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cp01-10-1995 c
a qw Adak SUNDAY MONDAY TUESDAFF -8- -9- -10- 5:00 P.M. - Telecommunications 5:30 P.M. - City Council HUTCHINSON Commission Meeting at Workshop at City Center CITY City Center Main Conf. Main Conference Room CALENDAR Room 7:30 P.M. - City Council Meeting at City Center Week of January 8 to January 14 1995 WEDNESDAY THURSDAY FRIDAY SATURDAY -11- -12- -13- -14- 9:30 A.M. - Directors Meeti 9:30 A.M. - Senior Advisory CONFERENCE: on Policy Book Board Meeting at Senior Center JIM MARKA & MARK HENSEN - 10:00 A.M. - Directors Meeting January 11 -13 at City Center 0 AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 10, 1995 1. CALL TO ORDER - 7:30 P.M. 2. INVOCATION - Rev. Alex Ramos, Bethlehem United Methodist Church 3. CONSIDERATION OF MINUTES REGULAR MEETING OF DECEMBER 27, 1994 Action - Approve as distributed - Approve as amended 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - DECEMBER 1994 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 10372 - DESIGNATING OFFICIAL NEWSPAPER 2. RESOLUTION NO. 10373 - APPOINTING LEGAL COUNSEL 3. RESOLUTION NO. 10374 - APPOINTING CITY ADMINISTRATOR FOR 1995 4. RESOLUTION NO. 10375 - DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS 5. RESOLUTION NO. 10376 - DESIGNATION OF DEPOSITORY OF CITY FUNDS, FEDERAL SAVINGS AND LOAN ASSOCIATIONS 6. RESOLUTION NO. 10377 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON, MINNESOTA 7. RESOLUTION NO. 10378 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANK OF HUTCHINSON, MINNESOTA 8. RESOLUTION NO. 10379 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST STATE FEDERAL SAVINGS & LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA 1 CITY COUNCIL AGENDA - JANUARY 10, 1995 9. RESOLUTION NO. 10380 - RESOLUTION ACCEPTING $172,500 FROM HUTCHINSON UTILITIES COMMISSION INTO GENERAL FUND AND TRANSFER OF $68,750 FROM GENERAL FUND TO CAPITAL IMPROVEMENT FUND (c) TRANSIENT MERCHANT LICENSE FOR GEORGE ROBERT SCHMITZ (APPROVAL SUBJECT TO INVESTIGATION) (d) APPOINTMENTS TO HEALTH BOARD: DR. DAVID BYRON DR. JOHN ZENK DR. DENNIS MURPHY (e) SELECTION OF COUNCIL'S VICE PRESIDENT - JOHN MLINAR Action - Motion to approve consent agenda 5. PUBLIC HEARING (a) ISSUANCE OF INTOXICATING LIQUOR LICENSE TO RUSS CARTER JR., DBA J'S BAR & GRILL Action - Motion to close hearing - Motion to reject - Motion to approve and issue license (b) LETTING NO. 4, PROJECT NO. 95 -04 (OSGOOD /HAYDEN ADDITIONS AND SURROUNDING AREAS) Action - Motion to close hearing - Motion to reject - Motion to approve and order plans and specifications - Motion to waive reading and adopt Resolution No. 10369 6. COMMUNICATIONS. REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR STREET LIGHTING IN WALNUT RIDGE TOWNHOUSE AND WALNUT RIDGE ESTATES SUBDIVISIONS Action - Motion to reject - Motion to approve and refer to Hutchinson Utilities 7. RESOLUTIONS AND ORDINANCES - SEE CONSENT AGENDA 8. UNFINISHED BUSINESS (a) CONSIDERATION OF 1968 DEFERED ASSESSMENT FOR SANITARY SEWER AND WATERMAIN ON PROPERTY OWNED BY NEIL JENSEN (DEFERRED DECEMBER 13, 1994) Action - 2 1] CITY COUNCIL AGENDA - JANUARY 10, 1995 9. NEW BUSINESS (a) PRESENTATION AND CONSIDERATION OF RESOLUTION REQUESTING SPECIAL LEGISLATION FOR ONE -HALF PERCENT LOCAL SALES TAX Action - Motion to reject - Motion to approve and adopt Resolution No. 10368 (b) CONSIDERATION OF APPROVING CIVIC ARENA PROJECT AND ENTERING INTO CONTRACT WITH BONESTROO AND ASSOCIATES FOR ENGINEERING SERVICES Action - Motion to reject - Motion to approve and enter into contract (c) CONSIDERATION OF EXTENDING CONTRACT WITH BERNICK & LIFSON Action - Motion to reject - Motion to approve (d) CONSIDERATION OF ENTERING INTO TWO -YEAR LEASE WITH SCHRAMM IMPLEMENT FOR COMPOST MIXER Action - Motion to reject - Motion to approve and enter into lease (e) CONSIDERATION OF DNR TRAIL GRANT Action - Motion to reject - Motion to approve and enter into agreement (f) CONSIDERATION OF RECOMMENDATION FROM TELECOMMUNICATIONS COMMISSION REGARDING CABLE FRANCHISE RENEWAL Action - (g) CONSIDERATION OF RECEIVING REPORT AND SETTING PUBLIC HEARING FOR LETTING NO. 8, PROJECTS NO. 95 -10, 95 -11 AND 95 -12 Action - Motion to reject - Motion to approve and receive report, to set hearing for February 14, 1995, and to waive reading and adopt Resolution No. 10370 and No. 10371 (h) CONSIDERATION OF REQUEST TO INCREASE CITY LODGING TAX Action - Motion to reject - Motion to approve - Motion to waive first reading of Ordinance and set second reading for January 24, 1995 3 CITY COUNCIL AGENDA - JANUARY 10, 1995 (i) CONSIDERATION OF ESTABLISHING DATE FOR A CITY COUNCIL VISIONARY WORKSHOP Action - (j) CONSIDERATION OF PETITION ON HARMONY LANE AND LINCOLN AVENUE Action - (k) CONSIDERATION OF CHANGING TERMS OF OFFICE FOR MEMBERS ON HOSPITAL /NURSING HOME BOARD Action - Motion to reject - Motion to approve and waive first reading of Ordinance No. 95 -129 and set second reading for January 24, 1995 (1) CONSIDERATION OF VACATING MUNICIPAL RIGHT OF WAY, SUBJECT TO POSSIBILITY OF REVERTER, FOR HOMETOWN REALTY BUILDING Actiion - Motion to reject - Motion to approve and waive first reading of Ordinance No. 95 -130 and set second reading for January 24, 1995 10. MISCELLANEOUS (a) COMMUNICATIONS 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS 12. (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds 4 0 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, DECEMBER 27, 1994 1. The meeting was called to order at 7:30 P.M. by Mayor Torgerson. Present were: Mayor Marlin Torgerson, Council Members Bill Craig, Kay Peterson, and Don Erickson. Absent: Council Member John Mlinar and City Administrator Gary D. Plotz. Also present: City Engineer John Rodeberg, Finance Director Kenneth B. Merrill, and City Attorney G. Barry Anderson. 2. In the absence of a pastor, there was no invocation. 3. MINUTES The minutes of the regular meeting of December 13, 1994, bid opening of November 29, 1994, and Truth In Taxation Public Hearing minutes of December 6, 1994 were approved as distributed. 4. CONSENT AGENDA • (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL REPORT - NOVEMBER 1994 2. CITY INVESTMENTS REPORT 3. PLANNING COMMISSION MINUTES OF NOVEMBER 15, 1994 4. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY MINUTES OF NOVEMBER 15, 1994 5. HUTCHINSON HOUSING, INC. MINUTES OF NOVEMBER 15, 1994 6. HUTCHINSON HANDICAP ADVISORY COMMITTEE MINUTES OF DECEMBER 15, 1994 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 94 -126 - AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY ROBERT COWGER AND SALLY COWGER AND ABUTTING THE CITY OF HUTCHINSON PURSUANT TO MINNESOTA STATUTES 414.033, SUBDIVISION 2(3) (SECOND READING AND ADOPT) 1 CITY COUNCIL MINUTES - DECEMBER 27, 1994 2. ORDINANCE NO. 94 -128 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING A PORTION OF GLEN STREET AND THIRD AVENUE SOUTHWEST (SECOND READING AND ADOPT) 3. RESOLUTION NO. 10363 - RESOLUTION FOR PURCHASE 4. RESOLUTION NO. 10365 - RESOLUTION ADOPTING ECONOMIC LOAN FUND AND ENERGY LOAN FUND FOR FISCAL YEAR 1994 5. RESOLUTION NO. 10363 - RESOLUTION ADOPTING RURAL FIRE DEPARTMENT SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR 1994 (c) SNOW REMOVAL PERMIT FOR REINER LANDSCAPING (d) DELINQUENT WATER AND SEWER ACCOUNTS (e) VARIANCE FOR BILLBOARD ON HWY 15 N., HUTCHINSON TOWNSHIP, WITHIN TWO MILE RADIUS, WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION (f) GAMBLING LICENSES (g) BINGO LICENSES . (h) CIGARETTE LICENSES (i) TATTOO LICENSE The motion to approve the consent agenda was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. 5. PUBLIC HEARING None 6. COMMUNICATIONS, REQUESTS AND PETITIONS None 7. RESOLUTIONS AND ORDINANCES See Consent Agenda. 8. UNFINISHED BUSINESS None 2 . 0 CITY COUNCIL MINUTES - DECEMBER 27, 1994 9. NEW BUSINESS (a) CONSIDERATION OF 1995 GENERAL WAGE ADJUSTMENT Following discussion, the motion to approve a three percent wage adjustment was made by Council member Erickson, seconded by Council Member Craig and unanimously carried. (b) CONSIDERATION OF 1995 PAY PLAN Following discussion, the motion to approve the 1995 pay plan and to waive reading and adopt Resolution No. 10362 was made by Council Member Peterson, seconded by Council Member Craig and unanimously carried. (c) CONSIDERATION OF SETTING PUBLIC HEARING DATE OF JANUARY 10, 1995, FOR INTOXICATING LIQUOR LICENSE APPLICATION FROM RUSS CARTER JR. FOR J'S BAR & GRILL Following discussion, the motion to approve and set the public hearing for January 10, 1995 at 8:00 P.M. was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. (d) CONSIDERATION OF DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF HUTCHINSON AND AUGUSTA BUILDING CORPORATION Following discussion, the motion to approve and enter into an agreement with Augusta Building Corporation was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. (e) CONSIDERATION OF ADOPTING 1995 BUDGETS FOR LIQUOR FUND, WATER /SEWER /REFUSE FUND AND CENTRAL GARAGE FUND Following discussion, the motion to approve and to waive reading and adopt Resolution No. 10364 was made by Council Member Craig, seconded by Council Member Peterson and unanimously carried. (f) CONSIDERATION OF CONTRACT WITH AUGUSTANA LUTHERAN HOMES OF LITCHFIELD FOR SENIOR DINING PROGRAM Director Dolf Moon reported that the Heartland Community Action Agency would no longer be the provider of the senior dining program. Effective January 1, 1995, the service will be provided by Augustana Lutheran Homes of Litchfield. 3 CITY COUNCIL MINUTES - DECEMBER 27, 1994 • Following discussion, the motion to approve and enter into a contract with Augustana Lutheran Homes was made by Council Member Erickson, seconded by Council Member Craig and unanimously carried. (g) CONSIDERATION OF CLOSING YOUTH CENTER FUND Following discussion, the motion to approve closing the fund was made by Council Member Erickson, seconded by Council Member Craig and unanimously carried. (h) CONSIDERATION OF ESTABLISHING AN ESCROW AGREEMENT WITH S.J. LEWIS CONSTRUCTION Following discussion, the motion to approve and enter into an escrow agreement was made by Council Member Craig, seconded by Council Member Peterson and unanimously carried. (i) CONSIDERATION OF LONG TERM DISABILITY INSURANCE RENEWAL Following discussion, the motion to approve the renewal based on the insurance consultant's recommendation was made by Council Member Erickson, seconded by Council Member Peterson and unanimously carried. (j) CONSIDERATION OF JOINT VENTURE BETWEEN HUTCHINSON COMMUNITY HOSPITAL /BURNS MANOR NURSING HOME AND GLENCOE AREA HEALTH CENTER TO FORM HOME CARE COMPANY It was reported the joint venture between the Hutchinson Community Hospital /Burns Manor Nursing Home and the Glencoe Area Health Center would form a private, non- profit home care company. Following discussion, the motion to approve was made by Council Member Craig, seconded by Council Member Erickson and unanimously carried. (k) CONSIDERATION OF LAND PURCHASE FOR BURNS MANOR NURSING HOME FOR FUTURE CONSTRUCTION OF ALTERNATIVE LIVING ARRANGEMENTS Following discussion, the motion to approve the land purchase was made by Council Member Peterson, seconded by Council Member Craig and unanimously carried. 10. MISCELLANEOUS N • CITY COUNCIL MINUTES - DECEMBER 27, 1994 (a) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson reported he had reviewed the cable franchise renewal issue with the consultant attorney. He was hopeful that a proposal would be ready for the January 10, 1995, City Council meeting. The City Attorney presented his legal opinion on the proposed purchase of the unique Motorola equipment for the Police Department. He noted there would be a substantial savings to the City by purchasing it under the Hennepin County contract, and it was his recommendation to enter into a joint powers agreement with Hennepin County for bidding purposes. Following discussion, the motion to approve the purchase through a joint powers agreement with Hennepin County and to waive reading and adopt Resolution No. 10367 was made by Council Member Peterson, seconded by Council Member Erickson and unanimously carried. (b) COMMUNICATIONS FROM COUNCIL MEMBER BILL CRAIG • Council Member Craig commented that the McLeod Treatment Center issue was acted on by the Planning Commission at their December meeting. He noted he was pleased with the outcome. (c) COMMUNICATIONS FROM COUNCIL MEMBER DON ERICKSON Council Member Erickson suggested holding a Council workshop prior to the regular meeting on January 10 for the purpose of reviewing the handwritten comments on the community survey. It was the consensus of the Council to meet at 5:30 P.M., January 10, 1995, for a workshop. (d) COMMUNICATIONS FROM DON TODNEM Don Todnem reported he had been informed by Vi Mayer, Chamber of Commerce Director, that Curt Wiehle will be the speaker at the January 17, 1995 Chamber breakfast. He invited the Council Members to attend the meeting. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion to approve the claims and to authorize payment • from appropriate funds was made by Council Member CITY COUNCIL MINUTES - DECEMBER 27, 1994 . Erickson, seconded by Council Member Craig and unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 5:10 P.M. • • 2 L fOPM 0-404 U.S. DEPARTMENT Of COMMENCE s.nrnuo,,Neco.ws i Period in which permits issued „rs sn DECEMBER 1994 .dv �- (Pes.e eo,ncr am error. in nama.M aedron k.AAfkp ZIP Code) REPORT OF BUILDING OR ZONING PERMITS ISSUED AND LOCAL PUBLIC CONSTRUCTION 357400 27 4 9999 OBS 1 0 26 9999 02730 JAMES MARKA SLOG OFFICIAL FOR CITY OF HUTCHINSON If your building permit system has changed, mark (X) appropriate box below and slrphlin HUTCHINSON CTY GTR 111 HASSAN ST S In coRaneab' HUTCHINSON MN 55350 ❑ Discontinued Issuing permits ❑ Merged with Brother system ❑ Split Into two or more systems ❑ Annexed land areas 1 ❑ Had other changes HIS FORM ON OR BEFO BEFORE A If no permits were issued during Bureau of the Census Instructions are included. For this period, mark fX) In the box —• ❑ 1201 East 10th Street further assistance, call collect and return this form e e Jeffersonville, IN 47132-0001 4301)763-7244. NEW RESIDENTIAL PRIVATELYOWNED PUBLICLY OWNED HOUSEKEEPING Item Number of Valuation of Number of Valuation of Buildings Housing BUILDINGS No, Buildings Housing construction construction limits Omit teats unit. Omit cents LI ml nl m 01 n ill Single-famity houses, detached Exclude mobile homes. 101 Single - family houses, attached - Separated by ground W roof wall, -No units above or below, and - Separate he&" systems and urday motors. (Count each unit a a separate buildingl 102 2 4 Two - famiy buildings 103 Thres- and four-family buildings 104 Frvs-or -more family buildings 108 7 56 2,470,000 TOTAL — Sum of 101 -108 —0 109 NEW RESIDENTIAL PRIVATELY OWNED PUBUCLYOWNED NON HOUSEKEEPING Item Number of Valuation of Number of Valuation of No. BUILDINGS construction construction Buildings Rooms Omft cans Building. Rooms Omit cents 1.) lb) (el (d) lei (f) (a) Hotels, motels, end tourist "bins (transient accommodations only) 213 Other nonhousekesping shatter 214 NEW NONRESIDENTIAL PRIVATELY OWNED PUBLICLYOWNED BUILDINGS hem Numbs, Valuation of Number Valuation of No. of construction of construction buildings Omit cents buildings Omit cents (N (bl (c) (d) (e) Amusement, social, and recreational 318 Churches and other religious 319 Industrial 320 Parking garages (buildings and open decked) 321 Service motions and repair garages 32 Hospitals and institutional 323 Offices, banks, and professional 324 Public works and utilities 328 Schools and other educational 32 Stores she customer services 327 Other nonresidential buildings 328 Structure other then buildings 329 ADDITIONS, PRIVATELYOWNED PUBLICLY OWNED ALTERATIONS, AND CONVERSIONS Item Number Valuation of Number Valuation of No. of construction 0! construction buildings Omit cents buildings Omit cants is) (b) (c) (d) lei Residential — Classify additions of garages and ",ports in item 438. 4 Nonresidential and nonhousekeephg 437 Additions of residential garages and carports (attached end detached) 43 RM1), nor -c, PUNK-C, MI-I, Jltll -J Total I' Pa miss 26 Total Valuation $3.030,054 PLEASE CONTINUE ON REVERSE SIDE tee. DEMOLITIONS AND PRIVATELY OWNED PUBLICLY WN D Number of RAZING OF Item Number of BUILDINGS No. .Buildings Housing Buildings Housing units units 10 lb) 10 Id) GI Single - family houses (attached and detached) 848 Two - family buildings 646 Three- and four -family buildings 647 Five -or -more family buildings 818 All other buildin send atru<tures 819 INDIVIDUAL PERMITS AUTHORIZING CONSTRUCTION VALUED AT $500,000 OR MORE Please provide the following information for each permit authorizing construction valued at 6500,000 or more entered in sections 1 through IV. Item Number of No. Name and address of Owner - ark Valuation of from Description owner ar builder Mao eX) ( Construction Omit Housi Buildings sec, canto unity [—IV W Ibl 10 Idi (a) if) III) Kind of buildup _Crow Ri_v_er Apt!je_1_Amited_ QPrivate Apar_tment_Buildingc-- - - - -__ site.aare.a 705, 715, 725.745. - 517_tolfa)LS1reei___________ ❑Public 105 755 765 6 Kind of Wilding ____ _____________ __________________ ❑PrivN __ ___________________________ Site addreu ____________________ _ E] Public 3 Kind of building --------- _------------------------- ❑Privets ________________________ Site ;ddrue ____ _______________________________ ❑Paplk a Kind of Wilding ____ _______________________________ ❑private _______________________ Sits eddreu ___________________ ________________ ❑PUbfg a Kind of Wilding ___ _____ --------------------------- ❑Private ❑ Public __ _______________________________ Site adds» ________________________ 6 Kind of Wilding ------------------------------------- _ El Private ________________________ Site addreaa ____ _______________________________ ❑PYDIb a r of Ouildirq ------------------------- __________ ❑Privsta [,d ____ RS eddreu ______________________________ - - - -- ❑PuDlk a Kind of Wilding ------------' ❑Private Sits redrew C3 Public ------------------------------- ____ 6 Kind of Wilding ❑Private --- _ _________ __________________ ----- _ ---------------------------- _____ ❑Public _______________________ SRS tldnu 6 Comments An you swan of any new pevink4sauing ❑ No ❑ Yes — Please give additional information In comments. Jurisdictions] Name of person to contact regarding this report Telephone James G. Barka Ara; code Number Estenubn Title Building Official 612 234 -4 "M c.0. 