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cp05-13-86 cdUTCH INS ON CITY CALENDAR Play 11 TO May 17 1986 WEDNESDAY -14- 11:00 A.M. - Directors Meetin; at City Hall ti 1s. SUNDAY -11- MOTHER'S DAY THURSDAY -15- MONDAY -12- FRIDAY -16- TUEQAY -1.3- SPECIAL CITY ELECTION 8 :00 P.M. - City Council Meeting at City Hall SATURDAY -17- VACATION & CONFERENCES: DEAN O'BORSKY - Vacation May 13 -16 2:00 P.M. - Open Bids at City CHUCK NELSON - Vacation Hall for Insurance May 12 -17 Proposals MARLOW PRIEBE - Conference May 15 -16 GARY PLOTZ - Conference May 14 -16 TUEQAY -1.3- SPECIAL CITY ELECTION 8 :00 P.M. - City Council Meeting at City Hall SATURDAY -17- 0 • u r (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 N E X 0 R A N D U M DATE: May 8, 1986 TO: Mayor & City Council — ------------- — — — — — — — — — — — — — — — — ggOM: Gary D. Plotz, Cit y Administrator ------------------------------ SUWECT: Tour of Damaged Jail --- -------- ----------- -- - - - - -- 7:45 P.M. - TUESDAY. MAY 13 Dean O'Borsky would like the Council members to take a tour of the police station jail and observe the damage that was done to the cell by a recent occupant. He will also give an explanation of security. /ms cc: Dean O'Borsky AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, MAY 13, 1986 • 1. Call to Order - 8:00 P.M. 2. Invocation - Reverend Gerrit Molenaar, Jr. 3. Consideration of Minutes - Regular Meeting of April 22, 1986; Special ee 1ng Tp-riT $6 and April 29, 1986; Bid Opening of April 29, 1986 Action - Approve as distributed - Approve as amended 4. Routine Items (a) Reports of Officers, Boards and Commissions 1. Building Official's Report - April 1986 2. Nursing Home Board Minutes dated March 20, 1986 3. Parks & Recreation Board Minutes dated April 2, 1986 4. Tree Board Minutes dated April 2, 1986 (b) Consideration of Application to Sell Cigarettes At Retail By Roberts Park Concession Stand (c) Consideration of Appointments to Community Energy Council Action - Motion to reject - Motion to order report and minutes filed, issue cigarette license and ratify appointments 5. Public Hearing - 8:00 P.M. None 6. Communications, Requests and Petitions (a) Presentation And Discussion On Status of McLeod County Heritage Center By Carol Haukos and Everett Hantge Action - (b) Consideration of Request for Wastewater Treatment Plant Operator to Attend Water Pollution Control Meeting May 14 -16, 1986 Action - Motion to reject - Motion to approve request 1 CITY COUNCIL AGENDA - MAY 13, 1986 (c) Consideration of Request for Mayor And City Administrator to Attend • Coalition of Outstate Cities Legislative Conference May 29 -30, 1986 Action - Motion to reject - Motion to approve (d) Consideration of Recommendation from Police Station Building Committee for Execution of Contract for'Construction Manager Action - Motion to reject - Motion to approve entering into contract (e) Consideration of Request by Police Station Building Committee to Execute Contract with Ardchitectural firm of Thorbeck b Lambert, Inc. Action - Motion to reject - Motion to approve entering into contract (f) Presentation of Cost Estimate for Water Service Leads Problem By Chuck Barger of RCM Action - (g) Petition from Residents In Milwaukee Avenue Area Regarding Request for Stop Signs Action - (h) Consideration of Request for Parade Permit for Annual Memorial Day Parade On May 26, 1986 Action - Motion to reject - Motion to approve and issue permit and waive permit fee 7. Resolutions and Ordinances (a) Resolution No. 8277 - Appointing Legal Counsel Action - Motion to reject - Motion to waive reading and adopt (b) Resolution No. 8278 - Resolution for Purchase Action - Motion to reject - Motion to waive reading and adopt (c) Resolution No. 8279 - Resolution Canvassing Election Returns of City Special Election Held May 13, 1986 Action - Motion to reject - Motion to waive reading and adopt (d) Resolution No. 8280 - Resolution Authorizing Execution of Agreement Action - Motion to reject - Motion to waive reading and adopt • rA CITY COUNCIL AGENDA - MAY 13, 1986 8. Unfinished Business (a) Consideration of Rezoning As Requested By City Staff (Wastewater Treatment Plant Site) with favorable recommendation of Planning Commission (DEFERRED APRIL 22, 1986) Action - Motion to reject - Motion to approve rezoning - Motion to waive first reading of Ordinance No. 11/86 and set second reading May 27, 1986 (b) Consideration of City Composte Project In Fall 1986 (DEFERRED 4 -8 -86) Action - Motion to reject - Motion to approve 9. New Business (a) Consideration of Airport Ditch Cleanout Action - Motion to reject - Motion to approve proposal (b) Consideration of Utilities West of School Road Action - Motion to reject - Motion to approve construction (c) Consideration of Request By Civil Air Patrol to Move Training Classroom Trailer to Airport Action - Motion to reject - Motion to approve request (d) Consideration of Storm Sewer Improvement Action - Motion to reject - Motion to approve improvement work (e) Consideration of Application for Wine License for Shakey's Pizza Action - Motion to reject - Motion to set public hearing May 27, 1986 at 8:00 P.M. (f) Consideration of Settlement for Auto Accident of September 16, 1985 Action - Motion to reject - Motion to approve proposed settlement (g) Consideration of Settlement for Hutchinson Fire Truck /Motor Vehicle Accident of June 16, 1985 Action - Motion to reject - Motion to approve proposed settlement (h) Consideration of Employment Status of Assistant to Engineer Action - 3 CITY COUNCIL AGENDA - MAY 13, 15085 (i) Consideration of Obtaining Appraisal for Service Road On T.H. 7 West In Is Conjunction With Highway Improvement Project Action - (j) Discussion of Possible Lighting In City Parking Lots Action - (k) Discussion of Enforcement of Sign Ordinance Action - (1) Consideration of Installation of Handicap Ramp Near Entrance of Public Library (Requested by Alderman Mike Carls) Action - (m) Consideration of Purchase of IBM Computer for Burns Manor Nursing Home Action - Motion to reject - Motion to approve purchase (n) Consideration of Reducing Tennis Court Fee for Youth Action - Motion to reject - Motion to approve 0 (o) Consideration of Request for Funds for Excavation of Fill At Recreation Center Action - Motion to reject - Motion to approve excavation (p) Consideration of Late Night Use of Softball Field At Roberts Park Action - Motion to reject - Motion to approve (q) Consideration of Preliminary LAWCON /LCMR Grant Applications for Tartan Park And Linden Park Action - Motion to reject - Motion to approve applications 10. Miscellaneous (a) Communications from City Administrator 11. Claims, Appropriations and Contract Payments (a) Verified Claims Action - Motion to approve and authorize payment from appropriate i funds 12. Adjournment 4 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 22, 1986 1. The meeting was called to order by Mayor Ackland at 7:30 p.m. The following were present: Alderman Mike Carls, Alderman John Mlinar, Alderman Marlin Torgerson, Alderman Pat Mikulecky and Mayor Paul L. Ackland. Also present: City Administrator Gary D. Plotz, City Attorney James Schaefer and Engineering Director Marlow V. Priebe. 2. INVOCATION The invocation was given by Reverend Darrell Thalmann. 3. MINUTES The minutes of the bid opening of April 2, 1986, special meetings of April 7, 1986 and April 10, 1986 and regular meeting of April 8, 1986, were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL REPORT - MARCH 1986 2. PLANNING COMMISSION MINUTES DATED MARCH 20, 1986 Alderman Torgerson moved to order the financial report for March 1986 and the planning commission minutes dated March 20, 1986 filed. Motion seconded by Alderman Mikulecky and unanimously carried. 5. PUBLIC HEARING - 8:00 P.M. (a) STATE HIGHWAY 7/22 IMPROVEMENT PROJECT Mayor Ackland opened the public hearing at 8:00 p.m. Jim Koivisto, traffic engineer for MN Department of Transportation summarized the proposed project. This is a safety project on T.H. 7 West, which includes about one mile of highway, from Shady Ridge Road east to Kouwe Street. The project would include a signal light at the School Road intersection (cost about $75,000) and road widening with the addition of left and right turn slots at School Road and California Street (cost about $550,000). After approval of the proposed layout and plan, the project would be put up for bids in July, 1986, with the expectation of completion this fall. The city and state would participate in 25% of the cost of the signal light and federal participation would be 75% for the light. There would be no cost to the city for the highway improvement portion of the project. A detour would be necessary on service roads during . construcion. After construction, the state would restore service roads to the previous condition. About 100 feet of surfaced 1 CITY COUNCIL MINUTES APRIL 22, 1986 temporary road should remain after the project for the city's benefit. The state's future plans are for a four -lane highway through town on T.H. 7, with the inclusion of curb and gutter. Daily traffic count on the highway is now 9,000 and growing. Everett Hantge and John Miller expressed concern that approaches to property on Hwy 7 will be removed or moved and that businesses on the north side of the highway will have reduced access. The manager of the Big Bear Store asked about reduced access to his business. Mr. Koivisto responded that all proposed changes are necessary for improved safety. A future service road on the north side of the highway would be a partial solution. There was discussion of the appropriate speed limit in the area. The highway is now posted for 55 mph and the city council prefers lower speed. Engineering Director Priebe recommended that the city plan for access roads on the entire length of affected highway before any improvements are made. The hearing was closed at 9:10 p.m, on a motion by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously. Resolution No. 8270 for Layout Approval of T.H. 7/22 was adopted on a motion by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously. Resolution No. 8275 Approving Channelization and Traffic Control Signals was adopted on a motion by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously. The council requested that MN Department of Transportation consider the city's concerns about an appropriate lower speed limit and good access to the north side of the highway. There should also be more advance public hearings for any future projects. Engineering Director Priebe was instructed to prepare a report showing stubbing out service lines for the service road area. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) REPORT BY CITY ATTORNEY ON ROBERT MCGEE LAWSUIT City Attorney Schaefer reported that Mr. McGee and his attorney have been served and that there has been no response yet. The court is being petitioned for a trial date. Junker Sanitation and their attorney have been served. (b) CONSIDERATION OF REQUEST BY CITY ADMINISTRATOR TO ATTEND CITY /COUNTY ANNUAL MANAGEMENT CONFERENCE MAY 14 -16, 1986 • n U (c) CONSIDERATION OF REQUEST FOR JAYCEE WATER CARNIVAL PERMITS: 1. PARADE PERMIT 2. DANCE PERMIT 3. FIREWORKS PERMIT • 4. PERMISSION TO CLOSE STREETS AND USE LIBRARY SQUARE CITY COUNCIL MINUTES APRIL 22, 1986 (d) CONSIDERATION OF REQUEST BY CITY ADMINISTRATOR TO ATTEND MINNESOTA PLANNING ASSOCIATION CONFERENCE APRIL 24 -26 (e) CONSIDERATION OF REQUEST BY PERSONNEL /TRANSIT COORDINATOR TO ATTEND SPRING PUBLIC TRANSIT CONFERENCE MAY 8 -9 (f) CONSIDERATION OF REQUEST FOR REDUCED REFUSE RATE (g) CONSIDERATION OF REQUEST BY CITY ATTORNEY TO ATTEND DWI SEMINAR ON MAY 8 -9 On a motion by Alderman Mikulecky, seconded by Alderman Carls, requests (b) through (g) were approved unanimously. (h) CONSIDERATION OF PETITION REGARDING NO PARKING ZONE ON HARRINGTON STREET Residents of the 800 and 900 blocks of Harrington Street presented a written petition to prohibit parking on the east side of the street due to congestion from the civic arena and recreation facility. In discussion, it was pointed out that part of the problem might be temporary since the parking lots will be completed this spring. The situation should be reviewed again after parking lots are in use. • On a motion by Alderman Mlinar, seconded by Alderman Carls and carried unanimously, the no parking request was approved. 7. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 10/86 - ORDINANCE AMENDING CABLE TELEVISION FRANCHISE AGREEMENT Following discussion, motion was made by Alderman Carls to waive second reading and adopt Ordinance No. 736 Amending Cable Television Franchise Agreement and to adopt Resolution 8274 Authorizing Disbursement of Cable Television Franchise Fees. Motion was seconded by Alderman Mlinar and carried unanimously. (b) RESOLUTION NO. 8273 - RESOLUTION FOR PURCHASE Resolution No. 8273 for the purchase of recreation equipment was approved on a motion by Alderman Carls, seconded by Alderman Mlinar and carried unanimously. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF UPDATING WATER NEEDS REPORT BY RCM (DEFERRED MARCH 25, 1986) . Chuck Barger from RCM presented the recommendation that a study be done to determine appropriate timing in upgrading equipment and to 3 CITY COUNCIL MINUTES APRIL 22, 1986 update water use data, which has changed significantly since last • report. Cost of the study would be $3,000. After discussion, motion was made by Alderman Carls, seconded by Alderman Torgerson and carried unanimously to authorize the study. (b) ITEM DELETED (c) CONSIDERATION OF KENTON KNUTSON FARM RENTAL Grant Knutson was present to request consideration on the 1985 rental of airport farmland since 12 to 13 acres were lost due to heavy rainfall and ditch drainage problems. A reduction of 15% of the rental, or $1,000, was made for similar reasons in 1984. It is anticipated that ditch maintenance to be done by the city this summer will alleviate any future problems. Future reductions should not be needed. Motion was made by Alderman Mlinar to reduce the Knutson rent for 1985 by 15 %. Seconded by Alderman Torgerson, it carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS • Motion was made by Alderman Carls to discontinue service on listed accounts on April 28 at 12 noon unless arrangements for payment are made. Seconded by Alderman Mlinar, the motion carried unanimously. (b) CONSIDERATION OF RENTAL AGREEMENT WITH MIDCONTINENT THEATRE CO. FOR MOTOR VEHICLE OFFICE SPACE Rental agreement at $350 per month was approved on a motion by Alderman Carls, seconded by Alderman Torgerson, carried unanimously. (c) CONSIDERATION OF PROPOSAL FOR WORK ON CITY /SCHOOL DISTRICT TENNIS COURT A motion was made by Alderman Torgerson to defer action until June 1 at which time usage and rentals of new tennis courts at the recreation facility will also be discussed. Motion was seconded by Alderman Mikulecky and carried unanimously. (d) CONSIDERATION OF ON -SALE NON- INTOXICATING MALT LIQUOR LICENSES: 1. PIZZA HUT 2. J'S PIZZA GARTEN 3. GOLD COIN RESTAURANT 4. GODFATHER'S PIZZA 5. CROW RIVER BOWLING LANES 6. CROW RIVER COUNTRY CLUB 7. 40 -HOUR WEEK Motion was made by Alderman Carls to approve requests and issue • licenses. Seconded by Alderman Mlinar, carried unanimously. 4 CITY COUNCIL MINUTES APRIL 22, 1986 • (e) CONSIDERATION OF OFF -SALE NON - INTOXICATING MALT LIQUOR LICENSES: 1. DEAN'S DISCOUNT FOODS 2. HUTCHINSON TOM THUMB FOOD MARKET 3. SOUTHTOWN MOBIL 4. MORE FOUR 5. ONE -STOP GAS 'N GROCERY 6. GEORGE'S FOOD & FUEL 7. ERICKSON FREEDOM STATIONS Motion was made by Alderman Carls to approve requests and issue licenses. Seconded by Alderman Mlinar, carried unanimously. (f) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY MARK GILHOUSEN WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Motion was made by Alderman Torgerson to approve and waive reading and adopt Resolution No. 8266. Seconded by Alderman Carls, carried unanimously. (g) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY LEONARD RIEMANN WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Motion was made by Alderman Mlinar to approve and waive reading and adopt Resolution No. 8267. Seconded by Alderman Torgerson, the motion carried unanimously. (h) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY FARID • CURRIMBHOY WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Alderman Mikulecky moved to approve and waive reading and adopt Resolution No 8268. Motion was seconded by Alderman Torgerson and carried unanimously. • (i) CONSIDERATION OF PRELIMINARY PLAT OF SCHMIDTBAUER'S THIRD ADDITION SUBMITTED BY RICHARD SCHMIDTBAUER WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Alderman Torgerson moved to approve and waive reading and adopt Resolution No. 8269. Seconded by Alderman Carls, motion carried unanimously. (j) ITEM DELETED (k) CONSIDERATION OF REQUEST FOR TEMPORARY SIGN FOR BROWN GREENHOUSE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Motion was made by Alderman Torgerson to approve temporary sign, seconded by Alderman Mikulecky and carried unanimously. (1) CONSIDERATION OF SKETCH PLAN AS SUBMITTED BY ALTON ALBRECHT TO MCLEOD COUNTY (WITHIN TWO MILE RADIUS) WITH NO OBJECTION FROM PLANNING COMMISSION I CITY COUNCIL MINUTES APRIL 22, 1986 Motion was made by with no objection. unanimously. Alderman Torgerson to recommend to the County Seconded by Alderman Mikulecky, carried (m) CONSIDERATION OF BIDS RECEIVED ON RENTAL FARMLAND PROPERTY AT MUNICIPAL AIRPORT (BIDS OPENED 4 -22) Administrator Gary Plotz reported no bids had been received except that of Eugene Birk, for $50 per acre for one year, with payment to be made May 1 and November 1. Motion was made by Alderman Torgerson and seconded by Alderman Carls to accept the Birk bid; motion subsequently amended by Alderman Carls, seconded by Alderman Torgerson to change the terms to one payment on November 1, consistent with other farmland rental. Amended motion carried unanimously. (n) CONSIDERATION OF REQUEST FOR PURCHASE OF EQUIPMENT FOR THE RECREATION - POOL FACILITY After discussion, motion was made by Alderman Mikulecky to approve the request, omitting bleachers in the amount of $3880. Motion was seconded by Alderman Carls and carried unanimously. (o) CONSIDERATION OF RECOMMENDATION BY DIRECTOR OF ENGINEERING REGARDING WATER SERVICE LEADS Director of Engineering Priebe showed samples of copper pipe in pitted condition. Chuck Barger of RCM reported there could be many possible causes for this deterioration, including electrolysis, excessive water velocity, aereated water, faulty manufacture, or water softening (in homes). Similar conditions have been noted in other areas. A detailed study would be required to pinpoint the cause or causes and to recommend a solution. Local industry would also benefit from the clearing up of the problem, since it would allow greater discharges of industrial copper. A couple of weeks time would be sufficient to develop a cost estimate for a study. Motion was made by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously to request a study cost estimate from RCM. (p) CONSIDERATION OF ESTABLISHING A SPECIAL COUNCIL MEETING /WORKSHOP DATE TO COMPLETE CITY POLICY HANDBOOK (PERSONNEL SECTION) The date of the meeting was set for Monday, April 28, 1986 at 8:00 p.TrL in the city council chambers. (q) CONSIDERATION OF RECOMMENDATION BY DIRECTOR OF ENGINEERING TO SET BID DATE FOR MAY 20, 1986 ON PROJECTS 86 -06 AND 86 -07 0 0 • • CITY COUNCIL MINUTES APRIL 22, 1986 On a motion by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously, the bid date was set for May 20. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR Administrator Plotz reported he had negotiated a contract for deed for the police station site on Franklin Street. Appraisal for the property was $96,703. The final negotiated price is $90,000, with a waiver of relocation benefits. Mrs. Goeders has asked for flexibility of a week or two from the August 1 possession date in case her final moving is delayed. There will need to be a special council meeting on Tuesday, April 29 at 5:30 p.m. for the purpose of accepting improvement bonds. After discussion concerning the special election for the police facility to be held on May 13, the council authorized the police building committee to design a quarter page advertisement in the Sho er, on a motion by Alderman Torgerson, seconded by Alderman s. asubsequently amended by Alderman Carls, seconded by Alderman Mlinar and carried unanimously. • Following discussion about dilapidated property on Roberts Road which is scheduled for demolition, motion was made by Alderman Carls, seconded by Alderman Mikulecky and carried unanimously to instruct city crews to put snow fence around the house as soon as possible. (b) COMMUNICATIONS FROM ALDERMAN MLINAR Alderman Mlinar reported a complaint from Joe Wesley concerning water drainage onto his property. Engineering Director Priebe was directed to present a report on options to relieve the problem. (c) COMMUNICATIONS FROM ALDERMAN MIKULECKY Alderman Mikulecky reported Shady Ridge residents have complained about the breakup of the road near Crow River Press. Engineering Director Priebe stated there will be storm sewer and new street construction next year in that area. (d) COMMUNICATIONS FROM ENGINEERING DIRECTOR Engineering Director Priebe reported a utility manhole is needed in the area of the liquor store. He has instructed that it be placed on the south half of the liquor store parking lot alleyway to allow for possible future expansion of the store. • 7 CITY COUNCIL MINUTES APRIL 22, 1986 The agreement for the parking lot adjacent to the Benjamin /Nemitz • property provides for portable curb. Permanent curb is preferred by the council. On a motion by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously, the construction of permanent curb was authorized. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Torgerson, seconded by Alderman Carls, to approve the claims and authorize payment from the appropriate funds. Motion carried unanimously. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:40 p.m. • • '_13 MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL MONDAY, APRIL 28, 1986 Mayor Ackland called the special meeting to order at 8:00 P.M. Present were: Alderman Mike Carls, Alderman John Mlinar, Alderman Marlin Torgerson, Alderman Pat Mikulecky, and Mayor Paul L. Ackland. Also present: City Administrator Gary D. Plotz, and Police Chief Dean O'Borsky. EDUCATION INCENTIVE AND TUITION REIMBURSEMENT PROGRAMS Police Chief O'Borsky presented a report on the education incentive and tuition reimbursement programs and requested this item be included in the personnel policy. REVIEW OF PERSONNEL POLICY IN HANDBOOK City Administrator Plotz and the City Council continued their review of the Hutchinson Handbook On Council Policies, Procedures And Practices, And Admin- istrative Orders. The last section to be covered was Personnel. During dis- cussion, several changes were made in the proposed text. • There was discussion regarding authority over the Police Department. The Police Commission has authorization for hiring, firing and disciplinary action within the Police Department while the City Council controls its budget. The duties and responsibilities of the City Administrator were discussed. It was reported that the break room at City Hall is now equipped for use of the employees. After discussion, the Council directed the City Administrator to send out a memorandum to all employees regarding coffee breaks. Alderman Carls suggested that the City Council hold a periodic educational meeting at which time someone knowledgeable about a specific topic or area would make a presentation. Alderman Mikulecky inquired about the upcoming Special City Election. ADJOURNMENT There being no further business, the meeting adjourned at 11:00 P.M. 0 0 • 0 MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 29, 1986 The special meeting was called to order by Mayor Ackland at 5:30 P.M. The following were present: Alderman Mike Carls, Alderman John Mlinar, Alderman Marlin Torgerson, Alderman Pat Mikulecky, and Mayor Paul L. Ackland. Also present: City Administrator Gary D. Plotz, Finance Director James Schaefer, and bond consultant Bill Fahey. Mr. Bill Fahey reported on the seven bids received and opened this morning. It was his recommendation to acceptthe bid of Allison - Williams Company of Min- neapolis, Minnesota for $463,012.50 at 6.1735 %. He then reviewed Resolution No. 8276. The motion was made by Alderman Mikulecky, seconded by Alderman Torgerson, to waive reading and adopt Resolution No. 8276, awarding the bid to Allison - Williams Company. Motion unanimously carried. There being no further business, the meeting adjourned at 5:52 P.M. W • IJ MINUTES BID OPENING TUESDAY, APRIL 29, 1986 The bid opening was called to order by City Administrator Plotz at 11:00 A.M. Present were: City Administrator Gary D. Plotz, Finance Director Kenneth B. Merrill, Bond Consultant Bill Fahey, and Administrative Secretary Marilyn Swanson. The publication notice for $1,075,000 General Obligation Improvement Bonds of 1986 was read. The following bids were opened: Allison - Williams Company $463,012.50 6.1735% Cronin & Co. 475,523.75 6.34031% First Bank 466,050.00 6.214% Miller Securities 465,562.50 6.2075% Northern Trust Co. 493,880.00 6.5850% Norwest Investment Services 470,637.50 6.2751% John G. Kinnard & Co. 470,017.50 6.2669% The bids were referred to the bond consultant for review and a recommendation to the City Council at a special meeting at 5:30 P.M. this evening. There being no further business, the meeting adjourned at 11:17 A.M. s • 0 03210 OMB No. 05074M: Approval Expires December INS , I Pea,. 0.404 Period In RNICN permits Issued APRIL 1986 PLEASE MAIL ON OR BEFORE THE 4TH DAY OF THE MONTH T COMMERCE U.S. sureaiiU OF aVaaaV OF TMe CaMWa t 1**u& (Pft a arrow my m wen R eNme4 REPORT OF BUILDING OR ZONING «yn PERMITS ISSUED AND LOCAL PUBLIC CONSTRUCTION 103300 2T 8 9999 083 1 0 26 9999 02730 CENSUS ate oNLr MOVER ►ITTRAN BLDG Off CITY HALL 37 VASMINBTON AVE VEST MUTC11I10301111 NM 35350 Has the geographic ceaeroge e1 this posit system Charged deN•4 this Wed? ❑ No O Yes - Explain in comments If as permits were issued during this Bureau of the Census MAIL THIS 1201 East Tooth Sweat lease read theinsvuctions before ' lod, enter (K) in boa end mum nn ❑ COPY TO completing help. 3effersonville, Ind. 47132 call collet 13011 763-7244, Section I - NEW RESIDENTIAL HOUSE- PRIVATELY OWNED PUBLICLY OWNED KEEPING BUILDINGS AND INm No. MunOer Valuation of Nmaber Valuation of Itdines Housint Builtlinp Mousin MOBILE HOMES construction construction u i s (Om/f cent.) y! 'an$ csnfel UI it l 7 (it) One - family houses. detached 101 2 2 154,746 One - family houses attached, each unit pervu t separated from adjoining units) by a well that extends from ground to roof 102 8 8 379,131 Two - family buildings 103 Three- and four - family buildings 104 Five-or -more family buildings 105 TJeTaI t9 TOTAL (Sum of 101 -105) 109 10 10 533,877 Mobile homes 112 3 3 Section 11 - NEW RESIDENTIAL NON. PRIVATELY OWNED PUBLICLY OWNED HOUSEKEEPING I„Om Number Valuation of Number Valuation of Utlines Rooms iltlin s g geoms BUILDINGS construction ffhMf cents) Construction Mini, Cenral (a) Bbl Ic) Oil lei ifl l I Motels, motels, and tourist cabins - intended for transient accommodations 213 Other nonhousekeeping shelter 214 Section III -NEW NONRESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED BUILDINGS lNeom Number Valuation of Numbs Valuation of Iltlinp ousint IsulNln onsint eonstruclion construction (a) lb) mils Icl (Donn canal (d) (e) unity If) (Omlf cents) Ig) Amusement and recreational buildings 318 - Churches and other religious buildings 319 Industrial buildings 320 Parking garages lopen to general public) 321 Service stations and repair garages 322 Hospitals and other institutional buildings 323 Office, bank, and professional buildings 321 '_ Public works and utilities buildings 325 ' Schools and other educational buildings 326 Stores and other mercantile buildings 327 Other nonresidential buildings 31B Structures other than buildings $a ism IV - ADDITIONS AND ALTERATIONS An increase in the number of housing - units (in the housing units column, `o w enter only the number of additional _ - units) 433 0 ,$ $change in Me number of - a n ho housing units 431 4 114.947 - c _° A decrease in the number of housing units (in the housing units column. enter only the number of decreased n units) 435 Residential garages and carports r• (attached and detached) 436 1 10,532 Ell All other buildings and structures 437 4 1,710,597 2 A 5 60 r. nuu'.9 'P Sign 66 Permits - $2,379,251 Valuation PLEASE CONTINUE ON REVERSE SIDE �► i I • t i I UCH" V - CONVERSIONS FMATSLY oaal0 ►uoLIDLY onto mor*w Yakatha of Neapr Val"U" at Kom tlesilt{ ldhN M Mq CanablKHOn aaKa Ralf aaaea7 laws ft1 4:4 ante ffaMe epnW lal UI Id UI lei In 41 Nonresidential and m housskasping buildings to housekeeping buildings 540 Housekeeping buildings to nonresidential and nonhousekeeping buildings 541 Saetlaa VI - DEMOLITIONS AND RA21NG OF BUILDINGS One - family buildings attached and detached 645 1 1 T.o-fsmily buildings 646 _ Y Three- and four - family buildings 647 - Five -or -more family buildings 646 All other buildings and structures 649 Section Vll - ADDITIONAL INFORMATION FOR INDIVIDUAL PERMITS OF $500,000 OR MORE Please provide in the space below, additional information for each individual permit valued at $500,000 or more entered in sections I through V. tem r6 Irom Narne and address of Owner$hip Valuatl cf Numner of Number Sec. Des[riDtiM owner n Wilder Mark (Xf [on3eu[ei0r1 hnU3ing Ot I -V une (Omit w W units buildings (a) (b) (c) (d) (a) Y) lg) Kind M building 3 M C:PWany_____________ 0j Private Industrial Sib adtlreaa 115L. -- ---- __ ________ E] Public 7 Hwy. 22 South Hutch. Hutchinson, MN 55350 51,703,500 - Kind of building _______________________ ❑Private _____________ 51M adbsas _______________________ ❑Public Kind of Wilding ❑ Private fill address _______________________ ❑Public Kind of building _________ ❑Private ______________ Site aadrus _______________________ ❑Public Kind M building _______________________ ❑Private Site adhaas __ _ ❑ Publie Kind of building __ _ ❑Private Sib awns _______________ ❑Public Kind of Wilding _____ ❑Private Sib address _____________ ❑Public Kind b Wilding ❑ Private -Cl; _ a___ ddasa _ _____________ _______________________ ❑Public Kind of Wilding _______________________ Pirate Site aldrasa _______________________ ❑Public Comments Name of person m contact Yawing this spat Tele"Nne Honer Pittman Nsa code Number Ealenmon Title 1 Suildincr Official 612 587 -5151 210 eowu uov a -n -en 1 i i i r • • BURNS MANOR MUNICIPAL NURSING HOME Minutes - March - 1986 The Board of Directors for Burns Manor Municipal Nursing Home met Thursday, March 20, 1986 at Burns Manor, 5:30 p.m., President Larry Graf presiding. Members present: Larry Graf Gloria Dansereau Keith Duehn Esther Kuehl Jim Mills Marge Putney Mavis Geier David Jensen Members absent: John Mlinar Guests present: Walt Clay and Randy Bruer, Hutchinson Telephone Co. representatives. Walt Clay, Hutchinson Telephone Company, presented the electronic telephone system, that is suggested for Burns Manor. Discussion followed concerning cost and if the system is large enough to facilitate an updated facility. The phone will be installed in a new location and personnel will be hired as receptionists. Larry Graf, President, welcomed the new members, Jim Mills and Marge Putney to the board of directors. • MINUTES OF PAST MEETING: A motion was made by Keith Deuhn and seconded by Gloria Dansereau to approve the minutes, with the correction of purchase instead of purpose, for Memorial Funds. Motion carried. ACCOUNTS PAYABLE: A motion was made by Esther Kuehl and seconded by Keith Duehn to approve for payment the attached listing of accounts and cash disbursements in the amount of $47,327.98. Motion carried. TELEPHONE SYSTEM: A motion was made by Gloria Dansereau and seconded by Esther Kuehl to install the electronic telephone system. All in favor. Motion carried. FINANCIAL REPORT: David Jensen presented a detailed financial report and budget. A motion was made by Gloria Dansereau and seconded by Keith Duehn to approve the budget as presented by David Jensen, Financial Advisor. All in favor. Motion carried. The Board of Directors thanked David Jensen for the report. OLD BUSINESS: A. Lawsuit: Tom Hinde vs City of Hutchinson. The Attorneys are scheduled at Burns Manor, May 8, 1986, at 12:30 p.m. // -2 (z) March Minutes Page 2 OLD BUSINESS CONTINUED: B. Employee Health Insurance: Larry Graf reported on his discussion with Gary Plotz concerning employee health insurance. The City Attorney has rendered the opinion that the health insur- ance is to be put out on bids. The specifications will combine the entities in different groupings. A motion was made by Gloria Dansereau and seconded by Jim Mills that Burns Manor Employees be grouped alone in the bid specifica- tions. Motion carried. NEW BUSINESS: A. Tom Hinde Paintings: Barb Bullert wishes to donate the paintings that she assisted Tom in painting while he lived at Burns Manor. Tom has given the paintings to Barb as a gift. I have re- ceived legal opinions from Jim Schaefer and Mark N. Stageberg, (Lommen, Nelson, Cole and Stageberg) and was assured that Burns Manor may accept the gift of Tom's paintings which will be dis- played in the hall near the room where Tom lived. A motion was made by Jim Mills and seconded by Gloria Dansereau to accept the donation from Barb Bullert of Tom Hinde's paintings. All in favor. Motion carried. B. Risk Management Consultants: American Risk Services, Inc. is providing the services that had been offered by Dwight Tange. If the contract is renewed, the cost will be approximately $800.00 per month, travel will be an added expense. The City Council will hire the consultants and we will be assessed our share. C. S.T.E.P. Students: S.T.E.P. Students from Vo -Tech are receiving their practical experience at Burns Manor. D. Patient Satisfaction Surveys: Patient Satisfaction Surveys were available. E. Quality Assurance: Quality Assurance Assessments were completed in February. New classification rates should be in effect April 1, 1986. F. Burns Manor Task Force: The Governer is considering appointing a Task Force for an interpretation of the Nursing Home moratorium to address upgrading of existing facilities. 11 E L March Minutes Page 3 There being no further business, President Larry Graf adourned the meeting. The Burns Manor Board of Directors will meet Thursday, April 24, 1986 at 5:30 p.m., in the Annex Sun Porch at Burns Manor Municipal Nursing Home. ATTEST: Larry Graf, President Respectfully submitted: Mav s J. Ge er, Secretary • MINUTES Parks & Recreation Board April 2, 1986 Membere Present: Lyle Block, Roy Johnsen, Pat Mikulecky, Roger Haggemmiller, Betsy Connelly and Kathy McGraw. Also present were Bruce Ericson, John McRaith, Tracy Meisner, Mary Haugen, Mark Schnobrich and Karen McKay. The meeting was called to order at 5:40 p.m. Minutes There was a correction for the March minutes, the field house is to be used for tennis, volleyball and basketball purposes. The minutes dated March 12, 1986 were then approved by a motion made by Roger Haggenmiller and seconded by Roy Johnsen. The board unanimously agreed. Representing the Junior Parks and Recreation Board was Matt Hayden. He summarized for the the board the interests of the junior and senior high students for summer recreation. The activities will be organized and published in the summer brochure. • 1986 -g/ LAWCON Application Ralph Johnson and Dale Redetzke were present, their interest was with environmental education. They felt the area north of Tartan Park would provide a good location for student study and that students would also help clean up the park. Bruce told the board that grant applications are due by May 5th and that environmental study areas are a high priority for grant money. Pat Mikulecky made a motion that the preliminary grant forms be filled out for Tartan Park and related to environmental study. Betsy Connelly seconded the motion and the board unanimously agreed. Linden Park Master Plan The board saw a blueprint showing the landscape plan for Linden Park. The improvements include, the addition of two ballfields and excavation of the dirt north of the building. There will be some additional curb cuts made in the parking lot some time in May. Roy Johnsen made a motion to approve the master plan for Linden Park, Roger Haggenmiller seconded the motion and the board unanimously agreed. Proposal for 86' Concessions For Tartan Park The Traveler's are interested in supplying manpower in the concession stand at Tartan Park. The city will continue to order all of the supplies for the concession stands. The profits will be split between the city and the Baseball Association 70/30 with the city retaining 30 %. Roger Raggenmiller made a notion to accept the Travelers proposal for one year, Pat Mikulecky seconded the motion and the board unanimously agreed. Update on Recreation Center Bruce told the board that the plumbers have been notified that the water heater • needs to be replaced and the water softner has been installed. The lines in the field house will be repainted in aid -May, all activities will be completed by that time and nothing will be scheduled. The pool will be filled and started the week of April 21st. Betsy Connelly, representing the Swim Club requested that a rate be set for the club to use the pool for two weeks while the high school pool is dam for maintenance. After a brief discussion, Roger Raggenailler made a notion that $15 per hour maxima be set. Pat Mikulecky seconded the motion and the board unanimously agreed. 1986 Summer Programs The mass registration is scheduled for Saturday, May 3rd from 9:00 am-12 noon. There will registration for the Junior programs also. Something new this year is T -Ball for 5 year olds at Linden Park only. Miscellaneous Kathy McGraw was concerned about the height of the tennis nets, Bruce told her that the it has already been taken care of. She also informed the board that the Tennis Association will not be having a indoor invitational tournament this year because they did have a sponsor. Adjournment • The meeting was adjourned at 7:45 p.m. by a motion made by Roy Johnsen and seconded by Betsy Connelly. klm ID MINUTES Tree Board Meeting April 1986 Members Present: Roy Johnsen, Pat Mikulecky, Gary Plotz, Mark Schnobrich, Jerry Brown Stump Contractor As of date there has been no returning of bids for stump grinding in 1986. Mark Schnobrich will relax bids and attempt to secure a bid for this year. Arbor Day Plans Along with the Chamber of Commerce, the City will be holding a joint Arbor Day, Green Up -Clean Up day on May 10th at Library Square. Also boulevard tree distribution will take place at Roberts Park from 9:00 Am to 12:00 Noon. Plowman Parking Lot Firstate Federal Savings and Loan will be donating the plant materials •for landscaping that city owned lot. Schnobrich is working with Jay Beytien on that project. Combining Boards: Park Board & Tree Board Gary Plotz was present to get opinions as to whether the Tree Board should be combined with the Park Board to make one board. After discussion, Roy Johnsen and others present felt the duties now being performed such as landscaping of municipal buildings and park and street tree maintenance warranted a Tree Board. It was emphasized that the Tree Board would be getting final approval on park and laxd- scaping projects from the Park Board. Gary Plotz then decided to continue the activities of the Tree Board. Ivan Larson and Roy Johnsen have expired terms and an advertisement for board membership will be let out. Leasing Stump Grinder Again the board felt that due to liability costs and initial capital outlay being so high that the city should continue to contract out stump removal on city property. AFS Grove Park Jay Beytien, AFS Representative requested permission to place a large rock at the AFS Grove at Roberts Park. The rock would be used for permanently marking the Grove and also provide a site for plaques to be placed on describing the students the trees were planted for. Permission was granted. ,//-a. (�) 0 • 6tate of Ainnvgotav City ..... ........ ...... of ............. .................. County of ........ .... McLeod. .4ppZication No . ................ ....... .. ............ Application for License to Sell Cigarettes at Retail The undersi?ncd resident ... of the .. City of Hutchinson in the county of McLeod,,,,. State of Minnesota, HEPEBY MAKE , .4PIILJC,,J- TIOXFO-I? LICENSE to be issued to. Parks arks .... &.,,.R.e..c.r.e.a.,t,i,o.n..,.D,e,p,ar.t,.m,e.n,t .... ...... _ ......... ............................. to sell cigar6ttes and cigarette papers and wrappers at retail at......._ .. ........ . .. ... . ......... Roberts Park Concession Stand, ............................ -.1 ....... .... . ..... I ............ ........ .................. .. ............. in the ..Of Hutchinson ........................... - ................ i .... .. n said county and state for the term of six months . .... ..... - ..... ....... beginning ......day of...... ..... Aiay-- .... ... . ..... ......... g with the ....... _14th 19.86_ , subject to the laws of the State of Minnesota and the ordinances and regulations of said City Hutchinson ....... . ... ....... I .............................. of ........... --- ........... -.. - ..... - ....... -- ......................... pertaining thereto, and herewith deposit $ 0- ______ .... .... ........ in payment of the fee therefor. Dated.5 -................ ..._......_.............._....1 199. ........ . ...... "00 1 (612) 587 -5151 f1U1lN' CITY OF HUTCHINSON • 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: May 7, 1986 T0: Mayor and City Council — - - - -- -- ----------- - -- - -- FROM: Gary D. Plotz, City -- -- - - - - -- -- ---- - - - - -- SUBJECT: Annual Water Pollution Control Meeting _ Milwaukee — _ — — CED /Donohue has recommended that Randy DeVries attend the attached • seminar /meeting. See attached conference program. Randy has circled several of the topics he feels are most valuable. There are sufficient monies to the sewer fund for this expense. I recommend approval. /ms Attachment • W AEGISMA MUN A!1 persons attending the meeting are required to register. Admissions to all technical sessions and social functions will be by registration badge or specified ticket. Registration Times: I iivsday — 5:00 p.m. -8:00 p.m. Vvorinesday -8:00 a.m. -5:00 p.m. I hursday — 8:00 a.m.-5:00 p.m. Friday — 8:00 a.m. -10:00 a.m. We urge your advance registration. By registering in advance you are assured of admission into all functions & activities. Advance registration closes May 2, 1986. For pre - registrants, badges & tickets will be availa- ble at the registration desk during scheduled regis- tration times. Student Registration r:ollege and University students are encourged to ttend the meeting and become better acquainted uh working professionals In their chosen field. Students will be receiving registration material directly through their school. TECHNICAL PROGRAM Wednesday • May 14, 1 966 Mornl Plant Tours I our of th Island–Wastewater Treatment Plant will be available Wednesday morning, May 14, at no cost, but pre - registration Is required. A special registration form is provided on the plant tour Information sheet and should be returned with your meeting registration form. Afternoon 1:30 Opening Session and Keynote Address SE891oN A Industrial Was- te 2:25 -2:55 pm' Innovative Process for Removing SESSION B besign 2:25 -2:55 p.m. Phosphorus Removal Ina Mu- Heavy Metals from Wastewater (K.V. Mayenkar) 3:00 -3:30 p.m `5a iuy of Le achate Col- 3:00 -3:30 p.m. lection and Treatment at the Omega Hills Landfill (G.C. Woelfel) 3:30 -3:55 p.m. Break 3:654:25 p.m. Pre - Treatment of Contaminated Surface Runoff from O'Hare Inter- national Airport (D.M. Arntzen) 4:30 -5:00 p.m. Hazardous Material Control at an Industrial Wastewater Pre- Treat- 4:30 -5:00 p.m. ment Plant (A.L. Haase) SESSION B besign 2:25 -2:55 p.m. Phosphorus Removal Ina Mu- An Innovative Solution to Ad- vanced Treatment Standards at 60 Percent of the Cost (G.J. Bizjak) TECHNICAL PROGRAM Thursday - May 15, 1966 Morning SESSION C Groundwater* 8:55-9:25 a.m. Removal of Volatile Organic Com- pounds In Groundwater Using an Advanced Water Treatment System (J.L. Pope) 9:30 -10:00 a.m. An Assessment of Ground water Contamination Polei t! In the Grand Calumet Rivei Basin (W.A. Melville) 10:00 -10:25 a.m. Break 10:25 -10:55 a.m. Well Contamination Potern, . from Submersible Pump s - ing Oils (B.G. Urben) 11:00 -11:30 a.m. Remedial Action for Eau Claire Well Field VOC Con lamination (E.T. Manning) SESSION D Op ns 8:55 -9:25 a.m. onsiderations in Selecting Air Monitorin Egtli_Went LflnedSpace � 9:30 -10:00 a.m.lts of a New Con Entry Program ) 10:00 -10:25 a. 10:25 -10:55 a.m n -Line Instruments as Pro- cess Control Tools (R.J. Bro - -� 11:00 -11:30 a. f -based Plant Management System Expe- riences at the Litchfield, fs1N Wastewater Treatment Facil ! (D.L. Ching) Afternoon SESSION E.: ovwent AYfatts� Murphy, chair 1:35 -3:35 p. n Liability Insurance s the answers? Keynote Spa Representative Thomas Hauke, Chairman, t' consin Insurance Commissioner's Task Forcr: Insurance Liability Reactor Panel: Robert S. Smith, Esq., PE, NSPE Liability T, Force Bruce A. Weber, PE, President, Consulting f' nears Council of Wisconsin Gerald W. Farquhar, Esq. Consulting Attorn the Office for Professional Liability Researr h nicipal Stabilization Pond by Batch Chemical Precipitation (M.A. Zagar) ' 3:00 -3:30 p.m. Small Community Alternative Sewers (C.J. Pyche) 3:30 -tDesign 3:55 -r Supply and UV Disinfection; and Computer Control the Madison, Wisconsin Ninb rings Wastewater Treatment - Reusser, R.R. Riessi 4:30 -5:00 p.m. Flow - Relate mats: An Innovative Solution to Ad- vanced Treatment Standards at 60 Percent of the Cost (G.J. Bizjak) TECHNICAL PROGRAM Thursday - May 15, 1966 Morning SESSION C Groundwater* 8:55-9:25 a.m. Removal of Volatile Organic Com- pounds In Groundwater Using an Advanced Water Treatment System (J.L. Pope) 9:30 -10:00 a.m. An Assessment of Ground water Contamination Polei t! In the Grand Calumet Rivei Basin (W.A. Melville) 10:00 -10:25 a.m. Break 10:25 -10:55 a.m. Well Contamination Potern, . from Submersible Pump s - ing Oils (B.G. Urben) 11:00 -11:30 a.m. Remedial Action for Eau Claire Well Field VOC Con lamination (E.T. Manning) SESSION D Op ns 8:55 -9:25 a.m. onsiderations in Selecting Air Monitorin Egtli_Went LflnedSpace � 9:30 -10:00 a.m.lts of a New Con Entry Program ) 10:00 -10:25 a. 10:25 -10:55 a.m n -Line Instruments as Pro- cess Control Tools (R.J. Bro - -� 11:00 -11:30 a. f -based Plant Management System Expe- riences at the Litchfield, fs1N Wastewater Treatment Facil ! (D.L. Ching) Afternoon SESSION E.: ovwent AYfatts� Murphy, chair 1:35 -3:35 p. n Liability Insurance s the answers? Keynote Spa Representative Thomas Hauke, Chairman, t' consin Insurance Commissioner's Task Forcr: Insurance Liability Reactor Panel: Robert S. Smith, Esq., PE, NSPE Liability T, Force Bruce A. Weber, PE, President, Consulting f' nears Council of Wisconsin Gerald W. Farquhar, Esq. Consulting Attorn the Office for Professional Liability Researr h TECHAAL PROGRAM Friday - May 16, 1986 "ruing Operator's Breakfast 9 00 a.m. Speaker to be Announced "SION F Biological Treatment 15 a m. An Evaluation of the Com- bined Trickling Filter /Acti- vated Slud �r„ces (T. igmund) 10 20 a m. bmerged Biological Con- tactor - A State -of- the -Art Development in the Fixed / Film Reactor Technology ,15 -10:55 a.m. Design oT a igh Oxygen 6:30 a.m. Transfer Efficiency Closed 8:30 a.m. Loop Reactor for the DuPage 8:55 a.m. County, IL Knollwood Waste- 11:00 a.m. water Treatment Plant 1:30 p.m. (G.W. Wilcox) 1 00 -11:30 a.m. Removal of Nutrients Using 2:25 p.m. Biological Processes(G.Daigger) SESSION G Potpourri 3.15445 a.m. The Effects of Reduced Chlo- Friday, rine Usage on Coliform Popu- 7:30 a.m. lations in the Receiving Water 9:15 a.m. (J.H. Moser) 1a0-10:20 a.m. 'The Evaluation of the Use of Ozone for the Disinfection of a Contaminated Municipal Groundwater Supply 10 55 a. nergy Conservation in Was- tewater Treatment Facilities - ' n0- 11,30 wave Total Solids Procedure for Processing and Agricultu- ral Application of Sludge ,!,,r and wastewater operator certification ,'its will be granted for all technical sessions. 'alerworks credit - all others wastewater. DISPLAY AREA Exhibit hours have been expanded this year with the display area being open from 11:00 a.m. -6:30 p.m. on Wednesday, May 14, and from 8:00 a.m. - 12:00 p.m. on Thursday, May 15. SPOUSES PROGRAM ad in the Spouses Program Brochure, a hospitality room featuring an abundance of refreshments through- out the day in a quiet and relaxed atmosphere will be open on Wednesday and Thursday from 8:30 a.m. -5:00 p.m., and from 8:30 a.m. -11:30 a.m. on Friday for registered spouses of meeting atten- dees. ENTERTAINMEN1t The 59th Annual Meeting will begin with a Meet and Greet on Tuesday evening, May 13 from 7:00 p.m. -10:30 p.m. Come and sample some Milwau- kee Gemutlichkelt and enjoy an evening of ethnic music and dancing presented by the Milwaukee CFU Tamburitzans. Following the awards banquet on Thursday even - Ing, May 15, be prepared fora fun filled "Las Vegas Nite." "ON YOUR OWN" ENTERTAINMENT The Milwaukee area offers a broad range of fine restaurants and attractions for your free time enter- tainment. Detailed Information will be available In the registration area throughout the annual meet- ing. TRANSPORTATION Most major airlines and several commuter airlines provide service to the Milwaukee County Airport - General Mitchell Field from which limousine, taxi, and rental car services are available to the Pfister Hotel and other Downtown Milwaukee hotels. For those who drive, parking Is available at the hotel and in several parking facilities nearby. Central Staft Water Pollution Control Association 59th w Annual M �Y Meeting May 144691986 Pfister Hotel Milwaukee, Wisconsin Tuesday, May 13, 1986 7:00 p.m. Meet & Greet Wednesday, May 14, 1986 6:30 a.m. Golf Tournament 8:30 a.m. Jones Island Wastewater 8:55 a.m. Treatment Plant Tour 11:00 a.m. Displays Open 1:30 p.m. Opening Session 3:45 p.m. & Keynote Address 2:25 p.m. Technical Sessions Thursday, May 15, 1986 7:30 a.m. State Section Meeting 8:00 a.m. Displays Open 8:55 a.m. Technical Sessions 12:00 p.m. Association Luncheon 1:35 p.m. Government Affairs Session 3:45 p.m. Business Meeting 6:00 p.m. Social Hour 7:00 p.m. Annual Banquet 9:00 p.m. Entertainment Friday, May 16, 1986 7:30 a.m. Operator's Breakfast 9:15 a.m. Technical Sessions (612) 587 -5151 JffJH3UTCHINSONMINN,55350 ITY OF HUTCHINSON WASHINGTON AVENUE WEST M E M O R A N D U M DATE: May 8, 1986 TO: Mayor & City Council FROM: — — Gary D. Plotz, City—Administrator ----- --- -- ----- ------ - -- - -- SUB.TECT: — Coalition Of Outstate— Cities Legislative Confgrgnge— — — — Approval is requested to attend the Minnesota Coalition Of Outstate Cities • Legislative Conference May 29 -30 in Brainerd. Please see the attached agenda. Both the Mayor and I would like to attend. Sufficient monies are budgeted. /ms Attachment 40 MINNESOTA COALITION OF OQTSTATE CITIES LEGISLATIVE CONFERENCE May 29 -30, 1986 Madden's Resort and Conference Center on Gull Lake near Brainerd AGENDA Thursday, May 29: 10:00 Registration 10:30 -12:00 Review Coalition's legislative activity during the 1986 session. Review and evaluate 1986 consultant contract and performance. Preview of major legislative issues for the 1987 session. 12:00 -1:00 Lunch 1:00 -3:30 Consideration of Legislative Committee recommendations and action by the Coalition: a. Legislative strategy and positions for the 1987 session. b. Consultant contract and assessment level for the 1987 legislative session. Other Coalition business 3:30 -6:00 No scheduled activities 6:00 -7:30 Reception for Coalition members and legislators 7:30 -9:00 Dinner Keynote address - "Economic Recovery Initiatives for Outstate Minnesota" - Senator Roger Moe and Representative Doug Carlson Friday, May 30: / 9:30 -11:30 Presentations by Coalition members and discussions with legislators about Coalition positions on Local Government Aid, property taxation and other issues. Coalition member cities should arrive at Madden's by 10:00 a.m. for an important Coalition business meeting. TO: GRRY PLOTZ, CITY ROMIHISTRRTOR FROM: RICHRRO H. BURGRRT, UICE CHRIRMRH POLICE FRCILITY TRSK FORCE DRTE: MRY B. 1986 SUBJECT: ITEMS FOR CONSIDERRTION RHO INCLUSION TO THE RGENDR FOR THE REGULRR CITY COUNCIL MEETING OF MRY 13, 1986 Ue would like to have two items included on the agenda for the council meeting scheduled for May 13. It is our feeling that these items be considered separately and in the order as presented here. 1. The approval of the contract between the City of Hutchinson and CRM, INC. The committee, by unanimous vote has recommeded that the city authorize the execution of this contract. 2. The approval of the contract between the City of Hutchinson and Thorbeck & Lambert. The committee, also by unanimous vote, has recommended that the city authorize the execution of this contract. 3. The following supporting material is submitted for inclusion in the packets: R. R copy of the contract with CRM, INC. B. R copy of the contract with Thorbeck 8. Lambert. C. R memorandum from CRM to the committee. D. Copies of minutes of meeting recommending Council action. Ue feel that the issues are two separate issues and that they should be considered individually and in the logical sequence. R representative of CRM, INC and members of the task force will be present to answer- any questions. Ue would request an early appearance due to travel time restrictions on personnel from CRM. • �- E r Police Department Building Committee May B. 1906 Present: Uice Chairman Dick Burgart, Pat Durfee, Norman Tulman, • Chuck Jones, John Gregor, Dean 0 "Borsky, Uergil Florhaug, Sandra L. DuMez Absent: Chad Piehl, Phyllis Hegrenes Mr. Uergil Florhaug, President of CAM, INC., and Sandra DuMez, Executive Uice President of CAM. INC, once again net with the committee and discussed the items discussed in their memo of May 3, 1906. Members of the committee addressed questions and concerns to Mr. Florhaug and Ms. DuMez. Tulman introduced the following motion: "The Police Facility Building Committee requests that the City Council authorize the execution of a contract between the City of Hutchinson and CAM, INC." The motion was seconded by Durfee, and following discussion, the motion was Passed unanimously. D : urfee introduced the following motion " The Police Facility Building Committee requests that the City Council authorize the execution of a contract between the City of Hutchinson and Thorbeck 8 L'anbert." The notion was seconded by 0 "Borsky, and following discussion, the motion was passed unanimously. There being no further business, the meeting was adjourned. • 40 �—e� TE k ki CONSTRUCTION • ANALYSIS AND MANAGEMENT INCORPORATED 7401 CENTRAL AVENUE NORTH EAST e MINNEAPOLIS • MINNESOTA 55432 MEMORANDUM TO: BUILDING COMMITTEE MEMBERS FROM- CONSTRUCTION ANALYSIS AND MANAGEMENT, INC. Vergil M. Florhaug, President RE: HUTCHINSON POLICE STATION DATE: May 3, 1986 We met with T b L Architects and presented our theories on Project/ Construction Management to them. It is our opinion that they will be an advantageous Team member. We.broadly discussed fees, and they presented a letter to us that • suggested deletions to their responsibilities to reduce their fee to 7.5 %. This letter was addressed to the Hutchinson City Council and dated January 23, 1986. Our comments regarding this letter are as follows: Item 1: We have no problem with this item. Item 2: This reduction is realistic, but a cost would have to be budgeted to retain other consultants to.achieve competitive bidding. Item 3: We have no problem with this item if the Committee has the time required for three to four trips. It seems to us that it would be less costly and time consuming to have the meetings in Hutchinson. Item 4: Two visits a month should be a minimum, with a credit to the Owner if one or both are not used. Item 5: If this item is to be utilized, coordination and approvals must be pre- arranged to assure quality plans and specifications for the bid market. All documents must be a part of the bid package. We further discussed the $5,000.00 paid for programming to date. It is T 6 L's opinion that this was a separate contract and could not be applied to their fee request. • TELEPHONE (6 786 -7151 MEMORANDUM TO BUILDING COMMITTEE MEMBERS May 3, 1986 Page Two . We naturally have not performed a cost model at this point for your project, but in reviewing the projected square footage vs. T b L's projections of S85.00 /square foot for 10,557 square feet, the calculations show a budget of $899,045. It was our understanding that $750,000 is the total dollar amount to include construction, fees, and other costs such as F.F.E., but excluding the cost of the land. T b L informed us that this may be due to reduction in size and scope. We do not have information on this but T b L indicated that they would review their files in an attempt to locate such information. Any architectural agreement should address that the fee includes the potential of fast tracking the footing and foundation plans if this becomes necessary to perform this work prior to winter weather. Any agreement should also be based on a fixed fee for services based on the City's total budget. At your request, we solicited a preliminary quote for total Architectural /Engineering services from a firm familiar with your type of project. Their quote was 7.5% - 8 %. Based on the information available and the utilization of Construction Management, they felt 7.5% was realistic, including program review. . It is our feeling that if the goal for meeting with the City Council on May 13th is to be reached that our tentative meeting on May 8th, while it can be very short, is imperative. END OF MEMORANDUM 0 • Police Department Building Committee May 1, 1986 Present: Chairman Chad Piehl, Dick Burgart, Pat Durfee, Norman Tulman, Chuck Jones, John Gregor, Dean O'Borsky, City Attorney Jim Schaefer, Vergil Florhaug. Absent: Phyllis Hegrenes Mr. Vergil Florhaug, President of Construction, Analysis and Management, Inc., met with committee members and discussed his contract, fees, etc; He agreed to meet with Mr. Bob Lambert and discuss his theory on Project /Construction Management. He also agreed to talk to another architectural firm whom he has previously done business with to compare fees. City Attorney Jim Schaefer was also present and met with Mr. Florhaug regarding the contract. A meeting was set for 9:00 a.m., May 8, 1986 at the Fire Station to further discuss the information which will be put into the packet for the May 13th Council meeting. Included in the packet will be Mr. Florhaug's memo to the Building Committee members (enclosed), the City Attorney's letter of approval of the contract and the actual terms of the contract. (812) 587 -5151 %/any" CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST • HUTCHINSON, MINN. 55350 May 51 1986 Cpp y Paul Ackland and the Hutchinson City Council RE: Hutchinson Police Station Construction Project Dear Councilmembers: I have reviewed a copy of the Standard Form of Agreement Between Owner and Construction Manager proposed for the Hutchinson Police Station Project by Construction Analysis and Managements Inc. I find that the contract as proposed would be a valid and binding obligation between the city of Hutchinson and Construction Analysis and Managements Inc. if executed by the respective parties. For questions concerning the appropriateness of this type of contract for the proposed project and the qualifications of Construction Analysis and • Managements Inc. to perform the work required I would refer you to the Police Station Planning Committee. It is also my understanding that a representative of Construction Analysis and Management, Inc. will be present at the meeting in which this agreement will be considered by the Council and should be able to answer specific questions you may have. Sincerely yours, CITY OF HUTCHINSON By/ James H. Schaefer Hutchinson City Attorney JHS:dlp cc: Dean O'Borsky Sandra L. DuMez U �Q — el_4 i .- PrMimmen COPY THE ASSOCIATED GENERAL CONTRACTORS STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER (OWNER AWARDS ALL TRADE CONTRACTS) I, Document has important legal and insurance consequences; consultation with an attorney Is encouraged with respect o its completion or modification. AGREEMENT Made this day ist of May BETWEEN in the year Nineteen Hundred and Eighty Six CITY OF HUTCHINSON, MINNESOTA the Owner, and CONSTRUCTION ANALYSIS AND MANAGEMENT, INC. the Construction Manager. 7401 Central Avenue Northeast - Minneapolis, Minnesota 55432 For services in connection with the following described Project: (Include complete Project location and scope) CITY OF HUTCHINSON, MINNESOTA POLICE STATION The Architect/ Engineer for the Project is The Owner and the Construction Manager agree as set forth below: main provisions of this document have been derived, with modifications, from the following documents published by The American Institute of Architects -. AIA Document A111, wne,Contractor Agreement, © 1974; AIA Document A201, General Conditions, ©1976; AIA Document B801, Owner Construction Manager Agreement, ©1973, by The American Institute of Architects. Usage made of AIA language, with the permission of AIA, does not apply AIA endorsement or approval of this document. Further reoroduchnn of nnnvdnhr =n AIA materials without separate written permission from AIA is prohibited. AGC DOCUMENT NO. 510 © 1979 Associated General Contractors of America OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS! v+ TABLE OF CONTENTS ARTICLES PAGE 1 The Construction Team and Extent of Agreement 1 2 Consvi -'. -i Manager's Services .. _ ........ 1 3 The Owner's Responsibilities ............ _ . ... _ 4 4 Trade Contracts . .....:......................... '.4 5 Pieject Schedule .............................. 5 6 Construction Manager's Fee. .. .. .. .. 5 7 Reimbursable Costs ..... .. .. .. ...... .. _ _6 6 Changes in the Project ................. .. 7 9 Payments to the Construction Manager ............ 7 10 Insurance. Indemnity and Waiver of Subrogation _ 7 11 TerwdraMn, of the Agreement and Owner's Right to Perform Construction Manager's Obligations...... _ 9 12 Assignment and Governing Law ........ ........... .10 13 Miscellaneous Provisions .... ....................... _ _ ......10 14 Arbitration ... ...... ....._..._ .... _._....._.... i 0 ARTICLE 1 The Construction Team and Extent of Agreement •The CONSTRUCTION MANAGER accepts the relationship of trust and confidence established between him and the Owner by this Agreement. He covenants with the Owner to furnish his best skill and judgment and to cooperate with the Architect/ Engineer in fur- thering the interests of the Owner. He agrees to furnish efficient business administration and superintendence and to use his best ef- forts to complete the Project in the best and soundest way and in the most expeditious and economical manner consistent with the in- terest of the Owner. 1.1 The Construction Team: The Construction Manager, the Owner, and the Architect/ Engineer called the "Construction Team" shall work from the beginning of design through construction completion. The Construction Manager shall provide leadership to the Con- struction Team on all matters relating to construction. 1.2 Extent of Agreement This Agreement represents the entire agreement between the Owner and the Construction Manager and supersedes all prior negotiations, representations or agreements. When Drawings and Specifications are complete, they shall be iden- tified by amendment to this Agreement. This Agreement shall not be superseded by any provisions of the documents for construction and may be amended only by written instrument signed by both Owner and Construction Manager. 1.3 Definitions - 1.3.1 The Project is the total construction to be managed under this Agreement. 1.3.2 The Work is that part of the construction that a particular Trade Contractor is to perform and such General Condition Items that the Construction Manager performs with his own forces. 1.3.3 General Condition Items as used herein shall be deemed to mean provision of facilities or performance of work by the Con- struction Manager for items which do not lend themselves readily to inclusion in one of the separate trade contracts. General condi- tion items may include (but are not limited to) the following: watchmen; scaffolding; hoists; signs; safety barricades; water boys; cleaning; dirt chutes; cranes; shanties; preparation for ceremonies including minor construction activity in connection therewith; tem- porary toilets; fencing; sidewalk bridges; first aid station; trucking; temporary elevator, special equipment; winter protection; tem- porary heat, water, and electricity; temporary protective enclosures; field office and related costs thereof such as equipment fur- nishings and office supplies; progress, final and miscellaneous photographs; messengers; installation of Owner furnished items; post and planking; general maintenance; subsoil exploration; refuse disposal; field and laboratory tests of concrete, steel and soils; surveys; bench marks and monuments; storage on -site and off -site of long lead procurement items; and miscellaneous minor construc- tion work when it is not feasible for the Owner to secure competitive bids or proposals thereon. 1.3.4 The term day shall mean calendar day unless otherwise specifically designated ARTICLE 2 Construction Manager's Services The Construction Manager will perform the following services under this Agreement in each of the two phases described below 2.1 Design Phase Z.1.1 Consultation During Project Development: Advise the Owner on site selection and participate in development of project feasibility studies. Schedule and attend regular meetings with the Architect/Engineer during the development of conceptual and preliminary design to advise on site use and improvements, selection of materials, building systems and equipment. Provide recommendations on construction feasiblity, availability of materials and labor, time requirements for installation and construction, and factors related to cost including costs of alternative designs or materials, preliminary budgets, and possible economies. 2.1.2 Scheduling: Develop a Project Schedule that coordinates and integrates the Architect/ Engineer's design efforts and the Owner's activities with construction schedules. Update the Project Schedule incorporating a detailed schedule for all activities of the project, including realistic activity sequences and durations, allocation of labor and materials, processing of shop drawings and samples, and delivery of products requiring long lead -time procurement. Include the Owner's occupancy reauirements showing por- tions of the Project having occupancy priority. 2.1.3 Project Construction Budget: Prepare a Project budget as soon as major Project requirements have been identified, and update periodically for the Owner's approval. Prepare an estimate based on a quantity survey of Drawings and Specifications at the end of the schematic design phase for approval by the Owner as the Project Construction Budget. Update and refine this estimate for Owner's ap- proval as the development of the Drawings and Specificas proceeds, and advise the Owner and the Architect/ Engineer if it appears that the Project Construction Budget will not be met and make recommendations for corrective action. AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) A}NE 197q 2 1.4 Coordination of Contract Documents: Review the Drawings and Specifications as they are being prepared, recommending alternative solutions whenever design details affect construction feasibility or schedules without, however, assuming any of the Ar- chitect /Engineer's responsibilities for design. 2.1.5 Construction Planning. Recommend for purchase by the Owner and expedite the procurement of long -lead items to ensure their delivery by the required dates. • 2.1.5.1 Make recommendations to the Owner and the Architect/ Engineer regarding the division of Work in the Drawings and Specifications to facilitate the bidding and awarding of Trade Contracts, allowing for phased construction taking into consideration such factors as time of performance, availability of labor, overlapping trade jurisdictions, and provisions for temporary facilities. 2.1.5.2 Review the Drawings and Specifications with the Architect/ Engineer to eliminate areas of conflict and overlapping in the Work to be performed by the various Trade Contractors and prepare prequalification criteria for bidders. 2.1.5.3 Develop Trade Contractor interest in the Project and as working Drawings and Specifications are completed, assist the Owner in taking competitive bids on the Work of the various Trade Contractors. After analyzing the bids, recommend to the Owner that such contracts be awarded. 2.1.6 Equal Employment Opportunity. Determine applicable requirements for equal employment opportunity programs for inclusion in Project bidding documents. 2.2 Construction Phase 2.2.1 Project Control.' Monitor the Work of the Trade Contractors and coordinate the Work with the activities and responsibilities of the Owner, Architect/ Engineer and Construction Manager to complete the Project in accordance with the Owner's objectives of cost, time and quality. 2.2.1.1 Maintain a competent full -time staff at the Project site to coordinate and provide general direction of the Work and progress of the Trade Contractors on the Project. 2.2.1.2 Establish on -site organization and lines of authority in order to carry out the overall plans of the Construction Team, 2.2.1.3 Establish procedures for coordination among the Owner, Architect/ Engineer, Trade Contractors and Construction Manager with respect to all aspects of the Project and implement such procedures. 2.2.1.4 Schedule and conduct progress meetings at which Trade Contractors, Owner, Architect/ Engineer and Construction Manager can discuss jointly such matters as procedures, progress, problems and scheduling. 2.2.1.5 Provide regular monitoring of the Project Schedule as construction progresses. Identify potential variances between schedul- ed and probable completion dates. Review schedule for Work not started or incomplete and recommend to the Owner and Trade Con- tractors adjustments in the schedule to meet the probable complete date. Provide summary reports of each monitoring and document all changes in schedule. 2.2.1.6 Determine the adequacy of the Trade Contractors' personnel and equipment and the availability of materials and supplies to meet the schedule. Recommend courses of action to the Owner when requirements of a Trade Contract afre not being met. 2.2.2 Provision of Facilities: Provide all supervision, labor, materials, construction equipment, tools and subcontract items which are necessary for the completion of the General Condition Items which are not provided by either the Trade Contractors or the Owner. 2.2.3 Cost Control: Develop and monitor an effective system of Project cost control. Revise and refine the initially approved Project Construction Budget, incorporate approved changes as they occur, and develop cash flow reports and forecasts as needed. Identify variances between actual and budgeted or estimated costs and advise the Owner and Architect/ Engineer whenever projected cost ex- ceeds budgets or estimates. 2.2.3.1 Maintain cost accounting records on authorized Work performed under unit costs, actual costs for labor and materials, or other basis requiring accounting records. Afford the Owner access to these records and preserve them for a period of three (31 years after final payment. 2.2.4 Change Order. Develop and implement a system for the preparation, review and processing of Change Orders. Recommend necessary or desirable changes to the Owner and the Architect/ Engineer, review requests for changes, submit recommendations to the. Owner and the Architect/ Engineer, and assist in negotiating Change Orders. 2.2.5 Payments to Trade Contractors: Develop and implement a procedure for the review, approval, processing and payment of applica- tions by Trade Contractors for progress and final payments. 2 AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979 2.2.6 Permits and fees: Assist the Owner and Architect/ Engineer in oblaininrj all building permits and special permits for permanent im- provements, excluding any permits required to be obtained by the various Trade Contractors, such as permits for inspection, temporary facilib,Vs, etc. Assist in obtaining approvals from all the authorities having jurisdiction. 2.2.7 Owner's Consultants: If required, assist the Owner in selecting and retaining professional services of a surveyor, testing .laboratories and special consultants, and coordinate these services. 2.2.8 Review of Work and Safety_ Review the Work of Trade Contractors for defects and deficiencies in the Work without assuming any of the Architect/ Engineer's legal responsibilities for design and inspection. Review the safety programs of each of the Trade Contractors and make appropriate recommendations. In making such reviews, he shall not be required to make exhaustive or continuous inspections to check quality of work, safety precautions and programs in connection with the Project. The performance of such services by the Con- struction Manager shall not relieve the Trade Contractors of their responsibilities for performance of the work and for the safety of per- sons and property, and for compliance with all federal, state and local statutes, rules, regulations and orders applicable to the conduct of the Work. 2.2.9 Document Interpretation. Refer all questions for interpretation of the documents prepared by the Architect/ Engineer to the Ar- chitect /Engineer. 2.2.10 Shop Drawings and Samples: In collaboration with the Architect/ Engineer. establish and implement procedures for expediting the processing and approval of shop drawings and samples. 2.2.11 Reports and Project Site Documents. Record the progress of the Project. Submit written progress reports to the Owner and the Architect/ Engineer including information on the Trade Contractors' Work, and the percentage of completion. Keep a daily log available to the Owner and the Architect/ Engineer. 2.2.11.1 Maintain at the Project site, on a current basis: records of all necessary Contracts, Drawings, samples, purchases, materials, equipment, maintenance and operating manuals and instructions, and other construction related documents, including all revisions. Ob- tain data from Trade Contractors and maintain a current set of record Drawings, Specifications and operating manuals. At the completion of the Project, deliver all such records to the Owner. 2.2.12 Substantial Completion. Determine Substantial Completion of Work or designated portions thereof and prepare for the Ar- chitect /Engineer a list of incomplete or unsatisfactory items and a schedule for their completion. •2.2.13 Start -Up: With the Owner's maintenance personnel, direct the checkout of utilities, operations systems and equipment for readiness and assist in their initial start -up and testing by the Trade Contractors. 2.2.14 Final Completion. Determine final completion and provide written notice to the Owner and Architect/ Engineer that the Work is ready for final inspection. Secure and transmit to the Architect/ Engineer required guarantees, affidavits, releases, bonds and waivers. Turn over to the Owner all keys, manuals, record drawings and maintenance stocks. 2.2.15 Warranty, The Construction Manager shall collect and deliver to the Owner any specific written warranties or guarantees given by others, including all required Trade Contractor guarantees and warranties. 2.3 Additional Services At the request of the Owner, the Construction Manager will provide the following additional services upon written agreement between the Owner and Construction Manager defining the extent of such additional services and the amount and manner in which the Construc- tion Manager will be compensated for such additional services. 2.3.1 Services related to investigation, appraisals or valuations of existing conditions, facilities or equipment, or verifying the accuracy of existing drawings or other Owner - furnished information. 2.3.2 Services related to Owner- furnished equipment, furniture and furnishings which are not a part of the Work. 2.3.3 Services for tenant or rental spaces. 2.3.4 Services related to construction performed by the Owner. 2.3.5 Consultation on replacement of Work damaged by fire or other cause during construction, and furnishing services for the replace- ment of such Work. . 2.3.6 Services made necessary by the default of a Trade Contractor. 2.3.7 Preparing to serve or serving as an expert witness in connection with any public hearing, arbitration proceeding, legal pro- ceeding. DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979 2.3.0 Firiding housing for construction labor, and defining requirements for establishment and maintenance of base camps. 2.3.9 Obtaining or training maintenance personnel or negotiating maintenance service contracts. 2.3.10 Services related to Work performed by the Construction Manager other than General Conditions items. 2.3.11 Inspections of and services related to the Project after completion of the services under this Agreement. • 2.3.12 Providing any other service not otherwise included in this Agreement. ARTICLE 3 Owner's Responsibilities 3.1 The Owner shall provide full information regarding his requirements for the Project. 3.2 The Owner shall designate a representative who shall be fully acquainted with the Project and has authority to approve Project Con- struction Budgets, Changes in the Project, render decisions promptly consistent with Project Schedule and furnish information ex- peditiously. 3.3 The Owner shall retain an Architect/ Engineer for design and to prepare construction documents for the Project. The Ar- chitect/ Engineer's services, duties and responsibilities are described in the Agreement between the Owner and the Archttect /Engineer, a copy of which will be furnished to the Construction Manager. The Agreement between the Owner and the Architect/ Engineer shall not be modified without written notification to the Construction Manager. 3.4 The Owner shall furnish for the site of the Project all necessary surveys describing the physical characteristics, soil reports and sub- surface investigations, legal limitations, utility locations, and a legal description. 3.5 The Owner shall secure and pay for necessary approvals, easements, assessments and charges required for the construction, use or occupancy of permanent structures or for permanent changes in existing facilities. 3.6 The Owner shall furnish such legal services as may be necessary for providing the items set forth in Paragraph 3.5, and such auditing services as he may require. • 3.7 The Construction Manager will be furnished without charge all copies of Drawings and Specifications reasonably necessary for the execution of the Work. 3.8 The Owner shall provide the insurance for the Project as provided in Paragraph 10.4, and shall bear the cost of any bonds required 3.9 The services, information, surveys and reports required by the above paragraphs shall be furnished with reasonable promptness at the Owner's expense, and the Construction Manager shall be entitled to rely upon the accuracy and completeness thereof. 3.10 If the Owner becomes aware of any fault or defect in the Project or non - conformance with the Drawings and Specifications, he shall give prompt written notice thereof to the Construction Manager. 3.11 The Owner shall furnish reasonable evidence satisfactory to the Construction Manager that sufficient funds are available and com- mitted for the entire cost of the Project. Unless such reasonable evidence is furnished, the Construction Manager is not required to com- mence any Work, or may, if such evidence is not presented within a reasonable time, stop the Project upon 15 days notice to the Owner. 3.12 The Owner shall communicate with the Trade Conti Actors only through the Construction Manager ARTICLE 4 Trade Contracts 4.1 All portions of the Project other than General Condition Items shall be performed under Trade Contracts including contracts for general construction work with several construction trades. The Construction Manager shall assist the Owner in requesting and receiving proposals from Trade Contractors and Trade Contracts will be awarded by the Owner after the proposals are reviewed by the Architect/ Engineer, Con- struction Manager and Owner. 4.2 Trade Contracts will be between the Owner and the Trade Contractors. The form of the Trade Contracts including the General and Sup- . plementary Conditions shall be satisfactory to the Construction Manager. AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT !OWNER AWARDS CONTRACTS) JUNE 1979 u ARTICLE 6 ' Project Schedule 6.1 The services to be provided under this Contract shall be in general accordance with the following schedule: DESIGN PHASE (THROUGH BID PERIOD): CONSTRUCTION PHASE: Four (4) Months Ten (10) Months 5.2 At the time work commences, a Date of Substantial Completion of the project shall also be established. 5.3 The Date of Substantial Completion of the Project or a designated portion thereof is the date when construction is sufficiently com- plete in accordance with the Drawings and Specifications so the Owner can occupy or utilize the Project or designated portion thereof for the use for which it is intended. Warranties called for by this Agreement or by the Drawings and Specifications shall commence on the Date of Substantial Completion of the Project or designated portion thereof- 5.4 If the Construction Manager is delayed at, any, time in the progress of the Project by any act or neglect of the Owner or the Ar- chitect /Engineer or by any employee of either, or byany separate contractor employed by the Owner, or by changes ordered in the Pro- ject, or by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipatable, unavoidable casualties or any causes beyond the Construction Manager's control, or by delay authorized by the Owner pending arbitration, the Con- struction Completion Date shall be extended by Change Order for a reasonable length of time. ARTICLE 6 Construction Manager's Fee 6.1 In consideration of the performance of the Contract, the Owner agrees to pay the Construction Manager in current funds as com- pensation for his services a Construction Manager's Fee as set forth in Subparagraphs 6, 1.1 and 6.1.2. 