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cp09-23-2014No Workshop AGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 23, 2014 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Vineyard United Methodist Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY • PROCLAMATION — INTERNATIONAL WALK TO SCHOOL DAY — OCTOBER 8, 2014 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 9, 2014 Action — Move to approve /reject the minutes of the regular meeting of September 9, 2014 7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) 5 min. (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14328 - RESOLUTION TO SELL AT AUCTION SURPLUS POLICE DEPARTMENT PROPERTY (MOTOR VEHICLES) 2. RESOLUTION NO. 14329 — RESOLUTION TO SELL AT AUCTION FORFEITED AND UNCLAIMED PROPERTY (MOTOR VEHICLES) 3. RESOLUTION NO. 14333 -RESOLUTION APPOINTING ELECTION JUDGES FOR THE NOVEMBER 4, 2014, GENERAL ELECTION (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF ONE TO TWO POLE AND FABRIC TYPE TEMPORARY STORAGE STRUCTURES LOCATED AT 900 HWY 7 WEST WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14322) 2. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE OPERATION OF A RECYCLEABLE MATERIAL COLLECTION CENTER IN AN I -1 ZONING DISTRICT WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 1432 1) 3. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF A MULTI- FAMILY BUILDING IN AN R -4 ZONING DISTRICT LOCATED AT 875 CENTURY AVENUE SW WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14323) CITY COUNCIL AGENDA SEPTEMBER 23, 2014 4. CONSIDERATION OF DEVELOPMENT AGREEMENT WITH CENTURY COURT III, LLC (c) CONSIDERATION FOR APPROVAL OF REQUEST BY CROW RIVER WINERY TO DISPENSE WINE AT MCLEOD COUNTY FAIRGROUNDS ON OCTOBER 4, 2014 (d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NOS. 2 & 3 - LETTING NO. 3, PROJECT NO. 14 -03 (2014 PAVEMENT MANAGEMENT PROGRAM) AND CHANGE ORDER NO. 2 — LETTING NO. 1, PROJECT NO. 14 -01 (2014 JEFFERSON STREET SE FROM OAKLAND AVENUE SE TO CENTURY AVENUE SE) (e) CONSIDERATION FOR APPROVAL OF REVISIONS TO LETTING NO. 3, PROJECT NO. 14 -03 ASSESSMENT ROLL (f) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL REQUEST FOR KEITH MESSNER TO ATTEND UNIVERSITY OF WISCONSIN SOIL ENGINEERING FOR NON -SOILS ENGINEERS AND TECHNICIANS COURSE IN MADISON, WISCONSIN ON OCTOBER 27 -28, 2014 (g) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL REQUEST FOR DAN HATTEN TO ATTEND THE INTERNATIONAL CHIEFS OF POLICE ASSOCIATION TRAINING CONFERENCE IN ORLANDO, FLORIDA FROM OCTOBER 25-28,2014 (h) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL REQUEST FOR TOM KLOSS AND ANGIE RADKE TO ATTEND A UTILITY BILLING DEMONSTRATION IN LANSING, MICHIGAN (i) CONSIDERATION FOR APPROVAL OF ANNUAL SPOOKY SPRINT EVENT ON OCTOBER 25, 2014 (j) CONSIDERATION FOR APPROVAL OF ALLOWING HUTCHINSON HOCKEY ASSOCIATION TO USE CIVIC ARENA PARKING LOT FOR "ICE- IN/HOG ROAST FALL HOCKEY EVENT ON OCTOBER 11, 2014 (k) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER A [Action] — Motion to approve /rej ect those items contained under the consent agenda. 7A. CONSENT AGENDA (a) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — REGISTER B [Action] — Motion to approve /reject Council Check Register B 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10 min. (a) DISCUSSION OF AMENDING SECTIONS OF CHAPTER 112 —LIQUOR REGULATIONS OF THE HUTCHINSON CITY CODE 2 CITY COUNCIL AGENDA SEPTEMBER 23, 2014 This item is for discussion only — no action required 10. UNFINISHED BUSINESS 11. NEW BUSINESS 5 min. (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14334 —AUTHORIZING ISSUANCE OF $4,120,000 GENERAL OBLIGATION BONDS 2014A [Action] — Motion to approve /deny Resolution No. 14334 5 min. (b) CONSIDERATION FOR APPROVAL OF PUBLIC EASEMENT RIGHTS ACQUISITION AT ISLAND VIEW HEIGHTS TOWNHOME ASSOCIATION [Action] — Motion to approve /deny accepting easement from Island View Heights Townhome Association 10 min. (c) CONSIDERATION FOR APPROVAL OF ITEMS FOR WASTEWATER TREATMENT FACILITY SOLAR PV INSTALLATION PROJECT (LETTING NO. 12, PROJECT NO. 14 -12) [Action] — Motion to approve /deny Resolution No. 14331 — Ordering Preparation of Report on Improvement, Resolution No. 14332 — Receiving Report and Calling Hearing on Improvement and Publication No. 8082 — Notice of Hearing on Improvement 10 min. (d) CONSIDERATION FOR APPROVAL OF WATER AND WASTEWATER DEPARTMENTS TEMPORARY MANAGEMENT/LICENSURE SUPPORT ITEMS [Action] — Motion to approve /deny proposed job descriptions and /or consultant services agreements 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy that guides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 4, 2014 (b) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM AUGUST 5 AND SEPTEMBER 2, 2014 (c) WEED NOTICES MONTHLY REPORT FOR AUGUST 2014 (d) CITY OF HUTCHINSON FINANCIAL REPORT FOR AUGUST 2014 (e) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR AUGUST 2014 (f) PLANNING COMMISSION MINUTES FROM AUGUST 19, 2014 13. MISCELLANEOUS 14. ADJOURN Official International Walk to School Day Proclamation October 8, 2014 Whereas, the lives of hundreds of children could be saved each year if communities take steps to make pedestrian safety a priority. Whereas, a lack of physical activity plays a leading role in rising rates of obesity, diabetes and other health problems among children and being able to walk or bicycle to school offers an opportunity to build activity into daily routine. Whereas, driving students to school by private vehicle contributes to traffic congestion and air pollution. Whereas, an important role for parents and caregivers is to teach children about pedestrian safety and become aware of the difficulties and dangers that children face on their trip to school each day and the health and environmental risks related to physical inactivity and air pollution. Whereas, community leaders and parents can determine the "walkability" of