completion pursuant to Section 4.3 hereof; and thereafter interest shall accrue on the Bond at 9.50% per annum. The Developer acknowledges that no payments shall be due and owing on the Bond after February 1, 2022. lung M.7 MVO U-NUFFIRMUM-2-31 Section 7.1 Transfer of Property and Assignment. Developer has not made and will not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, mortgage, encumbrance, lien or other transfer, with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, other than the mortgage of the Development Property to secure the Developer's financing of the costs of the Project, without the prior written approval of the City. The City shall be entitled to • require as conditions to any such approval that: (i) the-proposed transferee have the -9- qualifications and financial responsibility, as reasonably determined by the City, • necessary and adequate to fulfill the obligations undertaken in this Agreement by Developer; (ii) the proposed transferee, by recordable instrument satisfactory to the City shall, for itself and its successors and assigns, assume all of the obligations of Developer under this Agreement. No transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies or controls provided in or resulting from this Agreement with respect to the Development Property and the completion of the Project that the City would have had, had there been no such transfer or change. There shall be submitted to the City for review all legal documents relating to the transfer. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Project, from any of its obligations with respect thereto. 7.2 Termination of Limitations on Transfer. The provisions of Section 7.1 shall terminate at such time as the Certificate of Completion has been issued by the City under Section 4.3 of this Agreement with respect to the Project. ARTICLE 8 • Events of Default Section 8.1 Events of Default. The following shall be "Events of Default' under this Agreement and the term 'Event of Default' shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events which occurs and continues for more than 30 days after notice by the City to Developer of such default (and the term "default' shall mean any event which would with the passage of time or giving of notice, or both, be an 'Event of Default' hereunder): (a) Failure of Developer to complete the Project as required hereunder. (b) Failure of Developer to furnish the Construction Plans as required hereunder. (c) Failure of Developer to observe and perform any other covenant, condition, obligation or agreement on his part to be observed or performed hereunder or under the Restrictions. -10- • • (e) If prior to the issuance of the Certificate of Completion under Section 4.3 hereof, Developer shall admit in writing his inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of his creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Development Property. Section 8.2 Remedies on Default. Whenever any Event of Default referred to in Section 8.1 occurs, the City may take any one or more of the following actions: (a) Suspend its performance under this Agreement until it receives assurances from Developer, deemed adequate by the City, that Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of Developer under this Agreement. (c) Withhold the Certificate of Completion. (d) Terminate the Bond. (e) Take whatever action at law or in equity may appear necessary or • desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. • Section 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.4. Waivers. All waivers by the City, shall be in writing. If any provision of this Agreement is breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 11- ARTICLE 9 Additional Provisions Section 9.1 Conflict of Interests; City Representatives Not Individually Liable. No member, official, employee, or consultant or employees of the consultants of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or the consultant's employees or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, consultant or the consultant's employees, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successor or on any obligations under the terms of this Agreement. Section 9.2 Equal Emploympni Qpportunity. Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. • Section 9.3 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that Developer, and such successors and assigns, shall devote the • Development Property to, and only to and in accordance with, the uses specified in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. Section 9.4 Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.5 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally as follows: (a) in the case of Developer, addressed to or delivered personally to Developer at . Hutchinson, Minnesota 55350; -12- • • (b) in the case of the City addressed or delivered personally to the City Administrator at City Center, 111 Hassan Street SE, Hutchinson, Minnesota 55350; • • or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other parties as provided in this Section. Section 9.6 Term of Agreement. This Agreement shall terminate upon the later to occur of (i) February 1, 2022, or (ii) the payment in full of the Bond; provided that notwithstanding the termination of this Agreement, the Restrictions shall remain in full force and effect until terminated in accordance with its terms. Section 9.7. Counterparts. This Agreement is executed in any number of counterparts, each of which shall constitute one and the same instrument. -13- IN WITNESS WHEREOF, the parties have caused this Agreement to be • duly executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA By Its Mayor VI Its City Administrator MORNINGSIDE DEVELOPMENT COMPANY QI • -14- • • STATE OF MINNESOTA ) SS COUNTY OF ) L� • The foregoing instrument was acknowledged before me this _ day of 1995, by the Mayor and the City Administrator of the City of Hutchinson, Minnesota, a Minnesota municipal corporation. -15- Notary Public STATE OF MINNESOTA COUNTY OF ) SS The foregoing instrument 1995, by Morningside Development Company, a Dorsey & Whitney P.L.L.P. (JPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 was acknowledged before me this _ day of the of -16- Notary Public .I L E 0 SCHEDULE A 0 0 DEVELOPMENT PROPERTY [Insert Legal Description] Wel I. SITEWORK • [Insert details] H. EXTERIOR • [Insert details] III. STRUCTURE • [Insert details] IV. INTERIORS • [Insert details] V. UTILITIES • [Insert details] SCHEDULE B PROJECT DESCRIPTION w CJ • • EXHIBIT A CERTIFICATE OF COMPLETION WHEREAS, Momingside Development Company ( "Owner') is the owner of the property in the County of McLeod and State of Minnesota described on Exhibit 1 attached hereto and made a part hereof ( "Property"); and WHEREAS, the Property is subject to the provisions of a certain Redevelopment Agreement (the "Agreement ") dated 1995 by and between Owner and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, Owner has fully and duly performed all of the covenants and conditions of Owner under the Agreement with respect to the completion of the Project (as defined in the Agreement); NOW, THEREFORE, it is hereby certified that all requirements of Owner under the Agreement with respect to the completion of the Project have been completed and duly and fully performed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Agreement as they relate to the completion of the Project. All other • covenants and conditions of the Agreement shall remain in effect and are not terminated hereby. Dated this _ day of 199_ CITY OF HUTCHINSON, MINNESOTA By Its Mayor M • Its City Administrator 1:61 STATE OF MINNESOTA ) • ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of . 199 by . Mayor and City Administrator of the City of Hutchinson, Minnesota. This Instrument Was Drafted By: DORSEY & WHITNEY P.L.L.P. (JPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 A -2 Notary Public • 0 • EXHIBIT B DECLARATION OF RESTRICTIVE COVENANTS This Declaration is made and executed as of the day of 1995 by Morningside Development Company, a ( "Declarant "). A. Declarant is fee owner of the following described premises located in the County of McLeod, State of Minnesota (the "Property"): [Insert legal description] B. The City of Hutchinson, Minnesota ( "City") has entered into a Development Agreement, dated . 1995 (the "Development Agreement "), with the Declarant. The Development Agreement provides for certain aid and assistance to be provided by the City in connection with the acquisition by the Declarant of the Property and the renovation by the Declarant of the building located thereon into an office /retail condominimum. • C. Section 3.2 of the Redevelopment Agreement provides for this Declaration to be executed by Declarant and for this Declaration to be filed of record in the real estate records. NOW, THEREFORE, in consideration of the foregoing and in compliance with its obligations under Section 3.2 of the Redevelopment Agreement, Declarant, for itself, and its successors and assigns, does hereby declare that the Property shall be owned, used, occupied, sold and conveyed subject to the following covenants and restrictions: 1. The Property shall not be exempt from real estate taxes notwithstanding the ownership or use of the Property. 2. The Property shall not be sold, transferred, conveyed or leased to any of the following parties: (a) An institution of purely public charity; (b) A church or ancillary tax exempt housing; • (c) A public hospital; M. (d) A public school district; • (e) An organization exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended; or (f) A Minnesota cooperative association organized under Minnesota Statutes, Section 308.05 and 308.18 for the purpose of complying with the provisions of Minnesota Statutes, Section 273.133, subdivision 3, or any other party that would cause the Property to be valued and assessed for real estate tax purposes at a lower percentage of its. market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. 3. The Property shall not be used for any of the following purposes: (a) The operation of a public charity; (b) A church or house of worship; (c) The operation of a public hospital; • (d) The operation of a public schoolhouse, academy, college, university, or seminary of learning; or (e) Any other use which would cause the Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. 4. The covenants and restrictions herein contained shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions herein contained shall inure only to the benefit of the City, and may be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. These covenants and restrictions shall be enforceable only by the City, and only the City shall have the right to sue for and obtain an injunction, B -2 • • • 11 prohibitive or mandatory, to prevent the breach of the covenants and restrictions herein contained, or to enforce the performance or observance thereof. 5. The covenants and restrictions herein contained shall remain in effect until February 1, 2025 and thereafter shall be null and void. 6. If any one or more of the covenants or restrictions contained in this Declaration are held to be invalid or enforceable, the same shall in no way affect any of the other provisions of this Declaration, which shall remain in full force and effect. MORNINGSIDE DEVELOPMENT COMPANY STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this 1995, by the of Morningside Development Company, a DRAFTED BY: Dorsey & Whitney P.L.L.P. (JPG) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402 UN Notary Public day of EXHIBIT C FORM OF BOND UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON, MINNESOTA LIMITED REVENUE TAXABLE TAX INCREMENT BOND (MORNINGSIDE DEVELOPMENT COMPANY) 0 THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to Morningside Development Company, a (the "Developer "), the principal amount specified above, together with interest hereon at the rate of 0% per annum until the later of (i) January 1, 1997; or (ii) the second Janaury 1 following the date of issuance of the Certificate of Completion pursuant to • Section 4.3 of the Development Agreement, dated 1995 (the "Development Agreement "), between the City and Developer; and thereafter at 9.50% per annum. The principal hereof is payable in lawful money of the United States of America, by check or draft of the City mailed to the Developer at the address specified by the Developer, on the dates and in the amounts hereafter specified. Any interest due on this Bond on any February 1 or August 1 which is not paid shall be added to the principal amount of the Bond on such date. This Bond is issued pursuant to a resolution adopted by the City Council of the City on 1995 (the "Resolution ") to reimburse the Developer for the payment of the capital costs of a Development Program (the "Development Program") for Development District No. 4 of the City to be undertaken in Tax Increment Financing District No. 10 (the "District') of the City and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 469.178 and Chapter 475. This Bond is payable solely from tax increments to be derived from the District (the "Tax Increment') which have been pledged to the payment of this Bond by the Resolution. On each August 1 and February 1 commencing August 1, 1997 through and including February 1, 2022, the City will apply all Available Tax Increment, as • C -1 hereinafter defined, to payment of this Bond. All such payments shall be applied first to accrued interest and then to the principal amount of this Bond. No further amounts shall be due and owing on this Bond after February 1, 2022, notwithstanding that the full principal amount of this Bond and accrued interest thereon shall not have been paid on such date, and any principal and interest remaining unpaid as of such date shall be considered forgiven by the Developer. "Available Tax Increment" is defined as 80% of the Tax Increment received by the City. This Bond shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof, including, without limitation, the City, shall be obligated to pay the principal of and interest on this Bond or other costs incident hereto except from Tax Increment pledged therefor by the Resolution, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof, including, without limitation, the City, is pledged to the payment of the principal of and interest on this Bond or other costs incident hereto. THE CM MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE • PRINCIPAL OF AND INTEREST ON THIS BOND. THIS BOND MAY NOT BE TRANSFERRED OR ASSIGNED, IN WHOLE OR IN PART, BY THE DEVELOPER WITHOUT THE PRIOR WRITTEN CONSENT OF THE CITY; PROVIDED THAT THE DEVELOPER MAY PLEDGE THIS BOND AND THE PAYMENTS HEREUNDER TO A LENDER FOR THE PROJECT, AS DEFINED IN THE DEVELOPMENT AGREEMENT, IF PRIOR WRITTEN NOTICE OF SUCH ASSIGNMENT IS GIVEN TO THE CITY AND THE LENDER DELIVERS TO THE CITY AN INSTRUMENT EXECUTED BY SUCH LENDER ACKNOWLEDGING THAT IT HAS REVIEWED THE TERMS OF THE BOND, THAT IT HAS SUFFICIENT KNOWLEDGE AND EXPERIENCE TO EVALUATE THE ABILITY OF PAYMENTS TO BE MADE BY THE CITY UNDER THIS BOND, THAT IT HAS ALL FINANCIAL AND OTHER INFORMATION IT HAS REQUESTED REGARDING THE DISTRICT AND THE TAX INCREMENT, THAT THE BOND IS PAYABLE SOLELY FROM AVAILABLE TAX INCREMENT AS PROVIDED HEREIN AND THAT THE CITY IS NOT MAKING ANY REPRESENTATIONS AND WARRANTIES AS TO THE SUFFICIENCY OF AVAILABLE TAX INCREMENT TO PAY THE BOND. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in • the issuance of this Bond in order to make it a valid and binding limited obligation C -2 of the City according to its terms have been done, do exist, have happened and have been performed in regular and due form as so required. 0 IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of its Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. Dated: 1995 City Administrator C -3 Mayor • C • MEMORANDUM • e 4 t, t. SUBJECT:Vehicle Purchase Recommendation • I am recommending that the City of Hutchinson enter into a contract with Boyer Ford Truck Inc., Minneapolis, MN, for the purchase of a new 1995 Model L8000 Ford Cab & Chassis Vehicle. The purchase of this vehicle would be in accordance with the State of Minnesota Cooperative Purchasing Venture (CPV) Program. Terms of the contract permit municipalities to "tag -on" to the State Contract and eliminate the need for the bidding process. The beat reason is to take advantage of the State's volume buying power, thereby saving a substantial amount of money, versus a single bid situation. Even though the CPV does not have a trade -in provision, Boyer Ford has indicated they will bid the trade -in separately. I am recommending that the City of Hutchinson purchase the 1995 Ford Cab & Chassis from Boyer Ford, per the State Contract price of $48,900.00. The vehicle being replaced is a 1981 GMC, 2 -1/2 Ton Dump with Snow Plow. This vehicle was included in the 1995 Budget for replacement. City Center I I I Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax(612)234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 Fax(612)234 -4240 - Printed on rerycfed paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -1464 9- t (612) 587 -22 Fax (612) 587-6427 0 0 0 RETAIL "ON SALE" btate of 'minne0ta, COUXTr OF, . .. . ....... . _Q.JjY ..... . ... ... .... To the... 1-1-1-CiLy .. CoUntil .. ...... .1 . of the .... ..— Qj.ly .............. .... oftutcbin&Q.n ................ ....... ........... - - ... I".... ....... I . - I I . State of Minnesota: hereby applies. for a Ueen`6 for the term Of.'rl$..�L_kT..MQ.ULIIS-...—.--r ......... /ram the..-- -4r."A -------- -- --- r....--'-..Aay Of' 191�—, to mu At Retail Only, wineAntoxicating Malt Liquors, as the same are defined by law, for ooneumption "Or' thou oartain premises Ln ihs. .......... ......... .... . -- - ' ' '---C'I—ty_ ........ .. —of .__Hutchinson described " foUc%m. to-wit; - Bavarian Hans 36 Main Street N. at which place said appUoant- -Owratea the bU9iAW and to that end repreamt--and state—as follows That Said of the United State*; of load moral okaraot;er and repute; and has......... attained the ale of ZI years; that.— sa I d ... --proPriew—W the meabliAment for which the license will be issued If this application is iranted. That no manwfacfurer of such intacuating malt liquor, has any mumunvhip, in whole or in part, in said business of said applicaM.—or any Interest thervin; That said appli6ant--make...-thij application pursuant and subject to all the laws of the Staid of Minnesota and the ordinances and rejolatione of applicable thereto, which are hereby nkids a pail hereof, and hereby apw--Io oba and obey IAP Rec om end approval. Driver's license I.D. requiredfor purchase. All liquor regulations apply. Steve MAdson Police Chief Each applicant further states that —he is not now the holder of, nor has —he made application for, nor does --he intend to make application for a Federal Retail Dealer's Special tax stamp for the sale of intoxicaiing liquor. P. 0. 9 9. C' J AN % 9 1995 RELEASE OF IN9CMTICN As an applicant for an On' -Sale Wine/Intoxicating Malt Liquor License with the City of Hutchinson, Minnesota, I am required to furnish information which that agency may use in determining my moral, physical, mental and financial qualifications. In this oomection, I hereby expressly authorise release of any and all information which you my have conceming me, including information of a confidential or privileged nature. I hereby release the agency with which I am seeking application for license, and any organization, company or person furnishing information to that agency as expressly authorized above, from any liability for damage which may result from furnishing the information requested. Applicant's Full Printed Name: Applicant's Address: Applicant's Birth Date: Applicant's Place of Birth: Applicant's Social security No: Applicant's Driver's License No: Date: June 27. 1995 far.... WM :.u. - . .: 361 6th. Avenue South Box r} (Street AFton Minnesota 12 (County) tate i p 0 1 March } ear Redwood Falls Minnesota (City) (State) 9 -c 0 C July 7, 1995 MEMO We are in the process of revising an escrow agreement with two firms doing work with the City of Hutchinson, The escrow agreements are different in the company's are wanting to supply bonds or notes rather than having a 5 16 retainage. Since this is a new type of agreement we are have revised the agreement once and still must have it reviewed by Barry. The material should be completed by Tuesday for City Council approval. I have included a draft of the proposed agreement for review and expect the contractors will not have any problem in accepting the necessary revisions. City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax(612)234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 Fax(612)234 -4240 - Printed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (612) 587 -2242 �� Fax (612) 587 -6427 • This Escrow Agreement and Assignment is made and entered into this _ day of 19 by and between City of Hutchinson, Hutchinson MN (hereinafter referred to as "Owner') and and American bank. 101 E. Fifth Street_ St. Paul. MN 55101 Attn: Corporate Trust Department (Bank) WITNESSETH; WHEREAS, Owner and Contractor have entered into a contract for construction of Hierhia= • Area TransRwjaation Services Facility (Hereinafter referred to as "Contract') WHEREAS, said contract provides that Owner may reserve as retainage an amount not to exceed five percent of progress payments due on the contract pursuant to the provisions of Minnesota Statutes, Section 15.71 through 15.74. WHEREAS, Minnesota Statutes, Section 15.73 (attached), provides that a contractor may deposit certain bonds or securities with Owner or in any bank or trust company to be held in lieu of the described cost retainage for the benefit of the public contracting agency: WHEREAS, Owner, Contractor, and Bank mutually desire to enter into this Escrow Agreement and Assignment (hereinafter referred to as "Agreement's in order to implement the statutory provisions; • 1 9 )a NOW, THEREFORE, in consideration of the foregoing and mutual covenants and promises contained herein, the parties agree as follows: • 1. Owner designates the Bank as its escrow agent and custodian to care for and service any securities or funds deposited by Contractor with Owner pursuant to Minnesota Statutes, Section 15.73. Contractor agrees to pay all escrow fees charged by the Bank for servicing this escrow account in accordance with Exhibit A attached hereto. 2. Whenever Contractor elects to substitute bonds or securities for all or any part of the amount which would be retained by Owner from partial payments pursuant to the Contract, it shall notify Owner of such election. The Contractor upon giving such notification shall transfer fiords in that amount to the Bank,at which time the Bank agrees to immediately purchase one or more of the type of securities set forth in Paragraph 4 of this Agreement in the name of Contractor in accordance with investment directions received from Contractor and place such securities in the Owner's escrow account. Contractor shall have the right to direct the Bank to change the investment of funds in a particular security to another security as long as all securities comply with the requirements of Paragraph 4 of this Agreement, as long as Contractor pays all handling and/or transfer fees related to investment changes. All such securities shall be held by Bank in the Owner's escrow account in the name of the Contractor in accordance with this Agreement, and shall be deemed to be in the possession of Owner for its benefit in lieu of retainages held by Owner under the Contract. • 3. The Bank shall report at least monthly to Contractor and Owner on the market value of the securities deposited with the Bank pursuant to this Agreement. If at any time the market value of the securities falls below the amount of retained funds substituted by bonds and securities, Contractor shall deposit with the Bank, in the Owners escrow account, securities in the name of the Contractor complying with Paragraph 4 of this Agreement in an amount sufficient to re -establish a total deposit of securities equal in value to the amount substituted. The Bank shall not be responsible for monitoring the market value of the securities except on a month -end basis. 4. For purposes of the Agreement only, the term "security" shall be of a character described in Minnesota Statutes, Section 15.73, Subd. 3, to wit, approved by the State Treasurer, including: (a) Bills, certificates, notes or bonds of the United States; (b) Other obligations of the United States or its agencies; (c) Obligations of any corporation wholly owned by the federal government; or (d) Indebtedness of the Federal National Mortgage Association; and • . 4. Cont. (e) Exclude all mortgage backed securities defined in MN States Section 475.66, Subd. 5 and (f) Further all such security shall bear the same fixed rate for the term of the security and mature within seven years from the date of this agreement. 5. All interest and income paid on any bonds or securities deposited pursuant to this Agreement shall be collected on a regular basis by the Bank and said amount shall be the property of and be paid, when and as collected, to Contractor, less reasonable custodial care or service costs charged for such service. 6. The Bank agrees to hold all purchased or deposited securities in escrow pursuant to this Agreement until such time Owner gives the Bank written authorization to deliver all or a portion of said securities to Contractor. The Bank shall deliver to Owner all or any portion of said securities; upon written request of Owner. 7. Owner and Contractor agree that this Agreement shall in no way infringe on or restrict the rights of Owner or Contractor under the Contract. 8. Any notice given by any of parties hereto shall be sufficient when made in writing and • delivered in person or sent by registered mail or certified mail, return receipt requested, to the address shown above or to such other address as the respective parties may hereafter designate. 9. The Bank is not a party to nor bound by an instrument other than this Agreement and shall not be required to take notice of any default or any other matter, not be bound by, nor be required to give any notice or demand, nor be required to take any action whatsoever except as herein expressly provided. 10. ASSIGNMENT - Contractor hereby assigns to Owner any and all rights, title and interest, without reservation whatsoever, which it might have in the bonds or securities which are now or may hereafter be deposited with the Bank pursuant to this Agreement 11. This Agreement shall be effective on the date it is executed by the parties hereto and shall remain in full force and effect until all of the bonds or securities deposited herein have been delivered to Owner or Contractor. 12. Contractor hereby agrees to indemnify and hold harmless the Bank from and against all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expenses, fees or charges of any character or nature, which the Bank may incur or with which the Bank may be threatened by reasons of its acting as escrow agent under this Agreement and in connection therewith to indemnify the Bank against any and all expenses, including attorney's fees and the cost of defending any action, suit or proceedings or resisting any claim. Notwithstanding the foregoing, it is specifically understood and agreed that in the event the Bank is found guilty of gross negligence or willful misconduct or malfeasance in the exercise of its responsibilities • hereunder, the indemnification provisions of this Agreement shall not apply. 13. The Bank shall otherwise not be liable for any mistakes of fact or for any acts of omissions of any kind unless caused by its willful misconduct or gross negligence. 