cp10-09-2012 cWorkshop — 4:00 p.m. — Burns Manor Nursing Home Property
AGENDA
REGULAR MEETING — HUTCHINSON CITY COUNCIL
TUESDAY, OCTOBER 9, 2012
1. CALL TO ORDER — 5:30 P.M.
2. INVOCATION — Bethlehem United Methodist Church
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
5. PUBLIC COMMENTS
6. MINUTES
(a) REGULAR MEETING OF SEPTEMBER 25, 2012
Action — Motion to approve as presented
7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise
ave een e egate to t e City Administrator. Traditionally, items are not discussed.)
(a) RESOLUTIONS AND ORDINANCES - NONE
(b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
- CHANGE ORDER NO. I -LETTING NO. 5, PROJECT NO. 12 -06 (TRUNK HWY 15 RETAINING
WALL)
- CHANGE ORDER NO. 2 — LETTING NO. 3, PROJECT NO. 12 -04 (2012 PAVEMENT
MANAGEMENTPROGRAM)
(c) CONSIDERATION FOR APPROVAL OF ACCESS AND SIGN EASEMENT FOR "HUTCHINSON"
SIGN INSTALLATION
(d) CONSIDERATION FOR APPROVAL OF ACTIVATION OF DEFERRED ASSESSMENTS — SA5059H
(e) CONSIDERATION FOR APPROVAL OF RECOMMENDING CHARTER COMMISSION APPLICANTS
TO BE FORWARDED TO CHIEF DISTRICT JUDGE — DON WALSER AND CHRIS KLEIMAN
(f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Action — Motion to approve consent agenda
8. PUBLIC HEARINGS —6:00 P.M. -NONE
9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose: to provide Council with information
necessary to cra t wise po icy. A ways looking toward t e uture, not monitoring past)
(a) DISCUSSION OF ADDING ROOF TO STAGE AT WEST RIVER PARK
CITY COUNCIL AGENDA —OCTOBER 9, 2012
10
I1
Action -
(a) CONSIDERATION FOR APPROVAL OF ISSUANCE OF $2,275,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2012C (ADOPT RESOLUTION NO. 14056)
Action — Motion to reject — Motion to approve
(b) ORDINANCE NO. 12 -696 - AN ORDINANCE AMENDING LEASE AGREEMENT WITH
HUTCHINSON HEALTH CARE (FIRST READING AND SET SECOND READING AND ADOPTION
FOR OCTOBER 23, 2012)
Action — Motion to reject — Motion to approve
(c) DISCUSSION ON BURNS MANOR PROPERTY AND CONSIDERATION FOR APPROVAL OF
RIGHT OF FIRST REFUSAL
Action — Motion to reject — Motion to approve
(d) CONSIDERATION FOR APPROVAL OF SETTING TOWN HALL MEETING FOR OCTOBER 17, 2012,
AT 7:00 P.M. FOR DISCUSSION OF AMENDING LEASE AGREEMENT WITH HUTCHINSON
HEALTH CARE
Action — Motion to reject — Motion to approve
(e) CONSIDERATION FOR APPROVAL OF SETTING PUBLIC MEETING FOR JOHN DAVIS
WORKSHOP ON THE ARTS & ECONOMIC DEVELOPMENT FOR OCTOBER 25, 2012, FROM 8:00 —
9:30 A.M. AT THE CENTER FOR THE ARTS
Action — Motion to reject — Motion to approve
12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy thatguides the organization and
Councie the logistics of the Council. May include monitoring reports, policy development and governance
process items)
(a) FIRE DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2012
(b) PUBLIC LIBRARY BOARD MINUTES FROM JULY 23, 2012
(c) WEED NOTICE MONTHLY REPORT FOR SEPTEMBER 2012
(d) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 6, 2012
13. MISCELLANEOUS
14. ADJOURN
MINUTES
REGULAR MEETING — HUTCHINSON CITY COUNCIL
TUESDAY, SEPTEMBER 25, 2012
1. CALL TO ORDER — 5:30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Bill Arndt, Eric Yost
and Chad Czmowski. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and
Marc Sebora, City Attorney.
2. INVOCATION — Rev. Howard Anderson, Hunter's Ridge Community Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4, RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
• INTERNATIONAL WALK/BIKE TO SCHOOL DAY PROCLAMATION — OCTOBER 3, 2012
5. PUBLIC COMMENTS
6. MINUTES
(a) REGULAR MEETING OF SEPTEMBER 11, 2012
Motion by Czmowski, second by Christensen, to approve the minutes as presented. Motion carried
unanimously.
7. CONSENT AGENDA (Purpose: onlyfor items requiring Council approval by external entities that would otherwise
ave een delegated to e City Administrator. Traditionally, items are not discussed.)
(a) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 14053 - RESOLUTION AUTHORIZING EXECUTION OF GRANT
AGREEMENT WITH MINNESOTA DEPARTMENT OF PUBLIC SAFETY, OFFICE OF
TRAFFIC SAFETY, FOR TRAFFIC SAFETY ENFORCEMENT PROJECTS
(b) CONSIDERATION FOR APPROVAL OF ISSUING TATTOO LICENSE TO DOUGLAS T.
MOLTON LOCATED AT 15 WASHINGTON AVENUE EAST
(e) CONSIDERATION FOR APPROVAL OF AWARDING CONTRACT TO REPLACE LIQUOR
HUTCH ROOF
(d) CONSIDERATION FOR APPROVAL OF BAG FILM PURCHASE
(e) CONSIDERATION FOR APPROVAL OF DESIGNATION OF VEHICLES /EQUIPMENT AS
SURPLUS PROPERTY
(f) CONSIDERATION FOR APPROVAL OF 2012 SPOOKY SPRINT EVENT
(g) CONSIDERATION FOR APPROVAL OF ISSUING COMMERCIAL HAULING AND RECYCLING
LA Lo,-)
CITY COUNCIL MINUTES — SEPTEMBER 25, 2012
LICENSE TO WEST CENTRAL SANITATION, INC.
(h) CONSIDERATION FOR APPROVAL OF ENTERING INTO GRANT AGREEMENT WITH
DEPARTMENT OF NATURAL RESOURCES FOR TREE REMOVAL AND REPLANTING
(i) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS
- CHANGE ORDER NO. I — LETTING NO. 1, PROJECT NO. 12 -01 (5TH AVENUE NW)
- CHANGE ORDER NO.4 — LETTING NO. 8, PROJECT NO. 12 -09 (LES KOUBA PARKWAY)
(j) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
Items 7(b), 7(c) and 7(h) were pulled for separate discussion.
Motion by Arndt, second by Czmowski, to approve consent agenda with the exception of the items noted
above. Motion carried unanimously.
Item 7(b) had further discussion. Council Member Arndt noted that he wanted to put on the record he is
against the approval of this license.
Motion by Christensen, second by Yost, to approve Item 7(h). Roll call vote was taken: Christensen — aye;
Arndt — nay; Cook — aye; Yost — aye; Czmowski — nay. Motion carried 4 to 1.
Item 7(c) had further discussion. Council Member Yost asked why this project wasn't completed when the
renovation was completed in 2005 -2006. Jeremy Carter, City Administrator, noted that he is not completely
sure why this wasn't done during the remodeling since he was not involved with the renovation project,
however his best speculation is that the renovation budget did not include a roof replacement. Or perhaps
during the time of remodel, the roof wasn't in need of replacement. The scope of the project now includes
incorporating a trussel to separate the roofs between the Liquor Hutch and the Econo Foods building. The
current project consists of removal and replacement of the roof membrane, ballast, any damaged or
undersized flashings, and all damaged insulation that is discovered upon removal of the membrane. A 20
year warranty was included with the bid. The low bid was received to the amount of $61,980.
Motion by Yost, second by Arndt, to approve Item 7(c). Motion carried unanimously.
Item 7(h) had further discussion. Mayor Cook mentioned that this grant amount is for $25,000 to remove
and replant or plant trees for diversity.
Motion by Czmowski, second by Yost, to approve Item 7(h). Motion carried unanimously.
8. PUBLIC HEARINGS — 6:00 P.M. - NONE
9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose: to provide Council with information
necessary to craft wise po icy. A ways looking toward t e uture, not monitoringpast)
(a) UPDATE ON STOVE - TOP /FIRE -STOP PROJECT AND RENTAL REGISTRATION FUND
ALLOCATION
Brad Emans, Fire Chief, presented before the Council. Chief Emans explained that an appointed committee
consisting of Jean Ward, Mary Christensen, Cindy Hoffman and Brad Emans met to discuss the Stove -
Top/Fire -Stop product, including funding, distribution and product maintenance ideas. The committee
discovered that the product has only a five -year shelf life and a cost of $35 -$40 each. Due to the shelf life,
the committee deemed it was not feasible or practical to install and maintain the product in rental properties.
Instead, the committee decided that the product should be promoted through multiple venues in an effort to
make citizens aware of it. In addition, ACE Hardware agreed to carry the product for purchase.
Chief Emans explained that the committee has recommended that 50% of the rental registration funds be
2
Lt.-)
CITY COUNCIL MINUTES — SEPTEMBER 25, 2012
allocated starting in 2013 to purchase and distribute 10 -year lithium smoke detector batteries to multi - family
rental properties. If approved by the Council, the fire department will distribute the batteries over a three
year period during the rental registration inspection process. An appropriate number of batteries will be
given to each manager /owner during the inspection of multi - family housing to cover the requirement of one
detector in each unit and one detector in each sleeping room.
Mayor Cook suggested that a credit be given to property owners if new smoke detectors are installed. Chief
Emans suggested having the committee meet again to discuss this.
10. UNFINISHED BUSINESS
11. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF PROVIDING FOR THE SALE OF $2,275,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2012C — ADOPTING RESOLUTION NO. 14054
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained the schedule of
events if the Council approves the pre -sale report. October 9, 2012, is scheduled to award the sale of the
bonds. The bonds are to fund five improvement projects and are being issued for a 15 -year term. Mr.
Carter further explained that the City is following its debt management plan even with the issuance of
these bonds and the I% general levy increase.
Motion by Czmowski, second by Christensen, to approve providing for the sale of $2,275,000 general
obligation improvement bonds, Series 2012C, adopting Resolution NO. 14054. Motion carried
unanimously.
(b) CONSIDERATION FOR APPROVAL OF 2012 CITY RECOGNITION EVENT
Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that historically a
recognition event has been held in the fall to recognize the accomplishments of both City employees and the
volunteers who serve on the various boards and committees of the City. The format for the event is
recommended to be the same as previous years with a social time including two beverage tickets, dinner and
a short program.
Motion by Yost, second by Cook, to set 2012 City recognition event for October 25, 2012, at 5:30 p.m. at
the Event Center. Motion carried unanimously.
12. GOVERNANCE (Purpose: to assess past organizational performance, developpolicy that guides the organization and
Counc a ge the logistics of the Council. May include monitoring reports, policy development and governance
process items)
(a) PLANNING, ZONING AND BUILDING DEPARTMENT MONTHLY REPORT FOR AUGUST 2012
(b) CITY OF HUTCHINSON FINANCIAL REPORT FOR AUGUST 2012
(c) CITY OF HUTCHINSON INVESTMENT REPORT FOR AUGUST 2012
(d) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST
21, 2012
13. MISCELLANEOUS
Mary Christensen — Council Member Christensen noted that she and Bill Arndt met with the senior citizens
who use the Senior Center to brainstorm ways to open the Center on Fridays and how to fund that. The
seniors they met with will bring ideas to the Senior Advisory Board and will continue to discuss options.
Bill Arndt — Council Member Arndt expressed that a "No Parking" zone needs to be extended near the Hwy
ED] J
CITY COUNCIL MINUTES — SEPTEMBER 25, 2012
15 retaining wall construction project on the east side of Hwy 15
Council Member Arndt asked about the blue lights installed on the stop lights. Kent Exner, City Engineer,
noted that the blue lights indicate to law enforcement when a semaphore has turned red on the cross street.
The blue light illuminates when the stoplight has turned red.
Eric Yost — Council Member Yost asked about the chip seal coat on North High Drive. Kent Exner
explained that the County administers the coating a bit different than the City, however this type of coating
does work well in cooler weather.
Council Member Yost asked if there was an update on the mural that is proposed to go on the comer of Main
Street and Franklin Street. Mayor Cook noted that the organizer is still working on it but there are no
immediate plans for installation.
Jeremy Carter — Mr. Carter reminded the Council that a workshop is set before the next Council meeting on
enterprise funds.
Mr. Carter asked the Council if they would like to discuss the Burns Manor property in a workshop setting.
The Council must make a decision by the end of October whether or not they would like to exercise their
right of first refusal due to a current offer the hospital has received on the property.
Motion by Arndt, second by Christensen, to change the topic of the workshop on October 9, 2012, to discuss
the Bums Manor property. Motion carried unanimously.
Motion by Czmowski, second by Cook, to reset the water /sewer /stormwater enterprise fund budget
workshop to November 13, 2012, at 4:00 p.m. Motion carried unanimously.
Kent Exner — Mr. Exner provided an update on current projects — South Park Water Tower; 5`h Avenue
Retaining Wall; 51h Avenue NW; Les Kouba Parkway and the Depot site.
Mayor Cook — Mayor Cook noted he received information on being a member of a performance metrics
group to give the City an opportunity to utilize performance measurements of other entities. Jeremy Carter
noted that staff is still working on incorporating performance measurements into their departments.
Mayor Cook mentioned the Hospital Board approved documents to allow for a HAHC/HMC integration.
With that, the Council will consider a lease amendment at the next Council meeting with a town hall
meeting being held October 16, 2012, following the Planning Commission meeting and final approval of the
lease amendment on October 23, 2012.
14. ADJOURN
Motion by Arndt, second by Cook, to adjourn at 6:40 p.m. Motion carried unanimously.
4 cc L)
TO: Mayor & City Council
FROM: Kent Exner, DPW /City Engineer
RE: Consideration of Improvement Project Change Orders
DATE: October 9, 2012
As construction has proceeded on the below listed projects there has been additional work, project scope revisions,
and/or construction staging changes. The items specified below have been identified and deemed necessary to
satisfactorily complete the projects. The following Change Orders are proposed as noted:
o Change Order No. I — Letting No. 5/Project No. 12 -06 — THI5 Retaining Wall
This Change Order addresses revisions to the specified street light poles and addition of copper water service
materials. The additional work does not affect the completion date on the project. This additional work results
in a decrease to the contract in the amount of $345.00
o Change Order No. 2 — Letting No. 3/1'roject No. 12 -04 — 2012 Pavement Management Program
This Change Order addresses incentive for bituminous pavement density as outlined within Mn/DOT
specification 1360. This additional cost results in an increase to the contract in the amount of$773.57.
We recommend that the attached project Change Orders be approved.
cc: Jeremy Caner, City Administrator
I ice)
HUTCHMSON CITY CENTER
ENGINEERING DEPARTMENT
111 HASSAN STREET SE -, HUTCINSON" MN 55380
PHONE, 320- 234.4209 FAX: 320- 234.4240
LETTING NO.5 - PROJECT NO. 12 -06
Dated: 10101/2012 CHANGE ORDER NO. 1 Page 1 of 1
Protect :
Location
TH1 S Retainain Wall - TH15 South between 4th Ave & 5th Ave
CONTRACTOR: R & R Excavating, 1149 Hwy 22 South, Hutchinson MN 65360
Contreet
Amount•
$293,275.70
Completion Date: 11/02/2012
Description
of Change:
This Change Order addresses a change in the poles in the lighting system and the addition of 3 water services. These changes do
not affect the completion date on the project. This additional work results in an decrease to the contrail in the amount of $345.00.
Item.No.
Spsc. Ref.
Item Name
Unit
Quantity
Unk Prize.
".. Amount
INCREASE ITEMS:
66
2504.603
FURNISH & INSTALL 314" - 1" COPPER WATER SERVICE PIPE
INCLUDING FITTINGS
LF
45
$45.00
$2,025.0
TOTAL INCREASE ITEMS
$2,026.0
DECREASE ITEMS:
67
2545.501
LIGHTING SYSTEM - CHANGEOUT 3 CAST IRON POLES WITH 3 CAST
ALUMINUM POLES
EA
1 3
($790.00)
($2,370.00)
TOTAL DECREASE ITEMS
4345.0
NET DECREASE
($346:00
In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of - 345.00 (add)Rdeduetj.
n extension of -- days shall be allowed for completion.
ORIGINAL
CONTRACT AMOUNT
$293,275.70
PREVIOUS ADDITIONS/DEDUCTIONS
$0.00
THIS ADDITION ADDITION/DEDUCT" TOTAL
($345.00) (292,930.70
pproved:
City of Hutchinson - Mayor: Steven W Cook
Dated: 10/09/2012
Approved:
City of Hutchinson - City Administrator: Jeremy J Carter
Dated: 10/09/2012
rJ
STATE AID FOR LOCAL TRANSPORTATION
CHANGE ORDER
City/County of City of Hutchinson
Change Order No. 1
Nov 2007
FEDERAL PROJECT NO.
STATE PROJECT NO.
SAP 430489 -000
LOCAL PROJECT NO.
L5P12 -05 I
CONTRACT NO.
1_5P12 -05
CONTRACTOR NAME AND ADDRESS
LOCATION OF WORK
R & R Excavating
TH15 South Between 4th Ave & 5th Ave
TOTAL CHANGE ORDER AMOUNT
1149 Hwy 22 South
Hutchinson, MN 55350
($345.00)
In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following
provisions.
The Engineer has determined that 3 Cast Aluminum Poles will be used in place of the 3 Cast Iron Poles in the Lighting System (2545.501). Both
poles are identical in design, size and color; the only difference is the material (aluminum instead of cast iron). This change results in a deduction
in the Lighting System of $790.00 per pole for a total deduction of $2,370.00.
The Engineer has determined that 3 Water Services are needed at an estimated 15 LF for each water service for a total of 45 LF. Estimated
quantity of 15 LF. Add line item for V or 3X' Copper Service Pipe, including all fittings and labor needed to connect to existing services where
curb stops are being replaced. This change results in an increase to the contract in the amount of $2,025.00.
COST BREAKDOWN
Item No.
Item
Unit
Unit
Price
Quantity
Amount
Funding Category No. 001
2504.6031
FURNISH & INSTALL 3/4" - 1" COPPER WATER SERVICE PIPE INCLUDING FITTINGS
1 LF
$45.00
45
$2,025.00
2545.501
1 LIGHTING SYSTEM - CHANGEOUT 3 CAST IRON POLES WITH 3 CAST ALUMINUM
POLES
EA
1 ($790.00)
3
($2,370.00)
Funding Category No. 001 Total:
($345.00)
Change Order No. 1 Total:
' Funding category is requires for teaerai projects.
Due to this change the Contract Time:
a. [ ] Is Increased by —Working Days
[ ] Is Decreased by —Working Days
[ ] Is Increased by _ Calendar Days
[ ] Is Decreased by Calendar Days
b. [ X ] Is Not Changed
c. [ ] May be revised if work affected the controlling operation
Approved By Project Engineer: Kent Exner Approved By Contractor: R & R Excavating
Signed Signed
Date: Phone: (320) 234 -4212 Date: Phone: (320) 587 -5918
Original to Project Engineer; Copy to Contractor
Once contract has been fully executed, forward a copy to DSAE for funding review:
The State of Minnesota is not a participant in this contract; signing by the District State Aid Engineer is for FUNDING PURPOSES
ONLY. Reviewed for compliance with State and Federal Aid Rules /Policy. Eligibility does not guarantee funds will be available.