their community by using a walkability checklist. Whereas, community members and leaders should make a plan to make immediate changes to enable children to safely walk and bicycle in our communities and develop a list of suggestions for improvements that can be done over time. Whereas, children, parents and community leaders around the world are joining together to walk to school and evaluate walking and bicycling conditions in their communities. Now Therefore, Be It Resolved that I, Steve Cook, City Mayor, proclaim October 8th, 2014, "Walk/Bike to School Day" in (Hutchinson, MN) and encourage everyone to consider the safety and health of children today and every day. MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 9, 2014 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Gary Forcier, Mary Christensen, Bill Arndt and Chad Czmowski. Others present were Marc Sebora, Interim City Administrator, Kent Exner, City Engineer and Jody Winters, Attorney 2. INVOCATION —Pastor Deb Walkes, Vineyard United Methodist Church, delivered the invocation. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Mayor Cook commented on the paving of the Luce Line Trail from the Utilities plant site located at Hwy 7/Hwy 15 to Main Street as well as all the landscaping and aesthetics improvements made at the plant site. All of this work was completed as a combined project between the City and Hutchinson Utilities Commission. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF AUGUST 26, 2014 Motion by Christensen, second by Forcier, to approve the minutes of the regular meeting of August 26, 2014. Motion carried unanimously. 7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 14 -732 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 875 CENTURY AVE S.W. FROM R -3 (MEDIUM DENSITY RESIDENTIAL) TO R -4 (HIGH DENSITY RESIDENTIAL) FOR DEVELOPMENT OF AN APARTMENT COMPLEX AS REQUESTED BY CENTURY COURT HI, LLC, PROPERTY OWNER (SECOND READING AND ADOPTION) 2. ORDINANCE NO. 14 -733 — AN ORDINANCE AMENDING CHAPTER 154 (ZONING) OF THE CITY OF HUTCHINSON CODE OF ORDINANCES ADDING LANGUAGE IN SECTIONS 154.062 — 154.066 ALLOWING TAP ROOMS AND BREW PUBS BY CONDITIONAL USE PERMIT AND ADDING LANGUAGE IN SECTION 154.067 TO ALLOW TAP ROOMS BY CONDITIONAL USE PERMIT (SECOND READING AND ADOPTION) (b) CONSIDERATION FOR APPROVAL OF ISSUING SHORT -TERM GAMBLING LICENSE TO CROW RIVER CUTTERS — NATIONAL WILD TURKEY FEDERATION ON FEBRUARY 6 & 7, 2015, AT MCLEOD COUNTY FAIRGROUNDS (c) CONSIDERATION FOR APPROVAL OF ISSUING PARADE PERMIT TO HUTCHINSON CITY COUNCIL MINUTES SEPTEMBER 9, 2014 HIGH SCHOOL ON SEPTEMBER 26, 2014, FOR HOMECOMING PARADE (d) CONSIDERATION FOR APPROVAL OF APPOINTING MAYOR STEVE COOK, COUNCIL MEMBER CHAD CZMOWSKI AND INTERIM CITY ADMINISTRATOR MARC SEBORA TO CITY OF HUTCHINSON/HUTCHINSON UTILITIES COMMISSION PILOT SUBCOMMITTEE (e) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 6(d) was pulled for separate discussion. Motion by Christensen, second by Forcier, to approve those items contained under the consent agenda with the exception of Item 6(d). Motion carried unanimously. Item 6(d) had further discussion. Council Member Forcier asked if this is anew subcommittee or if it has been a committee that has been meeting previously. Mayor Cook noted that these City individuals have met before with representatives of HUC to discuss the payment in lieu of taxes received from Hutchinson Utilities Commission, however since the annual workshop with the HUC, it was agreed to reform a formal subcommittee with three representatives from HUC (Hanson, Girard and Carter). Motion by Forcier, second by Cook, to approve Item 6(d). Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS, REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF POLICY RELATING TO MAINTENANCE OF SIGN RETROREFLECTIVITY STANDARDS John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the Federal Highway Administration and the Minnesota Department of Administration have been working to establish retroreflectivity standards for signs critical to the safe, orderly use of roadways. A large part of these new standards is due to the increasing number of elderly drivers. The Minnesota Manual on Uniform Traffic Control Devices now includes a requirement for road authorities to establish policies /management methods to ensure critical road signs are legible at all hours. Cities do not need to include parking signs, bikeway signs and other miscellaneous signs in the standards, therefore City staff is recommending that these signs not be included in the policy. Staff has proposed a resolution and policy that comply with the new requirements. The Public Works department has established practices to support the policy which will improve sign visibility and legibility. These practices began this summer with establishment of a sign inventory for high- priority streets. The City's budget will not be impacted by the implementation of this policy, however as signs are replaced to meet retroreflectivity standards, the costs of replacement signs will go up, which is anticipated in 2016. Motion by Czmowski, second by Forcier, to adopt policy relating to maintenance of sign retroreflectivity standards. Motion carried unanimously. 2 CITY COUNCIL MINUTES SEPTEMBER 9, 2014 (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14327 - A RESOLUTION REVISING CITY OF HUTCHINSON FEE SCHEDULE (BREWERS /TAPROOM LICENSE) Marc Sebora, Interim City Administrator, presented before the Council. Mr. Sebora explained that with the recent passage of the ordinance implementing brewers in the City of Hutchinson, the Council discussed at the last meeting to perhaps have license fees of $600 for on -sale licenses and $300 for off -sale licenses. Mayor Cook suggested perhaps a higher fee for off -sale licenses. Motion by Czmowski, second by Cook, to set $375 for off -sale licenses and $600 for on- sale licenses, adopting Resolution No. 14327 revising the City's fee schedule to include fees for brewers /taprooms. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2015 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14324) Andy Reid Controller, presented before the Council. Mr. Reid noted that in accordance with state statute, the City must certify a preliminary 2015 tax levy by September 15, 2014, for the HRA operations. The HRA's 2015 statutory tax levy limit is $155,553 which is a slight increase from the 2014 tax levy of $153,521. Motion by Arndt, second by Czmowski, to adopt Resolution No. 14324. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2015 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14325) Andy Reid, Controller, presented before the Council. Mr. Reid noted that in accordance with state statute, the City must certify a preliminary 2015 tax levy by September 15, 2014, for the EDA operations. The EDA's 2015 statutory tax levy limit is $152, 442 which is a slight increase from the 2014 tax levy of $150,450. Motion by Czmowski, second by Forcier, to adopt Resolution No. 14325. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2015 GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT RESOLUTION NO. 14326) Andy Reid, Controller, presented before the Council. Mr. Reid explained that two Council workshops have been held regarding the general fund budget and the proposed tax levies. Since the last workshop which was held last week, a few changes have been made to the general fund budget. At the workshop last week, the Council discussed how to gap a $160,000 deficit. This gap will be resolved with a combination of savings in health insurance costs with a minor change in the plan and utilizing additional local government aid. With these changes, the preliminary general fund levy will be certified to the county at a 0% increase. The debt levy is preliminarily set at $2,177,193, which is a 5% increase over the 2014 levy. This increase is consistent with the City's Debt CITY COUNCIL MINUTES SEPTEMBER 9, 2014 Management Plan where the City increases the debt levy 5% each year until the target levy of $2,200,000 is reached. In 2016, the City will need to raise the debt levy 1% to reach the target levy. Mr. Reid also reviewed the proposed five -year budget. Mr. Reid also reviewed the future use of excess LGA funds. Mr. Reid reviewed the debt management plan and how it affects the debt levy. Mr. Reid also reviewed a history of market values in the City of Hutchinson. He has received information from the County Assessor that market values will remain the same in 2015 as in 2014. The proposed net levy is $6,656,639 with a 0% general fund debt levy increase and a 5% debt service fund levy increase. Motion by Christensen, second by Cook, to adopt Resolution No. 14326. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF SETTING TRUTH IN TAXATION HEARING DATE Mayor Cook explained that based on the preliminary levy, all property owners will receive a tax statement with their proposed property tax for 2015. Property owners will then have an opportunity to appear at a truth in taxation hearing to address the proposed levy. Andy Reid explained that the hearing must be held between November 25 - December 30 and must occur after 6:00 p.m. At the hearing, discussion of the 2015 budget and tax levy will be held and the public will be allowed to speak. Motion by Christensen, second by Arndt, to set the date for the 2014 truth in taxation hearing for December 2, 2014, at 6:00 p.m. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF RE- SETTING CITY COUNCIL MEETING SET FOR NOVEMBER 11, 2014 Motion by Czmowski, second by Cook, to reset the November 11, 2014, Council meeting to November 12, 2014, at 5:30 p.m. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy that guides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items.) 13. MISCELLANEOUS Mary Christensen — Council Member Christensen noted that she has received calls from citizens who are confused on the new bicycle roadway stamps. The citizens are wondering if these are the only locations that bicyclists can ride on. Mayor Cook suggested putting something on the City's web site and distributing a handout to help educate bicyclists. Mayor Cook suggested also putting an educational video on HCVN or on the City's web site as well. Kent Exner, City Engineer, noted that he will look into all of those things, but essentially bicyclists should operate just as motorists, which means they have a right to the roadway. Council Member Christensen also commented that the Historic Hutchinson Cemetery Tour will be 11 CITY COUNCIL MINUTES SEPTEMBER 9, 2014 held September 21, 2014, and will be honoring veterans Bill Arndt — Council Member Arndt noted that he has been contacted by a resident that would like a new boulevard tree planted that has been dead since June. He has contacted forestry department. Kent Exner and Marc Sebora will look into this matter. Gary Forcier — Council Member Forcier asked if outdoor patio seating for restaurants would be worked on yet this year. Kent Exner noted that he has contacted MnDOT about use of their right of way on Hwy 15/Main Street and they will be putting together a meeting to discuss this topic. Mayor Cook asked if Marc Sebora could begin working on considering different options for outdoor patios— such as through franchise agreements or on liquor licenses, etc. Mr. Sebora noted that he could have some initial discussion items at the next Council meeting on this item. Marc Sebora — Mr. Sebora provided an update on the City Administrator executive search. The recruiter has informed him that 42 applicants have submitted a resume to be considered. The recruiter is narrowing those applicants down to 10 -15 finalists. When that list is put together, information will be forwarded on to the Council Members. Kent Exner — Mr. Exner explained that Hwy 22 between Hutchinson and Glencoe with mill and overly reconstruction is intended to begin in October this year. Mr. Exner also spoke of a demonstration put on by a local contractor on a portion of South Grade Road on a new milling process. Lastly, Mr. Exner provided an update on the pavement management program. Mayor Cook — Mayor Cook provided a review of items discussed earlier at a workshop held regarding the City's liquor code. Topics such as outdoor dining and license fees were the main items that were discussed. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 6:50 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL c'=y -f Aa� Request for Board Action 7AL =-ft Agenda Item: Resolution to sell City Property Department: Police LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: RESOLUTION TO SELL FORFEITED VEHICLES AT AUCTION Black 2004 Ford F -150 — VIN /1 FTPW14554KC59411 — HPS Case #13002568 — Second Degree DWI. White 2000 Chevrolet Silverado — VIN /1 GCEK19V4YZ335113- HPS Case #13005124- Fleeing in Motor Vehicle. White 2001 Mercury Sable — VIN /1 MEFM53U21 G618468 — HPS Case #13007554 — Second Degree DWI. Silver 2005 Chevrolet Classic — VIN /1 G1 ND52F55M137582 — HPS Case #13015007 — Second Degree DWI. RESOLUTION TO SELL SURPLUS VEHICLES AT AUCTION 2002 Chevrolet Impala — VIN/ 2G1 WF55KO29283842 2002 Ford Taurus — VIN /1 FAFP55282G212822- This vehicle was forfeited in connection with a DUI arrest in 2008 and was appropriated to department use after forfeiture was complete. Silver 1998 Oldsmobile Alero — VIN /1 G3WH52K4WF32F315 — HPS Case #13012817 — Unclaimed. Vehicles to be sold at Fahey Auction Services BOARD ACTION REQUESTED: The Hutchinson Police Department recommends approval of resolution to sell at auction Fiscal Impact: $ 0.00 Funding Source: 0 FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: 0 Remaining Cost: $ 0.00 Funding Source: 0 RESOLUTION TO SELL AT AUCTION SURPLUS POLICE DEPARTMENT PROPERTY Resolution No. 14328 WHEREAS, the Hutchinson Police Department has accumulated surplus property. AND WHEREAS, the Hutchinson City Code provides pursuant to Section 91, for the sale at auction of surplus property. AND WHEREAS, the police department has determined that it is in possession of surplus property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA. That the Hutchinson City Council hereby approves the sale at auction — 2002 Chevrolet Impala — VIN/ 2GIWF55KO29283842 2002 Ford Taurus — VIN /1FAFP55282G212822- This vehicle was forfeited in connection with a DUI arrest in 2008 and was appropriated to department use after forfeiture was complete. Items to be sold at Fahey Auction Service. Adopted by the City Council this 23rd day of September, 2014 Mayor City Administrator RESOLUTION TO SELL AT AUCTION FORFEITED AND UNCLAIMED PROPERTY Resolution No. 14329 WHEREAS, Hutchinson Police Services has accumulated forfeited and unclaimed vehicles AND WHEREAS, the Hutchinson City Code provides pursuant to Section 2.70 for the liquidation of forfeited and unclaimed property. AND WHEREAS, the forfeited and unclaimed property has been in the possession of Hutchinson Police Services for more than sixty days; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the Hutchinson City Council hereby approves the sale at auction of the following forfeited and unclaimed vehicles: Black 2004 Ford F -150 — VIN /1 FTPW14554KC59411 — HPS Case #13002568 — Second Degree DWI. White 2000 Chevrolet Silverado — VIN /1 GCEK19V4YZ335113- HPS Case #13005124- Fleeing in Motor Vehicle. White 2001 Mercury Sable — VIN /1 MEFM53U21 G618468 — HPS Case #13007554 — Second Degree DWI. Silver 2005 Chevrolet Classic — VIN /1 G1 ND52F55M137582 — HPS Case #13015007 — Second Degree DWI. Silver 1998 Oldsmobile Alero — VIN /1 G3WH52K4WF32F315 — HPS Case #13012817 — Unclaimed. Vehicles to be sold at Fahey Auction Services. Adopted by the City Council this 23rd day of September 2014. Mayor City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution No. 14333 - Appointing Election Judges for General Election Department: Administration LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Melissa Starke Agenda Item Type: Presenter: Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: The State and City General Election is being held November 4, 2014, at the Hutchinson Recreation Center located at 900 Harrington Street. In accordance with State law, cities must appoint election judges for the General Election by October 10, 2014. Attached is Resolution No. 14333 appointing election judges to serve at the General Election. BOARD ACTION REQUESTED: Approve Resolution No. 14333. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14333 RESOLUTION APPOINTING JUDGES FOR THE 2014 CITY OF HUTCHINSON AND STATE GENERAL ELECTION WHEREAS, Chapter 204B, Section 20413.21, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may name election judges for the City and School District Election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the Election Judges for the General Election being held November 4, 2014, are hereby appointed in accordance with the attached list. 2. The City Council also authorizes the City Administrator to make emergency appointments of election judges to fill last- minute vacancies. Adopted by the City Council this 23rd day of September, 2014. Steven W. Cook, Mayor ATTEST: Marc A. Sebora, City Administrator CITY OF HUTCHINSON AND STATE GENERAL ELECTION 2014 ROXANNE JENSEN JANET CONNER BILL WEGNER CATHY PRELLWITZ* JANET KLOCKMANN DIANE BOBIER MATTHEW BEILKE ERIC PIEPMEIER FRED ZUMBERGE GREGORY HANSON MARK LEWANDOWSKI* BETH KASAL CAROL M. JOHNSON GLADYS PILGRIM LINDA RUZICKA MARJORIE HOFF GREGORY URBAN JOSHUA SCHROEDER DARLEEN KNIGGE DENNIS SCHROEDER* PEARL SEALE SUZANNE WEGNER SANDY TRAXLER FRANK BOLLER JEANNE LANGAN CALYN LANDFAIR MARIE MCKEE ANGIE RADKE MOLLY BLAKE LEEANN ANDERSON VANESSA LAHR NANCY NACKERUD PETER LEWANDOWSKI (student judge) NELLIE GEHRKE *indicates head