6.1.1 For the performance of the Design Phase services, a fee of FIFTEEN THOUSAND AND NO /100 DOLLARS ($15,000.00) which shall be paid monthly, in equal proportions, based on the scheduled Design Phase time. 6.1.2 For work or services performed during the Construction Phase, a fee of TWENTY THOUSAND AND NO /100 DOLLARS ($20,000.00) which shall be paid proportionately to the ratio the monthly payment for the Cost of the Project bears to the estimated cost. Any balance of this fee shall be paid at the time of final payment. 6.2 Adjustments in Fee shall be made as follows: 6.2.1 For changes in the Project as provided in Article 8, the Construction Manager's Fee shall be adjusted by % of the addi- tional cost of the work for increases in the scope of the Project. 6.2.2 For delays in the Project not the responsibility of the Construction Manager, there will be an equitable adjustment in the fee to compensate the Construction Manager for his increased expenses, overhead and profit. 6.2.3 The Construction Manager shall be paid an additional fee in the same proportion as set forth in 6.2.1 if the Construction Manager performs services in connection with the reconstruction of any insured or uninsured loss. 6.3 Including in the Construction Manager's Fee are the following: 6.3.1 Salaries or other compensation of the Construction Manager's employees at the principal office and branch offices, except employees listed in Subparagraph 7.2.2. 6.3.2 General operating expenses of the Construction Manager's principal and branch offices other than the field office. •6.3.3 Any part of the Construction Manager's capital expenses, including interest on the Construction Manager's capital employed for the Project. 6.3.4 Overhead or general expenses of any kind, except as may be expressly included in Article 7. AGC DOCUMENT NO. 510 • OWNER- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979 ARTICLE 7 Reimbursable Costs 7.1 The Owner agrees to pay the Construction Manager for the reimbursable costs he incurs as defined in Paragraph 7.2. Such payment shall be in addition to the Construction Manager's Fee stipulated in Article 6. 7.2 Reimbursable Cost Items 7.2.1 Wages paid for labor in the direct employ of the Construction Manager in the performance of General Condition Items under ap- plicable collective bargaining agreements, or under a salary or wage schedule agreed upon by the Owner and Construction Manager, and including such welfare or other benefits, if any, as may be payable with respect thereto. 7.2.2 Salaries of the Construction Manager's employees when stationed at the field office, in whatever capacity employed, employees engaged on the road in expediting the production or transportation of materials and equipment, and employees in the main or branch of- fice performing the functions listed below: (Rates include all costs enumerated in sub - paragraph 7.2.3 related thereto.) PROJECT COORDINATOR: At Cost PROJECT MANAGER: Preconstruction (Design Phase): Non - Reimbursable Construction Phase: Non - Reimbursable up to eight (8) hours per week only when stationed at the Field Office for construction requirements). Requirements over eight (8) hours per week shall be reimbursable at $30.00 per hour. 7.2.3 Cost of all employee benefits and taxes for such items as unemployment compensation and social security, insofar as such cost is based on wages, salaries, or other remuneration paid to employees of the Construction Manager referred to in Subparagraphs 7.2.1 and 7.2.2. 7.2.4 The proportion of reasonable transportation, traveling, moving, and hotel expenses of the Construction Manager or of his officers or employees incurred in discharge of duties connected with the Project. Mileage will be reimbursable at .25¢ /mile, for 12P miles rotund tri�. 7.2.5 Cost including rental of all materials, supplies and equipment required to per orm General ondition It ms, including costs of transportation, storage and maintenance thereof. 7.2.6 Cost of the premiums for all insurance which the Construction Manager is required to procure by this Agreement or is deemed necessary by the Construction Manager. 7.2.7 Sales, use, gross receipts or similar taxes related to the Project imposed by any governmental authority, and for which the Con- struction Manager is liable. 7.2.8 Permit fees, licenses, tests, royalties, damages for infringement of patents and costs of defending suits therefor, and deposits lost for causes other than the Construction Manager's negligence. If royalties or losses and damages, including costs of defense, are incurred which arise from a particular design, process, or the product of a particular manufacturer or manufacturers specified by the Owner or Ar- chitect /Engineer, and the ConstructionManager has no reason to believe there will be infringement of patent rights, such royalties, losses and damages shall be paid by the Owner. 7.2.9 Losses, expenses or damages to the extent not compensated by insurance or otherwise fincluding settlement made with the writ- ten approval of the Owner.) 7.2.10 Minor expenses such as telegrams, long- distance telephone calls, telephone service at the site, expressage, and similar petty cash items in connection with the Project. 7.2.11 Cost of removal of all debris. 7.2.12 Cost incurred due to an emergency affecting the safety of persons and property. 7.2.13 Cost of data processing services required in the performance of the services outlined in Article 2. 7.2.14 Legal costs reasonably and properly resulting from prosecution of the Project for the Owner. 7.2.15 All costs directly incurred in the performance of the Project and not included in the Construction Manager's Fee as set forth in Paragraph 6.3 6 AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTSI JUNE 1979 ARTICLE 8 Changes in the Project 8.1 The Owner, without invalidating this Agreement, may order Changes in the Project within the general scope of this Agreement isting of additions, deletions or other revisions, the Guaranteed Maximum Price, if established, the Construction Manager's Fee and the onstruction Completion Date being adjusted accordingly. All such Changes in the Project shall be authorized by Change Order. 8.2 A Change Order is a written order to the Construction Manager signed by the Owner or his authorized agent issued after the execu- tion of this Agreement, authorizing a change in the scope of the Project, services to be provided, and /or the Construction Manager's Fee or the Construction Completion Date. The Construction Manager's Fee shall be adjusted as provided in Paragraph 6.2. • ARTICLE 9 Payments to the Construction Manager 9.1 The Construction Manager shall submit monthly to the Owner a statement, sworn to if required, showing in detail all moneys paid out, costs accumulated or costs incurred on account of the Cost of the Project during the previous month and the amount of the Con- struction Manager's Fee due as provided In Article 6. Payment by the Owner to the Construction Manager of the statement amount shall be made within ten (10) days after it is submitted. 9.2 Final payment constituting the unpaid balance of the Cost of the Project and the Construction Manager's Fee shall be due and payable when the Project is delivered to the Owner, ready for beneficial occupancy, or when the Owner occupies the Project, whichever event first occurs, provided that the Project be then substantially completed and this Agreement substantially performed. 9.3 If the Owner should fail to pay the Construction Manager within seven (7) days after the time the payment of any amount becomes due, then the Construction Manager may, upon seven (7) additional days' written notice to the Owner and the Architect/ Engineer, stop the Project until payment of the amount owing has been received. 9.4 Payments due but unpaid shall bear interest at the rate the Owner is paying on his construction loan or at the legal rate, whichever is higher. ARTICLE 10 Insurance, Indemnity and Waiver of Subrogation 10.1 Indemnity 10.1.1 The Construction Manager agrees to indemnify and hold the Owner harmless from all claims for bodily injury and property damage (other than the work itself and other property insured under Paragraph 10.4) that may arise from the Construction Manager's operations under this Agreement. 10.1.2 The Owner shall cause all Trade Contractors to agree to indemnify the Owner and the Construction Manager and hold them harmless from all claims for bodily injury and property damage (other than property insured under Paragraph 10.4) that may arise from that contractor's operations. Such provisions shall be in a form satisfactory to the Construction Manager. 10.2 Construction Manager's Liability Insurance 10.2.1 The Construction Manager shall purchase and maintain such insurance as will protect him from the claims set forth below which may arise out of or result from the Construction Manager's operations under this Agreement. 10.2.1.1 Claims under workers' compensation, disability benefit and other similar employee benefit acts which are applicable to the work to be performed. 10.2.1.2 Claims for damages because of bodily injury, occupational sickness or disease, or death of his employees under any applicable employer's liability law. 10.2.1.3 Claims for damages because of bodily injury, or death of any person other than his employees. 10.2.1.4 Claims for damages insured by usual personal injury liability coverage which are sustained (1) by any personas a result of an of- fense directly or indirectly related to the employment of such person by the Construction Manager or (21 by any other person. AGC DOCUMENT NO. 510 OWNEA- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979 10.2.1.6 Claims for damages, other than to the wom Itself, because of injury to or des«uctiun el tangibie propel ty, incluomg less of use therefrom. 10.2.1.6 Claims for damages because of bodily injury or death of any person or property damage arising out of the ownership, maintenance or use of any motor vehicle. 10.2.2 The Construction Manager's Comprehensive General Liability Insurance shall include premises — operations (including explo- sion, collapse and underground coverage) elevators, independent contractors, completed operations, and blanket contractual liability on all written contracts, all including broad form property damage coverage. 10.2.3 The Construction Manager's Comprehensive General and Automobile Liability Insurance, as required by Subparagraphs 10.2.1 and 10.2.2 shall be written for not less than limits of liability as follows: a. Comprehensive General Liability 1. Personal Injury $ 1,000,000 Each Occurrence $ 1,000,000 Aggregate (Completed Operations) 2. Property Damage $ 1,000,000 Each Occurrence $_1,000,000 Aggregate b. Comprehensive Automobile Liability 1. Bodily Injury $ 1,000,000 Each Person $ 11000,000 Each Occurrence 2. Property Damage $ 1,000,000 Each Occurrence 10.2.4 Comprehensive General Liability Insurance may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by an Excess or Umbrella Liability policy. 10.2.5 The foregoing policies shall contain a provision that coverages afforded under the policies will not be cancelled or nor renewed until at least sixty (60) days' prior written notice has been given to the Owner. Certificates of Insurance showing such coverages to be in Force shall be filed with the Owner prior to commencement of the Work. 10.3 Owner's Liability Insurance 10.3.1 The Owner shall be responsible for purchasing and maintaining his own liability insurance and, at his option, may purchase and maintain such insurance as will protect him against claims which may arise from operations under this Agreement. 10.4 Insurance to Protect Project 10.4.1 The Owner shall purchase and maintain property insurance in a form acceptable to the Construction Manager upon the entire Project for the full cost of replacement as of the time of any loss. This insurance shall include as named insureds the Owner, the Construc- tion Manager, Trade Contractors and their Trade Subcontractors and shall insure against loss from the perils of Fire, Extended Coverage, and shall include "All Risk" insurance for physical loss or damage including without duplication of coverage at least theft, vandalism, malicious mischief, transit, collapse, flood, earthquake, testing, and damage resulting from defective design, workmanship or material. The Owner will increase limits of coverage, if necessary, to reflect estimated replacement cost. The Owner will be responsible for any co- insurance penalties or deductibles. If the Project covers a, 3ddition to or is adjacent to an existing building, the Construction Manager, Trade Contractors and their Trade Subcontractors shall be named as additional insureds under the Owner's Property Insurance covering such building and its contents. 10.4.1.1 If the Owner finds it necessary to occupy or use a portion or portions of the Project prior to Substantial Completion thereof, such occupancy shall not commence prior to a time mutually agreed to by the Owner and Construction Manager and to which the in- surance company or companies providing the property insurance have consented by endorsement to the policy or policies. This insurance shall not be cancelled or lapsed on account of such partial occupancy. Consent of the Construction Manager and of the insurance com- pany or companies to such occupancy or use shall not be unreasonably withheld. 10.4.2 The Owner shall purchase and maintain such boiler and machinery insurance as may be required or necessary. This insurance shall include the interests of the Owner, the Construction Manager, Trade Contractors and their Trade Subcontractors in the Work. 10.4.3 The Owner shall purchase and maintain such insurance as will protect the Owner and Construction Manager against loss of use of Owner's property due to those perils insured pursuant to Subparagraph 10.4.1. Such policy will provide coverage for expediting ex- penses of materials, continuing overhead of the Owner and Construction Manager; necessary labor expense including overtime, loss of income by the Owner and other determined exposures. Exposures of the Owner and the Construction Manager shall be determined by mutual agreement and separate limits of coverage fixed for each item. AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979 10.4.4. 1 he Uwnel snag, Itied cupy or an pvuues Will it l.unsuucllun ivlyiagel neIore an unpu,,we to loss may a;wi. Cuptes of any subsequent endorsements will be furnished to the Construction Manager. The Construction Manager will be given sixty (601 days nobce of cc rlcellation, non- renewal, or any endorsements restricting or reducing coverage. If the Owner does riot intend to purchase such in- surance, he shall inform the Construction Manager in writing prior to the commencement of the Work. The Construction Manager may then effect insurance which will protect the interest of himself, the Trade Contractors and their Trade Subcontractors in the Project, the cost of which shall be reimbursable pursuant to Article 7. If the Construction Manager is damaged by failure of the Owner to purchase or • maintain such insurance or to so notify the Construction Manager, the Owner shall bear all reasonable costs properly attributable thereto. 10.5 Property Insurance Loss Adjustment 10.5.1 Any insured loss shall be adjusted with the Owner and the Construction Manager and made payable to the Owner and Construc- tion Manager as trustees for the insureds, as their interests may appear, subject to any applicable mortgagee clause. 10.5.2 Upon the occurrence of an insured loss, monies received will be deposited in a separate account and the trustees shall make distribution in accordance with the agreement of the parties in interest, or in the absence of such agreement, in accordance with an ar- bitration award pursuant to Article 14. If the trustees are unable to agree on the settlement of the loss, such dispute shall also be submit- ted to arbitration pursuant to Article 14. 10.6 Waiver of Subrogation 10.6.1 The Owner and Construction Manager waive all rights against each other, the Architect/ Engineer, Trade Contractors, and their Trade Subcontractors for damages caused by perils covered by insurance provided under Paragraph 10 4, except such rights as they may have to the proceeds of such insurance held by the Owner and Construction Manager as trustees. The Owner shall require similar waivers from all Trade Contractors and their Trade Subcontractors. 10.6.2 The Owner and Construction Manager waive all rights against each other and the Architect/ Engineer, Trade Contractors and their Trade Subcontractors for loss or damage to any equipment used in connection with the Project and covered by any property in- surance. The Owner shall require similar waivers from all Trade Contractors and their Trade Subcontractors. 10.6.3 The Owner waives subrogation against the Construction Manager, Architect/ Engineer, Trade Contractors, and their Trade Sub- contractors on all property and consequential loss policies carried by the Owner on adjacent properties and under property and conse- quential loss policies purchased for the Project after its completion. 10.6.4 If the policies of insurance referred to in this Paragraph require an endorsement to provide for continued coverage where there is a waiver of subrogation, the owners of such policies will cause them to be so endorsed. ARTICLE 11 Termination of the Agreement and Owner's Right to Perform Construction Manager's Obligations 11.1 Termination by the Construction Manager 11.1.1 If the Project is stopped for a period of thirty days under an order of any court or other public authority having jurisdiction, or as a result of an act of government, such as a declaration of a national emergency making materials unavailable, through no act or fault of the Construction Manager, or if the Project should be stopped for a period of thirty days by the Construction Manager for the Owner's failure to make payment thereon, then the Construction Manager may, upon seven days' written notice to the Owner and the Ar- chitect /Engineer, terminate this Agreement and recover from the Owner payment for all work executed, the Construction Manager's Fee earned to date, and for any proven loss sustained upon any materials, equipment, tools, construction equipment and machinery, in- cluding reasonable profit and damages. 11.2 Owner's Right to Perform Construction Manager's Obligations and Termination by the Owner for Cause 11.2.1 If the Construction Manager fails to perform any of his obligations under this Agreement, the Owner may, after seven days' written notice during which period the Construction Manager fails to perform such obligation, make good such deficiencies. 11.2.2 If the Construction Manager is adjudged a bankrupt, or if he makes a general assignment for the benefit of his creditors, or if a .receiver is appointed on account of his insolvency, or persistently disregards laws, ordinances, rules, regulations or orders of any public authority having jurisdiction, or otherwise is guilty or a substantial violation of a provision of the Agreement, then the Owner may, without prejudice to any right or remedy and after giving the Construction Manager and his surety, if any, seven days' written notice, dur- ing which period Construction Manager fails to cure the violation, terminate the employment of the Construction Manager and take possession of the site and of all materials, equipment, tools, construction equipment and machinery thereon owned by the Constructior. MENT NO. 510 • OWNER- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979 Manager and may finish the Project by whatever method he may deem expedient. In such case, the Construction Manager shall not he entitled to receive any further payment until the Project is finished nor shall he be relieved from his obligations assumed under Article 6' 11.3 Termination by Owner Without Cause 11.3.1 If the Owner terminates this Agreement other than pursuant to Subparagraph 11.2.2 or Subparagraph 11.3.2, he shall reimburse the Construction Manager for any unpaid Reimbursable Cost of the Project due him under Article 7, plus 111 the unpaid balance of the Fee computed upon the Cost of the Project to the date of termination at the rate of the percentage named in Subparagraph 6.2.1 or if the Construction Manager's Fee be stated as a fixed sum, such an amount as will increase the payment on account of his fee to a sum which bears the same ratio to the said fixed sum as the Cost of the Project at the time of termination bears to a reasonable estimated Cost of the Project when completed. The Owner shall also pay to the Construction Manager fair compensation, either by purchase or rental at the election of the Owner, for any equipment retained. In case of such termination of the Agreement the Owner shall further assume and become liable for obligations, commitments and unsettled claims that the Construction Manager has previously undertaken or incurred in good faith in connection with said Project. The Construction Manager shall, as a condition of receiving the payments referred to in this Article 11, execute and deliver all such papers and take all such steps, including the legal assignment of his contractual rights, as the Owner may require for the purpose of fully vesting in him the rights and benefits of the Construction Manager under such obligations or commitments. .11.3.2 After the completion of the Design Phase, if the final cost estimates make the Project no longer feasible from the standpoint of the Owner, the Owner may terminate this Agreement and pay the Construction Manager his Fee in accordance with Subparagraph 6.1.1 plus any costs incurred pursuant to Article 7, ARTICLE 12 Assignment and Governing Law 12.1 Neither the Owner nor the Construction Manager shall assign his interest in this Agreement without the written consent of the other except as to the assignment of proceeds. 12.2 This Agreement shall be governed by the law of the place where the Project is located. ARTICLE 13 • Miscellaneous Provisions 10 AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979 ARTICLE 14 Arbitration 14.1 All claims, disputes and other matters m question arising out of, or relating to, this Agreement or the breach thereof, except with .respect to the Architect /Engineer's decision on matters relating to artistic effect, and except for claims which have been waived by the making or acceptance of final payment shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining unless the parties mutually agree otherwise. This Agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. LJ • 14.2 Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitra- tion Association. The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. 14.3 The award rendered by the arbitrators shall be final and judgment maybe entered upon it in accordance with applicable law in any court having jurisdiction thereof. 14.4 Unless otherwise agreed in writing, the Construction Manager shall continue to carry out his responsibilities under this Agreement and maintain the Contract Completion Date during any arbitration proceedings, and the Owner shall continue to make payments in accor- dance with this Agreement. 14.5 All claims which are related to or dependent upon each other, shall be heard by the same arbitrator or arbitrators even though the parties are not the same unless a specific contract prohibits such consolidation. This Agreement executed the day and year first written above. ATTEST: ATTEST: OWNER: CITY OF HUTCHINSON, MINNESOTA 0 CONSTRUCTION MANAGER: CONSTRUCTION ANALYSIS AND MANAGEMENT, INC. By ergs or aug, President AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979 THE AMERICAN INSTITUTE OF ARCHITECTS i~3 AIA Document 8141 Standard Form of Agreement Between Owner and Architect 1977 EDITION 7HIS DOCU,MFA0 IIAS I%WONIAN7 I I(,AL CONSEQC)ENCES; CONSULTATI ON WITH AN ATTORNLV III 6NC0URA(,M W)III RISPLCT To I7S C OMPIETION OR MODIFICATION AGREEMENT 0 ade as of the day of in the year of Nineteen undred and BETWEEN the Owner and the Architect City of Hutchinson 755 Maple Hutchinson, MN 55350 Thorbeck & Lambert, Inc. 1409 Willow Street Minneapolis, Minnesota 55403 For the following Project: (include detai!ed descr!ptior of Project location and scope.) HUTCHINSON POLICE STATION Hutchinson, Minnesota The Owner and the Architect agree as sett iorth below. Clgrvn,hi 1111;, 19'_4, 19,48, 19, 1. 1,1 l'I'd, I,.1 1964, YIGO P4' 11 U. 4-4 19'- 1:, The Amrnem Inc111WC An hilrr!< I'1, Vrw 111d Mrnu� AA 11; .innl9 , I) (' _9Mx,. Kri +indm lvm . -i Ih� 11_ilr(�el hrmin or binLlul�.il qw ll.ioi il. pi .� 1 ..x� p. nn..inn Ib. AIA ..ir )h1 up1 i:bl i..v, 111 IL, I'nncd tIM. and will Le ,ul, In .1111 Im AIA DOCUMENT 0141- I AVNI K AK( l It l l( n(. K' 'I I'. n II I11,n I'. 1HE AMLKI(AN EOlIII,II 01 AK( III I1 1 S ',I v 1 %% J AU AA�)HIIA1 11� nr_ Lx [, B141 -1 TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT ARTICLE 1 ARCHITECT'S SERVICES AND RESPONSIBILITIES BASIC SERVICES The Architect's Basic Services consist of the five phases described in Paragraphs 1.1 through 1.5 and include normal structural, mechanical and electrical engineering services and any other services included in Article 15 as part of Basic Services. 1.1 SCHEMATIC DESIGN PHASE 1.1.1 The Architect shall review the prOgr,1111 funushed by the Owner to ascertain the requirements of the Project and shall review the understanding of such requirements with the Owner. 1.1.2 The Architect shall provide a preliminary evalua- tion of the program and the Project budget requirements, each in terms of the other, subject to the limitations set forth in Subparagraph 3.2.1. 1.1.3 The Architect shall review with the Owner Mterna- tive approaches to design and construction of the Project. 1.1.4 Based on the mutually agreed upon program and Project budget requirements, the Architect shall prepare, for approval by the Owner, Schematic DvNign Do( unlenh consisting of drawings and other documents illustrating the scale and relationship of Project components. 1.1.5 The Architect shall submit to the Owner a State- ment of Probable Construction Cost based on current area, volume or other unit costs. 1.2 DESIGN DEVELOPMENT PHASE 1.2.1 Based on the approved Schematic Design Docu- ments and any adjustments authorized by the Owner in the program or Project budget, the Architect shali pre- pare, for approval by the Owner, Design Development Doeuments'consisting of drawings and other documents to fix and describe the size and character (if the entire Project as to architectural, structural, mechanical and elec- trical systems, materials and such other element, a, may be appropriate. 1.2.2 The Architect shall submit to the Owner a further Statement,of Probable Construction Cost. 1.3 CONSTRUCTION DOCUMENTS PHASE 1.3.1 Based on the approved Design Development Doc- uments and any further adjustments in the scope or qual- ity of the Project or in the Project budget authorized by the Owner, the Architect shall prepare, for approval by the Owner, Construction Documents consisting of Draw- ings and Specifications setting forth in detail the require- ments for the construction of the Project. 1.3.2 The Architect shall assist the Owner in the prepara- tion of the necessary bidding information, bidding forms, the Conditions of the Contract, and the form of Agree- ment between the Owner and the Contractor. 1.3.3 The Architect shall advise the Owner of anv adjust- merits to previous Statements of Probable Construction Cost indicated by changes in requirements or general market conditions. 1.3.4 The Architect shall assist the Owner in connection with the Owner's responsibility for filing documents re- quired for the approval of governmental authorities hav- ing jurisdiction over the Project. 1.4 BIDDING OR NEGOTIATION PHASE 1.4.1 The Architect, following the Owner's approval of the Construction Documents and of the latest Statement of Probable Construction Cost, shall assist the Owner in obtaining bids or negotiated proposals, and assist in awarding and preparing contracts for construction. 1.5 CONSTRUCTION PHASE — ADMINISTRATION OF THE CONSTRUCTION CONTRACT 1.5.1 The Construction Phase will commence with the award of the Contract for Construction and, together with the Architec I's obligation to provide Basic Services under chi. ,lgreement, will terminate when final payment to the Contractor is due, or in the absence of a final Certificate for Payment or of such due date, sixty days after the Date Of Substantial Completion of the Work, whichever occurs lira. 1.5.2 Unless otherwise provided in this Agreement and incorporated in the Contract Documents, the Architect shall protide administration of the Contract for Construc- tion as set forth below and in the edition of AIA Docu- ment A201, General Conditions of the Contract for Con- struction, current as of the date of this Agreement. 1.5.3 The Architect shall be a eepresentative of the Owner during the Construction Phase, and shall advise and consult with the Owner. Instructions to the Contrac- tor shall be forwarded through the Architect. The Archi- tect .hall .have authority to act on behalf of the Owner only to the extent provided in the Contract Documents unless olhemise modified by written instrument in ac- cordance with Subparagraph - 1.5.16, 1.5.4 The Architect shall visit the site at intervals ap- propriate to the stage of construction or as otherwise agreed by the Architect in writing to become generally familiar with the progress and quality of the Work and to determine in general if the Work is proceeding in accord- ance with the Contract Documents. However, the Archi- tect shall not be required to make exhaustive or con- tinuous on -site inspections to check the quality or quan- tity of the Work. On the basis of such on -site observa- tions as an architect, the Architect shall keep the Owner informed of file progress and quality of the Work, and shall endeavor to guard the Owner against defects and deficiencies in the Work of the Contractor. 1.5.5 The Architect shall not have control or charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for Safety precautions and programs in connection with the Work. for the acts or omissions of the Contractor, Sub- AIA DOCUMENT 0141 • UtwNf R- ARCHITECT ACRI.I ME \T I IIIISII I \ItI r. Dl TION • It. u I'97 • A1.1% • r iq'T THE ANILRIC.AN INSTITUTE Of AROII TLC Is ; -3. \1 %% %OPK ' \iNt'I, N11. \ \ All IM;ION 11. C. B'[X" 9141 -1977 3 0 f ' I� W c ntractors or any other persons performing any of the or for the failure of any of them to carry out the in accordance with the Contract Documents. 1.5.6 The Architect shall at all times have access to the Work wherever it is in preparation or progress, 15.7 The Architect shall determine the amounts owing to the Contractor based on observations at the site and on evaluations of the Contractor's Applications for Payment, and shall issue Certificates for Payment in such amounts, as provided in the Contract Documents. 1.5.8 The Issuance of a Certificate for Payment shall constitute a representation by the Architect to the Owner, based on the Architect's observations at the site as pro- vided in Subparagraph 1.5.4 and on the data comprising the Contractor's Application for Payment, that the Work has progressed to the point indicated; that, to the ho.t of the Architect's knowledge, information and belief, the qual- ity of the Work is in accordance with the Contract Docu- ments (subject to an evaluation of the Work for con- formance with the Contract Documents upon Subsontial Completion, to the results of any subsequent tests re- quired by or performed under the Contract DOCIIII1CI11A, to minor deviations from the Contract Documents cor- rectable prior to completion, and to any specific qualifies tions stated in the Certificate for Payment); and that the Contractor is entitled to payment in the amount certified, However, the issuance of a Certificate for Payment shall not be a representation that the Architect has made any examination to ascertain how and for what purpose the ntractor has used the moneys paid on account of the tract Sum. .9 The Architect shall be the interpreter of the re- quirements of the Contract Documents and the judge of the performance thereunder by both the Owner and Contractor. The Architect shall render interpretations nec- essary for the proper execution or progress of the Work with reasonable promptness on written request of either the Owner or the Contractor, and shall render wrinen de- cisions, within a reasonable time, on all claims, disputes and other matters in question between the Owner and the Contractor relating to the execution or progress of the Work or the interpretation of the Contract Documents. 1.5.10 Interpretations and decisions of the Architect shall be consistent with the intent of and reasonabiv inferable from the Contract Documents and shall he in written or graphic form. In the capacity of interpreter .Ind judge, the Architect shall endeavor to secure faithful perform- ance by both the Owner and the Contractor. shall not show partiality to either, and shall not be liable for the result of any interpretation or decision rendered in good faith in such capacity. 1.5.11 The Architect's decisions in matters relating to artistic effect shall be final if consistent with the intent of the Contract Documents. The Architect's decisions on any other claims, disputes or other matters, in(Imling those in question between the Owner and the CnnI.-M tor, shall be subject to arbitration as provided in this Agree- ment and in the Contract Documents. 0 12 The Architect shall have authority to reject Work ich does not conform to the Contract Documents. Whenever, in the Architect's reasonable Opinion, it is necessary or advisable for the implementation of the intent of the Contract Documents, the Architect will have author- ity to require special inspection or testing of the Work in accordance with the provisions of the Contract Docu- ments. whether or not such Work be then fabricated, in- stalled or completed. 1.5.13 The Architect shall review and approve or take other appropriate action upon the Contractors submittals such as Shop Drawings, Product Data and Samples, but only for conformance with the design concept of the Work and with the information given in the Contract Documents. Such action shall be taken with reasonable promptness so as to cause no delay. The Architect's ap- proNal of a specific item shall not indicate approval of an assembly of which the item is a component. 1.5.14 The Architect shall prepare Change Orders for the Owners approval and execution in accordance with the Contract Documents, and shall have authority to order minor changes in the Work not involving an adjustment in the Contract Sum or an extension of the Contract Time which are not inconsistent with the intent of the Contract Documents. 1.5.15 The Architect shall conduct inspections to deter- mine the Dues of Substantial Completion and final com- pletion, shall receive and forward to the Owner for the Owner's review written warranties and related documents required by the Contract Documents and assembled by the Contractor, and shall issue a final Certificate for Pay- ment. 1.5.16 The extent of the duties, responsibilities and lim- itations of authority of the Architect as the Owner's rep- resentative during construction shall not be modified or extended without written consent of the Owner, the Con- tractor and the Architect. 1.6 PROJECT REPRESENTATION BEYOND BASIC SERVICES 1.6.1 If the Owner and Architect agree that more ex- tensive representation at the site than is described in Paragraph 13 shall he provided, the Architect shall pro- vide one or more Project Representatives to assist the Architect in carrying out such responsibilities at the site. 1.6.2 Sueb Project Representatives shall be selected, em- ployed and directed by the Architect, and the Architect shall be compensated therefor as mutually agreed be- tween the Owner and the Architect as set forth in an ex- hibit appended to this Agreement, which shall describe the duties, responsibilities and limitations of authority of such Project Representatives. 1.6.3 Through the observations by such Project Repre- sentatives, the Architect shall endeavor to provide further protection for the Owner against defects and deficiencies in the Work, but the furnishing of such project representa- tion shall not modify the rights. responsibilities or obliga- tions of the Architect as described in Paragraph 1.5. 1,7 ADDITIONAL SERVICES the following Ser'ices are not included in Basic Services unless so identified in Article 15. They shall be provided if authorized or confirmed in writing by the Owner, and they shall be paid for by the Owner as provided in this Agreement, in addition to the compensation for Bask Services. 4 6141 -1977 AIA DOCUMENT 8141 • ttll'NER- NRCHIII C1 A(,RI I VENT • rHIRWNTH EDITION • IUEY 19:' • AIA9 • Z 1977 1111. ANTI Kit A\ INti I I Ii 11 111 AN( III III I, 1'G NI%% NOR AVINUI, N.w'., l \'45111 NGTON, D.C. 21W* 1.7.1 Providing analyses of the Owner's needs, and pro- gramming the requirements of the Project. 1.7.2 Providing financial feasibility or other special studies. 1.7.3 Providing planning surveys, site evaluations, envi- ronmental studies or comparative studies of prospective sites, and preparing special surveys, studies and submis- sions required for approvals of governmental authorities or others having jurisdiction over the Project. 1.7.4 Providing services relative to future facilities, sys- tems and equipment which are not intended to he con- structed during the Construction Phase. 1.7.5 Providing services to investigate existing conditions or facilities or to make measured drawings thereof, or to verify the accuracy of drawings or other information fur- nished by the Owner. 1.7.6 Preparing documents of alternate, separate or sequential bids or providing extra services in connection with bidding, negotiation or construction prior to the completion of the Construction Documents Phase, when requested by the Owner. 1.7,7 Providing coordination of Work performed by separate contractors or by the Owner's own forces. 1.7.8 Providing services in connection with the work of a construction manager or separate consultants retained by the Owner. 1.7,9 Providing Detailed Estimates of Construction Cost, analyses of owning and operating costs, or detailed quan- tity surveys or inventories of material, equipment and labor. 1.7.10 Providing interior design and other sim'lar ser- vices required for or in connection with the selet tion, procurement or installation of furniture, furnishings and related equipment. 1.7.11 Providing services for planning tenant or rental spaces. 1.7.12 Making revisions in Drawings, Specifications or other documents when such revisions are inconsistent with written approvals or instructions previOLIsly given, are required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such doc- uments or are due to other causes not solely within the control of the Architect. 1.7.13 Preparing Drawings, Specifications and Supporting data and providing other services in connection with Change Orders to the extent that the adjusnnenl in the Basic Compensation resulting from the adjusted Con- struction Cost is nut ronvnemurate wnh the services re- quired of the Architect, provided such Change Orders are required by causes not solely within the control of the Architect. 1.7.14 Making investigations, surveys, valuations, inven- tories or detailed appraisals of existing facilities, and serv- ices required in connection with construction performed by the Owner. 1.7.15 Providing consultation concerning replacement of any Work damaged by fire or other cause during con- struction, and furnishing services as may be required in connection with the replacement of such Work. 1.7.16 Providing services made necessary by the default of the Contractor, or by major defects or deficiencies in the Work of the Contractor, or by failure of performance of either the Owner or Contractor under the Contract for Construction. 1.7.17 Preparing a set of reproducible record drawings Showing significant changes in the Work made during construction based on marked -up prints, drawings and other data furnished by the Contractor to the Architect. 1.7.18 Providing extensive assistance in the utilization of any equipment or system such as initial start -up or testing, adjusting and balancing, preparation of operation and maintenance manuals, training personnel for operation and m,unienance. and consultation during operation. 1.7.19 Providing services after issuance to the Owner of life final Certificate for Payment, or in the absence of a final Certificate for Payment, more than sixty days after the Date of Substantial Completion of the Work. 1.7.20 Preparing to serve or serving as an expert witness in connection with any public hearing, arbitration pro- ceeding or legal proceeding. 1.7.21 Providing services of consultants for other than the normal architectural, structural, mechanical and elec- trical engineering services for the Project. 