This project is eligible for: Federal Funding State Aid Funding Local funds
District State Aid Engineer: Date:
Letting No. 1/Project No. 11 -01 -SAP 133- 117 -013 -Page 1 of 1
HUTCHINSON CITYCENTEI
° ENGINEERING DEPARTMENT
111 HASSAN STREET SE HUTCINSON MN 55350
PHONE: 320-234-4209 FAX: 320-234-4240
LETTING NO. 3 - PROJECT NO. 12 -04
Dated: 10/01/2012 CHANGE ORDER NO. 2 Page l of 1
Project
Location:
Pavement Management -Various Locations
CONTRACTOR: Wm Mueller 8: Sons Inc, 831 Park Ave, P O Box 247, Hambrug MN 55339 Phone 952467 -2720
Contract
Amount:
$583,365.90
Completion Date: THIS Service Rd No. 1 by 0 811 012 01 2
Total Project Completion by 0 912812 01 2
Description
of Change:
This Change Order addresses the incentive for bituminous pavement density as outlined within Mn/DOT Specification 2360. The
additional cost results in an increase to the contract in the amount of $773.57.
Item No.
Spec Ra►.
Item Name
Unit
liwntiry
X
Unit Pries
Amount
INCREASE ITEMS:
2360
TYPE SPWEA240C WEARING COURSE MIXTURE - STREET (1 112"
DEPTH)
SY
14609
$6.20
63
LIFTS) - LOT 8 - DENSITY INCENTIVE PER SPECI - 1.5" LIFT (3% of
$6.20)
SY
4159
3%
$0.1860
$773.5
TOTAL INCREASE ITEMS
$773.5
DECREASE ITEMS:
TOTAL DECREASE ITEMS
$773.5
NET INCREASE
$773.57
In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of 773.57 (add)1(deduet).
n extension of - -- days shall be allowed for completion.
ORIGINAL PREVIOUS ADDITIONS {DEDUCTIONS THIS ADDITIONIOSDUCTION
CONTRACT AMOUNT
TOTAL
$583,365.90
$5,520.00
$773.57
$589,659.47
Approved:
Approved:
Contractor - Wm Mueller S Sons Inc
Dated:
City of Hutchinson - Mayor: Steven W Cook
Dated: 10/09/2012
Approved:
Approved:
City of Hutchinson - City Engineer: Kent Exner
Dated:
City of Hutchinson - City Administrator: Jeremy J Carter
I Dated: 1 0/0 912 01 2
PERMANENT ACCESS AND SIGN EASEMENT
This indenture made and entered into this _ day of 2012, by and between the City of
Hutchinson, Minnesota, hereinafter ( "Grantors "), and the City of Hutchinson, a Minnesota municipal corporation,
hereinafter ( "Grantee ").
Now therefore, for good and valuable consideration, which both parties acknowledge to be sufficient, Grantors hereby
grant a permanent easement for access and sign purposes over, under and across that part of the Southwest Quarter
of the Southeast Quarter of Section 30, Township 117 North, Range 29 West, McLeod County, Minnesota, described
as follows:
Commencing at the southeast corner of said Lot 12; thence westerly, along the south line of said Lot 12 a distance of
1138.40 feet; thence northerly, deflecting to the right 90 degrees 00 minutes 00 seconds 293.00 feet to the point of
beginning of the easement to be described; thence westerly, parallel with said south line of Lot 12 a distance of 91.25
feet to the intersection with a line, parallel with and a distant 20 feet easterly of, the easterly right of way line of State
Highway No. 15; thence northerly, along said parallel line 145.00 feet; thence easterly, parallel with said south line of
Lot 12 a distance of 20.156 feet; thence southerly, parallel with said easterly right of way line 84.55 feet to the
intersection with the north line of the South 353.00 feet of said Lot 12; thence easterly, along said north line of the
South 353.00 feet a distance of 63.74 feet to the intersection with a line perpendicular to said south line of Lot 12,
drawn from the point of beginning; thence southerly, along said perpendicular line 60.00 feet to the point of beginning.
(see attached 'Exhibit A).
This easement shall be binding upon the successors, heirs and assigns of the parties in perpetuity.
The Grantee shall have at any time the right to enter the described easement area to construct, operate and maintain
all sign improvements and appurtenances upon said permanent easement. The granting of this easement shall
include the right to construct an adequate access to the sign facility as the Grantee deems necessary. The Grantee
shall be responsible for the maintenance of the easement area. The Grantors shall have the right to utilize the
easement area in a manner that does not adversely impact the functioning of or access to the sign facility.
In witness whereof, said Grantors here unto have set their hands to this instrument on the day and year first above
written.
GRANTORS: CITY OF HUTCHINSON
By:
Jeremy J. Carter, City Administrator
STATE OF MINNESOTA }
)as
COUNTY OF McLEOD }
The foregoing instrument was acknowledged before me this _ day of 2012, by Jeremy J. Carter,
City Administrator for the City of Hutchinson, a Minnesota Municipal Corporation.
SIGNATURE OF PERSON TAKING ACKNOWLEDGEMENT
This document was drafted by:
Kent Exner
Hutchinson City Engineer
111 Hassan St SE
Hutchinson MN 55350
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ACCESS & SIGN EASEMENT EXHIBIT
FOR THE CITY OF HUTCHINSON
DESCRIPTION
M eaaeman for KcnM and sign purpose. over and across Mat part of Lot 12 of the
AUDITOR'S PLAT OF THE SOUTH HALF OF SECTION 30 AND THE NORTH HY OF SECTION 31,
TOWt6HIP ''7 NORTH, RONOE 29 WEST, McLaud Cleary, Minnesota, descrWas as ll
Con Ong a IM MouMaaat caner of said Lai 12: sharks Yeataft along the south lee sad
Lot 12 o dbtenca of 1138.90 year thence northern, deflKting to the right SO degrees 00
Moutas 00 secands 293,00 Net la the point of beginning of the comment to he desaloe2
thonee wnarlY. parallel wfth seat Mouth Ilce of Lot 12 a distance of 9125 hat to the
mws flon with a line, preSN wish am a distant 20 HK fastery of, the eastern right of MY
IM of Stott HpMaY Nut 15: Thence northerly, dent, sass prase] Ilan 145.00 her, Ihii
.at". pralM with sass Gouth firs of Las 12 a distance of 20.15 fiat: Tharp. asuth",
parallel with Mass aasterly right of way line 84.55 fast m the Ydarst n with the north Into of
the South 353.00 feet of mss Lot 12', tMKe Kerry. sent, Mae north IN of the South
353.00 Mt a distance of 53.74 feet to the iarsecilon with a ins perpaMiculr to sale Mouth
BM of Lot 12, drawn gran the pant 0 begiMng: Meng southerly, along Gad perpasdieuer line
80,00 fast to the posts 0 beginning.
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P 0 Box 35
Hutchinson, Minnesota 55350
Phone (320) 587 -4789
For (3EIA 587 -3752
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P 0 Box 35
Hutchinson, Minnesota 55350
Phone (320) 587 -4789
For (3EIA 587 -3752
JOB NO 12147 BK
TO: Mayor & City Council
FROM: Kent Exner, DPW /City Engineer
RE: Consideration of Activation of Deferred Assessment — SA5082A
DATE: October 9, 2012
As per the deferral guidelines for SA -5059, the deferred assessments on the Jefferson Street Project have been deferred
with interest accruing for ten years (2003 thru 2012), with activation in 2012 for certification to taxes for the years 2013
thru 2022. The deferral period will expire at the end of 2012. Interest has been calculated on the attached Assessment
Roll to be activated as SA- 5059H.
We recommend that the attached Resolution and activation of deferred assessment be approved.
cc: Jeremy Carter, City Administrator
r) La)
RESOLUTION NO. 14055
RESOLUTION ACTIVATING DEFERRED ASSESSMENTS
ASSESSMENT ROLL NO. SA-5059H
(Activation of Deferred Assessment on SA -5059A & SA- 50598)
WHEREAS, the following properties have assessments in deferred status:
Interest Original Accrued Activation
SA Roll City PID County PID Rate Assess. Interest Amount
SA -5059A
07- 116 -29 -07 -0910
23.221.0010
4.38%
$15,223.00
$6,778.80
$22,001.80
SA -5059A
07- 116 -29 -07 -0920
23.219.0020
4.38%
$10,082.00
$4,489.51
$14,571.51
SA -5059A
07- 116 -29 -07 -0952
23.230.0153
4.38%
$5,141.00
$2,289.29
$ 7,430.29
SA -5059A
07- 116 -29 -07 -0980
23.230.0170
4.38%
$10,082.00
$2,281.56
$12,363.56
SA -5059A
07- 116 -29 -09 -0010
23.219.0050
4.38%
$15,223.00
$6,778.80
$22,001.80
SA -5059A
07- 116 -29 -08 -0050
23.230.0190
4.38%
$10,082.00
$4,489.51
$14,571.51
AND WHEREAS, the deferral period will expire at the end of 2012,
AND WHEREAS, the City proposes to activate said assessment, with payments over a ten (10) year period at the
original interest rate,
AND WHEREAS, the following property's deferral period will expire at the end of 2012, but this property also has a
Senior Citizen Deferral and will remain in Senior Citizen Deferral until such time as the property is sold:
Interest Original
SA Roll City PID County PID Rate Assess.
SA -5059A 07- 116 -29 -08 -0050 23.230.0190 4.38% $10,082.00 — Senior Citizen Deferral
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA:
1. Such proposed activation of said assessments is hereby approved, and shall constitute a special assessment
against the lands named therein, and each tract of land therein included is hereby found to be benefited bythe proposed
improvement in the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period often (10 years, the first
of the installments to be payable on or before the first Monday in January, 2013 and shall bear interest at the per annum
rate shown above as set down by the adoption of this resolution. To the first installment shall be added interest on the
entire assessment from November 1, 2012, until the 31 st day of December 2013. To each subsequent installment when
due shall be added interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County
Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City
Administrator, except that no interest shall be charged if the entire assessment is paid by the 15th day of November,
2012; and owner may, at any time thereafter, pay to the City Administrator the entire amount of the assessment
remaining unpaid, with interest accrued to the 31 at day of December, of the year in which such payment is made. Such
payment must be made before November 15, or interest will be charged through December 31, of the next succeeding
year.
4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same
manner as other municipal taxes.
Adopted by the Council this 9th day of October, 2012.
Mayor, Steven W Cook
City Administrator, Jeremy J Carter
COMPBEDBY: PVANDFRVEEN
ACTIVATION OF ASSESSMENT ROLL NO. S059H
(For�rl9 Affe RW NO. 5059A &5059B)
LETTING NO. 9MROJECT NO. 0L18
JEFFERSON ST SE - CENTURY AVE SE TO"'SOF JEFFERSON CT, INCLUDING JEFFERSON CT
BY CONSTRUCTION OF STORM SEWER. TRUNK /LATERAL SANITARY SEWER& SERVICES,
TRUNK /LATERAL WATERMAIN& SERVICES, GRADING, GRAVEL BASE, CONCRETE CURB& GUTTER,
BITUMINOUS BASE BITUMINOUS SURFACING BIKE TRAIL, STREET LIGHTS &APPURTENANCES
$2,100.00
T DRAINAGE COSTIUNIT
COMPUTPOOY: PVANOFRVEEN
$4,957.00
R COST "GT
c CNED BY: NFLIER
$3,225.00
R COST/UNIT
RAC
NUMBFROFYFARe: 10
$1, 900.00
COST (SAC S1,080.00IWAC SFIX00)
tlOEREST Mn: ANN
ISTHEARING: 07 /2 7002
ADOPTED: O9fu 2
2NDHEARING:09 /12RA02
RFAOOPTED: 0>R4&OM
ACTIVATED: IAro9R012
AGGWNT
Itl
CffYPONC,
COYSf1YA
M0.
NANEAADDRFY
aPWRH1YOWIYR
MDPERlYA001K8B
l&4ALOE000A0N
ADtl110M O11MR1NPYGM
B1RFFf
DNAMWE
uW18
DTRFET
amNA0E
YNF
SEWER
UIIR
SEVIFR
ABERiYEKT
WATER
BIATER
OAGWR.0
ACINAiFO
900EUL
AWFJWEIR
MEREST
RGIRWL
BEWYI I
O
OERlBL1L
TOTAL
AOTAIATED
W-Hl
139U. St SE
Inll Rlmk1
2
01- 11629 -07 -0910
23.2210010
HuW MN 553M
1390 eH 00 St SE
Peanoo &vas
0.50
$ 050.00
150
S]43S50
L50
UU].50
$1,900.00
A0
MTIB.80
Forest & l b� Crum
325 cfEssa. C, SE
l l2 Blrc I
IS
07- 11629 -0)0920
21.2190020
Huo-Amm MN 553M
33 effcnon C, SE
Haa Su I... EA.,
80.00
I.N.
y195'I.00
L00
U .0D
$L900.00
00
(4489.51
$ ]L5S
Own &mw Wn I
AT-, - 14242s168.39'th LR41
2115th Ave NW
IW63'Nofde SO LumafIut4 &3307'SOftlre
3
07- 11629 -07 -0952
23.2300153
HuRLuum MN 55350
1325 eNenm St SE
NWCO tof L4 APSecea0074116N -R29W
050
f 050.00
050
S2,478.50
0.50
S 12.50
NEW
9.29
h .H
Ieo�uN & Paaair liotld
1333eH MSE
Thu ,MrWJ have I- ativa,N ut 207v hoo s/v oc-i. "ll,e,efo,e ut
rem`
throw 2007 ont.
6
07- 11E29Ut -119E0
23130.01]0
Hacl s. AIN 55350
1345 elTenon Sr SE
Pan41 -5 Au PlnS.-07- T116N "R29W'
saw
L00
(495].00
L00
m=.00
$ 900.00
L56
f K
&1-Fl tl,
310 cB mCt SE
Li5131 -kl
11
07- i1E29- U9 --WIU
231190050
lluaAmwn MN 553%
310 dS.-C,SF.
Ha,umie Sind Pearson ESnaa
050
f OSRW
L50
f]4J5.50
L!I0
f1U].50
$4900.00
RO
(6118.80
FLm G Tda
1373 jlflR S, $e
W.NT fl., 6 Nnf SW. 2A? Nnf5W. 212'
'11115 PARCEL W 11,
REMAIN IN SR CITIZEN
OF FF.RRAL.
18
0]11629-0 &0050
23.2300190
HuafuOSOn MN 5535()
137)eHers00S,E
in SWC,m,S ..WTIMN -UVW .511ACre
(0.00
L00
N951A0
L00
U .00
(900.00
$1008200
SOAO
mrALAcm,&TwA55cs mmNT -s&-mm
wxum
.96
nEw.x
G:IASSESSMENT ROLLSXROLLSU012XACTIVATED ASSESSMENTS\5059H \C-23-ASSESSMENT ROLL AR -5059H L902 -18- ACTIVATION Page
R55CKREG LOG22001V0
CITY OF HUTCHINSON
Council Check Register
Check Dates 9/26 -10/9/12
10/4/2012
Check #
Ck Date
Amount Vendor/ Explanation
Account Description
172562
9/26/2012
2,160.00 CROW RIVER OFFICIALS ASSN
OTHER CONTRACTUAL
172563
9/26/2012
102.30 CROW RIVER PRESS INC
OPERATING SUPPLIES
172564
9/26/2012
1,780.00 HOLT PETERSON CHARTER BUS
OTHER CONTRACTUAL
172565
10/2/2012
1,445.92 USPS- HASLER
POSTAGE
172566
10/9/2012
306.25 ACE HARDWARE
REPAIR & MAINTENANCE SUPPLIES
172567
10/9/2012
358.07 AEM MECHANICAL SERVICES, INC
REPAIR & MAINTENANCE SUPPLIES
172568
10/9/2012
5.00 AMBERG, KRISTAL
RECREATION ACTIVITY FEES
172569
10/9/2012
155.60 AMERICAN BOTTLING CO
COST OF MIX & SOFT DRINKS
172570
10/9/2012
90.85 AMERICAN FAMILY INS CO.
ACCRUED LIFE INSURANCE
172571
10/9/2012
68.76 AMERIPRIDE SERVICES
CONTRACT REPAIR & MAINTENANCE
172572
10/9/2012
2,250.79 AMS COATING SYSTEMS INC.