14n Sir 9 0 0 0 RESOLUTION NO. 10372 DESIGNATING OFFICIAL NEWSPAPER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, The Hutchinson Leader be designated the official newspaper during the calendar year of 1995 for the City of Hutchinson. Adopted by the City Council this 10th day of January, 1995. ATTEST: Gary D. Plotz City Administrator 0 Marlin Torgerson Mayor RESOLUTION NO. in311 APPOINTING LEGAL COUNSEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT G. Barry Anderson, of the law firm of Arnold, Anderson & Dove, P.L.L.P. is hereby appointed as City Attorney in exchange for payment of a retainer for a one year period from January 1, 1995 to December 31, 1995. Services to be included within the agreed upon retainer amount are: prosecution of police department cases; attendance at all City Council and Planning Commission meetings; preparation of resolutions and ordinances and other customary legal services in the normal course of City business including but not limited to professional supervision of duties performed by the Assistant City Attorney. Matters such as appearances in state district court or federal district court, or appearances in the court of appeals or state supreme court, will be billed as additional legal services outside of the retainer agreement and at the usual and customary hourly rate to be approved by the City Administrator. In addition, collection actions may be billed on a contingent fee basis and any amounts received for such actions shall be considered apart from the retainer arrangement described above. Adopted by the City Council this 10th day of January, 1995. Attest: Gary D. Plotz City Administrator Marlin Torgerson Mayor Mr. Gary D. PlOtz City Administrator Hutchinson City Center 111 Hassan Street Hutchinson, Mn. 55350 Re: City Attorney Issues Dear Gary: I am enclosing herewith the official appointment document relative to services of the City Attorney. Please place this resolution in the Council packet for action at the next regularly scheduled City Council meeting. I am pleased to report that the law firm has agreed, at its most recent Partnership meeting, to maintain the $85 per hour rate for services not covered by the City retainer. This will be the third consecutive year that the law firm has been able to hold the line relative to our hourly rate for non retainer matters. On behalf of the employees of Arnold, Anderson & Dove, P.L.L.P and on my behalf, I am pleased that we are able to continue to provide services to the City of Hutchinson. Should you have any questions in connection with any of the foregoing, you certainly should feel free to contact me. Thank you. Best regards. Very truly yours, & )5fiVE, P.L.L.P. G. Barry Anderson GBI 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 ARNOLD. ANDERSON & DOVE PROFESSIONAL -MITES LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD 101 PARK PLACE HUTCHIN50N, MINNESOTA 553502563 OF COUNSEL STEVEN A. ANDERSON RAYMOND C. LALLIER G. BARRY ANDERSON* (612)587 -7575 JANE VAN VALKENBURG STEVEN S. HOGE FAX 1612)587 -4096 LAURA K. FRETLANO 5881 CEDAR LAKE ROAD DAVID A. BRVEGGEMANN RESIDENT ATTORNEY MINNEAPOLIS, MINNESOTA 55416 PAUL D. DOVE* (612) 545 -9000 G. BARRY ANDERSON RICHARD G. McGEE FAX 1612) 545 -1793 CATHRYN D. REHER — GINA M. BRANDT 501 SOUTH FOURTH STREET BRETT D. ARNOLD PRINCETON, MINNESOTA 55371 16121 389 -2214 Al3p ACM]rTED IN TEXAS ANO NEW YORIK January 4, 1995 FAX 16121 309 -5506 Mr. Gary D. PlOtz City Administrator Hutchinson City Center 111 Hassan Street Hutchinson, Mn. 55350 Re: City Attorney Issues Dear Gary: I am enclosing herewith the official appointment document relative to services of the City Attorney. Please place this resolution in the Council packet for action at the next regularly scheduled City Council meeting. I am pleased to report that the law firm has agreed, at its most recent Partnership meeting, to maintain the $85 per hour rate for services not covered by the City retainer. This will be the third consecutive year that the law firm has been able to hold the line relative to our hourly rate for non retainer matters. On behalf of the employees of Arnold, Anderson & Dove, P.L.L.P and on my behalf, I am pleased that we are able to continue to provide services to the City of Hutchinson. Should you have any questions in connection with any of the foregoing, you certainly should feel free to contact me. Thank you. Best regards. Very truly yours, & )5fiVE, P.L.L.P. G. Barry Anderson GBI 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 0 RESOLUTION NO. 10374 APPOINTING CITY ADMINISTRATOR FOR 1995 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the following appointment to the indicated executive office of the City of Hutchinson is made for the period of one year. Compensation shall be continued as agreed upon by separate Council action: .City Administrator Gary D. Plotz Adopted by the City Council this 10th day of January, 1995. ATTEST: Gary D. Plotz City Administrator Marlin Torgerson Mayor -9 (3) 0 RESOLUTION NO. 10375 DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the following named banks and institutions, which are authorized to do a banking business and act as depositories in Minnesota, be and they hereby are designated depositories of the Public Funds of the City of Hutchinson in the County of McLeod, State of Minnesota, by the City Council of said City, for the term commencing January 1, 1995 for one year: CITIZENS BANK & TRUST COMPANY, HUTCHINSON, MN THE FIRST BANK OF MINNESOTA, HUTCHINSON, MN MARQUETTE BANKS OF HUTCHINSON, HUTCHINSON, MN 0 FIRST BANK, MINNEAPOLIS, MN NORWEST BANK, MINNEAPOLIS, MN FIRST BANK ST. PAUL, ST. PAUL, MN AMERICAN NATIONAL BANK, ST. PAUL, MN FIDELITY BANK AND TRUST COMPANY MERRILL LYNCH, DAIN BOSWORTH, INC. PIPER JAFFRAY & HOPWOOD, INC. SHEARSON LEHMAN BROTHERS SMITH BARNEY SHEARSON upon terms and conditions following, to -wit: THAT this designation is subject to the right of said City of Hutchinson, Minnesota to modify, vacate, or revoke the same 7!47'(4 RESOLUTION NO. 10375 9 according to law, and also subject to any depository agreement executed pursuant to Minnesota Statutes, Section 118.01 and Section 475.66, and THAT the use of these depositories other than those located in the City of Hutchinson shall be for monies from the proceeds of bond sales or grant reimbursement monies only. The interest rate from these institutions must exceed the interest rate of City financial institutions by more than .5 %. BE IT FURTHER RESOLVED: THAT the City Administrator of the City of Hutchinson is hereby authorized and directed to deposit in said banks and institutions in special funds to be known as "City of Hutchinson" all monies that may come into his hands. BE IT FURTHER RESOLVED: THAT a copy of this resolution be filed with the City Administrator and each of the banks and institutions so designated. Adopted by the City Council this 10th day of January, 1995. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator RESOLUTION NO. 10376 DESIGNATION OF DEPOSITORY OF CITY FUNDS FEDERAL SAVINGS AND LOAN ASSOCIATIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT First Federal FSB, Minnesota is hereby designated as an official depository of and for funds of the City of Hutchinson up to the maximum designated by law. Adopted by the City Council this 10th day of January, 1995. 0 ATTEST: Gary D. Plotz City Administrator [I Marlin Torgerson Mayor RESOLUTION NO. 10377 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON, MINNESOTA WHEREAS, the Citizens Bank & Trust Co. of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson and Hutchinson Utilities: U.S. Treasury Note $1,000,000.00 7.625 04 -30 -96 U.S. Treasury Note 500,000.00 4.375 08 -15 -96 Fed, Home Loan Bank 500,000.00 4.800 07 -07 -98 Fed. Home Loan Bank 500,000.00 5.200 08 -04 -97 Fed. Natl. Mort. Assoc. 1,000,000.00 7.000 02 -10 -96 Fed. Natl. Mort. Assoc. 500,000.00 6.050 01 -12 -98 Fed. Natl. Mort. Assoc. 1,000,000.00 6.310 06 -17 -99 Fed. Natl. Mort. Assoc. 1,000.000.00 3.395 10 -25 -96 TOTAL $5,500,000.00 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this lord day of January, 1995. ATTEST: Gary D. Plotz City Administrator Marlin Torgerson Mayor RESOLUTION NO. 10378 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANK OF HUTCHINSON, MINNESOTA WHEREAS, the Marquette Bank of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson and Burns Manor Nursing Home: U.S. Treasury Note M97 $ 500,000.00 05 -31 -97 U.S. Treasury Note A96 300,000.00 05 -15 -96 U.S. Treasury Note L96 500,000.00 02 -29 -96 U.S. Treasury Note R98 500,000.00 08 -31 -98 Burnsville, MN GO 125,000.00 02 -01 -01 Issaquah, WA King Co. UT GO Bank Qualified 100,000.00 12 -01 -04 Centerville, TX ISD 150,000.00 08 -15 -04 Decorah, IA SCH DIS 150,000.00 06 -01 -02 King Co. WAS S.D. 100,000.00 12 -01 -04 FNMA Pool 102248 ARM 37,235.75 05 -01 -20 FNMA MTG -BKD #226554 1.000.000.00 08 -01 -032 1 TOTAL $3,511,653.00 9 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said Resolution 10378 securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this loth day of January, 1995. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator 0 0 �J 0 RESOLUTION NO. 10379 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST STATE FEDERAL SAVINGS & LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA WHEREAS, the First State Federal Savings & Loan Association of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson, Hutchinson Utilities, and Hutchinson Community Hospital: U.S. Treasury #890811034 FNMA Rem 12FA #920130001 FHLB F/R Note #930818001 FNMA 93 -138F #930830004 FHLMC 1535FA #930628023 TOTAL $1,000,000.00 02 -15 -16 2,000,000.00 01 -25 -22 2,000,000.00 08 -18 -05 1,000,000.00 08 -25 -23 $9,000,000.00 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the Treasurer be authorized to accept said securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this 10th day of January, 1995. ATTEST: Gary D. Plotz City Administrator Marlin Torgerson Mayor 1 rF) 0 CITY OF HUTCHINSON RESOLUTION NO. 10380 RESOLUTION ACCEPTING $ 172,500 FROM HUTCHINSON UTILITIES COMMISSION INTO GENERAL FUND AND TRANSFER OF $68,750 FROM GENERAL FUND TO CAPITAL IMPROVEMENT FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT a $172,500 transfer from the Hutchinson Utilities Commission is hereby accepted and shall be placed in the City's General Fund. THAT $10,000 of this transfer is for trees as authorized by the Tree Board. THAT a transfer shall be made at this time from the General Fund to the Capital Improvement Fund of $68,750. Adopted by the City Council this 10th day of January, 1995. ATTEST: Gary D. Plotz City Administrator Marlin Torgerson Mayor co or NNTCNINSON : MY CENTER III HASSAN STREET SE APPLICATION NUTCHINSON,IIN 55M25V FOR PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS 2" x 2" Picture required 0 How many days? 0 NAME and DRIIVER'S LICENSE INFORMATION L� NAME: PERMANENT ADDRESS: PERMANENT TELEPHONE: S TEMPORARY LOCAL ADDRESS: TEMPORARY TELEPHONE ACCESS: DRIVER'S LICENSE NUMBER (STATE) T•I` (/ Aim HEIGHT S--5-- WEIGHT / EYE COLOR ;^ _ES b 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 ......... ............................... $ 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 N0)_ IF YES, STATE NATURE OF OFFENSE AND PUNISHMENT OR PENALTY ASSESSED THEREFORE: -dt DESCRIBE NATURE OF BUSS,IN /E-SS AND DESCRIBE ITEM OFFERED/: le DESCRIBE METHOD OF DELIVERY: DESCRIBE YOUR SOURCE OF SUPPLY - NAME & ADDRESS OF SUPPLIER: /yr7`i 7'/Z Sc o-2 !V?e"- yo i lc .1 PROVIDE TWO (2) MCLEOD COUNTY PROPERTY OWNERS FOR CHARACTER REFERENCES: NAME & ADDRESS: it/ifLihiDR ��R�f1�iS NAME & ADDRESS: T 4, OLi4nHi nso ill) 5535 0 llvfcAlAjyo IV-41 '53- a PHONE NUMBER: & iZi �5-1- o416 PHONE NUMBER: L6W 59-7 - l 97 STATE LAST CITY YOU CARRIED ON SAME ACTIVITY: CITY /STATE NAME: L r 17. 4>`y DATE OF ACTIVITY: FROM: L C TO: 0 -2- 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 period not exceeding 90 days or both, plus, in either case, the costs of prosecution. signature of icant Date 4 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: 0 J -3- RELEASE OF INFOR?1ATION 0 As an applicant for a Peddlers /Solicitors /Transient Merchants License from the City of Hutchinson, Minnesota, I am required to furnish infor =a non which that agent;: may use in determining my moral, physical, menta: and. financial gcali.`ica- tions. In this connection, I hereby expressly authorize release of any and all iz- forration which you may have concerning me, including ir..`ormation of a con :ident :a: or privileged nature. I hereby release the agency with. which I am seeking application for license, and any organization, company or person furnishing inforcation to that agency as ex-pressly authorized above, from any liability for damage which may result from furnishing the information requested. Applicant's Full Printed `lame: (First) (xid 9 Applicant's Address: 100,2 a' (Number) (Str (City) (Cow Applicant's.Birth Date: Applicant's Place of Birth: /20 Applicant's Social Security No.. Applicant's Driver's License ho.: Date: / tl V y%1 0 Scam,72� � AA 5-S-3 1/7 ty) (State d Zip) 6l Applicant's Signature ,�(- C / 0 OWATONNA ° ATLANTA * PHOENIX ...... ............................... .. ............................... . ..................... JEFF S t.! 1-0 REPAIR 306 H 1(Y 7 E HUT:HI1SON MR 5533) TUPR NCIANC E E OWATONNA • ATLANTA • PHOENIX North Star Sea Foods •• _ Pacific Cod . Salmon . Halibut AK Bus M 658 Owners - Will & Ann Sliney • George Schmitz 161PO Box 8683 10028 50th St SW Kodiak, AK 99615 Howard Lake, MN 55349 907- 486 -8401 612 -543 -2116 w JAIL 3 / _e_ f� s MEMORANDUM TO: Chief Steve Madson� FROM: _t. Ron Zirc:_cff DATE: January 10. 1995 RE: Transient Merc:ant 'license for George Schmitz Upcn receiving the application for a transient permit license on George Schmitz, T_ conducted the following investigation. A character check Was conducted through Wright County and the state of Miii _ ^_esota revea_ira no criminal activity. While _nquiri:g into the 3ta -_e of Minnesota Bureau of Criminal Ap - rehensior., ? fo'anl no cri—inai activity listed to George Robert Sch itz or to the husiness, Northstar Seafoods. 'n c. ^.ecki_ng the persona: reference listed cm the appll:atron, Me = =nda Arens, she stated that George Schmitz is her uncle. She .as ..-:o.,;n him all her i ire and has n ^ *_ mown him to be involve in 4 _rin'�na_ activity. hag earl+er '-earned --rat i,r. Schmitz intended to sell Produce from a va- which would be located on the property of Jeff • Dahlberg a`_306 highway 7 East. y 3ased that information, i would recommend to the col:nc, that Mr. Schmitt be granted a transient merchant license. 20 1 °lC' vS', �7 ,Z/ -�± I 0 PUBLICATION NO. 4755 . PUBLISHED IN THE HUTCHINSON LEADER: TUESDAY, JANUARY 3, 1995 NOTICE OF PUBLIC HEARING M WHOM IT MAY CONCERN Notice is hereby given that a public hearing will be held on Tuesday, January 10, 1995 at the hour of 8:00 P.M. in the Council Chamber of City Hall for the purpose of: issuing an intoxicating liquor license to Russ Carter Jr., operator of a bar and grill at 16 -18 Main Street North, Hutchinson, MN, dba J's Bar 6 Grill. This hearing will be held by the City Council of the City of Hutchinson. At such hearing, all persons interested may be heard. December 28, 1994 Dated Finance Director 74 I 0 0 APPLICATION FOR ON -SALE INTOXICATING LI UOR LICENSE This form was prepared by the City of Hutchinson and the Minnesota Bureau of Criminal Apprehension, Department of Public Safety, pursuant to Minnesota Statutes, 1976, Section 340.13, for purposes of back- ground investigation. It does not supercede any laws, rules or regulations of the Division of Liquor Control regarding the issuance Of liquor licenses. Failure to provide information requested may result in denial of the application. Trade Name 2. Licensing Period 3. Type of Application: New Renewal 4. ���� &l9 79h Name /of /,A/pplicant 5. /Y N,? / e 7-iv j 6. Citizenship: 5A 7. 01h_isnG(A 7« Place of Barth 8. Address of 9. J C O /�%�� %y%� //l✓ Date of A plig tion 5.a Transfer. JZ -%55 -33/3 Phone Date B� th n 10. List Owners of building or premise to be licensed: ^ �`5� � � n 11. List all partners, officers or directors, if corporation: Name Fa S C C 4IZTFyZ _ -71! Llg,,e rL Address �sgixf� Date of Birth NAI 12. Prior experience in this type of business: DeiVAfe,& J. Present Ownership in any other liquor establishment: lv&w e-- 14. Present ownership in any other restaurant or food business: J ,$ S. Three Business 6. or Partnership Title kJ T / Kj (a 17. 1414tece iii 14 57 /Z1w A.liaay r�41 Corporate or Partnership Addresa i'- 18. If this is a transfer application give name, address, of persons, partnership or corporation holding license for the past year. 19. Who owns the bar /tavern fixtureq? �S MIAWeotjii- _ 20. Are you a Minnesota resident? i y Yes No /% �/ / � '5y U�J From To If not, where resident? Dates of Residency ) 21. Residential Address during Past Five (5) Years: % y Y�� �,j// �7/1� 22. Three Personal References: s el! / 4e-ro- — A)U nisi -/wI -2p — 23. Employment for the Past Five Years: /TGS 4. A,p : Other Than Minor Traffic: 25. This application must be accompanied by detailed statement of net worth and last year's tax ret�rn and statement of method of payment for business, fixtures and inventory. 26. Applicant, and his associates in this application, will strictly comply with all the Laws of the State of Minnesota governing the taxation and the sale of intoxicating liquor; rules and regulations promulgated by the Liquor Control Commissioner; and all ordinances of the municipality; and I hereby certify that I have read the fore- going questions and that the answers to said questions are true of my owe knowledge. I further understand that an investigation fee not to exceed $500.00 shall be charged ar app:',canr by the city or county if the investigation is conducted :. thin the state, or _..c cost nc' to exceed $10,000.00 if the investi- _ -ide tha state. I further understand the ordinances of the City of Hutchinson regarding the operation of on -sale liquor licenses and agree to abi y them. 5 gnature of Applic t Subscribed and sworn to before me this day of 19_ (Notary Public) My Commission Expires: 0 i i MEMORANDUM TO: Mayor and Council FROM: Steve Madson, Chief of Polic DATE: January 6, 1995 RE: J's Bar and Grill This department has completed the investigation into the application for a liquor license for J's Bar and Grill. The application was filed under the name • of Russ Carter who is the owner of J's Pizza Garden. J's Pizza Garden • currently holds a non - intoxicating license and this department has not had any problems with the owner or management. Concerning past problems with J's Sport Bar, it appears that Mr. Carter will not have Gene Doherty or any of the past licensees participating in the day to day management of the business. Mr. Carter has appointed a manager who resides within the community and has attempted to cooperate fully with the investigation. At this time, I would recommend approval of the issuance of the liquor license based upon the following contingencies: 1. Applicant produces a copy of current state restaurant license. 2. Inspection by building official for building code compliance. If you have any questions or concerns regarding this memorandum, please do not hesitate to contact me. —A 0 PUBLICATION NO. 4752 NOTICE OF HEARING ON PROPOSED IMPROVEMENT LETTING NO. 4 PROJECT NO. 95 -04 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 8:00 P.M. on the 10th day of January, 1995, to consider the making of an improvement of Hayden Avenue, Osgood Avenue and Fischer Street, and Lake Street from Roberts Road to 2nd Avenue SW by construction of sanitary sewer and services, watermain and services, storm sewer, grading, gravel base, concrete curb and gutter, bituminous base and surfacing and appurtenances, pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be assessed for such improvement is the benefitted property, for which property owners shall receive mailed notice. The estimated City cost of said improvement is $260,400.00 with an estimated $260,400.00 assessable cost, for the total estimated cost of $520,800.00. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: December 22nd, 1994. City Adminis PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON TUESDAY, DECEMBER 27TH, 1994 AND TUESDAY, JANUARY 3RD, 1995. of -- 0, 1995 PUBLIC HEARINGS W_= . i and Surrounding Areas (Osgood Avenue, Hayden Avenue, Lake Street, Fischer Street) (Letting No. 4 /Project No. 95 -04) Estimated Assessments EM RANGE AVERAGE STREET IMPROVEMENTS (includes curb & gutter) $36-43 /FF $ 40 WATER SERVICE $600 -900 /each $ 800 SANITARY SEWER SERVICE $600 -900 /each $ 800 STORM SEWER TRUNK $0.03 -0.05 /SF $ 0.04 DRIVEWAY $24-28 /SY $ 26 Typical Cost Per Lot 90' Wide Lot STREET IMPROVEMENTS $ 3,600 WATER SERVICE $ 800 SANITARY SEWER SERVICE $ 800 STORM SEWER TRUNK $ 400 DRIVEWAY (16' wide x 10' deeps 500 ESTIMATED TOTAL ASSESSMENT $ 69100 ($5,550 - 7,140) Notes Unit prices noted are estimated only and are not guaranteed. Actual assessments will be based on bids received. City pays for street oversizing, sideyards, intersections and previously paid areas. City pays for lateral watermain and sanitary sewer replacement costs. • Water and sewer services will be extended to the property line only. Extension from the property line to the house, if desired, is the responsibility of the home owner. • Water and sewer services will be assessed when main lines are replaced, requiring new service lines to be installed, or when homeowner requests new service. ate, 0 1995 PUBLIC HEARINGS z 11 I . � and Surrounding Areas (Osgood Avenue, Hayden Avenue, Lake Street, Fischer Street) (Letting No. 4 /Project No. 95 -04) Estimated Assessm ITEM RANGE AVERAGE STREET IMPROVEMENTS (includes curb & gutter) $36-43 /FF $ 40 WATER SERVICE $600 -900 /each $ 800 SANITARY SEWER SERVICE $600 -900 /each $ 800 STORM SEWER TRUNK $0.03 -0.05 /SF $ 0.04 DRIVEWAY $24-28 /SY $ 26 Tvnical Cost Per Lot STREET IMPROVEMENTS WATER SERVICE SANITARY SEWER SERVICE STORM SEWER TRUNK DRIVEWAY (16' wide x IO' deep) ESTIMATED TOTAL ASSESSMENT 90' Wide Lot $ 3,600 $ 800 $ 800 $ 400 500 S 6,100 ($5,200 - 6,700) Notes Unit prices noted are estimated only and are not guaranteed. Actual assessments will be based on bids received. • City pays for street oversizing, sideyards, intersections and previously paid areas. • City pays for lateral watermain and sanitary sewer replacement costs. Water and sewer services will be extended to the property line only. Extension from the property line to the house, if desired, is the responsibility of the home owner. Water and sewer services will be assessed when main lines are replaced, requiring • new service lines to be installed, or when homeowner requests new service. 0 ♦ WILL DESIGN PROJECT AND GO OUT FOR BIDS IF APPROVED AT PUBLIC HEARING ♦ ASSESSMENT HEARING TO BE HELD AFTER BIDS, PRIOR TO AWARD OF CONTRACT ♦ ACTUAL FINAL ASSESSMENT COSTS TO BE CALCULATED FOR ASSESSMENT HEARING, BASED ON THE ACTUAL PROJECT COSTS. ♦ INTEREST RATE WILL BE DETERMINED BY RATE THAT . CITY RECEIVES FOR THE PROJECT BONDS. ♦ PAYMENT OPTIONS: Full payment without interest by October 1 st Full payment with interest (from October 1st) by November 15th After November 15th, the assessments are certified to tax rolls Assessment on Tax Roll, 10 years with interest, Equal Principal Defennent available for property owners, meeting income guidelines, who are either over 65 years old or disabled. 0 0 RESOLUTION NO. 10369 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 4 PROJECT NO. 95 -04 WHEREAS, a resolution of the City Council adopted the 13th day of December, 1994, fixed a date for a Council Hearing on the improvement of Hayden Avenue, Osgood Avenue and Fischer Street, and Lake Street from Roberts Road to 2nd Avenue SW by construction of sanitary sewer and services, watermain and services, storm sewer, grading, gravel base, concrete curb and gutter, bituminous base and surfacing and appurtenances. AND WHEREAS, ten days' published notice of the hearing through two weekly publications of the required notice was given and the hearing was held thereon on the loth day of January, 1995, at which all persons desiring to be heard were given an opportunity to be heard thereon. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON. MINNESOTA: 1. Such improvement is hereby ordered as proposed in the resolution adopted the 13th day of December, 1994. 