1.7.22 Providing any other services not otherwise in- cluded in this Agreement or not customarily furnished in accordance with generally accepted architectural practice. 1,8 TIME 1.8.1 The Architect shall perform Basic and Additional Services as expeditiously as is consistent with professional skill and care and the orderly progress of the Work. Upon request of the Owner, the Architect shall submit for the Owner's approval a schedule for the performance of the Architect's services which shall be adjusted as required as the Project proceeds, and shall include allowances for peri- ods of time required for the Owner's review and approval of submissions and for approvals of authorities having jurisdiction over the Project. This schedule, when approved hx the Owner, shall not, except for reasonable cause, be exceeded by the Architect. ARTICLE 2 THE OWNER'S RESPONSIBILITIES 2.1 The Owner shall pro0cle full information regarding requirements for the Project including a program, which shall .el forth the Owner's design objectives, constraints and criteria, including space requirements and relation- ships, flexibility and expandability, special equipment and systems and site requirements. 2.2 If the Owner provides a budget for the Project it shall include contingencies for bidding, changes in the Work during construction, and other costs which are the responsibility of the Owner, including those described in this Article _' and in Subparagraph 3.1.2. The Owner shall, at the request of the Architect, provide a statement of funds available for the Project, and their source. AIA DOCUMENT a141 • OWNER - AR( .III IE( i ALRI I MINI • LI IIRII IN I I I I LIMON • µ'I) ' I477 • AIM+ • 0 1T7 THE AMERICAN INSTITUTE OF ARCHITECTS, 173, NU9 1URI, AVENUE, N.%V.. %%ASHINCTON, D.C. ]WW 6141 -1977 5 0 r1 �The Owner shall designate, when necessary, a rep - tative authorized to act in the Owner's behalf with respect to the Project. The Owner or such authorzed representative shall examine the documents submitted by the Architect and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of the Architect's services. 2.4 The Owner shall furnish a legal description and a certified land survey of the site, giving, as applicable, grades and lines of streets, alleys, pavements and adjoin- ing properly; rights -of -way, restrictions, easements, en- croachments, zoning, deed restrictions, houndaries and contours of the site; locations, dimensions and complete data pertaining to existing buildings, other improvement, and trees; and full information concerning available ser- ice and utility lines both public and private, aiwr c and below grade, including inverts and depths. 2.5 The Owner shall furnish the services of soil engi- neers or other consultants when such services are deemed necessary by the Architect. Such services shall include test borings, test pits, soil bearing values, percolation tests, air and water pollution tests, ground corrosion and resistivity tests, including necessary operations for determining sub- soil, air and water conditions, with reports and appropri- ate professional recommendations. 2.6 The Owner shall furnish structural, mechanical, chemical and other laboratory tests, inspections and re- ports as required by law or the Contract Documents. The Owner shall furnish all legal, accounting and in- nce counseling services as may be necessary at any e for the Project, including such auditing services as the Owner may require to verify the Contractor's Applica- tions for Payment or to ascertain how or for what pur- poses the Contractor uses the monevs paid by or on be- half of the Owner. 2.8 The services, information, surveys and reports re- quired by Paragraphs 2.4 through 2.7 inclusive shall be furnished at the Owner's expense, and the Architrct shall be entitled to oely upon the accuracy and completeness thereof. 2.9 If the Owner observes or otherwise becomes aware of any fault or defect in the Project or nonconto nlance with the Contract Documents. prompt avritten notice thereof shall be given by the Owner to the Ar hilec t. 2.10 The Owner shall furnish required information and services and shall render approvals and decisions as ex- peditiously as necessary for the orderly progress of the Architect's services and of the Work. ARTICLE 3 CONSTRUCTION COST 3.1 DEFINITION 3.1.1 The Construction Cost shall be the total cost or estimated cost to the Owner of all elements of the Project designed or specified by the Architect. 1*2 The Construction Cost shall include at current rket rates, including a reasonable .dlmkanre for over- head and profit, the cost of labor and m.ii,ml, nunOwd by the Owner and any equipment which has been do- signed, specified, selected or specially provided for by the Architect. 3.1.3 Construction Cost dues not include the compen- sation of the Architect and the Architect's consultants, the cost of the land, rights -of -way, or other costs which are the responsibility of the Owner as provided in Arti- cle 2. 3.2 RESPONSIBILITY FOR CONSTRUCTION COST 3.2.1 Lvaluations ut the Owner's Project budget, State. ment, of Prnhahle Construction Cost and Detailed Estimates of Construction Cost, if any, prepared by the Architect, represent the Architect's best judgment as a design professional familiar with the construction indus- trv. It i, rrco,.ni7ed, however, that neither the Architect nor the Owner has control over the cost of labor, mate- rials or equipment, over the Contractor's methods of de- termining bid prices, or over competitive bidding, market or negrlti, Ling conditions, Accordingly, the Architect cannot and does not %Narrant or represent that bids or negotiated prices will not vary from the Project budget proposed, established or approved by the Owner, if any, or from any Statement of Probable Construction Cust or other cost estimate or evaluation prepared by the Archi- tect. 3.2.2 No fixed limit of Construction Cost shall be estab- lished as a condition of this Agreement by the furnishing, proposal or establishment of a Project budget under Sub- paragraph - 1.1.2 or Paragraph 12 or otherwise, unless such fixed limit has been agreed upon in writing and signed by the parties hereto. If such a fixed limit has been estab- lished, the Architect shall be permitted to include con - tingencie, for design, bidding and price escalation. to de- termine what materials, equipment, component systems and type, of construction are to be included in the Con - Iraci Documents, to make reasonable adjustments in the scope of the Project and to include in the Contract Docu- ments alternate bids to adjust the Construction Cost to the fixed limit. Anv such fixed limit shall be increased in the amount of any increase in the Contract Sum occurring after execution of the Contract for Construction. 3.2.3 If the Bidding or Negotiation Phase has not com- menced within three months after ;he Architect submits the Construction Documents to the Owner, any Project budget or fixed limit of Construction Cost shall be ad- juster) to reilect any change in the general level of prices in the construction industry between the date of submis- Nion of the Construction Documents to the Owner and the dale on which proposals are sought. 3.2.4 If a Project budget or fixed limit of Construction Cbst 'adjusted as provided in Subparagraph 3.2.3) is ex- corded by the lowest bona fide bid or negotiated pro- posal, the Owner Shall (1! give written approval of an increase in Such fixed limit, (2) authorize rebidding or re- negotialine of the Project within a reasonable time, (3) if the I'nyert is abandoned, terminate in accordance with Paragraph 10.2, or (4) cooperate in revising the Project scope and quality is required to reduce the Construction Cost. In the case of (4), provided a fixed limit of Construc- tion Cost has been established as a condition of this Agree- ment, tho , \rrhileri, without additional charge, shall mod - nv the Drawings and Specifications as necessary to comply 6 0141 -1977 AIA 001 UMF%t BN11(M\t.a AxuunI I;.,, x i nu a.; i ua iu.enn. DnuEN. W to -1177. MAN • ®1977 THE AMILRICAN IW HUtl 01 .SRUIIU.I.T�, CV. NL %% 10¢6 M'UVE. N.L \'., wA6niNGTON, D.C. 20006 with the fixed limit. The providing of such service shall be the limit of the Architect's responsibility arising from the establishment of such fixed limit, and having done so, the Architect shall be entitled to compensation for all ,err6 c, performed, in accordance with this Agrvenwrit. kvhvil er or not the Construction Phase i =_ commencvd ARTICLE 4 DIRECT PERSONNEL EXPENSE 4.1 Direct Personnel Expense is defined as the diretr sal- aries of all the Architect's personnel eng,lged on the Prol- ect, and the portion of the cnNt of thvil oral n,l,llnr .roll customary contributions and henefit, related thereto -I.,. h as employment 6rxv, and other slalul„ry emplo,,m h, 1. fits, insurance, sick leave, holidays, vacations, pen,ior, and similar contributions and benefits. ARTICLE 5 REIMBURSABLE EXPENSES 5.1 Reimbursable Expenses are in addition to the Com- pensation for Basic and Additional Services and include actual expenditures made by the Architect and tho Arch - lect's employees and consultants ir, the interest of Ili(, Project for the expenses listed in the following Suh- paragraphs: 5.1.1 Expense of Irinsportation in connection with the Project; living expenses in connection with out- of -IoNSn travel; long distance communications; and fees paid for securing approval of authorities having jurisdiction over the Project. 5.1.2 Expense of reproductions, postage and handling of Drawings, Specifications and other documents, excluding reproductions for the office use of the Architect and the Architect's consultants. 5.1.3 Expense of data processing and photographic pro- duction techniques when used in connection wilh Addi- tional Services. , 5.1,4 If authorized in advance by the Owner, expen,(, „I overtime work requiring higher than regular rates. 5,1.5 Expense of renderings, models and mock -up, re- quested by the Owner. 5.1.6 Expense of any additional insurance coverage or limits, including professional liabilitv insurance, requeaed by the Owner in excess of that nommalb. r.irrwrl hs Architect and the Archile( Y, ronsuL'anh. ARTICLE 6 PAYMENTS TO THE ARCHITECT 6.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES 6.1.1 An initial payment aN set forth in I'arai ;r,rl•h I • , the minimum payment under this Agreement. 6.1.2 Subsequent payment, for Basic Svmfvs ,h,dl irr made monthly and shall he in pn qn ill on In set nos pel formed within each Phase of services, on 16o 1,,l. ,rl forth in Article 14. 6.1.3 If and to the extent that the contract Iitne iniu, lit established in the Contract for Construction is vN(code,l or extended through no fault of the Architect, compensa- tion for any Basic Ser -ic-es required for such extended period of Administration of The Construction Contract ,hall he compulvd as set forth in Paragraph 14.4 for Addi- honal Svrvicvs. 6.1.4 "lien compensation I, haled nn a percentage of (- un,trucbon Cost, and any portions of the Project are deleted or otherwise not cunslrlafed. compensation for North portion, of the Project ,hall be payable to the extent ,mire, are performed on such purlions, in accordance mill the ,(hedule set forth In Subparagraph - 14.2.2. based on i 1) The Intl ea bona tide hid or negotiated proposal or, 21 r no ,u, h hid or proposal i, roreiced, the most recent Statemenl of Probable Construction Cost or Detailed Esti- rnaL• (it (- on,lau lion C.oN[ for ,uch pnlLons of the Project. 6.2 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES 6.2.1 Payments on account of the Architect's Additional Sor ices a, defined in Paragraph '1.7 and for Reimbursable Ixpenw, is defined in Article 5 shall be made monthly upon Iv,•.vnlalion of the Architect's statement of services rendered or expenses incurred. 6.3 PAYMENTS WITHHELD 6. 3.1 No deductions shall he made from the Architect's compensation on account of penalty, liquidated damages or other sums withheld from p,rwlnents to contractors, or on account of the cost of changes in the Work other than these Ion �%hich, the Architect is held legally liable. 6,4 PROJECT SUSPENSION OR TERMINATION 6.4,1 If the Project is suspended or abandoned in whole or in pant fur more than three months, the Architect shall be compensated for all services performed prior to receipt of written notice from the Owner of such suspension or abandonment, together with Reimbursable Expenses then due and all Termination Expenses as defined in Paragraph 10,4. If the Project is resumed after being suspended for more than three months, the Architect's compensation shall be equitably adius+ed. ARTICLE 7 ARCHITECT'S ACCOUNTING RECORDS 7.1 Records of Reimbursable Expenses and expenses per - laining to Additional Semites and services performed on the he,i, of i xlultiple of Direct Personnel Expense shall be kept wl the ha,is of genvr,dly accepted accounting purl iplo, and shall be awai!able to the Owner or the (hN,wi , auhhorired repr,- Prilative at mutually convenient I,mrv. ARTICLE 8 OWNERSHIP AND USE OF DOCUMENTS B.1 Doming, and Specifications aN instruments of serv- i, e are ,Ind ,hall remain the prupen) of the Architect whvtI, r the Proiecl for which they are made is executed of not the tAwnvi shall he perroillvd to retain copies, in- , luddrg relnoducible copies, of Drawings and Speeifiea- lions for information and reference in connection with the f AN nvr', u• -v and orcupunn of thv Project. The Drawings, and spec tuallon, ,hall not he used by the Owner on AIA DOCUMINT 0141 -1 IwNiR AR( 11111, l N11611P \I -.I I IIF IIt .!I 1W I, ,; It I1 1 ^' \I.• •.. pq; THE AMERICAN INSolUTL 01 ARCHInC1%. 1735 NL1w TURI: n'.','.., -.N NASHIN4IUN. U.C. :(xM 0141 -1977 7 n • other projects, for additions to this Project, or for cgmple- Oon of this Project by others provided the Architect is not n default under this Agreement, except by agreement in writing and with appropriate compensation to the Archi- tect. 8.2 Submission or distribution to meet official regulatory requirements or for other purposes in connection with the Project is not to be construed as publication in derogation of the Architect's rights. ARTICLE 9 ARBITRATION 9.1 All claims, disputes and other matters in question between the parties to this Agreement, arising out of or relating to this Agreement or the breach thereof, shall be decided by arbitration in accordance with the Construc- tion Industry Arbitration Rules of the American Arbitra- tion Association then obtaining unless the parties mutu- ally agree otherwise. No arbitration, arising out of or ro- lating to this Agreement, shall include, by consolidation, joinder or in any other manner, any additional person not a party to this Agreement except by written consent con- taining a specific reference to this Agreement and signed by the Architect, the Owner, and any other person sought to be joined. Any consent to arbitration involving an ad- ditional person or persons shall not constitute consent 111 ITT of any dispute not described therein r with any person not named or described therein. This Agree- ament to arbitrate and any agreement to arbitrate with an dditional person or persons duly consented w by the parties to this Agreement shall be specifically enforceable under the prevailing arbitration law. 9.2 Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association. The demand shall be made within a reasonable time after the dainl, dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution pf legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. 9.3 The award rendered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any cou•t having jurisdiction thereof. ARTICLE 10 TERMINATION OF AGREEMENT 10,1 This Agreement may be terminated by either party upon seven days' written notice should the other party fail substantially to perform in accordance to :th it, terms through no fault of the party initialing the termination. 10.2 This Agreement may he terminated by the Owner upon at least seven days' written notice u1 the Architect in the event that the Project is permanently abandoned. 10.3 In the event of termination not the fault of the Ar- chitect, the Architect shall be compensated for all services performed to termination date, together with Rcimburs- able Expenses then due and all Termination Nliernes as defined in Paragraph 10.4. 10.4 -- Termination Expenses include expenses directly at- tributable to termination for which the Architect is not otherwise compensated, plus an amount computed as a percentage of the total Basic and Additional Compensa- tion earned to the time of termination, as follows: .1 20 percent if termination occurs during the Sche- matic Design Phase; or .2 10 percent if termination occurs during the Design Development Phase; or .3 5 percent if termination occurs during any subse- quent phase. ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 Unless otherwise specified, this Agreement shall be governed by the law of the principal place of business of the Architect. 11.2 Terms in this Agreement shall have the same mean- ing as those in AIA Document A201, General Conditions of the Contract for Construction, current as of the date of this Agreement. 11.3 As between the parties to this Agreement: as to all acts or failures to act by either party to this Agreement, any applicable statute of limitations shall commence to run and any alleged cause of action shall be deemed to have accrued in any and all events not later than the rele- vant Date of Substantial Completion of the Work, and as to any acts or failures to act occurring after the relevant Date of Substantial Completion, not later than the date of issuance of the final Certificate for Payment. 11.4 The Owner and the Architect waive all rights against each other and against the contractors, consult- ants, agents and employees of the other for damages cov- ered by any property insurance during construction as set forth in the edition of AIA Document A201, General Con- ditions, current as of the date of this Agreement. The Owner and the Architect each shall require appropriate similar waivers from their contractors, consultants and agents. ARTICLE 12 SUCCESSORS AND ASSIGNS 12.1 The Owner and the Architect, respectively, bind . themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representa- tives of such other party with respect to, all covenants of this Agreement- Neither the Owner nor the Architect shall as,ign, sublet ur transfer anv interest in this Agreement vv ithout the written consent of the other. ARTICLE 13 EXTENT OF AGREEMENT 13.1 This Agreement represents the entire and integrated agreement between the Owner and the Architect and supersedes all prior negotiations, representations or agree- ments, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and Architect. 8 8141 -1977 AIA UOCUMt Nf B141 • ORNLR AR( HIT[( I AURI I MEN I • 1111 RI1ELN111 LOT I ION • IULY 19,77 • AIA4 • Q 1977 THE AMERICAN INSrITUTr Of ARCHITECTS. 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20a6 _ 1 ARTICLE 14 BASIS OF COMPENSATION The Owner shall compensate the Architect for the Scopf• of Service,. provided, in accordance with Article 6, Payments to the Architect, and the other Terms and Conditions of this Agreement, as follows: 14.1 AN INITIAL PAYMENT of dollars ($ shall be made upon execution of this Agreement and credited to the Owner's account as follows: 14.2 BASIC COMPENSATION 14.2.1 FOR BASIC SERVICES, as described in Paragraphs 1.1 through 1.5, and any other ,ervices included in Article 15 as part of Basic Services, Basic Compensation shall he computed as follows: fifew In....t N", of rnmponwlinn, mdudlnR h"'I amnunn mutr,p,.. n. ..enema,, and ulenlify Phases to which particular methods of compensa- tion appfy, if nonssaw I 7.5% of the total construction cost. r� �J 14.2.2 Where compensation is based on a Stipulated Sum or Percentage of Construction Cost, payments for Basic Servic ,gs shall be made as provided in Subparagraph 6.1.2, so that Basic Compensation for each Phase shall equal the following percentages of the total Basic Compensation payable: (Include anv additional Phases as appmpriate I Schematic Design Phase: percent 115 %) Design Development Phase: percent ( 20 %) Construction Documents Phase: percent ( 4 0 %) Bidding or Negotiation Phase: percent( 5 %) Construction Phase: percent ( 20 %) 14.3 FOR PROJECT REPRESENTATION BIYOND ItAsle SERVICES, as described in Paragraph 1.6, Compensation shall be computed separately in accordanm with Subparagraph 1.6.2. AIA DOCUMENT 8141 • OWNER- ARCHITECT ACRrrUI V • 1HIR111 \TII I DITION • K IN In" . \10 • C 1977 5141 -1977 9 THr AM[ RIt AN ICN111,11 01 `,KC1 II I It 11. t Il %1 \t Ni SRI. \\ ".I 1 N\C \t 1, C. ?'"N' 1144 COMPENSATION FOR ADDITIONAL SERVICES .4.1 FOR ADDITIONAL SERVICES OF TI If ARCI Ill ECT, as described in Paragraph 1.7, and any other services in- cluded in Article 15 as part of Additional Services, but excluding Additional Services of consultants, Compen- sation shall be computed as follows: plrn• m..vt Weis of cnmprnwoon. n(hu/mR rate, and.ur mdl,p!rr W 1)or.. I'r,.annrt rape .e l... pnm ,p.li, and lmpfm ... + and ldrnW, P.....'.10, and due fy - mpin)'re,. if ,rglp,,,J Idenely .pro In .. .. n.. m .. fl., 1, pxl., A" rxdunl. nt romp....... f ..n apply. it nrrr..my I PRINCIPALS' TIME: Robert Lambert, Architect $60.00 /Hour Duane Thorheck, Architect $60.00 /Hour Roger Martin, Landscape Architect $60.00 /Hour ASSOCIATES' TIME: SENIOR STAFF: JUNIOR STAFF: 11 $45.00 /Hour $30.00 /Hour , $25.00 /Hour 14.4.2 FOR ADDITIONAL SERVICES Or CONSULTANTS, including additional structural, mechanical and electrical engineering services and those provided under Subparagraph 1.7.21 or identified in Article 15 as part of Addi- tional Services, a multiple of 1.20 times the amounts billed do the Architect for such vrviLu, pdrnfiq, y+,,ific i,pe, ill cnn.u!Alnf, m A,In 1, 1. d r, ,. u.. 14.5 FOR9¢EIMBURSABLE EXPENSES, as described in Article 5, and any other items included in Article 15 as Reim. bursable Expenses, a multiple of 1 1.0 1 times the amounts ex. pended by the Architect, the Awhile d', employees and (nsLltants in the interest of the Project. 14,6 Payments due the Architect and unpaid under this Agreement shall bear interest from the date payment is due at the rate entered below, or in the absence thereof, at the legal rate prevailing at the principal place of business of the Architect. Eight percent (8%) interest rate accrued on invoices over 60 days past due. tllmr ,meet any ..ale n/ mfrrrsl aGrrrJ upon � Uwr, ta... and ...... mrnl. ,... Ill. {patrol Ini:h •+ Irn.' q; ;1.... .;,,:.. ..,) ;,.•,,; ..Lt I.",. and oth... ...gool'o "• a, 11h• 0x." , and Anha"I" punr,pal plau•, ni bu.. nr.. !I .. .,...ran ........ nJ . ,... nwo rn... +`.im,r Th.- vX,da, .4 Ili .. prnv...m (n••r inr IrG,J arty.., J...dr! hr n,!,:n +l .rrth ...,pr.J :o il. b... ,a-, i ..n ur nlhi i ....•......1, a, .. nm n ....rl.nu.r+ or uaicr,, , 14.7 The Owner and the Architect agree in accordance wilh the Terms and Conditions of this Agreement that: 14.7.1 IF THE SCOPE of the Project or of the Arcbilect's Services is changed materially, the amounts of compensation shall be equitably adjusted, a4,7.2 IF TI-11 SERVICES covered by this Agnrinenl have not been completed within thirty 1301 nvnlhs of the date hrrrnt, ihl))uph nn Ludt n1 Ihr An hltrt t. Ihr amounts of compensation. rates and multiples set forth herein shall be e,lui61b1', adjusted. 1U 8141 -1977 AIA WKL lktl%i Hill -, q1m R lyt 11111, I Pd., I UINI. IIIIk Itl Nlil i-DolUN• WI\ 07•AIAV.p 19:7 111 E A611. KI1. nC IV.II Id IL OF ARCI I I I I C I. I -Jr, NLA% IORK \y ENU E. N, W.. 11 ASH ING TO N, 0. C. 20006 ARTICLE 15 OTHER CONDITIONS OR SERVICES 15.1 The Architect shall provide a site visit one month prior to the end of the warranty period. Costs for this visit to be reimbursed by the owner. 15.2 The Onwer will provide design and engineering services for tele- phone, fire alarm, communications, and security systems. Architect to provide empty conduit to locations requested by the Owner. 15.3 Architect is to meet in Hutchinson with the Building Committee twice during the design phases and once during the construction document phase; and with the City Council at theend of each phase for project and budget review and authorization to proceed. Any other meetings with thePolice Chief or others are to be in the Architect's office. 15.4 The Architect will visit the site once a month for construction observation. Additional site visits by the Architect, if necessary, to be reimbursed by the Owner. 15.5 The basic services shall include landscape architecture related to site development. AIA DOCUMINt B141. C A %SIR AS, 1111111 Ni Allv1I '.I • um: i -; 1 1111 a ICI I,, . h IA I . AI :A• II' - IHE AA" RI( A' IVSIIIUII u1 AN( 1'171(l1, 1-4. '.1 N V 1 . 1,,A1I 1. A AAA IIIA41UV, 11( 3A0I6 6141 -1977 11 0 0 0 This Agreement entered into as of the day and year first written above. OWNER ARCHITECT CITY OF HUTCHINSON THORBECK & LAMBERT, INC. 1409 Willow Street 755 Maple Minneapolis, BY Hutchinson, Minnesota 55350 Minnesota 55403 BY Robert Lambert Its: Mayor Its: Secretary- Treasurer BY 0s: Council Administrator BY AU DM UMI.NT nu, Av'. ��' II L; ( , I I11'111 '.I IIHIUv • ICI) V -- • AIA� - -, 1977 12 B141 -1977 1HF A11[B;(I% I. _ I'I AM HII -�'. 3 %1 %� WK, -N1cU N.AY_ WASHINGTON- D.C. DC 20006 • May 7, 1986 Mr. Marlow Priebe, P.E. Director of Engineering City of Hutchinson 37 Washington Avenue West Hutchinson, MN 55350 RE: Service Line Corrosion MRF 9617005 Dear Marlow: We are pleased to respond to the City Council's request to investigate the copper service line corrosion problem occuring in the Hutchinson distribution system. As mentioned at the April 22 Council meeting, copper tubing in water supply systems is subject to a number of corrosion attacks. General corrosion attack is rare and generally occurs at low rates so that the service life of the tubing is not significantly reduced. Impingement and pitting attacks can be both rapid and severe. It appears that all three forms of attacks may be present. deke =BROe It is difficult at this time to estimate the duration and depth of the �SOCiates, inc. investigation necessary to isolate the primary cause and develop an architects effective corrosion control measure. RCM suggests a two step process. engineers The first step would include the evaluation of the September 12 1985 test land surveyors p P results, an examiniation of the recovered service lines, and some additional testing of the existing water corrosiveness. Following the investigation and evaluation of the probable cause, we would report back to the City with our study results. Upon acceptance of the above study and authorization to proceed, RCM would enter into the second step of developing effective corrosion control alternatives. Depending on the results of the initial study, RCM will investigate a series of corrective actions appropriate to the Hutchinson situation and present our recommended alternatives. We propose to provide the investigative and evaluation services indicated using an hourly rate plus reimbursable expenses. This method allows maximum latitude for investigation of possible alternatives and analysis of service line problems. The City of Hutchinson would compensate RCM only for the actual time and expenses incurred on this project. Compensation for services shall be as follows: Senior Professional Engineer $75 per hour Junior Professional Engineer $48 per hour Clerical $24 per hour • Travel Expenses At Cost Testing Services Provided by Others Through RCM Cost Plus 10% 1011 first street south post office box 130 hopkins, minnesota 55343 612- 935 -6901 • Mr. Marlow Priebe, P.E. May 7, 19a6 Page 2 If testing services are contracted directly by the City, RCM will provide assistance in determining type and number of tests required at no extra expense. In order to provide you with a tentative budget amount, we recommend an initial investigation and evaluation level of 50 hours of senior engineering time with a budget expense of $4,000 plus $1,000 for testing and a corrective action level of 25 hours of senior engineering time with a budget expense of $2,000. These levels of expenditures would be exceeded only if authorized by the City. If you have any questions regarding this proposal, please feel free to contact Dale Watson or myself in our Hopkins office. Very tr ly yours, Charles S. Barger, P.E/ RIEKE CARROLL MULLER ASSOCIATES, INC. • CSB:jj Accepted: CITY OF HUTCHINSON m F-M Date 0 • HUTCHINSON POLICE DEPARTMENT MEMORANDUM DATE 5 -9 -86 TO Mayor and Council FROM Dean M. O'Borskv Chief of Police SUBJECT Stop Sign Request Attached is a memo from Officer Michael Kirchoff requesting stop signs be placed where Franklin, Glen, Brown and Grove Streets intersect Milwaukee Avenue. I agree with his recommendation and request the Council enact an Ordinance so authorizing those signs. CJ • DMO:neb ��G POLICE DEPARTMENT MEMORANDUM TO 201 FROM 207 SUBJECT Request for Stop Signs DATE 5 -8 -86 on 5 -8 -86, I investigated a 10 -50 at the intersection of Glen & Milwaukee. It was fortunately just property damage at this time. This intersection, as all others along Milwaukee Avenue (Franklin, Glen, Brown, & Grove), are presently uncontrolled. All the other east -west streets in the area are through streets and have stop signs at the intersections. This causes much confusion and accidents. While I was conpleting the report, 5 -10 adults who live in the area asked me what they had to do to get stop signs. They stated there are many children in the area, and they are concerted for their safety. I am requesting stop signs at all streets that intersect with Milwaukee Avenue. This is the four aforementioned streets of Franklin, Glen, Brown, and Grove Streets. Thank you. MR/ly 0 • 9 � - G. . I 4 J r �{ ph2 �p ✓1el /[ce h e�1OA7 I \e�a 3 %eMrrY! /SS /O�j d b1 atre Cc 1 Cz 6f Ole %17 J � q;� 9.-30) /+' rxrc,� ! -�1O ec /DYJ Fa vl � -fir 0 RESOLUTION NO. 8277 APPOINTING LEGAL COUNSEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT James Schaefer be appointed as City Attorney at a retainer fee for a six month period from July 1, 1986 to December 31, 1986. Services to be included within the retainer fee are: prosecution of Police Uepartment cases; attendance at all City Council and Planning Commission meetings; attendance at City staff meetings held the first and third Wednesday each month; preparation of Resolutions and Ordinances; negotiating property acquisition and counseling property owners on relocation law and benefits; legal services for all bond issues, except legal services for industrial revenue and tax increment bond /note issues and other customary legal services in the normal cause of City business. Matters such as appearance in county, state district, or federal dis- trict court will be billed separately, with an annual ceiling for such legal expenditures as determined by the City Council. State Supreme Court Appeals will be billed as extra legal services outside of the retainer fee and afore- mentioned ceiling. Legal action initiated to collect obligations owing the City or its agencies may be billed on a contingent fee basis and any amounts received for such actions shall not be included in any aforementioned ceiling. Adopted by the City Council this 13th day of May, 1986. ATTEST: Gary D. Plotz City Clerk �J Paul L. Ackland Mayor 17, `r RESOLUTION NO. 8278 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE • The Hutchinson City Council authorizes the purchase of the following: ITEM 1 111,311.5 COST — PURPOSE JDEPT.j DEPT. BUDGET VENDOR Signs Cleaning Sewer Locator Signs Library Construc Serigraphics tion Sign Systems Nalco 85WP -208 2,845.8 Sludge Thickener Sewer Yes Nelco Checmical Co. _ Am Garage Choice of hiring outside 1W I:... COE * ,t * The following items were authorized due to an emergency need: ITEM - t Cutter COST PURPOSE DEPT. BUDGET VENDOR 1,150.0 Cleaning Sewer Sewer * Flexible Pipe Tool Co. pressor 1,475.0 Replacement Central ** G.T.C. Garage Choice of hiring outside con ractor at cost of over $3,6 0 or purchase to 1 to allow our crew to do clean out of ine. Is in operation and w rks very well. Old compressor inope atable And not repairable. Necessa v to repair larg equipment immediately. Date Approved: May 13, 1986 • Motion made by: Seconded by: Resolution submitted for Council action by: RESOLUTION NO. 8279 • RESOLUTION CANVASSING ELECTION RETURNS OF CITY SPECIAL ELECTION HELD MAY 13, 1986 WHEREAS, the City Council has duly met as a canvassing board as required by the City Charter for the purpose of canvassing the election returns of the City Special Election held May 13, 1986, wherein voting machines were used for the casting of votes in every voting precinct of the City, and WHEREAS, the City Council has duly inspected the Return Sheets of each Precinct using voting machines at said election, prepared and certified to by the election officers of the several precincts in which the election was held, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT: 1. Said election returns be hereby canvassed, and the number of votes re- ceived at such election, together with the number of absentee ballots and spoiled ballots, if any, is hereby determined to be as follows: SPECIAL ELECTION • On the Question: Shall the City of Hutchinson transfer funds in an amount not to exceed $99,500.00 from the Fire Hall Construction Fund of 1981 proceeds and accrued interest earnings thereon to a Police Facility Construction Account? PRECINCTS TOTAL VOTES 1 2 3 4 5 YES 274 56 55 76 48 39 NO 94 13 16 24 19 22 Absentee Ballots 6 1 - 4 1 - Total Votes Cast 368 69 71 100 67 61 iled Ballots is 7 —(�' • 2. That the total good ballots cast at said election was 3. That the Judges for said election were as follows: Precinct #1 Precinct #4 Julie Flaa Jo Gilhousen Verna Anderson Norma Schepers Mary Wangerin Rosemary Santelman Olga Kern Gladys Madson Precinct #2 Delain Rolfe Sedona Miller Evelyn Prochnow Precinct #3 • Doris Daggett Tesi Antony Darlene Kn. gge La Verne Miller • Margaret Sorenson Grace Kottke Mary J. Brummond Irma Kreie Registration Table Fern Frank Norma Totushek • 4. That the attached is a true copy of the ballots used as absentee ballots in said election: OFFIC W BALLOT SPECIAL CITY ELECTION CITY OF HUTCHINSON, MINNESOTA TUESDAY, MAY 131 1986 7 A.M. T08 P.M. C� INSTRUCTIONS TO VOTERS: PLACE AN X IN THE SQUARE SELECTED. SHALL THE CITY OF HUTCHINSON TRANSFER FUNDS IN AN AMOUNT NOT TO EXCEED $99,500.00 FROM THE FIRE HALL CONSTRUCT- ION FUND OF 1981 PROCEEDS AND MACCRUED INTEREST EARNINGS YES THEREON TO A POLICE FACILITY NO CONSTRUCTION ACCOUNT? n LA 0 0 S. That the following are true copies of the ballot used on the voting machine in said election. (To be attached after 30-day grace period on machines.) QUESTION "Shall the City of Hutchinson transfer funds in an amount not to exceed $99,500.00 from the Fire Hall Construction Fund of 1981 Proceeds and Accrued In- terest Earnings thereon to a Police Facility Construction Account ?" OFFICIAL BALLOT CITY ELECTION MAY 139 1986 • Adopted by the City Council this 13th day of May, 1986. ATTEST: Gary D. Plotz City Clerk • is Paul L. Ackland Mayor • 0 I1 LJ RESOLUTION NO. 8280 RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT Be it resolved that City of Hutchinson enter (grantee) into a grant agreement with the State of Minnesota for the project entitled New Dimension Plating (project title to be conducted during the period from April 22, 1986 through May 31, 1988 (beginning date) (ending date) City Administrator is hereby authorized to execute such (title of authorized official) agreements as are necessary to implement the project on behalf of City of Hutchinson (grantee) I certify that the above resolution was adopted by the City Council of City of Hutchinson (grantee) on May 13, 1986 (date) SIGNED: (signature) Mayor (title) May 14, 1986 (date) SCDP VI /11 -1 WITNESSED: executive body signature City Clerk (title) 14, 1986 (date 7-66, De amne t of Ener P gY � and Economic Development • Community Development Division 296.5005 April 28, 1986 Mr. Gary Plotz City Administrator 37 Washington Avenue W Hutchinson, MN 55350 RE: Grant Number 16026EO0686 Grant Title: New Dimension Plating Dear Mr. Plotz: Qda �J S, 900 American Center 150 East Kellogg Boulevard St. Paul, Minnesota 55101 �' - * °s MAY !996 On April 22, 1986, Commissioner Dayton approved funding for your project. Enclosed are the documents which you will need to complete and sign to enter into an official agreement with the State. Also enclosed are a Program Manual, Environmental Handbook, and reporting forms which you will need for the administration of your project. Here's how to proceed: 1. Have your board or council take action on the resolution aut114Llzing execution of agreement. ease note that the beginni— ng ending dates in the reso u ion s ould be the same as the dates in paragraph 5 of the grant agreement. 2. Once the resolution has been executed, the grant agreement may be signed. Read the grant agreement thoroughly, especially the special conditions, which may require action before funds can be disbursed. Complete the information required on the top of the signature page and have the person designated as the authorized official in the resolution (above) sign and date the section labeled "Grantee ". This signed agreement must be returned to me. The remaining copy should be kept for your records. 3. The grantee Summary Information Sheet must be completed (see sheet for instructions). 4. The First Source Agreement for job recruitment, referral and placement between the Minnesota Department of Jobs and Training and the Employer should be executed and a copy retained in your files. Once you have completed these four steps, send the resolution, the original signed grant agreement, and summary sheet to me. I will forward the grant agreement to the appropriate state officials for signature and then return the completely signed agreement to you for your records. AN EQUAL OPPORTUNITY EMPLOYER 1-1 —do o . Mr. Plotz 2 April 28, 1986 Please read the Program Manual and Environmental Handbook before beginning any work on your grant. The information in these books requires that certain processes and steps be followed at various points in your project. Before implementation of your project can begin, the Project Director must attend an individualized training session (implementation workshop). Please contact me at (612) 296 -3898 immediately to set a date for training. Please note that the requirements for environmental review (explained in Section Two) apply to your project and must be addressed before you can begin your project. We look forward to working with you on this project. Good luck? Sincerely, C a4 (� c E� Carol Pressley -Olson Economic Development Specialist pb CM IV /2 -CP & CP1 (2 -1 & 2 -2) Enclosures • • . STATE OF MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT COMMUNITY DEVELOPMENT DIVISION Grant Agreement #16026E00686 This Agreement is made this 22nd day of April, 1986 by and between the State of Minnesota, acting by and through the Department of Energy and Economic Development (hereinafter called the Grantor) and the City of Hutchinson (hereinafter called the Grantee); WHEREAS, the Grantor has been allocated funds by the United States Department of Housing and Urban Development under the Community Development Block Grant Program; and WHEREAS, the Grantee has made application to the Grantor for a portion of such allocation for the purpose of conducting the project entitled New Dimension Plating in the manner described in Grantee's "APPLICATION ", which is hereby incorporated by reference. NOW, THEREFORE, in consideration of and in reliance upon the mutual covenants and agreements contained herein, the parties hereto do covenant and agree, each for • themselves and their respective successors and assigns, as follows: The Grantor shall grant to the grantee the total sum of One Hundred Fifty -Two Thousand Five Hundred Dollars ($152,500), which shall be federal funds appropriated to the State of Minnesota under the Community Development Block Grant program. The Grantee shall perform and accomplish such purposes and activities as are specified herein during the period from April 22, 1986, through May 31, 1988. Funds made available pursuant to this Agreement shall be used only for expenses incurred in performing and accomplishing such purposes and activities during the grant period described above. All other provisions of this Agreement notwithstanding, it is understood that any reduction or termination of Housing and Urban Development funds provided to the Grantor may result in a like reduction to the Grantee. Where provisions of the Grantee's "APPLICATION" are inconsistent with other provisions of this Agreement, the other provisions of this Agreement shall take precedence over the provisions of the "APPLICATION ". CM IV /6 -CP (6 -1) • 7 _v-' Required Resolution Grantee shall attach hereto, prior to submission, certified copies of resolutions or • other authority by the appropriate governing body or bodies, as shall legally authorize the execution of this Agreement on behalf of the Grantee. Accounting For all expenditures of funds made pursuant to this Agreement, Grantee shall keep financial records including properly executed payrolls, time records, invoices, contracts, receipts, vouchers, and other documents sufficient to evidence in proper detail the nature and propriety of the expenditure. For all personnel compensated out of such funds, Grantee shall keep time distribution records which identify each individual compensated by name and indicate the calendar dates and number of hours of each day for which the individual is compensated by the source of such compensation. These time records must be signed by both the individual and supervisor. A written record shall also be maintained that clearly indicates the amount of vacation, sick leave, and compensatory time earned and taken. For contracts with individual consultants, invoices for payment must state that the work performed and invoiced is in accordance with the terms of the consultant contract. Furthermore, these invoices must also state the calendar dates and number of hours of each day for which the consultant is requesting compensation. Accounting methods for this program must meet the standards set forth in OMB Circular A -102. Reporting Grantee shall submit to Grantor a progress report on the form prescribed by the • Grantor for each calendar quarter which falls wholly or partially within the grant period. These reports must be received by Grantor on the 25th day of each October, January, April, and July which follows a report period. A final project report will be submitted at the closeout of the grant. Grantee shall promptly submit other reports as Grantor shall reasonably request. Payment /Disbursement Schedule Grantor shall disburse funds to the Grantee pursuant to this Agreement, based upon a Payment Request submitted by the grantee and reviewed and approved by the Grantor. Payment Requests shall be reviewed and processed on a weekly basis. Provisions for Contracts and Subgrants The Grantee shall include in any contract and subgrant, in addition to provisions to define a sound and complete agreement, such provisions as to assure contractor and subgrantee compliance with applicable state and federal laws. In addition, contractor shall certify that it has received a certificate of compliance from the Commissioner of Human Rights pursuant to Minnesota Statutes, 1982, Section 363.073, if applicable. The Grantee shall obtain evidence from any contractor or subgrantee of compliance with the worker's compensation insurance coverage requirement of Minnesota Statutes, 1982, Section 176.181, Subdivision 2. 