SIGNS & STRIPPING MATERIALS
172573
10/9/2012
553.00 ANIMAL MEDICAL CENTER ON CROW
OTHER CONTRACTUAL
172574
10/9/2012
364.42 ARCTIC GLACIER PREMIUM ICE INC
COST OF MIX & SOFT DRINKS
172575
10/9/2012
700.50 ARNESON DISTRIBUTING CO
COST OF SALES -BEER
172576
10/9/2012
400.00 ATOMIC TARP LLC
CONTRACT REPAIR & MAINTENANCE
172577
10/9/2012
16.02 AUTO VALUE - GLENCOE
EQUIPMENT PARTS
172578
10/9/2012
2,534.59 AUTOMATIC SYSTEMS CO
PROFESSIONAL SERVICES
172579
10/9/2012
45.00 AWWA- MINNESOTA SECTION
TRAVEL SCHOOL CONFERENCE
172580
10/9/2012
1,057.51 B & C PLUMBING & HEATING INC
REPAIR & MAINTENANCE SUPPLIES
172581
10/9/2012
7,048.19 BARGEN INC
CONTRACT REPAIR & MAINTENANCE
172582
10/9/2012
200.80 BERNICK'S
COST OF MIX & SOFT DRINKS
172583
10/9/2012
136.92 BFG SUPPLY CO
ADVERTISING
172584
10/9/2012
11,256.00 BIOGROUP USA, INC
RECEIVED NOT VOUCHERED
172585
10/9/2012
300.00 BOVINE BASICS
FREIGHT- IN
172586
10/9/2012
96.83 BRANDON TIRE CO
AUTOMOTIVE REPAIR
172587
10/9/2012
5,863.75 BRAUN INTERTEC CORP
PROFESSIONAL SERVICES
172588
10/9/2012
286.28 BUSHMAN, RAQUEL
OTHER CONTRACTUAL
172589
10/9/2012
1,384.45 BUSINESSWARE SOLUTIONS
CONTRACT REPAIR & MAINTENANCE
—�
172590
10/9/2012
63,926.45 C & L DISTRIBUTING
COST OF SALES -BEER
172591
10/9/2012
239.60
CALIFORNIA CONTRACTORS SUPPLIE
REPAIR & MAINTENANCE SUPPLIES
172592
10/9/2012
587.81
CLARKE MOSQUITO CONTROL PRODUC
OTHER CONTRACTUAL
172593
10/9/2012
303,765.35
CLASSIC PROTECTIVE COATINGS IN
IMPROV OTHER THAN BLDGS
172594
10/9/2012
34.38
COMDATA CORPORATION
FOOD PRODUCTS - CONCESSION
172595
10/9/2012
57.71
CREEKSIDE SOILS
OPERATING SUPPLIES
172596
10/9/2012
343.01
CROW RIVER AUTO & TRUCK REPAIR
AUTOMOTIVE REPAIR
172597
10/9/2012
104.81
CROW RIVER GLASS & SIGNS
RECEIVED NOT VOUCHERED
172598
10/9/2012
2,232.00
CROW RIVER SIGNS
OPERATING SUPPLIES
172599
10/9/2012
77.09
CURTIS 1000 INC - MN
PRINTING & PUBLISHING
172600
10/9/2012
6,094.60
DAY DISTRIBUTING
COST OF SALES -BEER
172601
10/9/2012
540.00
DEPT OF EMPLOYMENT & ECONOMIC
DUES & SUBSCRIPTIONS
172602
10/9/2012
51.34
DROP -N -GO SHIPPING, INC
POSTAGE
172603
10/9/2012
35.27
DUNDEE
MISCELLANEOUS
172604
10/9/2012
271.19
DVS RENEWAL
SMALLTOOLS
172605
10/9/2012
131.89
DYNA SYSTEMS
EQUIPMENT PARTS
172606
10/9/2012
1,168.94
E2 ELECTRICAL SERVICES INC
CONTRACT REPAIR & MAINTENANCE
172607
10/9/2012
112.85
ECONO FOODS
MEETINGS
172608
10/9/2012
341.25
EHLERS & ASSOCIATES INC
PROFESSIONAL SERVICES
172609
10/9/2012
192.00
ELECTRO WATCHMAN
CONTRACT REPAIR & MAINTENANCE
172610
10/9/2012
5,787.28
ESS BROTHERS & SONS
CONTRACT REPAIR & MAINTENANCE
172611
10/9/2012
60.00
EXTREME BEVERAGE LLC
COST OF MIX & SOFT DRINKS
172612
10/9/2012
379.40
FARM -RITE EQUIPMENT
RECEIVED NOT VOUCHERED
172613
10/9/2012
134.90
FASTENAL COMPANY
REPAIR & MAINTENANCE SUPPLIES
172614
10/9/2012
2,639.81
FENSKE'S STUMP REMOVAL
CONTRACT REPAIR & MAINTENANCE
172615
10/9/2012
370.00
FIRE SAFETY USA, INC
SMALL TOOLS
172616
10/9/2012
382.49
FISHER SCIENTIFIC
OPERATING SUPPLIES
172617
10/9/2012
1,089.00
FOTH INFRASTRUCTURE & ENV
PROFESSIONAL SERVICES
172618
10/9/2012
103.08
G & K SERVICES
OPERATING SUPPLIES
172619
10/9/2012
9,966.60
GARICK CORPORATION
RECEIVED NOT VOUCHERED
172620
10/9/2012
438.75
GAVIN, OLSON & WINTERS, LTD
PROFESSIONAL SERVICES
172621
10/9/2012
140.00
GEB ELECTRICAL INC
BUILDING REPAIRS
172622
10/9/2012
805.73
GLACIAL RIDGE WINERY
COST OF SALES -WINE
172623
10/9/2012
552.65
H.A.R.T.
ACCRUED DEFERRED COMP
172624
10/9/2012
127.50
HANSEN DEMOLITION LANDFILL
UTILITIES
r�
172625
10/9/2012
890.00 HART'S AUTO SUPPLY
AUTOMOTIVE REPAIR
172626
10/9/2012
25.77 HENRICKSEN
REPAIR & MAINTENANCE SUPPLIES
172627
10/9/2012
685.81 HILLYARD / HUTCHINSON
OPERATING SUPPLIES
172628
10/9/2012
116,239.89 HJERPE CONTRACTING
IMPROV OTHER THAN BLDGS
172629
10/9/2012
691.75 HJERPE CONTRACTING
CONTRACT REPAIR & MAINTENANCE
172630
10/9/2012
400.00 HRA
HRATRANSFER
172631
10/9/2012
75.82 HUTCH CAFE
OPERATING SUPPLIES
172632
10/9/2012
8,500.53 HUTCHINSON CONVENTION & VISITO
LODGING TAX REIMBURSEMENT
172633
10/9/2012
157,023.00 HUTCHINSON FIRE DEPT RELIEF AS
FIRE RELIEF STATE CONTI
172634
10/9/2012
45.00 HUTCHINSON SELF STORAGE
PROFESSIONAL SERVICES
172635
10/9/2012
854.53 HUTCHINSON SENIOR ADVISORY BOA
OTHER CONTRACTUAL
172636
10/9/2012
317.57 HUTCHINSON WHOLESALE
OPERATING SUPPLIES
172637
10/9/2012
1,080.40 HUTCHINSON, CITY OF
UTILITIES
172638
10/9/2012
1,319.32 J & R COMPLETE AUTO & RADIATO
CENTRAL GARAGE REPAIR
172639
10/9/2012
1,389.00 JACK'S UNIFORMS & EQUIPMENT
MACHINERY & EQUIPMENT
172640
10/9/2012
28.13 JACOBS
POSTAGE
172641
10/9/2012
323.01 JEFF MEEHAN SALES INC.
ACCRUED COMMISSIONS PAYABLE
172642
10/9/2012
544.45 1J TAYLOR DIST OF MN
COST OF SALES -BEER
172643
10/9/2012
25,541.33 JOHNSON BROTHERS LIQUOR CO.
COST OF SALES -WINE
172644
10/9/2012
16,509.66 JUUL CONTRACTING CO
CONTRACT REPAIR & MAINTENANCE
172645
10/9/2012
128.85 KAESER COMPRESSORS
METERS & METER PARTS
172646
10/9/2012
53.13 KASHUBA, ROBIN
OPERATING SUPPLIES
172647
10/9/2012
508.00 KDUZ KARP RADIO
ADVERTISING
172648
10/9/2012
42.99 KLOSS, TOM
TRAVEL SCHOOL CONFERENCE
172649
10/9/2012
555.22 KNIFE RIVER
REPAIR & MAINTENANCE SUPPLIES
172650
10/9/2012
13.25 L & P SUPPLY CO
CENTRAL GARAGE REPAIR
172651
10/9/2012
2,229.18 LAND'S END BUSINESS OUTFITTER
UNIFORMS & PERSONAL EQUIP
172652
10/9/2012
449.00 LINCOLN MARKETING MN
PRINTING & PUBLISHING
172653
10/9/2012
140.00 LITE ELECTRIC INC
COMMUNICATION MAINTENANCE
172654
10/9/2012
32,492.52 LOCHER BROTHERS INC
COST OF SALES -BEER
172655
10/9/2012
25,590.99 LOGIS
SMALLTOOLS
172656
10/9/2012
78.36 LTP ENTERPRISES
CENTRAL GARAGE REPAIR
172657
10/9/2012
3,457.46 LYNDE & MCLEOD INC
RECEIVED NOT VOUCHERED
172658
10/9/2012
150.00 MADINA HOSPITALITY GROUP LLC
MEETINGS
172659
10/9/2012
112.74 MCLEOD COOP POWER ASSN
UTILITIES
172660
10/9/2012
61,079.00 MCLEOD COUNTY AUDITOR - TREASURE
PROFESSIONAL SERVICES
172661
10/9/2012
738.00 MCLEOD COUNTY TREASURER
CONDITIONAL USE PERMITS
172662
10/9/2012
301.93 MENARDS HUTCHINSON
REPAIR & MAINTENANCE SUPPLIES
172663
10/9/2012
77.41 MES - MIDAM
CONTRACT REPAIR & MAINTENANCE
172664
10/9/2012
73.05 METRO ATHLETIC SUPPLY INC
OPERATING SUPPLIES
172665
10/9/2012
117.71 MILLNER HERITAGE VINEYARD & WI
COST OF SALES -WINE
172666
10/9/2012
85.00 MINI BIFF
RENTALS
172667
10/9/2012
50.00 MINNESOTA DEPT OF HEALTH
PERMITS
172668
10/9/2012
624.86 MINNESOTA DEPT OF TRANSPORTATI
PROFESSIONAL SERVICES
172669
10/9/2012
535.40 MINNESOTA VALLEY TESTING LAB
OTHER CONTRACTUAL
172670
10/9/2012
7,657.00 MISCAVAGE, JOSEPH
HOUSING REHAB LOANS
172671
10/9/2012
800.92 NAGY, RICHARD
TRAVEL SCHOOL CONFERENCE
172672
10/9/2012
432.00 NCPERS LIFE INS.
ACCRUED LIFE INSURANCE
172673
10/9/2012
168.84 NORTH CENTRAL LABORATORIES
OPERATING SUPPLIES
172674
10/9/2012
55.22 NORTHERN SAFETY & INDUSTRIAL
RECEIVED NOT VOUCHERED
172675
10/9/2012
155.02 NORTHERN STATES SUPPLY INC
EQUIPMENT PARTS
172676
10/9/2012
4,161.74 NU- TELECOM
COMMUNICATIONS
172677
10/9/2012
98.41 OFFICE OF ENTERPRISE TECHNOLOG
COMMUNICATIONS
172678
10/9/2012
125.10 OLSEN CHAIN & CABLE CO.
EQUIPMENT PARTS
172679
10/9/2012
885.37 OLSON'S LOCKSMITH
REPAIR & MAINTENANCE SUPPLIES
172680
10/9/2012
16,147.44 PHILLIPS WINE & SPIRITS
COST OF SALES - LIQUOR
172681
10/9/2012
226.00 PIONEER
SIGNS & STRIPPING MATERIALS
172682
10/9/2012
3,436.00 PONATH CONSTRUCTION
COMMUNICATION MAINTENANCE
172683
10/9/2012
22.84 POSITIVE ID INC
DUE FROM UTILITIES
172684
10/9/2012
1,500.00 POSTMASTER
POSTAGE
172685
10/9/2012
1,467.39 PRO CARE SERVICES INC
CONTRACT REPAIR & MAINTENANCE
172686
10/9/2012
53.76 PRO -BUILD
REPAIR & MAINTENANCE SUPPLIES
172687
10/9/2012
84.36 QUADE ELECTRIC
OPERATING SUPPLIES
172688
10/9/2012
1,606.88 QUALITY FLOW SYSTEMS
CONTRACT REPAIR & MAINTENANCE
172689
10/9/2012
38.25 QUILL CORP
OFFICE SUPPLIES
172690
10/9/2012
1,246.40 R.J.L. TRANSFER
FREIGHT
172691
10/9/2012
15,244.24 REINER ENTERPRISES, INC
FREIGHT
172692
10/9/2012
404.03 RELIABLE OFFICE SUPPLIES
OFFICE SUPPLIES
172693 10/9/2012
172694 10/9/2012
172695 10/9/2012
172696 10/9/2012
172697 10/9/2012
172698 10/9/2012
172699 10/9/2012
172700 10/9/2012
172701 10/9/2012
172702 10/9/2012
172703 10/9/2012
172704 10/9/2012
172705 10/9/2012
172706 10/9/2012
172707 10/9/2012
172708 10/9/2012
172709 10/9/2012
172710 10/9/2012
172711 10/9/2012
172712 10/9/2012
172713 10/9/2012
172714 10/9/2012
172715 10/9/2012
172716 10/9/2012
172717 10/9/2012
172718 10/9/2012
172719 10/9/2012
172720 10/9/2012
172721 10/9/2012
172722 10/9/2012
172723 10/9/2012
172724 10/9/2012
172725 10/9/2012
172726 10/9/2012
653.64 ROYAL TIRE
565.52 RUNNING'S SUPPLY
20.80 SCHMELING OIL CO
155.00 SCHOOL DIST # 423
7.70 SCHWARTZ, ANDREA
64.13 SCOTT'S WINDOW CLEANING SERVIC
39.49 SEBORA, MARC
29,884.49 SEH
287.98 SEPPELT, MILES
6,351.93 SKYVIEW DAIRY INC
52.37 SORENSEN'S SALES & RENTALS
12,931.02 SOUTHERN WINE & SPIRITS OF MN
2,285.55 SPRINT
797.74 STAPLES ADVANTAGE
585.00 STEARNS COUNTY COURT AD M I N ISTR
175.40 STRATEGIC EQUIPMENT
8,332.64 STREICH TRUCKING
251.48 STROBES N MORE
2,537.20 SUPERVALU INC
176.63 TCC DISTRIBUTORS INC
28.00 TOTAL FIRE PROTECTION
252.98 TOWMASTER, INC.
48.09 TWO WAY COMMUNICATIONS INC
4,328.44 U.S. WATER SERVICES
2,514.71 UNDERGROUND TECHNOLOGIES OF MN
793.55 UNIFORMS UNLIMITED
235.00 UNIVERSITY OF MINNESOTA
16,587.28 VIKING BEER
306.65 VIKING COCA COLA
CENTRAL GARAGE REPAIR
OPERATING SUPPLIES
MOTOR FUELS & LUBRICANTS
OTHER REVENUES
TRAVEL SCHOOL CONFERENCE
CONTRACT REPAIR & MAINTENANCE
TRAVEL SCHOOL CONFERENCE
PROFESSIONAL SERVICES
CAR ALLOWANCE - TRAVEL
RECEIVED NOT VOUCHERED
RENTALS
COST OF SALES-WINE
COMMUNICATIONS
REPAIR & MAINTENANCE SUPPLIES
OTHER REVENUES
OPERATING SUPPLIES
FREIGHT
REPAIR & MAINTENANCE SUPPLIES
REFUNDS & REIMBURSEMENTS
POSTAGE
SAFETY SUPPLIES
EQUIPMENT PARTS
OPERATING SUPPLIES
CHEMICALS & PRODUCTS
CONTRACT REPAIR & MAINTENANCE
OPERATING SUPPLIES
TRAVEL SCHOOL CONFERENCE
COST OF SALES -BEER
FOOD PRODUCTS - CONCESSION
1,528.25 VINOCOPIA INC
COST OF SALES -WINE
133.08 WASTE MANAGEMENT OF WI -MN
REFUSE - RECYCLING
8,632.00 WEBB PALLET
RECEIVED NOT VOUCHERED
65.00 WEISENBERGER, MIKE
RECREATION ACTIVITY FEES
243.14 WENDLANDT TREE SERVICE INC.
CONTRACT REPAIR & MAINTENANCE
172727 10/9/2012 7,066.00 WESTAFER ENTERPRISES
172728 10/9/2012 125.00 WICHTERMAN, KEN
172729 10/9/2012 1,063.75 WILLMAR CRANE SERVICE LLC
172730 10/9/2012 4,858.28 WINE COMPANY, THE
172731 10/9/2012 288.00 WINE MERCHANTS INC
172732 10/9/2012 12,402.46 WIRTZ BEVERAGE MINNESOTA
172733 10/9/2012 1,899.43 WORK CONNECTION, THE
172734 10/9/2012 114,255.46 HUTCHINSON UTILITIES
1,206,249.02 Grand Total
Payment Instrument Totals
Check Total 1,206,249.02
Total Paymer 1,206,249.02
OTHER CONTRACTUAL
SAFETY SUPPLIES
COMMUNICATION MAINTENANCE
COST OF SALES -WINE
COST OF SALES -WINE
COST OF SALES - LIQUOR
OTHER CONTRACTUAL
STREET LIGHTING UTILITIES
PAYROLL ELECTRONIC FUNDS TRANSFERS
PAYROLL DATE: 10/5/2012
Period Ending Date: 09/29/2012
$55,259.31 IRS - Withholding Tax Account
Federal Withholding
Employee /Employer FICA
Employee /Employer Medicare
$11,176.97 MN Department of Revenue
State Withholding Tax
$39,663.45 Public Employee Retirement Association
Employee /Employer PERA/DCP Contributions
$2,115.32 TASC
Employee Flex Spending Deductions
$33,655.38 TASC
Employee Contributions to Heath Savings Account
Employer Contribution to Health Savings Account
$525.00 MNDCP
Employee Contributions - Deferred Comp
$1,340.00 ING
Employee Contributions - Deferred Comp
$1,230.00 ICMA Retirement Trust
Employee Contributions - Deferred Comp
$913.79 MN Child Support System
Employee Deductions
$0.00 MSRS - Health Savings Plan
Employee Deductions to Health Savings Plan
$145,879.22 Total Electronic Funds Transfer
() (-0
To: City of Hutchinson - Honorable Mayor and City Council
From: John Rodeberg, RiverSong Steering Committee / Vice -Chair
RE: West River Park Performance Shelter/Roof for Stage
Date: Tuesday, October 9, 2012
As you may know, RiverSong and other non - profit agencies in Hutchinson worked with City Parks and
Recreation and an architect over the last year to develop a feasible plan for constructing a roof over the
recently constructed stage in Masonic West River Park for use by RiverSong, Water Carnival and other
community events. Although we started by proposing a structure that would be only a framework support
for a tarp roof, interest from the group and community led us to look at a more permanent type of
structure that would match the nearby shelter. We were not able to get the project going in time for Water
Carnival or RiverSong this year, so we have reviewed our options and are now considering utilizing a
prefab Performance Shelter available through Litchfield Landscape Elements. We have been working
with their regional representative, St. Croix Recreation Company of Stillwater (who has provided several
structures for Hutchinson parks) to develop an estimate.
We would like to talk with the City Council about the community need and desire for a performing
structure, and if interested, discuss developing a plan for funding and construction. We are currently
contacting some of the other potential partners (Relay for Life, Hutchinson Center for the Arts, Chamber
of Commerce, Jaycees, Masons, etc.) and applying for grants to help get the project going. If we are to
move ahead we likely need to construct the footings this year, while the weather allows. This would
allow for the construction of the rest of the structure in the spring prior to the Water Carnival.
One of our concerns is that RiverSong is not yet on stable financial footing. We broke even this year, but
have not been able to expand and strengthen our financial base. Some of this is due to our recent $10,000
investment into the stage and electrical improvements at West River Park. Our initial discussions with the
Jaycees also indicate that their financial situation would not allow for a significant upfront investment. It
is our hope that we can build on RiverSong's investment and our success in obtaining grants, and also get
commitments from the City and other groups so we can keep moving ahead. We propose to work
together and with other community groups to obtain grants and solicit donations. We would also like to
partner with the City to help financially support the project through loans to the non - profits, and also
consider financial and Labor support.
Attached is information we have put together for the proposed roof structure. We are proposing to utilize
a 40' by 30' Waved Beam structure with the Quad -Steel posts that would be constructed over the existing
stage structure. This will give us the option of upgrading the stage and structure in the future, while also
keeping the costs at the lower end of the options.
We are proposing that the City consider allowing the Engineering Department to complete the soils tests,
and Park /Rec. and Public Works staff help with the construction. It is our hope that this will reduce the
following cost estimate by $10,000 to $14,000. We then would propose to split the remaining costs with
the City and the community groups.
Based on discussions with St. Croix Recreation, the costs are estimated as follows:
Base kit materials
$45,750
Engineering drawings
$ 1,200
Shipping/Handling
$ 3,800
Tax
S 3,400
Labor
$17,000
Footings
$ 7,000
TOTAL
$78,150
Assuming $12,150 in labor support, this would leave $66,000 in remaining costs. We then propose to
have the community groups raise $33,000 and have the City match that funding. We would also like to
look at the funding option used by the City in the past, where community groups were allowed to make
payments for their share over 3 to 5 years. Although this will still be a significant effort by the
community groups, this is likely to make this project feasible.
As you know, we would love to continue to provide these great community events utilizing volunteer
groups. However, your support is really needed to ensure that these events can continue in the future.
We appreciate the City Council's consideration of this proposal.