2. John P. Rodeberg is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 10th day of January, 1995. City Administrator Mayor R. • December 28, 1994 Dear Mayor and City Council Members I request that street lighting be installed in Walnut Ridge Townhouse and Walnut Ridge Estates Subdivisions, as soon as possible. June Redman 0 I] 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 ADMITTED IN TEXAS AND NEw YORK ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON. MINNESOTA 55350-2563 (612) 587 -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 January 4, 1995 Re: Popp Assessment Issues Our File NO. 3188 -94284 Dear Gary: OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA SS416 1612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 I write to you today regarding the above referenced matter. On Tuesday, December 27, 1994, I met with Cal Rice and John Rodeberg to go through the problems created by the 1968 and subsequent assessments for this property. It is my conclusion that the 1968 assessment is not enforceable and I would not recommend attempting to collect it. As to the connection fee, it would not appear appropriate, based on the unique facts of this case, to collect the connection fee from the prior fee owner of the property. The connection fee should be paid by the present fee owner (Neil Jensen) when he constructs his improvements. Alternatively, Jensen could be given the option of paying the assessment amount which is less than the connection fee, but does accurately reflect the cost of the improvements at the time of construction. Having said this, as a matter of policy, it is the recommendation of the engineering department and this office that we not attempt to collect the connection fee with respect to this property. It has become apparent in the last few months that it is probable that the street will be torn up by the State Highway Department when its improvements are installed in the next several years. The actual date of construction is, of course, unknown and could be anywhere from several years to a decade or more, but almost certainly when the street surface is removed significant utility CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION x i7 I * *CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION U Mr. Gary D. Plotz January 4, 1995 Page 2 improvements will be installed and additional assessments imposed at that time. As a matter of being proactive and avoiding problems in the future, it is our feeling that attempting to collect the fairly nominal connection fee or assessments for a 1968 project makes no sense when those improvements will likely need substantial revision or replacement within the next several years, based on recent developments. Under the circumstances, it is my recommendation that no attempt be made to collect the assessments and if the assessments were collected that the same be refunded to the property owner. Thank you for the opportunity to review this interesting legal problem. Best personal regards. Very GBA:lm cc W.B. Haas John Rodeberg Neil Jensen P. 11 0 0 0 HUTCH /NSON ENG /NEER /NG /PUBL /C WORKS DEPARTMENT Hutchinson City Center/ I I I Hassan Street SE / Hutchinson, Minnesota 55350 -2522 /Phone (612) 234 -4209 /FAX (612) 234 -4240 MEMORANDUM TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works DATE: December 8, 1994 SUBJECT: Consideration of Deferred Assessment for Sanitary Sewer and Watermain Neil Jensen (Popp's Electric/Dostal Olsen) Property Lots 6 & 7, Block 22 in North Half of City (PID 31- 117 -29 -11 -0760 & 0770) Attached is all the related information regarding the above referenced deferred assessment. As previously discussed with the Council, the facts as I know them are as follows: 1. The watermain and sanitary sewer were constructed in 1968. We have no record of an Assessment Roll including this project, nor is there a record we can find regarding a public hearing. 2. The City's first assessment occurred in 1961, with several sporadic assessments between then and 1969. Assessments started for most projects in or near 1969. Hearing notes and assessment rolls are available for most of these projects. 3. An assessment search for this property completed in 1977 made no reference to any deferred assessments. 4. In 1987, former City Engineer Marlow Priebe completed a "Deferred Assessment Manual" that detailed assessments that he noted as being deferred against properties inside and outside of the City. The City has since that point being noting these on Assessment Searches, although some conflict has arisen in the past (i.e. Fairgrounds Property, Augusta Homes, Wal -Mart, etc.). We have been adding interest to these in the past, although the interest has been waived in some cases. An assessment search completed on October 3, 1994 by our staff included the deferred assessments, including interest, from Marlow's report ($1,680.06 for each lot). December 8, 1999 - Deferred .dssessment Neil Jensen - Page 2 When we discussed this issue previously, it was noted that we have activated previous assessments in this project earlier, and many more deferred assessments are noted for this project, along the entire length of 3rd Avenue NW. We do have an ordinance in the Municipal Code that allows the City to assess a 'connection fee" of $2,500 for water service and $2,500 for sanitary sewer service if no previous assessment was made. This ordinance would apply in this case. As noted above, this charge would be well in excess of the deferred assessment paid. My concern is that the "deferred" assessment, and the sanitary sewer and watermain, are almost 30 years old. However, we must consider that a precedence will be set, and that there is certainly a benefit to the property from the sewer and water that exceeds the value of the assessment. Based on my review, I would recommend assessing a connection fee, as noted above and in the Municipal Code, or accept the "deferred" assessment that has been paid (which is several hundred dollars less) as full payment for benefits received cc: G. Barry Anderson, City Attorney Cal Rice, Engineering Department Pat VanderVeen, Engineering Department Jim Marka, Building/Zoning Official file: PID files (2) 0 0 DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' STEVEN S. HOGE LAURA K. FRETLAND DAVID A.- BRUEGGEMANN PAUL O. DOVE** RICHARD G. MDGEE CATHRYN D. REHER GINA N. BRANDT BRETT O. ARNOLD ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 -1492 `ALSO ADMITTED IN TEXAS AND NEW YORK Gary D. Plotz, City Administrator City of Hutchinson City Center 111 Hassan Street S.E. Hutchinson, MN 55350 RE: New Sales Tax Our File No. 3244 Dear Gary: (612) 545 -9000 FAX 16121545 -1793 OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 16121389 -2214 FAX 16121389-5506 December 28, 1994 101 PARK PLACE TCHINSON, MINNESOTA 55350 V 16121 587.7575 FAX 16121.5874096 T 11 y DEC . 8 in I understand that a request has been made for an opinion from this office regarding whether or not the City , of Hutchinson could simply extend a sales tax to restaurants in lieu of establishing a sales tax on all goods and services. Unfortunately, this issue is addressed by Minn. Stat. §477A.016 which specifically provides "no ... city ... shall increase a present tax or impose a new tax on sates or income." This legislation was adopted in 1981 and has remained essentially the same since ,that time. Under the circumstances, I must advise you that any additional tax, other than special assessments as authorized by the legislature and the lodging tax as previously imposed, and such other exceptions as are specifically authorized by the legislature, may be imposed only with the consent of the legislature. If you need additional information or have questions in connection with the foregoing, you should feel free to contact me. Thank you. Best regards. Very truly P.L.L.P. G. Barry GBA/pb q_} ) '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 RESOLUTION NO. 10368 0 THIS RESOLUTION is made and entered into by the Hutchinson City council on the 10th day of January, 1995. RECITALS: 1. The City of Hutchinson, a Minnesota municipal corporation, is presently faced with the need to complete several pending projects including but not limited to the following: A. Remodeling, refurbishing and replacement of portions of the Hutchinson Civic Center; B. Elimination of navigational hazards and threats to the public safety located in the Crow River; C. The completion of a regional softball complex and other related recreational facilities; D. The completion of a bicycle and walking paths commenced by the State of Minnesota through the City of Hutchinson. 2. All of the projects involve benefits to an area greater than the corporate city limits of the City of Hutchinson and include facilities used by residents in greater Minnesota; is 3. The City Council for the city of Hutchinson specifically finds that it would be fair, reasonable and just for a portion of the expense related to the projects described above, and similar projects, to be borne by residents of the area as well as by residents of the City of Hutchinson; 4. The City of Hutchinson is prohibited by Minnesota law from imposing any additional sales tax to pay for improvements described above. NOW, THEREFORE, the City of Hutchinson, by and through the Hutchinson City Council, respectfully requests that the State of Minnesota authorize the imposition of a one -half (1/2) percent sales tax on all retail sales within the City of Hutchinson for the purpose of constructing the improvements described above, as well as similar projects, and subject to such limitations as the legislature finds fair and reasonable including but not limited to a sunset provision of approximately five years and a vote by the residents of the City of Hutchinson prior to the imposition of the tax. Dated this 10th day of January, 1995. Marlin Togergson, Mayor Is Attest: Gary D. Plotz, City Administrator 9_ A, P 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 /.LSO ADMITTED IN TEXAS AND NEW YORK January 5, 1995 ARNOLD, ANDERSON & DOVE PP OFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW IOI PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 (612) 587 -7575 FAX(612)S87 -4096 Honorable Steven Dille State Senator State Office Building State Capitol St. Paul, MN 55155 Honorable Robert Ness State Representative State Office Building State Capitol St. Paul, MN 55155 RESIDENT ATTORNEY G. BARRY ANDERSON RE:- Hutchinson.Sales Tax Issues our File No.: 3188 -94227 Dear Steve and Bob: 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) 369 -2214 FAX (61 2) 369 -5506 JAN 5 "9 I'm enclosing for your consideration a copy of the draft resolution to be considered by the Hutchinson city council at its regularly scheduled meeting this coming Tuesday evening. I believe the mayor has been in touch with you on the issues involved with this request. It should be noted-that city council has not voted to approve the resolution and according, no official action should take place until the resolution is adopted. It is my understanding that other communities, most specifically Minneapolis, have a "use" tax. We are tempting to keep this proposal as simple as possible and the mayor has advised me that the city will not be requesting a "use" tax. I believe the city will also be looking for, in the special legislation, an exemption for automobiles, mobile homes and heavy construction equipment. CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION I * *CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. Dille Mr. Ness Page 2 January 5, 1995 I think it is also possible that the city council may wish to retain the right to continue to tax restaurants and liquor sales indefinitely because of the direct link of these businesses and the growing convention and tourism business here in Hutchinson. I trust the administration of the pecples business is going well. I look forward to visiting with each of you in the course of the next several weeks. Thank you. Best personal regards. Very truly yours,_ n P.L.L.P Q! Barry Anderson GBA:dfp cc: Gary Plotz, City Administrator 0 0 C TO: Mayor & City Council FROM: Dolf Moon, Director of P.R.C.E. Mary Haugen, Facilities & Operations Manager DATE: January 5, 1995 RE: Civic Arena Refrigeration System City staff has been working with Council members Craig and Mlinar researching alternatives for the replacement of the Civic Arena's current refrigeration system. Several discussions and meetings have taken place both with and without the consulting refrigeration engineer from Bonestroo & Associates. Additional discussions with advisory boards and user groups have taken place regarding options for the replacement and funding of the project. Based on these meetings and discussions, the following groups have come to a consensus on the recommended funding source and scope of the project. #1. City Staff Management Team 1i2. Parks, Recreation and Community Education Advisory Board N3. Parks & Facilities Standing Committee #4. Hutchinson Youth Hockey Association Board M5. Hutchinson Figure Skating Association Board We are asking the Council's approval on three items. Approval of each of these items is necessary if we are to have this project completed before our next ice season. Item #1 Fund the replacement through the existing Capital Improvement Fund in the amount of $500,000. Through our meetings with the engineer and the council sub - committee, we've been able to scale back the cost of the project to that amount. City Center Parks & Recreation Police Services 111 Hassan Street SE 900 Harrington Street SW 10 Franklin Street SW Hutchinson, MN 55350.2522 Hutchinson. MN 55350 -3097 Hutchinson, MN 55350 -2464 (612) 587 -5151 (612) 587.2975 Far (612) 234 -4240 Far(612)234 -4240 �� (612) 587 -2241 Fax(612)587 -6427 - Prinitd on rtcycltd paper - Mayor & City Council January 5, 1995 Page two 0 Item #2 Approve the replacement project identified as "Revised Option D" (attached) Revised Option D offers the City the following construction choices: #1 Use of commercial grade equipment #2 Removal/Demolition choices - City or Engineer (a,b) #3 Consideration of sand or concrete floor (h) With these revisions, the budget figure for the project is $498,500. During the bid process, the demolition of the floor and existing refrigeration equipment and the option for a sand or concrete floor could be handled as bid alternates. With somewhat of a menu to choose from, the project would be kept under budget. The attached sheet titled - Annual Dollar Amount Impact, scheduled to begin in October of 1995 addresses the ways that dollars will come back to the City through user fee increases, energy savings, and additional ice time sold. Approval of dedication of the $500,000 could be viewed as a no interest loan because the money will be repaid over the life of the system. Item #3 Enter into a contract with Bonestroo and Associates for engineering services. This firm has worked on a number of projects related to the Hutchinson Civic Arena. July 1989 Civic Arena retro -fit study June 1990 Construction of new entry-way May 1994 Civic Arena energy audit Oct. 1994 Analysis of existing refrigeration equipment They are a recognized leader in the design and renovation of ice arenas. With their existing background and knowledge of our building they could "hit the ground running" and begin work on the project immediately. The Civic Arena's refrigeration system has served its users well since 1977. A new energy efficient system needs to be installed soon to continue the City's commitment to recreational skating and youth hockey programs. Your approval of the project will ensure that the arena will be operating as Hutchinson's indoor ice facility well into the future. 0 �1'9 0 0 ANNUAL DOLLAR AMOUNT IMPACT ICE TIME FEE INCREASE/ENERGY SAVINGS EXTENDED SEASON Ice time increase (based on current usage) Youth Hockey Skating Program Energy savings estimate 450 hrs. tQ $20. 9,000 250 hrs. @ $20. 5,000 Total Extended ice season (adding 10 weeks to current season) 3,200 9,959 Total annual impact (includes summer season) $27,159 $27,159 x 20 yrs $543,180 Total annual impact (without summer season) $21,864 $21, 864 x 25 yrs $546,600 g- A OPTION D COST ESTIMATE HUTCHINSON CIVIC ARENA ICE FLOOR AND EQUIPMENT RENOVATION November 28, 1994 Option D: New indirect 100 ton refrigeration system with sand or concrete floor, is subsoil heating, and commercial grade equipment. REVISED OPTION D a. Demolition of existing floor slab $40,000 Optional b. Demolition of transmission piping, refrigeration plant & condenser 5000 Optional c. Construct perimeter rink apron and slabs 14000 14000 d. Excavate under rink slab 6500 6500 e. Install 6" clean sand sub -base and fine grade 15000 15000 f. Install sub -soil heating grid, related equipment and transmission mains 20,000 20,000 g. Install 3" insulation and 6 mil slip barrier 28,000 28,000 h. Install concrete or sand floor with 8" polyethylene headers, 1 -1/4" refrigeration piping, expansion joint and sealer 140,000 90,000 (Optional) • i. Upgrade building electrical service 10,000 10,000 j. Fabricate and install new 100 ton indirect refrigeration plant (COMMERCIAL GRADE) complete with direct expansion chiller, high pressure receiver, compressors, evaporative style condenser, remote sump and pump, chemical feed, brine pumps and insulated transmission mains 150,000 150,000 k. Construct building addition to house new refrigeration equipment 55,000 55,000 1. General conditions (8%) 39 (M 31 ppp SUBTOTAL $522,000 $419,500 10% or 8% contingency 52,E 330500 TOTAL ESTIMATED CONSTRUCTION COST $574,500 $453,500 Engineering plus shop drawing review, construction, administration, construction inspection, and soil borings 58,000 45,500 TOTAL COST - OPTION D $632,500 $498,500 is C. M E M O R A N D U M DATE: Jan 5th. 1995 TO: Mayor & City Council FROM: Randy DeVries. Dir of Water & Wastewater Operations SUBJECT: Lease agreement for a compost mixer Included in the 1995 wastewater budget was $26,000 for a compost mixer. I received quotes from the two local implement dealers, Schlauderaff Implement in Litchfield, and Schramm Implement of Hutchinson. Schlauderaft Implement's lease would be $655.91 per month for 24 months, with the purchase at the end of the lease at $8,224.80. The total would be $23.965.80. SSchramm Implement's lease would be $698.00 per month for 24 months, with the purchase at the end of the lease at $3,875.00, for a total of $20.627.00. The mixer from Schramm Implement did mix compost better. I recommend the lease agreement with Schramm Implement for this mixer, for $20,627.00. CC: Mr. Gary Plotz, City Mr. Kenneth Merrill, Mr. Mark Schnobrich, City Center I I I Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax(612)234 -4240 Administrator Finance Director City Forester Parks & Recreation 900 Harrington Street SW Hutchinson, MN55350 -3097 (612) 587 -2975 Fax(612)234 -4240 �/• - Primed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (612) 587 -2242 Fax(612)587 -6427 0 TO: Mayor & City Council FROM: Dolf Moon, Director of P.R.C.E. DATE: 1 -5 -95 RE: D.N.R. Trail Grant We have received agreements from the Department of Natural Resources Cooperative Trail Program. In order to begin the process of Grant Administration all copies must be signed. This Grant will close and provide trail development for the existing severance within the community. The intent is to connect the trail from Arch Street to Kimberly Estates Park. The Grant provides up to $11,000 and requires a hard match from the City. I propose that the City's share be obtained from existing Public Sites and Open Space Funds which currently has a $59,125.88 balance. The prospects of completing what was initially developed in 1989 is exciting and should relieve much of the trail routing frustrations experienced in the past, as well as improving this community asset. 0 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 AGREEMENT BETWEEN THE STATE OF MINNESOTA DEPARTMENT OF NATURAL RESOURCES AND THE CITY OF HUTCHINSON L042 -93-4 THIS AGREEMENT is made between the State of Minnesota, acting by and through its Commissioner of Natural Resources (hereinafter the 'State'); and the City of Hutchinson (hereinafter the 'Recipient). WHEREAS, The Minnesota Legislature by 1993 Minnesota Laws Ch. 172, Sec. 14, Subd. 10(p) appropriated $800,000.00 to the Commissioner of Natural Resources from the Minnesota Future Resources Fund (hereinafter the 'Fund') for a grant program to assist in the acquisition and development of local connections to planned and existing state trails and other public recreation facilities; and WHEREAS, the Recipient has proposed to connect existing trail within Hutchinson to the Luce Line State Trail from Garden Road to Arch Street. (hereinafter the 'Project and which has been approved by the Recipient's appropriate governing entity as evidenced by Attachment 'A' which is attached hereto and incorporated by reference herein. NOW THEREFORE, it is agreed between the State and the Recipient as follows: 1. GENERAL CONDITIONS 1.1 The maximum obligation of the State under this Agreement is limited to $11,000.00. 1.2 The Recipient acknowledges that these funds are proceeds from the Fund, which is subject to certain legal restrictions and requirements, including Minnesota Statutes Section 116P.13. The Recipient is responsible for 1- Cooperative Trail Program 9 -� 1.3 2. compliance with this and all other relevant state and federal laws and regulations promulgated pursuant thereto governing the proceeds of the Fund in the fulfillment of the Project. Further, the Recipient is responsible for obtaining all applicable permits, permission and /or interests in property necessary for the performance of this Agreement. CONTACT PERSONS The authorized contact person for the State is: Daniel A. Collins Department of Natural Resources/Trails and Waterways Unit 500 Lafayette Road St. Paul, Minnesota 55155 -4052 The authorized contact person for the Recipient is: Mr. Doff Moon, Director Parks and Recreation Department 900 Harrington Street Hutchinson, Minnesota 55350 The authorized fiscal agent for the Recipient is: Mr. Ken Merrill, Finance Director City of Hutchinson 101 Hassan Street Hutchinson, MN 55350 USE OF FUNDS The Recipient shall use the proceeds of this agreement only for the eligible costs of the Project as described in the approved Application and attached hereto as Attachment 'B" which is incorporated by reference herein. 