0 F Each contract or subgrant shall include the following wording: • ANTITRUST: Contractor hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and /or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. NOTICE TO CONTRACTOR: You are required by Minnesota Statutes, 1982, Section 270.66 to provide your social security number or Minnesota tax identification number if you do business with the State of Minnesota. This information may be used in the enforcement of federal and state tax laws. Supplying these numbers could result in action to require you to file state tax returns and pay delinquent state tax liabilities. This contract will not be approved unless these numbers are provided. These numbers will be available to federal and state tax authorities and state personnel involved in the payment of state obligations. Social Security Minnesota Tax ID Federal Employer ID Termination Clause 40 When the Grantor finds that there has been a failure to comply with the provisions of this Agreement, that reasonable progress has not been made, or that the purposes for which the funds were granted have not been or will not be fulfilled, notwithstanding any other provisions of this Agreement to the contrary, the Grantor may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of funds already disbursed. Financial Closeout Grantee shall liquidate all unpaid obligations related to the project which were incurred on or before the last day of the grant period within ninety (90) days immediately following the expiration of the grant per ?od. Grantee shall return any funds received under this Agreement, which are not obligated as of the last day of the grant period, to Grantor by check made payable to "Treasurer, State of Minnesota ". The State of Minnesota will make payments for approved expenditures up to, but not exceeding, the amount of funds awarded under this grant. Audit and Inspection The Grantee shall furnish the Grantor with an acceptable independent audit of • expenditures of program funds, including grant and other funds, prior to closeout of the grant. 0 Accounts and records related to the funds provided under this Agreement shall be accessible to authorized representatives of the Grantor for the purposes of examination and audit. In addition, Grantee will give the State of Minnesota, Department of • Energy and Economic Development, Legislative Auditor, State Auditor's Office, and the Comptroller General of the United States, through any authorized representatives, access to and the right to examine all records, books, papers, or documents related to the grant. STANDARD GRANT CONDITIONS Section 104(b) of Title I of the Housing and Community Development Act, as amended, requires that the State of Minnesota certify that all subgrants will comply with the provisions of this title and other applicable laws. Certain statutes are expressly made applicable to activities under the Act by the Act itself, while other laws not referred to in the Act may be applicable to such activities by their own terms. Therefore, in compliance with the requirements of the Act, the Grantee shall comply with: 1) Title VI of the Civil Rights Act of 1964 (P.L. 88 -352), which provides that no person in the United States shall on the grounds of race, color, or national origin, be excluded form participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. 2) Title VIII of the Civil Rights Act of 1968 (P.L. 90 -284), known as the Fair • Housing Act of 1968, which provides that it is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States and prohibits any person from discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including in any way making unavailable or denying a dwelling to any person because of race, color, religion, sex, or national origin. 3) Executive Order 11063, as amended by Executive Order 12259, which prohibits discrimination because of race, color, religion (creed), sex, or national origin, in the sale, leasing, rental, or other disposition of residential property and related facilities (including land to be developed for residential use), or in the use of occupancy thereof, if such property and related facilities are among other things, provided in whole or in part with the aid of loans, advances, grants, or contributions agreed to be made by 'he federal government. 4) Section 109 of the Housing and Community Development Act of 1974, as amended, which provides that no person in the United States shall, on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds provided under the Act. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to otherwise qualified handicapped individuals as provided in Section 504 of the Rehabilitation Act of 1973 shall also apply to any such program activity. • 4 5) Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and implementing regulations (24 CFR Part 42 and 24 CFR • 570.602(a)7. 6) Davis -Bacon Act, as amended, requiring payment of wages at prevailing rates, and the Contract Work Hours and Safety Standards Act. 7) The National Environmental Policy Act of 1969. 8) Section 3 of the Housing and Urban Development Act of 1968 which requires that to the greatest extent, feasible opportunities for training and employment be given to lower income persons residing within the unit of local government in which the project is located; and that contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by persons residing within the unit of local government. 9) Title IV of the Lead Based Paint Poisoning Prevention Act, as amended (42 U.S.C. Section 4831). 10) All parts of Title 1 of the Housing and Community Development Act of 1974, as amended, which have not been cited previously as well as with other applicable state and federal laws. 11) The regulations, policies, guidelines, and requirements of OMB Circular A -102, Revised, and OMB Circular A -87 as they relate to the application, acceptance, and use of federal funds under this part. • 12) The Minnesota Government Practices Act, Chapter 13, including but not limited to Section 13.31. 13) Minnesota Statute 471.87 and 88, addressing interest in contracts on the part of public officers (commonly referred to as conflict of interest). 14) The regulations, reporting, and recordkeeping requirements as stated in the "Program Manual ", as supplemented, provided by the Grantor. 15) Grantee hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and /or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. CM III /7 -CP • 9 SPECIAL CONDITIONS • FOR: Grant Number 16026E00686 Project Title: New Dimension Plating 1. Within 30 days of grant award, Grantee will complete and submit a Community Profile. 2. All recipients of funds must report progress and expenditures under standard activity categories, using the appropriate activity number. The applicable activity categories and their numbers are: 12. Administration 13. Assistance to For - profit Entities 3. The $100,000 bank financing for a line of credit for working capital is deleated from source and use of funds. Transferred $10,000 equity from working capital to equipment based on letter received April 7, 1986. 4. Funds will not be released until the following is submitted to the Grantor and approved: a. Evidence that the $100,000 of cash equity is on deposit in a company escrow • account. 5. A loan agreement and promissory note must be reviewed by an attorney to assure that the City of Hutchinson is adequately protected. The loan agreement must spell out conditions, terms, and rates of the loan, as stated in the approved grant application. Special conditions 6, 7, 8, 9, 10, 11, and 12, included in this grant agreement must be incorporated into the loan agreement. A copy of the loan agreement, promissory note, and amortization schedule must be submitted to the Grantor for approval prior to requesting funds. 6. The loan of grant funds to New Dimension Plating, Inc., by the City of Hutchinson will be governed by the conditions, terms, rates, and purposes stated in the (approved) application, and may not be modified without prior written approval from the Grantor. 7. The Grantee may not request funds from the Grantor for disbursement to New Dimension Plating, Inc., until the Grantee has received documentation demonstrating acquisition costs. The Grantee must request funds for acquisition costs from the Grantor based on a cost - sharing ratio of 50 percent grant funds to 50 percent other funds. 8. Leveraging funds described in the approved application must be used for the same purposes and under the same terms, rates, and conditions, as specified in the approved application, unless prior written concurrence is received from the • Grantor. 6 9. The Grantee must provide evidence that the jobs created are filled by or made available to low and moderate income persons. To meet this requirement, the • Grantee must follow one of the following two options: a) Once the jobs are filled, the Grantee must verify that the persons hired are of low and moderate income households, as per Section 8 income guidelines; or b) The Grantee must verify that jobs have been made available to persons of low and moderate income, by documenting that: • the skill level of the jobs available meets that of the general LMI population, • the education and experience required meets that of the LMI population, • that training provided by the employer, if training is needed, will make the jobs available to the LMI population, • that advertising, recruitment, and other outreach efforts are made to contact and involve the LMI population, and • the jobs are physically accessible to the LMI population. If these 5 points are met and documented, it will be assumed by the Grantor that the jobs are available to the LMI population. 10. The Grantee must include job creation information in each quarterly progress • report. This information must include: • jobs created by quarter • rate of pay and job title per job • date employee(s) hired • jobs created to date (cumulative total) • any layoffs by quarter • jobs retained to date 11. The Grantee must report on job creation until 15 FTE jobs specified in the grant application for the New Dimension Plating activity are created. The 15 FTE jobs must be created by the Grantee's target date of May 31, 1988. The Grantee must also report on job retention for the 29 jobs created prior to the award of this grant. If 44 total jobs are not created and retained, the Grantee may be required to return to the Grantor a proportional share of the grant. 12. Grantee must secure from New Dimension Plating, Inc., the necessary documentation that loan proceeds and leveraged funds have been used for the items and purposes stated in the grant application, prior to requesting grant closeout from the G rantor. 13. Principal and interest payments from the loan to New Dimension Plating, Inc., must be used to establish and maintain a revolving loan fund, provided that the purpose of that loan fund is to further future economic development in the City of . Hutchinson, thereby creating additional LMI jobs in the community. 7 14. Once grant funds are expended, an audit meeting the requirement of OMB Circular • A -128, must be performed. This grant will not be processed for final closeout until the audit has been submitted and accepted by the Grantor. CM II /8 -CP (8 -1) • is Grant Number 16026EO0686 Project Title: New Dimension Plating • Notice to Grantee You are required by Minnesota Statutes, 1981 Supplement, Section 270.66, to pro- vide your Minnesota tax identification number if you do business with the State of Minnesota. This information may be used in the enforcement of federal and state tax laws. Supplying these numbers could result in action to require you to file state tax returns and pay delinquent state tax liabilities. This contract will not be approved unless these numbers are provided. These numbers will be available to federal and state tax authorities and state personnel involved in the payment of state obligations. Minnesota Tax ID Federal Employer ID IN WITNESS WHEREOF, the Grantor has caused this Agreement to be duly executed on its behalf and its seal to be hereunto fixed and the Grantee has caused the same to be duly executed on its behalf. APPROVED: Commissioner of Administration is By Date APPROVED: Commissioner of Finance By Date APPROVED AS TO FORM AND EXECUTION THIS DAY OF 19 ATTORNEY GENERAL STATE OF 'MINNESOTA • BY _ Title CM II /9 -CP (9 -1) GRANTEE: I have read and I agree to all of the above provisions of this agreement. as Title Date STATE OF MINNESOTA by and through the Department of Energy and Economic Development. 0 Title Date (612) 587.5: i F CITY OF I. UTCY%fINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 MEMORANDUM Date: April 16, 1986 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Request for Rezoning as Submitted by City of Hutchinson Pursuant to Section 6.06, C4, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for rezoning. imillldil At the regular meeting of the Planning Commission on Thursday, March 20, the Planning Commission set a public hearing on the proposed rezoning of property located on Hwy. 22 South, (Wastewater Treatment Plant Site plus) from C -2 (Commer cial) R -2 (Residential) to I -1 (Limited Industrial), as • submitted by the City of Hutchinson. A public hearing was held on Tuesday, April 15, 1986, at which time, Mr. Wayne Oliva, adjoining property owner as well as a representative of Hassan Valley Township, stated his concern about so much of the property being rezoned. He stated they would like the southern most portion of the property to remain residential. FINDINGS OF FACT 1. The required application, site plan and application fee were waived as this is a City request. 2. Notices was published in the Hutchinson Leader on Thursday, April 3, 1986. 3. The proposed rezoning is in conformance with the Comprehensive Plan. RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request to rezone be granted, and further recommends that the council look at property on southeast boundary of the proposal as remaining R -2. Respectfully submitted, Roland Ebent, Chairman Hutchinson Planning Commission OAF t (612) 587 -5151 FCITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 rwaiLej DATE: May 6th, 1986 TO: Mayor and City Council FROM: Director of Engineering RE: S.E. Area Annexation Attached is a map with the City owned land recently annexed outlined in red. This is the area to be considered for rezoning. Marlow V. Priebe Director of Engineering MVP/PV attachment cc: Wayne Oliva Jim Schaefer Gary Plotz C� J C� 0 8� Q. 11 . - V. 1110 i (812) 587 -5151 I CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 DATE: April 1, 1986 TO: Mayor and City Council FROM: Director of Engineering RE: Solid Waste Management At the March 26th meeting of the City Solid Waste Management Committed, the proposal to have a City wide collection of leaves in the fall of 1986 for a City composte project was given favorable approval. • We, therefore, request the City Council to consider this proposal. It would, also, be our request that if approved, the City Council could work out a pick -up program with Junker Sanitation. our committee is willing to assist in this project in any way possible. Marlow V. Priebe Director of Engineering MVP/PV cc: Mark Schnobrich, Chairman 40 Yay 20 1986 City of Hutchinson 37 Washingtcn Avenue West Hutchinson, Yinnesots 55350 RE: Airport Ditch Cleanout We submit the u•zetetion of $'„ 500.00, to clean out the Ai:nport ditch. • We propose reginr._r_g the work on Jttr_e 1 , 1986. The exFct date will be determined by hiEh v.rater in the ditch. P?CY.SC" x iE.'rLIly` CC-,7 PACTIN" ,n Pre ident 0 r C1612) 587 -5151 T Y OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O DATE: May 5th, 1986 TO: Mayor and City Council FROM: Director of Engineering RE: Airport Ditch Cleanout Attached is a quotation from Erickson & Templin to do the ditch work that has been programmed for 1986. The cost estimate is the same as quoted in 1984. I recommend approval for same. Marlow V. Priebe Director of Engineering MVP /pv attachment cc: Ralph Neumann Ken Merrill ?- �t E T IONTRACTING ��e�e �t[ice �1Z =5871 8 io�e 587 =8211 Yay 29 1986 City of Hutchinson_ 37 Iffs shins tcn Avenue West Hutchinson, Vinnesota 55350 RE: Airport Ditch Clea.nout We sar ^it the q,lictFtion of to clean out t::e hi --port ditch. We prorose reginn -_nE the work on June 1 , 19LQI Tlie exact date :gill be determined by hiE_;h wEzter it the ditch. ;pT ^,YSC;, x X1'1, Iliv' CC_'`^FACTT *'^ ki L. _e �_ lin , r E ident ►_.I • • (612) 587.5151 JWJ37 /TY O F HUTCH/NSON WASHINGTON AVENUE WEST CHINSON, MINN. 55350 M E M 0 DATE: May 5th, 1986 TO: Mayor and City Council FROM: Director of Engineering RE: Utilities West of School Road Attached are the plans for sanitary sewer and watermain extension Nest of School Road on the proposed service road and highway by -pass. Total construction now, based on 1986 contract prices, is as follows: 340' - 6" Watermain $ 3,400 1 - 6" Hydrant 830 1 - 6" Valve & Box 306 1 - 8" x 6" Reducer 94 340' - 8" P.V.C. Sewer Main 3,400 3 - 8" x 4" Wye 90 60' - 4" Service Lead 396 1 - Manhole - 12' Deep 1,130 TOTAL------- ---- - - - --- $ 9,246 Partial construction and future construction, based on 1986 contract prices, is as follows: 2 - Manhole - 12' Deep $ 2,260 50' - 8" P.V.C. Sewer Main 500 PARTIAL CONSTRUCTION -- $ 2,760 1 - Manhole - 12' Deep $ 1,130 300' - 8" P.V.C. Sewer Main 3,000 3 - 8" x 4" Wye 90 100' - 4" Service Lead 1,000 340' - 6" Watermain 4,080 1 - 6" Hydrant 900 1 - 6" Valve and Box 350 1 - 8" x 6" Reducer 100 FUTURE CONSTRUCTION - -- $11,550 It is my recommendation we do the total construction at this time. MVP /pv Marlow V. Priebe Director of Engineering ROLLIN 14, /fr F81 II � 2 I � I BI 8..V jV1� W W - - -- F 81 12" % 8" e" HYD. GEB 1�- F81'l, 12 "PLUG a� cyG ' 9 ROLLING t F"STr- FBI 8*'VBB -- _ 8 r r'L- 1 ._w W - -.N -- ` -w- - J�' - - -_ �� -_ F81 12 % 8" TEI FBI 112 "TEE B° HYD. .8 "REDUCII 112 PLUG I I I I O �O I 49.85 Ord-21 58/'-5151 f i �' CT HUTCHINSON • r iC rVES May 2, 1986 M E M O R A N D U M • • TO: MAYOR AND CITY COUNCIL FTM: RALPH NE[A1ANN The local chapter of the Civil Air Patrol has been offered a training classroom mobile hone type trailer from Green Giant of Glencoe. This 14' X 70' structure is nice looking and in excellent condition and would be blocked up, skirted and tied down in an area that once housed a mobile hone used by the airport maintenance manager. The State CAP would own this unit having approved accepting it from Green Giant. No water or sewer will be needed. Electricity is available for this site. CAP meetings previously were held in the office area which became overcrowded. No county permit is needed. However, we will need a township permit. I i (612) 587.5151 ITY OF HUTCHINSON VASHINGTON AVENUE WEST ;HINSON, MINN. 55350 M E M 0 DATE: May 2nd, 1986 TO: Mayor and City Council FROM: Director of Engineering RE: Storm Sewer Improvement During the recent period of wet weather, I have been informed of a problem in the area of Prospect Street between 5th Avenue and 6th Avenue. We have found that at the time the Northeast Storm Sewer System was installed, about 24 years ago, an additional manhole and old lines should have been connected to the new system in said area. • Attached is an estimate of cost to do such work and request approval to proceed. MVP/PV attachment • Marlow V. Priebe Director of Engineering LISTING CHART JUUL CONTRACTING CO. �fl� /r AI?WJO �7 DTI ros ec� Sf, be&A=e.7 /� ✓c /✓E: �?'y rt �� 60 4-17L % an, C�vrm 5 etue ^ re-/ ca'"�it3/17 Cact' /"IAl ji%ahi ar &8 VOCL /00em, Co ?reC06-� �arreQ 3 c.F Ski I tar /5.00 46 3 +{ear 0 5 °-° ao • 00 Ceme.c� s' �Sa..rcP ,so. 00 Yc c. f3 , Leax 30 Lr / ,fo •00 776. oO L,4t.50r arj t W 960,00 L 00 fT�if t�fM INfYf�NCt THOMAS B. DOLDER Auto - Life - Health -Name and Business 336 MAIN ST S HUTCHINSON, MN 55350 PHONE (612) 587 -2565 May 9, 1986 City Hall ATTN Kay Link 37 Washington Ave. W. Hutchinson, Mn. 55350 Dear Kay, This is a request for a 3.2 license for Shakey's and also a wine license for Shakey's Pizza located on Highway 7 West at the Hutch Bowl complex. We would like these licenses in effect as soon as possible. The corporate name is Do -West, Inc. The stockholders are at 42% Rich Westlund, 42% Tom Dolder, and 16% Dave Westlund. We will have our applications in by the 13th of May. Any questions, . Sin /c ly, Tom Dolder please give me a call. (612) 587 -5151 %H!/1liY" CITY OF HUTCHINSON 212s *3 °� 37 WASHINGTON AVENUE WEST `� 1 N - - HUTCHINSON, MINN. 55350 N 0 N ' a. April 28, 1986 Mayor Paul Ackland and the Hutchinson City Council RE: Auto Accident of 9 -16 -85 Dear Councilmembers: I am enclosing for your information copies of the City file concerning an accident involving a street department truck and a Rockite Silo vehicle. Damage estimates to the city vehicle range from $254 to $269. The insurance company for Rockite Silo, CNA, has offered 708 settlement. This would • make the Rockite portion of the damages $188.58 and the city's damage $80.82 if the highest damage estimate is utilized as a basis for settlement. Please review this file and determine whether you wish to accept CNA's offer of a 708 settlement. If the offer is not acceptable, I would seek authority to initiate conciliation court action to recover the full amount of the claimed damages. I would again point out that the costs of trial in this matter will exceed the disputed amount and there is a risk that any trial will result in a finding that the municipality was more than 308 negligent, thereby reducing the amount of settlement obtained. Sincerely yours, CITY OF HUTCHINSON Bye ,„',7 l� jf�' Jamesldi. Schaefer Hutchinson City Attorney JHS:dlp Enclosures • 1 -F N m 01 OuMOM whccr an Ium p /owman ..L. MOM W 474 'STN[ OLD RILIASLE .IM. HU' ./MOOtK�. ■ WW"VIKINIa NMMV UATK -' " a[e. ear or w MOOT TT.K uC&Mmft ..I. SMAL r1. rN. PAINT YO. araKYK =1 K1IKlKT WORK Me" AND YATK.IALS LAO aAVININ" f 0 Amill Af, — 00 l - - - I I-mw Imo.- =!ECT TO INVOICE PRICE CHANGES *US TOTAL$ O 304 ing • TrM asn.r.1 M rar r Y IrliT.w r w. r.r aw.w w.TNW\ M1wi[ Y TOTAL ..I[w r.Ip. WT r wwY.Ir yTY 11.[ .w IYI I[r w1MT.0. Y1Y T..[ NIIIt .1.1 Itr.r..�l r W WY .Yf. r.wtN .Y IpT alnlbff r .IMT Il.a.iTlr W1 r MLKK TAX [Yw ..rs.T w rr� TwT.rrT Iwoa. T.r wT.W T[ u w .rraw.n .roTa.a. p a Q y -Taun SHUT ANa 810ft7I! 0212n - F • Phom:(6171$07•1240 _—_ MYRON WIGEN CHEV. CO. WE USE COMPLrITI SOOT a AUTOM001LE PAINnNG • GLASS INSTALLM HUTCMNSONT MINNESOTA 55350 BODY AND FENDER REPAIRS • EXPERT REFINISHING D f471.111s OAT[ IORrMi[_.- wontwnm - - -... . •la.•YOO4KOl0. WA[ co, CAA pwv TV R LIC[AO[ w1. 010101AL Ne, W[. ►AIa1T MO. AaA[Yt SU /L[T WORK rAm Ale Wl[eW uOM1 �/101wUs t }} � /1 �2LL T a • V -I TOWING SJIECT TO INVOICE PRICE CHANGES SUS TOTALS .?p Tlaa an.." w "+ t• w wracv,s, Aw w[ w cww rrnwL a+wa r TOTAL LAM WAA ru w .ar11N. rTa. T .M. w. MAN .TYTe. YTaw TI.a .M me aTYTe. o OR *, N TART* WCM AM AAT 4N OR TIaAT mWww I NOT e O.a CACU, YATI.YAT TM. aAT.WTa CYYT a ft Me. CWF C1CHM N.T. SALSS TAX •YCIa w v T. Cw.lAa Ally~ WKa. TYC 92 "ima [ M IY .YWi.1T' AaCOTNia. TOTAL syl EennArr soon � _ 1 t �i•_A•e0• R - F,_ ■ ARIA& : INSURANCE PLANNERS Box 68 • 135 Third Avenue Southeast Hutchinson, Minnesota 65350 587 -2298 April 10, 1986 ATTN: Jo Runke City Hall Hutchinson, MN 55350 RE: City of Hutchinson vs. Rockite Silo Inc. Accident 9 -16 -86 Dear Jo, Enclosed are the copies of the estimates we sent in to CNA on 11- 15 -86. If we can be of further assistance, let me know. Sincerely, i Peg Reding are.�E�T YOU RA' nOrOHW ^f 0 • • c 0 i t 5 5 1 0 N q i � i — F e _ iin :c� .. rr /111 J .J • ORIGINATOR - DETACH & RETAIN W. •r 1 • G E S 5 5 4 1.� S� f� 1 r /�G� �UJ�o�ce• U / 9- • (612) 587 -5151 roc"� 212s2g3 HRH CITY OF HUTCHINSON APR, 37 WASHINGTON AVENUE WEST � HUTCHINSON, MINN. 55350 April 28, 1986 Paul Ackland and Members of the Hutchinson City Council HUTCHINSON CITY HALL 37 Washington Avenue West Hutchinson, MN 55350 RE: Allen R. Reid Gentlemen: On June 16th of 1985 a Hutchinson Fire Truck driven by • John Roy Madson was involved in an accident with a motor vehicle driven by Randall Scott Reid. In reviewing the attached Traffic Accident Report prepared by the Hutchinson Police Department it would appear that the fire truck was heading westbound on Roberts Road when it attempted to make a right turn into the parking lot of the St. Anatasia Catholic Church. Mr. Madson indicates that he had engaged the turn signals in a proper and timely manner. While engaged in the righthand turn, the city -owned vehicle was struck in the right front area by the car driven by Randall Scott Reid. The Traffic Accident Report indicates that Mr. Reid was attempting to pass the fire truck on the right. The report also states that Mr. Reid indicates he did not see the signals on the fire truck. • The total damage to the city vehicle was estimated at $436.92. The matter was submitted to Mr. Reid's insurer, Western National Mutual Insurance Company. On March 20th of 1986 Western National denied responsibility for damage. I am enclosing a copy of a letter of that date for your files. On April 2, 1986 I contacted Western National, outlined the city's position and made a demand for payment. I am also enclosing a copy of that letter for your records. On April 23rd of this year Western National offered to pay 50% of the damages based on all the facts of the accident. 9 -G Paul Ackland and Council April 28, 1986 Page Two If this offer is acceptable to you, I would like authority to contact the Western National Mutual Insurance Company and obtain payment. This would make the city's cost $218.46. If the council does not wish to accept this offer, I would seek authorization to initiate legal action in McLeod County Court. Since Mr. Reid is not a resident of McLeod County use of Conciliation Court is prohibited and County Court, having state -wide jurisdiction, must be utilized. Again, you should be aware that in this situation, as in others brought before the Council, pursuit of this matter through the court system will undoubtedly result in court costs that exceed the $218 being sought. Please review this matter so that I may obtain the Council's decision at the first council meeting in May. Sincerely yours, CITY OF HUTCHINSON Jame rSchaefer Hutchinson City Attorney JHS:dlp Enclosures 0 11 11 WESTERN NATIONAL Mutual Insurance Company • 5350 WEST 78TH STREET P.O. BOX 1463 - MINNEAPOUS, MINNESOTA - 55440 March 20, 1986 City of Hutchinson 37 Washington Ave. West Hutchinson, MN 55350 RE: Our File No: A 80246 Insured: L & K Reid Policy No: 108132 D/L 6 -17 -85 FILE E COP Y EDINA INTERCHANGE CENTER 612 035.5350 Our obligation as an Insurer is not to pay all losses, but only those our insured is legally obligated to pay because of his negligence. Our determination of negligence is based on all facts and information available to us. • We have been fair and impartial in deciding this loss and have concluded our insured is not responsible for your damage. Bonnie Marsh Claims Department PC • Q- G, (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 April 2, 1986 Bonnie Marsh Claims Department Western National Mutual Insurance Company 3530 West 78th Street P.O. Box 1463 Minneapolis, MN 55440 FILE COPY RE: Your file No. A80246; insured Allen R. Reid; Policy No. 108132 Dear Ms. Marsh: Your letter of March 20, 1986 in which you indicate that you have concluded that your insured Randall Scott Reid was not responsible for damage to a Hutchinson Fire Department truck as a result of a collision which occurred on the 16th day of June, 1985 has been referred to my office. In reviewing the •Traffic Accident •Report prepared by the Hutchinson Police Department it would appear 'that a Hutchinson Fire Department ladder truck being driven by John Roy Madson was heading westbound on Roberts Road in the city of Hutchinson. Roberts Road is a two lane thoroughfare with one lane for eastbound traffic and another lane for westbound traffic. The fire truck attempted to make a right turn into the parking lot of the St. Anatasia Catholic Church. Mr. Madson indicates that he had engaged his turn signals in a proper and timely manner. While engaged in the right -hand turn the city -owned vehicle was struck in the right front area by a vehicle driven by your insured Randall Scott Reid. The Traffic Accident Report indicates that Mr. Reid was attempting to pass the fire truck on the right. The report also indicates that Mr. Reid stated that he did not see the signals on the fire truck. Assuming that Mr. Madson's contention that he was properly signalling is correct there appears to be no evidence of any negligence that could be attributable to the driver of • • • q -G s Bonnie Marsh April 2, 1986 Page Two the city -owned vehicle. If the proper signals were in fact given, Mr. Reid apparently either failed to see the signals or ignored them. Either instance would be evidence of negligence on Mr. Reid's part. This negligence was further compounded when Mr. Reid attempted to pass the fire truck on the right in a one lane street. This is not a large claim, totalling only $436.92. No would request that you reconsider your position in this matter. If I have not heard from you by April 301 19861 I will assume that you continue to maintain your current position and will take other action to collect the damages suffered by the City of Hutchinson. Sincerely yours, CITY OF HUTCHINSON . Bye James H. Schaefer Hutchinson City Attorney JHS:dlp cc: Ken Merrill r 1 1 �t }x _ r (612) 587 -5151 HtrrcH' CITY OF HUTCHINSON . 37 WASHINGTON AVENUE WEST NUTCH/NSON, MINN. 55350 May 7, 1986 MEMORANDUM TO: MAYOR AND CITY COUNCIL RE: EMPLOV,E STATUS OF CAL RICE, ASSISTANT TO ENGEilM Earlier this year, Cal Rice's employment status was changed fran hourly to salaried, based on the increased level of his administrative daties. As construction season commences, this change has limited the flexibility of work hours which Cal had in previous seasons; i.e., • previously he had up to 12 months to use earned time off that resulted from the long work weeks during construction. This year it will prove extremely difficult to handle the office work generated by the field crew if Cal is required to use earned time off within 30 days, as is now required of salaried employees. It is requested that an exception to the policy be made in this situation so that the longer necessary work hours in the department will be efficiently handled between now and October 1. After that date, this summLex's construction should be completed and the time off can be granted without impairing the schedule. 0 (612) 587 -5151 JWJHUTCHINSON, ITY OF HUTCHINSON WASHINGTON AVENUE WEST MINN. 55350 M E M O R A N D U M DATE: May 7, 1986 TO: Mayor & City Council ------------ -- --- ------- - - - - -- FROM: Homer Pittman, Building Official - ----- ---- -------- ---- -- - -- - -- SUBJECT: Enforcement Of Sign Ordinance ------------------ ------ - - -- -- The Building Department lately has been experiencing a problem with en- forcement of the City's sign ordinance, in particular the portable tempor- ary signs on wheels and the temporary. • When we try to enforce the ordinance with the people, we tell them the ordinance requirements and follow -up with a letter. Then these people call the Council members, and we are told to go easy with these people. We are caught in the middle, and it is frustrating and almost impossible to do our job. My question to the Council is, are we supposed to enforce the sign ordi- nance on everybody or on certain people, or not at all? If we are not going to enforce this particular part of the sign ordinance, I would like to request that it be taken out of the sign ordinance. /ms 0 a_ K • • D.O.COMEN (1914-1967) RONALD J.MCGRAW May 12, 1986 RAW . p . A. escw P. G. BOX 9B CITIZENS BANK BUILDING HUTCHINSON. MINNESOTA 55350 TO: City Council Meeting for Tuesday, May 13, 1986 TELEPHONE 612 -S67 -3900 a MAY ZD n BY FROM: K. McGraw, Hutchinson Library / Member Building Committee It is important that the Handicap Access to the new addition to our Library be as close as possible to the main entrance. It is not apparent at this point that it is. Are the openings at the north and south ends of the sidewalk to be considered the handicap access to the library? - a half a block away from the building? It may be nice on a nice summer day but we still have snow in the winter and rain in the spring in Minnesota, don't we? Please inform the Library Board when this mistake will be corrected. Thank you in advance for your prompt attention to this matter. Sincerely, i Kathleen McGraw 32S Washington Avenue W. Hutchinson, Mn. 55350 (587 -3298) / — ,� 0 • • hutchinson rm community hospital 1095 Highway 15 South. Hutchinson, Minnesota 55350 • Telephone 61215872168 'An Equal Opportunity Employer' May 1, 1986 Ms. Mavis Geier Administrator, Burns Manor Nursing Home North High Drive Hutchinson, MN 55350 RE: Computer Service Dear Ms. Geier: In response to your request I wish to inform you that Hutchinson Community Hospital can provide the nursing home with computer services. Our new hospital information system, which will be fully operational this summer or early fall, can provide you with the following services without any modifications: A) A complete payroll reporting system, similar, but much expanded from our present system; B) General ledger accounting and financial reporting system, not presently being provided. At this time, the software being installed has everything but the capability to do your nursing home case -mix analysis and reporting as required by the State of Minnesota. However, our system is quite large, flexible and certainly can be customized and modified to provide this service. At this time I'm not sure of the cost to do this. I realize this is an important part of your data processing needs. Unfortunately, not many nursing home software packages are available in the marketplace today, let alone one that can handle a specific case -mix reporting system required only for Minnesota. Page 2 Ms. Mavis Geier May 1, 1986 Since we presently do not have this customized software for case -mix available on our system, an alternative might be: A) Purchase an IBM PC XT /AT which would interface to our system (we have the capability) for payroll and general ledger accounting. B) Purchase customized software for case -mix only to run on the IBM PC XT /AT, which could then be interfaced into general ledger accounting. C) Equipment would be at the nursing home and operated by your employees. I want you to know that our system is large enough to handle any of your needs, but would have to be modified to provide case -mix management. I present the above suggestion only as an alternative to what we can offer, without significant change. I am not prepared at this time to give you any cost information on specific customization or modification to our software, but would be more than willing to pursue this with you. • Thank you for your request. I know the importance of data processing • in today's health care environment. If I can be of further assistance, please do not hesitate to call. Sincerely, HUTCHINSON COMMUNITY HOSPITAL Qavr�1 Francis P. Seivert Administrative Assistant FPS: sIk cc to Mr. Phil Graves Mr. Bill Rosenow 11 LJ COMPUTER CENTER April 10, 1986 Burns Manor Nursing Home ATTN: Linda " North High Drive Hutchinson, MN 55350 Dear Linda: Thank you for the opportunity to demonstrate the Great Plains Accounting soft- ware to you and your staff last week. The following are the price quotations that you requested: OPTION I OPTION II IBM AT Epson Equity III ,• 30 Meg. Hard Drive $ 5,995.00 40 Meg. Hard Drive $ 5,090.00 Monochrome Monitor/ Monochrome Monitor/ Adapter Board 525.00 ' Adapter Board 278.00 Epson 286 Printer 749.00 Epson 286 Printer 749.00 Printer Cable 55.00- Printer Cable 55.00 Dos 3.1 Operating System 85.00 ✓ Dos Operating System NIC Great Plains Software: Great Plains Software: Payroll 695.00 Payroll 695.00 Accounts Receivable 695.00 695.00 $ 8,799.00 $ 7,562.00 ADDITIONAL OPTIONS: Power Back -up $ 1,495.00 Tape Back -up $ 1,495.00 Training & Installation $ 320.00 8 Hrs. @ $ 40.00 per hr. 1 - Box Diskettes $ 48.00 1 - Box Paper $ 35.00 If you have any questions concerning this price quotations, please feel free to call me at our Toll Free number 1- 800 - 247 -0125. • Sincerely, Merlin Dressel Marco Computer Center 1510 St Germain, Box 279, St Cloud, MN 56302 255 -0415 1 -800- 247 -0125) "Lei I /LULU&/ LoJ - _ -- Third Avenue Northwest (� Minnc7om 55330 � 6/2/387 -1910 30 @ ^ 3 SHIP TO: REQUEST FOR: • 3 Service .+ < _ COMP NY % %Nicer AlalSi4 FIB Shipping i /ir' . Q A �/. 4 , Art Invoicing C ADDRESS� / / /. s S3S2� CD TATE ZIP C TY TATE ZIP N Iff rf PHONE CUST.ORDER NO. TERMS SHIP VIA DATE SHIPPED SOLD BY EKED BACK-ORD. SNIMED D E SC E I E T 10 N UNIT DISCT. EXTENSION �,,. ter• r.. f�, .� E��6 „ . . � � y791 aS 3C-7 niP � ,� ,11.,vy • —M 41 �S 7 Mee- 137. SD �< Jell' eke yG�s Pr, a 0,00 �• 7S ns 3 f�oo Baud e3 ole dc, . qa -1 y3l.a!; y7S.« '' I <. , r< < ALL 01 �c'r F1,rw %flw� Iw,c(u Iw kutfqrs Csis �i. irr{ uP ZvFhi r Ch _ -- 7 — /77-' RENTAL AGREEMENT • This AGREEMENT, made this day of 19_, between MELYX CORPORATION, party of the first part, and located at party of the second part entitles party of the second part to the use of hardware as listed herewith: IBM PC /AT 1.2 Meg DSQD, 512K, 30 Meg 5295.00 Amber Amdek Monitor 310A 230.00 Monochrome Display & Printer Adapter 250.00 Epson LQ -1000 Printer with 7K Buffer 995.00 r Tractor Feed & Printer Cable 75.00 Dos 3.1 85.00 Work Station Basic Operating System 650.00 .4 Password Asynchronous 1200 Baud Modem 449.00 HARDWARE 8029.00 LESS: Super Saver Discount - 1870.00 NET HARDWARE COST 6159.00 THREE DAYS OF INSTALLATION HELP AND TRAINING AT OUR MINNEAPOLIS OFFICE 450.00 {. PLUS THE USE OF SOFTWARE PROGRAMS AS FOLLOWS: REPORT GENERATOR 640.00 PAYROLL 2195.00 ACCOUNTS RECEIVABLE, PLUS CENSUS, & TRUST FUND ACCTG 3975.00 f' ACCOUNTS PAYABLE 1285.00 r SOFTWARE ga �- gOq�. 