Photo of 40'x 20' Waved Beam Structure (smaller than proposed) with Quad Steel Post (as proposed)
Photo of 40' x 30' Waved Beam Structure (proposed size) with optional stage/brick enhancement (not proposed)
More Information is available at:
http://Iandscapeelements.com/content/prod—shtr maestro—series_perforinance—shelters.htrn I
9 L)
CERTIFICATION OF MINUTES RELATING TO
$2,275,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2012C
Issuer: City of Hutchinson, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting, held on October 9, 2012,
at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center.
Councilmembers present:
Councilmembers absent:
Documents Attached:
Minutes of said meeting (pages): 1 through 21
RESOLUTION NO. 14056
RESOLUTION RELATING TO $2,275,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2012C; AUTHORIZING THE
ISSUANCE, AWARDING THE SALE, 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 day of
October, 2012.
(SEAL)
Jeremy Carter
City Administrator
11L)
The City Administrator reported that (__) proposals had been received by the
City prior to 12:00 Noon, Central Time today for the purchase of the Bonds in accordance with
the Terms of Proposal for the $2,275,000 General Obligation Improvement Bonds, Series 2012C
of the City as previously approved by a resolution of the City Council. The bids have been read
and tabulated, and the terms of each have been determined to be as follows:
Total Interest
Bid for Interest Cost -Net Average
Name of Bidder Principal Rates Rate
(See Attached)
� c,
Councilmember
introduced the following resolution and
moved its adoption, the reading of which was dispensed with by unanimous consent:
RESOLUTION NO. 14056
RESOLUTION RELATING TO $2,275,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2012C; AUTHORIZING THE
ISSUANCE, AWARDING THE SALE, 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 (the City),
as follows:
Section 1. Recitals.
1.01. Authorization. This Council has heretofore ordered various local
improvement projects designated as the 5th Avenue NW Improvements, 2012 Pavement
Management Program, Trunk Highway 15 Reconstruction, Water Tower Rehabilitation -South
Park and Les Kouba Parkway Improvements -Phase 2 (together, the Improvements), to be
constructed within the City under and pursuant to Minnesota Statutes, Chapter 429. This
Council has previously determined to issue and sell $2,275,000 principal amount of General
Obligation Improvement Bonds, Series 2012C, of the City (the Bonds) to defray a portion of 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
$22,750 representing interest as provided in Minnesota Statutes, Section 475.56. The remaining
costs of the Improvements will be paid from City funds and from interest earnings on proceeds
of the Bonds.
1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent
financial advisor, to assist the City in connection with the sale of the Bonds. The Bonds are
being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without
meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision
1. Pursuant to the Terms and Conditions of Sale for the Bonds, (__) sealed bids for
the purchase of the Bonds were received at or before the time specified for receipt of bids. The
bids have been opened and publicly read and considered, and the purchase price, interest rates
and net interest cost under the terms of each bid have been determined. The most favorable
proposal received is that of , of
(the Purchaser), to purchase the Bonds at a price of $ , the Bonds to bear interest
at the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the
City Administrator are hereby authorized and directed to execute a contract on the part of the
City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful
bidders shall be returned forthwith.
1 1(Q--)
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.
1.05. Consolidation of Improvements. Pursuant to Minnesota Statutes, Section 435.56,
the Improvements are hereby consolidated and joined as one project.
Section 2. Form of Bonds. The Bonds shall be prepared in substantially the following
ino "Mil
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF McLEOD
CITY OF HUTCHINSON
GENERAL OBLIGATION
IMPROVEMENT BOND, SERIES 2012C
Rate Maturity
February 1,
REGISTERED OWNER: CEDE & CO.
':1► us rZym :ufmll I
Date of
Original Issue
October 30, 2012
CUSIP
[paflm%.
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 of original hereof specified above at the annual rate specified
above computed on the basis of a 360 -day year consisting of twelve 30 -day months, payable on
February 1 and August 1 in each year, commencing August 1, 2013, 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 Bond Trust Services Corporation, in Roseville,
Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the "Bond Registrar "), or its
successor designated under the Resolution described herein.
This Bond is one of an issue in the aggregate principal amount of $2,275,000 (the
"Bonds "), all of like date and tenor except as to serial number, interest rate, redemption privilege
and maturity date, issued pursuant to a resolution adopted by the City Council on October 9,
2012 (the "Resolution ") to pay the cost of construction of local improvements in the City (the
"Improvements "), and is issued pursuant to and in frill 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 2012 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 registered bonds, in denominations of
$5,000 or any integral multiple thereof, of single maturities.
Bonds maturing in the years 2014 through 2021 are payable on their respective stated
maturity dates without option of prior payment, but Bonds having stated maturity dates in the
years 2022 and thereafter are each subject to redemption and prepayment, at the option of the
City and in whole or in part and if in part, in the maturities selected by the City and by lot,
assigned in proportion to their principal amount, within any maturity, on February 1, 2021 and
on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus
interest accrued to the date of redemption.
[Bonds maturing on February 1, 20 are subject to mandatory redemption, at a
redemption price equal to their principal amount plus interest accrued thereon to the redemption
date, without premium, on February I in each of the years shown below, in an amount equal to
the following principal amounts:
Sinking Fund Aggregate
Payment Date Principal Amount
20 $
20_ (maturity)
At least thirty days prior to the date set for redemption of any Bond, notice of the call for
redemption 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, not affected by such defect or failure. Official notice of redemption having been given as
aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date,
become due and payable at the redemption price herein specified and from and after such date
(unless the City shall default in the payment of the redemption price) such Bond or portions of
Bonds shall cease to bear interest. Upon the 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.
I � Lp-)-
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.
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 benefitted 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.
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 the Bond Registrar, or in the event
the City Finance Director is no longer acting as Bond Registrar, one of the authorized
representatives of the Bond Registrar.
IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota,
by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the
City Administrator and has caused this Bond to be dated as of the date set forth below.
City Administrator
CITY OF HUTCHINSON, MINNESOTA
Mayor
4 � � Lq)�
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
Date of Authentication:
BOND TRUST SERVICES CORPORATION,
as Bond Registrar
Authorized Representative
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
in common
TEN ENT — as tenants
by the entireties
JT TEN — as joint tenants with right
of survivorship and not
as tenants in common
UNIF TRANS MIN ACT ....... .........Custodian ..............
(Cust) (Minor)
under Uniform Transfers to Minors
Act.................... ...............................
(State)
Additional abbreviations may also be used.
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:
5
� � LP-)
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
Signature(s) must be guaranteed by an "eligible
guarantor institution" meeting the requirements
of the Bond Registrar, which requirements
include membership or participation in the
Securities Transfer Association Medalion
Program (STAMP) or such other "signature
guaranty program" as may be determined by
the Bond Registrar in addition to or in
substitution for STAMP, all in substitution
for STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
NOTICE: This signature(s) to this
assignment must correspond with the name
as it appears upon the face of the within
Bond in every particular, without alteration,
enlargement or any change whatsoever.
[End of Bond Form]
Section 3. Bond Terms, Execution and Delivery.
3.01. Maturities Interest Rates, Denominations, Payment. The City shall forthwith issue
and deliver the Bonds, which shall be denominated "General Obligation Improvement Bonds,
Series 2012C" and shall be payable primarily from the 2012 Improvement Bond Fund created in
Section 4.02 hereof. The Bonds shall bear a date of original issue as of October 30, 2012, shall
be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on
February 1 in the years and amounts set forth below, and Bonds maturing in such years and
amounts shall bear interest from the date of original issue until 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
2014
$160,000
2022
$170,000
2015
170,000
2023
175,000
2016
170,000
2024
110,000
2017
170,000
2025
115,000
2018
165,000
2026
115,000
2019
170,000
2027
120,000
2020
170,000
2028
125,000
2021 170,000
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
I I L)
by the Registrar described herein. Each Bond shall be dated by the Registrar as of the date of its
authentication.
3.02. Dates; Interest Payment Dates. Interest on the Bonds shall be payable on
February 1 and August 1 in each year, commencing August 1, 2013, 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. Interest on the Bonds will be computed on the basis
of a 360 -day year consisting of twelve 30 -day months and will be rounded pursuant to the rules
of the Municipal Securities Rulemaking Board.
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 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
iI(A)
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 (except
for an exchange upon a partial redemption of a Bond), 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 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 Bond Trust Services
Corporation in Roseville, Minnesota, as the initial Registrar. The Mayor and City Finance
Director are authorized to execute and deliver, on behalf of the City, a contract with Bond Trust
Services Corporation, 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. On or before each principal or
interest due date, without further order of this Council, the City Finance Director shall transmit
to the Registrar from the 2012 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 2014 through 2021 shall not be
subject to redemption prior to maturity, but Bonds maturing in the years 2022 and thereafter shall
each be subject to redemption and prepayment, at the option of the City, in whole or in part, and
if in part, in the maturities selected by the City and, within any maturity, in $5,000 principal
amounts selected by the Registrar by lot, on February 1, 2021 and on any date thereafter at a
price equal to the principal amount thereof to be redeemed plus interest accrued to the date of
redemption.
[(b) Bonds maturing on February 1, 20_ (the Term Bonds) shall be subject to
mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section
I I L)
3.05 at a redemption price equal to the stated principal amount thereof plus interest accrued
thereon to the redemption date, without premium. The Registrar shall select for redemption, by
lot or other manner deemed fair, on February 1 in each of the following years the following
stated principal amounts of such Bonds:
Year Amount
20 $
20-* $
*Final Maturity]
(c) The City Administrator shall cause notice of the call for redemption thereof to be
published as required by law, and at least thirty days prior to the designated redemption date,
shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders
of any Bonds to be redeemed at their addresses as they appear on the bond register described in
Section 3.03 hereof, 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. Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified and from and after such date (unless the City shall default in
the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear
interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the
owner without charge, representing the remaining principal amount outstanding.
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. In case any officer whose signature shall appear on the Bonds shall
cease to be such officer before the delivery of any Bond, such signature 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 the 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 authentication 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.
3.07. Securities Depository. (a) For purposes of this Section the following terms shall
have the following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in
whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the
records of such Participant, or such person's subrogee.
9 1 �L)
"Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee
of DTC with respect to the Bonds.
"DTC" shall mean The Depository Trust Company of New York, New York.
"Participant" shall mean any broker - dealer, bank or other financial institution for which
DTC holds Bonds as securities depository.
"Representation Letter" shall mean the Representation Letter from the City to DTC.
(b) The Bonds shall be initially issued as separately authenticated fully registered bonds,
and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon
initial issuance, the ownership of such Bonds shall be registered in the bond register in the name
of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee)
as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment
of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be
redeemed, if any, giving any notice permitted or required to be given to registered owners of
Bonds under this resolution, registering the transfer of Bonds, and for all other purposes
whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary.
Neither the Registrar nor the City shall have any responsibility or obligation to any Participant,
any person claiming a beneficial ownership interest in the Bonds under or through DTC or any
Participant, or any other person which is not shown on the bond register as being a registered
owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount with respect to
the principal of or interest on the Bonds, with respect to any notice which is permitted or
required to be given to owners of Bonds under this resolution, with respect to the selection by
DTC or any Participant of any person to receive payment in the event of a partial redemption of
the Bonds, or with respect to any consent given or other action taken by DTC as registered owner
of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC,
the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with
respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all
such payments shall be valid and effective to fully satisfy and discharge the City's obligations
with respect to the principal of and interest on the Bonds to the extent of the sum or sums so
paid. No person other than DTC shall receive an authenticated Bond for each separate stated
maturity evidencing the obligation of the City to make payments of principal and interest. Upon
delivery by DTC to the Registrar of written notice to the effect that DTC has determined to
substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new
nominee in accordance with paragraph (e) hereof.
(c) In the event the City determines that it is in the best interest of the Beneficial Owners
that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and
the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of
Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance
with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect
to the Bonds at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds will be
transferable in accordance with paragraph (e) hereof.
10 �1 �)
(d) The execution and delivery of the Representation Letter to DTC by the Mayor, in the
form presented to this Council with such changes, omissions, insertions and revisions as the
Mayor shall deem advisable, is hereby authorized, and execution of the Representation Letter by
the Mayor shall be conclusive evidence of such approval. The Representation Letter shall set
forth certain matters with respect to, among other things, notices, consents and approvals by
registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The
Registrar shall have the same rights with respect to its actions thereunder as it has with respect to
its actions under this resolution.
(e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b)
or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of
the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted
transferee in accordance with the provisions of this resolution. In the event Bonds in the form of
certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions
of this resolution shall also apply to all matters relating thereto, including, without limitation, the
printing of such Bonds in the form of bond certificates and the method of payment of principal of
and interest on such Bonds in the form of bond certificates.
Section 4. Security Provisions.
4.01. 2012 Improvement Construction Fund. There is hereby created a special
bookkeeping fund to be designated as the "2012 Improvement Construction Fund" (hereinafter
referred to as the Construction Fund), to be held and administered by the City Finance Director
separate and apart from all other funds of the City. The City appropriates to the Construction
Fund (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 8 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. 2012 Improvement Bond Fund. So long as any of the Bonds are outstanding and
any principal of or interest thereon unpaid, the City Finance Director shall maintain a separate
and special bookkeeping fund designated "2012 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, (c) all
income derived from the investment of amounts on hand in the Bond Fund, and (d) all such other
moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance
11
II�)
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.
There are hereby established two accounts in the Bond Fund, designated as the "Debt
Service Account' and the "Surplus Account." All money appropriated or to be deposited in the
Bond Fund shall be deposited as received into the Debt Service Account. On each February 1,
the City Finance Director shall determine the amount on hand in the Debt Service Account. If
such amount is in excess of one - twelfth of the debt service payable from the Bond Fund in the
immediately preceding 12 months, the City Finance Director shall promptly transfer the amount
in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to
be transferred thereto from the Debt Service Account as herein provided and all income derived
from the investment of amounts on hand in the Surplus Account. If at any time the amount on
hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the
City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus
Account to the extent necessary to cure such deficiency.
The City reserves the right to establish a revolving fund pursuant to Minnesota Statutes,
Section 429.091, subdivision 7a, and to provide that the Bonds shall be payable from such
revolving fund. If the City determines to establish such a revolving fund and to provide that the
Bonds are payable therefrom, then any remaining amounts in the Construction Fund shall be
deposited in the construction account in the revolving fund and amounts in the Bond Fund shall
be deposited in the debt service account in the revolving fund. Any future collections of special
assessments levied with respect to the Improvements shall be deposited in the construction
account or debt service account as the City Council or an officer designated by the City Council
may determine.
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
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 the Improvements. In the event that
12 11
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 in the
principal amount of $681,991.00 payable in not more than 10 installments, the first installment to
be collectible with taxes during the year 2013, and that deferred installments shall bear interest at
the rate of 3.55% 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:
Levy Collection
Year Year
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
2027
Amount
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
13
�1
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 February 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.
Section 5. Defeasance. When all of the Bonds 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 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 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 Arbitrage
and Official Statement,
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 LLP, 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.
14 I I LJ
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 agents any
action which would cause the interest on the Bonds to become subject to taxation under the
Internal Revenue Code of 1986, as amended (the Code), and Regulations promulgated
thereunder (the Regulations), as such are enacted or promulgated and in effect on the date of
issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the
interest on the Bonds will not become subject to taxation under such Code and Regulations. The
Improvements and any other improvements financed pursuant to Section 4.01 will be owned and
maintained by the City and available for use by members of the general public on a substantially
equal basis. The City shall not enter into any lease, use or other agreement with any non-
governmental person relating to the use of such improvements or security for the payment of the
Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan
bonds" within the meaning of Section 141 of the Code.
6.04. Arbitrage Certification. 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 148 of the Code, and Section 1.148- 2(b)(2) of the Regulations, stating
the facts and estimates in existence on the date of issue and delivery of the Bonds which make it
reasonable to expect 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.
6.05. Arbitrage Rebate. The City shall take such actions as are required to comply with
the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code.
6.06. Not Qualified Tax Exempt Obligations. The Bonds are not designated as
"qualified tax- exempt obligations" for purpose of Section 265(b) of the Code relating to the
disallowance of interest expenses for financial institutions.
6.07. Official Statement. The Official Statement relating to the Bonds, dated
September 27, 2012, prepared and distributed on behalf of the City by Ehlers & Associates, Inc.,
is hereby approved. The officers of the City are hereby authorized and directed to execute such
certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the
Official Statement.
Section 7. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the
public availability of certain information relating to the Bonds and the security therefor and to
permit the Purchaser and other participating underwriters in the primary offering of the Bonds to
comply with amendments to Rule 15c2 -12 promulgated by the SEC under the Securities
Exchange Act of 1934 (17 C.F.R. § 240.15c2 -12), relating to continuing disclosure (as in effect
and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds,
the City hereby makes the following covenants and agreements for the benefit of the Owners (as
hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated
person in respect of the Bonds within the meaning of the Rule for purposes of identifying the
entities in respect of which continuing disclosure must be made. If the City fails to comply with
any provisions of this section, any person aggrieved thereby, including the Owners of any
Outstanding Bonds, may take whatever action at law or in equity may appear necessary or
15
11�
appropriate to enforce performance and observance of any agreement or covenant contained in
this section, including an action for a writ of mandamus or specific performance. Direct,
indirect, consequential and punitive damages shall not be recoverable for any default hereunder
to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no
event shall a default under this section constitute a default under the Bonds or under any other
provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a
Bond, the registered owner or owners thereof appearing in the bond register maintained by the
Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner
provides to the Registrar evidence of such beneficial ownership in form and substance
reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a
Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with
respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds
through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the
Bond for federal income tax purposes.
(b) Information To Be Disclosed. The City will provide, in the manner set forth in
subsection (c) hereof, either directly or indirectly through an agent designated by the City, the
following information at the following times:
(1) on or before 365 days after the end of each fiscal year of the City, commencing with
the fiscal year ending December 31, 2013, the following financial information and
operating data in respect of the City (the Disclosure Information):
(A) the audited financial statements of the City for such fiscal year, prepared in
accordance with generally accepted accounting principles in accordance with
the governmental accounting standards promulgated by the Governmental
Accounting Standards Board or as otherwise provided under Minnesota law, as
in effect from time to time, or, if and to the extent such financial statements
have not been prepared in accordance with such generally accepted accounting
principles for reasons beyond the reasonable control of the City, noting the
discrepancies therefrom and the effect thereof, and certified as to accuracy and
completeness in all material respects by the fiscal officer of the City; and
(B) to the extent not included in the financial statements referred to in paragraph (A)
hereof, the information for such fiscal year or for the period most recently
available of the type contained in the Official Statement under headings:
Current Property Valuations; Direct Debt; Tax Levies and Collections;
Population Trend and Employment/Unemployment.
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by
the date specified, the City shall provide on or before such date unaudited financial statements in
the format required for the audited financial statements as part of the Disclosure Information and,
within 10 days after the receipt thereof, the City shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as
required hereby, from other documents, including official statements, which have been filed with
the SEC or have been made available to the public on the Internet Web site of the Municipal
Securities Rulemaking Board (MSRB). The City shall clearly identify in the Disclosure
16
Information each document so incorporated by reference. If any part of the Disclosure
Information can no longer be generated because the operations of the City have materially
changed or been discontinued, such Disclosure Information need no longer be provided if the
City includes in the Disclosure Information a statement to such effect; provided, however, if such
operations have been replaced by other City operations in respect of which data is not included in
the Disclosure Information and the City determines that certain specified data regarding such
replacement operations would be described in paragraph (2) hereof, then, from and after such
determination, the Disclosure Information shall include such additional specified data regarding
the replacement operations. If the Disclosure Information is changed or this section is amended
as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next
Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the
reasons for the amendment and the effect of any change in the type of financial information or
operating data provided.