2- Cooperative Trail Program i3. MATCHING FUNDS The State shall disburse funds to the Recipient pursuant to this agreement on a reimbursement basis. The State agrees to reimburse the Recipient fifty percent (50%) of its allowable costs, up to a maximum of $11,000.00. 4. PROJECT 4.1 PROJECT SPECIFICATIONS The Project shall be guided by the Application as approved by the State. After completion of the Project, the Recipient shall certify to the State that the Project, as conducted, conforms to the approved Application. Said certification must be filed in the State office by August 30, 1995 (no exceptions). . 4.2 ADMINISTRATION AND SUPERVISION The Recipient shall be responsible for the administration, supervision, management and Project oversight that may be required for the work performed under this agreement. The Recipient may employ such professional services as it deems reasonable and necessary to provide these services, subject to the provision of Section 5 (Costs). 4.3 ACKNOWLEDGMENTS Upon Project completion, the Recipient shall post a permanent funding acknowledgement sign at the entrance to the Project site, or at an alternative conspicuous location on the site. The sign will state that the site was cooperatively developed by the Minnesota Department of Natural Resources with funding coming from the Minnesota Legislature. 4.4 STATUS REPORTS The Recipient shall submit to the State any reports as the State shall 3- Cooperative Trail Program reasonably request. 4.5 DATA COMPATIBILITY This project need not conform to the data compatibility standards of 1993 Minnesota Laws, ch. 172, sec. 14, subd. 14. 5. COSTS 5.1 REIMBURSABLE COSTS Eligible costs shall be those costs directly incurred by the Recipient in preparation of and the actual conduct of the Project. Eligible costs shall be based upon the approved Application and can include the following types of costs provided they are solely related to and necessary for the completion of the Project: 5.1.1 Advertising costs solely for (1) Recruitment of personnel; (2) Solicitation of bids; and (3) Disposal of scrap materials; . 5.1.2 Capital and labor expenditures for facilities, equipment and other capital assets; 5.1.3 Communication costs incurred for telephone calls and postage; 5.1.4 Materials & supplies; 5.1.5 Freight transportation expenses; and 5.1.6 Professional services and Project administration costs provided that they do not exceed 20% of the total cost of the Project; 5.1.7 land acquisition (including permanent easements) whose value is established by a licensed appraiser and whose conclusions of value are certified by the state. Any cost not defined as an eligible cost or not included in the approved Application shall not be paid from State funds committed to the Project. 4- Cooperative Trail Program 0 i 5.2 NONREIMBURSABLE COSTS Noneligible costs for reimbursement means all costs not defined as eligible costs, including but not limited to the following: 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 Any expenditures before this agreement is executed; Fund raising; Taxes, except sales tax on goods and services; Insurance, except title insurance; Attorney fees; Loans, grants, subsidies to persons or entities for development; Bad debts or contingency funds; Interest; Lobbyists; Political contributions; 5.2.11 Wages and expenses of Recipient's employees; 5.2.12 Fringe benefit costs of Recipient's employees; and 5.2.13 Land appraisals. 6. REIMBURSEMENT PROCEDURES To obtain reimbursement under this agreement, the Recipient shall provide the State with evidence that the costs have been incurred. The State will make the final determination whether the expenditures are eligible for reimbursement under this agreement and verify the total amount requested. All reimbursement requests, including invoices, for this project must be received by the State on or before August 31, 1995. Reimbursement for formal construction contracts and the purchase of goods and /or services will be governed by the Financial Management Manual that is attached as Attachment 'C" and incorporated by reference herein. Prior to reimbursement for land acquisition, the Recipient must file a perpetual 5- Cooperative Trail Program 7 n 9. 10. easement referenced in Paragraph 14 hereinbelow with the county recorder and provide a copy of same with the State. 9 ACCOUNTING AND AUDIT The Recipient shall maintain books, records, documents, and other evidence pertaining to the costs and expenses of implementing this agreement to the extent and in such detail that will accurately reflect the total cost of the Project and all net costs, direct and indirect, of labor, materials, equipment, supplies, services, and other costs and expenses. The Recipient shall use generally accepted accounting principles. All records shall be retained until June 30, 2000. The State, its representative, or the legislative auditor shall have the right to examine books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all direct and indirect costs. The Recipient shall make available at all reasonable times and before and during the period of records retention proper facilities for such examination and audit. NONDISCRIMINATION The Recipient in the conduct of the Project shall not engage in discriminatory employment practices and shall in all respects comply with Minnesota Statutes, Sections 363.03 and 181.59 and all applicable rules and subsequent amendments. WORKERS COMPENSATION The Recipient in the conduct of the Project shall comply with the provisions for workers compensation in Minnesota Statutes, Sections 176.181and 176.182. LIABILITY 6- Cooperative Trail Program • Each party agrees that it will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of the other party and the results thereof. The State's liability shall be governed by the provisions of the Minnesota Tort Claims Act, Minn. Stat. Section 3.736, and other applicable law. 11. CONVERSION OF USE The Recipient shall not, prior to July 1, 2010, convert any property developed pursuant to this Agreement to uses other than those specified in this Agreement without the prior written approval of the State. 12. TERM 12.1 EFFECTIVE DATE This Agreement shall become legally effective upon such date as it is executed by the Commissioner of Finance. 12.2 TERMINATION If the State finds that there has been a failure on the part of the Recipient to comply with the provisions of this Agreement, that reasonable progress has not been made, or that the purposes for which the funds were awarded have not been or will not be fulfilled, the State may take action to protect the interests of the State including, but not limited to, the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 12.3 AMENDMENTS This Agreement may be amended in writing by the mutual agreement of the State and the Recipient. 0 7- Cooperative Trail Program 13. ANTI -TRUST PROVISION The Recipient hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and /or services provided in connection with the Agreement resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. 14. The Recipient agrees to grant to the State a perpetual easement for the general public to use the subject property for recreational trail purposes. Attached hereto as Attachment "D' and incorporated by reference is a copy of the indenture to be filed with the county recorder. 0 8- Cooperative Trail Program 0 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement intending to be bound thereby. Commissioner of Natural Resources M Title: Date: Approved as to form and execution Hubert H. Humphrey, III By: Assistant Attorney General Date: Commissioner of Finance By: Title: Date: City of Hutchinson By: Title: Date: H:ooftact.xq 9- Cooperative Trail Program LIST OF ATTACHMENTS A Certification and approval by board or council B Approved Application C Financial Management Manual D Recreational Trail Easement 0 10- Cooperative Trail Program 0 0 0 MEETING NOTICE January 4, 1995 TO: Telecommunications Commission FROM: Paul L. Ackland, Chair SUBJECT: CABLE FRANCHISE RENEWAL There will be a meeting of the Telecommunications Commission on Monday, January 9. 1995, at 5:00 P.M. in the Main Conference Room of City Center. Please plan to attend as we will be considering the renewal of the cable franchise and a recommendation to the City Council for its meeting on January 10, 1995. 9 -F HUTCHINSON ENG /NEER /NG /PUBL /C WORKS DEPARTMENT Hutchinson City Center/ I I I Hassan Street SE / Hutchinson, Minnesota 55350 -2522 /Phone (612) 234 -4209 / fAX (612) 234 -4240 MEMORANDUM TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering /Public Works DATE: January 5, 1995 SUBJECT: Resolutions Regarding Proposed Letting No. 8: Project No. 95 -10: McDonald DrivelPark Island Drive to Barley Street Project No. 95 -11: McDonald Dr. & Roberts Rd. Trunk Storm Sewer Project No. 95 -12: Roberts Road/McDonald Drive to Harvest Street ■ Following this Memorandum are Resolutions Ordering Preparation of Report, and Receiving Report and Calling For Hearing for the above referenced projects. The following is a description of the projects, and brief notes regarding the proposed assessments. Project No. 95 -10: McDONALD DRIVE (Park Island Drive to Barley y treet) This project includes the completion of McDonald Drive from School Road to Lakewood Drive. We have negotiated a right -of -way with Loretta and Darrel McDonald. The project includes storm sewer, completion of an important watermain loop to serve the SE portion of the City, and street improvements. The project is proposed to be assessed using the City policy for newly annexed property. The McDonalds own several large lots. Lots currently served will be assessed, potential lots that could be subdivided later will be deferred. A credit is proposed for previous expenditures for roadway improvements. Project No. 95 -11: McDONALD DR. & ROBERTS ROAD TRUNK STORM SEWER This project includes completion of the trunk storm sewer to serve the area, as noted in the report from Ban Engineering. Undersized storm sewer lines near McDonald Drive and Roberts Road have been severally overloaded, creating storm sewer pipe separation and failure, and failure of the street over the storm sewer. The storm sewer on McDonald Drive, from just east of Tyler Street to Roberts Road, will be replaced with a larger line, and a new line will be extended along Roberts Road to the new pond at Roberts Park. . A portion of the project will be assessed to newly developing property that will utilize the line, on an area basis. The remainder will be at the City's expense. Letting No. 8 :Ltemorandum January 5, 1995 - Page 2 Project No. 95 -12: ROBERTS ROAD (McDonald Drive to Harvest Street) is This project includes completion of the curb, gutter and street construction adjacent to existing homes just north of McDonald Drive, as well as bituminous overlay and paved shoulder construction on Roberts Road as far as Harvest Street. This section is showing signs of failure and needs an overlay. Also, due to the expansion in the SE area of the City, paved shoulders are needed for pedestrian and bicycle access to Roberts Park and surrounding areas. The section of improvements adjacent to existing homes will be assessed. The remainder of the cost will be at the City's expense. These projects are all needed to serve the existing and proposed development in this area of the City. I recommend proceeding with the projects as noted. Please let me know if you have any questions or comments. cc: Cal Rice - Engineering Department file: L8/95- 10,11,12 I* 0 Hutchinson City Center / I I I Hassan Street SE / Hutchinson, Minnesota 55350 -2522 / Phone (612) 234 -4209 / FAX (612) 234 -4240 ENGINEERINGREPORT TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works DATE: January 5, 1995 SUBJECT: Letting No. 8/Project No. 95 -10, It and 12 I have studied the following areas and find that the proposed project is feasible and recommend it be constructed. If acceptable, I recommend a hearing be held on the 14th day of February, 1995. Project No. 95 -10: McDonald Drive from Park Island Drive to Barley Street by the construction of storm sewer, sanitary sewer, sewer services, watermain, water services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances; Project No. 95 -11: McDonald Drive from Park Island Drive to Roberts Road and Roberts Road from McDonald Drive to Otter Lake by construction of storm sewer, street restoration and appurtenances; Project No. 95 -12: Roberts Road from McDonald Drive to Harvest Street by construction of grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances. Construction Cost Engineering/Adm inistraton Fiscal/Legal/Interest ESTIMATED TOTAL Assessable Cost Deferred Assessable Cost City Bonded City Other Funds MSA Mn/DOT ESTIMATED TOTAL 959510 95=11 959512 TOTAL $130,000 $130,000 $ 70,000 $330,000 $ 20,800 $ 20,800 $ 11,200 $ 52,800 $ 10,400 $ 10,400 $ 5,600 $ 26,400 $161,200 5'161,200 S86,800 S409,200 $ 60,000 $ 20,000 $ 21,000 $101,000 $ 60,000 $ 40,000 $ 5,000 $105,000 $ 41,200 $101,200 $ 60,800 $203,200 $161,200 $161,200 S 86,800 $409.20 0 cc: Cal Rice - Engineering Department file: L8/95 -10, 11, 12 9 -G RESOLUTION NO. 10370 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 8 PROJECT NO. 95 -10, 95 -I1, 95.12 WHEREAS, it is proposed to improve: Project No. 95 -10: McDonald Drive from Park Island Drive to Barley Street by the construction of storm sewer, sanitary sewer, sewer services, watermain, water services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances; Project No. 95 -11: McDonald Drive from Park Island Drive to Roberts Road and Roberts Road from McDonald Drive to Otter Lake by construction of trunk storm sewer, street restoration and appurtenances; Project No. 95 -12: Roberts Road from McDonald Drive to Harvest Street by construction of grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances. WHEREAS, it is proposed to assess the benefitted property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement be referred to the Director of Engineering for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. Adopted by the Council this 10th day of January, 1995. City Administrator Mayor RESOLUTION NO. 10371 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 8 PROJECT NO. 95 -10, 95 -11, 95 -12 WHEREAS, pursuant to a resolution of the Council adopted January 10, 1995, a report has been prepared by the Director of Engineering, with reference to the improvement of: Project No. 95 -10: McDonald Drive from Park Island Drive to Barley Street by the construction of storm sewer, sanitary sewer, sewer services, watermain, water services, grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances; Project No. 95 -11: McDonald Drive from Park Island Drive to Roberts Road and Roberts Road from McDonald Drive to Otter Lake by construction of storm sewer, street restoration and appurtenances; Project No. 95 -12: Roberts Road from McDonald Drive to Harvest Street by construction of grading, gravel base, concrete curb and gutter, bituminous base, bituminous wear course and appurtenances. Said report was received by the Council on January 10th, 1995. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvements of such streets in accordance with the reports and the assessment of benefitted property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429, at an estimated total cost of the improvement of $409,200.00. 2. A public hearing shall be held on such proposed improvements on the 14th day of February, 1995, in the Council Chambers of the Hutchinson City Center at 8:00 P.M., and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 10th day of January, 1995. Mayor City Administrator r_ C • I January 5, 1995 City Council Members City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 Dear City Council Members: The Convention and Visitors Bureau and the Hutchinson Area Chamber of Commerce request a change in the lodging tax. We would like to increase from the present two - percent to three - percent. This increase will be used to hire a part -time sales person to promote Hutchinson to potential new conventions, meetings and overnight stays. At this time we have 127 rooms that have agreed to the change and 71 rooms that disagree, which includes the new motel to be built. Sincerely, G� Ax� Vi Mayer Executive Director tv Hutchinson Area Convention & Visitor Bureau 45 Washington Avenue East • Hutchinson, MN 55350 • 612 -587 -5252 § 6.40 SEC. 6.40. LODGING TAB. 0 Subd. 1. Definitions. The following terms, as used in this Section, shall have the meanings stated: 1. "Lodging" - The furnishing for a consideration of lodging by a hotel, motel, bed & breakfast, public /private campground except where such lodging shall be for a continuous period of thirty (30) days or more to the same lodger(s). The furnishing of rooms owned by religious, educational or non - profit organizations for self- sponsored activities shall not constitute "lodging" for purposes of this program. 2. "Operator" - The person who is the proprietor of the lodging facility, whether in the capacity of owner, lessee, sublessee, licensee, or any other capacity. 3. "Rent" - The total consideration valued in money charged for the lodging whether paid in money or otherwise, but shall not include any charges for services rendered in connection with furnishing lodging other than the room charge itself. operator. 4. "Lodger" - The person obtaining lodging from an Subd. 2. Imposition of Tax. 0 A. Pursuant to Minnesota Statute Section 477A.018, a tax is imposed on the rent charged by an operator for providing lodging to any person. The lodging tax program shall commence on March 1, 1989. A tax of two percent (2 %) shall be imposed on the effective date of this Section. T e ax collected by the operator shall be extinguished only by payment to the City. In no case shall the tax imposed by this subdivision upon an operator exceed the amount of tax which the operator is authorized and required by this program to collect from a lodger. Source: Ordinance No. 91 -31, 2nd Series Effective Date: April 18, 1991 Subd. 3. Collections. Each operator shall collect the tax imposed by this program at the time the rent is paid. The tax collections shall be deemed to be held in trust by the operator for the City. The amount of tax shall be separately stated from the rent charged for the lodging and those persons paying the tax shall receive a receipt of payment from the operator. Subd. 4. Exceptions and Exemptions. 143 (4 -1 -91) �+ tZ1 C Hutchinson, MN 55350 Hutchinson City Council Hutchinson, MN 55350 Dear Members of the Council: JAN a tss5 As concerned citizens, business owners, and tax payers we would like to express our opposition to the proposed lodging tax increase. Our research indicates that the majority of customers patronizing small motels such as ours have an average annual household income of less than $30,000. Moreover statistics also reveal other interesting facts. First, most clients pay for their rooms out of their own pockets and are not reimbursed by their employers. Second, our guests are extremely price sensitive and list affordability as the number one reason for staying at our motel. Third, our customers would overwhelmingly stay in another nearby town to save money on their rooms. In light of the above it stands to reason that, with such a price sensitive customer base, any increase in room costs would have a substantially negative affect on our business. Hence a lodging tax increase on motels would undoubtedly be regressive and could, in our case, actually reduce overall tax revenues due to lost business. The local economy is such that many out of town business men and women visit our area. The employers of these individuals almost always pay for their employees' lodging. Consequently, this market segment is far less prone to choose a motel based upon lower price. Further, impromptu surveys we have conducted reveal that the vast preponderance of this market segment stays at the newer, larger, "chain" motels and not at the "mom and pop" motels such as . ours. Obviously an increase in the lodging tax would more adversely impact small, owner - operator motels than A would the larger chain motels. Fortunately for our area the local economy appears to be expanding. This has brought about a larger tax base and a sense of general prosperity. This situation is reflected in the fact that another new, chain motel is scheduled to open soon. Obviously, with this latest additicn, the lodging tax base will increase on its own. Moreover, the jobs created by this new business will also help. Thus, why would it be necessary to further raise lodging tax rate if revenues are going to increase on their own? Moreover, with a growing local economy are not tax receipts up anyway? We would like to close by recapitulating our opposition to the lodging tax increase. First, the small, owner - operator motels have an extremely price sensitive clientele. As demonstrated in the past a lodging tax increase is regressive and may actually jeopardize our livelihood. Second, the larger, chain motel customers are less price sensitive. Consequently a lodging tax increase will not affect the larger motels as dramatically as it would ours. Third, with a growing economy and another new, chain motel opening soon, the tax base should be expanding on it own obviating the need for any tax increase. We realize that managing our local government is a daunting task. It is full of tough decisions and impossible demands. Thus if you feel you must raise the lodging tax please do not make it into a regressive situation - a situation that deprives the small business owner of his livelihood. Instead, at least exempt the smaller motels with relatively low annual gross receipts. In this way the impact of such a tax hike would be minimized. Sincerely, �>/t�ti.0 1 ✓/ l /� Hutchinsont rea Small Motel Owners Hutchinson City Center/ III Hassan Street SE / Hutchinson, Minnesota 55350 -2522 /Phone (612) 234 -4209 /FAX (612) 234.4240 MEMORANDUM TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works DATE: January 5, 1995 SUBJECT: Consideration of Petition on Harmony Lane and Lincoln Avenue Letting No. 5/Project No. 95 -05 As presented at the previous Council meeting, we have received a petition from 30 of the 47 properties (and the attached letter) from the residents on the mailing list for the above project requesting that the project not be completed, mainly due to cost considerations. I have requested a clarification from City Staff as to the condition of the infrastructure, copies of which are attached. As noted by the reports, the infrastructure on the project site is in extremely questionable condition: I . The watermain on both streets is 4" in diameter only. The City requires 6" minimum and 8" standard diameter for fire protection and adequate service. In addition, the watermain may be transite and may have lead in the service lines. Also note the water pressure appears to be inadequate for full fire protection without assistance from other lines. 