judge HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of C. U. P. for two temporary storage structures - 900 Hwy 7 West Department: Planning LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Brian Hill, on behalf of Westinghouse /NuCrane (Applicant), is requesting a conditional use permit to allow the construction of two pole & fabric type temporary storage structures on Lot 1 Block 1 of Hutchinson Manufacturing Second Addition. The conditional use permit request is for storage units using a construction method other than light frame within an 1 -1 Zoning District. A Conditional Use Permitted is required for storage units in an 1 -1 Zoning District as noted in Sections 154.067 (C) and 154.123 (B) of the Zoning Ordinance. Staff was provided an email on September 16, 2014 clarifying that "temporary" was up to 24 months. Public Comments: Mr. Steve Mann, Plant Manager of NuCrane 900 Hwy 7 W, stated the anticipated length time the temporary storage structures will be needed is approximately 2 years. The need for these structures is due to both corporate processing delays and lack of adequate permanent storage facilities in the local area. Mr. Mann shared NuCrane expects the current delays to be alleviated in approximately 2 years' time. Staff noted that this property is in the River Overlay Zoning District, similar to the DAV building and that the River Overlay Ordinance is going to be revised over the winter. The River Overlay District would have prevented this project from occurring and is generally not consistent with the manufacturing uses found on Hwy 7 West corridor. After brief discussion the request was unanimously approved by the Planning Commission. BOARD ACTION REQUESTED: Approval of the CUP for two temporary storage structures for up to 24 months as requested by the applicant. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Mike Schumann, Dolf Moon, Mike Babe, Dave Hunstad, Lee Miller, Jeff Page, Jean Ward, Judy Flemming, John Webster, John Olson, Lenny Rutledge, Kent Exner, John Paulson, Marc Sebora, Dan Hatten, Brian Mehr, Dan Jochum, Andrea Schwartz, and Kyle Dimler (Persons in attendance at Planning Staff Meeting in bold) Date: September 8, 2014, for September 16, 2014, Planning Commission Meeting Application: CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF ONE TO TWO POLE & FABRIC TYPE TEMPORARTY STORAGE STRUCTURES LOCATED AT 900 HWY 7 W. Applicant: BRIAN HILL — WESTINGHOUSE /NU CRANE CONDITIONAL USE PERMIT ALLOWING STORAGE STRUCTURES OF NON -LIGHT FRAME CONSTRUCTION Brian Hill, on behalf of Westinghouse/NuCrane (Applicant), is requesting a conditional use permit to allow the construction of one to two pole & fabric type temporary storage structures on Lot 1 Block 1 of Hutchinson Manufacturing Second Addition. The conditional use permit request is for storage units using a construction method other than light frame within an I -1 Zoning District. A Conditional Use Permitted is required for storage units in an I -1 Zoning District as noted in Sections 154.067 (C) and 154.123 (B) of the Zoning Ordinance. SF s 771. d +i ov' 1 91lF: "-7- Masonic y+ West River .� (Overnight Ca np) Conditional Use Permit 900 Hwy 7 W — Temporary Storage Planning Commission — 9 -16 -14 Page 2 GENERAL INFORMATION Existing Zoning: I -1 Light Industrial Park Property Location: 900 Hwy 7 W Lot Size: 455' x 433' (4.6 acres) Existing Land Use: Commercial /Industrial Adjacent Land Use And Zoning: C -4 Fringe Commercial, I -1 Light Industrial Comprehensive Land Use Plan: Industrial Zoning History: This parcel was within a C -4 (Fringe Commercial) zoning district prior to its re- platting in May of 2009, at which time it was split from the Hutchinson Manufacturing Addition plat. The parcel was re -zoned to I -1 in October of 2009. Applicable Regulations: Sections 154.067 (C); 154.123 (B) Analysis: A Conditional Use Permit (CUP) is required for storage units within the I -1 zoning district. A CUP is also, separately, required for storage buildings using a construction method other than light frame. The proposed structure(s) are approximately 42'W x 48'L x 17'H and will be detached structure(s) used for storage. The Applicant's submitted site plan indicates the proposed storage structures(s) are planned to be placed on the south side of the existing primary structure on the site. The proposed location of the storage building(s) will serve to significantly limit its visibility from the Hwy 7 corridor. The proposed structure(s) appear to meet all applicable setbacks, as well as all other Zoning Ordinance requirements. This property is located within the Shoreland Management district. However, the proposed use would not increase the impervious lot coverage of this property. The following are standards required to be met for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and Conditional Use Permit 900 Hwy 7 W — Temporary Storage Planning Commission — 9 -16 -14 Page 3 (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Staff expressed concern over the Applicant's intended duration of use of the temporary structures. The Applicant previously stated the structures are anticipated to be used for up to approximately 2 years. After this time, the Applicant anticipates off -site, permanent storage facilities to have been constructed and become available within the City or local area. However, the length of use of the storage structures is not a prescriptively enumerated condition for the issuing of a CUP for storage structures within an Industrial zoning district. Conclusion: 1. The proposed structure is desirable and will contribute to the general welfare of the neighborhood in the subject location as it will eliminate unscreened outdoor storage of finished product produced at this location. 2. The proposed building is not anticipated to have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities, and other matters affecting the public health, safety, and general welfare as the use of the property will remain the same as the existing use of the property. 