(2) In a timely manner not in excess of 10 business days after the occurrence of the event,
notice of any of the following events with respect to the Bonds:
(A) Principal and interest payment delinquencies;
(B) Non - payment related defaults, if material;
(C) Unscheduled draws on debt service reserves reflecting financial difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -
TEB) or other material notices or determinations with respect to the tax status of
the Bonds, or other material events affecting the tax status of the Bonds;
(G) Modifications to rights of security holders;
(H) Bond calls (other than scheduled mandatory redemptions, if material, and tender
offers;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the securities, if
material;
(K) Rating changes;
(L) Bankruptcy, insolvency, receivership or a similar event with respect to the City;
(M) The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
17 11 l _)
obligated person, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a
definitive agreement relating to any such actions, other than pursuant to its
terms, if material and
(V) Appointment of a successor or additional trustee or the change of name of a
trustee, if material.
As used herein, for those events that must be reported if material, an event is "material" if it is an
event as to which a substantial likelihood exists that a reasonably prudent investor would attach
importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would
significantly alter the total information otherwise available to an investor from the Official
Statement, information disclosed hereunder or information generally available to the public.
Notwithstanding the foregoing sentence, an event is also "material' if it is an event that would be
deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of
applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the
event.
For the purposes of the event identified in (L) hereinabove, the event is considered to occur when
any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an
obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding
under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the obligated person, or if such jurisdiction has
been assumed by leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the entry of an
order confirming a plan of reorganization, arrangement or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of the assets or business of the
obligated person.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required under
paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this section pursuant to subsection (d),
together with a copy of such amendment or supplement and any explanation
provided by the City under subsection (d)(2);
(C) the termination of the obligations of the City under this section pursuant to
subsection (d);
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared;
and
(E) any change in the fiscal year of the City.
18
(c) Manner of Disclosure.
(1) The City agrees to make available to the MSRB, in an electronic format as
prescribed by the MSRB from time to time, the information described in subsection
(b).
(2) All documents provided to the MSRB pursuant to this subsection (c) shall be
accompanied by identifying information as prescribed by the MSRB from time to
time.
(d) Term; Amendments; Interpretation.
(1) The covenants of the City in this section shall remain in effect so long as any Bonds
are Outstanding. Notwithstanding the preceding sentence, however, the obligations
of the City under this section shall terminate and be without further effect as of any
date on which the City delivers to the Registrar an opinion of Bond Counsel to the
effect that, because of legislative action or final judicial or administrative actions or
proceedings, the failure of the City to comply with the requirements of this section
will not cause participating underwriters in the primary offering of the Bonds to be
in violation of the Rule or other applicable requirements of the Securities Exchange
Act of 1934, as amended, or any statutes or laws successory thereto or amendatory
thereof.
(2) This section (and the form and requirements of the Disclosure Information) may be
amended or supplemented by the City from time to time, without notice to (except as
provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a
resolution of this Council filed in the office of the recording officer of the City
accompanied by an opinion of Bond Counsel, who may rely on certificates of the
City and others and the opinion may be subject to customary qualifications, to the
effect that: (i) such amendment or supplement (a) is made in connection with a
change in circumstances that arises from a change in law or regulation or a change in
the identity, nature or status of the City or the type of operations conducted by the
City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5)
of the Rule; (ii) this section as so amended or supplemented would have complied
with the requirements of paragraph (b)(5) of the Rule at the time of the primary
offering of the Bonds, giving effect to any change in circumstances applicable under
clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the
amendment or supplement was in effect at the time of the primary offering; and (iii)
such amendment or supplement does not materially impair the interests of the
Bondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the
reasons for the amendment and the effect, if any, of the change in the type of
financial information or operating data being provided hereunder.
19 � 1 \
(3) This section is entered into to comply with the continuing disclosure provisions of
the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the
Rule.
Section 8. Authorization of Payment of Certain Costs of Issuance of the Bonds. The
City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment
of issuance expenses to Klein Bank, on the closing date for further distribution as directed by the
City's financial advisor, Ehlers & Associates, Inc.
Attest:
Mayor
City Administrator
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember , and upon vote being taken thereon, the following
Councilmembers voted in favor thereof:
and the following Councilmembers 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.
20 I 1 W)
COUNTY AUDITOR'S CERTIFICATE
AS TO BOND REGISTRATION
AND TAX LEVY
I, the undersigned, being the duly qualified and acting County Auditor of McLeod
County, Minnesota, hereby certify that there has been filed in my office a certified copy of
Resolution No.
adopted October 9, 2012, by the City Council of the City of
Hutchinson, Minnesota, setting forth the form and details of an issue of $2,275,000 General
Obligation Improvement Bonds, Series 2012C, dated as of October 30, 2012, and levying taxes
for the payment thereof.
I further certify that the bond issue has been entered on my bond register and the tax
required by law for payment of the Bonds has been levied and filed, as required by Minnesota
Statutes, Sections 475.61 to 475.63.
WITNESS my hand and official seal this day of October, 2012.
McLeod County Auditor
(SEAL)
ItiLq-)
—E-
n—E] Debt Issuance Services
EHLERS
LEADERS IN PUBLIC FINANCE
October 9, 2012
Sale Report
City of Hutchinson, Minnesota
$.2,275,000 General Obligation Improvement Beads,
Series 20120
www.ehlers- ric.corrl
Minnesota phone 651- 697 -8500 3060 Centre Pointe D6
Offices also in Wisconsin and Illinois tax 651-697-8555 Roseville,
MN 551 1122
{ r
Debt Issuance Services
EHD
City of Hutchinson, MN
Results of Bond Sale — October 9, 2012
$2,275,000 General Obligation Improvement Bonds, Series 20120
Purpose: To finance various public improvements within the City.
Rating:
Standard & Poor's "AA"
Number of Bids:
2
Low Bidder:
BAIRD, Milwaukee, WI
True Interest Cost:
2.1615 %
Interest Savings from
Low Bid
High Bid interest Savings
Lowest to Highest Bid:
%
SLJmmary of Results:
Projected
Results of Sale Difference
Principal Amount ' :
$2,275,000
$2,275,000 $0
Net Proceeds:
$2,220,250
$2,246,096 $25,846
Discount Allowance:
$22,750
$30,131 $7,381
True Interest Cost:
2.5603%
2.1516% -0.41%
Coupon Rates:
.85 - 3A O%
2.00-2.50%
Cost of Issuance:
$32,000
$33,403 $1,403
Closing Date:
October 30, 2012
Council Action:
Resolution authorizing issuance,
awarding sale, fixing the form and
details and providing for the execution and delivery of $2,275,000
General Obligation Improvement
Bonds, Series 20120.
Attachments: Bid Tabulation
• Rating Report
• Sale Resolution
Wvwv\f,eh1ers- !nC.c0M
10 EHLERS
Minnesota phone 651 - 697 -8504 3060 Centre Pointe Drive
LEADERS IN PUWC FINANCE Offioes also in Wisconsin and Illinois fax 651 -697 -8555 Roseville, MN 55113 -1122
BID TABULATION
$2,275,000 General Obligation Improvement Bonds, Series 2012C
CITY OF HUTCHINSON, MINNESOTA
SALE: October 9, 2012
AWARD: BAIRD
RATING: Standard & Poor's Credit Markets "AA =' BBI: 3.61010
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1) YIELD COST RATE
BAIRD
Red Bank, New Jersey
C.L. King & Associates
Edward D. Jones & Co.
Crews & Associates, Inc.
Loop Capital Markets
Kildare Capital
Coastal Securities, Inc.
Davenport & Co. L.L.
SAMCO Capital Markets
Corbq Capital Markets
Vining- Sparks IBG, Limited Partnership
Northland Securities, Inc.
Ross, Sinclaire & Associates, LLC
CCc & Co., Inc.
Isaz.. pond Investments, Inc.
Castle0ak Securities, L.P.
Sterne, Agee & Leach
Wedbush Securities Inc.
Bernardi Securities, Inc.
Lafayette Investments
CITIGROUP GLOBAL MARKETS, INC.
Chicago, Illinois
EHLERS
LEADERS IN PUBLIC FINANCE
2414
2.000%
0.550% $2,279,499.50 $381,904.12 2.1615%
2015
2.0401/0
0.600%
2016
2.000%
0.700%
2017
2.000%
0.900%
2018
2.000%
1.100%
2019
2.000%
1.350%
2020
2.000%
1.580°/0
2021
2.000%
1.810%
2022
2,000%
2.000%
2023
2.125%
2.200%
2024
2.250%
2.350010
2025
2.375%
2.500%
2026
2.400%
2.550%
2027
2.500%
2.610%
2028
2.500%
2.670%
2414 2.000% $2,279,264.20 $416,589.41 2.3510%
2015 2,000%
20 16 2.000%
2017 2.000%
2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.250%
2023 2.250%
2024 2.500%
2025 2.500%
2026 2.750%
2027 3.000%
2028 3.000%
Minneso#a phone 651- 697 -8500
Offices also in Wisconsin and Illinois fax 651 -697 -8555
www.ehlers- inc.com
3060 Centre Pointe 6rive
Rosevdlle � M N,3 -1122
Hutchinson, Minnesota
$2,275,000
General Obligation Improvement Bonds, Series 2012C
Sources & Uses
Rated 10/301Z012 j Delivered 10/30/2072
Sources Of Funds
Par Amount of Bonds
$2,275,000.00
....
Reoffering Premium
34.630.75
Total 5ouroes
$2 3D9,63�.75
Uses Of Funds
❑epcsit to Project Construction Fund
2,218,919.00
Costs of Issuance
33,403.00
Total Linderwriters Tliscnnnt. (1-324%)
30,131.25
Deposit to Pro ect Fund {Premium & Rounding}
27,177.50
Total Uses
S2,109,630-75
Series 20120 GO Imp Bonds i SINGLE PURPOSE i 1019!2012 J 12216 PM
10 EHLE RS
LEADERS IN PUBLIC FINANCE
Hutchinson, Minnesota
$2,275,000
Ceneral Obligatlon Improvement Bonds, Series 2012C
Net Debt Service Schedule
Series 2012C GO Imp Sends i SINGLE PURPOSE 1 101 912012 1 12:16 PM
EHLERS
LEADERS IN PUBLIC FINANCE
5
k� Ga-)
Fiscal
Date
Principal
Coupon
Interest
Total P +I
Net New DIS
Total
10/34/2012
-
-
08/01/2013
-
-
36,216.14
36,216.14
36.216.14
02JO112014
160,000.00
1000%
24,055.00
184,055.00
184.055.00
220,271.14
08/01/2014
-
-
22,455.00
22,455.00
22,455 -00
-
02/002015
170,000.00
2.000%
22.455.00
192,455.00
192,455.00
214,910.00
OM 112015
-
-
20,755.00
20,755.00
20,755.00
-
02J01/2016
170,000.00
2.000%
20,755.00
190,755.00
190,755.00
211,510.00
OB/0112016
-
-
19,055.00
19,055.00
19.055.00
-
02/01/2017
170,400.00
2.000%
19,055.00
189,055.00
189,055.00
208,110.00
08/01/2017
-
-
17,355.00
17,355.00
17,355.00
02101/2018
165,000.00
2.000%
17,355.00
182,355.00
182,355,00
199.710.00
08/01/2018
-
-
15,705.00
15.705 -W
15,705.00
02/01/2019
170,000.00
2.000%
15,705.00
185,705.04
185,705.00
201,410.00
08/01/2019
-
14,005.00
14,UU5.UU
14,005.00
-
02/01 /2020
170.040.00
2.000%
14,005.00
184,005.x0
184,005 AO
198.010,00
08/01/2020
-
-
12,305.00
12,30500
12,305.00
02/01/2021
170,000.00
2.000%
I2,305.00
182,305.00
182,305.00
194,610.00
08/01/2021
-
-
10,605.00
10.605.00
10.605.00
-
02/01/2022
170,000.00
2000%
10.605.00
180,605.00
180,605.00
191,210.00
08/01/2022
-
-
8,905.00
81905.00
81905.00
-
02JO112023
175,000.00
2.125%
8.905.00
183,905.00
163,905.00
192.810.00
08/01/2023
-
-
7,045.63
7.045.63
7,045.63
-
02J0112024
110,000.00
2.250%
7,045.63
117,445.63
117,045.63
124,091.26
08/01/2024
-
-
5,808.13
5,808.13
5,848.13
-
02/01/2025
115,400.00
2.375%a
5,808.13
120,808.13
120,808.13
126,616.26
08/01/2025
-
-
4,442.54
4,442.50
4.442.50
-
02/01/2026
1151000.00
2,400%
4,442.50
119,442.50
119,442.50
123.885.00
0 910112026
-
3,062.50
3,062.50
3,062.50
02/01/2027
120.000.00
2.500%
3,062.50
123,062.50
I23.062.50
126,I25.00
08/01/2027
-
-
1,562.50
1,562.50
1.562.50
-
02/01/2028
125,000.00
2.500%
1,562.50
126.562.50
126,562.50
128,125.00
Total
$2,275,000.00
;386,403.66
$2,661,403.66
$2,661,403.66
-
Series 2012C GO Imp Sends i SINGLE PURPOSE 1 101 912012 1 12:16 PM
EHLERS
LEADERS IN PUBLIC FINANCE
5
k� Ga-)
Hutchinson, Minnesota
$2,275,000
Gen -oral Obligation Improvement Bands, Series 2012C
Debt Service Schedule
Levy
Cate Principal Coupon Interest Total P +I 105% of Total Assessments Require
02/01/2013
-
-
-
-
-
First Coupon Date
8/0112013
02/6112014
160,000.00
2.000%
60,271.14
220,271.14
231,284.70
89,750.02
141,534.68
02/01/2015
170,000.00
2.000%
44,910.00
214,910.00
225,655.50
57,594.92
138,060.58
02/0112016
170,000.00
2.000%
41,510.00
211,510.00
222,085.50
85.439.83
136,645.67
02/61/2017
170,000.00
2.000°
38,110.00
208,110.00
218,515.50
83,284.74
135,230.76
02/0112018
165,000.00
2.000%
34,710.00
199,710.00
209,695.50
S1.129.65
128,565.85
02/41/2019
170,000.00
2.000%
31,410.00
201,410.00
211,480.50
78.974.56
132,505.94
02/01/2020
170,000.00
2.000%n
28,010.00
198,010.00
207,910.50
76,819.47
131,1191.03
02/01/2021
170,000.00
2,000%
24,610.00
194,610.00
204,346.50
74,664.37
129,676.13
02/0112022
170,000.00
2.000%
21,210.00
191,210.00
200,770.50
72.509.28
128,261.22
02/01/2023
175.000.00
1125%
17,810.00
192,810.00
202,450.50
70,354.19
132,096.31
02/01/2024
110.000.00
2.250%
14,091.26
124,091.26
130,295.82
-
130,295.82
02/0112025
115,000.00
1375%
11,616.26
126,616.26
132,947.07
132,947.07
02101/2026
115,000.00
2.400%0
8,885.00
123,885.00
130,079.25
130,079.25
02101/2027
120,000.00
2.500%
6,125 -00
126,125.00
132,431.25
132,431.25
02101/2028
125.000.00
2.500%
3,125.00
128,125.00
134,531.25
134,531.25
Total $2.275,000.00
- $386.403.66 $2,661403.66 52,794,473.84 $800,521.03 $1,993,952.81
Significant Dates
Dated
10/30/2012
First Coupon Date
8/0112013
Yield Statistics
Bond Year Dollars
$17,580.07
Average Life
7'728 Years
Average Coupon
2.1979644%
Net interest Cast (NIC)
2.1723700%
True Interest Cast (TIC)
2.1615345%
Bond Yield for Arbitrage Purposes
1.9729576%
All Inclusive Cost (AIQ
2.3747614%
Series 2012C G0 Imp Bonds 1 SINGLE PURPOSE 1 1 Of 912012 1 12.16 PM
Ift EHLERS
LEADERS IN PUBLIC FINANCE
Hutchinson, Minnesota
$581,991
General Obligatlon I mp rove ment Bands, Series 20 1 2C
Equal Principal - TIC plus 1.0%
Assessments
Date
Principal
Coupon
Interest
Total P +I
12/31/2013
68.199.10
3,160%
21,550.92
89,750.02
1213112014
68,199.10
3.160%
19,395.82
87,594,92
12/31/2015
68,199,10
3.160%
17,240.73
85,439.83
12131/2016
()8,199.10
3.160%
15.085.64
83,284.74
12/31/2017
158,199.10
3.160%
12,930.55
61,129,65
12131/2018
68,199,10
3.160%
10,775.46
78,974.56
12/31/2019
68,199.10
3.16090
8,620.37
76,819.47
12131/2020
68,199.10
1160%
6,465.27
74,664.37
12131r-021
68,199.10
3.160%
4,310,18
72,5092$
12/31/2022
68,199.10
3.160%
2,155.09
70,354.19
Total
$681,991.00
-
$118,530,03
$lSM,521.03
-Significant Dates
Filing Daw 110112013
First Payment Date 12131/20I3
Series 2012C GO Imp Bonds I SINGLE PURPOSE 1 10191.1072 1 12:17 PM
EHLERS
LEADERS Ira PUBLIC FINANCE
Gila)
STANDARD
&P00R'S
RATINGS SERVICES
F
Ratings0irect @
Sumrnary:
Hutchinson, Minnesota; General
Obligation; Non - School State
Programs
Primary Credit Analyst:
Blake E Yocom, Chicago (1) 312 - 233 -7056; blake _yocom @standardandpoors.com
Secondary Contact:
Caroline E West, Chicago (1) 312 - 233 -7647; Caroline _west{a7standardandpoors.com
Table Of Contents
Rationale
Outlook
Related Criteria And Research
W W W.STANDAFtDA NDPOORS.COM /RATINGS])'LR zCT
OCTOBER 4, a012 I
:C 'i960 i 301C!3887
Summary;
Hutchinson, Minnesota; General obligation;
Non - School State Programs
Profile Credit
US$2.275 mil GO imp beds ser 20120 dtd 10/30/2012 due 02/01/2028
Long term Rating
AA- /Stable
New
Hutchinson GO
Long Term Rating
AA- /Stable
Affirmed
Hutchinson GO Non -Sch St Frog
Long Term Bating
AA+ /Stable
Affirmed
Unenhanced Rating
AA- (SPUR) /Stable
Affirmed
Rationale
Standard & Poor's Ratings Services has assigned its 'AA -' long -term rating to Hutchinson, Minn.'s series 20120 general
obligation (GO) improvement hands. Standard & Poor's also affirmed its 'AA-' long -term rating and underlying rating
(SPUR) on the city's previously issued GO bonds and its'AA +' program rating on the city's 2d09A and 2009E GO
revenue refunding bonds outstanding, reflecting the city's eligibility for, and participation in, Minnesota's City Credit
Enhancement Program, The outlook on all the ratings is stable.