00 TOTAL TRAINING, SOFTWARE AND HARDWARE ----------------------- 14704.00 The party of the second part to have all rights thereto, henceforth, as of the effective date of this agreement with the following exceptions: (1) It is understood that the software is proprietary and all rights thereto remain the property of MELYX CORPORATION. The copying, divulgence, transferring, or attempted reselling of MELYX SOFTWARE • Page 2 • without prior written authorization will constitute a breach of contract and recovery of damages will be instituted to the full extent of the law. (2) MELYX CORPORATION assumes no obligation, implied or otherwise for damages due to erroneous output information TERMS Forty eight (48) equal monthly payments of Yllo Plus tax of to be made as follows: The payment for the last six (6) months of this contract period to be made as of the original date of this agreement. The effective date of implementation of this contract, (hereinafter referred to as the contract period), shall be the first of the month following receipt of the hardware by the party of the second part. The remaining balance of the forty two (42) payments of plus tax of shall be made monthly as of the first ooh month beginning wit first month of the contract period. TERMINATION • After the first twelve (12) equal monthly payments have been made under the terms of this agreement, termination can be consummated by the party of the second part by 30 days written notice of intent thereof, whereupon MELYX CORPORATION will advise as to the disposition of the computer hardware involved. Such notice to be given on or before the last day of the month prior to the month with which it is desired that such rental agreement shall terminate. Any payments made up and through the termination date automatically remain with MELYX CORPORATION. If no rent is due and unpaid as of the termination date, and if the computer hardware is returned in good working order, then the party of the second part has no further obligation to MELYX CORPORTION. In the event that any rent shall be due and unpaid, then in any such case the said party of the first part or his legal representatives may, immediately or any time thereafter, take possession of the said property wherever it may be found, without being taken or deemed guilty of any manner of trespass, and without rendering themselves liable to refund any sums received as rent as aforesaid, and thereupon this agreement shall terminate, but without prejudice to any remedies which the party of the first part might otherwise use for arrears of rent or any breach of the covenants by the said party of the second • part herein contained. Page 3 0 At the coficlusion of the four year rental period described above, the party of the second part may at its option (a) Renew this rental agreement on an annual basis at $50.00 per month or (b) Purchase the hardware on this agreement for a one time payment of $500.00. IN WITNESS WHEREOF, said parties have hereunto set their hands this day of 19_ IN PRESENCE OF: • by: name tit e MELYX CORPORATION by: name tit e If non - taxable, enter tax exempt k • a 1 s MEL OhpOhafiOn 5622 WEST LAKE STREET • ST. LOUIS PARK, MN 55416 4 -25 -8 612/920.9290 • Linda Jensen Burns Manor Nursing Home STk141 Hutchinson, MN 55350 Dear Linda: Per our conversation of this morning, I am enclosing a sample of our 1986 Maintenance Agreement for Software Maintenance. Software Maintenance is gratis for the first 90 days, and after that it is computed at the rate of 1% per t month of the value of the software which you have at your location. In December, Maintenance Agreements are sent out to our users with the yearly charge computed and payable in either one or two payments covering either a six or twelve month period. r Alternately, you could opt for an hourly charge for software maintenance, but over a period of time your software would gradually get out of date, and you would eventually want to have massive changes made in order to correct that situation. I guess that you could say that Melyx Corporation is going to continually change their programs to improve them and I am sure that you will want to have these changes. You would certainly be disappointed if we were to tell you that we were not going to change our programs to keep up with the times. In fact, if we said that, you should not consider doing business with us. Software updates, enhancements, and service simply is a part of a good computer installation. I hope I have not bored you with the details. Please let me hear from you if you have any questions regarding the above. • -': Best rds, Ru sell C. J nston • 1edth Cage Specialists I-Mu 1 MELYA O'' KQf`OH 562 WEST LAKE STREET • ST. LOUIS PARK, MN 55416 C 1 612920.8290 1986 MAINTENANCE AGREEMENT EFFECTIVE DATE: The maintenance is a form of 'insurance policy' which protects your investment in your software. You will want to use the Support Program because it provides: (a) Telephone support (b) Priority service for software modifications and new releases (c) Continuity of service from Melyx Corporation (d) The most economical method of keeping your Melyx Software up -to -date via Software Updates (e) All the Melyx designed enhancements during the maintenance period The Support Agreement is available for your facility for the time period stated above at a price of --------------------------------------- - - - - -- If you prefer, we can invoice you now and in at --- - - - - -- • (Total fee /2 plus .5%) PLEASE INDICATE YOUR PREFERENCE n LJ [ ] 1 Payment [ ] 2 Payments Note: Effective as of January 1, 1986, all support calls will be invoiced at $50.00 per hour with a minimum charge of $10.00 per call unless arrangements for a Support Agreement have been made prior to that date. As soon as Melyx Corporation receives this application, you will be assigned a support identity number for your facility. Please return one copy of the above to Melyx Corporation with your preference noted. Thank you. Signed: N For: cJ4,Ah C., Speciakfs /_Z7 r F (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 TO: Mayor 6 City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: May 8, 1986 SUBJECT: Youth Tennis Rate Change At the regular May meeting of the Parks and Recreation Board, it was recommended by the board that youth, reserving tennis courts pay a reduced fee of $4 /hour /court. The $8 /hour /court would still be in effect if an adult is play- ing tennis with an adult. klm • • (612} 587 -5151 ff /TY Of HU TCH/NSON WASHINGTON AVENUE WEST HINSON, MINN. 55350 TO: Mayor & City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: May 7, 1986 SUBJECT: Request for funds for excavation of fill at Recreation Center In the specifications for the construction of the Recreation Center, all fill was to remain on site. This fill is currently the large pile located north of the gym. I am requesting authorization to have this dirt moved on site in order to establish the proper grade for the north side of the park. This needs to be done at this time so we can establish grass. This can be done at an hourly rate with an estimated cost of $2,00 to $3,000. • klm LJ q— Ul (612) 587.5151 !/UTCH' CITY OF HUTCHINSON • 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 TO: Mayor & City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: May 8, 1986 SUBJECT: Late Night Use at Roberts Park Hutchinson Technology Inc has again requested to play softball for the 1986 season on Tuesday nights from 12:00 Midnight to 1:30 a.m. The Parks & Recreation Board reveiwed this and discussed the complaints received from the prior year. The board recommended that Hutchinson Technology be allowed to con- tinue with their league with the stipulation that the lights will be turned out no later than 1:30 a.m. They • will be using only the two north fields. klm (612) 5874151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 TO: Mayor & City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: May 8, 1986 SUBJECT: Preliminary Grant Applications U At the May 7th meeting of the Parks and Recreation Board, the board recommended that we pursue the attached preliminary grant applications for Tartan Park and Linden Park. klm P R E L I N I N A A Y APPLICATION LAWCON/LCHR OUTDOOR RECREATION ACQUISITION AND DEVELOPMENT GRANTS Fiscal Year 1987 LOCK UNIT OF GOVERMENT RESPONSIBLE FOR PROJECT: PRIMARY CONTACT PERSON FOR THE PROJECT: Address 900 Harrington Avenue, Hutchinson MN Zip 55350 County McLeod Phone (work) 612 -587 -2975 /(home) 612 -587 -2192 NAME OF PARK: Linden Park PROJECT COST BREAKDOWN: (list acres to be acquired and/or facilities to be developed - see pages 3 and 4) e.g. 1 Quantity 1 1 PROJECT LOCATION: Type of Facility Picnic shelter - 32' diameter with concrete slab ParkinG Lot (North) Walkway @ 150 sg. fee (.ac /W ) Walkway @ 150 sq. feet (East End) Top Surfacing of Parking Lot (South) Cost $10,000 18,000 1,000 80,000 TOTAL= $102,300 Indicate the location of the proposed project as follows: Township ♦ 116 Range I 30 Section / 1 (numbers must be exact for processing of application) SITE PLAN: Attach a plan for the proposed project which shows: • Boundary of park property (red) • Zoning of surrounding land and present uses • Layout of existing facilities (red) • Layout of grant proposed facilities (yellow) • Layout of future proposed facilities (blue) • A north arrow, scale, and legend 11 F-M 0 L I N D E N P A R K The Linden Park project represents the completion of a major recreation area within the city of Hutchinson. The park has been developed as an active recreation area and features facilities such as the Civic Arena, Recreation Center, ballfields and outdoor pool. The city has completed construction of the Recreation Center and pool which was funded in the following ways: -a referendum passed by the citizens August 7, 1984. -sale of an old armory building which housed Park and Recreation offices and a gymansium. - Federal Revenue sharing. -Funds raised through donations by the Hutch- 40 inson Jaycees for the addition of the wading pool. The items in this proposal provides for the completion of necessary access roads, parking and walkways. 0 �.- LL--- - - - --� t - -••'— - --J j L ---- - - - --� . e o outdoor Hockey j • •0000 ®• • .• e e • e • •w �.� •III •I 7-.-- - - - - ) .. Pi= I L__ - - -- PARKING • O D Walkway I 0 r '\ Parking Cm •I •I •I �• PRELIMINARY APPLICATION LAYCON/LCNR OUTDOOR RECREATION ACQUISITION AND OEVELOPNENT GRANTS Fiscal Year 1987 OCAL UNIT OF GOVERNMENT RESPONSIBLE FOR PROJECT: PRIMARY CONTACT PERSON FOR THE PROJECT: Now Bruce Ericson Title Director. Parks b Recreation Department Address 900 Harrington Avenue, Hutchinson, MN Zip 55350 County McLeod Phone (work) 612 -587 -2975 /(home) 612 -587 -2192 PROJECT COST BREAKDOWN: (list acres to be acquired and/or facilities to be developed - aee pages 3 and 4) Quantity Type of Facility Cost e.g.. 1 Picnic shelter - 32' diameter with concrete slab $10,000 1 Fishing Dock $21,000 3 Bridges 1 @ 80' (12,500) 2 @ 40' (5,150 ea.) 22,800 4 Picnic Shelters at 6000 each 24,000 . 1 Fish Cleaning Station 8,000 1 Parking Area (North) 15,000 1 Parking Area (South) 8,000 Landscaping (trees, shrubs, grass seed 500) 4,500 Dredging (earthwork) 20.000 cu. vards 29.000 TOTAL= $132,300 PROXCi LOCATION: Indicate the location of the proposed project as follows: Township i Ii6 N Range i 29W Section i 6 (numbers must be exact for processing of application) SITE PLANS Attach a plan for the proposed project which shows: • Boundary of park property (red) • Zoning of surrounding land and present uses • Layout of existing facilities (red) • Layout of grant proposed facilities (yellow) • Layout of future proposed facilities (blue) LA north arrow, scale, and legend 11 T A R T A N P A R K The Tartan Park Development Project represents a plan which has been formulated through the efforts of service organizations, the Department of Natural Resources and the City of Hutchinson. The athletic portion has been funded through monies and volunteer labor from the Hutch- inson Baseball Association (letter enclosed). These funds were donated by several other service organizations to the Hutchinson Baseball Association. To the North an Urban fishing area has been created and will enhance the development of the Luce Line Trail. Through several meetings with the Department of Natural Resources regarding the Luce Line Trail and the current low- clearance dam located on Highway 15 in Hutchinson, the plan that follows has been recommended for the fol- lowing reasons. -the City of Hutchinson will provide maintenance of the trail as it passes through Tartan Park. - fishing at the dam location, which is extremely dangerous and this project would provide an urban fishing area which would be safe and readily accessible. -the Tartan Park location provides excellent habitat which would serve as an ideal location for the Elementary Schools nature study area. 0 11 LJ T-,qq Parking Shelter \ Bridge 3 0 �2 o ,o se h 2 Fish Cleaning House ishing Dock ra • 36 32 21 71 Ge!_ I i6 I 63 12 -1 e2= 1.2 I 10 �� Z5 8 ♦ 1� 6 -, -3L __ :L - -1 =: i�. Shelter \ Bridge 3 0 �2 o ,o se h 2 Fish Cleaning House ishing Dock ra • 36 32 ., / ,A • I •M "0 I' I �� OC M d N 7 N � to •• Ewa Y-I H• w IS r .01 ' I �, • • • s M � • � L N • I Q) .� N I vi Ad 1r OD ., / ,A • I •M "0 I' I �� OC M d N 7 N � to •• Ewa Y-I H• w IS r .01 ' I �, • • • s M � • � L N boob•• � •. 1 • •. I• .': Bob 1 1-�� r'I-I•�•�•� E-!•i-.1•� is- I I I ., v .:• • • •1•.• • •.• •.• • • •.••• [Sol • • • • • • •. 0 AL •. 1 ' / ; boob•• i ,.•. Vpc% • • .1., saw " i• •I 1 •1 00 H r _I f � , •���„t•� .i I' led •/� • N' Its 1 I I 1r =I 119.0 .aE IIt] J • ff •M • Al ••...•••I ♦boob• • 1 1 a 0 v • • • e • • • 1 •� • OVA !'I_ bosses •.Md /" Q) .� N I vi Ad 1r OD I +i boob•• � •. 1 • •. I• .': Bob 1 1-�� r'I-I•�•�•� E-!•i-.1•� is- I I I ., v .:• • • •1•.• • •.• •.• • • •.••• [Sol • • • • • • •. 0 AL •. 1 ' / ; boob•• i ,.•. Vpc% • • .1., saw " i• •I 1 •1 00 H r _I f � , •���„t•� .i I' led •/� • N' Its 1 I I 1r =I 119.0 .aE IIt] J • ff •M • Al ••...•••I ♦boob• • 1 1 a 0 v • • • e • • • 1 •� • OVA !'I_ bosses •.Md /" $ 41,644.49 CENTRAL GARAGE FUND REGULAR COUNCIL MEETING May 13, 1986 Social Security WATER $ SEWER FUND *Public Employess Retirement pera • Old Dominion Brush supplies 336.00 Big Bear *D.O.E.R. Social Security 378.67 supplies *Public Employees Retirement PERA 225.09 6.73 *U.S. Postmaster postage for bills 153.81 Crow River Glass Co. Richard Ebert water seminar 186.96 sunplies Henry Heinecke safety glasses 39.55 Donohue $ Associates enginering services 1144.99 Chemical Engineering subscription 27.50 Dynamic Systems Inc. pressure switch 121.34 Flexible Pipe Tool Co. parts 245.25 C.Jergens Estate double payment refund 20.90 McAndrews parts 61.25 Big Bear supplies 90.48 Commissioner of Revenue April sales tax 782.99 Coast to Coast supplies 35.48 Curtin Scientific Inc. chemicals 6.65 Electro Watchman quarterly charges 198.00 Fadden Pump Co. repairs 144.23 Family Rexall Drug film $ pictures 7.98 Fitzloff Hardware supplies 10.68 Farm & Home supplies 38.50 Feed Rite Controls supplies 740.49 G F, K Services uniform rental 82.80 Hutch Coop gasoline 425.54 Wholesale supplies 8.90 •Hutch Hutch Utilities money collected certifications 756.96 Hutch Utilities electricity 11,499.65 Hutch Plbg $ Htg. repairs 4.30 Juul Contracting repairs 1307.55 Johnson Super Valu bleach $ distilled water 22.53 Junker Sanitation refuse charges 21,640.75 L & P Supply lawn boy mower 329.00 League of Mn. Cities conf. reg. fees 120.00 Mn. Valley Test. Lab testing 73.00 McLeod Co. Landfill April dumping charges 11.00 Plaza Hardware supplies 44.60 Quades supplies 26.85 Schramm Implement parts 2.25 Water Products meter & parts 628.02 $ 41,644.49 CENTRAL GARAGE FUND *D.O.E.R. Social Security $ 51.74 *Public Employess Retirement pera 30.75 Old Dominion Brush supplies 336.00 Big Bear supplies 30.89 Brandon Tire supplies 80.41 • Coast to Coast supplies 6.73 Farm & Home supplies 1.50 Crow River Glass Co. supplies 34.98 GTC Auto Parts sunplies 1165.17 Hutch idholesale Supply supplies $282.81 Plowmans Inc. repairs 69.90 •Schmeling Oil Co. grease tubes 154.17 Schramm Implement supplies 119.02 Town 4 Country Tire repairs 43.00 Wigen Chev. CO. parts 1.40 W. D. Cooling Clinic repairs 24.00 $ 2,435.47 GENERAL FUND *Dept. of Natural Resources boat registration fees $ 24.00 *U.S. Postmaster express mail 10.75 *Dept. of Natural Resources boat registration fees 119.00 *Dept. of Natural Resources boat registration fees 58.00 *Orchestra Hall Group Sales balance due on tickets 14.00 *Dept, of Natural REsources boat registration fees 129.00 *Robert Ringstrom advance to attend seminar 100.00 *D.O.E.R. social security 3456.49 *Public Employees REtirement pera 4077.19 *M.S.A.B.C. armory rental 140.00 *Dept. of Natural Resources boat registration fees 50.00 *Dept. of Natural REsources boat registration fees 59.00 *William Wegner advance for seminar 300.00 *Dept. of Natural Resources boat registration fees 48.00 •*Dept. of Natural Resources *Dept. of Natural Resources snowmobile reg. fees fees 22.00 4.00 snowmobile reg. American Planning Assn. dues 85.00 Arco Minn. Ins. punch 34.97 Baltimore Paints supplies 2710.65 Beacon Products Co. moisture absorbent 727.50 Butterworth Legal moving traffic violation 24.00 Commissioner of Transportation adv. sign permit 40.40 Commissioner of Transportation airport 1162.67 Crowley Co. Inc. fence material 4895.00 Color Press printed material 188.33 Ed Davis Bus. Machines 2 punches 56.95 Fire Engineering subscription 16.95 Govt. Finance Officers Assn. membership 70.00 Human Services Film Dist. film strip 9.25 Hutch Computer Ins. 4 printer stands 111.80 Kables microwave $ refrigerator 267.92 Little Crow Bowling Lanes handicap bowling 31.00 Luxor Lighting Industries lites 128.49 Mn.Coalition of OUtstateCities assessment for 1986 1896.00 Midcontinent Theatre 125 tickets 125.00 Midcontinent Theatre office rental 350.00 Maddens room reservations 119.90 National Auto Dealers Car Guide 2 used car guides 64.00 Public Documents update state engery code 15.00 Floor Covering 30 rug samples 12.00 •Reid St: Paul Pioneer Press subscription 81.12 Universal Title Ins. Co. assessment search refund 2.00 Willmar A TI CIM refresher training 60.00 lcood _?':nc E, Decorating Center blind cleaner 9.95 Viking Safety Products safety glasses $ 42.49 {VUSA tape on Mn. Marvel 29.95 H. Schiebel supplies 19.05 .William Tracy Meisner conference expenses 20.00 Gale Boelter pick up trees 5.00 Jan Hahn gardening class - sr.citizens 12.00 CharlottePutz refund 8.00 Michael Schmidt refund on variance request 45.00 Richard Olson basketball referee 30.00 Bruce Summar rec.center nite attendant 60.30 Earl Haarsted pick up trees 25.77 Mary Haugen Mn. Aquatic Conf. 76.54 Mark Schnobrick gas 5.00 Jessie Bye piano lessons 60.00 Maxine Yost rental refund 15.00 Joe Sic cleaning $ supplies 330.50 John McRaith repairs advanced 111.23 Allen Office Products office supplies 66.46 American Welding Supplies welding gas 10.95 American Risk Services ins. consulting services 375.00 Big Bear supplies 25.34 Bennett Office Supplies legal folders 43.95 John Bernhagen May compensation $ stamps 1772.50 Central Garage door repair 12.52 Carr Flowers plant $ dish garden 20.00 Central Mn. Com. Inc. parts 30.00 River Vet Clinic boarding dogs etc. 143.50 •Crow Coast to Coast supplies 177.67 Coca Cola Bottling supplies 292.50 Chamber of Commerce office rental 125.00 Copy Equipment Inc. supplies 28.83 Co. Treasurer dl fees for county 133.00 Charles Bailley $ Co. audit fees 11,500.00 Co.Treasurer real estate taxes 1690.30 Culligan tank rental F, salt 102.60 Crow River Press summer activity brochure 733.90 Co. Recorder recording use permits 30.00 Co. Recorder recording Resolution 10.00 ERicksons supplies 49.00 Family RExall Drug office supplies 175.25 Farm & Home april invoices 173.47 George Field registration fees 15.00 Floor Care Supply cleaning supplies 189.20 Great Plains supplies 62.26 GTC Auto Parts parts 19.50 Fitzloff Hardware supplies 83.03 G $ K Services uniform rental 337.33 Home Bakery election supplies 20.40 Holmstein Ice Rinks 3 rolls white paper 192.85 Hager Jewelry UPS charges 5.93 Hutch Coop gasoline 2208.87 Henrys Candy Co. supplies 433.31 •Home Bakery supplies 57.79 Hutch Fire Dept. training budget exp. 1118.00 Hutch Leader publication costs 1180.65 Hutch Utilities chiesel 17.75 $ 67,305.71 • -4- • Hutch Utilities electricity 10,172.05 Hutch Wholesale supplies 6.84 Hutch Fire $ Safety repairs $ supplies 42.90 Ink Spots printing forms 155.50 Insurance Planners insurance 146.00 Jahnkes Red Owl supplies 33.90 Jerabek Machine supplies 3.52 Joes Sport Shop supplies trophies 121.00 Krasen Plbg $ Htg. repairs & parts 137.16 L $ P Supply supplies & parts 222.42 Lamberts Hi Way Service car washings 4.00 League of Mn. Cities conference registration fees 1200.00 Marco Bus. Products repairs 61.88 Mankato Bus. Products repairs 35.00 McLeod Coop Power Assn. electricity 547.86 Meeker Washed San street sand 505.11 Kenneth Merrill expenses 56.91 McGarvey Coffee coffee 142.40 Northwestern Bell leased phone line 325.59 Northland Beverages supplies 84.21 No. American Cable Systems basic cable $ circus 21.53 Dean O'Borsky expenses 22.00 Pitney Bowes repairs $ maintenance agreement 214.00 Plaza Hardware supplies 454.21 Priebe expenses 219.82 •Marlow Gary Plotz expenses 200.64 Quades repairs 3226.31 Rutz Plbg $ Htg. repairs 150.00 Rockmount Research chemicals 92.05 Schmeling Oil Co. oil 13.75 Sears shop vac 93.59 Shopko supplies 48.88 Simonson Lbr. supplies 86.41 Hazel Sitz transit conference 68.90 Sorenson Farm Supply supplies 22.70 James Schaefer ', May compensation 1001.00 Tri Co.Water Cond. 3 months rental $ salt 40.30 United Bldg. Center supplies 29.48 Xerox contract payment 270.92 Wm. Mueller & Sons road materials 439.48 NaNCY Buss CJRS school 3.83 James Haasl police school 114.94 $ 67,305.71 • _5_ BOND FUNDS •Bands of 1984 *1st Trust of St. Paul bond principal & interest 141,462.50 Library Debt Service *1st Trust of St. Paul bond principal $ interest 57,850.00 1984 Parking Impr. Bonds *1st Trust of St. Paul bond principal $ interest 71,018.75 Library Construction Bonds Baker 4 Taylor books (Westlund donation) 25.86 Pool 4 Recreation Const. Fund Culligan Water Condition aqua sensor 3,366.50 Electro Watchman alarm system 232.98 Bonds of 1977 Norwest Bank of Minneapolis principal,interest,fees 87,693.60 Bonds of 1979 Norwest Bank of Minneapolis interest $ fee 14,085.75 • MUNICIFAL- b1QU9R- 9TQRE -F9ND Ed Phillips $ Sons mix 38.25 Ed Phillips $ Sons mix 36.00 Griggs Cooper & Co. mix 79.56 Griggs Cooper $ Co. mix 39.48 Twin City Wine Co. wine $ liquor 2057.40 Griggs Cooper $ Co. wine $ liquor 165.38 Griggs Cooper F, Co. wine $ liquor 1082.74 Old Peoria & Spirits Co. wine & liquor 1997.86 Ed Phillips $ Sons wine & liquor 1863.79 Locher Bros. Inc. beer 7001.20 Friendly Beverages Inc. beer 1665.30 Lenneman Beverages Inc. beer 15,684.85 Triple G beer 9744.40 Bernick Pepsi Cola Bottling mix 45.00 Northland Beverages Inca mix 296.10 Andy Lundholm mix 28.45 Tombstone Pizza supplies 24.00 Hutch Utilities electricity 501.07 City of Hutchinson water /sewer /refuse 61.57 American Linen Supply towels 17.60 Hutchinson Telephone Co. phone 69.40 Travelers Directory Service advertising 182.00 City of Hutchinson payroll 4171.74 .City of Hutchinson payroll 4234.66 DOER social security 279.99 Public Employees Retirement pera 166.43 internal Revenue Service wine $ special tax 648.73 r' -° trucking freight charges 497.44 33, ?10.39 /"(612) 587 -5151 7110rwITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST 23466789 HUTCHINSON, MINN. 55350 a AIAY190 N W N May 51 1986 m s' A £Z221Z026`�`V Paul Ackland and the FOR YOUR INFORMATION Hutchinson City Council RE: Sale of Municipal Property Dear Councilmembers: I have been asked to comment concerning the uses to which the funds received by the municipality from the sale of certain hospital property to Green Castle may be put. Minnesota Statutes places no limitation on use of the • proceeds from the municipally owned property where that property was not designated by gift or contract for a specific purpose. Since there are no limitations in the Deed of conveyance by which the City received title to the property, the State of Minnesota places no restrictions on the use of the proceeds by the municipality. Section 12.04 of the Hutchinson City Charter deals with the sale of real property. That section states in part, "The proceeds of any sale of such property shall be used as far as possible to retire any outstanding indebtedness incurred by the City in the purchase, construction, or improvement of this or other property used for the same public purpose. If there is no such outstanding indebtedness, the Council may by resolution designate some other public use for the proceeds." The property in question was part of a larger parcel purchased by the City of Hutchinson through the use of general fund monies. Bonds were subsequently issued and the proceeds of the bond sale were utilized to construct the current facility and to repay the municipality for the expenditure made in the purchase of the real estate. There is apparently an outstanding balance on this bond issue remaining to be paid. In discussing this matter with Hospital officials and • the City Accountant, it would appear that due to the age of Councilmembers May 5, 1986 Page Two the bond the interest accrued on the unpaid balance is several percentage points less than the interest hospital funds are currently earning through investments. If the proceeds of the sale of the hospital property are utilized to prepay the bond in part, the municipality and hospital will suffer a net loss of funds in an amount equal to the potential interest earnings of the funds less the interest savings of the prepayment. Section 12.04 uses the words "as far as possible ". This language seems to give the Council some discretion in determining the manner in which funds should be utilized. Section 12.04 also fails to specify that the funds should be used to retire the particular indebtedness incurred in the purchase of the property. By utilizing the words "any outstanding indebtedness" the charter does not limit the repayment of the indebtedness to simply indebtedness accrued in the purchase but seems to broaden the restriction to indebtedness utilized in the construction or improvement of the property at any time. Hospital officials have indicated that the sale proceeds will be utilized to differ the expenses of construction and improvements to the current hospital facilities. In my opinion use of the funds for this purpose will comply with the spirit of Section 12.04. Sincerely yours, CITY OF HUTCHINSON ` 1 James H. Schaefer Hutchinson City Attorney JHS:dlp 0 • 11 0 0 (612) 587 -5151 F CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 May 6, 1986 Mayor Paul Ackland and the Hutchinson City Council RE: McKimm Milk Transit, Inc. Dear Councilmembers: /345678 C MAY 1988 v&o FOR YOUR INFORMATION Enclosed please find a copy of a letter received from R. J. McGraw on the 6th day of May, would anticipate receiving a final draft of any between McKimm Milk Transit, Inc. and 3M Company When I have received a copy of the contract, I will to determine compliance with State Statute Ordinances. Sincerely yours, CITY OF HUTCHINSON By/ • W+ James Schaefer Hutchinson City Attorney JHS:dlp Enclosure which I 1986. I contract shortly. review it and City D.O. COMER (1914 -1997) PCHALD J.MCOHAW May 5, 1986 Mr. James Schaefer Attorney at Law 105 2nd Avenue S.W. P. O. Box 363 Hutchinson, MN 55350 Dear Mr. Schaefer: R.J. McGRAW. P.A. ATTORNEY AT LAW •. D. 9Dx N CITIREMS "M9 DUILDIMO HUTCHINSON, MINNESOTA 55360 Re: McKim Milk Transit, Inca - 3M - Refuse Contract TCLVHOM[ ■1i- 997-390D This will confirm in writing the discussion we had on May 1 regarding the above - captioned matter and also serves as a response to your letter of April 23, 1986. Larry McKimm of McKimm Milk Transit, Inc. and 3M are negotiating on a refuse contract and expect to have the final draft completed within ten days to two weeks. As soon as we have the completed contract or agreement, we will provide your office with a copy. We believe that the agreement in its final form will comply with State Statute and City Ordinances regarding refuse contracts, including any contract that you now have with Mr. Junker. As a result of our effort to complete a contract, it would be my understanding that you will take this matter off the agenda for the May 13, 1986, Hutchinson City Council meeting. If any of my assumptions are incorrect, please contact me immediately upon receipt of this letter. Yours very truly, R. J. McGraw RJM:Md cc: Larry McKimm CJ 0 • • • W (612) 587 -5151 ITY OF HUTCHINSON WASHINGTON AVENUE WEST CHINSON, MINN. 55350 Mary C. Ryan Enforcement Section Division of Water Quality Minnesota Pollution Control Agency 1935 West County Road B2 Roseville, MN 55113 -2785 RE: City of Hutchinson Dear Mary: May 2nd, 1986 ,I)RIONAVOV Enclosed is a copy of the response from Hercules Incorporated, relative to their Notice of Violation, which was submitted to the City this date. We will furnish you a copy of our review response on this matter, as soon as it is completed. MVP /pv enclosure cc: Mayor and City Council v Gary Plotz, City Adm. Ralph Neumann, Dir. of Maint. Randy DeVries, Wastewater Supt. Gary Warren, Donohue Sincerely, CITY OF HUTCHINSON 'W4.Jo�•�L. <�" Marlow V. Priebe Director of Engineering K e G O - bl-AI86 HE�t+a Hercules Incorporated �1CVLES Pure Culture Products Div. 35 Adams Street North P. O. Box 100 • Hutchinson, MN 55350 (812) 587 -2481 May 1, 1986 Marlow Priebe City Engineer City of Hutchinson 37 Washington Avenue West Hutchinson, MN 55350 RE: Plant Discharge of Contaminated Yeast Dear Mr. Priebe: The need for discharge of the product to the sanitary sewer on February 5 and 6, 1986, was the result of the edible food yeast being contaminated with bacteria. The last time the problem occurred was in December 1983, and was handled the same as in February. A plan to be used in the future if the contamination problem happens again would be to chlorinate the spoiled product to inhibit the further bacterial growth, then using a controlled flow method to introduce the effluent to the sanitary sewer. This controlled flow can be sustained for the period of time required to empty the tank contents • and prevent any violation of the company's waste treatment permit. Alternate methods are being discussed but we have no assurance at this time of the possible success; therefore, the controlled flow method can be used successfully until the other methods are tested. Our desire is to not have any contamination episodes, but when it happens the product must be disposed of in the most acceptable manner. You can be assured of our total cooperation when these problems happen. Sincerely, J. L. Rainwater Plant Manager lw cc: City of Hutchinson file • 0 `. Dep rent f Energy FOR YOUR INFORMATION and Economic Develo�tnent Offke of the Commissioner 900 American Center (612) 2% -6424 150 East Kellogg Boulevard / St. Paul, Minnesota 55101 April 22, 1986 / J Mr. Gary Plots J? "� City Administrator 37 Washington Avenue West Hutchinson, MN 55350 Dear Mr. Plots: I am pleased to inform you that your application for a Minnesota Small Cities Economic Development program grant has been approved in the amount of $152,500. As outlined in the approved application, the City of Hutchinson will make a loan of $150,000 to assist New Dimension Plating in the acquisition of Ty's Metal Finishing and the expansion of its operation. In addition, the City is authorized to utilize up to $2,500 for grants administration costs related to this project. This grant is made from the federal Community Development Block Grant program. A grant agreement is being prepared by the Community Development Division staff. They will also provide you with additional information about your grant award and will do all they can to help you achieve your community development goals. Also, please note that your approved application becomes part of the grant agreement. For additional information, contact Robert Benner, Deputy Commissioner, at (612) 297 -3184. Finally, let me extend my congratulations to you and your staff for devel- oping an approach which will effectively address your community development needs. With best regards. A.arcel...,ton L I Commissioner /jmk III/101-1 AN EQUAL OPPORTUNITY EMPLOYER -410.® MINUTES FOR YOUR �hfOR HUTCHINSON CHARTER Wednesday, April 23N 1986 MgT�Oh 1. CALL TO ORDER Chairman Chuck Carlson called the meeting to order at 7:35 p.m. The following members were present: Walt Clay, Tom Dolder, Phil Graves, Jeff Haag, Harold Juul, Dale McLain, Dick Popp, Jean Peterson, Kay Peterson, Delores Saar, June Wick and Chairman Carlson. Members absent: None. Also present: Alderman Mike Carts, Alderman Marlin Torgerson, Police Chief Dean O'Borsky, Dr. Robert Prochnow (Civil Service Commission), City Attorney James Schaefer. 2. MINUTES Mr. Clay made a motion to accept the minutes dated Wednesday, April 2, 1986, as corrected. (Grammatical corrections in Section 2.07 and 2.10.) Seconded by Jean Peterson, the motion carried unanimously. 3. PRESENTATION - CITY CHARTER REVIEW Alderman Mike Carls made the following comments regarding the revision of the City Charter: Section 2.01. Form of Government: Mr. Carls stated that this is his biggest area of concern, and that he is happy to see that the Commission • is looking at changing commission form to mayor /council plan. Section 2.02. Departments: Mr. Carls suggested that if Section 2.02 is retained, the term superintendent should be defined as to clarify the role for the aldermen. Section 2.04. Elective Officers: Mr. Carls asked if the election is changed to even- numbered years as has been discussed, what the procedure for those already in office will be. Section 2.05: Appointive Officers: Mr. Carls stated he was happy to see term city clerk being officially changed to city administrator. He noted that it had been changed by resolution during D. J. Black's term. Section 2.06 Mayor and vice President: Mr. Carls stated that he feels "neglect, dereliction of duty" is wide open for interpretation, leaving room for it to become a policitcal issue. Section 2.08. Salaries: Mr. Carls asked if "by ordinance after a public hearing" means a special hearing just for that item or as part of a public hearing on the budget in general. He stated that he can see it getting lost in the shuffle. Section 3.04 Ordinances, Resolutions and Motions: Mr. Carls asked if this section means that for an ordinance to be voted upon, all five members of the council must be there, and if there must be at least 3 votes (in favor) for it (the ordinance) to pass. (City Attorney Schaefer stated that he has always taken the position that if there are enough members of the Council present to meet (quorum /3), unless otherwise stated, they may proceed with any business brought before them.) Mr. Carls stated that he thinks this should be more clearly . designated. Section 3.07. Procedure on Resolutions: Mr. Carls stated that the Council doesn't operate this way. There is usually a motion to waive the reading; but he's not sure if it's necessarily unanimous. He doesn't see any problem with the way they are proceeding now. Attorney Schaefer responded that unless an alderman specifically states, 'Let it be read', • it's assumed that the vote to waive reading is unanimous. Section 7.10. Disbursements: Mr. Carls commented that the statement 'No such check shall be issued until the claim to which it relates has been supported by an itemized bill, payroll or time -sheet approved and signed by the responsible city officer who vouches for its correctness and reasonableness' is a good provision, but it may be inconsistent, as there are many checks issued (utilities payroll, for example) with the City Administrator's signature that he has not seen any support for. Section 11:02 Appointments and Terms. Mr. Carls stated that he doesn't remember ever considering compensation for members of the utilities commission. (This section states that the council will determine compensation annually.) Section 12.03. Official Bonds: Mr. Carls asked if the Mayor is bonded. (NOTE: The Mayor is not officially bonded at this time.) Section 12.04. Sale of Real Property: Mr. Carls stated that there needs to be some clarification about when the ordinance authorizing the sale must be dated. At present the City Attorney has said that it can be dated afterwards as ratification of the sale. Alderman Torgerson had no additional comments. 4. PRESENTATION - POLICE DEPARTMENT /CIVIL SERVICE COMMISSION Police Chief Dean O'Borsky was present to explain how he understands the role of the Civil Service Commission and the City Council with regard to the Police Department. Chief O'Borsky explained that all police officers in the state of Minnesota are licensed. The police department is unique in that it deals with life- threatening situations. What makes the police department different (from other City departments) is that there is a state statute that places 3 nonelected civilians in charge of hiring, firing and discipline. Chief O'Borsky stated that he sees no problem with the mayor being Superintendent of Police, as long as it is understood that state statute governs the conduct of police officers, including himself. (It was later pointed out that 'police department' includes everyone from dispatchers to the chief of police.) The majority of police chiefs are not civil service employees. When they are not, the position can become a political one, where the chief of police serves at the whims of the mayor. Chief O'Borsky stated that the state of Minnesota has worked very hard to establish and maintain the civil service statute in order to keep the position of police chief from becoming a political one. This allows the police chief to use his own discretion as how to act in the best interest of the government of the city, based on his professional training and experience. Alderman Carls stated that he agrees with depoliticizing the police department. He asked to what extent the police department is accountable to the police civil service commission, and how do they • monitor the officers. Chief O'Borsky responded that there is a handbook of rules and • regulations which details all of the procedures regarding the hiring, firing and discipline of police department employees. If there is a complaint from anyone, which includes any citizen, other officer, the police chief, council, etc., there is a detailed grievance procedure to be followed, as outlined in the handbook. The Civil Service Commission then becomes a true civilian review board, which makes a decision based on the documented details of the complaint. Chief O'Borksy stated that he feels the police department is accountable to the City Council for such items as salary, vacation, budgeted items and other policy related items. Alderman Carls asked how Chief O'Borsky interprets the line of authority from the City Administrator. Chief O'Borsky responded that in regard to discipline, he feels the City Administrator has no authority over his position. He feels the City Administrator serves as the liason between himself and the City Council on policy related matters. He stated that the City Administrator does a performance review of his perfomance in regard to goals, accomplishments, etc. If the administrator or council has a complaint about the conduct of the police chief, they have the right to take that matter to the Civil Service Commission. Chief O'Borsky stated that giving the City Administrator authority over the police department is making him a nonprofessional police person and takes away the discretion of the trained police chief. • It was further pointed out that the Civil Service Commission is accountable to the City Council, as they are appointed by the City Council. There was discussion of appointments and terms of Civil Service Commissioners. Chief O'Borsky stated that once a commissioner is appointed, he can only be dismissed for reason or cause. It was later pointed out that that may refer to the time during the three year appointment. There was discussion as to if they must be reappointed. Jean Peterson asked if the Civil Service Commission meets regularly. Chief O'Borsky responded that they are meeting more often now. In recent years they have been meeting formally once a year and as needed. They are now meeting quarterly. Dr. Robert Prochnow, member of the Civil Service Commission, was present to state that they have not had reason to meet in recent years as they did several years ago as basically, they administer tests and do hiring and firing and there have been no firings and there has been only one hiring in 7 years. During discussion, Mr. Clay asked if the City Administrator could be an exofficio member of the Police Civil Service Commission. City Attorney Schaefer responded that he didn't think there would be any problem with that. Kay Peterson expressed her concern over the lines of responsibility and • the lack of checks and balances (in the operation of the police department.) In other matters, June Wick expressed concern about the enforcement of the Charter once is it revised. Attorney Schaefer responded that it is not a criminal offense to violate the charter. Depending upon the situation and the violation, there may be cause for removal from office is position. Chairman Carlson asked if the number of terms a commissioner serves can be put in charter (in reference to civil service commission.) Attorney Schaefer responded that that may be interpreted as conflicting with state statute. After discussion about the authority and duties of the City Administrator, it was the consensus of the commission that the City Adminstrator and City Council submit to the Charter Commission a list of minimum duties and responsibilities of the the City Administrator that they would like to see specified in the City Charter. 5. MEETING DATES After discussion, it was decided that the next meeting will be on Wednesday, May 7, 1986, at 7:30 p.m. at the Fire Station. Looking ahead, May 21, June 4 and June 18 have been discussed as future meeting dates. 6. ADJOURNMENT There being no further business, Mr. Graves made a motion to adjourn the meeting. Seconded by Mr. Clay, the motion carried unanimously and the meeting was adjourned at 9:37 p.m. . 