2. Randy has reviewed the television report and tapes from the televising completed in 1987. He has noted that these lines are in as poor shape as any lines that he has reviewed. Many manholes are also of brick construction, which indicate the age of the system. These manholes tend to have high leakage rates and high maintenance costs. 3. Larry Karg has noted that 28.5 tons of bituminous material were placed in 1993 and an additional 28 tons in 1994. At an price of $24 /ton we have spent approximately $750 /year for material. The average crew time is 0.5 hours per ton with a four man crew and equipment. At $180/hour for the crew, this averages to be $2,550 /year, for a total cost of approximately $3,300 /year. This cost will increase as the street deteriorates and costs rise. Also note that claims have been filed against the City in1he past for injuries related to uneven pavement. Although I would prefer to defer the project, based on the desires of the property owners, I am concerned that the City's liability regarding the status of the infrastructure may be too great. The City Council should review the City's liability and responsibility with the City Attorney prior to making ajudgement. cc: Cal Rice, Randy DeVries, Larry Karg, Dick Nagy file: L5/95 -05 Jt HUTCHINSON ENGINEER /N6 /PUBLIC WORKS DEPARTMENT Hutchinson City (enter/ III Hassan Street SE / Hutchinson, Minnesota 55350.2512 /Phone (612) 234.4109 /FAX (612) 234.4240 M E M O R A N D U M FOR YOUR INFO,RMATIP TO: Randy DeVries, Director of Water/Wastewater Operations Dick Nagy, Water Systems Supervisor Cal Rice, Assistant City Engineer Larry Karg, Street Supervisor FROM: John P. Rodeberg, Director of Engineering/Public Works DATE: December 22, 1994 SUBJECT: Water Pressure Lincoln Avenue and Harmony Lane (Letting No. 5/Project No. 95 -05) ■ We have proposed to reconstruct the sanitary sewer, watermain and street on the above referenced streets. After the Public hearing we received a petition by 30 of the 47 effected property owners noting that the project is not necessary and is too costly. The reports to me indicate that there is 4" diameter watermain in- place, and the sewer system televising has noted substantial cracking in the sanitary sewer line on Harmony Lane. Also the street surface on Harmony Lane has shown extreme deterioration. The Lincoln Avenue bituminous is in better shape Could you please verify the above comments regarding. Sewer condition based on the television review Water pressure and incidence of failure, if any Likelihood of lead in the water service Condition of road, cost spent this year, expected cost over next few years My concern is that the City has a liability if these items need to be replaced due to the likelihood of sewer collapse and sewage back -up, lack of fire protection and injury due to street condition. 1 also want to make sure that the maintenance budgets are not unduly burdened. It appears as if Harmony Lane is in worse shape than Lincoln Avenue, and both streets do not have to be done at the same time. Please give me a call if you have any questions or comments. E cc: City Council file: 1-5/95 -05 . 9_�_71 C DATE: December 30, 1994 TO: John Rodeberg FROM: Randy DeVries SUBJECT: Harmony Lane & Lincoln Water and Sanitary Sewer Main Lines I have reviewed the sanitary sewer T.V. for Harmony Lane and Lincoln Ave. The line on Harmony Lane has many Radial cracks, offset joints, vertical misalignments, missing pipe, and longitudinal cracks, this line is in poor shape. The sanitary sewer on Lincoln is in better shape, but does have a few problems. This line has many roots at the joints, offset joints, vertical misalignment, and one bad radial crack. This line needs a manhole also. Both of these lines are VCP, and will get worse as they get older. The manholes on Harmony Lane are in poor condition, with two of them being brick. The manholes on Lincoln are in better shape. The water mains and services are addressed by Dick Nagy by attached letter. City Center Parks & Recreation I I I Hassan Street SE Police Services 900 Harrington Street SW Hutchinson, MN 55350 -2522 10 Franklin Street SW Hutchinson, MN 55350 -3097 (612) 587 -5151 (612) 587 -2975 Hutchinson, MN 55350 -2464 (612) 587 Fax(612)234 -4240 -2242 [[[ Fax(612)234- 4240 Fax(612)587 -6427 - P,wed m recn, led Pape, interoffice M E M O R A N D U M to: Randy DeVries Cc: John Rodeberg f rom: Richard Nagy, City of Hutchinson re: Harmony Lane Flow Test date: December 28, 1994 On 12/23/94 water department staff conducted a hydrant flow test on Harmony Lane. The results are as follows. Static 63 p.s.i. Residual 50 p.s.i. Pi tot 8 p.s.i. 2 1/2" nozzle This gives a flow of 480 g.p.m., 914 g.p.m. @ 20 p.s.i. Checking of valves indicate a 4" main. It is also suspected that the water main in the area of Lincoln Avenue and Harmony Lane could be made of transite material ( asbestos ). We have not experienced any incidence of failure with the water main recently other than a few service line failures. Service lines in this area appear to be a mix of copper and galvanized pipe with the possibility of some lead pipe services. From the desk of... Richard Nagy Water Systems Supervisor City of Hutchinson 111 Hassan St. SE Hutchinson, MN 55350 tel: (612) 234 -4222 fax: (612) 234 -4240 9s c December 28, 1994 TO: JOHN RODEBERG - DIRECTOR OF ENGINEERING /PUBLIC WORKS /CITY COUNCIL FROM: LARRY KARG - STREET DEPARTMENT SUPERVISOR SUBJECT: HARMONY LANE PROJECT NO. 95 -05 It is sad to see so many of the residents signing the petition against improvements on Harmony Lane. I am wondering if it is the same residents that called our office numerous times during the summer requesting our department to patch and repair this street because of potholes and washouts after rainfall. Harmony Lane was never graded and shaped properly after the curb was put in over ten years ago. At that time Marlow Priebe and the council had indicated we would return to this area and hard surface the street. So far this has not happened. At the time of the curb and gutter installation the street department temporarily graded and shaped the street, hauled gravel where necessary, dust coated, and applied a seal coat assuming this would need to last only five years until the city would return with a hard surface street. Therefore, we have been patching on only a seal coat base street all these years. The amount of time and material the department has spent over the years on the street has steadily been increasing. In 1993 a documented 28.5 ons was used, in 1994 28 tons was used. This does not include -:.he miscellaneous times when the patching crew went to Harmony .ane to repair one or more singular potholes. There are only 120 prime working days through the summer months and constantly going back to a street to patch it takes away from needed maintenance on other permanent streets that residents have been assessed for. Residents on Harmony Lane have only been assessed for curb. The average amount of labor to patch one ton of blacktop is around 1/2 man hour per ton. An average patching. crew consists of four people. Therefore, we must multiply the man hours per ton times four. This includes preparing the patch, 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 Far(612)234 -4240 - Printed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 J' (612) 587 -2242 ` Fax(612)587 -6427 the actual patching, and cleanup of equipment after the process. So in the last two years the department has spent around 124 man hours patching Harmony Lane. If this project is stopped or delayed, I would ask that the staff and council develop a guide of procedures as to what methods of repair will be authorized on streets of this nature. It is my recommendation that the city council seriously consider some street construction in this area. Harmony Lane is to the point where maintenance time and material will only increase, especially due to the aging nature of the seal coat that was applied over ten years ago. Also, the high center crown of the street presents problems for proper winter snow removal. The thin nature of the surface presents problems in the operation of the street sweeper and vac -all in this area. Thank you for your consideration. 0 T Whom It May Concern From Charles D. Carlson 585 Lincoln Avenue Hutchinson MN 55350 r - — December 20, 1994 RE City of Hutchinson Project 95 -05 Proposed improvement of Harmony Lane and Lincoln Avenue As a resident of Lincoln Avenue, I can only address the situation of Lincoln Avenue. 1. The last two homes built on Lincoln Avenue were ours at 585 Lincoln in 1965 and 575 Lincoln Avenue in 1966. We as well as three others on the North side of the avenue have sewer hook -ups to the trunk line along the river. The other 8 to the east end of the block are hooked -up to a street sewer and I know of no problems with that arrangement. 2. None of the homes on the north side of Lincoln avenue have been included in the storm sewer system as we have natural drainage to the river. As pointed out to the city, we do have some problem with storm drainage off the street to the south side of the street. 3. The water main has been adequate to this time, and as mentioned above, there will be no additional hook -ups as there are no building lots left on Lincoln Avenue. This water main was perhaps installed in 1948 or 1949 when the area was platted and developed. 4. sometime in the early 1950's, curb and gutter were installed, the top soil excavated and city installed a cold -mix blacktop of adequate thickness such that the street has held up very well for perhaps 40 years with a very minimum of maintainance and very few seal coats added. There are no potholes and at some date perhaps an overlay coating would be sufficent. It is after all a residential street with very in- frequent truck trafic. Why fix it if it ain't broke. 5. And finaly, we, as part of the general public, and the feelings they have shown in the last election, want government to slow down the spending of public (Taxpayers) and private money. It is known that Hutchinson has a high rate of per capita debt even though the cities bond rating is still very good. This project was deleted from the 1994 work program in part because of fiscal restraint, and there is no good reason why it can not be deleted again. Sincerely, '04 Charles D. Carlson P. S. I would have attended the public hearing on December 13, but I had a previous engagement set long before the notice of the hearing. q,s ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE DAVID B. ARNOLD' HUTCHINSON, MINNESOTA 55350-2563 OF COUNSEL STEVEN A. ANDERSON RAYMOND C. LALLIER G. BARRY ANDERSON" (612)587 -7575 JANE VAN VALKENBURG STEVEN S. HOGE FAX (612) 587 -4096 LAURA K. FRETLAND 5881 CEDAR LAKE ROAD DAVID A. BRUEGGEMANN RESIDENT ATTORNEY MINNEAPOLIS, MINNESOTA 55416 PAUL D. DOVE** G. BARRY ANDERSON (612) 545 -9000 RICHARD G. McGEE FAX (6t 2) 545 -1793 CATHRYN D. REHER GINA M. BRANDT 50t SOUTH FOURTH STREET BRETT D. ARNOLD January 6, 1995 PRINCETON, MINNESOTA 55371 (612) 389 -2214 ALSO ADMITTED IN TEXAS AND NEW TORN FAX 1612) 389 -5506 Mr. Gary D. Plotz, City Administrator Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 Re: Hospital /Nursing Home Board Ordinance Our File No. 3188 -87031 Dear Gary: At the request of the President of the Hospital, Phil Graves, I have reviewed our existing Hospital Ordinance. It appears that the terms of office for members of the Board of Directors expire in June and for a variety of reasons, it makes sense to make the length of those offices coterminous with other Boards and Commissions within the City and to have them expire at the end of the year. The ordinance which I am enclosing with this correspondence is designed to achieve this result. The changes do result in the extension of terms of office by six months and according to the information provided to me by Marilyn Swanson, the following directors have the following terms of office: Tom Daggett - December 31, 1995; Jim Mills - December 31, 1997 Paulette Slanga - December 31, 1997; Elaine Black - December 31, 1998; Richard Myers - December 31, 1998. As I read our ordinance, none of the directors, with the exception of Paulette Slanga, are eligible for renomination at the time their terms expire. If you have any questions or problems in connection with any of the foregoing, you certainly should feel free to contact me. Thank you. Best regards. A VARNO AN R11 & VE, P.L.L.P. G. ffa-1-WVnd&rson GBA:lm EnclOAUERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ORDINANCE NO. 95-124, 2ND SERIES PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING CITY CODE CHAPTER 2.58 ENTITLED "HOSPITAL AND NURSING HOME BOARD" 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. 2.58 entitled "Hospital and Nursing Home Board" Subd. 1, is hereby amended as follows: Subd. 1. Establishment and Composition. A Hospital and Nursing Home Board (the "Board ") is hereby established. The Board shall be composed of seven members, one of whom shall be the Chief of the medical staff of the Hospital and one of whom shall be a member of the City Council appointed annually. The medical staff representative shall serve a two year term. The remaining five members of the Hospital Board (the "Elected Directors ") shall each serve for a term of four years with the terms of each such elected directors to begin and expire as follows: tioie direeters auly 1, • aa32 expire an; DCelnbex 31r 1597 !:and tt�s diztors wham :rm sfsall expire ©n liecember 31, 3598. At all times, a majority of the directors shall be residents and qualified voters of the City. Prior to the expiration of the term of an Elected Director, his or her successor shall be nominated by the Mayor with the consent of the City Council. The nomination shall be submitted to the Board of Directors of LifeSpan (The "LifeSpan Board ") for election. If the LifeSpan Board fails to elect such nominee, then the Mayor, with the consent of the council, shall promptly submit new nominations to the LifeSpan Board, as necessary, until the LifeSpan Board has elected a successor to the Elected Director whose term is then expiring; provided, however, that if the LifeSpan Board fails to elect a successor from among the first, second and third nominees, then the Mayor, with the consent of the City Council, may elect the successor to the Elected Director whose term is then expiring provided that the Hospital's affiliation with LifeSpan is then terminated pursuant to Subdivision 5 of this Section. A majority of the members of the Hospital Board shall not consist of persons who are simultaneously directors of any one of the following corporations: (1) LifeSpan; or (b) any other corporation, the directors of which are directly or indirectly elected by LifeSpan; or (c) any other corporation, the directors of which are directly or indirectly elected by the Hospital. 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. 9-K. Section 3. This ordinance shall take effect upon its adoption • and publication. Adopted by the City Council this day of January, 1995. Attest: Gary D. Plotz City Administrator Published in the First reading:_ Second reading:_ Marlin Torgerson, Mayor Hutchinson Leader on • 0 1] 0 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 ADMITTED IN TE.5 AND NEW YORK ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 1612) 587 -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 January 4, 1995 Re: Dooley Ordinance (Reverter) Our File No. 3188 -87001 Dear Gary: OF COUNSEL RAYMOND C. LALLIER JANE VAN VALKENBURG 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 1612)545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 I have now received from Willard Pellinen the legal description of the property affected by the encroachment of the Hometown Realty building on City right of way. There are a couple of different ways to deal with this problem. A franchise can be granted since this is City right of way and under Chapter 10 of the City Code, a franchise is required when there is any permanent or semi permanent fixture in, over, upon or under "any street or public place." The problem, of course, is that such a franchise has a 20 year term under Section 10.02 of the City Charter and thus requires renewal. It is extremely unlikely that this minimal encroachment will cause any problems for the City, but it is conceivable that at some point in the future, the building may be destroyed, moved or otherwise no longer present. Under those circumstances, it is my opinion that the right of way should revert to the City of Hutchinson and it is on that basis that I have crafted the enclosed ordinance. This ordinance vacates municipal right of way, but it reserves to the City the right to reacquire the property, without any affirmative action whatsoever, should the building be substantially demolished or damaged, or should it be moved or leveled. 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 1f / - I Mr. Gary D. Plotz January 4, 1995 Page 2 This allows the property to be sold and, of course, this possibility of reverter will be recorded by the City staff following approval of the ordinance vacating the right of way. Under the circumstances, this seems to me to be a reasonable way to proceed. If you need any additional information or have questions regarding this matter, please advise. Thank you. Very truly yours, & IJDVE, P.L.L.P. G. Barril Anderson GBA:lm Enclosure J ORDINANCE NO. 95=139? 2ND SERIES PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, VACATING MUNICIPAL RIGHT OF WAY, SUBJECT TO A POSSIBILITY OF REVERTER 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. Joseph Dooley and Cheryl Dooley, husband and wife, are the owners in fee simple of certain real estate located in the City of Hutchinson legally described as follows: The North 51 feet of Lot 12 in Block 7 in the Townsite of Hutchinson, South Half. Section 2. Said real estate abuts municipal right of way also located in the City of Hutchinson. Section 3. As a result of a construction error, a building located principally on the property described in Section 1 herein encroaches upon the adjacent right of way. It is in the public interests and in the best interests of the City of Hutchinson to vacate the portion of the right of way while reserving a possibility of reverter for the future benefit and use of the residents of the City of Hutchinson. Section 4. 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 a portion of the right of way easement as set forth below. Section 5. That the following right of way owned by the City of Hutchinson is hereby vacated subject to the possibility of reverter set forth in this ordinance: See attached Exhibit "A" incorporated herein as if fully set out. Section 6. Said vacation is subject to a possibility of reverter for so long as the building that is presently constructed upon this vacated parcel remains in existence. If the building is demolished, torn down or moved, or in any way intentionally or unintentionally modified so that the building cannot be used without reconstruction exceeding fifty percent (50 %) of the then value of the property, the above described right of way shall automatically revert to the City of Hutchinson and its heirs without the need for the City of Hutchinson and its heirs to take any affirmative action to effectuate this reverter. It is expressly stated that this grant shall not be construed as a right of reentry for condition broken, which would require the City of Hutchinson or heirs to take legal action to regain title to 941 the above described right of way easement. This reverter shall be effective by operation of law and shall not require the City of Hutchinson to take any affirmative steps whatsoever. It is also expressly understood and agreed that in the event a dispute arises between the parties concerning whether or not the City is entitled to automatic right of reverter, said dispute shall be arbitrated in accordance with the rules and regulations established by the American Arbitration Association. Section 7. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this _ day of January, 1995. Marlin Torgerson, Mayor Attest: Gary D. Plotz City Administrator First reading: Second reading: Publication date: RESOLUTION NO. 10381 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS HUTCHINSON AREA TRANSPORTATION SERVICES FACILITY WHEREAS, the Director of Engineering has prepared plans and specifications for the furnishing of all labor and materials and all else necessary for the following: Hutchinson Area Transportation Services Facility An approximately 44,500 square foot Public Works Building. Walls are precast concrete. Roof EPDM on steel bar joists and metal deck. Work includes Mechanical, Electrical, General Construction and limited site work. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering shall prepare and cause to be inserted in the official newspaper, an advertisement for bids upon the construction of said facility under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be publicly opened at 2:00 pm on Wednesday, February 15, 1995, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on February 28, 1995, in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an • opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 10th day of January, 1995. City Administrator C, J Mayor 1, —14 c C January 10. 1995 Ray Bayerl, County Commission Chair McLeod Countv Courthouse 831 11 th Street East Glencoe, NEVI 55336 RE: CSAH 12 (North High Drive) Paving Shoulders Dear Mr. Bayerl: The members of the Hutchinson Light Traffic Task Force passed a motion at their meeting of January 9, 1995 recommending the McLeod County pave the shoulders of CS4H 12 (.- 'Vorth High Drive) from TH 15 to its north termination near Piepenburg Park. This motion was based on our review of pedestrian and bicycle safety along a quickly growing, urban and suburban area that has had pedestrian and bicycle concerns in the past. This route also correlates with a plan preciously reviewed by the Task Force, and City and County Parks and Engineering Departments, to work on connecting the Luce Line Trail to Piepenberg Park. This route has a strong potential to • substantially increase the safety of non - motorized traffic utilizing this corridor for recreation, or for safe transportation from the rural area to the City of Hutchinson. We greatly appreciate your consideration of this recommendation. Please let us know if you would like a member of the Task Force to discuss this issue with the Commissioners. Sincerely, t Mary .pmt Kasich Light Traffic Task Force Chair � II John Rodeberg, P.E. Light Traffic Coot& cc: Gary Ptotz - City Administrator Bev Wangentt - McLeod County Commissioner Rick Kjonaas - McLeod Countv Engineer At Koglin - McLeod County Parts file: Light Traffic Task Force •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 - Primed on receded paper - of EnginectinglPublic Works) Police Services 10 Franklin Street SW Hutchinson, MN55350 -2464 (612) 587 -2242 Fax (612) 587 -6427 l4 -A, RESOLUTION NO. 10382 RESOLUTION RECOMMENDING PAVING SHOULDERS • ON C.S.A.H. 12 (NORTH HIGH DRIVE) IN McLEOD COUNTY WHEREAS, City and County Planning, Parks and Engineering staff have reviewed the need to pave shoulders on County State Aid Highway (CSAH) 12 to provide safe pedestrian and bicycle transportation from rural areas into the City of Hutchinson, and eventually connect the Luce Line Trail with Piepenburg Park, and; WHEREAS, the Hutchinson Light Traffic Task Force has recommended paving the shoulders of CSAH 12 to provide safe, alternative transportation for pedestrians and bicycles, and; WHEREAS, the City Council supports the improved safety and recreational opportunities created by paving the shoulders of CSAH 12. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF • HUTCHINSON, MINNESOTA: It is requested that McLeod County consider paving the shoulders of CSAH 12 from Trunk Highway 15 on the east end, to the future termini near Piepenburg Park. Adopted this 10th day of January 1995, by the City Council of Hutchinson, Minnesota. City Administrator Gary D. Plotz • Mayor Marlin Torgerson /C -A, OPEN -HOLD COUNCIL REPORT Tue Jan 10 1995 09:45:38 Page 1 ----------------------------------------------------------------------------- 1993 IMPRO.CON B •REINER LANDSCAPING SODDING 1690 YARDS $2,343.75 WM MUELLER & SONS EST #14, LET #5 $19,855.99 $22,199.74 1994 IMPRO CONST JUUL CONTRACTING CO HUNTER'S RIDGE DRAIN T $156.00 MID -MN HOT MIX INC EST #6, LETTING #9 $3,444.89 RUST ENVIRONMENT PROF SERV -SW TRUNK SAN $17,034.04 $20,634.93 1994 T I CONST. COUNTY RECORDER RECORDING FEES $19.50 $19.50 AIRPORT RENOVAT. BRAUN INTERTEC CORP PROF SERVICES SEPT $2,423.40 MATHIOWETZ CONSTRUCTION EST #13 $108,701.57 MCLEOD COOP POWER ELECTRICITY $211.83 TKDA PROF SERV -PHASE II $565.71 WM MUELLER & SONS GRANITE, AC $3,082.56 $114,985.07 CAP.IMPRO.FUND BARR ENGINEERING CO PROF SERVICES -OTTER LA $190.00 $190.00 CENTRAL GARAGE ALLEN OFFICE PROD LABELS, ETC $17.87 BRANDON TIRE CO TIRE REPAIR $64.45 CARQUEST AUTO PARTS TOOLS $1,461.10 CHAMPION AUTO GASKET, ETC $12.76 CITY OF HUTCHINSON JAN MEDICAL $432.09 COAST TO COAST SUPPLIES $12.15 CROW RIVER GLASS AUTO MIRROR $8.52 FORTIS BENEFITS JAN LTD $17.34 G & K SERVICES SHOP TOWELS $66.46 HOLT MOTORS INC SW944, HELPER $273.07 HUTCHINSON WHOLESALE SUPPLIES $332.49 JERABEK MACHINE SERV FLAT IRON $25.96 MID CON SYSTEMS INC GREASE, REFLECTIONS $97.93 MN MUTUAL LIFE JAN LIFE INS $6.51 MTI DIST.CO 3 BEARINGS $64.83 PLOWMANS REPAIR FRONT DOOR $623.91 POSTAGE BY PHONE DEC POSTAGE $8.12 RMS ELEMENT $85.23 SHOPKO FILM,WEEKLY APPT, ETC $24.76 • SORENSEN FARM SUPPLY PULLER, HUB $43.40 11-4. OPEN -HOLD COUNCIL REPORT Tue Jan 10 1995 09:45:38 Page 2 ----------------------------------------------------------------------------- STEWARD ENTERPRISES GREASE $208.48 SWEENEY BROS TRACTOR LINING, PISTON, KIT $705.50 TERMINAL SUPPLY CO PARTS $66.22 TOWN & COUNTRY GLASS INSTALL WINDSHIELD $201.92 TWO WAY COMM INC RADIO CHECK $30.00 WIGEN CHEVROLET CO VALVE $158.44 $5,049.51 GENERAL FUND A & B ELECTRIC CHECK COMPRESSOR FANS $36.00 ADVANCED DOOR DESIGN REPAIRED FIRE DOOR $270.00 ALLEN OFFICE PROD DICTOPHONE RENTAL $74.66 AM.WELDING SUPPLIES OXYGEN $14.85 ARNOLD & MCDOWELL DEC COMPENSATION $4,166.00 AUTOMATION SUPPLY CO CARTRIDGES $93.75 BARR ENGINEERING CO PROF SERV - SURFACE WATE $1,027.50 BENNETT OFFICE SUP. TONER $206.98 BRANDON TIRE CO USED TIRE $21.98 BREMIX CONCRETE CO CONCRETE $49.56 BUS. RECORDS CORP. OPTECH IIIP MTCE FEE 1 $1,300.00 BUSINESSWARE SOLUTIONS CARTRIDGES $555.17 CADD /ENGINEERING SUPPLY COLOR BOND INKJET $31.49 CARLSON EQUIPMENT CO PREP, HEAD FLAILS $221.52 CARQUEST AUTO PARTS SUPPLIES $3.17 CARR FLOWERS PLANT- J.HAASL $14.86 CASH DRAWER #4 POSTAGE $49.84 WISE PHOTOS $47.67 •CASH CENTURY LABS WINDOW CLEANER $171.73 CHAMBER OF COMMERCE 1995 DUES- G.PLOTZ $270.00 CITY OF HUTCHINSON JAN DENTAL $29,659.82 COAST TO COAST SUPPLIES $289.92 COMM TRANSPORTATION HANGAR PAYMENT $700.00 COMSTOCK DAVIS INC PROF SERVICES -SEPT TO $63.00 COUNTY RECORDER RECORDING FEES $131.00 CREATIVE TOUCH SCREEN PRINTING 25 JERSEYS $319.50 CROW RIVER GLASS REPLACE GLASS AM LEGIO $49.44 CROW RIVER PRESS INC 130 LABELS $71.14 CURSOR CONTROL INC DATABASE CORRECTIONS, $241.27 DAAK REFRIGERATION REPAIR COOLING UNIT $256.20 DEMING, JEFF BASKETBALL OFFICIAL $18.00 DEPT NATURAL RESOURCES DNR REG FEES $770.00 DEPT OF LABOR & INDUSTRY 3 RENEWALS $30.00 EARL ANDERSON ASSOC OLP BRACKETS $960.52 ELECTRO WATCHMAN QUARTERLY CHARGE $734.85 ESCOM MTCE SOFTWARE 1995 $750.00 FARM & HOME DIST. CO SUPPLIES $168.32 FESTIVAL FOODS GROCERIES $25.77 FITZLOFF HARDWARE MOUSE TRAPS, PLUGS, ET $253.02 FOGG JR., MICHAEL SCOREKEEPER $30.00 FOGG, MIKE BASKETBALL OFFICIAL $144.00 FORTIS BENEFITS JAN LTD $1,328.03 G & K SERVICES UNIFORMS $732.49 . GREAT PLAINS SUPPLY STAIN $31.93 OPEN -HOLD COUNCIL REPORT Tue Jan 10 1995 09:45:38 Page 3 -------------------- --- GUARDIAN PEST CTL --- - - - - -- ---------------- PEST CONTROL - - - - -- $21.57 HAGER JEWELRY NAME PLAQUES $19.17 . HAWKER, STEVE BASKETBALL OFFICIAL $234.00 HCVN -TV CABLE FRANCHISE $750.00 HILLYARD FLOOR CARE / HUTCHINSON COFFEE CUPS $595.36 HRA RETIREMENT REIMBURSEME $1,165.60 HUTCH COMM HOSPITAL LAUNDRY $346.50 HUTCH FIRE & SAFETY MTCE TEST $11.98 HUTCH TECH COLLEGE WINDOWS CLASS $400.00 HUTCHINSON LEADER SKATING SHOW $591.00 HUTCHINSON TEL CO JAN PHONE $4,605.92 HUTCHINSON UTILITIES RETRO 10 -20 -94 $42,134.00 HUTCHINSON WHOLESALE TERMINALS, PLIERS $6.17 INK SPOTS PAPER 20# $147.63 INTERNATIONAL ASSC OF CHIEFS 0 1995 DUES $100.00 ISIA PATCHES $115.16 JENSEN &, NEIL J. DEC & JAN PAYMENT $460.00 JOES SPORT SHOP COUNTERACT T SHIRTS $1,288.70 K MART VIDEO CASSETES $17.02 K -III DIRECTORY CORP BLUE BOOK VOLT $716.00 KIRCHOFF, BRIAN ATTENDANT $53.75 LAND INNOVATION INC PLANNING STUDY $300.00 LANGAN, MELISSA 5 HOURS WORK AT YOUTH $35.00 LARSON, QUENTIN SAFETY GLASSES $80.00 LEAGUE OF MN CITIES DEC W.COMP DEDUCTIBLE $65,846.31 LENNES, RICHARD DEC COMPENSATION $2,083.78 LUNDAHLS 80 DINNERS $578.00 MADSON, STEVEN MEETING EXPENSES, PARK $52.65 • MARCO BUS.PRODUCTS DICTAPHONE, ETC $605.99 MARKS TV TIME SCORE REPAIR $30.00 MCGARVEY COFFEE INC COFFEE $42.15 MCLEOD COOP POWER ELECTRICITY $624.80 MDRA 1995 DUES $210.00 METRO ATHLETIC SUPPLY HELMETS, PANTS, PADS $931.93 MIDWEST CABLEVISION JAN SERVICE $4.08 MINNCOMM PAGING JAN SERVICE $114.12 MITCHELL, WILLIAM BASKETBALL OFFICIAL $18.00 MN CHIEFS POLICE ASN 1995 DUES $140.00 MN ELEVATOR INC. ELEVATOR SERVICE $62.95 MN MUTUAL LIFE JAN LIFE INS $487.83 MN REC & PARK ASSC 1995 DUES- D.MOON $450.00 MN SPORTS FEDERATION TEAM MEMBERSHIP $280.00 MN STATE SHERIFFS ASSOC 1994 INDEX OF STATUTES $69.22 MR. MOVIES LAS VEGAS TRAVEL TIPS $1.40 NATIONAL ARBOR DAY FOUNDATION 1995 DUES $10.00 NATL INST FOR CERT IN ENG TECH 1995 DUES- L.HUHN $20.00 NAUSTDAL, BRUCE VOLLEYBALL DEPOSIT $50.00 OLSONS LOCKSMITH ADJUST CLOSER, REKEY $59.00 OSM PROF SERV -BLUFF ST BRI $13,495.00 PANKAKE, GARY 4 HOURS DANCE WORKER $24.00 PETERSON BUS SERVICE MPLS $800.00 PITNEY BOWES CREDIT CORP LEASE 2ND QTR $1,005.01 PITNEY BOWES INC METER RENTAL JAN -APRIL $313.48 PLOWMANS TOW $26.63 OPEN -HOLD COUNCIL REPORT Tue Jan 10 1995 09:45:38 PLUMBING & HTG DOCTOR POLK POLYTANK CORP POSTAGE BY PHONE PRIEVE LANDSCAPING PRO MAINTENANCE QUADE ELECTRIC R &R SPECIALTIES INC REGION VI CHIEFS ASSC REINER LANDSCAPING RIDER BENNETT EGAN & ARUNDEL RINKE - NOONAN RYAN, SCOTT SELECT CARE SEWING BASKET SHELLENBARGER, LANCE SHOPKO SORENSEN FARM SUPPLY STANDARD PRINTING STARKE, RANDY STATE TREASURER STEWARD ENTERPRISES STREICHERS TKDA TRI CO WATER COND US WEST COMMUN VERTISOFT SYSTEMS W. M. MONTGOMERY WAHL, ORVIS WAL -MART XEROX CORP HAT -FAC. CONST. Page 4 12 FILTERS $21.30 POLK DIRECTORY $384.00 POLY TANK $13.63 DEC POSTAGE $992.77 PLANTS $300.00 SCRAPE ADHESIVE $90.74 REPAIR DOOR #4 $261.41 BLADE GRIND $28.00 1995 DUES $30.00 CURBING AT FIREM]N'S P $400.00 PROF SERV THROUGH NOV $98.20 2 REG- J.MARKA, B.EWING $100.00 BASKETBALL OFFIC:CAL $198.00 DEC ADMIN FEES $235.50 K -9 BADGE BANDS $50.62 VOLLEYBALL REFUND $50.00 CAMCORDER TAPE $51.57 HOOKS, CHAIN $38.07 LABELS $26.93 5 HRS DANCE WORKER $35.00 4TH QTR BLDG SURCHARGE $4,002.14 POWDER PLUS $91.26 BALLISTIC VESTS, TRAUM $6,825.94 PROF SERV -NE TAXIWAY $156.68 20 BAGS SALT $93.08 JAN SERVICE $207.21 AMIDIAG 4.0 $57.45 RADIO PROJECT SERVICES $2,232.00 PLATES $22.00 MINI TREES $56.44 5320 COPIER DEC CHARGE $860.81 $207,026.56 BONESTROO ROSENE ANDERLIK & AS PROF SERVICES INSURANCE FUNDS HUTCH COMM HOSPITAL PAYROLL FUND AETNA VARIABLE LIFE ASS. CO. GREAT WEST LIFE INS. CO. H.R.L.A.P.R. ICMA RETIREMENT TRUST PERA LIFE INS CO. PERA - D.C.P. PRUDENTIAL PRUDENTIAL MUTUAL FUNDS PUBLIC EMPLOYEES 5 MAMMOGRAMS $35,517.34 $35,517.34 $300.00 $300.00 EMPLOYEE CONTRIB 12 -31 $655.00 EMPLOYEE CONTRIB 12 -31 $100.00 EMPLOYEE CONTRIB 12 -31 $172.19 EMPLOYEE CONTRIB 12 -31 $1,557.45 EMPLOYEE CONTRIB 12 -31 $136.50 EMPLOYEE CONTRIB 12 -31 $52.02 EMPLOYEE CONTRIB 12 -31 $140.00 EMPLOYEE CONTRIB 12 -31 $318.46 EMPLOYEE CONTRIB 12 -31 $12,564.37 OPEN -HOLD COUNCIL REPORT Tue Jan 10 1995 09:45:38 Page 5 ----------------------------------------------------------------------------- TEMPLETON INC EMPLOYEE CONTRIB 12 -31 $438.85 WADELL & REED EMPLOYEE CONTRIB 12 -31 $150.00 • WITHHOLDING TAX ACCT EMPLOYER CONTRIB 12 -31 $29,123.60 $45,408.44 WATER /SEWER FUND AAGARD WEST DEC RECYCLING $23,156.12 ALLEN OFFICE PROD CARTRIDGES $91.59 BENNETT OFFICE SUP. TONER CART $105.44 BREMIX CONCRETE CO BRICK $22.23 BRINKMAN STUDIO SLIDES $13.93 CARR FLOWERS PLANT- L.NELSON $16.98 CITY OF HUTCHINSON JAN DENTAL $4,266.71 COAST TO COAST SHIPPING $157.83 CURTIN SCIENTIFIC CO CALCULATOR $73.17 FARM & HOME DIST. CO PROPANE, ETC $4.56 FEED RITE CONTROLS TABLETS $21.74 FESTIVAL FOODS BLEACH $13.67 FITZLOFF HARDWARE SCREWS $2.65 FORTIS BENEFITS JAN LTD $180.09 G & K SERVICES SHOP TOWELS $268.18 GRAHAM, MARION WINTER SAFETY BOOTS $30.00 HACH COMPANY LAB SUPPLIES $100.77 HARRIS CONTRACTING PNEUMATIC ACTUATOR, CO $1,264.67 HILLYARD FLOOR CARE / HUTCHINSON DEOD BLOCK $671.18 HUTCH TECH COLLEGE WINDOWS CLASS $160.00 HUTCHINSON TEL CO JAN PHONE $513.38 HUTCHINSON WHOLESALE PINS $5.96 INDUSTRIAL SUPPLY CO CONTRACT REPAIR & MAIN $534.12 INFRATECH 8 RAINSTOPPERS $691.99 JUUL CONTRACTING CO HYDRANT REPAIR $2,221.75 L & P SUPPLY CO MULCH BLADE REFUND $15.00 LAMPLIGHTER II NALCO BUSS MEETING $21.30 LAWSON PRODUCTS INC LP 110M $78.14 LEAGUE OF MN CITIES GEN LIAB $7,931.25 MCNELLY GROUP DOWN PAYMENT ON NATURT $15,000.00 MN MUTUAL LIFE JAN LIFE INS $66.78 MN VALLEY TESTING LAB TESTS $140.00 NALCO CHEMICAL CO. NALCO $537.95 NCL SERVICE KIT, ALCOHOL, $218.08 POSTAGE BY PHONE DEC POSTAGE $149.11 RUST ENVIRONMENT PROF SERV - COMPOST SPEC $1,789.66 SANIFILL INC LOADS DEC 19 -23 $3,292.61 SCRANTON GILLETTE COMMUNICATIO SUBSCRIPTION RENEWAL $25.00 SORENSEN FARM SUPPLY DRILL BIT, BOLT $10.81 STANDARD PRINTING 6 VIEWBINDERS $55.72 TRI CO WATER COND 3 BAGS SALT $14.70 VIKING SAFETY PRODUCTS SLUSH BOOTS, RUBBERS $149.67 WAHL, ORVIS REMOVE IMPELLER $10.00 WATERPRO HYD SIGNS $4,788.35 WEF 1995 DUES- J.LANZ $115.00 WELCOME NEIGHBOR NOV LIST $60.00 $69,057.84 $520,388.93 IMMEDIATE PAY COUNCIL REPORT Tue Jan 10 1995 09:44:32 Page 1 ----------------------------------------------------------------------------- GENERAL FUND ALGY COSTUMES COSTUMES $846.95 COSTUME SHOP, THE COSTUMES $566.75 CURTAIN CALL COSTUMES COSTUMES $120.20 DEPT NATURAL RESOURCES DNR REG FEES $807.00 FINA COSTUMES COSTUMES $3,724.75 WOLF - FORDING & CO. COSTUMES $692.85 HERMEL WHOLESALE MISC PURL NOVE $6,758.50 LIQUOR STORE AMERICAN LEGION POST 1 ADV $52.50 BERNICKS PEPSI COLA MISC PURCHASE $220.83 CITY OF HUTCHINSON LOTTERY SALES $5,304.93 COLLINS BROTHERS INC MISC PURCHASES $58.12 ED PHILLIPS & SONS CO. $5,682.41 FRIENDLY BEVERAGE CO $2,916.80 HERMEL WHOLESALE MISC PURL NOVE $235.19 HUTCHINSON LEADER ADV $372.30 HUTCHINSON TEL CO DEC SERVICE $314.09 JORDON BEVERAGE INC. $868.05 KARP RADIO ADV $122.50 KOEHLER,LYLE OPER SUPPLIES $22.75 KUBASCH & SONS INC. DEC SERVICE $167.47 LENNEMAN BEVERAGE DIST. INC $5,367.30 LOCHER BROS INC $19,781.20 LUNDHOLM, LORI WINDOW CLEANING $42.60 PRO MAINTENANCE SCRUB & WAX $315.24 QUALITY WINE & SPIRITS CO. $5,244.37 SPRENGLER TRUCKING DEC FREIGHT $518.06 STANDARD PRINTING OPE SUPPLIES $102.11 TOTAL REGISTER SYS SUPPLIES $107.03 TRI CO WATER COND BOTTLE WATER $15.82 TRIPLE G DISTRIBUTING INC $20,313.00 $68,.144.67 WATER /SEWER FUND MPCA REG- J.LANZ $300.00 US POSTAL SERVICE WATER BILLS POSTAGE $192.00 $492.00 $75,395.17 WIRE TRANSFER PAYROLL FUND M DEPT OF REVENUE EMPLOYEE CONTRIBUTION $5,658.35 •0 •• BALANCE SHEET NOVEMBER 30, 1994 OL TOTAL __-AS-SETS UTILITY PLANT - AT COST LAND & LAND RIGHTS 891,734.75 DEPRECIABLE UTILITY PLANT 27,966,593.37 TOTAL UTILITY PLANT 7- 28,858,328.12 LESS ACCUMULATED DEPRECIATION (16, 704, 836, 76) TOTAL ACCUMULATED DEPRECIATION CONSTRUCTION IN PROGRESS TOTAL CONSTRUCTION IN PROGRESS ---------TOTAL UTILITY PLANT DEPREC VALUE RESTRICTED FUNDS & ACCOUNTS INVESTMENT - GAS RESERVES MEDICAL INSURANCE BOND & INTEREST PAYMENT 1993 BOND RESERVE - 1993 CATASTROPHIC FAILURE FUND TOTAL RESTRICTED FUNDS & ACCOUNTS CURRENT & ACCRUED ASSETS CASH IN BANK INVESTMENTS & SAVINGS ACCOUNTS _____ACCOUNTS RECEIVABLE INVENTORIES PREPAID INSURANCE FERC FILING DEPOSITS MISC - ACCOUNTS RECEIVABLE TOTAL 'CURRENT & ACCRUED ASSETS DEFERRED CHARGE BOND DISCOUNT 1993 1 _ - ii6 764,836. 765 23,400,043.44 23,400,043.44 35,553,534.80 1,054,905,= 100,000.00 (io.00) __- _._i,389,_320.00 750,600.66 3,294,215.55 1,989,598.74 750,899.99 1638,565.42 i:002,0iS.32 70,104.85 30,000.00 60.00 200 722 79 .. TOTAL DEFERRED CHARGE 200,722.79 TOTAL -ASSETS 44,529,660,46 0• cn�rner,.0 On4,L NOVEMBER 30, 1994 * * r * TOTAL MUNICIPAL EQUITY a LIABILITIES_- MUNICIPAL EQUITY i MUNICIPAL EQUITY 2B,544,4B5.44. UNAPPROPRIATED RETAINED EARNINGS _. _ 551,502,43_._..._ TOTAL MUNICIPAL EQUITY 29,095,987.57 LONGTERM LIABILITIES -NET OF CURRENT MATURITIES 1993 BONDS 13,725,000.00' TOTAL LONG TERM LIABILITIES 13,725,000.00 CONSTR CONTRACTS 6 ACCTS PAY RETAIN ACCRUED EXPENSES - _ __ __ ___ ;___ -- 273,300.25. _RETAINAGE TOTAL CONSTRUCTION a ACCTS PAY 273,300.25 CURRENT A ACCRUED LIABILITIES ACCOUNTS PAYABLE �,' 1,097,886.06 INTEREST ACCRUED 396.92 ACCRUED PAYROLL _ ACCRUED VACATION PAYABLE 12i,4iS.00 ACCRUED MEDICAL FUND (2,768.73) CUSTOMER DEPOSITS 84,655.00___..._ OTHER CURRENT 6 ACCRUED LIABILITIES 30,622.76 TOTAL CURRENT & ACCRUED LIAB 1,435,372.34 TOTAL MUNICIPAL EQUITY 8 LIAB 44,529,660.46 • ST'AT *V *ERNCOMCS994EXPENSES 9 • PREVIOUS CURRENT BUDGETED BUDGET YEAR TO DATE YEAR TO DATE YEAR TO DATE DEVIATION INCOME STATEMENT OPERATING REVENUE SALES - ELECTRIC ENERGY 9,225.,665.11 9,950,920.45 9,445,605.00 505,315.45 _ SALES FOR RESALE 720.00 11,211.50 1.,840.00 9,371.50 NET INCOME FROM OTHER SOURCES 60,957.96 _ 39,507.50 . -.. 47,700.00._.__ -___.- (8,192.50) SECURITY LIGHTS 11,052.00 10,198.00 12,880.00 (2,682.00) POLE RENTAL 1,564.50 1,564.50 5,880.00 (315.50) SALES - GAS 5,070,314.12 4,807,750.S1 5,303,.350.00 (495,599.19) TOTAL OPERATING REVENUE 14,366,273.69 14,821,152.76 14,813,255.00 7,897.76 OPERATING EXPENSES PRODUCTION OPERATION 670,954.69 805,220.30 789,759.00 (15,461.30) PRODUCTION MAINTENANCE 358,1.36.60 90,428.27 i19,515.00 29,086.73 POWER 4,932,334.99 _4,244,126.01 2,603,670.00 (1,640,458.01) __. ______PURCHASED TRANSMISSION OPERATION 324.27 974.34 900.00 (74.34) TRANSMISSION MAINTENANCE 53,353.16 99,701.39 126,500.00 26,798.61 ELECTRIC DISTRIBUTION OPERATION 178,461.98 „_. 174,056.93 -_ 179,750.00 _ .5,693.07 ELECTRIC DISTRIBUTION MAINTENANCE 100,512.76 116,299.51 98,607.00 (17,692.51) MFG GAS PRODUCTION OPERATION 1,729.54 1,376.71 1,775.00 398.29 _ MFG GAS PRODUCTION MAINTENANCE 7,851.43 1,001.21 1,960.00 958.79 PURCHASED GAS EXPENSE - 4,117,981.37 5,240,252.09 6,622,875.00 1,382,622_91 GAS DISTRIBUTION OPERATION 187,519.04 186,059.67 168,591.20 (17,468.47) GAS DISTRIBUTION MAINTENANCE 40,799.60 _ 39,626.93 38,660.00 (966.93) CUSTOMER EXPENSES 127,804.68 138,300.14 129,450.00 (8,850.14) CUSTOMER SERVICES 28,438.92 29,273.79 29,900.00 626.21 -_ ADMINISTRATIVE (. GENERAL EXPENSES 1,068,379.18 .__.1,246,982.76 1,177,908.50 (69,074.26) DEPRECIATION 722,337.00 1,329,166.63 1,448,000.00 IiB,833.37 TOTAL OPERATING EXPENSES 12,596,919.41 13,742,848.68 13,537,820.70 (205,027.98) OPERATING INCOME 1,769,354.28 1,078,304.08 1,275,434.30 (197,130.22) INCOME OTHER - NET 126,070.iB 63,648.56 73,030.00 (9,381.44) INTEREST INCOME 320,935.16 164,836.15 168,000.00 (3,163.85) MISC INCOME 16,726.69 _ 4,281.60 _ 4,575.00 _. (293.40) MISC INCOME - GAS 469,782.30 376,758.55 470,400.00 (93,641.45) TOTAL OTHER INCOME 933,514.33 609,524.86 716,005.00 (106,480.14) -__ OTHER EXPENSES MISC EXPENSES i16,458.54 34,181.01 24,440.00 (9,741.01) INTEREST EXPENSE 341,637.73 _ 614,645.50. 603,934.50 (10,711.00) TOTAL OTHER EXPENSES 458,096.27 648,826.51 628,374.50 (20,452.01) CONTRIBUTION TO CITY .00 ._ 487,500.00 487,500.00 .00 TOTAL CONTRIBUTION TO CITY .00 487,500.00 487,500.00 .00 _ -.- .___.NON - OPERATING INCOME 475,418.06 _ (526,801.65) .(399,869.50) .