The 'AA-' long -term rating and SPUR reflect our view of the city's:
Role as a regional economic Center and access to larger economies in St. Cloud and Minneapolis -St. Paul;
Good income levels and strong market value per capita; and
Very strong general fund reserves and a trend of operating surpluses.
Partially offsetting the above strengths, in our view, are the city's high debt service carrying charges, albeit somewhat
mitigated by above- average amortization and a significant portion of debt being paid from utility revenues.
The city's full faith and credit unlimited -tax GO pledge secures the bonds. The city expects to pay debt service from
special assessments against benefited properties and ad valorem property taxes. We understand bond proceeds will be
used for various public improvements within the city-
Hutchinson (population, 14,178) is in McLeod County, approximately 55 miles west of Minneapolis and 52 miles south
of 5t. Cloud. Given the city's location, residents can commute into and around the greater Minneapolis -St. Paul
metropolitan area for employment opportunities. Employment opportunities are also available in the city, with leading
employers including 3M Co. (1,700 employees), a manufacturer of tape and related products; Hutchinson Area Health
Care (750); and Hutchinson Technology Inc. (704), a manufacturer of suspension assemblies. In July 2012, county
unemployment was 6.9 %, above the state's 5.8% rate but below the nation's 8.3% rate during the same time period.
Median household effective buying income is good, in our opinion, at 101% of the national level.
WWW. ST ANDARDANDPOORS .COM /RATINUSDIRZCT OCTOBER 4, 2012 2
1019647 1 30iG135 7 9
11
Summary: Hutchinson, Minnesota; General Obligation; Non- School State Programs
Assessor's taxable market value grew, on average, 2.8% annually between 2008 and 2010 before decreasing 5.2% in
2011 and 13.8% in 2012 (due to the state's market value exclusion) reaching $761.4 million in 2012. Estimated full
market value, a more accurate representation of market prices, was $855.5 billion, or $60,228 per capita, which we
view as strong, in 2012. The 10 Ieading taxpayers account for a very diverse 14.9% of net tax capacity.
Hutchinson's conservative management practices have led to operating surpluses for at least the past seven fiscal
years. For fiscal 2013, the city plans to adopt a balanced budget with no significant changes to any line items and a
modest 1.4% increase in expenditures. For fiscal 2012, the city adopted a balanced budget and is currently projecting
at least break -even results, with a small surplus likely. At fiscal year -end 2011 (Dec. 31), the city reported a surplus of
$73,000 in the general fund that is attributable to a 2% levy increase, receiving flat local government aid from fiscal
2010, and savings through attrition. Due to Governmental Accounting Standards Board 54 changes, 40% of the next
year's fiscal year expenditures is marked committed, leaving an assigned and unassigned fund balance of $1.66 million,
or 16.2% of expenditures. However, this committed designation can be changed at any time by the city council.
Including the working capital commitment, the city's available:reserve is more than $5.9 million, or 57.6% of
expenditures, which we view as very strong.
Property taxes (54 %) are the city's leading revenue stream, with charges for services (17 %) and intergovernmental aid
(16 %) generating most of the remaining general fund revenues. Management transferred $366,000 in fiscal 2010 and
$451,000 in fiscal 2011 into the general fund from the liquor fund to support general operations. Although the liquor
store fund had a negative $631,000 in unrestricted net assets at fiscal year -end 2011 and thus does not provide an
additional source of liquidity, the store has positive operations and supports the general fund annually. The city
recently passed a local sales tax of 0.5% that is projected to generate $600,000 to $800,000 annually beginning .Ian. 1,
2012; management intends to use a portion of this revenue to pay debt service on a new water plant constructed in
2008.
Standard & Poor's considers Hutchinson's financial management practices "good" under its Financial Management
Assessment (FMA) methodology. An FMA of good indicates that financial practices exist in most areas, but that
governance officials might not formalize or regularly monitor all of them. Highlights of these policies include
managements monthly reports to the city council on budgeted figures compared with actual performance. The city
maintains a capital plan that includes estimated project costs and is updated annually. The city also maintains a
five -year financial forecast that uses historical trend analysis to project revenues and expenditures. In addition, the city
maintains a board - adopted fund balance policy that requires it to maintain an unreserved general fund balance equal
to 40% of the next years operating budget.
The city's overall debt burden, net of self- supporting GC hospital revenue debt, self - supporting water and sewer
revenues, and electric and natural gas revenue debt, is moderate, in our view, at $2,922 per capita and 4.9% of market
value. Carrying charges, as a percent of total governmental funds expenditures less capital outlay, were high at 21.91/0
in fiscal 2011. Amortization is above average, with officials planning to retire 70% of principal within 10 years. We
understand the city has no formalized additional debt plans at this time.
Employees are covered by defined benefit plans administered by the Public Employees Retirement Association of
Minnesota (PER.A). The city has historically contributed 100% of required contributions to PERA, which, combined
WWW. STAHDARDARDPOORS .CCM /RATIHGSDIRECT
10
OCT013ER 4, 201A S
1019547 13010136S7
Summary. Ilutchirrson, Minnesota; General Obligation; Non - School State Programs
with a pension payment to the fire relief association, totaled $716,912 in 2011, equivalent to 3.4% of total
governmental expenditures. The city allows retirees to remain on its health insurance plan but retirees pay 100% of the
premium, resulting in an implicit liability. As of .Ian. 1, 2011, the city's unfunded actuarial accrued liability was
$707,035.
Outlook
The stable outlook on the'AA +' enhanced program rating reflects the outlook of the state of Minnesota. The stable
outlook on the 'AA -' long -term rating reflects our expectation that city management will maintain very strong reserves
in accordance with its fund balance policy of 40% of expenditures. We do not expect to change the rating within the
two -year time frame of the outlook because we expect the city to continue its prudent financial management practices
and maintain very strong reserves. The city's role as a regional economic center and access to lai ger and more diverse
economies provide additional rating stability.
Related Criteria And Research
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: State Credit Enhancement Programs, Nov. 13, 2008
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at
wwwglobalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web
site at www.standardandpoors.com. Use the Ratings search box located in the left column.
[+ WW.STANDARDANDPOORS .Cold /RA,TINGSDIIiECT OCTOBER 4, x012 4
sc7r;�*i,y� 11
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12
WGRAWALL
OCTOBER 4, 2018 S
10196-47 130 1013687
Ordinance No. 12 -696
Publication No.
AN ORDINANCE AMENDING ORDINANCE NO. 07 -0473 — LEASING OF CERTAIN LAND,
BUILDINGS AND OTHER PROPERTY TO HUTCHINSON HEALTH CARE
The City of Hutchinson hereby ordains that:
WHEREAS, on September 11, 2007, the Hutchinson City Council adopted Ordinance No. 07 -0473
approving leasing of certain land, buildings and other property to Hutchinson Health Care; and,
WHEREAS, Hutchinson Health Care and Hutchinson Medical Clinic, P.A. have made the decision to
integrate their enterprises to more effectively deliver heath care services to the community; and,
WHEREAS, the City of Hutchinson believes this integration will promote the independence, flexibility
and stability of health care services in the community and therefore supports this integration; and,
WHEREAS, the City of Hutchinson and Hutchinson Health Care have agreed to amend the terms of the
lease agreement to provide for, among other things,:
1. A payment of Two Million dollars (2,000,000.00) to the City of Hutchinson,
2. Prepayment of the City of Hutchinson's bonded indebtedness by Hutchinson Health Care,
3. Modification of the City of Hutchinson's membership rights under the exiting lease,
4. Modification of Hutchinson Health Care's operating parameters under the existing lease
The terms of which are more fully set out in the lease amendment attached hereto as "exhibit A"
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA, THAT THE LEASE AGREEMENT WITH HUTCHINSON AREA HEALTH CARE IS
HEREBY AMENDED TO READ AS ATTACHED IN EXHIBIT A TO THIS ORDINANCE.
Adopted by the City Council this 23d day of October, 2012.
Attest:
Jeremy J. Carter, City Administrator Steven W. Cook, Mayor
DRAFT 10.1.12 PMT
FIRST AMENDMENT
TO
LEASE AND AGREEMENT
This First Amendment to Lease and Agreement ( "First Amendment ") is
made and entered into as of , 2012, by and between the City of
Hutchinson, a Minnesota municipal corporation ( "City "), as landlord, and Hutchinson
Health Care, a Minnesota nonprofit corporation ( "HHC "), as tenant.
RECITALS
WHEREAS, City and HHC are parties to that certain Lease and Agreement
dated effective December 31, 2007 (the "Lease and Agreement ") relating to certain
leased property which is described in the Lease and Agreement, and the City has
certain rights under the Articles of Incorporation and Restated Bylaws of HHC
adopted and made effective by HHC as of December 31, 2007 (collectively, the
"Privatization Documents ") which were intended by the Parties to carry out a
"privatization" of HHC and its health care delivery services and related activities to
the extent set forth therein.
WHEREAS, since the effective date of the Privatization Documents, further
and significant changes have occurred within the health care industry, most of which
incent and encourage still further integration among health care providers.
WHEREAS, specifically, HHC and Hutchinson Medical Clinic P.A.
( "HMC") (the physicians of which constitute the majority of the medical staff of
HHC) believe fuller integration of their respective activities could provide a more
stable and sustainable platform from which health care can best be provided to
residents of Hutchinson and the surrounding communities.
WHEREAS, HHC and HMC have reached agreement with respect to a
transaction in which HMC assets essential in the operation of the clinic will be
acquired by HHC and the employees, other than physician employees, of HMC will
become employees of HHC and HHC will concurrently contract with HMC to
provide HMC's entire physician capacity to HHC for the operation of a hospital
owned, provider -based clinic (the "Transaction ").
WHEREAS, City believes that for the foreseeable future, the interests of its
citizens in local availability of a wide range of health care services can best be met by
facilitating and supporting the Transaction and the fuller integration of HHC and
HMC.
«�
WHEREAS, the City has evaluated the various rights it holds under the
Privatization Documents, the potential value of those rights, the potential volatility of
such value, potential risks the City may have faced if it were ever to have re- entered
the health care enterprise in the event of a default under the Privatization Documents,
and the range of amounts and the variety of transactions entered into by other
municipalities in similar and other privatization circumstances.
WHEREAS, the City obtained input from its independent financial advisors
in connection with the economic effects of this First Amendment and proposed
operating performance parameters, and City personnel evaluated the impact of the
proposed payments to the City contemplated under this First Amendment on the
vitality and sustainability of HHC and evaluated generally the prospects for local
delivery of care under a variety of market and regulatory scenarios.
WHEREAS, the City reaffirms its views that (1) a more integrated and
independent community based nonprofit health care corporation creates the most
flexibility to proactively address the health care needs in Hutchinson and the
surrounding communities and to react to the rapid changes occurring in the industry
and make the necessary resource allocation decisions in that environment, (2) the
Board of Directors, management and medical staff of HHC have the necessary
capabilities to conduct and oversee the local health care activities and make
reasonable decisions regarding future strategic direction, and (3) entering into this
First Amendment, with the City retaining the ongoing rights reflected herein, leaves
all Parties in the best position to effectively and efficiently carry out their respective
missions and duties. Moreover, the City believes that the additional consideration set
forth herein is reasonable and sufficient to warrant the resignation of certain rights as
described herein.
WHEREAS, under this First Amendment, the City will continue as a landlord
of HHC under the terms of the Lease, and the parties wish to modify the financial and
performance commitments of HHC to align with and protect the City's interests as a
landlord.
WHEREAS, HHC is a nonprofit corporation organized under the laws of the
State of Minnesota and is exempt from federal income taxes as an organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the
"Code "), and HHC intends to operate consistent with its charitable purposes.
NOW, THEREFORE, in consideration of the premises, covenants and
agreements set forth herein, the parties hereto hereby amend the Lease and
Agreement as follows:
1. Definitions. The following definitions set forth in Article 1 of the Lease and
Agreement are amended to read in their entirety as follows:
"1.1 Agreement. This Lease and Agreement and First Amendment to Lease
and Agreement, including the following exhibits attached hereto and made a
part hereof:
Exhibit A —
Legal Description of the Land
Exhibit B —
Excluded Assets
Exhibit C —
Motor Vehicles
Exhibit D —
Operating Parameters
Exhibit E —
2012 Bylaws
1.18 Existing Bonds. The following bonds issued by City: General
Obligation Taxable Medical Facilities Revenue Refunding Bonds, Series
1998; General Obligation Medical Facilities Revenue Bonds, Series 2003A;
General Obligation Medical Facilities Revenue Refunding Bonds, Series
2009C; General Obligation Medical Facilities Revenue Refunding Bonds,
Series 2010A and General Obligation Medical Facilities Revenue Refunding
Bonds, Series 2010B, together with Future Financings, if any, as to which the
City has any liability.
1.42 Operating_ Parameters and Revised Operating Parameters. The
financial, quality, operating and other parameters initially set forth in Exhibit
A to the Amended and Restated Bylaws of HHC, as now updated and
completely restated as Exhibit D, attached to the First Amendment. For
purposes of measuring compliance with such operating parameters, Harmony
River financial information will be excluded. However, HHC will also
calculate the operating parameters without excluding Harmony River financial
information and forward that information to the City at the same time for
informational purposes. This is consistent with the current practice at the time
the First Amendment was adopted."
Capitalized terms not defined in this First Amendment shall have the same meaning
assigned to them in the Lease and Agreement.
2. Annual Rent. Section 3.1 of the Lease and Agreement is hereby amended by
the addition of the following new subsection (e) to read as follows:
"(e) On or before the Effective Date defined in Section 12 of the
First Amendment, HHC shall irrevocably prepay in whole that part of the
Annual Rent specified in Section 3.1(a)(2), to the same extent and upon the
same terms as the City has the right to prepay or defease its obligations with
respect to the Existing Bonds, in accordance with the terms of the Existing
Bond Documents."
3. Additional Consideration. Article 3 of the Lease and Agreement is hereby
amended by the insertion of a new Section 3.4 to read in its entirety as follows :
� � C�6)
"3.4 Additional Consideration. (a) In consideration of the City
resigning its Member rights and other rights and interests it held in connection
with HHC under the Amended and Restated Bylaws, HHC shall pay to the
City as additional rent (in addition to Annual Rent and other Rent payments
due to City under the Lease and Agreement), the amount of Two Million
Dollars ($2,000,000.00) (the "Additional Consideration "), payable at the times
set forth herein:
(a) $666,666.66 on the Effective Date of the First Amendment; and
(b) the balance in two equal installments payable on or before each of
the next two anniversary dates of such Effective Date.
The pro- ration provision of Section 3.1 shall not apply to the Additional
Consideration. The City agrees to use the Additional Consideration to
promote community health, wellness and/or recreation opportunities."
4. No Future Bonding Obligations. Article 17, Section 17.10 is hereby amended
by adding the following sentence at the end thereof:
"Notwithstanding the foregoing, with the adoption of the First Amendment
and the modifications to the HHC Bylaws implemented under the 2012 Bylaws, the
Parties do not anticipate that in the fixture the City would issue General Obligation
Bonds or otherwise have any direct obligations with respect to future HHC
financings."
5. Section Reference Correction. Article 18, Section 18.15 is amended to
substitute 17.10 for the reference to 17.11 in such section.
6. Default. Section 20.1(a) and (b) are hereby amended to read in their
entirety as follows:
"(a) HHC defaults in the payment of any Annual Rent, Additional Costs
described in Section 3.3, or Additional Consideration set forth in Section 3.4, payable
under this Agreement or the First Amendment and HHC does not cure such default
within fifteen (15) days after actual receipt of notice thereof."
"(b) HHC fails to satisfy an Operating Parameter set forth in Exhibit D and
the failure is not cured as required or in the manner set forth in Exhibit D."
7. Change in Control; Transfer or Disposition of Health Care System. Section
21.2 is amended to read in its entirety as follows:
"21.2 Change in Control Transfer or Disposition of Health Care System.
The parties acknowledge that the Lease and Agreement and related arrangements
under the HHC Bylaws were premised, among other things, on the concept that HHC
would be locally controlled and that the City would have a role in any decision to
u LL)
alter the local control features. With the payment of the Additional Consideration,
and under other provisions of the First Amendment, the City relinquishes its role in
such future determinations of structure and control; except for the consultation and
pre- condition rights provided herein.
(a) HHC agrees that it will consult with the City regarding any proposal to
transfer ultimate control or ownership to one or more third parties (regardless of how
or what form is utilized to achieve such transfer) (a "Change of Control "). Such
consultation will be sufficiently in advance of the HHC Board taking action on the
Change of Control to reasonably permit the City to consider the proposed change and
to provide input, if the City desires, for the HHC Board within a reasonable time
period. For purposes of this Section 21.2, HHC agrees that Change of Control will be
broadly defined, and will include, without limitation, any transaction, affiliation,
amendments to HHC's Articles of Incorporation or Bylaws, Board make -up
alteration, or any agreement, the result of which would be that the majority of the
HHC Board was not made up of independent residents of HHC's Geographic Service
Area (as defined in its Amended and Restated Bylaws) or that any matter considered
or decided by the HHC Board required approval of any other parry before having the
effect of a final act or decision of the Board (whether by Board supermajority, board
overlap, membership rights, joint venture rights, other ownership rights, or other
agreement rights of any other nature, officer positions (whether appointed or ex
officio), or any other arrangement through which the actions of HHC's Board are
directly or indirectly controlled by another parry).
(b) HHC agrees and covenants that any Change in Control approved by
HHC, shall be conditioned upon, and shall not take effect until: (i) payment of all
remaining amounts due under Section 3.4, as amended by the First Amendment to
Lease and Agreement, and (ii) prepayment (calculated at present value by a financial
advisor of the City's choosing) of all remaining payments due under Section 3.1(a)
through the next date on which HHC would be permitted to exercise the Purchase
Option under the first sentence of Section 26.1 (the "First Option Date "). Such
present value calculation shall be based on an investment rate based on what the City
could reasonably be expected to achieve at the time under the criteria of Minn. Stat.
Chapter 118A as if the funds were to be invested through the First Option Date.
(Such investment rate is used for purposes of calculating the present value amount
only and does not obligate the City to invest the fund in any particular manner or limit
the City's ability to otherwise use the funds.) Notwithstanding the foregoing, in the
event HHC objects to the City's present value calculation, then each parry shall select
a financial advisor and those two shall agree on a third financial advisor. The advisor
selected by the other two shall make the present value calculation which shall be final
and binding on the parties. The costs of the "third" financial advisor utilized in the
event HHC objects to the City's initial present value calculation shall be borne
equally by HHC and the City.
(c) Upon completion of a Change of Control transaction and payment of
the amounts described in (b) above to the City, HHC shall exercise the Purchase
Option and carry out all required related steps as set forth in Article 26 of the Lease
Agreement.
(d) Notwithstanding any other provision to the contrary, the City shall have
an independent right to enforce Section 21.2, including, in its sole discretion, pursuit
of injunctive relief in addition to any other remedy it may have."
8. Exercise of Option. Article 26 is amended by adding before the last sentence
of Section 26. 1, the following sentence:
"In addition, upon the occurrence of a Change in Control as described in Section 21.2
and payment to the City of the amounts set forth in Section 21.2(b), HHC shall
exercise the Option described in Article 26 and the Parties agree to take all steps
which are necessary or required to transfer title to Healthcare System Real Property to
HHC under the provisions of Article 26."