14. The Bank may resign upon thirty (30) days advance written notice to the parties of this Agreement. If a successor escrow agent is not appointed within said thirty (30)day period, the Bank may petition any court of competent jurisdiction to name a successor. By: By: LE EXECUTED the day and year fast above written, OWNER CONTRACTOR BANK 0 • is 01 a July 3, 1995 The Honorable Marlin Torgerson Mayor of Hutchinson Hutchinson City Center 111 Hassan Street Southeast Hutchinson, MN 55350 -2522 Dear Mayor Torgerson: Office of Aeronautics Subject: State Aid for Airport Maintenance and Operation (612) 296 -8202 (612) 297 -1600 Fax: (612) 297 -5643 Fax: (612) 296 -1828 RECEIVED JUL 5 1995 CRY OF HUTCHINSON Enclosed are four copies of a proposed form of resolution and the agreement for requesting state aid for maintaining your airport during all seasons of the year up to June 30, 1997. For maintenance and operation during the year, the state will participate on a percentage basis, not to exceed the base amount of state aid as set forth in the agreement for the cost of snowplowing, mowing, fertilizing, re- seeding, rehabilitating runway lights, landing strip markers, and drainage systems, and general maintenance of the runways, taxiways, and apron areas. A supplement amount has been established for requesting reimbursement of expenses for airport maintenance training activities, including attendance at the Minnesota Aviation Symposium, by any individual having operational involvement with your airport. Reimbursement will be based on actual time and cost records kept by the municipality. Prior to any reimbursement being made by the state, the municipality must have a zoning authority established, and such authority must have adopted or be in the process of adopting an airport zoning ordinance in accordance with Minnesota Statutes 360.061 to 360.074. Reimbursement may be denied entirely or in -part if the airport is not properly maintained. If you desire state assistance and agree to comply with the requirements of the agreement, please complete and submit four copies of the agreement and four copies of the resolution to this office for the encumbrance of state funds. An approved copy will be returned for your records. It is particularly important during the winter and spring seasons, or when hazardous conditions may exist, to keep the air - traveling public informed of the status or condition of your airport. This is accomplished by notifying the nearest Federal Aviation Administration Flight Service Station and this department. Sincerely, Raymond J Ron Director Enclosure 222 East Plato Boulevard, St. Paul, Minnesota 55107 -1618 9 _ZE_, TYPICAL RESOLUTION Authorization to Execute Mn /DoT Agreement for Maintenance and Operation Be it resolved by the (City /County/ as follows: 1. That the State of Minnesota Agreement No. / #d 5 a "Agreement for State Aid for Airport Maintenance and ' Operation at the Hutchnson Municipal Airport" is hereby accepted. 2. That the Mayor and City Administrator (Mayor /Chairperson) (Clerk /Secretary) are hereby authorized and directed to execute said Agreement No. '7406,;l on behalf of the City of Hutchinson , and to execute and affix their signatures to any and all further required documents pertinent hereto, and all amendments thereof. I, of the do hereby certify that the foregoing' resolution is a true and exact copy (Corporate Seal as duly passed by the or Notary) of and recorded in the minutes of a meeting held on the day of , 19 , at which meeting there was present a quorum of the council. Signature: (Clerk or Equivalent) Agreement No. 7 `/b5 .-1. is AGREEMENT FOR STATE AID FOR AIRPORT MAINTENANCE AND OPERATION AT THE HUTCHINSON MUNICIPAL AIRPORT The State of Minnesota and City of Hutchinson agree as follows: (Name of Municipality) 1. The Municipality will keep at least one paved runway, associated taxiway, and apron area cleared of snow and ice for safe use of aircraft using wheels. The paved runway shall be kept clear for its full length and width, and snowbanks kept down so that aircraft wings will clear them, and runway and threshold lights will remain visible. 2. The Municipality will maintain the runways in good order by performing maintenance work, including, but not limited to, the following: a. Crack filling and patching of surfaced runways, taxiways, and aprons. b. Mowing grass on landing strips and around lights. The grass must be mowed at least 7 feet beyond the lights, and at no time may the grass exceed 6 inches in height on landing areas. C. Maintain beacon and runway lights or markers, and rehabilitate them when necessary. d. Fertilizing and seeding as necessary to prevent erosion. e. Maintain clearance in approach zones in conformance with • Chapter 8800.1200 of the Department of Transportation, Transportation Research and Investment Management (TRIM) Division, Office of Aeronautics, "Minnesota Rules." f. Replacing windsock when necessary. g. Maintain the drainage and fencing systems. The Municipality shall provide at least two yard -type lights in the building /aircraft tie down area and shall keep the area lighted from dusk to dawn. The Municipality shall also keep the airport property clear and free of debris. At airports where aviation fuel is dispensed, at least one 20- pound, dry- powder fire extinguisher shall be available in the vicinity of the fuel pump. 4. The airport must pass periodic inspections performed by a representative of the Office of Aeronautics for compliance with the rules of the Department of Transportation and for compliance with this Agreement. If the airport is not so maintained, then no reimbursement shall be made hereunder. 0 The State will reimburse the Municipality for 2/3 of the direct, actual maintenance and operation costs not reimbursed by any other source, not to exceed a base amount of $12,000 of State aid for each fiscal year. 9 -E The State will reimburse the Municipality for 2/3 of all expenses associated with registration and attendance to maintenance training functions, including the Minnesota Aviation Symposium, not to exceed a supplemental amount of $300 of State aid for each fiscal year. The Municipality shall submit a breakdown of its costs incurred hereunder to the Director, Office of Aeronautics, on forms supplied by him. In any and all events, costs must be submitted to the Director, Office of Aeronautics, on or before August 1 for each fiscal year ending June 30. No requests received after August 1 for the preceding fiscal year will be honored by the Director, Office of Aeronautics. The Director, Office of Aeronautics, reserves the right to reject items that may not be eligible for reimbursement, and reimbursement may be denied entirely if the airport is not properly maintained in accordance with this Agreement. The Municipality has established a zoning authority for the airport, and such authority has completed, or is in the process of and will complete, with due diligence, an airport zoning ordinance in accordance with Minnesota Statutes 360.061 to 360.074. 9. This Agreement is in effect for the fiscal years 1995 -1996 and 1996 -1997. It may be terminated at any time upon 30 days, written notice by either party. APPROVED: 1. MUNICIPALITY CITY OF HUTCHINSON 2. By: Title: Mayor By: Title: City Administrator DEPARTMENT OF TRANSPORTATION OFFICE OF AERONAUTICS By: Director Date: 3. APPROVED AS TO FORM AND EXECUT19 Assistant Attorney General 4. DEPARTMENT OF ADMINISTRATION By: Authorized Signature Date: 5. DEPARTMENT OF FINANCE By: Authorized Signature Date: 0 �J DAVID B. ARNOLD STEVEN A. ANDERSON G. BARRY ANDERSON* STEVEN S. HOGE LAURA K. FRETLANO DAVID A. BRUEGGEMANN PAUL D. DOVE** RICHARD G. McGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD K30 ADMITTED IN TEXAS A.H ncW YO.R ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 (612)567 -7575 FAX(612)587 -4096 Mr. Gary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 RESIDENT ATTORNEY G. BARRY ANDERSON July 6, 1995 Re: Airport Condemnation Issues - Svanda Our File No. 3244 -93069 Dear Gary: RECi�1titD 1'J L b 1995 C[TY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612)545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 1612) 389.2214 FAX (612) 389 -5506 Apparently Dagmar Runyon at the Minnesota Department of Transportation needs another Sponsor Certification on the Svanda property and I am enclosing herewith such a certification for approval by the City Council and execution by the Mayor. Upon execution, I would appreciate it if you would see that the original is duly delivered to Dagmar Runyon at the following address: Minnesota Department of Transportation 222 E. Plato Blvd. St. Paul, Mn. 55107 -1618 She has requested some other information from our files which we will be providing to her. I believe with her receipt of that information all activity relating to the airport project will have been completed. If you have any questions or problems in connection with the foregoing, you should certainly feel free to contact me. Thank you. Very truV o11rs, / P. L. L. P. G. Barry Anderson GBA:lm Enclosure CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Attachment 4 SPONSOR CERTIFICATION FOR REAL PROPERTY PCOUISITION 7 9 City of Hutchinson Hutchinson Municipal Airp. AIP 3- 27-0042 -01 Sponsor's Name Airport Project Number Parcel 9 (Svanda Project Descr 0.479 Arres Fee Section 509(d) of the Airport and Airway Improvement Act of 19x2, as amended (herein called the Act), authorizes the Secretary to require certification from sponsors that they will comply with statutory and administrative requirements. The following list of certified items includes major requirements for this aspect of project implementation. However, the list is not comprehensive, nor does it relieve sponsors from fully complying with all applicable statutory and administrative standards. Every certified item must be marked. Each certified item with a "no" response must be fully explained in an attachment to this certification. If the item is not applicable to this project, mark the item "N /A ". General requirements on real property acquisition and relocation assistance are in 49 CFR 24. The project Grant Agreement contains specific requirements and assurances on the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act). 1. Good and sufficient title (is) 4+jd&)W held on property in the project. The sponsor's attorney or other official (has prepared) (vgikkXRgg,Rgx3rJ and (has) )bgjgq. on file title evidence on the property. Yes x No N/A 2. If defects and /or encumbrances exist in the title which adversely impact the sponsor's intended use of property in the project, they (have been) PUW; extinguished, modified, or subordinated. Yes No N/A X 3. If property for airport development (is) 6k${x�l leased, the term is for 20 years or the useful life of the project. The lessor is a public agency and the lease contains no provisions which prevent full compliance with the grant agreement. Yes No N/A X 4. Property in the project (is) (*AtAl,�X)hW in conformance with the current Exhibit A (property map). The property map is based on deeds, title opinions, land surveys, the approved airport layout plan, and project documentation. Yes X No N/A S. For any acquisition of property interest in noise sensitive Page 1 of 3 s • 9 -F approach zones and related areas, property interest (was) (-ZJJX ice) obtained to ensure land is used for purposes compatible with noise levels associated with operation of the airport. Yes No N/A X 6. For any acquisition of property interest in runway protection zones and areas related to FAR Part 77 surfaces, property interest (was) (XIXXXI§N) obtained for the right of flight and right of ingress and egress to remove obstructions. Interest -(was) (WCp==4K) obtained for the right to restrict the establishnent of future obstructions. Yes X No N/A 7. Appraisals (include) (2XXXXgYEC) valuation data to estimate the current market value for the property interest acquired on each parcel and (were) (XM74XW prepared by qualified real estate appraisers hired by the sponsor. An opportunity (was) (oX3CpC1CXM) provided the property owner or representative to accompany appraisers during inspections. Yes x No N/A 8. Each appraisal (has been) (XXjp�) reviewed by a qualified review appraiser to recommend an amount for the offer of just compensation. The written appraisals and review appraisal are available to FAA for review. Yes _X No N/A 9. A written offer to acquire each parcel (was) ggo=)09) presented to the property owner for not less than the approved amount of just compensation. Yes X No N/A •10. Effort (was) (.) made to acquire each property through negotiation with no coercive action to induce agreement. If negotiation (was) Q )W successful, project files (contain) 6M&6kX9 4XkKj1O) supporting documents for settlements. Yes X No N/A 11. If a negotiated settlement is not reached, condemnation (was) (will be) initiated and a court deposit not less than the just compensation (was) (will be) made prior to possession of the property. Project files (contain) (will contain) supporting documents for awards. Yes No N/A X 12. If displacement of persons, businesses, farm operations, or nonprofit organizations is involved, a relocation assistance program (was) (will be) established. Displaced persons (received) (will receive) general information on the relocation program in writing, notice of relocation eligibility, and a 90- day notice to vacate. Yes No N/A X 13. Relocation assistance services, comparable replacement housing, and payment of necessary relocation expenses (were) (will be) provided within a reasonable time period for each Page 2 of 3 0 displaced occupant in accordance with the Uniform Act. Yes Na N/A X I certify that, for the project identified herein, the responses to the forgoing items are correct as marked, and that the attachments, if any, are correct and complete. Signed: Dated: Sponsor's Authorized Representative Typed Name and Title of Sponsor's Representative • Page 3 of 3 ., • r 1 LJ • DAVID B. ARNOLD' STEVEN A_ANDERSON G. BARRY ANDERSON* STEVEN S. HOGE LAURA K. FRETLAND DAVID A. BRUEGGEMANN PAUL D. DOVE" RICHARD G. McGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD ALSO Ao wirrco IN 111.8 LNO New ♦ORS ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 Mr. Gary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 Mr. John Rodeberg Director of Engineering Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 (612) 587 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON July 5, 1995 Re: Simonson Lumber /City of Hutchinson Our File No. 3244 -95079 Dear Gary and John: FOR YOUR INFORMATION OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (61 2) 545-1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (61 2) 389 -2 214 FAX 16121 369 -5506 RECEIVED JUL 5 1995 CITY OF HUTCHINSON I am enclosing herewith the latest draft of the proposed agreement between the City and Simonson's. Please review the same carefully. In the absence of legal descriptions, which I understand the surveying firm is still completing, it will not be possible to go forward with the ordinance authorizing a triangular piece of land. This agreement, as presently drafted, contemplates wrapping up not only the purchase price of real estate necessary for right of way, but also the transfer of the triangular piece of land to Simonson's as an entire package. The City Council will need to approve the formal transfer of the triangular piece of land because Council action this past council meeting was limited solely to approval of the $175,000 purchase price for the acquisition of right -of -way. While I recognize that the property has virtually no value and, in deed, may have negative value if soil correction problems are present, formal Council approval of the transfer will be required and that transfer can occur only by ordinance. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION to Mr. Gary D. Plotz Mr. John Rodeberg July 5, 1995 Page 2 I would suggest that the present form of the agreement as well as copies of my correspondence to Mr. Meyers as well as this letter be included in the next Council package on a "for your information" basis. Thank you. Best regards. Very truly yours, ARNOLgderson ON & VE, 7L.L.P. G. Ba GBA:lm M C� • 40 • r1 LJ • ARNOLD, ANDERSON.& DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON STEVEN S. HOGE LAURA K. FRETLAND DAVID A. BRUEGGEMANN PAUL D. DOVE — RICHARD G. MEGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD 'ALSO ADMITTED IN 'Ex" ANO NEw io Rw Mr. David J. Meyers ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON. MINNESOTA 55350 -2563 (612) 587 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON July 5, 1995 Rinke- Noonan Suite 700 Norwest Center Box 1497 St. Cloud, Mn. 56302 Re: Simonson Lumber /City of Hutchinson Our File No. 3244 -95079 Dear Dave: OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5681 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 is 12) 545 -9000 -' FAX(G12)545-1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX(612)389 -5506 I have your letter of June 27, 1995. I have consulted with the City Engineer regarding some of the minor points that need to be clarified and most of the changes that you have requested have been made. Enclosed please find a redlined copy, as well as a clean copy of the agreement between Simonson and the City of Hutchinson. I would add the following comments relative to the various paragraphs n the agreement: 1. Taxes and Assessments. The original agreement made payment of taxes and assessments relative to the property to be conveyed to the City the responsibility of Simonson. The agreement was silent on what happened to taxes and assessments relating to the property to be acquired by Simonson. I think your suggestion that we simply pro rate taxes relative to all parcels involved in this transaction make sense and I have incorporated that language in a separate paragraph. It should be noted F that the language in the agreement that makes it clear that your clients are not subject to assessment for the improvements to the roadway has been left unaltered. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED A5 A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. David J. Meyers July 5, 1995 Page 2 2. Date of Possession. I confess to being somewhat confused as to exactly what is going on relative to possession date. John Rodeberg advises me that it is his understanding that your client is anxious to start construction late summer or early fall. The changes that you suggested seem to imply that perhaps that construction is going to occur in 1996. Regardless, the dates suggested by you are a little late for the City. I have set forth a possession date for all of the various parcels of February 28 and a date for demolition and removal of material of March 31. I certainly have no objection if your client wants to communicate directly with the City Engineer regarding this subject. 3. Contingencies. I have included language that allows your client a contingency for securing the necessary governmental approvals which, after all, makes sense because this deal only works if they, are able to go forward with the proposed construction. Please note that • I have set a deadline for the contingency of August 15, which I anticipate to be the closing date. I assume the approval process is or will shortly be underway and should be resolved by mid August when presumably we would be in a position to close. It should also be noted that I have changed all of the other contingency dates to reflect August 15 as the projected date. 4. Soil Issues. My understanding from the City Engineer is that there is no contaminated soil on the site but there may be some questions about suitability for construction purposes. This latter issue is solely the responsibility of Simonson's. I have added language to the agreement to make this point clear. S. Electrical Transformer. The City will undertake responsibility for removal of the transformer. 6. Real Estate Descriptions. The survey work is still being completed and the three exhibits called for in the agreement will be attached as soon as that work is finished. The City Engineer is checking on the status of the survey work and I should be able to report more on that regard shortly. 7. Grant of Temporary Construction Easement The temporary • construction easement has been extended one year to • Mr. David J. Meyers July 5, 1995 Page 3 December 31, 1997. If you have any questions in connection with this agreement, please advise. Thank you. Best regards. Very truly yours, ARNOLD, ANDERSON & DOVE, P.L.L.P. G. Barry Anderson GBA:lm Enclosures • F • • BITE PURCHASE AGREEMENT THIS AGREEMENT, made this day of July, 1995, by and between Simonson Lumber of Hutchinson, Inc., ( "Simonson ") a Minnesota corporation and the City of Hutchinson, ( "Hutchinson ") a Minnesota municipal corporation. RECITALS: 1. Hutchinson desires to purchase a parcel of real estate described on Exhibit "1" hereto for the purpose of constructing, operating and maintaining a bridge across the south fork of the Crow River; and 2. Simonson has agreed to sell such real estate to Hutchinson pursuant to the terms and conditions of this agreement; and 3. Both parties are represented by counsel who have discussed . the sale and acquisition of this property with their respective clients and both parties enter into this Agreement with full knowledge of their rights and obligations under Minnesota law. NOR, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt, value and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Purchase of Real Estate. Hutchinson agrees to purchase, and Simonson agrees to sell a parcel of real estate described on Exhibit "1" in accordance with the terms and conditions of this agreement. Hutchinson shall cause, at Hutchinson's sole expense, a survey to be made of the real estate by a registered land • -1- surveyor, verifying the location, description and quantity of the • property, depicting the location of easements, 'public streets, encroachments and improvements on or abutting the property. 2. Purchase Price. The purchase price for the property shall be the sum of One Hundred Seventy -five Thousand and no /100 Dollars ($175,000.00), with the entire purchase price to be paid at closing. Hutchinson agrees to undertake a "friendly condemnation," Apft in which Simonson will cooperate according to the terms of this Agreement itobs� >s a1 •3�e zesponsxbl'e V 3. Triangle Parcel of Land. As and for additional consideration for Simonson, Hutchinson agrees to convey to Simonson a triangle portion of land legally described on attached Exhibit 2, is which is located adjacent to Simonson's property, on the southwest side. Hutchinson agrees to retain all liability for any pollution or contamination on this land incurred prior to the date hereof, to provide Simonson with all environmental reports and other information concerning any pollution or contamination and to cap off any monitoring or other wells located on this parcel of property, all at Hutchinson's cost. Hutchinson further agrees to indemnify and hold harmless Simonson for any and all liability that may now exist or hereafter arise in any respect, due to environmental contamination or pollution on this property prior to the date hereof. -2- • 4. Hutchinson's Contingencies. The obligations of Hutchinson hereunder are subject to the following contingencies, the satisfaction of each of which is a material condition precedent to the obligations of Hutchinson hereunder: A. An environmental survey and assessment, prepared and paid for by Hutchinson, must demonstrate that the Property is free of any and all hazardous or toxic substances, material or waste. The term "hazardous or toxic substances, material or waste" means any substance that is toxic, ignitable, explosive, reactive or corrosive or otherwise defined as hazardous and that is regulated by the City of Hutchinson, the County of McLeod, the State of Minnesota, or the United States government and that exceeds the levels of regulatory tolerance including, but not limited to substances regulated by or under the Federal Water Pollution Control Act (33 U.S.C. §1321 et sea.), the Federal Clean Air Act (42 U.S.C. §7401 et sea.), the Federal Resource Conservation and Recovery Act (42 U.S.C. §6901 et sea.), the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S. C. §9601 et sea.), the Toxic Substance Control Act (15 U.S. C. §2601 et sea.), or under the Solid Waste • disposal Act (42. U.S.C. §691 et sea.), petroleum or its derivatives and products, asbestos or polychlorinated biphenyls (PCBs) . Simonson hereby grants Hutchinson, its successors and assigns and their agents and employees, permission to enter upon the Property to conduct an environmental survey and assessment. B. The approval of the condition of title to the property by Hutchinson either in the form of a title insurance commitment or an attorney's title opinion, with the cost of all title insurance or attorney's fees to be borne by Hutchinson. Simonson shall provide an updated Abstract to the property with all of the usual and customary searches. C. The approval of this Agreement by the Hutchinson City Council. �� 3m�nsa�� rti =s�t�enc�es •' kt� .a��.�gatic'+� • o� szmcnsOis sx , ec try MAD Out' I MI' nesota" te�a�tme � rs sM Stss�Ucsjt <; vt g�aveza1 appoxaTs atu 0 -3- 6. Waiver of Contingencies. All contingencies of Hutchinson, except with respect to the title to the property (which shall not be waived or availed of until closing) , shall be waived or availed of by Hutchinson on or before X55. Any contingency not availed of by Hutchinson by that date shall be deemed waived. 7. Conveyance. The conveyance to Hutchinson shall be by good and sufficient warranty deed, free and clear of all liens and • encumbrances. Real estate tames and aVeeial asseesate2 is 81ka4-3- in "- respensibility Simonson shall demolish and remove all improvements to the site, including foundations, if any, but shall not be required to do any grading or to provide any fill. Hutchinson further agrees to fill and grade Simonson's property, as requested by Simonson, with soils reasonably comparable to the existing soils, all to Simonson's satisfaction. Simonson shall be given an opportunity to inspect fill to be deposited on site and if Simonson does not object to the deposit of said fill, this condition requiring Simonson's satisfaction shall be deemed waived. Hutchinson shall have no responsibility for finish grading or -4- 40 • providing any other grading services save and except the requirement that the fill be deposited and the site level. Simonson shall retain ownership of the salvage and sell or dispose of the salvage in any legal manner and shall retain any proceeds from the disposition thereof. 7A. Assessments $zt8 aXs. Hutchinson agrees that Simonson shall not be assessed for any of the improvement and /or work performed by Hutchinson in connection with the construction and /or change of title defects within fifteen (15) days after receipt of the title policy commitment or the attorney's title opinion which are not acceptable to Hutchinson or if the commitment does not contain the extended coverage endorsement, Simonson shall use its best efforts to cure such defects. If any such defects are not cured by the date of closing, Hutchinson may terminate this Agreement. In the event of such termination, all parties shall be relieved of all obligations hereunder. 9. Brokerage Matters. Hutchinson and Simonson each warrant • -5- and represent to each other that it has used no brokers in this • transaction and each agrees to save, indemnify and hold harmless the other from and against any and all claims, costs, expenses, finders fees, liabilities and obligations of every nature, kind and description from brokerage services from any person, firm corporation, partnership or other entity claiming entitlement to fees, commissions, compensation or expenses from brokerage services performed by or on behalf of Hutchinson or Simonson in connection with this transaction. 10. Closing Date. This transaction shall be closed on or before lute 1, 1995 i14X� X95 at the offices of the title insurance company providing title insurance hereunder, or such other place as the parties may agree in writing. 11. Default. If either party defaults under this Agreement, • the other party shall be entitled to all remedies available under law or equity, including but not limited to specific performance (if Simonson defaults) or an action for damages (if Hutchinson defaults). 12. waiver of Relocation Payments. Both parties have considered the right to relocation benefits under state and federal law in arriving at the negotiated price for the acquisition of the real estate and, in consideration of the purchase price set forth above, Simonson agrees to waive all relocation payments Simonson will be entitled to under either federal law or state law, or by virtue of any other authority, and further agrees to waive any and -6- • • all damages, benefits or payments that would otherwise accrue to Simonson in the context of a condemnation action or a threatened • condemnation action as provided by Chapter 117 of Minnesota Statutes or as provided by virtue of any other law. 13. Grant of Temporary Construction Easement. Simonson agrees to grant to Hutchinson a temporary construction easement for the purpose of facilitating the construction of the bridge and related improvements. Hutchinson agrees to restore the property to the approximate condition prevailing at the time of the execution of this Agreement unless otherwise agreed to, in writing, by the parties. The easement will expire, without further action by any party on December 31, 1996'7. The temporary construction easement will include the °- '_'_ewing deseri --'_ real property 4000 *"R" eg3xflcj aGaupiGy O/^...� YT�t'1� i"�iiJ�ca4� Fi:O f .1.D7Vk .��V�%7C1i�QR S�td��. ox for theca al4.rOen irs7ud#►gs tsd tuide�x p8r 7 0 his a±�reem�at, na':a�iar.asr 1. 