0 2 THE HUTCHINSON SAFETY COUNCIL FOR YOUR INFORMATION The Hutchinson Safety Council met March 31, 1986 at 12e00 noon at the Fire Hall. There were 15 members and 3 guests present. The meeting was called to order by President Gals Boelter. A program of the disposal of hazzardous waste from the 3 -M Plant in Hutchinson was given by Bob Bowen. Due to the length of the program, the February aLnuetes and treasurer's report were not read. Janel Reiter appeared in behalf of the Hutchinson Mall to tell of KIDS IDENTIFACATION WEEK, April 7 - 13• She asked to have members of the Safety Council there, Gale Boelter will represent us. A letter to the Hutchinson Leader Iditor was requested endorsing safety. Sherri Syverson of the First National Bank appeared to request our help in crossing streets, stressing the corners by the Post Office. Motion was made for adjurnment by John Reynolds, seconded by Larry Ladd. She next meeting will be April 28th. at 12:00 noon at the Fire Hall. Submitted byi Gale Boelter, President • Eileen ?orry, Secretary/Treasurer TREASURER'S REPORT Balance on Hand as of 3/1/86 $179.64 Total Deposits .00 Disbursements .00 Balance On Hand as of 3/28/86 $179.64 Savings Balance as of 3/28/86 $151.87 �J .. v i '=i.M. _v .i�, h- Ri, "£�Y � f^'n f4''y � l,;'�S' S ),. �rYS.'fMY]�i �6 , -:.' AVM �i jr fIL'T t-.1 JF^ HUa 0r.bid:Jd.sX „? V'✓ SHrNGTON AVENUE WEST HUTCHINSON, MINN. 55350 FOR YOUR INFORMATION M E M O R A N D U M DATE: May 13, 1986 TO: Alderman Pat Mikulec — —ky -- ---- ------ ------ ---- - - - - -- FROM: — Kenneth—B. Merrill,—Finance—Director - -- - --- ------- --- --- - - -- -- SUBJECT: Outstanding Hospital Debt ----------- ------- ------ - - - - -- Per your request, the outstanding principal as of today for the 1968 • hospital bonds is $355,000. /ms cc: Mayor & City Council 0 • • IMIXIA EMPLOYMENT ADVISORY TO MAYOR AND CITY COUNCIL Y , a.i01•, i ADDRESS JOB TITLE as listed - attached SUPERVISED BY Bruce Ericson, Parks/Rec. Director EMPLOYMENT STATUS PAY RATE as listed FOR YOUR INFORMATION 13, 1986 X NEW EMPLOYEE X OTHER: some retur"r tamps FULL TIME xPART TIME OR SEASONAL Simmer programs COMMENTS Sumer staff as Per budget THE ABOVE PERSONNEL ACTION CONFORMS TO ADOPTED PERSONNEL POLICY AND TO THE COUNCIL APPROVED SELECTION PROCESS, l DE RTMEN HEAD �j a PERSINNEL ORDINATOR • :a4 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON M/NN. 55350 Hazel Sitz Bruce Ericson, Parks & Recreation Director May 9, 1986 Summer Staff The following list includes the majority of the summer staff needed for the Parka S Recreation Department. Baseball Scott Bauer - Supervisor $4.75 /hour Andrew Rostberg 3.75 /hour Russell Jonas 3.75 /hour T -Ball Joanna Mahling - Supervisor 6.00 /hour' Lori Galles (also softball) 4.00 /hour Tim McGraw (also playground) 4.00 /hour Margaret Mueller (also playground) 4.00 /hour Maintenance Michael Larson 3.50 /hour Matthew Larson 3.50 /hour John Arlt 3.50 /hour William Field 3.50 /hour Brian Knudsen 3.50 /hour - Anthony Parsons 3.50 /hour - Swimming Jerry Carlson - Head Lifeguard 6.00 /hour - Jennifer Kern - Asst. 5.00 /hour Karen Dettman - Asst. 5.00 /hour Paul Moehring 4.00 /hour Patrick Beatty 4.00 /hour Mardi Miller 4.00 /hour - ; Mark Wetterling 4.25 /hour j Denise Baumann 4.35 /hour Jason Moehring 4.45 /hour - Patty Hartman 4.25 /hour ' Donna Bordson 4.25 /hour Tamie Moehring 4.75 /hour _ Lifeguard /Pool Attendant Michelle Carrigan 3.50 /hour - _ Scott Bauman 3.50 /hour Tiny Tots /Handicapped Kiberly Brehmer - Supervisor $4.50 /hour Karen Haggenmiller 3.75 /hour Sue Wetterling 3.75 /hour Holly Jones 3.75 /hour Parks & Recreation Office Kris Hoikka 4.25 /hour 0 • • 0 • 1 EMPLOYMENT ADVISORY TO MAYOR AND CITY COUNCIL Martin Dreyer FOR YOUR INFORMATION DATE May 9, 1986 ADDRESS 735 Lynn Road JOB TITLE Cemetery Maintenance (mowinq) SUPERVISED BY Ralph Netiunann - Floyd Groehler EMPLOYMENT STATUS PAY RATE T2 COMMENTS NEW EMPLOYEE X OTHER: Retiree FULL TIME _X PART TIME OR SEASONAL THE ABOVE PERSONNEL ACTION CONFORMS TO ADOPTED PERSONNEL POLICY AND TO THE COUNCIL APPROVED SELECTION PROCESS, \D`E-PARoTME EAD PERSONNEL ORDINATOR ey . �.� CITY 1- O. I* E PIONEERLAND LIBRARY sYBTBM BOARD zxacvm camMYOUR INFORMATION April 14, 1986 Presents Curtis Johnson, Appleton Wayne Hebrink, Renville James Phalan, Graceville Howard Turck, Litchfield Jeanette Buchanan, Willmar Burton Sundberg, Director Robert Bosse, Associate Director Katherine Matson, Associate Director Absent: LeRoy Sanders, Willmar* Linda Ulrich, Renville* Lilah Buhr, Stewart* Representing: Appleton " Kandiyohi County " Big Stone County " Meeker County " Willmar Representing: Willmar " Renville " McLeod County The meeting was called to order by Director Sundberg in absence of the Chairman and the Vice Chairman. Buchanan /Johnson moved and seconded that Wayne Hebrink serve as Chairman for this meeting. Carried unanimously. C. Johnson/Buchanan moved and second- ed approval of the March 10 secretary's minutes. Carried. C. Johnson /Phalen moved and seconded acceptance of Treasurer's report. Carried. The Director's Report was given. The March statistical report showed a marked in- crease over March of 1985. Also presented were the monthly registration report and quarterly bookmobile circulation report. It was noted that as of June 1986 most nursing homes will be the responsibility of the local library instead of the van and the bookmobile. The March and April LDS newsletters and newspaper clippings were passed around. National Library Week wds April 7 -12. Turck /Johnson moved and seconded approval of payment of bills. Carried. Mr. Boese reported on the Automation Program. (see attached requests for Informa- tion for six models.) It was noted that Requests for Information were not for bids and not binding. Phalen /Johnson moved and seconded that the letters for infor- mation be sent to vendors. Carried. A summary of the returns should be available at the July meeting. Mr. Boese also reported that letters of inquiry regarding grants for the automation project were sent to nine foundations. He will keep the Board informed of develop- ments. It was noted that there was no change from last month on governing units with regard to automation funds except for a letter from the Willmar City Clerk - Treasurer, a copy of which is attached. This matter will be put on the May agenda. Long Range Plan -- K. Matson stated this is due into the state office by the middle of June, 1986: This is to be placed on the May agenda and draft copies of this will be sent to all Board members prior to the meeting. Communications: 1. state Office of Library Development and Services -- the Advisory Council to LDS has requested that a plan be sent to them indicating how we would implement services in counties not being served now if they were to comply with the Ecual Access Bill. Staff will work on this and report later. Counties affecting Pioneerland will be Lac Qui Parle, Renville, and Yellow Medicine. 2. Letter from Glencoe City Clerk regarding insurance on library contents was read. Mr. Sundberg had felt all libraries' contents insurance was low. Therefore limits were increased by 258 in all eight of the larger libraries. Premium increase will be approximately $300. 3. A letter from the Litchfield Library staff requesting an appearance before the Pioneerland Board was read. They will be given a time slot at the May meeting. 4. Current legislation -- Library aid in FY1987 may be cut approximately 103. Mr. Lewis from LDS has indicated this amount could possibly be offset by LSCA funds. S. The Minnesota Library Association annual conference will be in St. Paul on April 16 -18. Unfinished Businesse 1. Status of Meeker County Task Force -- Attached is a letter dated March 18 from the Mayor of Dassel. Mr. Sundberg stated that letters from Grove City and Cosmos mayors also concur with Dassel. These cities apparently are not going to pay the $6,000 shortage from the amount requested from Meeker County for the 1986 opera- tional budget. Mr. Sundberg proposed changes in the Agreement which would make Pioneerland operate under a quasi- consolidated/federated system. Motion made and seconded by Turck/ Buchanan that Mr. Sundberg could present this information to the full Board at the May meeting. Carried. The May agendas will be sent out early so members can review all of the above. 2. The proposed Board member /Library (staff) Relations Policy was tabled until May. 3. Adjustments for possible state /federal aid cuts for 1987 -- Mr. Sundberg will obtain more information from LDS and this adjustment to the budget will be re- viewed again after the first six months of our budget year have passed. 4. Procedures for developing and approving the 1987 budget -- any change in this would require a bylaws or Agreement change. C. Johnson/Buchanan moved and seconded that the attached proposed Article X be placed on the May agenda. Carried. Voting on this would then be at the June meeting. The Finance Committee will meet April 28. The meeting adjourned at 10:25 p.m. Jeanette Buchanan Secretary r roo April 1986 PIONEERLAND LIBRARY SYSTEM Treasurer's Report Curtis Johnson, Treasurer AUTOMATION INCOME BUDGM INCOME BUDGET INCOME MTD YTD MTD YTD BUDGET •ance .00 .00 $76,024.64 $90,281.48 (Adjustment by Auditor) + 113.86 + 113.86 $76,138.50 $90,395.34 Receipts: Basic State /Federal Aid 55,776.00 205,000.00 Big Stone County 658.00 5,574.25 11,148.50 22,297.00 *Chippewa County 2,123.00 18,318.75 36,637.50 *73,275.00 Kandiyohi County 24,551.25 49,102.50 98,205.00 McLeod County 1,201.50 15,740.00 31,480.00 62,960.00 Meeker County 15,693.25 31,386.50 62,773.00 Swift County 16,305.50 16,305.50 32,611.00 Appleton 138.00 376.00 2,195.00 4,390.00 8,780.00 Benson 548.00 4,390.00 8,780.00 17,560.00 Glencoe 659.00 5,758.00 11,516.00 23,032.00 Graceville 117.00 978.00 1,956.00 3,912.00 Hutchinson 693.50 1,387.00 12,571.50 25,143.00 50,286.00 Kerkhoven 57.00 114.00 940.75 1,881.50 3,763.00 Litchfield - — 886.00 9,618.50 19,237.00 38,474.00 Ortonville 191.00 382.00 3,227.25 6,454.50 12,909.00 Willmar 20,087.50 40,175.00 80,350.00 Bird Island 206.00 1,665.00 3,330.00 6,660.00 *Dawson 285.00 2,306.75 4,613.50 * 9,227.00 Hector 188.00 1,519.25 3,038.50 6,077.00 *Madison 332.00 2,684.25 5,368.50 *10,737.00 Renville 112.00 224.00 1,811.75 3,623.50 7,247.00 Cash Receipts 3,67.77 15,750.26 48,000.00 Gifts 84.00 Interest (Not avail.) 2,285.20 9,000.00 Reimbursements (local govt) *Chippewa County 8,007.00 16,014.00 *32,028.00 *Dawson 862.25 1,724.50 * 5,394.00 *Madison 1,348.50 2,697.00 * 3,449.00 Other Reimbursements 529.09 3,164.46 6,994.00 Other Total Receipts 1,191.50 9,586.50 180,341.11 413,062.92 941,000.00 Other funds: Glencoe Fund 4,022.00 Automation Grant (LSCA) 11,998.00 Swift County Est. Grant (LSCA) 10,175.00 Implementation Grant (1985 - State) 1,840.00 Raymond Project (Bremer Grant 6 Mielke Estate) 52,619.13 57,619.13 57,619.13 KCWL 1,536.00 4r AL RECEIPTS & BALANCE. $1,191.50 $309,098.74 $561,077.39 $1,028,190.13 Automation Totals $9,586.50 $19,505.00 TOTAL RECEIPTS, BALANCE 6 AUTOMATION MTD i YTD $310,290.24 $570,663.89 $1,047,695.13 Page 1 (OVER) April 1986 E%PENDITURESt PIONEERLAND LIBRARY SYSTEM TREASURER'S REPORT (Continued) CATALOGING OCLC AND OTHER CHARGES _.[OM_VE%DOis- CHARGES _ - ACCT GROUP... - 133. VEHICLES - - OP-ERAjI ON-kND_- MAIN:, LNA'i.LE. 2,063t INSURANCE - AMORTIZATION 6O>1MUNICATION TELEPHONE AND LIVE CHARGES _TERHIN.-AL_MA1N1EMNCE POSTAGE AND SHIPPING NEW EQUIPMENT A/V EQUIPMENT _-- _i4A.INI.ENENLES 45.68% YTO- -- -i_OF EXP :_CURR _ - -- -------- - ----- - - -- - - -- -- --- ----- - -MTO_ _ ExPENDITUKFS _..__._._ ExPE�1CITT ES TO EST DUDGIP --- -- ACCT --- GRn UP...._---- ---- - -. 00 11271.02 84.73% 1,500.00 - 118RAwY .00% 4,00AL0 89.55% 500.00 PERSONAL SERVICES 890•,.35.__ 2.562.68 _ 44.38; _ 5.775.00 S_AN-0 WAG ?S 50.940.55___ 2021836.23 32.75% ._619.294.00 _ _SALARZ -E HEALTH INSURANCE 1.770.32 7.6 30.81 32.75% 239300.00 HEALTH INSURANCE - CEDUCTI °.LE 525.27 669.27 15.94% 49200.00 _REtLPEMENLLNSURA,'10E __-- 4t641.41_�18 284.40 32.65%__ 569000.00_ ACCT GROUP... 57,877.55 2299420.71 32.64% 702,794.00 MATERIALS i 900.00 30.00% 39000.00 -_- BOOKS_. -.. ADULT ______._____. 15.00 .75.00 37.50% 200.00 BOOKS - CHILDREN 1,398.75 69284.48 37.504 169760.00 GENERAL REFEREML2 Ir3?4.00 39115.00 62.30% 5,003.00 PERIObSCALS-_____ -.___ __..- _ __- __- 339.18____ 9_52.23 4.5? %__2.190[0.00 4 022 00 PAMPHLETS 100.00 350.00 116.67% 300.00 SWIFT CDULTY MATERIALS 524.38 524.3E 8.74% 69000.07 __._BMR -C. L6M8 -00 .00 99.231 3.900..00 _ VIDEO 3ISCS C TAPES 491.90 1,0`0.31 15.45% 6r 800.00 AUDIO DISCS AND TAPES 26.30 26.30 26.3C% 100.00 SLL0_ES_4NO._EIL.MS7?IP5_ -__. - .00 43 .4.5 172.58; 250.00_ MICROFORMS - .�- .00 .00% .00 BINDING ` - -_ _ -__•c0 _. 255.44 26.89% 950.00 CATALOGING OCLC AND OTHER CHARGES _.[OM_VE%DOis- CHARGES _ - ACCT GROUP... - 133. VEHICLES - - OP-ERAjI ON-kND_- MAIN:, LNA'i.LE. 2,063t INSURANCE - AMORTIZATION 6O>1MUNICATION TELEPHONE AND LIVE CHARGES _TERHIN.-AL_MA1N1EMNCE POSTAGE AND SHIPPING NEW EQUIPMENT A/V EQUIPMENT _-- _i4A.INI.ENENLES `:. 1 t084. 471 .00- 732.04 ACCT GROUP... 1,816.5 ACCT GROUP... 29996.90 29639.94 5.636.84 352.710 - - y3 - = 84.70 152.00. 19654.90 rr 33.30% 900% 33.00% 30.64% 19.24% 60.29t- 39.08% 37.44% 99000.00 89000.00 189400.00 700.00 159100.00 OTHER 45.68% 18,000.00 _89222.10 5 ,703s5� 53.45% _10,671.00 -- '13,925.68 48.57% 28,571.00 6r39js8Z 37.63% 1790_0.00 11271.02 84.73% 1,500.00 ' .00 .00% 4,00AL0 `:. 1 t084. 471 .00- 732.04 ACCT GROUP... 1,816.5 ACCT GROUP... 29996.90 29639.94 5.636.84 352.710 - - y3 - = 84.70 152.00. 19654.90 rr 33.30% 900% 33.00% 30.64% 19.24% 60.29t- 39.08% 37.44% 99000.00 89000.00 189400.00 700.00 159100.00 OTHER - - 1OSTOOLALSUP2LIES--AND_UUtP -Mr NN'L 48.08 _ 435.93 _- 43.59% 1,000._00_ _ SUPPLIES AND PRINTING 2,247.60 6,448.03 27.44% 2395CO.00 PROMOTIONAL AND PROGRAMMING 432.85 447.75 89.55% 500.00 __ - --MI LEA GL__kN4IMEETINCIj =3TA EE_ - -- 890•,.35.__ 2.562.68 _ 44.38; _ 5.775.00 MILEAGE AND MEETINGS - TRUSTEES 336.62 19275.31 39.85% 3.200.00 PROF. MEMBERSHIPS (TRUSTEES) .00 510.00 100.00% 510.00 -. TN.SSIRAN.CE 44.31 7.307.31 _114.18% 6.400.00 Ijc -1 NO LEGA1, N�TICFS 86.76 86.76 96.40% 90.00 AUDITING •DO .00 .00% 1,200.00 _ - - 225.00 - 900.00 30.00% 39000.00 _BOOKKEEPING fONXIMILNG FOUCAT ION - 15.00 .75.00 37.50% 200.00 ACCT GROUP... 49386.77 209048.77 44.18% 45,375.00 SPECIA - -. - fI FAf LF FRiENDS-,_I BA .00 - 174.67' 4.34% 4 022 00 KCML .- .00 '- .00 .00% 1.536.00 SALARY STUDY .00 10170.00 63.59% 19840.00 AUTJ ATSOPLFI X"1.00ALJ -00 - As11D�90 41s582 19.50510.0_ AUTOMATION GRANT (STATE) •00 - .00 .00% 119998.00 THE RAYMOND PROJECT -00 - 2.000.00 40.00% 5,00,00 AfrT GROUP... .00 11.454.67 26.09% 43 :9 0 ORG. TOTAL... ENDING CASH BALANCE 77#621 $232,663.14 Page 2 338x000.75 $232,663.14 33.97% 99590 • BOSCHWTTZ 'Z Cnif eb 'Stales 'Senaf e WASHINGTON. O.C. 20510 April 18, 1986 Marilyn Swanson 37 Washington Avenue W. Hutchinson, Minnesota 55350 Dear Marilyn: :0%'A' -TEE ASSIGNMENTS AGRICULTURE BUDGET FOREIGN RELATIONS SMALL BUSINESS VETERANS AFFAIRS X12345 1g� rc",) PAW 1986 'w REC .iVED N o By- ............. _.. FOR YOUR INFORMATION Thank you for contacting me about funding for the General Revenue Sharing (GRS) program. As you know, the news about General Revenue Sharing has not been what local governments want to hear. For Fiscal Year 1986 (FY86), Minnesota was originally scheduled to receive $89.6 million in GRS funds. However, with completion of the appropriations process here in Congress and implementation of the Gramm- Rudman Amendment, GRS payments to Minnesota in FY86 will be reduced to $78.4 million. Further, the President's budget proposal for FY87 would eliminate the GRS payment for the fourth quarter of FY86 (which is not payable until FY87) -- that will reduce Minnesota's GRS receipts for FY86 to roughly $64 million -- if Congress passes President Reagan's proposal. Last year in the Senate Budget Committee, I supported a plan to spread the $4.6 billion authorized for FY86 over two years (FY86 and FY87). However, Congress instead adopted a budget which originally called for full funding for FY86 and then allowed the program to end. In its FY87 budget resolution, the Budget committee recommends that the GRS program be allowed to expire as scheduled. However, the committee also proposes to provide an additional $1.8 billion for two quarterly payments in FY87 -- if a bill to reauthorize the program can be enacted and if legislation is passed to raise the needed funds. It must be remembered that the Budget Committee only recommends overall spending and revenue totals for the entire federal budget. The Finance Committee has jurisdiction over the GRS program and must develop legislation to reauthorize it. If the program is reauthorized, that committee is also responsible for raising the needed revenue. My feeling is that we absolutely must reduce the size of the deficit ... and that means slowing the growth of federal • spending. Still, we have to be very careful about how we do that; otherwise, we will end up changing only those programs which are easy targets and that would not be a fair solution to the problem. April 18, 1986 Page 2 C� Recognizing this, four years ago I suggested the "Fair Play Budget ", under which all government programs would be treated exactly the same. In my budget plan, all programs (I made no exceptions) would have been allowed to grow slowly (4 or 5 percent) while income (which normally grows at 9.5 percent) caught up. Whether it was defense, education, Social Security, GRS or Civil Service Retirement, all would get equal treatment. I felt that was the way to balance the budget. My Fair Play Budget was suggested when deficits were $60 billion, not $200 billion. Unfortunately, it usually takes a crisis around here to get anything accomplished. Since we didn't have a crisis, the Fair Play approach -- sensible as it was, wasn't adopted, though we did make some progress in slowing spending. However, whereas several years ago we could have let the budget grow at 4 to 5 percent a year, now our problems are more serious, which is why I modified my plan to a freeze and then subsequently supported the budget passed by the Congress. Again, all this is not what you want to hear, but I believe it is the direction we must take. I will continue to support the funding of Community Development Block Grants and other federal grant and support programs to those communities in greatest need so that at least some of the slack from removing GRS will be • taken up. In addition, I will support resumption of General Revenue Sharing when we have revenue Sctshare. Thanks for getting in touch wfth me. Sin4erely, Rudy Bosc witz United States Senator RB /dsc • 0 • M IM1I:E�Si_ ,Z cnif eb .$Motes Zenaf e WASHINGTON. D.C. 20510 April 24, 1986 Ms. Marilyn Swanson City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Dear Marilyn: FOR YOUR INFORMATION Thank you for taking the time to share with me your views on the General Revenue Sharing Program (GRS). As you know, I have long been an active supporter of this important program. Last year, I led the fight for full funding of GRS when the appropriations bill came to the floor of the Senate. I share your concern that the elimination of this vital program will create financial hardships for local governments. Under the restraints of the Gramm- Rudman - Hollings budget- cutting law, Congress can no longer avoid its growing responsibility to cut the federal deficit and reduce spending. Although Congress extended GRS through fiscal year 1986, it is very unlikely that the current GRS program will be again reauthorized, despite our concerted efforts to save it. Today, the Federal government can not even pay its own bills, much less share its revenues with wealthy cities and counties. But I strongly believe it has a continuing responsibility to help those communities so burdened by federal aid cuts, unfunded mandates and new responsibilities that they are unable to provide a minimum level of basic public services to their citizens. To assist these communities, I have introduced a bill to create a new program called Targeted Fiscal Assistance (TFA) 5.2037. This proposal retains the heart of GRS and applies it to today's economic realities. Under TFA, most local governments will continue to receive general purpose grants they can use to meet their own funding priorities. But the program will better target the funds to those communities that need it most: communities that face above average service demands and do not have the resources to meet these needs on their own. I will be working hard to move this bill through the Senate and to preserve federal funding to our neediest communities. I have enclosed a factsheet and a Congressional Record statement • explaining my proposal further. With your help, I believe we can save the best features of the revenue sharing program. Ms. Marilyn Swanson 10 April 24, 1986 Page 2 Again, it's good to hear from you. incerely, D ve Durenberger United States Senator DD /tjc Enclosures • • PJ • S. 2037 eted Fiscal Background ram: Over the next few years state and local governments will confront a tremendous challenge -- to provide basic and essential services to their citizens during a period characterized by limited and declining resources. As part of the effort to reduce the budget deficit, federal aid to state and local governments is expected to decline precipitously. Additionally, tax reform changes are likely to affect the ability of state and local governments to finance their services from their own resources.. Finally, in accordance with current law and the FY 1986 budget resolution, General Revenue Sharing will expire at the end of PY 1986. The elimination of GRS will mean the demise of virtually the only federal program that seeks to lessen fiscal disparities among our local governments. While many governments will be able to continue to provide their citizens with important services despite federal cutbacks, there remains a large group of communities that simply do not have the fiscal resources to make up the difference. For these communities, the loss of federal aid means they will be forced to forego or cutback on important and vital services such as meals for the elderly, police and fire protection, and health care for the indigent. The national government can no longer afford to share its revenues with wealthy cities and communities, but neither can it afford to neglect communities crippled by federal aid cuts and increased responsibilities which are unable to meet the basic needs of their citizens. Senator Durenberger is proposing to ' create a new general purpose fiscal assistance program for local governments. The new program called Targeted Fiscal Assistance (TPA) will serve as a fiscal safety net for needy communities. This program will ensure that in our efforts to balance the budget, we do not ignore the very real and legitimate needs of our weaker partners in the federal system. Outline of Proposal TFA will provide general purpose grants to local governments, enabling the local officials and citizens to determine the best uses for the funds. An interstate formula will determine each state's allocation which, in turn, will be distributed to local governments through an intrastate formula. By utilizing appropriate measures of need and fiscal capacity, the program will target funds to those communities with the greatest needs. Authorization Level Funding will be $2.3 billion per year for three years. While this represents a 50% reduction from GRS , TFA will have a greater effect in reducing the fiscal disparities that exist amcna communities. Interstate Formula Changes Under the interstate formula, low income, low fiscal capacity states will receive a greater proportion of funds than high income, high fiscal capacity . states. A single formula based on population, tax effort, and fiscal capacity will determine the total allocation for all communities in a state. The population of the state will be adjusted by heavily weighting that portion of a state's population under 1508 of the poverty level, thereby reflecting need. Relative tax effort is included in the formula to reward those states that attempt to meet their own needs. In the interstate formula, total taxable resources (TTR) will be used as a measure of fiscal capacity. TTR, a comprehensive measure of fiscal capacity devised by the Department of Treasury, is the sum of all economic resources of,,,, a state -- all income received or produced in the state. It is more appropriate than per capita income because it includes income received by the state's residents that was produced elsewhere, as well as income produced in -state by out -of -state firms and individuals. TTR will be incorporated into a "fiscal gap" factor that measures how much a state's fiscal capacity is below the national average. Intrastate Formula The intrastate formula (which distributes the state's allocation among the localities) will target the funds to communities with the fewest resources but greatest needs. It will restrict and, in some cases, eliminate aid to jurisdictions that are well above the state average in fiscal capacity. Over 858 of the local governments that received funding under GRS will receive grants under TFA. The formula utilizes population, relative tax effort and per capita income (as the measure of fiscal capacity). As in the interstate formula, tax effort is rewarded providing an incentive for jurisdictions to meet their needs from their own resources. The formula cuts off grants entirely to relatively wealthy communities with per capita income above 1258 of the state average. At the same time, the cap on grants to poor, high tax effort jurisdictions will be set at 2008 or twice the state's average per capita grant. (GRS sets a cap at 1458.) Finally, the program will not have a floor on grants so that small "paper" governments, which provide virtually no services, will not receive any funds. The effect of both the interstate and intrastate formulas will be to direct the greatest proportion of a state's allocation to poor rural and urban communities, particularly those that have above average tax effort relative to resources. 0 } Congressional `Record LW U m.d Stan • ./A..,in PROCEEDINGS AND DEBATES OF THE 99th CONGRESS, SECOND SESSION Ibl. 132 WASHINGTON, THURSDAY, JANUARY 30, 1986 No. 7 Senate TARGETED FISCAL ASSISTANCE ACT has been declining since its highpoint • Mr. DURENBERGER. Mr. Press -in 1980. In that year, Federal aid dent, today DAN EVANS and I are intro - equaled 31.7 percent of all State and ducing a bill to establish a new pro* local own - source revenue. By 1984, this gram of "targeted fiscal assistance" figure had fallen to 23.7 percent and for local governments. Representatives in 1986 it is expected to be around 20 BOB MCEWEN, JOHN CONYEaS, and percent —a decline of 38 percent since PETER Vlscl.ossv are introduclnS a 1980. another way, defense expendl- Over the years, our failure to use companion bill in the House. tures have increased 43 percent over ' the Federal grant system effectively to hg years, and ave own b 2 pe nt. Meanwhile. address disparities In State and local Federal aid to State and local govern- fiscal capacities has been a basic fall -menu has been cut more deeply than ing in our intergovernmental partner -any other segment of the Federal ship. This is a responsibility whichbudget: Down 25 percent in current central governments have long as- outlays; down 25 percent in the sumed in every other major Federalnumber of programs; down 15 percent system. Today, as we stand on the as a proportion of GNP; down 20 per - verge of a fundamental restructuring cent as a proportion of the Federal of our budgetary priorities, the need budget. And this is only the beginning• to assure a minimum level of basic As the President has said, "you ain't public services nationwide can no seen nothin' yet." longer be ignored. Budget cuts are not the only chal- • Over the next few years, State and lenge confronting State and local gov- local governments will confront a tre- ernments in the months and years mendous challenge: To provide basic ahead. They will continue to face and essential services to their citizens more and more unfunded Federal during a period marked by limited and mandates as we, to Congress, search declining resources. Deficit reduction for shortcuts to achieve what we are has a price, and I'm afraid that price no longer willing to pay for. will include eliminating or drastically This practice is hardly unprecedent- cutting many of the programs that ed. Since the 1960's, Congress has have formed the basis of our intergov- often found It easier and cheaper to ernmental partnership over the past rely on Federal mandates to achieve decade. These are programs that have en- its goals, thereby directing the policies ed the national, State and local and allocating the resources of State go and local governments. Although they the Bel governments to work as partners v seem like bargains in Washington, ices succh h of important public sere- . these mandates impose substantial as highways and bridges, costs. One study conducted in 1978 schools and hospitals, health care for the poor and elderly, education and found that the total cost to local gov- ernments of six mandates averaged Job training for the disadvantaged, $25 per capita in seven jurisdictions - ing—t cleaner air and water, and public afraid roughly comparable to the amount of ing —to name just a few. I'm afraid that many of these programs will funds received by local governments ceive deep seductions in the next few ew under general revenue sharing. years. In short. State and local govern - And the fact of the matter is, these ments have had to shoulder new re- programs have already taken it on the sporsibilities and to pay for them out chin. Since 1981, a " Ve Facto New of their own pockets. Some can afford Federalism" has been occurring as the it. What they need Is a smooth transt- national Government has struggled to tion —time to adjust their spending get a hold on the deficit by reducing and revenues to the new realities. • domestic spending. Federal aid as a Yet some communities have no such percentage of State and local revenue options. In many rural areas, the prop- • J 0 erty tax base is plummeting with fall- ing land and market values, with the closure and declining profits of many farm - dependent businesses, and with Increased rates of tax delinquencies. In many urban areas, the problems are equally severe. Nationwide, property tax rates averaged 37 percent higher in our central cities than in surround- ing suburbs —before the cuts. Where are they to turn? The same is true of towns hit hard by closing mines or for- eign competition. From Maine to Ari- zona, the issue is the same. Some com- munities lack the fiscal resources they will need to offer basic public services. Not for want of trying; it's a simple matter of arithmetic. Given the same level of tax effort, a low income com- munity can only generate half the tax revenues of a high income community. For these communities, the loss of Federal aid means they will be forced to forgo or cut back on important and vital public services such as meals for the elderly, police and fire protection, and health care for the indigent. Ironically, these developments come just when the President and Congress have agreed to terminate general reve. nue sharing. As one of the strongest supporters of GRS over the years, I have accepted that decision with great reluctance. In its time, GRS has been one pf our best grant-in-aid programs. It has been virtually the only Federal program that seeks to lessen fiscal dis. parities among our local governments. It has been the most efficient program in the Federal arsenal; 99 percent of GRS funds go directly to recipients. Its "no- strings" grants to local govern- ments allowed officials at the local level, the officials closest to the People. to determine the best use of the funds. For many local govern- ments, it has been the single most im- portant intergovernmental grant. But the time for GRS has passed. The national Government no longer can afford to share revenues it doesn't have with wealthy cities and commu- nities. Neither can it afford to neglect communities which are so crippled by Federal aid cuts, increased responsibil- ities and a declining local tax base that they can no longer meet the basic needs of their citizens. In this era of budget cutbacks, we have a responsi- bility to establish our priorities with the utmost care. But such national pri- orities include reducing fiscal dispari- ties so severe that they prevent citi- zens from receiving basic public serv- ices. That need will be addressed by the program I am introducing here today called targeted fiscal assistance 1TFAI. President Reagan has assured us all that he will never let solutions to the deficit erode our basic safety net for needy individuals. Programs providing food, shelter, and health services to our poorest citizens must be main- tained. Yet, a real safety net is more than direct cash and In -kind assistance to Individuals. It also includes vital public services— police, fire, sanitation, public health and child protection— provided by local governments. And I firmly be- lieve it is a responsibility of the Feder- al Government to help ensure that all citizens enjoy a minimum level of these public services. The Targeted Fiscal Assistance Program I am pro- posing will ensure just that. TFA is a well- targeted program of general purpose grants to needy com- munities. Even with a moderate fund- ing level of $2.3 billion, it will reduce the fiscal disparities between high - income and low- income governments by 20 to 25 percent. It will reduce the fiscal disparities that are responsible for the substantial differences in the level and quality of basic community services. The formulas used in distributing these funds are based on need, tax effort, and fiscal capacity. They are designed so that the greatest propor- tion of a State's allocation will go to poor rural and urban communities, particularly those that have above av- erage tax effort relative to resources. While over 90 percent of thecommu- nities that received funds under gener- al sharing will also receive funds under the Targeted Fiscal Assistance Pro- gram, the relative distribution of funds within a State will be altered dramatically. Wealthy communities, defined as those whose average per capita income 25 percent or more above the State average will not be eli- gible to receive funds. Communities with low - fiscal capacity but high tax - effort can receive up to twice the aver- age State per capita grant. Finally, small "paper' governments which pro- vide virtually no services will not re- ceive funds. Mr. President, the realities we face today are clear. Less money. Less Fed- eral involvement. Tougher choices. Tougher competition. To many, the future looks much less clear. There are those who find the old ways comfortable. The old inter- governmental relationships we had may not have been perfect, but all of us knew what was expected of us. But if we are to act responsibly —if we are to shape the future —we cannot stand in the wings. We must go forth to meet the challenges we face. Targeted fiscal assistance can help us in this quest. 0 0 FOR YOUR INFORMATION 0 Oops! Puluth.,police blow up attorney's briefcase DULUTH "(AP) — M. George; short time later to get the briefcase incident began when an - "It blows it 'to pieces," Johnson .`JThe Downs. no doubt will think twice for City Council meeting. : unidentified man noticed the brief - said.' before leaving his briefcase behind! ButwhanhereturnedtoCityHall, `case 'and;' told a City Hall The briefcase then was "examin- e m It might get blown to tutg he was teld police were in- maintenanee worker, according to ed by them and determined not to in '" s vesGgajing a -report, of a possible „a police news release. Because it contain an explosive device or any owns, a city councilor,' stashed bomb:.,' , ,+ `N appeared to have been hidden and, other dangerous devices,” , the t�g briefcase containing working 'IN it`ywas because the identity of the man who release - release said. papers behind a statue in city hall George's briefcase until we came first reported it wasn't known, r Police handed Downs what was lrionday evening to avoid having to,- up here and they said they blew up it police contacted the St. Louis Coun. left of his papers in a large paper c8 my it across the street to dinner., strange briefcase and there were ty bomb squad. bag. He plannedIto return ,to City Hall a papers exploding all over the They also handed him his brief - pplace,'1;: said Councilor Joyce ' The bomb squad opened it with a case — "demolished," Downs said. ii - '7he blew u George's s resolu- :Sheriff Perl ;� Benson. p g blast of high- pressure water, said Ernie Grams. The squad set - For IOC81 sports coverage tionsand ordinances, " she said with }} } a laugh,+: lIC,'; :Policesaidtheythoughtthebrief- off a small, controlled explosion that shot water through a metal tube at very high speed, according at its best `" read The Journal '' case might contain to bomb squad member Al Johnson. ' �� A 544 APRIL-MY Hutchinson, Md 55350 Volume 1, Number 9 •® „�j - j7•� (612) 587 -4040 UNITS SELMMED FOR MUMS, OFFICE Two long- anticipated milestones - the completion and fur- . nistning of model condominium units for public display and ( �- .•. ! ..� the move of our offices from our temporary quarters down- town back to GRFMR'ASTLE are now "just around the comer." T'he units selected for models and temporary Sales and Dis- play Center are those on the east side of the courtyard fac- ing west, across the hall from the garages. (For those of you No, you can't move in with building plans, Units 123, 125, 127 and 129). For the with me, Harvey! I time being, until our front entrance off Freenwnt Avenue is told you a month ago, coupleted, access to the office and models will be a garage the early bird gets the entrance. We invite you to stop by to see us. We'll be worm AND the coIndominniuml planning soon for group tours (likely in June), and - a bit # ## later, probably in July - our Open House celebration. -- More on that in the rent GREETER. • MDRE ABOUT HOME COSTS COMTRUCTION IS 2IPPINGI VS HiOMEOWNER FEES The interior is shaping up with the final floors being poured; In an effort to let pros- meaning also, of course, the completion of the installation of pective Greencastle torte- plumbing and wiring. The walls are going into place with sheet - owners see hew the amounts rock transforming the interior of the building from a maze of they pay ncm for various ser- blueprint-predetermined upright wood columns into spacious vices stacks up with our areas becoming the living room, bedrooms, baths, hallways Homeowners Association Fees, and porches of comfortable, well - designed homes. The expanse MHrketing Representative of glass on each ham which signifies the porches has been Sheryl Bakewell has had a co plemantedduring the past week by the installation of the busy week putting together outer patio door. And, if the walls are going up, can their a comparison sheet. Attenpt- completion, the addition of the woodwork and the wood staining ing to compare apples with be far behind? It may have been a long winter, but spring apples," she has made count - means new life. The form - giving, "life - instilling" oonstruc- less phone calls and heated tion craws at the site are putting it all together to make her calculator to a rosy - Greencastle cane more alive each day. • glow to make those compari- # ## sons just as accurate as pos- sible. She now has a work- "GRAYING" MpH4(Ef STUDY REVEALS sheet which she is anxious to CHAILOX S, OPPORTUNITIE.9 show everyone who is interest- According to a story in the April, 1986, trade publication, ed in the numbers. It proves "Professional. Builder:" "Construction of retirement !musing that the Homeowners Associa - is for guilders who are interested in people and are willing tion Fees are a good buy, To to provide a service rather than just seek a profit." see a copy or to sit down Fran the beginning, Greencastle Developer Newell P. Weed, with Sheryl for an itemrby- Jr., has held as high priority considerations not only the .item discussion, give us a services to be afforded to the men and women who would be call at 587 -4040. owners of his dream condominium, but also their comfort, # ## security and long -timma happiness. He therefore finds himself SHOW WINNERS in agreement with many of the sentiments expressed in the "Pro- In keeping with our Green- fessional Builder" story, entitled "Meeting the Varied Market castle image, the prizes for the Graying of America." The statements are from builders selected for the April 12 b providing housing for "young old" and older old" Americans. 