9. Miscellaneous. Article 27 is hereby amended by adding at the end thereof the
following new sections which read in their entirety as follows:
"27.6 Resignation of City Rights Under HHC Bylaws. City does
hereby resign any and all member rights, other rights, and other interests it holds, if
any, under the current Amended and Restated Bylaws and consents to the adoption of
the Second Amended and Restated Bylaws adopted by HHC as of the Effective Date
(the "2012 Bylaws ")."
27.7 Contractual Right to Elect HHC Director. During the period
between the Effective Date of the First Amendment and until the later of the
following events occurs: (a) termination of the Lease and Agreement as a result of the
exercise by HHC of the Purchase Option, or (b) payoff of all the Existing Bonds, the
City shall have the right to elect one (1) member of the Board of Directors of HHC
who is not a member of HHC's medical staff (and, in the City's sole discretion, to
remove and replace such Board member in compliance with Section 1.5 of the 2012
Bylaws, a copy of which is reproduced and attached hereto as Exhibit E) and HHC
agrees that such right shall, in addition, be set forth in any future amended or restated
bylaws of HHC, until the later of the two foregoing conditions occurs.
27.8 Additional Communications. City and HHC acknowledge the
value of ongoing direct communication between City representatives and HHC to
limit circumstances in which their independent actions, intended to benefit the
community, could be in conflict. In recognition of the longstanding relationship of
HHC and the City and the City's rights to appoint a director of HHC, HHC
acknowledges that the City appointed director should be free to communicate with the
City about issues of mutual interest to the parties, and the City acknowledges that
) I LL)
appropriate confidentiality and fiduciary duties principles will apply in connection
with such communications. In addition, HHC and the City, at the reasonable call of
either the CEO or Mayor /City Administrator, respectively, agree to meet to discuss
matters of mutual interest and coordinate actions when either Party believes it would
be desirable to do so, provided however, that in furtherance of this Section, neither
the City appointed director or HHC is obligated to provide information in a form that
would subject such information to public disclosure as a result of the City's
obligations as a municipality, and further provided, that neither party shall be
obligated under this provision to meet more than twice in any calendar year. Further,
in addition, during any period in which there are Existing Bonds outstanding, the
HHC Board of Directors agrees to exercise its committee appointment authority in a
manner such that at all times during that period, an individual concurrently serving in
one of the following roles at the City (Mayor, City Administrator, City Finance
Director or City Controller) and selected by the City is also serving as a member of
the HHC audit committee. HHC shall have the right to remove the appointed audit
committee appointee for reasonable cause, provided however, that the removed
committee member is immediately replaced on the committee by another individual
holding another of the qualified roles at the City as the City shall select.
10. Representations and Covenants of City. City hereby makes the following
representations and covenants as of the date of this First Amendment and on the
Effective Date of this First Amendment.
10.1 Power and Authority. City has the power and authority to execute and
deliver this First Amendment, and to carry out the transactions contemplated herein.
The Hutchinson City Council, acting on behalf of City in connection with this
Agreement, is the properly appointed, acting and duly authorized governing body of
City, and is acting in accordance with the provisions of all applicable laws and
regulations.
10.2 First Amendment Valid and Binding. This First Amendment is duly
executed and delivered and is a valid and legally binding obligation of City
enforceable in accordance with its terms. The execution and delivery of this First
Amendment does not, and the consummation of the transactions contemplated hereby
will not, result in the creation of any lien, charge or encumbrance or the acceleration
of any indebtedness or other obligation of City, and are not prohibited by, in violation
of or in conflict with any provisions of, and will not result in a default under or a
breach of (i) any constitutional provision affecting City; (ii) any ordinance, law or
regulation; or (iii) any order, decree or judgment or any court of governmental agency
to which City or the Health Care System is a party or is bound.
11. Representations and Covenants of HHC. HHC hereby makes the following
representations and covenants as of the date of this First Amendment and on the
Effective Date of this First Amendment:
) I LO
11.1 Formation of HHC. HHC is a nonprofit corporation duly organized
and in good standing under the laws of the State of Minnesota. HHC has the power to
lease and to own assets and to carry on its business as contemplated under this First
Amendment.
11.2 Power and Authority. HHC has the power to execute and deliver this
First Amendment and to carry out the transactions contemplated herein. All corporate
actions required to be taken by HHC to authorize the execution, delivery and
performance of this First Amendment and all transactions contemplated hereby have
been duly and properly taken.
11.3 First Amendment Valid and Bindine. The First Amendment has been
duly executed and delivered and is a valid and legally binding obligation of HHC
enforceable in accordance with its terms. The execution and delivery of this First
Amendment does not, and the consummation of the transactions contemplated hereby
will not, result in the creation of any lien, charge or encumbrance or the acceleration
of any indebtedness or other obligation of HHC, and are not prohibited by, in
violation of or in conflict with any provisions of, and will not result in a default under
or a breach of (i) any contract, agreement or other instrument to which HHC is a party
or is bound; (ii) any ordinance, law or regulation; or (iii) any order, decree or
judgment or any court of governmental agency to which HHC is a party or is bound.
12. Condition Precedent to Effectiveness of First Amendment. The effectiveness
of this First Amendment is expressly conditioned upon the consummation of the
Transaction, which is currently anticipated to occur on January 1, 2013, and the
prepayment contemplated in Section 2 of the First Amendment (the "Prepayment ").
On the date the Transaction is consummated (the "Effective Date "), and provided the
Prepayment has occurred, this First Amendment shall automatically become
operative. Neither Party shall have any obligations to the other under this First
Amendment until the Effective Date. Upon request, each Party agrees to sign a
declaration confirming the Effective Date of this First Amendment
13. Condition Subsequent. Within ninety (90) days of the Effective Date
referenced in Section 12 above, HHC shall have completed and filed all documents
required by the Internal Revenue Service ( "IRS ") and necessary to support document
the conclusion of the Parties that the Prepayment constitutes an approved remedial
option (within the meaning of applicable IRS regulations) with respect to the Existing
Bonds and a copy of that documentation and communications with the IRS in
connection therewith has been provided to City.
14. City's Costs of Entering First Amendment. On or before the Effective Date of
the First Amendment, HHC shall pay City's reasonable, direct, out of pocket
transaction expenses, including reasonable legal and consulting fees incurred by the
11 cl�
City in connection with the negotiations and transactions in connection with this First
Amendment.
15. Ratification. Except to the extent specifically set forth in this First
Amendment, all provisions of the Lease and Agreement remain unmodified and in
full force and effect.
16. Successors and Assigns. This First Amendment shall be binding upon and be
enforceable by City and HHC and their successors and assigns.
17. Indemnification. In the event that the interest on any Tax Exempt Bonds is
included in gross income of the holders for federal income tax purposes for any
reason, and that fact results in expenses or costs of any kind being incurred by City,
HHC agrees to indemnify the City with respect to any such expenses or costs and to
reimburse the City within 60 days following receipt of notice from the City that such
expenses or costs have been incurred.
18. Counterparts. This First Amendment may be executed in any number of
counterparts, all of which shall be considered one and the same First Amendment,
even though all parties hereto have not signed the same counterpart. Any party shall,
however, deliver an original signature for this First Amendment to the other party
upon request.
) I c-6)
IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the day and year first above written.
CITY OF HUTCHINSON
By:
Its
And by:
Its
[Notary]
HUTCHINSON HEALTH CARE
By:
Its
And by
Its
[Notary]
THIS INSTRUMENT WAS DRAFTED BY
fb.us. 7765061.02
Cb)
EXHIRIT A
Legal Description of the Land
Hospital Land (which also encompasses Medical Office Building [.and):
Beginning at the N W corner of the NW Quarter of Section 7,'F 116N. R29W. Thence South
alung the West line of said NW quarter a distance ol'633 feet to the point of beginning of the
parcel to be described. lhence. continuing South along the West line of the NW' quarter, a
distance of 493.5 feet to the westerly extension of the North Right of Way Line of Century Ave.
SF lhence Easterly, along the North Right of Way line of Century Ave. SF a dislancc of 1218.3
Wei. "Ilhcnee North_ a distance of 500.2 feet to the centerline of Freemoni Ave_ SF. 'Thence West
along dte centerline of Preemont Avc. SE, a distance of 1221.1 feet to the point of beginning and
drove terminating. Exclusive of existing Road Right of Way.
Nursing Home Land:
flie following described Real Estate, situated in the County of Mcleod and State of Minnesota,
rleserihed as follows, to -wit: Beginning at a point 1138.4 feet west and ^_93 feet north of the
southeast corner of Lot 12- Auditors Plat ol'the South Half Section 30 and the North I lalf of
Scetinn 31. i o vns'hip It 7 N, Range 29 W, according to the plat thereof on f is and of record in
the Ul fice of the Register of Deed of Mcleod County, Minnesota: thence north 358.9 legit to the
nurth line of said Lot 12; thence west along said north line of Eut 12 a distance of 74.2: to the
casx�ly t ieht of way line ofTrunk Hwy No. IS; thence southerly along said easterly right ofwav
line 36b 6 frct . thence. east 128 feet to the point of beginning
A \D
Lot 12 Except tracts South 260 feet of West 268 feet and 167.5 feet X'_60 feet and 260 feet X 90
feel and .75 acres in Northwest Corner. Auditors Plat of lot 10, Auditur's Plat South f fall
Section 30 and North Half Section 31 -1 17 -29
AND
'That part of Lot 13 of the Auditor's Plat of the South lialf of Section 30 and the North Hall of
Section :i 1. 7'oi %nship 117, Range 29, described as tollows: Commencing at the Southwest
corner of said Lot 13. thence easterly along the south line of said Lot 13 a distance of 771.18 feet
io the point of beginning of the land to be described: thence northerly, deflecting to the left 90
degrees 00 minutes 00 seconds, 465.00 feet thence westerly. parallel with said ututh line. 266.75
fist to a point 370.00 feet easterly. as measured parallel with said south line frotn the easterly
right of way line of State Hwy No. 15: thence northerly 98.72 feet to the :ouch end of Line A:
(said Lmc A is described as commencing at the intersection of the easterly right of way line of
state f Mvy \o. 15 and the north line of Lot 14 of said Auditor's Plat; thence southerly along said
right of way lint. 139,00 feet: thence easterly, parallel with said north line, 354.48 feet: thence
southerly, deflecdng to the right 90 degrees 02 minutes 00 seconds. 220.13 feet to the north line
of said Len 13 and the beginning of said 1,inc A; thence southerly, along a prolongation of the last
described course. 186.44 feet and said Line A there tenninating) thence northerly- alone ,aid IJnc
A, 1 M 14 feet to the north line of said Lot 13: thence easterly, along said north line of Lot 13,
846.16 lest to the northeast corner of said Lot 13: thence southerly, along the east line of said Lot
11(x)
3, 745.21 feect to the southeast corner of said Lot 13: thence w'estcrly, along the south line of said
I.ot 13, a distance of 547,75 feet to the point of beginning.
Al;o a 60.00 Foot wide easement for access to the above described tract of land. The west line of
said casement is described as commencing at the intersection of the easterly right of way line of
State Hwy No 15 and the north line ol'Lot 14 of said Auditor's Plat; thence southerly along said
right of w'a% line 139.00 fee %, thence easterly, parallel with said north line of Lot 14 a distance of
359.00 feet to the beginning of said west line of the easenlenC thence southerly. deflect ing to the
right 90 degrees 02 minutes 00 seconds, 220.13 fret to the north line of said Lor 13 and said west
line there terminating. (NO'TE: 'The 60.00 foot casement lies outside the cm fimits)
AND
The following described Real Estate, situated in the County of McLeod and State of Minnesota,
desa ibed as follows, urwii: That part of Lot 13 of the Auditor's Plat of the South Half of
Section 30 and the North I lit lVol' Section 31. Township 117 N, Range 29 W, described as folluws:
Commencing at the southwest corner of said Lot 13, said southwest comer being at the
intersection of the south line of said Lot 13 and the west line of-the southeast quarter of said
Section 30h thence easterly. along said south line a distance of 77I . IS feet to the point of
beginning ofthe land to be described: thence northerly.. deflecting 90 degrees W minutes 00
seconds left, a distance of 465.00 feet, thence westerly, parallel with said south line, a distance of
266.71 feet to a pint 370 feet easterly, as measured parallel with said south tine, ofthe easterly
right of way line of State Hwy No. 15: thence southerly, parallel with said right of way line, a
distance L)(46639 feet to said south line of I_ot 13; thence easterly. along said south line. a
distance v1`301.20 ftet to the point of beginning
Shopping Center Land:
Lots One (1) and Two (2) in Block One (1) in CEDAR ACRES SUBDIVISION, according to the
plat thereofon file and of record in the Office ofthe Registrar ufTides. McLeod County,
Minnesota. Excepting therefrom the following described itacC
Beginning at the Northwest corner of said Lot 1. thence Easterly, along the North line of said Lot
I a distance of 23;.71 feet; thence Southerly, deflecting to the right 89 degrees 18 minutes 43
seconds 200.01 feet to the South Ilene of the North 200.00 feet of said Lot l: thence Westerly.
along said South line of the North 200.00 feet of Lot I a distance of 22257 feel to the West line
of Said Lot i : thence Northerly, along said West line of Lot la distance of 200.02 feet to the point
of beginning.
Dassel Medical Center Land:
Lots 1 -1 .k 15. 131"k 6. Village of Dassel
Lots 16 & 17. Block 6. Village of Dassel
Regional E.ve Land:
Lot 8, Block 2, Cedar Acres Subdivision
1 I (36)
Auxiliary Land:
22 feet north ol'suull:ern 22 feet 8 inches, Lot R, Block 49. North Half of City
Birchwood Property:
Lut I, Blocl L Steams Woods
Senior Housing Property:
Beginning at the southeast comer of Section 7 Township 116 Range 29, thence west
along the south line of said Section Seven (7), 2476 feet to a point marked by a stone
set in the public road; which is 1376.2 feet cast of the west line of the Last flalf of the
Southwest Quarter of said Section 7; thence north 778.6 feu to a point marked by an
iron pipe 1376.2 feet east of the west line of the East Half of the Southwest Quarter of
said Section 7; thence Gast parallel to the south line of said Section Seven (7) 2377.1
feet to the center line of a public highway, known as the Hutchinson and Glencoe
road; thence southeasterly along the center line of said road to the south line of
Section Light (8) Township One hundred Sixteen (116) Range Twenty -nine (29);
thence west along the south line of said Section Eight (8) 264 feet to the place of
beginning, containing 45 acres, more or leis, in the County of ivlcLeod and State of
Minnesota
LXccpting therefrom the following:
l hat part of Lot 12 of Auditor's Plat of Section 7, 'Township 116 North. Range 29
West and that part of the Southwest Quarter of the Southwest Quaner of Section 8,
Township 1 16 North. Range 29 West described as follows:
Commencing at the southeast comer of said Section 7; thence West, assumed hearing.
.Mons the south line of said Section 7, a distance of 475.56 feet: thence North 490.12
feet to the point of beginning of the land to be described; thence continuing North
288.48 feel to the north line of said Lot 12; thence Fast, along ,aid north line, 383.32
i'cet to the center line of County highway Vo. 25; thence southeasterly, along said
center line, 317.70 feet to a point hearing Past from the point of beginning; thence
West 516. - ",8 feet to the point of beginning.
EXHIBIT B
Excluded Assets
No Excluded Assets
1996 _
- -- _ - - -
1�97
EXHlBrr C
Motor Vehicles
Dodge Caravan Van
Ford Ambulance
Ford Ambulance
Ford E 50 Pickup'jru
Dod &e Raze Pickup h
GMC Sierra Pickup I`
69
v 1JV JV
IFDXE45FOYHB4'.566
— _
lF74F21L8EB82G12
k �1 B71iC16Y8I S2 ?7536_.__
:k 'IGTEC14V63Z267711 ,
_ 1FDXE45PXSI:aG96S9 _
I FDXE4.5P37DP.37720 -30
1D8GP24R4713156766
) I LL)
EXHIBIT D
Operating Parameters
On or before the 150th day after the end of HHC's Fiscal Year, HHC will submit to the City
its computations and certification of compliance with each of the following parameters (the
"Operating Parameters ") based on financial results audited by a firm of qualified Certified
Public Accountants:
(1) Maximum Annual Debt Coverage Ratio of at least 1.3 times.
(2) Days Cash on Hand of 60 days.
If HHC is not in compliance with any of these Operating Parameters when such
computations are due, the City may require HHC to engage, within forty-five (45) days of
the City's written notice, a management consultant mutually selected by the City and HHC
(the "Consultant ") for the purpose of reviewing the deficiency and making recommendations
regarding the operation and administration of the health care system. HHC shall give full
and prompt consideration to the Consultant's recommendations and, to the fullest extent
feasible and consistent with HHC's charitable mission, its obligations under this Agreement,
and the interests of the community it serves, HHC shall undertake its best efforts to
implement such recommendations. Notwithstanding the foregoing, HHC shall take no action
pursuant to its Workplan or in response to the Consultant's recommendations that would
jeopardize HHC's 501(c)(3), status, compliance with bond covenants under any Existing
Bonds or any future financing issued pursuant to Section 17.10 of the Lease as amended, or
its adherence to legal, regulatory or accreditation standards and requirements. So long as
HHC fails to satisfy any of the Operating Parameters, HHC will provide to the City, not later
than on the last day of each fiscal quarter, or at such other interval as HHC and the City may
agree, a letter from the Consultant (if engaged) to the effect that in his or her judgment, HHC
is implementing such recommendations in orderly fashion. HHC's adherence to the
requirements of this paragraph, including HHC's continued best efforts to implement any
recommendations of the Consultant, shall be deemed to cure any failure to satisfy the
Operating Parameters.
Amendments
The parties acknowledge that the Operating Parameters have been designed as indicators of
financial or quality jeopardy under current market conditions. It is also acknowledged that
the Operating Parameters are also based on Generally Accepted Accounting Principles
( "GAAP ") that currently exists. HHC and the City shall, from time to time, amend the
Operating Parameters as necessitated by changes in GAAP and market conditions in order to
maintain their status as indicators of financial or quality jeopardy, taking into consideration
i l tL)
the performance of similarly situated nonprofit corporations having comparable operations to
HHC's.
Certain Definitions:
Days Cash on Hand: means the result of dividing the Unrestricted Liquid Funds of HHC by
daily operating expenses. Daily operating expenses is computed by dividing Total Operating
Expenses less depreciation and amortization expense for such Fiscal Year by the number of
days in that Fiscal Year.
Existing Bonds: The Bonds defined under Section 1.18 of the Lease as amended.
Fiscal Year: Each 12 month period ending on the date specified in the Bylaws of HHC.
Currently, the fiscal year ends on December 31.
Generally Accepted Accounting Principles (GAAP): GAAP is the standard framework of
guidelines for financial accounting, as established in the United States of America. It
includes the standards, conventions, and rules accountants follow in recording and
summarizing transactions, and in the preparation of financial statements. GAAP for this
purpose means those guidelines and rules applicable to HHC.
Lease: That certain Lease dated December 31, 2007 by and between City of Hutchinson and
Hutchinson Health Care, as amended by the First Amendment and any subsequent
amendments adopted by the parties to such Lease.