0 -7- MOT, % 16. Miscellaneous. A. Execution by All Parties in Counterparts. This Agreement shall not become effective and binding until executed by all parties. This Agreement may be executed in two (2) or more counterparts, each which shall be deemed an original and all of which shall constitute a single instrument, and the signature of any party to any counterpart shall be deemed a signature to and may be appended to any other counterpart. B. Notice. All notices, demands and /or consents provided for in this Agreement shall be in writing and shall be deemed given when delivered to the parties hereto by hand or by United States registered or certified mail, return receipt requested, with postage prepaid. All such notices and communications shall be deemed to have been served on the date when mailed. All notices and communications shall be addressed to the parties hereto at the respective addresses set forth below: I. If to Hutchinson: City of Hutchinson Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 With a Copy to: G. Barry Anderson Arnold, Anderson & Dove, PLLP 101 Park Place Hutchinson, Mn. 55350 2. If to Simonson: Simonson Lumber of Hutchinson, Inc. 295 First Avenue N.E. Hutchinson, Mn. 55350 With a Copy to: David Meyers Rinke- Noonan • • -8- • Suite 700 Norwest Center P.O. Box 1497 St. Cloud, Mn. 56302 C. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. D. Cooperation. Each of the parties agrees to cooperate with the other in effecting the purposes of this Agreement. Without limiting the generality of the foregoing, the Simonson agrees to cooperate with Hutchinson in submitting applications for permits consistent with the terms of this Agreement. E. Assignment. Neither Hutchinson nor Simonson shall have the right to assign this Agreement or any of the rights or obligations hereunder without obtaining the prior written consent of the other party. • F. Successors and Assigns. This Agreement shall apply to, inure to the benefit of, and be binding upon and enforceable against the parties hereto and their respective successors and assigns. G. Paragraph Headings. The headings inserted at the beginning of each paragraph are for convenience of reference only and shall not limit or otherwise affect or be used in the construction of any of the terms or provisions hereof. H. Entire Agreement. This Agreement contains all of the agreements, terms, covenants, conditions, warranties, and representations made or entered into by and between the parties, and supersedes all prior discussions and agreements, whether 0 -9- written or oral, between the parties and constitutes the sole and entire agreement between the parties with respect thereto. This Agreement may not be modified or amended unless such modification or amendment is set forth in writing and executed by all parties hereto. 17. permits. Hutchinson agrees to give all reasonable assistance to Simonson in obtaining building permits, side plan approval and other approvals from all government entities to allow Simonson to reconstruct facilities on its property. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. SIMONSON LUMBER OF HUTCHINSON, INC. • By: Its: By: Its CITY OF HE By: Tts_ By: Its: -10- 0 STATE OF MINNESOTA) SS. COUNTY OF McLEOD ) On this day of July, 1995, before me a Notary Public, personally came before me the and the of Simonson Lumber of Hutchinson, Inc., a Minnesota corporation, to me known to be the persons who executed the foregoing instrument and acknowledged that they executed the foregoing instrument on behalf of said corporation. Notary Public STATE OF MINNESOTA) ) SS. COUNTY OF McLEOD ) On this day of July, 1995, before me a Notary Public, personally came before me Marlin Torgerson, the Mayor and Gary D. Plotz, City Administrator for the City of Hutchinson, a Minnesota municipal corporation, to be known to be the persons who executed the foregoing instrument and acknowledge that they executed the foregoing instrument on behalf of said municipal corporation. • Notary Public THIS INSTRUMENT WAS DRAFTED BY: G. Barry Anderson ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson, Mn. 55350 Telephone (612- 587 -7575) Attorney I.D. No. 196X • -11- 0 OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:3B Page 1 1980 TIDS • FIRST TRUST INTEREST $2,587.88 $2,587.88 1987 IMPROV. BDS AM.NATIONAL BANK PAYING AGENT FEES $302.75 $302.75 1989 IMPROV. BDS AM.NATIONAL BANK INTEREST $19,437.50 $19,437.50 1994 IMPRO CONST EARL ANDERSON ASSOC STREET SIGNS & POSTS $1,856.47 JUUL CONTRACTING CO EST #7 EST $15,754.67 M R SIGN STREET SIGNS $872.44 MID -MN HOT MIX INC EST #9 LET 9 $712.50 RANDY KRAMER EXCAVATING INC EST #5 LET 10 $5,519.79 $24,715.87 1995 IMPRO CONST BAUERLY BROS INC. EST #2 LET 7 $116,555.90 CONTRACTING CO EST #1 CITY OF HUTCHINSON $58,227.92 •JIIUL LANDWEHR CONSTRUCTION EST #1 SIIPPLIES $90,328.38 MID -MN HOT MIX INC EST #1 LET 9 $4,491.13 R.P.UTILITIES EST #1 LET 1 $38,908.21 WM MUELLER & SONS EST #2 LET 5 $65,322.00 $373,833.54 GARAGE CARQUEST AUTO PARTS SIIPPLIES $955.61 CENTRAL GARAGE MAY REPAIRS $147.79 CITY OF HUTCHINSON JULY MEDICAL $432.09 COAST TO COAST SIIPPLIES $1.77 CRYSTEEL DISTRIBUTING CROSS BOX $288.61 FITZLOFF HARDWARE HOSE PARTS $3,97 FORTIS BENEFITS JULY LTD $17.93 G & K SERVICES SHOP TOWELS $65.54 HUTCH COOP CENEX TIRES $440.96 HUTCHINSON WHOLESALE SUPPLIES $178.09 INK SPOTS FORMS $245.29 JOHNSON MOTOR CO RELAY $7.99 MANKATO MOBILE RADIO SQUAD INSTALLATION $489.41 MN MUTUAL LIFE JULY LIFE $6.72 MTI DIST.CO SOCKET ASM $608.93 PLOWMANS SERVICE TRANSMISSION $318.09 POSTAGE BY PHONE JUNE POSTAGE $9.48 • SCHMELING OIL CO FLUID $60.60 11 -A , OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:38 ------------------- - ------- -------- - ------ - -- STEWARD ENTERPRISES GREASE SWEENEY BROS TRACTOR PIN • WIGEN CHEVROLET CO WINDOW REGULATOR ENERGY LOAN FD MEYER, LORRAINE REIMBURSEMENT FIRE HALL DS AM.NATIONAL BANK INTEREST IHa:1:A:7c� yq.P Page 2 $204.48 $22.51 HAND $176.61 $4,682.47 $10.00 $10.00 $4,368.75 $4,368.75 3M CLUB PICNIC TABLES REFUND $55.00 A -1 BIKE SHOP CHECK OVER $19.95 ABDO ABDO 6 SICK AUDIT SERVICES $10,000.00 ADAMS, JUDY SWIM LESSONS REFUND $20.00 ANDERSON'S DECORATING CENTER PAINT $34.23 ARNOLD 6 MCDOWELL JUNE COMP $4,164.00 AUTOMATION SUPPLY CO DISKS $23.57 BACK DOOR 12 HUTCH MUGS $44.74 BENNETT OFFICE SUP. TONER $306.46 BIG BEAR SUPPLIES $1.48 •BREMIX CONCRETE CO BRINKMAN STUDIO CONCRETE FRAMES $581.60 $1,152.44 BUSINESSWARE SOLUTIONS 4MB MEMORY $2,641.20 CARNEYS TEMPRA PAINT $15.94 CARQUEST AUTO PARTS PARTS $3.14 CARR FLOWERS PLANT- ANGERMEYER $15.98 CASH WISE POP $457.65 CENTRAL GARAGE MAY REPAIRS $5,877.58 CITY OF HUTCHINSON JULY DENTAL $29,512.85 COAST TO COAST TAPE, PAINT $582.08 COMM TRANSPORTATION HANGAR PAYMENT $700.00 COUNTRY KITCHEN PRISONER MEALS $14.00 CROW RIVER COUNTRY CLUB SR.GOLF LESSONS $120.00 CROW RIVER GLASS TEMP GLASS $21.30 CULLIGAN WATER COND 2 BAGS SALT $12.99 DEPT NATURAL RESOURCES DNR REG FEES $476.00 DOSTAL, ROSA 2 HRS INTERPRETOR $67.50 EARL ANDERSON ASSOC SIGNS, POSTS $1,441.00 ERLANDSON, DAVID COLLAR BRASS $16.55 ESMET INC LARGE EM LCKHD $100.99 FARM a HOME DIST. CO VALVE, NIPPLE $162.04 FESTIVAL FOODS BOX LUNCHES $284.91 FITZLOFF HARDWARE CHISELS $29.12 FORCIER, GARY SWIM LESSONS REFUND $12.00 FORTIS BENEFITS JULY LTD $1,360.13 G & K SERVICES UNIFORMS $914.86 • G F NEMITZ SONS GLASS $2.83 OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:38 Page 3 - - ------ ------------------------------ GEYER RENTAL - ------------------- MOONWALK RENTAL ------------------------------- $185.00 - -- GLENCOE LIONS DUNK TANK RENTAL $100.00 • GREAT PLAINS SUPPLY PLYWOOD $83.02 GUARDIAN PEST CTL PEST SERVICE $21.57 GUTHERY, TOM MOTORCYCLE RENTAL JUNE $100.17 HAGER JEWELRY MEDALLIONS FOR WATER C $138.71 HARRIS CONTRACTING MAY PREV MTCE $355.00 HENRYS FOODS INC CANDY $1,356.07 HILLYARD FLOOR CARE / HUTCHINSON KITCHEN ROLL $436.76 HINCKLEY JOINT PLANNING BOARD SUBDIVISION ORDINANCE $13.00 HRA TRANSFER $35,159.00 HUTCH CAFE PRISONER MEALS $92.00 HUTCH COMM HOSPITAL TAXES REFUNDED $3,743.10 HUTCH CONVENTION 6 MAY LODGING TAX $2,948.40 HUTCH COOP CENEX JUNE FUEL $3,921.63 HUTCH FIRE 6 SAFETY INSEPCTIONS $119.41 HUT CHINSON LEADER PUBLISH $1,044.13 HUTCHINSON TEL CO JULY PHONE $5,032.59 HUT CHINSON WHOLESALE PARTS $35.39 ICE SKATING INSTITUTE OF AMERI NEWSLETTER AD $99.00 INK SPOTS SWIM TICKETS $124.59 JACK'S UNIFORMS & EQUIPMENT TRAFFIC WANDS $92,25 JACOBSEN, LYNN SWIM LESSONS REFUND $24.00 K MART GAL JUGS $27.63 KING, TOM UMPIRE $34.00 KIRCHOFF, RONALD MPPO BANQUET REIMB $300.00 KLOSS, TOM SAFETY BOOTS $49.99 •L 6 P SUPPLY CO LATT, JOE SPREADER SUMMER FOOTWEAR $110.00 $60.00 LAW ENFORCE EQUIP NAME BARS $284.19 LEHN, JEFF FIELD RESERVATION REFU $5.00 LENNES, RICHARD JUNE COMPENSATION $2,163.00 LINDER BUS COMPANY BUS -TWINS GAME $189.70 M R SIGN STREET SIGNS $632.28 MANKATO MOBILE RADIO SIREN REPAIR $1,488.80 MARCO BUS.PRODUCTS SCISSORS,PROTECTORS, E $90.90 MARKA, JAMES SAFETY GLASSES $54.06 MCGARVEY COFFEE INC COFFEE $212.85 MCLEOD COOP POWER ELECTRICITY $524.84 MEEKER SAND & GRAVEL SAND $728.84 METRO ATHLETIC SUPPLY PARACHUTE $162.87 MID -MN HOT MIX INC HOT MIX $3,276.47 MIDWEST CABLEVISION JULY CABLE SERVICE $4.96 MINNE- SEW -TA VAC KIRBY CORD $13.79 MINNESOTA BLUEPRINT REPAIR XEROX $455.83 MN ELEVATOR INC. ELEVATOR SERVICE $62.95 MN MUTUAL LIFE JULY LIFE $503.79 MN REC 6: PARK ASSC DISTRICT MEET FEES $422.00 MN SPORTS FEDERATION TOURNEY FEES $1,270.00 MOGARD, STEVE BRIEFCASE $59.96 MPPOA POCKET DIRECTORY $30.00 NO STATES SUPPLY INC BELTS $14.50 NYSCA COACHES CERTIFICATION $120.00 • OLSONS LOCKSMITH LOCKER LOCK $67.99 OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:38 Page 4 LOVERING- JOHNSON APPL Y2 $817,928.00 $817,928.00 HOUSING REDEV ANNETT 6, GENEVIEVE WINDOW WORK $457.79 THOMPSON 6, LORNA BATHROOM WORK $2,233.74 $2,691.53 LIQUOR STORE 1995 DIVISION II LEGION TOURNA HALF PAGE AD $100.00 •AM.LINEN SUPPLY CO JUNE DELIVERY $136.91 ------------------------------------------------------------------------------------------------- PADGETT-THOMPSON C.JONES $139.00 PIONEERLAND LIBRARY SYSTEM 3RD QUARTER $17,876.50 •PITNEY BOWES CREDIT CORP MAILING MACHINE $966.38 PITNEY BOWES INC POSTAGE METER RENTAL $310.46 PLANTS BEAUTIFUL NURSERY 11 SPRUCE, 3 PINE $1,183.75 PLATO OFFSALE 4 CASES BOTTLES $10.00 PLOTZ, GARY D. LUNCHEON MEETING $34.86 POSTAGE BY PHONE JUNE POSTAGE $932.32 PRO COMMUNIQUE JUNE 95 ADVOCATE $200.00 QUADE ELECTRIC SIREN REPAIR $91.54 QUADES SPORT SHOP LANYARD, COUGAR BRASS $34.93 RAY ALLEN MANUFACTURING CO PINCH HANDLE $61.70 RECREONICS SUPERBOARDS, BUOYS, ET $233.46 RIDER BENNETT EGAN & ARUNDEL PROF SERVICES $74.86 SCW4ELING OIL CO FUEL OIL $917.36 SEWING BASKET CAMO UNIFORM $27.00 SHOPKO CABS $97.31 SHOUTZ, MARK TRAVEL -USPCA TRIALS $350.00 SIMONSON LUMBER CO PLYWOOD $29.29 STATE TREASURER 2ND QTR SURCHARGE $2,561.12 STREICH, KIM SWIM LESSONS REFUND $10.00 STREICHERS CLIPBOARDS, POLISH $80.78 TELECKY, DAVE SAFETY GLASSES $75.48 TEPLY, TODD BEACON $64.20 THOMA, DENISE PLAYGROUND SUPPLIES $14.21 TRAFFIC INSTITUTE 1 GUEST LUNCHEON $15.00 TRIPLE G DISTRIBUTING INC POP $111.80 • TWO WAY COMM INC UHL CO. BATTERY SPRING SERVICE $81.16 $800.00 UNITED BLDG CENTERS LAP SIDING $46.15 UNITED LABORATORIES PINK MARVEL $211.19 VIKING COCA COLA POP $145.00 W. M. MONTGOMERY PROF SERVICES $70.00 WAL -MART EUREKA BAGS $178.09 WILSONS NORTH WEST NURSERY INC WILLOW- MEMORIAL TREE $148.04 WINTERS, A. JOSEPHINE HUTCHMOBILE TICKETS RE $28.00 XEROX JUNE METER USAGE $155.00 $156,258.03 HAT -FAC. CONST. LOVERING- JOHNSON APPL Y2 $817,928.00 $817,928.00 HOUSING REDEV ANNETT 6, GENEVIEVE WINDOW WORK $457.79 THOMPSON 6, LORNA BATHROOM WORK $2,233.74 $2,691.53 LIQUOR STORE 1995 DIVISION II LEGION TOURNA HALF PAGE AD $100.00 •AM.LINEN SUPPLY CO JUNE DELIVERY $136.91 i OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:38 Page 5 - - ------------------------------- AMERICAN LEGION POST 21 - ------------------------------------ ADV BASEBALL TOURN $52.50 CDI OFFICE PRODUCTS LTD OPE SUPPLIES $316.58 •CHUCK'S REF REP E MAINT $62.37 CITY OF HUTCHINSON JULY DENTAL $1,505.18 COAST TO COAST SURGE STRIP $20.64 DIAMOND CLEAR ICE ICE FOR JUNE $368.60 ED PHILLIPS & SONS CO. LIQUOR PURCHASE $1,191.39 ELECTRO WATCHMAN QURT CHARGES $290.75 FESTIVAL FOODS SUPPLIES $29.72 FORTIS BENEFITS JULY LTD $31.08 FRIENDLY BEVERAGE CO BEER PUR JUNE $3,264.55 HENRYS FOODS INC BAGS, ETC $2,773.32 HERMEL WHOLESALE JUNE SUPPLIES $676.78 HUTCHINSON LEADER ADVERTISING $570.18 HUTCHINSON TEL CO JULY PHONE $101.51 JOHNSON BROTHERS LIQUOR CO. LIQUOR $2,448.65 JORDON BEVERAGE INC. BEER PUR JUNE $1,587.20 K D U Z JUNE ADV $80.75 KARP RADIO `E ADS $14.00 KKJR JUNE ADV $64.60 LENNEMAN BEVERAGE DIST. INC CASE DEPOSITS $11,013.95 LOCHER BROS INC COST OF MIX & SOFT DRI $23,018.03 MN MUTUAL LIFE JULY LIFE $11.55 PAUSTIS 6 SONS BEER PUR JUNE $437.46 POSTAGE BY PHONE JUNE POSTAGE $21.76 QUADE ELECTRIC INSTALL NEW BREAKER $179.45 RIDER BENNETT EGAN 6 ARUNDEL PROF SERVICES $875.49 •SPRENGLER TRUCKING STANDARD PRINTING JUNE FREIGHT 3 TAPE CASSETTES $1,286.79 $102.11 TAI CO WATER COND BOTTLE WATER $21.08 TRIPLE G DISTRIBUTING INC CASE DEPOSITS $29,222.75 VIKING COCA COLA POP $856.35 $82,734.03 PAYROLL FUND ASTNA VARIABLE LIFE ASS. CO. EMPLOYEE CONTRIB 7 -1 $655.00 GREAT WEST LIFE INS. CO. EMPLOYEE CONTRIB 7 -1 $100.00 H.R.L.A.P.R. EMPLOYEE CONTRIB 7 -1 $147.57 ICMA RETIREMENT TRUST EMPLOYEE CONTRIB 7 -1 $1,642.45 PERA LIFE INS CO. EMPLOYEE CONTRIB 7 -11 $136.50 PERA- D.C.P. EMPLOYEE CONTRIB -7 -1 $52.02 PRUDENTIAL EMPLOYEE CONTRIB 7 -1 $155.00 PRUDENTIAL MUTUAL FUNDS EMPLOYEE CONTRIB 7 -1 $318.46 PUBLIC EMPLOYEES EMPLOYEE CONTRIB 7 -1 $13,355.02 TEMPLETON INC EMPLOYEE CONTRIB 7 -1 $448.46 WADELL & REED EMPLOYEE CONTRIB 7 -1 $150.00 WITHHOLDING TAX ACCT EMPLOYEE CONTRIB 7 -1 $34,813.77 $51,974.25 RURAL F. D. HUTCH COOP CENEX JUNE FUEL $56.08 • $56.08 OPEN -HOLD COUNCIL REPORT Tue Jul 11 1995 10:31:38 Page 6 ----------- — --------------- — --------- ------------------------------- — ------------------------- WATER /SEWER FUND • AAGARD WEST ALLEN OFFICE PROD AM.NATIONAL BANK AQUARIA PETS BUSINESSWARE SOLUTIONS CASH WISE CEI CENTRAL GARAGE CITY OF HUTCHINSON r COAST TO COAST FARM 6 HOME DIST. CO FEED RITE CONTROLS FESTIVAL FOODS FITZLOFF HARDWARE FORTIS BENEFITS G 6 K SERVICES HACH COMPANY HUTCH COOP CENEX HUTCHINSON TEL CO HUTCHINSON WHOLESALE KELLY INN L & P SUPPLY CO LAMPLIGHTER II MCNELLY GROUP MID-MN HOT MIX INC • MN MUTUAL LIFE MVTL LABORATORIES MWOA POSTAGE BY PHONE QUADE ELECTRIC RADISSON SUITE HOTEL SANIFILL INC STANDARD PRINTING STRINGER BUS SYSTEMS WESTERN AUTO • JUNE PICKUP $24,403.79 LABELS, FILES,ETC $77.53 PAYING AGENT FEES $863.05 PUMP, TANK, ETC $47.14 4MB MEMORY $465.42 SUPPLIES $10.76 FREIGHT $15.09 MAY REPAIRS $246.35 JULY MEDICAL $4,266.71 GEAR PULL $528.90 TAN TAPE $2.01 INHIBITOR $4,920.73 WATER $6.23 ELBOWS $14.89 JULY LTD $186.91 UNIFORMS $365.70 REAGENT SET $31.56 UREA, POTASH, ETC $711.68 JULY PHONE $664.66 STARTERS $322.48 LODGING- M.GRAHAM $130.00 BLADE $84.89 RUSSIAN VISIT $31.39 JUNE LEASE PAYMENT $5,325.00 HOT MIX $782.76 JULY LIFE $69.30 PLATE COUNT $78.00 REG- M.GRAHAM $300.00 JUNE POSTAGE $211.44 BULBS $17.58 LODGING- D.JOHNSON $148.00 LOADS JUNE 19 -23 $1,968.57 LABELS $65.52 MTCE CONTRACT $249.00 RACKS, ORGANIZERS, LIN $847.97 $48,461.01 $1,592,041.69 IMMEDIATE PAY COUNCIL REPORT Tue Jul 11 1995 10:30:55 Page 1 ------------- ------------------------------- — ---- ------ ---------------------------------------- CENTRAL GARAGE MOTOR VEHICLE SALES TAX TITLE & PLAT $1,029.40 PLOWMANS 1995 FORD F250 $15,260.00 $16,289.40 GENERAL FUND DEPT NATURAL RESOURCES ECKSTEIN, DAVE MULARONI, MIKE LIQUOR STORE CITY OF HUTCHINSON COMMUNITY FIRST STATE BANK ED PHILLIPS & SONS CO. GRIGGS COOPER 6 CO JOHNSON BROTHERS LIQUOR CO QUALITY WINE & SPIRITS CO. WATER /SEWER FUND WEF • .