(126,932.15) NET INCOME_ 2,244,772.34 551.,502.43 875,564.80 (324,062,37) PIONEERLAND LIBRARY SYSTEM Hq.:410 SW Fifth Street Willmar, MN 56201 -3298 M. Houlahan, Director PIONEERLAND LIBRARY SYSTEM UPDATES December, 1994 Phone No. 612/235 -3162 Fax. No. 612/235 -3169 FOR YOUR INFORMAT!O� PIONEERLAND LIBRARY SYSTEM UPDATES are occasional communications from Pioneerland administrative staff to Pioneerland Library System board, mayors, city councils and county commissions, head librarians, local library boards & city and county administrators. These newsletters are to inform UPDATES readers on Pioneerland Library System's programs, services, policies, and activities. PIONEERLAND LIBRARY SYSTEM (PLS) 1994 YEAR IN- REVIEW JANUARY Pioneerland Library System (PLS) Board held all day workshop and its annual meeting at Renville's new library/city hall complex on January 22nd. Guest speakers were William Asp, director and Alan Lewis, assistant director, Department of Education, Office of Library Development and Services. Speakers spoke on library law, strategic planning, and is service and automation trends in Minnesota libraries. PLS Board creates space planning committee to study and make recommendations on a new combined administrative/service center. Nancy Alsop elected to a second year term as PLS Board President. Other Officers elected were Roy Johnsen, Vice President; LeRoy Sanders, Treasurer; Dolores Brunner, Secretary and Orville Rudningen, Finance Chair. PLS Board passes requirement that libraries meet local vacation and sick leave liabilities in three years. Beth Hansen hired as new administrative assistant/bookkeeper FEBRUARY Strategic planning workshops for local library boards were held in Grove City, Ortonville and Benson. Libraries begin developing one and five year service plans. MARCH New head librarians hired were Cindy Hendrickx, Appleton and Lynda Behm, Atwater. Installation of PLS's new CD -ROM catalog begins. System's 31 member libraries, its administrative and service center, and Canby and Clarkfield community libraries will receive copies of PLS's new computer catalog. APRIL PLS joined Canby and Clarkfield libraries in exhibiting at Yellow Medicine County Spring Show in Clarkfield. Displayed were PLS's new CD -ROM catalog, books, videotapes, audiotapes, and handouts. Staff meeting held at Green Lake Bible Camp. Topics covered strategic planning, CD- ROM catalog instructions and table discussions on: reader's advisory services, learning kits, and summer reading programs. MAY Willmar attorney, Kit Smith, submits her review of PLS's agreement with it signatories. Attorney Smith recommends a number of changes and corrections in the agreement. Policy committee is given responsibility to develop recommendations in response to the attorney's findings. JUNE PLS Board seeks second legal opinion concerning agreement's borrowing provisions. Minneapolis law firm, Dorsey and Whitney, orally commits to reviewing this part of the agreement at no charge to system. In other action, PLS board approves Kit Smith's recommendations concerning changes in the agreement: corrections in Minnesota statute citations, clarification of board membership and ratification, termination and correction of typographical errors. Agreement changes will be forward to signatories after Dorsey and Whitney completes its review. JULY PLS awards new health and life insurance contract to League of Minnesota Cities Insurance Trust. AUGUST Pioneerland Library System ends its own delivery service and contracts with ECSU to provide delivery service to member libraries. SEPTEMBER Questionnaire sent to libraries to determine actual costs of an on -line integrated automation system. SAMMIE provides funds for one year internet experiments at PLS's Montevideo Service Center and Willmar Public Library.. SAMMIE grants $800 toward a new fax machine for PLS's processing center. r] . OCTOBER Fall staff meeting was held in Granite Falls. Guest speaker was William DeJohn, MIMTEX Director, a statewide interlibrary loan and reference services network located at the University of Minnesota. Other topics covered included rotating packets, acquisition practices, retrospective conversion and automation. NOVEMBER PLS libraries writes following grants: 1) Litchfield: $5,000 for cooperative project with Public Health for programing, books and videos to be shared at WIC sites. 2) Willmar: $5,935 for collaborative with WASH (Willmar Area Scholars at Home) for CD -ROM reference materials to be housed in public library 3) PLS: $6,980 for preschool and lower elementary materials to be shared with Granite Falls Public and Echo and Wood Lake's ECFE, Head Start programs and school libraries. 4) PLS: $6,237 for needs assessment of Hispanic population in nine county area and for recommendations on library materials, programs, and services to facilitate library use by Hispanic community. 5) PLS: $40,953 to provide 31 libraries information and resources for new parents on value of reading to young children. 6) Maynard: $10,000 for accelerated reading materials to be shared between school and public library. DECEMBER For the third year in row, PLS libraries will circulate over a million items. While final statistics were not available at time of publication, 1994 circulation should exceed 1,030,000. Representatives from PLS, Willmar school libraries, and Willmar College Library discussed the different roles and types of libraries with local city, county, and state officials and school board member. Dorsey and Whitney by telephone concurred with the findings of attorney Kit Smith that PLS does not have legal authority for short term borrowing. PLS may with specific approval of each signatory fund some long term projects. PLS is awaiting Dorsey and Whitney's written findings and clarifications on long term borrowing before PLS board drafts needed amendments and changes to the agreement. I Minnesota Department of Health 925 Delaware Street Southeast P.O. Box 59040 • Minneapolis, MN 55459 -0040 (612) 627 -5100 n U • December 28, 1994 Hutchinson City Council c/o Mr. Gary D. Plotz, Administrator Hutchinson City Hall 111 Hassan Street South Hutchinson, Minnesota 55350 -2522 Dear Council Members: `JAN 3 1995 FOR YOUR MFORIKPON This is to inform you that the Minnesota Department of Health has nearly completed development of the wellhead protection program. The objective of wellhead protection is to protect public health by safeguarding the areas which contribute water to public wells from potential sources of groundwater contamination. It is expected that this program will be implemented sometime in 1995 following promulgation of the state wellhead protection rule. We are enclosing a copy of the newsletter that we have developed for the wellhead protection program. We will be sending you additional information about the wellhead protection program on a regular basis through this newsletter. Also, we will send you a copy of the wellhead protection rule when we have it ready for public review and comment. Because of the large number of public water suppliers in this state, it was necessary to develop a ranking scheme for phasing public water supply systems into the program. This scheme is based on the percentage of vulnerable wells in the system and the size of the population served. Priority is also given to systems which serve children. Based on information that exists in our database at this time, your system is ranked number 617 out of the 1,586 community and nontransient noncommunity systems in Minnesota which rely on groundwater to serve their customers. This ranking is subject to change should new information become available regarding your system. Information that could change your ranking includes data related to well water quality, well construction, pumping rates, and population served. In addition, any municipal system which adds a new well after the wellhead protection rule takes effect is immediately brought into the program regardless of its position on the current list. We TDD: (612) 627 -6003 (Twin Cities) 1- 800 - 627 -3529 (Greater Minnesota) An Equal Opportunity Employer Hutchinson City Council Page 2 December 28, 1994 anticipate that for the next several years only municipalities which add a well to their system or public water suppliers who voluntarily want to develop wellhead protection plans will be brought into the wellhead protection program. If you have any questions regarding your ranking for phasing into the wellhead protection program, status of the wellhead protection rule, or any other aspects of wellhead protection in Minnesota, please contact Mr. Bruce Olsen of my staff at (612) 627 -5167. Sincerely, Gary L. Englund, P.E., Program Manager Drinking Water Protection Section GLE:BMO:tvs Enclosure 11 11 Ll 01 • • wtiNESOTA WELLHEAD PROlECT10N Information About Protecting Public Water Supply Wells December 1994 Agencies Ready to Assist Water Suppliers The Minnesota Department of Health (MDH) is currently working with six communities to develop WHP plans. The experience gained with these pilot WHP efforts has helped to identify the training and technical support needs of public water suppliers. MDH will assist public water suppliers with delineating WHP areas and preparing WHP plans. These plans will contain an inventory of potential contaminant sources in the WHP area, a strategy for source management, a monitoring strategy to assess source manage- ment effectiveness, and a contingency plan to address interruption of the public water supply. MDH will hold workshops on preparing WHP plans for public water suppliers and local government staff. Also, WHr program staff wit! work dirr, r, with individual public water supp :,s to help them prepare and impl.a i< nt WHP plans. The Minnesota Department .* Agriculture, Minnesota Pollut'. n Control Agency, and MDH i:avc signed a memorandum of agreement Cont. on page J About this Publication Wellhead Protection (WHI Program Moves to Implementation Stage The purpose of the WHP program is to prevent contamination of public water supply wells. The 1986 amendments to the federal Safe Drinking Water Act require states to develop WHP programs. The U.S. Environmental Protection A enc (U S EPA) is responsibie ww Me \ 79 8 y for approving state programs. Also, the 1989 Minnesota Ground- water Protection Act requires the commissioner of health to develop a state rule for WHP. MDH has completed a draft of the state's WHP program plan and has also finished drafting the language for the state WHP rule. U.S. EPA approval of the proposed state WHP program and adoption of the draft WHP rule will ,•_-mit public water suppliers, stale agencies. and local government- to begin implementing the WIT program. P. upcsed'NHP Area br the City or pear Leke MDH has developed .a_ state's WHP program with':, • advice and recommendations of many organizations and individuals. Technical and policy workgroups provided recommendations regarding how WHP shot:'.+: i- applied to public water supply wdls. Another advisory group provided comment and advice on drafting the proposed state WHP rule. Public water suppliers were represented on these workgroups through persons from the American Water Works Association and the Minnesota Rural Water Association. The purpose of this publication is to Under the proposed WHP program, all public water supply vre!!s wou!d have provide information and education to to be protected from disease organisms. physical damage, and direct entry of water suppliers, local officials, and chemical contaminants. Owners of community and nontransient noncommunity agencies about protecting public wells Cont. on page 4 which supply drinking water. In this Issue Editor: Ray Olson Surveys of Water Suppliers and the Public ........................ 2 Wdiheadlines staff: Bruce Olsen, Concerns about groundwater are apparent Art Persons. Trudi Schmolke WHPRules ................................................ ..............................a To request this document in another Suppliers required to submit plans for WHP format, call (612) 627 -5100. TDD (612) 627 -6003, or for Greater Local Governments and WHP ............................................... 4 Minnesota through the Minnesota Working with water suppliers to protect wells Relay Service at 1- 800.627 -3529 (ask for [612] 627 - 5100). CJ'1 Minnesota Department of Health Wellheadlines December 1994 WHP Surveys Show Concerns about Contamination and Training Needs Surveys of public water suppliers and the general public were distributed by .'v1DH in 1993. The purpose was to: I) measure concerns about ground- water protection. 2) determine knowledge and attitudes towards WHP, and 3) determine what edu- cational methods may be r effective for these groups. One survev was distributed to all 954 community water suppliers in the state and to about 800 nontransient non- community suppliers. The response for this survey was about 50 percent. .Another survey was distributed ,ca sample of 600 ;. aitr- urn:. customers rn tour cities of Sixty -five percent of suppliers indicated they had heard of WHP, but only 35 percent said they had moder- ate or much knowledge of it. Large community suppliers had much more knowledge than the smaller com- munity or noncommunity suppliers. Contaminants of Concern to Public Water Suppliers two most important barriers. Nmct}- three percent said they were of moder- ate or groat importance. Leval and jurisdictional issues ranked next in concern. Written responses to an open -ended Agocultural Chemicals Non Agric. Chemicals mouseniom Underground Tanks - Chemical Spills - Abandoned Wells Landfills;0umps lawniGarden Chemicals - - -- Septic Tanks Feedlots;Manure 0 10 20 30 40 50 60 %* "Percent indicating moderate or great concern . d:ttenng sizes (Rochester. I,akeville. St. Peter. Rand i' ',?lc cor.: mcd respt.r,c r a t�rr 4' percent in three cities surrey was mailed and ictl -. cat in St. Peter where it was broua >.. ',nor to door. Surveys of Rater Suppliers The survey of water suppliers indi- cated that 43 percent believe that there is moderate or great concern about groundwater contamination in their communities. Large community suppliers, serving more than 5.000 residents, indicated more concern. l�a.cr suppi, rs indicated he} ,,eded trrir ny v! A. ar of %Itip especiaily idcnrit}1:L` aI:J managm_ contaminant <ovr.es. Over "-, nciccnt mdicacad this was a moderate cr great need. Community suppliers said that workshops were the most eftecttve method of education. Over 90 percent said they would be moderately or greatly effective. Noncommunity suppliers preferred individual techni- cal assistance more than workshops. Pamphlets and brochures were viewed as effective by about two - thirds of both groups. Sixteen percent of the suppliers indicated that contaminants had been The sure ey also discovered in their wells- Agricultural asked about barriers chemicals were the number one to implementing concern of suppliers. Fifty -two WHP. Cost to the percent of the suppliers said they had a community and moderate or great concern. Chemical cost to contaminant spills and improper use and disposal source owners to of chemicals were next in concern. correct contumi- nation problems were seen as the 2 question about what the state should do to help water suppliers protect wells indicated that edu. cation was the most important thing the state could provide for suppliers. Nearly half the comments mentioned this need. About 25 percent also mentioned the need for more enforcement of poi:ution lass he need for the state I. nvnC new laws to <ontt.! - .:...mi- nauon sourccs that may a ":a!hclr satcr >;ippUs. Surveys of the General Viihlic Thirtc -�cven percent of air re- sponJeots said groundw,,,,r con- tamination was a moderate or big problem in their communities. This concern was consistent in all four of the cities surveyed. ConL all /roll pug, General Public View of Contamination Randolph Rochester St. Peter - 0 5 t0 15 20 25 30 35 40 45 °0' *Percent indicating "moderate" or "big" problem u • Werrneadrrnes However, concern about health risks from drinking the water can vary greatly from city to city. Forty -three percent indicated there was a moderate or great risk in one city. Thirteen per- cent indicated this in two other cities and only 6 percent in the fourth city. Just as in the survey of water sup- pliers, the excessive use of agri- cultural fertilizers and pesticides were mentioned most often (81 percent) as an important source of contamination. There was much variation in the ranking of the other contaminants listed on the survey. Only 23 percent of the public had heard of WHP, but 29 percent indi- cated they had moderate or much knowledge of ways to prevent contamination. Only about 20 percent of the ecneral . public in the three cities personal activities posed a tin - :' ti. groundwater. Howe%er.9_ : <,e- t said thev "maybe wi!',ne" , . . , %try willing" to make personal eh r;c: to redcce the threat. A total of 78 percent also said mey maybe willing or we very to pay more for their water to ensure a safer supply. Over 98 percent said it was at least of some importance for their community to be involved in an effort to protect groundwater. Summary The needs assessment indicates that water suppliers and their customers are very concerned about contami- nation of their wells specialty from agricultural sources. However, the perception of health risks from drinking the water varies from city to city. Most water suppliers have some knowledge of WHP but need very Cont. on page 4 December 1994 WHP Rule Drafted Suppliers Required to Submit Plans for WHP MDH has completed drafting the WHP rule using an advisory workgroup consisting of public water suppliers, representatives from local units of govern- ment, state agency staff, and members of the regulated community. The draft rule would require the development of a WHP plan for community wells, numbering about 2,400, and for nontransient noncommunity wells, numbering about 1,000. Plans are not required for transient noncommunity wells. Thi; draft rule would require all public water suppliers to maintain the isolation distances named in the state Well Code for sources under their control. The draft rule outlines the elements that must be in a WHP plan. Key pans of the plan include: 1) a delineation of a WHP area. 2) a vulnerability assessment of the wells and the WHP area. 3) expected changes that could affect the water, 4) the establishment of goals, 5) a plan of action outlining the management of the WHP area. 6) a method of monitoring the effectiveness of the plan. and 7) a cnrGngency plan outlining an alternate water suppiv in the evert of w.tlet supply contamination or i .terrurrnm. The draft role also e:aahhshes prccedures for the .evelopmcnt of a :r }:u plan tact will ensure: is yuhitc partieipauun. 2) an opportunity for local ...-V., of government with water management and land-use authority to rcvte,. toe plan. and 3) approval of the plan by MDH an the plan is being developed. terse objectives are met through written notices-public informational meeua_s. and two "seopin¢" meetings with the MDH which will rev iew what infor -,' ;;ion is needed for development of the plan. Other pans of the draft rule include: 1) the schedule for phasing wells into the program, 2) the criteria for delineating the WHP area, 3) pump test procedures, 4) criteria for assessing well vulnerability, 5) data elements required (depending on the vulnerability of the well and the WHP area), and 6) the principles MDH must use to review and approve the plan. The projected time of rule implementation is 1995. The official public hearing, if requested, and a series of informational meetings throughout the state will be held by MDH. For a copy of the draft rule or a list of individuals who have served on the rule development workgroup. please contact Art Persons at (507) 285.7289 or (612) 627 -5481. Also. feel tree to contact An Persons with any questions or comments you may have concerning the draft rule. Wellheadlines MDH Assistance (Cont. from page 1) regarding their roles in WHP. All three agencies will work with public water suppliers to share information and manage potential contaminant sources in WHP areas. The Minnesota Department of Natural Resources (DNR) and MDH have agreed to combine DNR conservation planning requirements with the contingency planning requirements of a WHP plan. In the seven- county Twin Cities area, this agreement has been expanded to include the Metropolitan Council. which requires communi- itcs to devticl: w.a suprl; svetem plans. Here. one plan will meet the requirements of all the three agencies. WHP Implementation (Cont. from page]) w ells would also have to delipe..te capture zones (WHP areast . prepare plans to; managing . external contaminant sour;:. , this area which :.urpl :cs »::ter . barge the .yell. Inniall }. only commumtics :. .:h add wells to their water supply •_ -ms would have to delineate W'r': and prepare WHP plans. Put-'„e water suppliers may voluntarily enter the WHP program or wait until they are phased in by MDH. Existing com- munev and nontransient noncom- munity wells would be brought into the WHP program as time and resources permit. MDH will be contacting public water suppliers about the time and place for meetings where the proposed WHP rule will be discussed. A copy of the proposed WHP rule will be sent to all community and nontransient noncom- munity water suppliers when it is finalized. For additional information, --,. n -- - -- ^'- -- 11.11 "1 4111 December 1994 WHP Survey Results (Cont. from page 3) specific information and training about delineating WHP areas and managing contaminant sources. The cost of WHP to the community and the cost to contaminant source owners is a great concern of water supply officials. They should, how- ever, be encouraged by the public support for protection programs LOCAL GOVERNMENTS AND WHP Local governments have a major role to play with helping public water suppliers prepare and implement WHP plans. Communities which are already working on WHP are receiving support from local agencies such as soil and water conservation districts. county health departments, county planning and zoning departments, and Minnesota Extension. Local agen- cies have experience with planning, public education, and land -use manage- ment which will support efforts to protect public water supply v 'I' from contarnination. Also. counties and tu%uship governments can vi.. u adopt ordinarces which %nil help ncanage potential c,�ataminan. sour: e, Portions of RHP areas .A huh are nor under the jurisdictional at :.i•_:::c of pubile water suppliers. The Association of Minnesota Counties, Minnesota Tcwnship ` duor. snd League of Mi ^.ocsora Cities were represented on the aurk %`rich helped MD" I devdep pAc:cs for tmpicmenting the state W11 _:ram an dratt laneuaec for the W HP rule. Public water supplier, shrub ,der asking local governments and agencies to help prepare and implement WHP plans. CTWellheadlines Minnesota Department of Health Division of Environmental Health 925 S.E. Delaware Street. P.O. Box 59040 Minneapolis, Minnesota 55459 -0040 4 0 0 CE PLANNERS Box 68 • 135 Third Avenue Southeast Hutchinson. Minnesota 55350 December 29, 1994 Mr. Ken Merrill City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 Re: Long Term Disability Rating Process Dear Ken: FOR YOUR INFORMATION At your request, I explored the renewal rating of the city's LTD contract further with John Thompson, Region VP for Minnesota, and surrounding states for Fortis. • The rate the city started with in 1988, was .61$ of payroll. To- day that rate is .69$. The manual rate that Fortis is charging for groups your size is .79$. They wanted to charge a rate of .78$, but we had John Thompson intercede with his home office and he secured the reduction to .69 %. There are basically four major drivers of LTD rates. 