Long -Term Debt: All obligations which appear as a long -term liability on HHC's financial
statement in accordance with GAAP, including but not limited to revenue bonds, capital
leases, bank or installment debt, and contracts for deed, plus or minus any amounts for
unamortized discounts /premiums or deferred losses on refunding. However, Long -Term
Debt excludes the debt to the City related to the payment required in Section 3.1 of the Lease
Agreement.
Maximum Annual Debt Coverage Ratio: Net Revenues for a Fiscal Year divided by the
Maximum Annual Principal and Interest Requirement due in future fiscal years. The ratio is
to be computed based on HHC's audited financial statements. For any computation that
requires reference to one or more Fiscal Years prior to the effective date of the Lease
Agreement, the ratio is to be computed using the Net Revenues and Maximum Principal and
Interest Requirement from the applicable Fiscal Year audited financial statements of the City
enterprise Hutchinson Area Health Care.
Maximum Annual Principal and Interest Requirement: The sum of the maximum
principal and interest payments required to be paid in any future Fiscal Year on Long -Term
Debt. If a Long -Term Debt issue has a balloon payment, for the purposes of this
computation that balloon payment is to be amortized over a period of years equal to the
lesser of 30 years less the total number of years that the issue has been outstanding (from
) ) C6)
inception) prior to the date of the balloon payment, or the remaining useful life of the asset
being financed. For purposes of the preceding sentence, the "remaining useful life" shall be
defined as the number of years remaining until the asset is fully depreciated per the
depreciation schedule maintained by HHC in accordance with GAAP. The interest rate to be
applied during this period is equal to the rate required to be paid on the issue in the fiscal
year preceding the balloon payment. The principal and interest amortization for the Fiscal
Years including and subsequent to the balloon payment is to be computed assuming an equal
annual amortization. If Long -term Debt includes a debt issue that has a variable interest rate,
for purposes of computing future year interest requirements, the interest rate to be used is the
rate in effect at the end of the Fiscal Year for which this computation is being made.
Net Revenues: The aggregate of all operating and nonoperating revenues less Total
Operating Expenses, except excluding (1) depreciation (2) amortization and (3) interest
expense of HHC, all determined in accordance with GAAP, for a Fiscal Year. However, Net
Revenues are to exclude any (1) contribution or investment income that has been restricted
by its donor for endowment (permanently restricted) purposes (2) unrealized gains and losses
on investments (3) extraordinary or non - recurring items including gains or losses on
refinancing, extinguishment of indebtedness, gains or losses of sales or other dispositions of
property not in the ordinary course of business.
Total Operating Expenses: All expenses reported as operating expenses, in accordance with
GAAP, that HHC reports for a Fiscal Year, including (1) depreciation (2) amortization and
(3) interest expense.
Unrestricted Liquid Funds: means (i) unrestricted cash, (ii) cash equivalents, (iii) escrow
funds, if any, under that certain Escrow Agreement effective December 31, 2007 by and
between HHC and the City of Hutchinson, and (iv) board designated marketable debt and
equity securities, but excluding and exclusive of: (1) all trustee -held funds; and (2) borrowed
funds that are entrusted with a lender.
EXHIBIT E
(Excerpt from 2012 Bylaws)
DIRECTORS
SECTION 1.1 Number and method of election. The Board of Directors of this
corporation shall consist of an odd number of no fewer than seven (7) and no more than eleven
(11) persons, and, subject to such limitation, the number of members of the Board of Directors
shall be such as may be designated from time to time by the Board of Directors. There shall be
one (1) City Director and an equal number of Physician Directors and Community Directors,
each as defined below. Each category of directors shall be elected or appointed as set forth
below, subject to the limitations in Section 1.2, and in accordance with the nominations process
described in Section 4.5 of these Bylaws.
(a) City Director. The City Director shall be appointed by the City Council of the
City of Hutchinson, Minnesota (the "City Council "). This person may concurrently serve as a
member of the City Council.
(b) Physician Directors. The Physician Directors shall be appointed by Hutchinson
Medical Center, P.A. ( "HMC "). These persons need not be physicians.
(c) Community Directors. The Community Directors shall be elected by the Board of
Directors of this corporation at the annual meeting of this corporation. The majority of the
Community Directors shall be residents of the hospital's Geographic Service Area at the time of
election, and of those, at least one director shall be a resident of the City. The Geographic
Service Area shall mean the area composed of the lowest number of contiguous zip codes from
which the hospital draws at least 75 percent of its inpatients during the previous fiscal year.
(d) Ex Officio Director. There shall be one (1) Ex Officio Director, who shall be the
physician serving from time to time as the Chief of the Medical Staff of the hospital. The Ex
Officio Director shall not have voting rights. An Ex Officio Director may simultaneously serve
as a voting City Director, Physician Director or Community Director if appointed or elected as
such.
SECTION 1.2 Board Composition. The composition of the Board of Directors is
subject to the following limitations:
(a) Credentialed practitioners. At any given time, less than one -half of the voting
directors may be health care professionals credentialed to provide services at the hospital or any
other health care facility owned by this corporation.
Q
(b) Directors of other systems. At any given time, a majority of the voting directors
of this corporation shall be persons who are neither: (i) directors of any other health care
providers or health care systems residing outside the hospital's Geographic Service Area; nor (ii)
directors of any single health care provider or health care system.
(c) Employees. No employee of this corporation shall be a member of the Board of
Directors; provided, however, that this requirement shall not apply to health care professionals
credentialed to provide services at the hospital or any other health care facility owned by this
corporation.
SECTION 1.3 Terms. Except as otherwise provided in Section 1. 1, each director
of this corporation other than the Ex Officio Director shall be elected or appointed to serve for a
term of three years, and, unless the Board of Directors has determined that a successor will not
be elected or appointed, until his or her successor has assumed office; or until the director's prior
death, resignation or removal. Directors (other than the Ex Officio Director) are limited to
serving three consecutive terms. The term of office of the Ex Officio Director shall be
coterminous with his or her term as Chief of the hospital's Medical Staff. The Board of
Directors shall each be divided into three classes as nearly equal in number and category as
possible, so that the terms of office of approximately one -third of directors shall expire each
year.
SECTION 1.4 Compensation. Directors shall not receive compensation for
their service as directors; provided, however, that this corporation may reimburse directors
for reasonable and necessary expenses incurred while performing the duties of a director.
SECTION 1.5 Removal; resignation; vacancies. Any director may at any time be
removed with or without cause by the Board of Directors; provided, however, that a City
Director may be removed by the Board of Directors only for cause by the affirmative vote of
two - thirds of the directors of this corporation. For purposes of the foregoing sentence, "cause"
shall mean breach of fiduciary duty. A City Director may also be removed with or without cause
by the City Council. Any director may resign at any time by giving written notice to the Chair or
the Secretary. The resignation shall be effective without acceptance when the notice is received
by the Chair or the Secretary, unless a later effective date is specified in the notice. Any vacancy
occurring because of the death, resignation or removal of a Community Director may be filled by
a person elected by the Board of Directors for the unexpired term of such director. Any vacancy
occurring because of the death, resignation or removal of a City Director or Physician Director
shall be filled by a person appointed by the City Council or HMC, respectively; which shall fill
the vacancy within 60 days following the date the vacancy occurs. All directors elected or
appointed to fill any such vacancies shall comply with the requirements of Section 1.1 and
Section 1.2 of these Bylaws.
-2- 11 (�)
0
Brief Summary of Factors
Integration objectives are beneficial to the community
2. Integration entity can bring together clinical and service line planning, strategic planning
and coordinated budgeting; stability for physicians and other local health care providers;
physician- driven organization
3. Integration entity can be the focus for global contracting, shared savings, integrated
quality improvement, evolving focus on "total cost of care', patient experience, and population
health, etc.
4. Continuing City connections
Communications and input
Consultation in "change of control' situations
Continues as landlord
5. City receives additional cash and continuity of lease cash flows
6. City relieved of exposure on outstanding General Obligation Bonds
L�
0
i(,6)
City of Hutchinson
Appoint Minority of city Council
Board of Directors
------------------
Health Care
Enterprise
Springing Membership Rights
— proceeds after sale
— assets upon dissolution
— step -in rights in certain events
— amendment approval rights
— "end game" transaction approvals
Lease of Real Estate
New Nonprofit Healthcare Provider Personal Property
and turn over other
Board of operating assets
Directors
Annual rent
$[160,000], plus
debt service
• •
to
0 • 0
A F
S
To: Hutchinson Fire District - Citizens, Mayors, Council Members, and Township Supervisors
From:Brad Emans, Fire Chief
Date: 10/01/2012
This is the monthly report on the Activities of the Hutchinson Fire
Department for September 2012
Fire Department Response: The Fire Department responded to 42 calls for service in the
month of September.
"Fire Officer Only" Response: A "fire officer only" responded to13 calls in September
saving the Hutchinson Fire District the cost of a "general' alarm estimated at $2,366.00 for
the month.
Response Time (First Emergency Vehicle "Out of the Door "): September — 3 minutes 32
seconds.
Example of a Few of the Calls your FD responded to:
• Firefighters responded to a du -plex deck fire in the southwest part of the city
when the resident improperly discarded their cigarette on the deck. Firefighters
extinguished the flames and then used the "TIC' (thermal imagine camera) to
check for fire extension in the basement unit;
• Firefighters responded to a out of control grass fire in the northeast part of the fire
district when the property owner decided to conduct a running fire during these
extremely dry conditions and without a permit;
• Firefighters responded to a VERY unusual rescue call the northeast part of the
city when the resident stuck his finger in the gasoline fill pipe on the automobile
trapping the finger. Firefighters had to eventually cut the fill pipe off, pry the tube
open, and then were able to release the finger from the pipe;
• A Fire Officer responded to a call that a resident had two small LP gas cylinders
leaking on his grill in the southwest part of the city. The officer was able to vent
the tanks off safely eliminating the danger;
Firefighters responded to two motorcycle accidents that happened at the same
time '' /< of a mile apart, in the northwest part of the fire district. One victims was air
lifted to a hospital, the other was transported to HAHC;
• A Fire Officer was called to examine what an on -site worker thought might be a
pipe bomb in the northeast part of the city. The pipe turned out to be a tube of
caulking;
• Firefighters responded to a one vehicle accident / possible multiple trapped
victims / vehicle is on fire, in the southwest part of the rural fire district.
Unfortunately the two victims involved died on scene;
• Firefighters responded to the carbon monoxide poisoning to one of our
firefighters. While working at his full time job, one of our firefighters was overcome
by CO and incomplete burning of gasoline in a faulty piece of equipment;
• Firefighters responded to a Freon leak in a residential basement in the southeast
part of the city. Freon removes oxygen and renders one unconscious in a few
minutes. Fortunately, nobody was injured in this call;
• Arson - Somebody dragged on and then burned a mattress on the old abandon
railroad bridge over the Crow River in the southeast part of the city catching the
bridge bed on fire. In our opinion, the bridge is too dangerous to cross now.
Type of the Calls for the Month:
City
Type of Call
Number
Residential
5
Commercial /Industrial
7
Multi-Family
1
School
2
Grass
3
Medical
5
CO
!1
Rescue
2
Haz -Mat Leak/Spill
5
Vehicle
0
Sky-Warn
0
Mutual Aid
0
Total
31
Structure Fires
1
Arson
2
• Page 2
a19)
Rural:
Type of Call
Number
Residential
0
Commercial / Industrial
0
School
0
Farm Building
0
Grass
1
Medical
4
CO
0
Rescue
3
Haz -Mat Leak/Spill
1
Vehicle
1
Mutual Aid
1 (McLeod Co.
Sheri
Total
11
Structure Fires
0
Arson
0
Training: Firefighters Trained on the Following Topics /Equipment:
• Firefighters spent the month working on the requirements to maintain their "First
Responder / EMT" designations;
• Firefighters worked on fire equipment and firefighter gear in preparation for the
change of seasons. However, I try not to think of 'Winter";
• Individual FF's worked with the Lieutenants on equipment sign -off. In our system
of "everyone' is cross trained in all aspects of firefighting, it is critical that they take
the initiative to complete this task.
Fire Prevention / Public Relations / Other Information:
• "Change Your Clock - Change the Batteries" in your Smoke Detectors and
Carbon Monoxide Detectors in October;
• The FD held a VERY successful "Open House" in September. Firefighters were
pleasantly surprised at how many adults and children came down to explored the
fire trucks, fire equipment, and the fire station;
• The rental inspections are winding down for 2012. Approximately 145 new
"single family" rental homes were registered and inspected in 2012, along with
another 650 + /- units representing 1/3 of the rental units in Hutchinson. The
majority of violations in 2012 have been excess clutter, combustible material
storage, and carbon monoxide detector failure.
• Page 3
Measurements:
1. Number of calls that required more than one engine, and five firefighters in
September: 7
2. Number of Calls that required investigation in September: 4
3. Estimated dollars "saved" in property (building and contents) by the fire
department response for the month of September: $750,000
4. Estimated dollars `lost' in property (building and contents) to fire in September:
$750.00
• Page 4
Hutchinson Public Library Board Minutes
Monday July 23, 2012
Present: Guy Stone, Roger Vacek, Jon Ross, Abby Dahlquist, Dianne Wanzek, Mary Christensen and Mary Henke, Ex-
Officio.
Excused: Stacey Nass
Guy Stone called the meeting to order. The minutes from the last meeting were read. Jon made a motion that the
minutes be approved and Roger Vacek seconded the motion. Motion passed.
Old Business:
Mary reported on the bus trip to the Laura Ingalls Wilder Pageant on July 7 saying the comments were positive. 20 buses
were taken to the pageant. The Hutch -W insted bus had 2 empty seats when someone had to cancel and substitutes
could not be found on late notice.
Lori Pikell- Stangel from the McLeod County Museum will be presenting the program of a series of 3 on the US /Dakota
Conflict of 1862. The children's program will be presented on July 26. The adult & teen program will be presented on
August 27`h and board members are asked to come early and help set up & serve refreshments for the program at the
library.
New Business:
Mary reported that she and Jackee from the Glencoe Library attended the monthly meeting of the PLS finance /executive
committee. Fairfax has a new library but is having some internet issues but is able to check books in/out. The committee
is looking into investing funds at Bremer Bank when they are not being used but must meet guidelines. There was also
an incident at the Glencoe library that involved the Glencoe police concerning privacy of library patrons. PLS will be
reviewing their privacy policies with the PLS Policy Committee with input from lawyers.
Sherry Lund gave us an update on the Summer Reading Program. Stories in the Park had a visit from author Mary
Casanova which was funded by Legacy Funds. The visit by the Zoomobile had the highest attendance other than the
Schiffelly Puppets which will be here in August. The READ program will finish up its season July 26. The Animal Talks
program featured hand - raised silver fox, an emu chick, a wallaby, and camel. Sherry also showed board members the
prizes that are being offered as incentives this summer. There are also contests. Sherry found that the 1'` -3r° graders have
been reading the most and girls outnumber the boys.
Roger Vacek made a motion that the meeting be adjourned. Mary C. seconded the motion. Meeting adjourned.
Our August 27, 2012 meeting is cancelled unless something important comes up.
Submitted by Abby Dahlquist, Secretary.
1 a(,6)
Weed Notices
Monthly Report
September 2012
Monthly Summary of Weeds/Tall Grass Noncompliance
A summary of weed notices sent to properties not in compliance with Chapter § 92.35 Weed
Ordinance, of the Hutchinson City Code of Ordinances can be found below. Seven (7) business
days were given to those receiving notice to remove weeds /tall grass on their property.
Number of properties that received a removal notice
4
Number of properties cleared by City order
0
Number of properties pending compliance at month's end
4
Properties that were ordered to be cleared by the City
House
Street
Quadrant
Property Owner
City PID
Beverly E Scheurer
4436 Washington Blvd
465
Water St
NW
Madison Lake, MN 56063
31- 117 -29 -12 -0360
Beverly E Scheurer
4436 Washington Blvd
430
Water St
NW
Madison Lake, MN 56063
31- 117 -29 -12 -0270
Chadene J Anderberg
c/o Glen Anderberg
514 Sioux Lane
141
5th Ave
NE
St Peter, MN 56082
31- 117 -29 -10 -0140
Hutchinson Area Health Care
Go Pam Larson
1095 Hwy 15 South
1470
Calgary Ln
SE
Hutchinson, MN 55350
07- 116 -29 -15 -0130
DZC-)
MINUTES
Parks, Recreation & Community Education Advisory Board
August 6, 2012
Members present were Jim Waldron, John Rodeberg and Jay Bartholomew. Also present were Dolf
Moon and Karen McKay.
The meeting was called to order at 5:15 pm.
A motion was made by John Rodeberg and seconded by Jim Waldron to approve the minutes dated June
4, 2012. The board unanimously agreed.
OLD BUSINESS
Facility Improvements — The Facility Improvement Committee has identified $750,000 worth of repair
projects to be completed annually. Included in the projects is the replacement of the east rink roof the
rink systems and dehumidifiers. The projects may be bid out separately or bundled if it can save money.
Summer Program — Registration numbers for summer youth programs were level. Adult softball and sand
volleyball teams registered was down. Fees have remained the same for adult sports; participants are too
busy to participate. The Greenway and USA Soccer Camps are not run through the PRCE Department.
Church/Theatre — The Hutchinson Theatre Company production of Smoke on the Mountain had five sell
out performances in the Church. It generated $5,000 in rental revenue. There may to two more Smoke on
the Mountain follow -up performances, one in January and another in the fall of 2013.
Depot Update — The Depot sewer lines need to be relocated before the Depot is relocated prior to winter.
NEW BUSINESS
Arts Grant — The Arts Center received a $4,500 grant for a "River Walk" scheduled for September 8`h. A
drum circle will take place where a person will lead citizens to the beat of a drum along the Crow River
beginning at the Little Crow Statue to Stearnswood. There will be children's activities such as chalk art
on the sidewalk. This is a cooperative effort between the Public Arts Commission and the Center for the
Arts. Burich Arena is the rain location
School Fields — The new fields at the school are in full use after three years of grooming. They will
continue to be improved with fertilizing and over seeding.
Linden Park Status — Storm water management information gathering continues and discussions will
begin regarding the ball field improvement or pool improvement. The current pool expenses for the
summer are around $15,000 as the pumps and heaters age and need replacement and repairs. Discussions
continue with the hospital privatization and the money that would be used for family wellness.
Comp Plan/Downtown Plan — The City's Comprehensive Plan process began 14 months ago. All
departments are included. The engineering firm, SEH will pull together the information and present
graphics. The Downtown Plan in 2001 included the cornerstone commons building. A focus group will
meet to discuss the vision of downtown Hutchinson in the future. One site under consideration is the
corner of Third Avenue NE and Franklin Street, the property is on the flood fringe.
September Meeting — The first Monday in September is Labor Day; the board will not meet. The next
regular meeting will be Monday, October 1 st.
iac�)
runo 1910
PRCE Advisory Board
August 6, 2012
Page two
BOARD MEMBER ITEMS
John told the board that attendance at River Song was greater than 2,000; an increase over last year's
number. Vendor sales were good. The permanent stage worked out well. The group will seek a grant to
provide a permanent roof over the stage next year.
The meeting was adjourned at 6:00 pm by a motion made by John Rodeberg and seconded by Jay
Bartholomew. The Board unanimously agreed.
I C�-Lj)