� . N• rte• • � i • DNR FEES REM $682.00 TRANSPLATING TREES $760.00 ARCH SERVICE $2,500.00 $3,942.00 LOTTERY SALES $26.00 COOLERS $280.00 BEER PUR JUNE $4,921.04 WINE PUR JUNE $11,984.45 WINE FUR JUNE $9,463.33 LIQ CREDIT $1,179.99 $27,854.81 REG R DEVRIES $240.00 $240.00 $48,326.21 EMPIO= WITHHOLDING $6,778.23 ARNOLD, ANDERSON & DOVE Ms. Dagmar Runyon Minnesota Department of Transportation 222 E. Plato Blvd. St. Paul, Mn. 55107 -1618 RECi2i !ED JUL 5 1995 CITY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 Re: Hutchinson Airport Condemnation /Svanda Parcel Our File No. 3244 -93069 Dear Dagmar: FOR YOUR INFORMATION • I am enclosing herewith a copy of the January 7, 1994 Order along with a copy of my correspondence to Leland Frankman dated June 27, 1994 along with a copy of the green card reflecting receipt of the funds. We will be recording the certified copy of the Order against the Svanda property along with an Affidavit indicating that payment was duly transmitted pursuant to Order. This should be sufficient to pass title. Do you need a final title opinion? If so, I would be happy to provide one. • Please advise at your convenience. Best regards. Very truly.] "you)rs, ARNOLD G. Ba1(ry Anderson GBA:lm Enclosure CC Gary Plotz Ken Merrill & DOVE, P.L.L.P. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION PROFESSIONAL LIMITED LIABILITY PARTNERSHIP • ATTORNEYS AT LAW 101 PARK PLACE DAVID B. ARNOLD' HUTCHINSON, MINNESOTA 55350-2563 STEVEN A. ANDERSON G. BARRY ANDERSON* (612)567-7575 STEVEN S. HOGE FAX (612) 587 -4096 LAURA K. FRETLAND DAVID A. BRUEGGEMANN RESIDENT ATTORNEY PAUL D. DOVE* O. BARRY ANDERSON RICHARD G. MtGEE CATHRYN O. REHER GINA M. BRANDT BRETT D. ARNOLD 'ALSO ADMITTED IN TEXAS AND NEW YORK July 6, 1995 Ms. Dagmar Runyon Minnesota Department of Transportation 222 E. Plato Blvd. St. Paul, Mn. 55107 -1618 RECi2i !ED JUL 5 1995 CITY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 Re: Hutchinson Airport Condemnation /Svanda Parcel Our File No. 3244 -93069 Dear Dagmar: FOR YOUR INFORMATION • I am enclosing herewith a copy of the January 7, 1994 Order along with a copy of my correspondence to Leland Frankman dated June 27, 1994 along with a copy of the green card reflecting receipt of the funds. We will be recording the certified copy of the Order against the Svanda property along with an Affidavit indicating that payment was duly transmitted pursuant to Order. This should be sufficient to pass title. Do you need a final title opinion? If so, I would be happy to provide one. • Please advise at your convenience. Best regards. Very truly.] "you)rs, ARNOLD G. Ba1(ry Anderson GBA:lm Enclosure CC Gary Plotz Ken Merrill & DOVE, P.L.L.P. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION r. 0 ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON* STEVEN S. HOGE LAURA K. FRETLAND DAVID A. BRUEGGEMANN PAUL D.DOVE- RICHARD G. McGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD nIf....1EO IN TfX .NO MCw YORK Mr. David J. Meyers ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON. MINNESOTA 55350-2563 (612) 587 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON July 6, 1995 Rinke- Noonan Suite 700 Norwest Center Box 1497 St. Cloud, Mn. 56302 Re: Simonson Lumber /City of Hutchinson Our File No. 3244 -95079 RECEIVED JUL 5 1995 CITY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5861 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612)389.2214 FAX (461 2) 3895506 FOR YOUR INFORMATIO'r • Dear Dave: I believe I sent you a draft agreement yesterday regarding the above referenced project. This morning I met with Ken Merrill, Gary Plotz, John Rodeberg and Dick Lennes regarding various issues associated with this project and as part of that discussion, I wanted to bring several matters to your attention. In no particular order they are as follows: 1 UtilitY Relocation. There are two Agreements covering this project. The Development Agreement prepared by Jerry Gilligan correctly references the requirement that your client pay for the expense of transformer and utility relocation. I understand the transformer relocation cost is around $3500. However, this is an eligible cost from a tax increment standpoint. The Agreement that we drafted references this as a City cost and that is not correct. The final draft will need to be amended to reflect this cost as properly in the domain of Simonson's. 2. Plans and Specifications In order to process all of the necessary permits and documents, plans and specifications from your client will be necessary. I understand that John Rodeberg and the architect had a very productive meeting and it appears that matters are moving forward in this regard. However, it is important that plans and specifications be received by the end of July because it will take the City three to four weeks to review them. Among other things, if CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION **CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. David J. Meyers July 6, 1995 Page 2 the plans and specifications reveal the need for a conditional use permit or other planning commission action, in order to make the packet deadline, that information is needed by the end of July. 3. Closing Date. The document that I sent to you yesterday projects an August 15 closing date. I can already see that we are not going to be able to meet that date for several reasons, not the least of which is the issues regarding the plans and specifications. Please note under the Development Agreement prepared by Jerry Gilligan's office a timeline and building schedule is also required. 4. Demolition Date. The City recognizes the footings cannot come out of the ground until the end of March. However, from the standpoint of the demolition of the building in the right of way (as opposed to demolition work involved in the tax increment aspects of this project), the City would prefer to have that demolition completed around December 31, 1995, which is the date used in the tax increment Development Agreement. Please confer with your clients to see if that is a possibility. 5. State Transportation Aid Although this issue does not affect your client, my client is concerned about whether or not the State will require the separation of the acquisition of the triangular piece of land from the acquisition of the right of way, temporary construction easement etc. The best guess at this point is that no separation will be required and we will be able to use the single agreement that you and I have been discussing over the course of the last few months. I did suggest that it might make sense on the deed of conveyance to provide for state deed stamp tax in the amount appropriate to a $175,000 purchase price insofar as the right of way is concerned so the State is clear on that issue. From our perspective, it makes very little difference how the purchase price is divided up and I don't know that it makes any difference to your client from a tax standpoint. If it does, we should discuss this issue, but I really think it is more a matter of handling paperwork than any kind of substantive issue. 6. Relocation Issues. The State may require us to fill out certain relocation forms and I am going to have a consultant that the City uses occasionally for these kinds of projects make a quick trip to the site and advise as to whether or not 1] 0 0 Mr. David J. Meyers July 6, 1995 Page 3 the City should undertake the preparation of these forms. This is not an issue that is of any concern to your client, as we discussed previously, but I simply wanted to mention it so that when he contacts Simonson's for permission to walk on the property they know what is taking place. 7. Development Agreement - Tax Increment Issues. A Development Agreement for tax increment purposes includes some language dealing with bonds which will obviously need to be removed and there are some other changes as well. I will be in touch with you regarding these housekeeping matters. S. Demolition Issues. Lennes suggested, and I think it makes sense, that the Site Purchase Agreement should specifically reference the property to be demolished so that we are not confusing any outside parties. For example, since both the Site Purchase Agreement and the Development Agreement for tax increment purposes referenced demolition issues, we want to make certain that an auditor knows that we are talking about two different sets of demolition projects. Accordingly, I will insert in the final draft of the Site Purchase Agreement a reference to the fact that the demolition issues covered by this Agreement concern the so- called east structure and office area unless you feel they should be described in some other fashion. I believe that is the extent of my comments at the present time. If you have any questions regarding these matters, please contact me. Thank you. Best regards. Very truly] ARNOLD, G. Ba34:jA0Anderson GBA:lm CC John Rodeberg Gary Plota Ken Merrill Dick Lennes 6 DOVE, P.L.L.P. ARNOLD, ANDERSON & DOVE RECEIVED JUL 5 1995 CrrY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (61 2) 545-1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 161 21 3642214 FAX (612) 369 -5506 Mr. Kirk Schnitker FOR YOUR INFORMATION Schnitker & Associates, P.A. 2300 Central Avenue N.E. Minneapolis, Mn. 55418 Re: Simonson's Lumber Redevelopment/ City of Hutchinson Our File No. 3244 -95079 Dear Kirk: You and I have traded phone messages over the course of the last couple of weeks but without success. I write to you today regarding the Simonson's redevelopment project that the City of Hutchinson now has underway. Although Simonson's has agreed to a price that includes relocation costs, the thought has occurred to the City that perhaps it would be helpful to have some idea of what those costs are and if they are not terribly extensive, perhaps we would go to the trouble of securing a formal waiver from Simonson's. My understanding is that you provide these kinds of services and have done so for the HRA in the past. I would appreciate it if you would contact either John Rodeberg or myself to discuss arrangements for conducting an inspection of the property and preparing as quickly and as inexpensively as possible, an assessment of the relocation exposure relative to this project. Thank you. Very trul ARNOLD G. B A GBA: m Best regards. son & DOVE, P.L.L.P. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ��CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE DAVID B. ARNOLD' HUTCHINSO N, MINNESOTA 55350 -2563 STEVEN A. ANDERSON G. BARRY ANDERSON* (612)587 -7575 STEVEN S. HOGE FAX (612) 587 -4096 LAURA K. FRETLAND DAVID A. BRUEGGEMANN RESIDENT ATTORNEY PAUL D. DOVE ** G. BARRY ANDERSON RICHARD G. MCGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD ALSO .ORiTTEO I. 1w1... NEW To.K July 6, 1995 RECEIVED JUL 5 1995 CrrY OF HUTCHINSON OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (61 2) 545-1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 161 21 3642214 FAX (612) 369 -5506 Mr. Kirk Schnitker FOR YOUR INFORMATION Schnitker & Associates, P.A. 2300 Central Avenue N.E. Minneapolis, Mn. 55418 Re: Simonson's Lumber Redevelopment/ City of Hutchinson Our File No. 3244 -95079 Dear Kirk: You and I have traded phone messages over the course of the last couple of weeks but without success. I write to you today regarding the Simonson's redevelopment project that the City of Hutchinson now has underway. Although Simonson's has agreed to a price that includes relocation costs, the thought has occurred to the City that perhaps it would be helpful to have some idea of what those costs are and if they are not terribly extensive, perhaps we would go to the trouble of securing a formal waiver from Simonson's. My understanding is that you provide these kinds of services and have done so for the HRA in the past. I would appreciate it if you would contact either John Rodeberg or myself to discuss arrangements for conducting an inspection of the property and preparing as quickly and as inexpensively as possible, an assessment of the relocation exposure relative to this project. Thank you. Very trul ARNOLD G. B A GBA: m Best regards. son & DOVE, P.L.L.P. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ��CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' STEVEN S. HOGE LAURA K. FRETLAND DAVID A. SRUEGGEMANN PAUL D. DOVE'S RICHARD G. McGEE CATHRYN D. REHER GINA M. BRANDT BRETT D. ARNOLD 'ALSO AO -7TEO IN TEXAS AND NLW YOKI[ ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON. MINNESOTA 55350 -2563 Mr. Jerry Gilligan Dorsey & Whitney, PLLP 220 south Sixth Street Minneapolis, Mn. 55402 (612) 587 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON July 6, 1995 Re: Simonson's Lumber Project Our File No. 3244 -95079 Dear Jerry: OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545-1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612)389 -2214 FAX (612) 3895506 By the time this correspondence catches up with you, I believe we will have had a chance to discuss matters. The tax increment Development Agreement was reviewed by Dick Lennes, Ken Merrill, Gary Plotz, John Rodeberg and, to a limited extent, myself. There is language in the agreement dealing with bonds and since this is a pay as you go arrangement, that language should be deleted. Additionally, a question was raised about the covenants found at the end of the agreement which make reference to a deadline of the year 2025. The question arose whether some other deadline would be appropriate or indeed whether covenants are required at all since this is a pay as you go arrangement. Page 7 of the Development Agreement references that street and utility relocations are to be at the expense of the developer. Actually, the City has agreed not to access Simonson's for street relocation not only because it is part of the overall deal, but also because there is arguably no benefit. Obviously, this language will need to be changed as well. A question was also raised regarding whether or not parking lot work would be eligible for tax increment and it is my understanding that it probably is eligible. In any event, it does not appear that Simonson's will have any trouble reaching the $75,000 figure set in the Agreement. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION E 9 Mr. Jerry Gilligan July 6, 1995 Page 2 I hope by the time this correspondence reaches you we will have had a chance to visit about some of these issues. Thank you. Best regards. Very truly yours, ARNOLD, 400ERS N & DOVE, P.L.L.P. G. BatTy/AAder9on GBA:Im CC Ken Merrill Gary Plotz John Rodeberg Dick Lennes FOR YOUR INFORMATION Administrative Office • ohn M. Houlahan, Director PILIBMRY ioneedand 10 Fifth Street SW SYSTEM O. Box 327 Willmar, Minnesota 56201 -0327 Phone: (612) 235 -6106 Fax: (612) 235 -3169 wilmarpi@forgus.cfa.org Date: June 23, 1995 To: Cities and counties's mayors, council members, commissioners, administrators & coordinators From: John Houlahan, Director, Pioneerland Library System Re: Agreement amendments and changes & library technology /telecommunication grants Because of editorial errors, legal opinions, and need to clarify issues such as ownership of assets, Pioneerland Library System Agreement requires a number of changes and new amendments. One of the major changes is the elimination of the provision for short term borrowing. In the opinions of two legal firms, Pioneerland Library System lacks statutory authority for short term borrowing. There are still some unanswered questions concerning long term borrowing which are fisted under issue 42 of the enclosed handout, Other agreement issues. Whatever the answers maybe for long term borrowing, no signatory would be obligated for any debt • without its consent. Enclosed, for your consideration, are (four) pages of suggested changes and I (one) page of agreement issues. They are arranged with current agreement language fast and new language follows with changes highlighted. There are also three new sections: IV.I.C, IV.2.A & V 11. Pioneerland Library System Board will wait for your comments to the enclosed ideas before drafting new amendments and seeking your final approval. Please forward by September 1, 1995 your comments or questions concerning the enclosed information to John Houlahan at the above address. Also in this mailing is information on two new library technology and telecommunication grant programs passed in the last legislative session. Both of these programs require local city and county match. To qualify in 1996 for either or both programs, cities and counties need to levy .l percent of adjusted net tax capacity. These matching funds are not included in maintenance of effort. Later this summer, Pioneerland Library System's automation committee will be sending out information to signatories on how these grants will benefit libraries and their communities and ask cities and counties to participate in the grant programs. It LIBRARY TECHNOLOGYITELECOMMUNICATIONS' LEGISLATION 1995 • 1) REGIONAL LIBRARY TELECOMMUNICATIONS AID A) Legislation Omnibus Education Bill, Article 12, Section 5, (134.46) B) Purposes 1) construction, maintenance, and lease costs of data access connections, including internet 2) purchase, maintenance, professional development, and support of computer hardware and software for data access 3) cost of technical support for a regional library system's technology investments, including technical support, personnel, contracted services for technical support, and training. 4) promotion of electronic access through public libraries for members of the public. C) Funding 1) $g00,000 over two years for Mmnesota's 12 regional library systems 2) Matching funds are required from all cities and counties who participate in the aid program. Regional library systems must match state aid with local funds equal to .1 percent times the adjusted net tax capacity for each participating city or county for the • year preceding the year the levy is certified. Amount of funds cities and counties will need to provide in order to participate in 1996 will not be known until adjusted net tax capacity figures are released in July, 1995. In July 1994, Pioneerland Library System had a total net adjusted tax capacity of $92,700,000. The .1 percent would have raised $92,700 matching dollars. Matching amounts are not part of maintenance of effort. 3) Aid dollars for Pioneerland Library System are determined by multiplying $1.00 times (X) population of participating cities and counties - (minus) local match. As example, Pioneerland Library System has approximately 159,000 population and $92,700 in matching funds through the .1 percent levy. Therefore, aid dollars would be $159,000 - (minus) $92,700 or $66,300. However, this illustration is based on two assumptions: 1) There is enough money to fund full participation for all cities and counties throughout the state. The fact is legislature didn't fund it at the amount to accomplish full participation for all cities and counties. Minnesota's Office of Library Development and Services (LDS) will survey regional library systems in August or September of this year to deterntine which cities and counties will be participating. Also, LDS will determine the state's technology and telecommunication funds that will be available for the regional library systems. 2) Second assumption is that all Pioneerland Library System's cities and counties will commit the .1 percent. Less local participation means less state dollars for local technologies and telecommunications. 9 2) REGIONAL LIBRARY TELECOMMUNICATION GRANT A) Legislation Omnibus Education Bill, Article 12, Section 4, Subd. 3 B) Purpose Grant must be used to create or expand capacity of electronic data access and connect library system with MNet. If MNet is not selected as the vendor, the application must provide reasons for choosing an alternative vendor. Regional Library grant is a part of a comprehensive plan for a statewide school district telecommunication network. (see Omnibus Education Bill. Article 12, Section 4, subdivisions 1,2,3 & 4) C) Funding 1) $10,500,000 statewide over two years to fund all grants under section 4. subdivisions 1,2,3, & 4. 2) Regional public library systems must provide matching funds (see above I.C. Regional Library Telecommunications Aid) 0 0 PIONEERLAND LIBRARY SYSTEM AMENDMENTS TO THE 1994 AGREEMENT NNE 5, 1995 Section I l; 1. POWERS AND DUTIES There shall be a library board. It shall have all powers and duties allowed by law for regional library systems, including, without limit to them, those set forth in Mmnesota Statutes 134.09 - 134.13. It shall have authority to accept state, federal, and local funds made available to it and funds from any other source. It shall operate according to rules and regulations which govern libraries accepting state and federal funds and according to policies established by the library board. The library board shall employ a director to administer the regional library system and shall employ such other personnel as are necessary to operate and provide public library service herein provided for. SECTION 11;1. POWERS AND DUTIES: AMENDED There shall be a library board. It shall have all powers and duties allowed by law for regional library systems, including without limit to them, those set forth in Minnesota Statutes 134.1 1 - 134.13_ It shall have authority to accept state, federal and local funds made available to it and funds from any other source. It shall operate according to Hiles and regulations which govern libraries accepting state and federal funds and according to policies established by the library board. The library board shall employ a director to administer the regional library system and shall employ such other personnel as are necessary to operate and provide public library service herein provided for. SECTION 11, 2. BOARD MEMBERSHIP Board of commissioners of each participating county shall appoint one member which may be a member of the board of commissioners. The city council of each signatory city shall appoint one member who may be a member of the city library board if there is one. In addition each board of county commissioners and each city council shall appoint one additional member for each 6,000 population of (sic) major percentage (85 %) thereof. SECTION 11; 2. BOARD NEMBERSHIP: AM[ENDED Pursuant to UI\ StatutCs 1 .... . • .• tl 11 1 1 ' •• 1 1 / . .. 1 • • / \ 1 . ... • 1 • 1 - 11 all li • • 1 • 1 7 41 : • l M • .1 : ..... 11 1 duQIuuI-JWKiqCII . • . commissioners and each city council appoint one additional .' • • 111 population ' • . 1 1 e set OT : 1 .. \ 7 1,1 1 ' • 11 . • . 1 1 1 Y r iATmew 1 1 " •11 1 .1.1. Ia :1 14:. • 1'L..' 114110 " 11.• Id •14.1 11••t1. 1'11a 111.a • 1 " 1 .: � 1 • - 1 1 • J 1I 11 1. • 1 • 1 a • 1 1 ' 4•.1 \ • 1 i • 1 M• 1 • I .. a • SECTION l I I1 1. BUDGETS The minimum contribution of any party to the general operating budget of the Pioneerland Library System shall be the amount needed to insure participation in state and federal grant programs (see Minnesota Statutes 134.33 regarding minimum level of local support and Minnesota Statutes 134.34, subd. 4, regarding maintenance of effort). Any party not providing minimum contribution shall be considered in violation of this agreement and may be subject to termination (see Section W. I -a.) 1 • SECTION 111; 1. BUDGETS: AMENDED *he minimum contribution of any party to the general operating budget of the Pioneerland Library System I be the amount needed to insure participation in state and federal grant programs (see Minnesota Statutes 13414 regarding minimum level of local support and Minnesota Statutes 134 -341, regarding maintenance of effort). Any parry not providing minimum contribution shall be considered in violation of this agreement and may be subject to termination (see Section IV. I.a.) SECTION 111; 4.G. FINANCING AND DISBURSEMENTS OF FUNDS The library board may authorize short-term borrowing of funds (six months or less) not to exceed one - quarter of the annual budget for the previous twelve months. Library board may also authorize long term borrowing of funds (greater than six months) with approval of two-thirds of signatories to agreement. /•' mi,iio,llla 1 1.\ . sll • 1 IJ 1#1 111 ' • I ti 11 1 6A, Y "'T 11 1 • t 'tl 1 Y •.1 1 1 • 1 1.:11 • ./ I Y 11 1 RIP. ' • =1a1 11 =l1 1 11.1 1- /1 ' 01 • •Y•• . RI K �1. :•11 • . .: '.Y . 1 wY :1 . : r.•11 .111 4 1 1 .a 11 1 1Z 1.•. 1 MI 1.11.• lY•• • 1 . • 1 1 I •• 1 .: 11• 1 11 M :. f: - 11 • 1 . \ 1 '.• 11 vl " Il r ► � . 1 l 1 1 �1( . 1 1 1 � •• 1 11 • 1 • . . � 1: 1 �1 • :(• 1 • .: al .: 1 1 •. Constituent 1 1 tv and city lizoverning 1.1.1 :. •1" ratification would i7chide a 1 :11•' of .. .: •a�lll .mow 1 r 1 • • .1 11 ' 1 IP 1 6 641PI 1 •.• a 1•. /11.:11 • OR 1 " 1.• 1.1 •1 l -.+ ! lI 1 1 1 1 :I 1 It A" I 1 11 1 11 • 1 1 1 H ql ' 11 �.n1 1 • 11 • i. .111 1 . MMM SECTION IV, LA. TERMINATION. Is agreement shall continue in force until rescinded by a (sic) action of one of the signatories. Any Ignatory to this agreement may terminate its participation under either of the following provisions: by giving notice in writing to the director at least six months in advance of commencement of the next fiscal year or by mutual agreement of the parties. SECTIOIN IT, I.A. - -'wfix • N: ANIENDED _ 1 1 .. n t rn 1 . ... 1. • r 1 1 .Ran 11 •, .1 1 1 • • 1 " . n,1 I . a 1 our r . •.a •. 11 1 11 •11 1.• Ya$I O (116PM r1 .iR11 =4 1" Roar • -a\.R1 �u•11• n"n• •.a Any signatory to this agreement may terminate its participation under either of the following provisions: by giving notice in writing to the director at least six months in advance of commencement of the next fiscal year or by mutual agreement of the parties. 0 SECTION IV. I.B. OWNERSHIP AND DIVISION OF ASSETS Each signatory to this agreement shall retain title to all assets, including buildings, furniture, equipment, vehicles, books, magazines, and other library materials which it owned at the time of initial agreement. This provision, however, shall in no way prevent the administrative merger or co- mingling of these assets, nor shall it be construed to prevent the use of the assets fo (sic) one library by the patrons of one of the others. Private gifts to any library shall be deemed assets to that library. Machine - readable records produced by Pioneerland Library System remain under exclusive control of Pioneerland Library System. SECTION IV. l.B. OWNERSHIP AND DIVISION OF PHYMCAT ASSETS: AMENDED Each signatory to this agreement shall retain title to all assets, including buildings, furniture, equipment, vehicles, books, magazines, and other library materials which it owned at the time of initial agreement. This provision, however, shall in no way prevent the administrative merger or co- mingling of these assets, nor shall it be construed to prevent the use of the assets cd one library by the patrons of one of the others. Private gifts to any library shall be deemed assets to that library. Machine - readable records produced by Pioneerland Library System remain under exclusive control of Pioneerland Library System. • 1 :_ 1 • 1 � 7 �lll :/ 11 . 1 1 a • 1 • 1 YL: • � .:1 1 : 1 1 ' 1' n:l.•wual • ••1R 1.1• •• 7'11•.1. 1" • 1• .I •"•'pl li• 1• •1 ••1R' 1• •\ '1'11 11 1 • 121 8 kj w 11 WLThTj_0j 101 \/ Ll • ♦ • 171► : \ 1 .. III wl • • . 1 • 1 , 1 r;,q .1 1 . O J 1 • • . •M• 1 •. �qll 11 1 . 1 . 1 JI :1• • • h• • • 1 • 1 IA 1 M :A.Q :.+ 1 (one 111,1 • Q $I C01111961 1 1 • 11 1 1 • 1.