1. The LTD business is capital intensive. If an individual age 35 files a $1,000 per month claim, Fortis must reserve that claim for the full potential loss immediately. In this case $1,000 per month x 12 months = $12,000 x 30 years = $360,000 plus costs. 2. The past 6 years have seen a liberalization of benefits, making it either easier to collect on a claim, or having more benefits paid on that claim. 3. Interest rates, a major source of income, have been trending downward for the past several years. Fortis and other LTD carriers make a major part of their income off of the inter- est paid on claim reserves (i.e. the $360,000). 4. The incidence of LTD claims has shown a slight increase each • of the past 6 years, with no change in sight. Telephone: 612- 567.2299 /- 600.535.1669 Fax: 612 - 567-0606 - 2 - Another thing that has affected the rating is that 2 years ago, we brought the Hutchinosn Utility employees under the plan. This group contained a number of older employees. Also, the city employees as a group are significantly older, moving more people into the higher rated slots (see attached). The one specific item you brought up was "increased payrolls mean increased premiums ". While that is true, increased payrolls also mean claim payments are also higher. Ken, those are the basic reasons for the increase. Enclosed is some of the correspondence regarding this renewal. Basically, we are experiencing our first significant rate increase iR 6 years. Sincerely, Dennis W. Potter Enclosures: cc - Mark Flaten 0 • • T •DATE: Oct 12 94 Wed TO: ',MINNF.PS FROM: IIAYDYSE @LOCAL ECT: renewal rates G: 44845 AME: CITY OF HUTCHINSON A : 9 -1 U- WRITER: Elisabeth Ilaydysch CENSUS REC D: RATE EFF DATE: 12 -94 Broker: DENNIS POTTER GRP REP: J. THOMPSON EXT: 8887 RATE LETTER DAY: 10 -26 -94 COVERAGE OLD RATE MANUAL RERATE NEW RATE 1 CHG VOLUME LIVES LTD -PAY .636 .794 .781 251 267,475 99 LTD -BEN 1.05 1.32 1.31 251 160,493 99 r ' WHEN THIS WAS ISSUED IN 1988, PAYROLL RATE WAS .611. BY 1992, THE RAVE HAS INCREASED ONLY 61. MEANWHILE, THE MANUAL HAS GONE UP, AND WE HAVE CO "TTINUED TO HOLD THE RATE. SINCE ISSUE, LIVES ARE UP FROM 75 TO 99. PLEASE SEE AGE /BENEFIT COMPOSITION BELOW. AGE OLIVES BENEFIT AGE OLIVES BENEFIT 00 -24 1 1376 55 -59 5 13787 25 -29 8 21730 60 -64 3 7839 30 -34 8 18099 65 -69 0 0 35-39 18 49792 70 + 1 1863 40 -44 25 66821 45 -49 18 52273 50 -54 12 33895 ' CLAIMS EXPERIENCE ' PREM claims O OPEN RSVRS O INC CLAIMS LTD 19207 0 0 0 0 600 i • 1,9Q LOSS RATIO 3.11 October 31, 1994 • 6 - LTD Rate Changes As you are aware, recent LTD experience has not met our expectations. The incurred loss ratio for the first nine months of 1994 was 102.5 %. Our 1994 operational plan calls for a loss ratio of 98.2% which, in turn, produces an exiguous 3.3% return on equity. A comparable loss ratio of 89.2% would be required to produce our ultimate target of 16% return on equity. Rather than wait until 1/1/95 and implement a large increase to manual rates, we have decided to take a small overall increase now and analyze year-end experience for any further adjustments to specific blocks of business in March. Effective November 7, 1994, the rate calculation system will be updated to produce an overall manual rate increase of 5%. This change will be reflected in the contributory factor. Doctors and Lawyers The LTD market continues to experience claim problems with doctor and lawyer groups. • Likewise, Fortis experience has been very poor for these groups over the last few years. As a result, we are implementing some specific rating and underwriting requirements for these industries. 1) The 'own specialty" load will be increased to 5 %. As a result, groups sold with "own specialty to SSNRA' will get the normal 5% load for the own occ to SSNRA and an additional 5% load for "own specialty." The rate calculation system has been reprogrammed to handle this. John B. Thompson Fortis Benefits Regional Vice President Insurance Company : Southdale Office Centre 6600 France Avenue South Suite 314 Minneapolis, MN 55435 (612) 920 -8990 } (800) 328-0153 r��► ��0��'f Fax (612) 920 -8218 s KC2622 (7189) F3usiness Day he XC t York 65bnco New Ailments: Bane of Insurers Disability Claims Up, Creating Big Losses By MICHAEL QUINT Companies that sell disability In- arance to Individuals are reporting sharp rise in claims for certain Ilmeems that were little known 10 ears ago, leaving the insurers with asses of hundreds of millions of do]- am The companies are also report - ng a big increase in claims by doc- .ors, once among the most prized of ne insurance Industry's clients. In response, insurers are adopting ew strategies, from offering less merous benefits to pulling out of .�e business. Three million people, nany of -them self-employed, are overed by individual disability poli- ies that generate annual revenues _.r Alftreri; of $3.5 billion. Group policies. offered through .mpl m cover 48 million more aople, and offer more limited bene- s. The ailments with by far the big - est increases in Maims in the last :ve years, according to the UNUM corporation of Portland, Me., are arpal tunnel syndrome, a nerve dis- -der that often arises from pro- nged use of computer keyboards, nd Epstein -Barr virus syndrome, rich produces symptoms of fatigue -.long otherwise healthy people. r,e number of claims has also dou- ed for back and disk pain, psychi- �ric problems and AIDS. Among some doctors, like emer- Ancy room physicians and anesthe -. .ologists, disability claims have -own to more than twice the expect- ? rates. Unlike claims involving ;art attacks, cancer or accidents, here the disability is clear, "we are .w seeing more and more claims r nervous- or mental -type situa- . ,ns or muscle and soft- tissue dis- -tiers that are very hard to evalu- ," like back pain, said Stephen B. enter, executive vice president of NUM, the fourth - largest disability surer for individuals. "There are a t of claims from physicians that ii gray area in ce executives say that as th a group, some of the claims doctors amount to fraud. But they other reasons as accounting for ist of the increase. They note that ny doctors today are more likely want to stop practicing when -,d with ailments they used to ,nrnn�h "Too many white - collar workers have learned to use their disability insurance as a substitute for unem- ployment compensation" or as a re- tirement plan, said Eric N. Berg, an insurance analyst at Bear, Stearns & Company. "In an age of myriad new diseases, the product simply no long- er works." Last week, the Provident Life and Accident Insurance Company of America — the second largest in the business with a 17 percent share of the individual disability insurance market — presented its sales force the outlines of its new policies. The new approach, which is ex. twrmri In inks P7�ri ���Iv nre+ vFar n,eN Ym Times calls for benefits to be reduced when • disabled person earns money from • new job. in addition, those filing claims would be required to join a rehabilitation program: Currently, the company said, some disabled individuals have increased their in- come by finding new jobs in other fields while continuing to collect their disability benefits in full. Oth- ers have made no effon at rehabili- tation. On existing policies, companies have little choice but to lick their wounds. A typical middle -aged doc- C�nfimsd nn Paso C, MONDAY, NOVEMBER 28, 199. YY L liLlllUll Owl i as V iv r-i v .... -�..� "it used to be that we treated claims arlsing from mental or ner- Lbnrinued From First Business Page physicians more liberally than any voue conditions or drug and alcohol other profession because doctors abuse wr paying less than $5,000 a year in were highly motivated people who At Paul Revere, where 70 percent premiums for a disability policy can would die at age 72 after delivering a baby that morning," said Charles E. of the business is from Individual disability policies and doctors an collect $15,000 a month and cost the insurance company a few million Soule, chairman of Paul Revere, count for more than a fifth of the dollars. which holds more than 19 percent of company's individual business, the For every 1,000 people they cover, the market. "we value of claims rose in the third insurance companies expect no But now, Mr. Soule said, see a different retirement ethic, particu- more than three or four to file for dimbilily each year. Even a slight mrly in warm- weather climates like A big increase in increase In claims can create sizable Southern California or Florida." krises. But In some states — Florida As more doctors see a shrinking in by doctors Rif example — doctors who bought their autonomy, and perhaps In their claims I icies in the late 1980's have been earnings, "the temptation is there" to file a disability Insurance claim, is creating sizable firing claims this year at nearly five din" the expected rate, according said Dr. Joyce A. Majure, a general surgeon In Lewiston, Idaho. .It's a losses on policies. tg,the Paul Revere Corporation, an Insurer based in Worcester. Mass., societal attitude that is creeping Into dik Is the leading issuer of nndivld- the medical profession.' 9) disability policies The Leading disability Insurers are Quarter to 95.3 percent of premium ,The spreading losses among dis- Aility insurers can be traced back claims chii ditierafproblem ways. One o! revenue; from 72.6 percent a Year earlier. Pretax profits for the indi- t{jihe 1970's and 1980's, when claims them, the Equitable Companies, tut the Equitable vidual disability business fell 53 per - were much lower and intense com- peeitUon for what looked like a lucra- year, the administration of Its individual disability business to cent to $14.8 million In response, the company dropped tfYR business led many companies to Paul Revere .some sales agents whose customers offer more liberal terms. One Provident was the hardest hit of generated too many claims and will crhinge that greatly favored custom - the disability insurers. It took a Otte- begin offering new policies that are -el% was a gradual shift toward poll- Lime after-tax charge against Its less expensive but also more restric- des with premiums and benefits earnings of $275 million in October live. Even more striking, no physi- Nat could not be changed. Another 1993. Until its new policies are ap- clans in Florida or California will be Wis to pay benefits if a disabled proved by state regulators, the com- allowed to take out policies that pro- person could not work at his or her pany said, it will continue selling old. vide full benefits it they are unable to Own occupation but was working at style policies but without an option work in their own occupation, even if spree other job. for lifetime benefits. The maximum they arc working at some other job. Within the disability business, doc- payment for doctors and dentists The same ban will apply to anesthe- tors were long considered the cream will be $10,000 a month and benefits slologists, emergency room physi- otthe crop. will be limited to two years on clans, neurosurgeons, orthopedic surgeons and thoracic surgeons in the rest of the country. In the fuare, Paul Revere expects to introduce policies that allow Insur- ance companies to adjust premiums within a specified range, much as interest rat" move up or down with- in a specified range on an adlu able -rate mortgage. Mr. Souk added Nat bone might be reduced in the future, that a disabled person could collect payments only up to a specified age or for a limited period. Most policies now offer benefits to age 65, or in some cases for life. Offering new policies with adjust- able prices, which is already stand- ard on group disability policies sold to employees of companies, is not a complete solutioq Mr. Soule said, because of the delays and expense of getting state regulators to approve changes In addition, he said, adjust- able prices 60 nothing to reduce the frequency of claims. To reduce claims, insurers are scrutinizing applicants even more closely about their income, the sta- bility of that income and their medi- cal history. Insurers already reject or impose restrictions can as many as 2 of every 5 individual disability ap- pheatians, compared with less than 1 In 10 life insurance applications. The Northwestern Mutual Life In. surance Company of Milwaukee also says its individual disability busi- ness has been hit with higher -than- expected claims So far, however, it is not losing money. Robert E Carlson, executive vice president, said Northwestern had in- creased prices in sates with exces- sive losses, like California and Art - ron t- But it has cut prices in sates with low Josses, hike Iowa and Min sota. The company has also redo the amounts it wtil pay in benefit UNUM announced earlier this month a $125.1 million after -tax charge to increase reserves for losses it expects in its individual disability bushes. Mr. Cemer of UNUM said individ- ual disability policies to be intro- duced next year would include short- er limits on payments for those able to work in other occupations. The company will also offer incentives for rehabilitation and have adjust- able prices. In addition, UNUM plans to combine disability policies with long - term -care policies that promise to pay nursing -home expenses for the elderly. Despite all the problems, insur- ance companies are still attracted to the disability business With the life Insurance market saturated, dis- ability insurance still offers the po tential for growth because only two in five workers are covered. Insurers want to lure more execu- tives and small- business owners to take out disability policies. Only 25 percent of the nation's 3.4 million small businesses have any kind of disability insurance, while just one in flee top executives owns an indi vidual policy. By contrast, 78 percent of all physicians are covered, as well as 65 percent of lawyers and 80 per cent of dentists. r LJ Ouch! UNUM stung by losses on disability business • CCIDENTS HAPPEN, AND IT looks like they've been hap- pening more often than was ever anticipated by the folks at UNUM, the Portland, Maine -based insurance outfit. In fact, UNUM s own stock got bruised in a bad fall last week when it announced third -quarter re- sults. The shares dropped more than six points on Tuesday, W 3954. By Friday's close they were down by almost another point, setting the low water mark for the past year. Barron's disclosed in a Sept. 26 column that the company, faced with increasing difficulties in its business of providing disability insurance to indi- viduals, would overhaul the line and probably take a writedown Sure enough, UNUM on Monday disclosed it took a $125 million hit on this business in the third quarter and would take an additional $10 million charge in the current quarter. To the further dismay of sharehold- ers, the insurer also revealed deterio- rating trends in its group disability coverage, a far more important market • for UNUM. Third -quarter earnings were disappointing, and claims from groups with long -term disability poli- cies were the highest in the company's history. With the exception of UNUM s U.IG operations, earnings in other units were flat to down. As pointed out in our earlier story, UNUM has been blindsided by a heav- ier- than - expected incidence of disabil- ity claims from doctors and lawyers who have had their careers thrown into upheaval by changes in health care and corporate streamlining. But it does appear that UNUM deserves some of the blame because its underwriting standards were extremely generous. In an effort to correct the problems, UNUM has discontinued selling its traditional noncancellable individual disability policies in the U.S. and will raise prices on its group disability policies. Wall Street remains cautious. Rob - inson Humphrey, for one, cut its 1994 estimate on UNUM to $3.50 a share from $4 and its 1995 number to $4 from . $4.70. For the near term, it seems, investors can't depend on UNUM to deliver predictable earnings growth. — Sandra Ward BARRON'S • MARKET WEEK September 26, 1994 by Sandra Ward UNUM's Disability Woes Signal Trouble for Other Insurers HE INDIVIDUAL DISAB[LI7Y IN- surance market is ugly, and get- ting uglier. Wrenching changes in the health -care system, massive corporate lay - rffs and broadening definitions of disabih- ties have made this a tough business, and now UNUM is signaling that the business is going to keep getting tougher, unless changes. fing quite a year after Provident L Accident took a $275 million, or $5.41 a share, after -tax charge to restruc- ture its individual disability line, UNUM is telling Wall Street it plans a major over- haul of the same business. "It's a drag on our operation," says Kent Mohnkern, a spokesman for the insurer, which is based in Portland, Maine. "Our profits have been eroding in this business. Returns are not satisfactory." As recently as Mid - August, UNUM told investors that the problems were under control. Individual disability policies accounted for, about 15% of UNUM's earnings in 1993. UNUM is the No. 4 provider of individual disability coverage, behind leader Paul Revere, Provident Life & Accident and Northwestern Mutual Life. UNUM expects to give details of the planned restructuring in the fourth quar- ter, says Mohnkern. Until then, investors pan only speculate about what will happen. Many foresee a writedown. It remains unclear whether a restructuring charge would affect fourth- quarter results or be r ded in 1995. t analysts expect some earnings its ppointments and more downside risk in the stock over the next few months, even though, at 467/u, it's already down I1% for the year and 19% off its high of 58, set in early March. Individual disability policies replace lost income in the event of accident or illness and are typically sold to small -busi- ness owners, and to professionals such as doctors, lawyers, architects, accountants if they're self - employed or their em- ployers don't offer coverage. Sometimes, the insurance supplements disability cov- erage provided by employers. Policies are usually non - cancellable and benefits are tax -free. So, in many cases, especially when salaries aren't rising very much, holders can make more money by not working than by staying on the job. Mohnkern hints that its unlikely UNUM will abandon the market, since its goal is to be the worldwide leader in disability and special -risk insurance. "We do believe individual needs can be met," he says. Not quite a year after Provident Life & Accident took a $275 million after -tax charge to restructure its individual disability line, UNUM is telling Wall Street it plans a major overhaul of the same business. Instead, he suggests that the business will be radically altered by structural changes in underwriting standards and policy distribution. He intimates that one strategy under consideration is the re- placement of "individual" disability poli- cies by something like "individuals" disa- bility, in which multiple policies are pack- aged as one to a group of professionals in one office, for instance. The insured probably will be required to seek appropriate rehabilitation treat- ment, something that hasn't been manda- tory before. UNUM, in fact, just won regulatory approval for such a require- ment in new long -term disability policies that it is rolling out. Also, the company will likely seek to clarify what constitutes a disability. Already this year, UNUM has received two claims in which the disability cited was "mid -life crisis syndrome." While these are some of the changes UNUM is bandying about, nothing is set. "We don't even know what the ultimate outcome of the business is going to be," Mohnkern maintains. Especially important to UNUM is that the individual disability business meet the ambitious 18% return on equity it has targeted for its overall operations by 1998. Right now, individual disability coverage doesn't even generate the 15 %" return on equity target UNUM initially set for 1992 and which remains in place now. Individual disability is an expensive, capital- intensive business: About 20% of UNUM's total capital supports the line. In addition, $350 million of deferred acquisition costs are associated with the business, mainly as a result of high corn - missions and heavy outlays for things such as blood tests and financial reports. Mostly reflecting higher claims from doctors and laywers, operating income in individual disability fell 32% in UNUM's first quarter, to $8.5 million from $12.5 million a year earlier. In the second quarter, operating profit slid 53 %, to $6.2 million. Part of the problem is that underwrit- ing standards have fallen way behind the times. And the times are changing rap- idly. UNUM hadn't figured, for instance, that highly paid medical specialists would see their incomes decrease, as increas- ingly is the case under health -care reform. The company also didn't anticipate the tax increases that have been levied against those in higher income brackets. It also may have overestimated the strength of the American work ethic. "Some_ of the things we thought could never happen have happened," says Mohnkern. The planned restructuring comes on the heels of other changes, In March, citing a rash of claims from women, individual disability underwriters re- turned to the gender -based pricing schemes common a decade ago, under which women pay substantially higher rates than men and abandoned the unisex rating structure that had become the norm, All these changes have occurreL, against a backdrop of declining invest- ment income foi• insurers. t