13 Home and Recreation Show Excerpts of the story follow: at the Civic Arena vere lush ceding housing for a graying America is a service and green plants and evergreen managmmmmntroriented field, says Leo Baldwin, Washington, D. C., seedlings. president of I.EO Inc., and former housing coordinator for the We wish everyone could American Association of Retired Persons. have won. HERE ARE THE IV= The only successful builders in this business are those who WIC: really care for older people, says Justus Ammons, bui.Lder /de- Myron Clapp, Hutchinson veloper of the Sprinngimoor Life Care Retirement Center in Bob Garberg, Hutchinson Raleigh, N.C. The approach in this field is tonally different Reuben Helmut, Hutchinson from building conventional apartments and single - family hones. Mary Ludowese, Hutchinson He adds, "It's a lot more complicated than what most builders Tony Pewlecki, Silver Lake are used to." hots. Hoverd Taws, Glencoe Operating a retirement facility is more like running a hotel ODNGRATUTATIONSII than an apartment building, says Albert Schneider, president (You can still "win" a of Retirement Community Developers, Alexandria, VA. beautiful new home at Green- Leo Baldwin believes that just four percent of persons over castle by registering your the age of 65 will migrate out of the state in which they • interest soon with a Green- reached 65. Of residents in a typical retirement community, (Continued on next page). (Continued on next page). 0 • • Loma will find a way. Indifierenm will find ao esc"sc. Ch.A. al.. aryl. . ' Id.nl Lwhenn Uull hose salesman to limo girl's m,aher.'7t's also an educational ruy—il aamcs with a mortgage." (Continued from page one) castle Marketing representa- tive. Just call our offices, 587 -4040, or stop by.) # ## IS TV HEM FFEMONT OUR 3TREEVS NAMWJM7 The possibility that the hem of the recent TV mini- series, "Dream West," is the same Fremont for whom Free - mont Avenue in Hutchinson is named prompted a call to Hutchinson City EYngineer. Mar- low Priebe. In case you missed it, the miniseries told the story of the 19th century explorer, politician and military man who charted the Oregon Tra11 and other parts of the West and conquered California for the United States. Fre. rest was the first Republican can- didate for president, losing to Democrat Janes Buchasan in 1856. Bette Hubin was the first to suggest that OUR Freanant might be THAT Fremont, but with a change in. spelling. Marlow falls us that the MAL story is nothing no ro- mantic. Seem some streets in the newly - developing south part of the city needed tames, and Marlow proposed Fraenpnt, re- m acbering it as a street in Minneapolis. In spite of "the rest of the story," watching the miniseries was more interesting because of the possible connection with Greencastle. And, after all, Who ]mows the origin of the Freesmt for vd m the Minnea- polis street was named??? (Continued from page one.) 858 will have moved fewer than 25 miles. Persona age 65 or older totaled 27.4 million in 1984 -- 11.79 of the U.S. population, according to the Bureau of Census. By the year 2000, persons 65 and older are expected to represent 139 of the U.S. population, and 21.28 of 2030. Nearly 276 of all households headed by a person 65 or older have enough income to put then in the "luxury" class, accord- ing to study by the Census Bureau and The Conference Board. Their per capita income - $5633- reflects the fact that these persons have no children to support,. often have paid -off mortgages, and receive tax breaks. !brewer, this grail has equity from the sale of the family ham to contribute to the purchase of a new house. All of these factors contribute to the discretionary spending capability of this group. William B. Scott, of the Woodridge project of Escondido, CA, agrees that marketing the product (c=kminiun) to the empty nester and active retiree calls for a different approach. Buyers have to be taken through the purchase steps so that they can be sure they are getting what they pay for, he says. They have to be reassured they are doing the right thing and that their investment is a good ores they want to be sure they are getting security and value. Results of an exclusive survey of builders reveal these additional findings: *Given a choice, empty nesters and retirees prefer out- right ownership of their home. *Most empty nesters and retirees plan to relocate near where they currently live instead of heading for aplace in the Stye Belt states, as is a canon perception. More than 906 of empty resters remain in the state they live in row. Less than 206 of retirees nave out of state. *A ccnrwdty's activities and the opportunity for social- izing "turn on" older Americans. *Personal security -type items —such as nonslip tile and a argency /fire alarms— indicate that empty nesters and re- tirees need to feel secure in their home. # ## QUESTIONS, WE (,'Er QUESTIONS ... Qs Now do S sell my unit? As The resident or the heirs contact the Greencastle Board of Directors indicating their desire to sell their unit. The seller establishes his own price. At that time, the Board would provide nacres from the waiting list of all those interested in purchasing that size unit. The seller receives ALL the money from the sale of the unit. Qs Will there be unsoftened drinking water in my unit? As Yes. The cold water tap In the kitchen is hard waters the remaining taps are all softened water (hot & cold). ANY QUESTIONS you might have about Greencastle are welcome. If you would like them answered in the GREL,,TEB, 77o�f then down and mail then to us at Box 544, Hutchinsanr M4 S950. If you would, like an immediate answer, give ui a ¢aYl at 587- 4040. # ## "Can that possibly be the same man whocomplains every Sunday about uncomfortable church pews?' Hutchinson, MinnesntW!&hil>l "`may- � " "�"r�;, .`'.• Mt, Gary Plotz, City Admits. Hutchinson City Hall 37 Washington Ave. W Hutchinsm, Mw 55350 • CERTIFICATION OF MINUTES RELATING TO $1,075,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1986 Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on April 29, 1986, at 7:30 o'clock p.m., in the City Hall. Members present: Members absent: Documents Attached: Minutes of said meeting (pages): 1 through 18 RESOLUTION NO. 8276 RESOLUTION RELATING TO $1,075,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1986; FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND • THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 29th day of April, 1986. • Gary D. Plotz City Administrator (SEAL) Member introduced the • following resolution and moved its adoption: RESOLUTION NO. 8276 RESOLUTION RELATING TO $1,075,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1986; FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: Section 1. Recitals. 1.01. Authorization. This Council has heretofore ordered various local improvement projects designated as Project No. 86 -01, Project No. 86 -02, Project No. 86 -03, Project No. 86 -03A, Project No. 86 -04, Project No. 86 -05, Project No. 86 -06 and Project No. 86 -07 (the Improvements), to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429. The present estimated total cost of the Improvements is as follows: Construction $ 752,000 • Engineering 162,000 Contingency 32,000 Cost of Issuance 28,000 Capitalized Interest 80,000 Registration 3.000 Subtotal $1,057,000 Discount 18,000 TOTAL $1,075,000 1.02. Sale. Pursuant to Resolution No. 8252 , this Council determined to issue and sell $1,075,000 principal amount of General Obligation Improvement Bonds of 1986, of the City (the Bonds) to defray the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and $18,000 representing interest as provided in Minnesota Statutes, Section 475.56. Pursuant to Resolution No. 8252 , a public sale of the Bonds was held on April 29, 1986 and this Council, by resolution 0 • adopted on that date, accepted the bid of , of (the Purchaser), to purchase the Bonds on the terms and conditions set forth in the Terms and Conditions of Sale. • 11 1.03. Issuance of Bonds. All acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to the issuance of the Bonds have been done, do exist, have happened, and have been performed, wherefore it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof, and to issue the Bonds forthwith. 1.04. Maturities. This Council finds and determines that the maturities of the Bonds, as set forth in Section 3.01 hereof, are warranted by the anticipated collection of the assessments and ad valorem taxes to be levied for the cost of the Improvements. Section 2. Form of Bonds. 2.01. Form of Bonds. The Bonds shall be prepared in substantially the following form: -2- (Face of Bonds] • UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND OF 1986 Date of Rate Maturitv Original Issue CUSIP May 1, 1986 SEE REVERSE FOR CERTAIN DEFINITIONS REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF HUTCHINSON, McLeod County, Minnesota (the • City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on May 1 and November 1 in each year, commencing November 1, 1986, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of , in 1 , as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. n U -3- • This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Administrator and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. Dated: (Facsimile Signature) (Facsimile Signature) City Administrator Mayor (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the • Resolution mentioned within. n LJ By Authorized Representative [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount of $1,075,000 (the Bonds), all of like date and tenor except as to serial number, interest rate, and maturity date, issued to pay the cost of construction of local improvements in the City (the Improvements), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. This Bond is payable primarily from the 1986 Improvement Bond Fund (the Fund) of the City, but the City is required by law to pay maturing principal hereof and interest thereon out of any funds in the treasury if moneys on hand in the Fund are insufficient therefor. The Bonds are issuable only as fully -4- registered bonds, in denominations of $5,000 or any integral . multiple thereof, of single maturities. Bonds maturing in the years 1988 through 1993 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1994 through 1997 are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in inverse order of maturities and by lot, assigned in proportion to their principal amount, within any maturity, on May 1, 1993 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. • As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. • -5- . IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has levied or agreed to levy special assessments on property specially benefited by the Improvements and ad valorem taxes on all taxable property within the City, collectible in the years and amounts required to produce sums not less than 5% in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Fund in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any charter, constitutional or statutory limitation. • The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: • TEN COM -- as tenants UNIF GIFT MIN ACT..... Custodian..... in common (Gust) (Minor) TEN ENT -- as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common under Uniform Gifts to Minors Act...... .. ....... (State) Additional abbreviations may also be used. we ASSIGNMENT . FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatsoever. Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. 2.03. Form of Certificate. A certificate in substantially the following form shall appear on the reverse side of each Bond, following a copy of the text of the legal opinion of Bond Counsel: We copy of the of Bonds of Bond, dated Bonds. (Facsimile City Adm certify that the above legal opinion rendered the City of Hutchinson as of the date of deli signature) inistrator is a full, true and correct by Bond Counsel on the issue which includes the within very of and payment for the (Facsimile signature) Mayor Section 3. Bond Terms ExeCution and Delivery. 3.01. Maturities, Interest Ratea, Denominations, Payment. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Improvement Bonds of 1986" and shall be payable primarily from the 1986 Improvement Bond Fund created in Section 9.02 hereof. The Bonds shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on May 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until -7- • • paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount Rate Year Amount Rate 1988 $ 100,000 1993 $ 100,000 1989 100,000 1994 100,000 1990 100,000 1995 125,000 1991 75,000 1996 150,000 1992 75,000 1997 150,000 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates: Interest Payment Dates. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to November 1, 1986 in . which case such Bond shall be dated as of May 1, 1986. The interest on the Bonds shall be payable on May 1 and November 1 in each year, commencing November 1, 1986, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. • 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized �E by the registered owner in writing, the Registrar shall . authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur • no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated Lost Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or QM • destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 3.04. Appointment of Initial Registrar. The City hereby appoints , as the initial Registrar. The Mayor and the City Administrator are authorized to execute and deliver, on behalf of the City, a contract with , as • Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Administrator shall transmit to the Registrar from the 1986 Improvement Bond Fund described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. • 3.05. Redemption. (a) Bonds maturing in the years 1988 through 1993 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 1994 through 1997 shall each be subject to redemption and prepayment, at the option of the City, in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on May 1, 1993 and on any interest payment date thereafter at a price -10- equal to the principal amount thereof to be redeemed plus • interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the City Administrator shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding • such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authenti- cation on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the City Administrator to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. 4.01. 1986 Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "1986 Improvement Construction Fund" (hereinafter referred to as the Construction Fund), to be held and administered by the City Administrator separate and apart from all other funds of the City. The City appropriates to the Construction Fund • -11- . (a) the proceeds of the sale of the Bonds, and (b) all collections of special assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Bonds set forth in Section 9 hereof. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council, but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 1986 Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Administrator shall maintain a separate and special bookkeeping fund designated "1986 Improvement Bond Fund" (hereinafter referred to as the Bond Fund) to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other • improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (b) any taxes levied in accordance with this resolution, and (c) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. E 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Fund as may be required to finance costs of the Improvements not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds, levy or agree to levy by resolution sufficient additional special assessments and ad valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of said additional -12- obligations, will produce revenues at least five percent (5 %) • in excess of the amount needed to pay when due the principal and interest on all 'bonds payable from the Bond Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of each of the Improvements it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20 %) of the cost of such Improvement. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required • by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be payable in not more than _ installments, the first installment to be collectible with taxes during the year 198_, and that deferred installments shall bear interest at the rate of percent (—%) per annum from the date of the resolution levying said assessment until December 31 of the year in which the installment is payable. 4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest in the Bonds as the same become respectively due. For the purpose there is hereby levied upon all of the taxable property of the City a direct, annual ad valorem tax, which shall be spread upon the tax rolls prepared in each of the following years and collected with other taxes in the following years and amounts as follows: E -13- • Levy Collection Year Year Amount 1986 1987 1987 1988 1988 1989 1989 1990 1990 1991 1991 1992 1992 1993 1993 1994 1994 1995 1995 1996 The foregoing tax levies are such that if collected in full they will produce at least five percent (5%) in excess of the amount needed to pay when due the principal of and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are outstanding and unpaid; provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 4.06. Full Faith and Credit Pledged. The full faith • and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the taxes and special assessments levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5 %) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the amount of taxes and special assessments theretofore levied for the Improvements and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest become due on all Bonds payable therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of • this resolution. -14- Section 5. Defeasance. When all of the Bonds and all coupons appertaining thereto have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds and coupons appertaining thereto which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. Registration. Certification of Proceedings Investment of Moneys and Arbitrage. 6.01. Registration. • The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or • -15- • agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1954, as amended (the Code), and Regulations promulgated thereunder. 6.04. Investment of Moneys on Deposit in Bond Fund. Unless and until the regulations under Section 103(c) of the Code which have been promulgated by the Internal Service prior to the date hereof have been modified or amended in pertinent part, the City Administrator shall ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit therein ever exceeds by more than $161,250 the aggregate amount of principal and interest due and payable from the Bond Fund within 12 months thereafter plus a reasonable carryover amount not exceeding the greater of one year's earnings on the Bond Fund or one - twelfth of the annual debt service payable therefrom, such excess shall not be invested except at a yield less than or equal to the yield on the Bonds, based upon their amount, maturities and interest rates on their date of issue, computed by the actuarial method. If any additional improvement bonds are ever issued and made payable from the Bond Fund pursuant to Section 4.03 hereof, the dollar amount in the preceding sentence shall be changed to equal fifteen percent (15 %) of the aggregate original principal amount of all bonds, including the Bonds, which are then outstanding and • payable therefrom. The City reserves the right to amend the provisions of this Section 6.04 at any time, whether prior to or after the delivery of the Bonds, if and to the extent that this Council determines that the provisions of this Section 6.04 are not necessary in order to assure that the Bonds are not arbitrage bonds under Section 103(c) of the Code and the applicable Regulations. 17J 6.05. Arbitrage. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 103(c) of the Code, and Treasury Regulations, Sections 1.103 -13, 1.103 -14 and 1.103.15, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which indicate that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. Section 7. Compliance with New Legislation and Regulations. This Council is aware that the United States House of Representatives adopted on December 17, 1985, H.R. 3838 (the Tax Reform Bill) which imposes certain requirements -16- which must be satisfied by the issuers of municipal obligations • if the interest on such obligations is to be exempt from federal income taxation, and that the Tax Reform Bill is now pending before the United States Senate. In order to enhance the marketability of the Bonds this Council has determined that it is necessary and desirable to structure the Bonds and the application of the proceeds thereof so as to comply with the Tax Reform Bill, assuming that, if finally enacted into law, the Tax Reform Bill would apply to the Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will take, or it will cause its officers, employees or agents to take, all action within its powers which may be necessary to ensure that the interest on the Bonds will not become subject to taxation under any federal legislation adopted (including, without limitation, the Tax Reform Bill) or federal tax regulations promulgated during the period for which the Bonds are issued and during which the Bonds are outstanding, including, without limitation, the rebate to the federal government of any investment income earned by the City from the investment of the proceeds of the Bonds at a yield greater than the yield on the Bonds. The City covenants that not less than five percent (5$) of the net proceeds of the Bonds will be expended within thirty (30) days of the date of issuance of the Bonds on the Improvements. The City further covenants and agrees with such holders that it will take, or it will cause its officers, employees or agents to take, all • action necessary to ensure that complete and accurate financial records are maintained regarding any investments made of all Bond proceeds, in order to,assure compliance by the City with any rebate requirements hereafter established by new federal law (including, without limitation, the Tax Reform Bill) or federal tax regulations, and that it will take, or it will cause its officers, employees or agents to take, all actions necessary to comply with the reporting requirements imposed on the City with respect to the Bonds by the Tax Reform Bill and any reporting requirements imposed-on the City with respect to the Bonds by new federal law or federal tag regulations. Section 8. Designation of Bonds for Purposes of Section 802(e) of Tax Reform Bill. This Council hereby designates the Bonds as "qualified tax exempt obligations" for purposes of Section 802(e) of the Tax Reform Bill. In making this designation this Council represents that the reasonably anticipated qualified tax- exempt obligations which will be issued by the City during 1986 do not exceed $10,000,000, and that the City has not issued any other qualified tax exempt obligations under Section 802(e) of the Tax Reform Bill during 1986. • -17- • Section 9. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City Administrator is hereby authorized and directed on the date of issuance and delivery of the Bonds to pay from the proceeds of the sale of the Bonds, deposited in the Construction Fund the fees and expenses of the following persons incurred in connection with the issuance of the Bonds up to the maximum amount set forth opposite the name of such person upon receipt by the City of a satisfactory statement therefor: Payee Ehlers & Associates, Inc. Minneapolis, Minnesota Dorsey & Whitney Minneapolis, Minnesota Service Performed Financial Consultant Bond Counsel Maximum Amount $13,708.75 $ 2,750.00 Moody's Investors Service, Inc. New York, New York Rating of Bonds $ 1,500.00 The claims of the above persons up to the maximum amount set • forth opposite the name of such person is hereby approved and no further action of this Council shall be necessary in connection with the payment of such fees and expenses of issuance of the Bonds. Mayor Attest: City Administrator (SEAL) • -18- The motion for the adoption of the foregoing 0 resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereofand the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. -19- • E ADMINISTRATIVE UPDATE APRIL 22, 1986 CITY OF HUTCHINSON GUTORMSON SHED TO BE REMOVED WEDNESDAY MORNING Doug Meier has notified me that Juul Contractin will be removing the shed Wednesday morning. SPECIAL COUNCIL MEETING TO ACCEPT BID IMPROVEMENT BONDS As mentioned at the last council meeting, there will need to be a special council meeting on Tuesday, April 29 at 5:30 p.m. for the purpose of accepting improvement bonds. PROPOSED SEWAGE TREATMENT PROJECT On Monday, April 21, City staff met on a "check list" of scope of services for Phase III on the posed sewage treatment project. ed on this meeting, CED /Donohue & Associates will propose a Scope of Services and Associated Costs. The council would review the scope of services in late May or early June and then forward this to MPCA for approval. Subsequently (October) MPCA would decide on authorization to proceed with execution of a contract. SPECIAL ELECTION Attached is a memorandum from Dean O'Borsky requesting an insert be placed in City billings to explain the May 13th vote. Since our water /refuse billing comes out quar- terly, this will not be possible. The next gas /electric billings will not be out until approximately May 10 (election May 13). In the past we have produced an insert in the Leader or Shopper. Does the city council want such an information piece for this vote? Any suggestions are welcomed by the city staff and especially the police department. NO NEW PROPOSAL /BIDS FOR FARMLAND RENTAL le city advertised bids for farmland rental at the airport. No bids were received, however Eugene Birk said he bids. ISSUE NO. CONTRACT FOR DEED - EILEEN GOEDERS/ CITY OF HUTCHINSON As requested, I negotiated with Mrs. Goeders for (Lot 2 and Lot 3, Block 9) the police station site. The appraisal was for $96,703. The final negotiated price is $90,000, with a waiver of relocation benefits (copy attached). Also attached is a letter acknowledging the right to build upon the premises, during the term of the contract for deed. Other terms of the contract are as proposed at the last council meeting (contract for deed attached). HUTCHINSON POLICE DEPARTMENT MEMORANDUM TO Gary Plotz FROM Dean M. O'Borsky, Chief of Police SUBJECT Special Election DATE 4 -18 -86 Could you see to it that an insert is placed in city billings which explains what the vote is about and what it means to the taxpayer, etc? I would like to see it before it goes out. • LA DMO:neb 0 W. B. (BILL) HAAS • ATTORNEY AT LAW 212 CITIZENS BANK BUILDING TELEPHONE P.O. BOX 157 612 -587 -4777 HUTCHINSON, MINNESOTA 55350 -0157 April 23, 1986 Mr. Gary Plotz City Administrator City Hall 37 Washington Ave W Hutchinson, MN 55350 Re: Eileen Goeders Dear Gary: Enclosed herewith is the proposed contract for deed between Eileen Goeders and the City of Hutchinson. • Eileen will execute the document waiving relocation expenses, and does herein acknowledge that the city has the right to build upon the premises without her permission. I trust that this will cover the matter. Thank you. Very truly yours, z W. B. Haas WBH:cz enc. P.S. Do not execute the Contract in behalf of the City until you tender the dam payment to Mrs. Goeders. 40 0 WAIVER OF RELOCATION BENEFITS The undersigned owner - occupant being first duly sworn does state as follows: 1. That prior to any action by the City of Hutchinson does hereby state that she is willing to sell certain real estate and requests that the property be acquired through negotiations with the said City. 2. State that she has received the "Residential Relocation Guide" for the City of Hutchinson, and understands that she may be eligible for relocation benefits. 3. That she does voluntarily waive any relocation assistance, services, payments and benefits for which she may be eligible. 4. Further state that she has voluntarily signed this agreement and has not been threatened by eminent domain proceedings by the City of Hutchinson, but • that she reserves the right to request friendly condemnation proceedings if she so desires. n i Dated this day of 1986. j Ilene Goeders 0 6782— CON TPPCT FOP DEED 1818a1 IrIM ... 1 Selbr to C '1.1lon No delinquenttaxes and iransfer entered; Certificate of Real Estate Value ( )filed ( )not required 19 —. • By County Auditor MORTGAGE REGISTRY TAX DUE HEREON: $ tar payment datal ' April 18 86 Date: THIS CONTRACT FOR DEED is made on the above date by Eileen goec* , fm.,m, -ly krnan as Eilem Rusch .•'rt.,., .,n,pnur '� (marital status) Seller (whether one or more), and ' corporti under the laws of the State of Miruwsota ,Purchaser. Seller and Purchaser agree to the following terms: 1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buys, mat property in Mr•1ur1 County, Minnesota, described as follows: Lots 2 and 3, Block 9, Citl;.'of Hutchinson, South Half • together with all hereditaments and appurtenances belonging thereto (the Property). 2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the following exceptions: (a) Covenants, conditions, restrictions, declarations and easements of record, if any; (b) Reservations of minerals or mineral rights by the State of Minnesota, if any; (c) Building, zoning and subdivision laws and regulations; (d) The lien of real estate taxes and installments of special assessments which are payable by Purchaser pursuant to paragraph 6 of this contract; and (e) The following liens or encumbrances: 3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's prompt and full performance of this contract, Seller shall: ylananty, Deed, in (a) Execute, acknowledge and deliver to Purchaser e recordable form, conveying marketable title to the Property to Purchaser, subject only to the following exceptions: (i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract; (ii) Lima, encumbrances, adverse claims or other matters which Purchaaerhas created, suffered or permitted to accrue after the date of this contract; and • 0 (iii) The following liens or encumbrances: `J ;and (b) Deliver to Purchaser the abstract of title to the Property or, if the title is registered, the owner's duplicate certificate of title. PURCHASE PRICE. Purchaser shall pay to Seller, at her resider oe Ninety thousand and no/100th. doll 90.000,00the sum of as and for the purchase price for the Property, payable as follows: $18,000.00, cash in hand paid receipt of which is hereby acknowledged, the principal balance of $72,000 shall bear interest at the rate of 8.58 per annum frrxn the date of possession and shall be paid as follows: $1,500 on the first day of Septeuber, 1986, and on the first day of each nmnth thereafter to and including the first day of July, 1991. The entire unpaid prirxdpal balance and any accrued interest thereon shall be due and payable on the first day of August, 1991. Possession of the premises shall be given to the buyer on the first day of August, 1986. The buyer shall have the right to reaove the buildings fran the premises. The purchase price stated herein is allocated $60,000 to lot 2, and $30,000 to lot 3, block 9, City of Hutchinson, South Half. 5. PREPAYMENT. Unless otherwise provided in this contract, Purchaser shall have the right to fully or partially prepay this contract at any time without penalty. Any partial prepayment shall be applied first to payment of amounts then due under this contract, including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of their maturity. Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. 6. REAL ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real estate taxes and installments of special assessments assessed against the Property which are due and payable in the year 1992 and in all subsequent years. Real estate taxes and installments of special assessments which are due and payable in the year in which this contract is dated shall be paid as follows: Seller shall pay 7 /12ths of the taxes and installments of special assessments, if any, and the buyer shall pay the balance, for the year of 1986. Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this contract is dated are paid in full. 7. PROPERTY INSURANCE. - (a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended , coverage perils, vandalism Malicious mischief and, if applicable, steam boiler explosion for at least the amount of If any of the buildings, improvements or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood insurance in amounts reasonably satisfactory to Seller. (b) OTHERTERMS. Theinsurance policy shall contains loss payableclause in favor ofSellerwhich provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so- called standard mortgage clause. • (c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance company. 8. DAMAGE TO THE PROPERTY, (a) APPIJCA71ON OF INSURANCE PROCEEDS. If the Property is damaged by fire or other casualty, the insurance paoceede paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid, unless Purchaser makes a permitted election described in thenextparagraph . Such amounts shall be fiat applied to unpaid accrued interest and neat to the installments to be paid as provided . in this contract in the inverse order of their maturity. Such payment shall not postpone the due - date of the installments to be paid pursuant to this contract or change the amount of such - installments. The balance of insurance proceeds, if any, shall be the property of Purchaser. (b) PURCHASER'S ELEMON TO REBUILD. If Purchaser is not in default under this contract, or after curing any such default, and if the mortgagees, in any prior mortgages and sellers in any • prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work) deposited in escrow with a bank or title insurance company qualified to do business in the State of Minnesota, or such other party e s may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty days after the damage occurs. Also, the election will only be permitted if the plane and specifications and contracts for the repair work are • approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the repair work, Purchaser shall, before the commencement of the repair work, deposit into such escrow sufficient additional money to insure the full payment for the repair work. Even if the insurance proceeds are unavailable or are insufficient to pay the cost of the repair work, Purchaser shall at all times be responsible to pay the full coat of the repair work. All escrowed funds shall he disbursed by the escrowee in accordance with generally accepted sound construction disbursement procedures. The costs incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such escrow before the commencement of the repair - work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and workmanlike manner, and in any event the repair work shall be completed by Purchaser within one year after the damage Occurs. If, following the completion of and payment for the repair work, there remain any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this contract in accordance with paragraph S (a) above. 9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY. (a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries occurring on or after the date of this contract to any person or persons or property while on or about the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and obligations, including reasonable attorneys' fees, on account of or arising out of any such injuries. However, Purchaser shall have no liability or obligation to Seller for such injuries which are caused by the negligence or intentional wrongful acts or omissions of Seller. (b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occuring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured. 10. INSURANCE, GENERALLY. The insurance which Purchaser is required w procure and maintain pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this contract. The insurance policies shall provide for not less than ten days written notice to Seller before cancellation, non - renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies. Il. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain oris conveyed in lieu thereof underthreat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid. Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid as provided in this contract in the inverse order of their maturity. Such payment shall not postponethe due date of the installments to be paid pursuant to this contract or change the amount of such • installments. The balance. if any, shall be the property of Purchaser. 12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im- provements or fixtures now or later located on or a part of the Property, nor shall Purchasercommit or allow, waste of the Property. Purchaser shall maintain the Property in good condition and repair. Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any such liens or adverse claims. 13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by the party who records or files this contract; however, this provision shall not impair the right of Seller to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable law governing default and service of notice of termination of this contract. 14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interestin the Property, a copy of such assignment shall promptly be furnished to the non - assigning party. 15. PROTECTION OF INTERESTS. If Purchaser fails to pay any sum of money required under the terms of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so paid by Seller and the coat of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this contract, as an additional amount due Seller under this contract. If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage,contract for deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser, and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts paid from the installment(s) next coming due under this contract. 16. DEFAULT. The time of performance by Purchaser of the terms of this contractis an essential part of this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at Seller's option, elect to. declare this contract cancelled and terminated by notice to Purchaser in accordance with applicable law. All right, title and interest acquired under this contract by Purchaser shall then cease and terminate, and all improvements made upon the Property and all payments made by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for bre ach of this contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing. After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until the expiration of such period. 17. BINDING EFFECT. The terms of this contract shall run with the land and bind the parties hereto and their successors in interest. 18. HEADINGS. Headings of the paragraphs of this contract are for Convenience only and do not define, limit or construe the contents of such paragraphs. •. 19. ASSESSMENTS BY OWNERS' ASSOCIATION. If the Property is subject to a recorded declarafion providing for assessments to be levied against the Property by any owners' association, which assessments may become a lien against the Property if not paid, then: (a) Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or ether governing body as required by theprovisions of the declaration or other related documents; and (b) So long as the owners' association maintains a master or blanket policy of insuranceagainatfire, extended Coverage perils and such other hazards and in such amounts as are required by this contract, then: W Purchaser's obligation in this Contract to maintain hazard insurance coverage on the Property is satisfied; and (ii) The provisions in paragraph 8 of this contract regarding application of insurance proceeds shall be supemeded by the provisions of the declaration or other related documents; and (iii) In the event of a distribution of insurance proceeds in lieu of restoration or repair following an insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby assigned and shall be paid to Seller for application to the sum secured by this contract, with the excess, if any, paid to Purchaser- 20. ADDITIONAL TERMS: SELLER(S) Eileen Goeders tcErinerly krxran as F' 1INen Rnerh State of Minnesota J,. County of Mcleod PURCHASER BY its BY _ Its RI WWRFf The foregoing instrument was acknowledged before me this —day of April by and the and of a NRm pal �,, p ,rR .adn„ under the laws of Mi m.ecnta on behalf of the NOTARIAL 4rAMP OR SEAL )O0. OTNRR TITLE OA MNMJ State of Minnesota x. County of LKcI'aOd il SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL The fore ofp g instru ent was acknolivledged beforeBpag this °"`tlBy of April 19 86 by 11eeR n , former y xrLVxr1 as 1 een 1�i, a wl'�le r NOTARIALSTAMP OR SEAL ,OROTHERTITLE OR RANK, AIX'SF, WILLIAM D. HAAS Y��t����tttLLLSfylt NOTARY PUBLIC - MINNESOTA `,ARV MCLEOD COUNTY My Lammlssmn Erp-5 Jum 31. 199 THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS): W. B. HAAS IAW OFFICE 212 Citizens Bank Building P.O. Box 157 Hutchinson, MN 55350 -0157 Phone (612) 587 -4777 Tn S1aW(( RKRawipopely(axrMinitasilsms Wwwta'. CITY OF HUICHIMON 37 Washirgtzxt Ave W Hutchin cri, MN 55350 • FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES PRIORITY OVER PURCHASER'S INTEREST IN THE PROPERTY. •