• • • I • 1 1 • 1 • • • I • s1 • 1 SECTION V. NEW MEMBERS y eligible municipality or governmental entity may join Pioneerland Library System with the approval of o- thirds of the board, upon accepting all the terms and conditions of the agreement. The board shall establish such special provisions as are appropriate for integration of the new signatory into its services and budget. New members must agree to a three -year commitment of membership. In witness whereof, this agreement has been executed by the parties listed below on the dates indicated. SECTION V. NEW MEMBERS OR Fi0ININ . MFMR RC; AMENDED Any eligible municipality or governmental entity may join or re1oin Pioneerland Library System with the approval of two-thirds of the board, upon accepting all the terms and conditions of the agreement. The board shall establish such special provisions as are appropriate for integration of the new signatory into its services and budget. New members and Erjoining members must agree to a three -year commitment of membership. SECTION is : rr. r] Other agreement issues 1. Non signatories Issues and concerns of nonsignatory libraries were assigned to Pioneerland Library System's System Services Committee- System Service Committee will look at the following: A) definition of nonsignatory B) ownership of financial and physical assets C) local funding obligations, financial minimums and service requirements D) service standards E) facility requirements F) local maintenance of effort G) PLS board representation H) termination of a nonsignatory library and I) insurance responsibilities. Should nonsignatories be included in the agreement or should there be a separate contract with nonsignatory communities that have Pioneerland Library system libraries? 2) Does all signatories have to agree to long term borrowing? Can a signatory who opposes borrowing be excused from borrowing obligations and liabilities? If one of more signatories oppose borrowing, does that prevent majority of signatories from borrowing? 3) Should a signatory qualify for additional board representation at a specific % of 6,000 population? See Section 11;2. board membership of current agreement. • 1I TO: Mayor and Council FROM: Dolf Moon - Director of PRCE DATE: 7 -6 -95 RE: DNR Trail Grant Status Please be advised that the DNR trail connection grant awarded to the city is meeting opposition. The opportunity to connect the trail from Arch to Kimberely Park is not likely to be completed. The status of the four property owners is as follows: Mr. Kenneth Jones - Not willing to sell Mr. & Mrs. Harlow Karg - Not willing to sell Mr. Ron McGraw - Not adverse to selling, concerned about rail access. Maplewood Academy - Not willing to sell At this time I will be contacting Dan Collins the DNR Trail and Waterway director, to advise him of the project status and review alternative options. cc. Gary Plotz City Administrator John Rodeberg City Engineer Brenda Ewing Planning Coordinator Ciry Center III Hassan Street SE Hutchinson, MN 55350 -2522 (612)587 -5151 Fax (612)234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 Fax(612)234 -4240 - Primed on recvried paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (612) 587 -2242 Far(612)587 -6127 FYy � ! e 0 OL O� �r y Pam` AVLk G v s aix JhatLP-4) t°'c)a �' X HUTCHINSON FIRE DEPARTMENT MINUTES REGULAR MEETING Monday, June 5, 1995 0 The meeting opened at 8:25 p.m. The minutes were read and approved. COMMITTEE'S SCBA's - The department is missing Unit # 220 from engine #2339. Discussion followed on putting back equipment after drills and runs to their proper places. During monthly checks of SCBA's, there have been some mainline valves left turned on. The procedure after SCBA use is to dose mainline valves, bleed of the regulator, and extend all straps on packs and masks. Uniforms - Rob Carlson reported that 1st responder patches should be placed 1' below the U.S. flag, centered on the crease. Fire Safety - Casey Stotts reported that the fire house will be used on Wednesday June 7th at 12:30. Volunteers needed. Membership - Tom Glaeser reported that the department will be conducting a test for recruits on Saturday June 24th at 8:00 am at the fire station. Help is needed for the testing process. Rural Tanker - Tom Pessek reviewed the rural tanker cost estimates which will be presented to the townboards. MMS to accept the rural tanker proposal Wthout the part on the used apparatus. Motion passed. The date for the townboard meeting is June 29th at 8:00 PM. Secretary to send out notices. BILLS City, Fire Marshall and Rural Account $3,288.57 General Account Standard Printing (tickets) 734.85 Cashwise 4,86 City of Hutch (postage) 85.89 Festival Foods 2.91 Cashwise 60.12 Browns Floral (banquet) 21.30 Festival Foods 4.47 Lester Prairie F.D. (regional) 9.00 Sewing Basket 19.17 McLeod Co. Ag. Ass'n (rent) 500.00 Browns Floral (banquet) 98.85 Our Design's (1st Res. patch) 215.50 Crow River CC (banquet) 2,319.31 Cashwise 1161 Mike Schmidt 7.12 Art Krzmarzick (bulb recycle) 67.60 Gary Henke (cash for dance) 300.00 C&C Embroidery (shirts) 73.75 Bob 8 Beach Combers (dance) 1,500.00 Hutch Leader (dance) 148.24 Robin Schoulz (ticket taker) 20.00 KDUZIKKJR (dance) 116.50 Stacey Jundra (ticket taker) 20.00 KARP (dance) 84.00 Jay Hauslauden (ticket taker) 20.00 Glencoe Uniforms 4.50 Chris Guggemos (ticket taker) 20.00 Total $8,458.55 RUNS 5-1 Country Club Terrace -Grass 5-17 Village Co-op - Alarm 5-2 5-5 Middle School - Alarm Dakota Rail - Rural - Grass 5-18 5-20 Medical 10-50 Rescue 5-6 Hutch Iron - Scrap pile 5-22 Structural Specialties - Rural Haz-mat 5-6 Medical - Airport Rd. 5-27 Middle School - Alarm 5-12 Medical - Biscay Hwy 22 5-29 R. Williams - Car 5-15 10-52 Rescue - Hwy 7E 5-30 10-52 Rescue - Rural 5-1 SCBA's 5-8 Drill 5-1 Drill f Meeting 5-15 Drill MMS to approve the bills and runs as read. Motion passed. COMMUNICATION'S MMS to accept the resignation of Mike Schmidt as of July 5, 1995. Motion passed - NEW BUSINESS Asst. Chief Steve Schramm is looking for a F.D. mechanic. See Steve for details. Ass[. Chief Randy Redman announced that there YAll be a Regional Fire school July 22 at Litchfield. See Randy for details and signup. Rob Carlson and Casey Stotts reported on the State Fire school Gasses they had attended. Chief Brad Emans reported that as of the June Drills and fires, vve will start to use the accountability system. Place one name tag on each of the two boards in the trucks as you gel in before leaving the station. Chief Emans also reminded everyone of the signup sheets for the Water Carnival and other activities corning up. The meeting adjourned at 9:15 p.m. Respectfully submitted by, Jim Brodd • Secretary HUTCHINSON FIRE DEPARTMENT MINUTES OFFICER'S MEETING Monday, June 12, 1995 The meeting opened at 9:25 p.m There was general discussion about the PAR (personnel accountability reporting) system and consensus was that we should implement it slowly. There was general discussion about the Water Carnival parade and the 1 st Aid station that vAll be set up at the end of the route. Tom Glaeser and the Membership committee talked about the new member testing on June 24 at 8:00 AM and the extra help that is needed. The Tactical Fire Frequency - Channel 3 on the new portable radios, will be used when we have major incidents or at the chiefs discretion. Portables should be switched to charnel 3 and put on scan so that we can hear other radio traffic. Chief Brad Emans has talked to Miriam Filk at the Fairgrounds about next years dance. The Ag Ass'n has requested $500.00 rent and $500.00 damage deposit. Chief Emans also notified the Ag Ass'n that the fire coverage for the Fair will be a contractual service. Firefighters vAll be paid for the hours worked at an event. Discussion followed about other events and if we should charge for this service. The Chiefs will set up a fee schedule to be charged accordingly. Casey Stotts requested that he be notified when Knox box seals are broken so that he can get them replaced. The Chiefs slated that Idds must be supervised at all times when in the fire station. Meeting adjourned at 10:10 p.m. Respectfully submitted by, Jim Brodd Secretary TO: Mayor and Council FROM: Brad Emans, Fire Chief HUTCHINSON FIRE DEPARTMENT 205 Third Avenue South East HUTCHINSON, MINNESOTA 55350 June, 1995 The fire department responded to 21 calls in June of those calls, 6 were in the rural and 15 in the city. Breakdown of the calls: 5 - Residential 6 - CommerciaVindustrial 4 - Rescue 2 Medicals 2 _ HazMat 1 - Grass 1 - Goodwill Drills/Meetings for the month• • Mutual Aid drill in Silver Lake • Accountability on the fire ground • Ropes and knots Extra Duty: • Park and Rec Safety Day • 1st Aid at Parade end • Fireworks Special note: We had another firefighter test on June 24th. Seven people tested with four hired for training. On June 29, 1995 the townships approved letting bids for a 1996 - 3000 gallon tanker truck with bid opening in August. 0 hutchinson community hospital burns manor nursing Fame 1095 Highway 15 South • Hutchinson, MN 55350 • 612/234 -5000 June 21, 1995 Mr. Brad Emans Hutchinson Fire Department 205 3rd Av. S.E. Hutchinson, MN. 55350 Dear Mr. Emans: On behalf of Hutchinson Community Hospital, I would like to thank your department for your assistance at this year's Jaycee Water Carnival parade first -aid station. In view of the high heat and humidity encountered Sunday, the Immediate avaiabllity of water and a cooling shower proved very valuable. I know your personnel were kept very busy handing out cups of water, but their efforts made our first aid station a success. We received many positive comments regarding the staffing and organization of the first -aid area. Thanks again for your support. Sincerely, _ - �`�"'Y` George R. Gordon, M.D. Emergency Services Director Hutchinson Community HospitaUHutchinson Area Health Care 0 0 E • Highway 7 & 3rd Avenue Informational Meeting July 6, 1995 Questions The following are questions that were posed by the meeting attendees in response to the conceptual plan to split Highway 7. 1. Don Hantge, Tri County Water - Is 3rd Ave. sufficient for truck traffic? It is a state aid, 9 ton road. The State prefers 10 ton roads for State highways. It would be requested that the street stay as it is. 2. Would 3rd Ave. and Highway 7 stay the same width or would they be widened? They would probably remain the same width as they are now. Dick Desens, New Dimension Plating - What would be the posted speed limit? 30 mph 4. Bob Stearns, Stearnswood - Stated that the conceptual plan would be detrimental to his business. He questioned how 19 semi trucks per week could gain access to and exit from the property? Also stated that the practice of lift trucks going back and forth across 3rd Ave. to the Stearnswood warehouse is totally safe. This would be impossible if 3rd Ave. becomes part of the highway. 5. Dick Desens - Stated that he is anticipating increased truck traffic for his business. 6. Fritz Schmeling, Junction Amoco - Will the frontage road by the Victorian Inn be connected to 3rd Ave.? Probably not since the intersection by Cenex and Les Kouba Parkway already has stacking problems. 7. Dick Desens - Has MnDot considered the railroad r -o-w as a possible easterly route? Not to the City's knowledge. g. Fritz Schmeling - Why are there no turn lanes at Bluff St. and Hwy 7? The intersection will be striped this summer. Highway 7 will be striped from Bluff St. to Hwy 15. The general consensus is that the major concern is maintaining and/or providing adequate access to the business properties along the route. Adequate area is required to allow truck traffic to enter and exit the properties in a practical manner. Those present who expressed a desire to meet to address the issues raised at this meeting are as follows: Clarence Kadrmas, Hutchinson Utilities Robert Stearns, Stearnswood Fritz Schmeling, Junction Amoco Richard Desens, New Dimension Plating Don Hantge, Tri -County Water HCI - Hutchinson Computer Laraway Roofing Cenex AGENDA SUBJECT. Proposed New Zoning District between State Hwy. 7 and 22 and Third Avenue N.W. INTRODUCTION. Jim Marka, Director of Planning, Zoning, and Building • Land -Use regulation history of area Dick Lennes, HCDC Director 0 Review HCDC Conceptual Plan for this area . Brenda Ewing, Planning Coordinator • Review of ezisting zoning regulations a Conceptual review of preliminary proposed regulations John Rodeberg, Director of Engineering • Review of MnDOT Conceptual Plan for T.H. #7 and Third Ave. 0 CITY OF HUTCHINSON LIQUOR STORE COMPARISON JUNE 1994 JUNE 195 441 1994 LIQUOR BEER 1 2,169 2,314 2 1,786 3,451 3 2,452 6,778 4 2,667 7,808 6 1,192 2,577 7 1,164 1,836 8 1,133 2,081 9 1,454 3,176 10 2,379 5,691 11 2,646 6,247 13 1,274 2,577 14 1,331 2,978 15 1,300 2,475 16 1,796 3,906 17 2,601 8,226 18 3,305 7,833 20 1,110 2,053 21 1,286 2,763 22 1,186 2,417 23 2,005 3,351 24 2,426 6,429 25 2,489 5,940 27 1,086 2,391 28 1,255 2,368 29 1,425 3,054 30 2,738 4,233 TOTAL 47,655 102,951 93 TOTAL 41,523 80,941 % OF SALE 27 59 SALES INC OR DEC WINE MISC. 179 195 441 249 1,009 489 1,040 1,090 349 201 363 121 406 157 566 288 719 388 1,039 630 438 169 404 213 368 132 487 257 820 414 1,170 680 286 157 353 214 413 207 453 209 845 490 1,087 552 299 152 339 186 566 213 620 344 15,059 8,397 12,836 6,644 9 5 32,118 TOTAL 4,857 5,927 10,728 12,605 4,319 3,484 3,777 5,484 9,177 10,562 4,458 4,926 4,275 6,446 10,081 12,988 3,608 4,616 4,223 6,018 10,100 10,068 3,928 4,146 5,258 7,935 FOR YOUR INFOOTION CITY OF HUTCHINSON LIQUOR STORE COMPARISON JUNE 1995 TOTAL , JUNE A W TOTAL BY WEEK 1995 LIQUOR BEER WINE MISC. TOTAL BY WEEK 23 % 1 2,066 4,189 828 292 7,375 2 3,276 7,723 1,301 719 13,019 3 3.649 8,784 1,277 2,141 15,851 36,245 34,117 5 1,189 2,537 431 184 4,341 6 1,290 2,946 378 228 4,842 7 1,539 2,507 424 151 4,621 8 1,870 2,969 528 276 5,643 9 3,186 5,849 905 500 10,440 10 3,157 5,594 949 539 10,239 40,126 36,803 12 2,244 2,939 462 226 5,871 13 1,503 3.859 951 410 6,723 14 2,091 3,825 483 391 6,790 15 2,023 4,939 676 364 8,002 16 3,093 8,375 1,193 611 13,272 17 3,817 11,193 1,638 1,208 17,856 58,514 43,154 19 1,277 2,688 451 212 4,628 20 1,072 2,605 340 240 4,257 21 1,976 3,372 558 297 6,203 22 1,753 4,295 702 355 7,105 23 3,204 6,870 1,063 176 11,313 24 2,871 6,983 1,002 176 11,032 44,538 38,721 26 1,198 2,322 381 239 4,140 27 1,378 2.366 515 262 4,521 28 1,686 3,067 415 287 5,455 29 2,333 4,566 912 274 8,085 30 4,045 8,367 1,383 592 14,387 21,267 36.588 174,062 TOTAL 58,786 125,729 20,146 11,350 216,011 141,944 94 TOTALS 47,655 102,951 15,059 8,397 174,062 100 % SALE 27 58 9 5 100 SALES INC OR DEC 41,949 24 % NOTICE July 21, 1995 To: To Whom It May Concern: From: Gary D. Plotz, City Administrator The closed meeting at 4:00 P.M. with the City Council is to discuss a personnel item regarding an employee disability claim. • An additional item for the agenda, under "Communications-- 6(c) ", will be a summary by Ken Merrill of the 4:15 P.M. City Council Workshop on the overview of City finances. •