3. The proposed building will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Recommendation: Staff recommends the approval of this request to the Planning Commission subject to the following conditions: 1. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. 3. The distance between the primary building and the storage building be great enough to meet building code requirements for building separations and roof snow loading from drifting due to proximity to the primary structure. 4. The applicant must inform the Planning Commission of the length of time the storage units will be used. 5. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. 6. The Applicant must obtain all necessary permits for the construction of the proposed structure(s). so -4r M 0 CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14322 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF TWO POLE & FABRIC TYPE TEMPORARY STORAGE STRUCTURES LOCATED AT 900 HWY 7 W. FACTS 1. Mr. Tom Daggett, is the owner of a parcel of land located at 900 Hwy 7 W, Hutchinson Minnesota; and, 2. The subject property is legally described as: Lot 1, Block 1 of Hutchinson Manufacturing Second Addition in Hutchinson, MN. Brian Hill of Westinghouse/NuCrane, has applied to the City for a conditional use permit to allow the construction of one to two pole & fabric type temporary storage structures located at 900 Hwy 7 W, Hutchinson MN. 4. The Planning Commission met on September 16, 2014, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to the following findings and conditions: a) The standards for granting a conditional use permit would be met, subject to the conditions stated. b) The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. c) The distance between the primary building and the storage building must be great enough to meet building code requirements for building separations and roof snow loading from drifting due to proximity to the primary structure. d) The applicant must inform the Planning Commission of the length of time the storage units will be used. e) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. f) The Applicant must obtain all necessary permits for the construction of the proposed structure(s). g) The conditional use permit shall remain in effect for a period of two years in accordance with the applicant's letter dated September 16, 2014 affirming this period of time is the extent of what is requested by the applicant. 5. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 23, 2014, and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: a) The standards for granting a conditional use permit would be met, subject to the conditions stated. Findings of Fact — Resolution # 14322 900 Hwy 7 W Conditional Use Permit Page 2 b) The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. c) The distance between the primary building and the storage building must be great enough to meet building code requirements for building separations and roof snow loading from drifting due to proximity to the primary structure. d) The applicant must inform the Planning Commission of the length of time the storage units will be used. e) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. f) The Applicant must obtain all necessary permits for the construction of the proposed structure(s). g) The conditional use permit shall remain in effect for a period of two years in accordance with the applicant's letter dated September 16, 2014 affirming this period of time is the extent of what is requested by the applicant. APPLICABLE LAW 6. The conditional use permit request meets the following standards as required in Section 154.170 of the City of Hutchinson Municipal Code: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 7. The requested conditional use permit is consistent with the comprehensive plan. 8. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 9. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit allowing the construction of two pole & fabric type temporary storage structures located at 900 Hwy 7 W, Hutchinson MN is approved. Adopted by the City Council this 23rd day of September, 2014. ATTEST: Findings of Fact — Resolution # 14322 900 Hwy 7 W Conditional Use Permit Page 3 Marc Sebora City Administrator Steven W. Cook Mayor HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of C.U.P. to allow recycling center in 1 -1 zoning district Department: Planning LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: McLeod County is requesting a conditional use permit to allow the operation of a recyclable material collection center in an 1 -1 zoning district at 150 Michigan Ave SE. A Conditional Use Permitted is required for recyclable bacterial collection in an 1 -1 Zoning District as noted in Section 154.067 of the Zoning Ordinance. Mr. Ed Homan, Solid Waste Director, McLeod Co., stated that the hours of operation at the proposed site would be 8:00 am — 4:30 pm and there would be no outside storage on site at this location. Mr. Homan shared about the nature of the business to be conducted at this site. Mr. Homan stated the building is well sprinkled and there will be no high -pile storage at this facility. Mr. Homan stated the McLeod County plans to enter a yearlong lease for this property beginning in November 2014 and any extension or renewal of the lease would be based upon need and approval of use by the County Board. The planning commission had some brief questions regarding if residents would be dropping off materials at the site. Mr. Homan indicated there would not be drop off from residents at the site and that drop off would occur by semi truck during regular business hours. After brief discussion the Planning Commission unanimously approved the request. BOARD ACTION REQUESTED: Approval of CUP for recycleable material collection center at 150 Michigan Ave. SE. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Mike Schumann, Dolf Moon, Mike Babe, Dave Hunstad, Lee Miller, Jeff Page, Jean Ward, Judy Flemming, John Webster, John Olson, Lenny Rutledge, Kent Exner, John Paulson, Marc Sebora, Dan Hatten, Brian Mehr, Dan Jochum, Andrea Schwartz, and Kyle Dimler (Persons in attendance at Planning Staff Meeting in bold) Date: September 8, 2014, for September 16, 2014, Planning Commission Meeting Application: CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE OPERATION OF A RECYCLABLE MATERIAL COLLECTION CENTER IN AND I -1 ZONING DISTRICT LOCATED AT 150 MICHIGAN ST SE Applicant: MCLEOD COUNTY CONDITIONAL USE PERMIT ALLOWING RECYCLE CENTER McLeod County is requesting a conditional use permit to allow the operation of a recyclable material collection center in an I -1 zoning district on Outlot 1 Ex S17; & Ex My 3.83 acres & Ex .27 ac of Auditors Plat of the West ' /z of Section 5- TI 16N -R29W. A Conditional Use Permitted is required for recyclable bacterial collection in an I -1 Zoning District as noted in Section 154.067 of the Zoning Ordinance. 75 77 M= 25 W 125 175 in H Aaw in 9 Z �C� 185 150 Q ti N� 185 2 845 N� 175 2N D AV :I1 •:rs, 225 Conditional Use Permit 150 Michigan St SE — Recyclable Material Collection Planning Commission — 9 -16 -14 Page 2 GENERAL INFORMATION Existing Zoning: I -1 Light Industrial Park Property Location: 150 Michigan St SE Lot Size: 5.09 ac. Existing Land Use: Commercial /Industrial Adjacent Land Use And Zoning: R -3 Medium -High Density Residential, I -1 Light Industrial Comprehensive Land Use Plan: Industrial Zoning History: A C.U.P. was granted in 1977 for a private recreational facility. In 2001 American Energy Systems was constructed on the site. Applicable Regulations: Sections 154.067 (C) Conditional Use Permit: The Conditional Use Permit (CUP) is required for recyclable material collection in an I -1 zoning district. The structure that will be utilized is the existing American Energy Systems building located at 150 Michigan St. SE in Hutchinson. Staff understands this site would be used temporarily as the retrofit takes place at the McLeod County recycling facility off of 5th Ave SE. The facility is approximately 28,000 square feet in size and manufacturing/warehouse type facility. Access to the site is very good for both truck and passenger vehicle traffic off of Michigan St. and 2nd Ave. SE. The site appears to have adequate parking for employees and visitors alike. The loading dock is located on the northwest side of the building. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Conditional Use Permit 150 Michigan St SE — Recyclable Material Collection Planning Commission — 9 -16 -14 Page 3 Conclusion: 1. The proposed structure is desirable and will contribute to the general welfare of the neighborhood in the subject location as it will be consistent with other uses in the I -1 zoning district. 2. The proposed building is not anticipated to have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities, and other matters affecting the public health, safety, and general welfare as the use of the property will remain very similar to the existing use of the property. 3. The proposed building will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations, just as they are used today. Recommendation: Staff recommends the approval of this request to the Planning Commission due to the fact that the applicant's request meets the standards for approving a conditional use permit provided above. If the Planning Commission recommends approval of the applicant's request, staff suggests the following conditions be part of the approval: 1. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. 3. No outdoor storage of materials is permitted. All storage must be inside. 4. The building must be properly sprinkled. 5. The City of Hutchinson must be informed if there materials going to be stacked high to the ceiling so that proper fire protection can be put in place for that type of storage. 6. The Applicant must obtain all necessary permits for any construction that would be needed. 7. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. 8. If the use ceases to operate for more than 365 consecutive days the conditional use permit shall be deemed null and void. 9. If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14321 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ALLOW THE OPERATION OF A RECYCLABLE MATERIAL COLLECTION CENTER IN AN I -1 ZONING DISTRICT LOCATED AT 150 MICHIGAN ST. SE. FACTS Duane Michael Haefner, is the owner of a parcel of land located at 150 Michigan St. SE, Hutchinson Minnesota; and, 2. The subject property is legally described as: Out lot 1 EX S17' & EX N'LY 3.83 ACRES & EX .27 AC. of Auditors Plat of the West ' /z of Section 5- T116N -R29W, 5.09 Acres, Hutchinson, MN. 3. McLeod County, has applied to the City for a conditional use permit to allow the operation of a recyclable material collection center in an I -1 zoning district located at 150 Michigan St. SE, Hutchinson MN. 4. The Planning Commission met on September 16, 2014, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to the following findings and conditions: a) The standards for granting a conditional use permit would be met, subject to the conditions stated. b) The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. c) No outdoor storage of materials is permitted. All storage must be inside. d) The building must be properly sprinkled. e) The City of Hutchinson must be informed if there materials going to be stacked high to the ceiling so that proper fire protection can be put in place for that type of storage. f) The Applicant must obtain all necessary permits for any construction that would be needed. g) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. h) If the use ceases to operate for more than 365 consecutive days the conditional use permit shall be deemed null and void. i) If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 5. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 23, 2014, and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: Findings of Fact — Resolution # 14321 150 Michigan St SE Conditional Use Permit Page 2 a) The standards for granting a conditional use permit would be met, subject to the conditions stated. b) The proposed building and site improvements shall comply with the standards of the I -1 district and the Zoning Ordinance. c) No outdoor storage of materials is permitted. All storage must be inside. d) The building must be properly sprinkled. e) The City of Hutchinson must be informed if there materials going to be stacked high to the ceiling so that proper fire protection can be put in place for that type of storage. f) The Applicant must obtain all necessary permits for any construction that would be needed. g) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. h) If the use ceases to operate for more than 365 consecutive days the conditional use permit shall be deemed null and void. i) If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for APPLICABLE LAW 6. The conditional use permit request meets the following standards as required in Section 154.170 of the City of Hutchinson Municipal Code: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 7. The requested conditional use permit is consistent with the comprehensive plan. 8. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 9. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit allowing the operation of a recyclable material collection center in an I -1 zoning district located at 150 Michigan St. SE, Hutchinson MN is approved. Findings of Fact — Resolution # 14321 150 Michigan St SE Conditional Use Permit Page 3 Adopted by the City Council this 23rd day of September, 2014. ATTEST: Marc Sebora City Administrator Steven W. Cook Mayor HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of C.U.P. to allow multi - family building in R -4 zoning district Department: Planning LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Century Court III is requesting a conditional use permit to allow construction of a multiple - family building in an R -4 zoning district on Lot 1 Block 2 of Century Court at 875 Century Ave SW. The applicant is requesting to construct 10, 12 unit buildings on the property. A Conditional Use Permitted is required for multiple - family buildings in an R -4 Zoning District as noted in Section 154.059 of the Zoning Ordinance. Mr. Robert Krcil of 1120 Keith St. addressed the Commission and shared his concern regarding pedestrians in the area cutting through private property and the likely increase of this with increased population in the area. Are there any plans to create additional trails in the area? Mr. Tim Hacker of 905 Cleveland Ave. SW addressed the Commission. Mr. Hacker thanked Dan Jochum, Director of Planning for meeting with him to discuss the need for screening on this site. Mr. Hacker shared a concern that if there wasn't enough room for screening using berms, would there be enough room for snow removal /storage on this site. Mr. Hacker also reiterated the need for screening between the existing residences to the northeast of the development and shared his concern with the anticipated effect of increased traffic on already limited sight lines on South Grade Road. Staff recommended to the Planning Commission that a minimum of 8 foot evergreen trees be added to the site to screen the project from adjacent residents. (see resolution for more information). After brief discussion, the Planning Commission unanimously approved the request. BOARD ACTION REQUESTED: Approval of CUP with stated conditions. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Mike Schumann, Dolf Moon, Mike Babe, Dave Hunstad, Lee Miller, Jeff Page, Jean Ward, Judy Flemming, John Webster, John Olson, Lenny Rutledge, Kent Exner, John Paulson, Marc Sebora, Dan Hatten, Brian Mehr, Dan Jochum, Andrea Schwartz, and Kyle Dimler (Persons in attendance at Planning Staff Meeting in bold) Date: September 8, 2014, for September 16, 2014, Planning Commission Meeting Application: CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF A MULTIPE- FAMILY BUILDING IN AN R -4 ZONING DISTRICT LOCATED AT 875 CENTURY AVE SW Applicant: JOHN COLBY — CENTRUY COURT III /CROWNE POINTE CONDITIONAL USE PERMIT ALLOWING MULTI - FAMILY BUILDING IN AN R -4 Century Court III is requesting a conditional use permit to allow construction of a multiple- family building in an R -4 zoning district on Lot 1 Block 2 of Century Court at 875 Century Ave SW. The applicant is requesting to construct 10, 12 unit buildings on the property. A Conditional Use Permitted is required for multiple - family buildings in an R -4 Zoning District as noted in Section 154.059 of the Zoning Ordinance. 915 905 M 895 875 865 855 835 815 785 755 CLEVELAND AVE SW 1025 830 820 810 730 1208 1216 875 W U3 945 w N 705 Z W CENTURY AVE SW 1117 1125 1133 1141 880 804 860 766 Conditional Use Permit 875 Century Ave SW — Multi- Family Building Planning Commission — 9 -16 -14 Page 2 GENERAL INFORMATION Existing Zoning: R -4 High Density Residential (2 Family and Larger) Property Location: 875 Century Ave SW Lot Size: 8.56 ac. Existing Land Use: Bare Land Adjacent Land Use And Zoning: R -3 Medium -High Density Residential, R -2 Medium Density Residential (1 or 2 family & duplexes), R -3 PD Medium -High Density Residential Planned Development, I/C Industrial /Commercial Comprehensive Land Use Plan: Medium Density Residential Zoning History: Originally platted as Century Court 12/20/1994 in the R -3 Zoning District Applicable Regulations: Sections 154.059 (C) Conditional Use Permit: The Conditional Use Permit (CUP) is required for multiple - family buildings in an R -4 zoning district. The building appear to meet all applicable zoning regulations. The Site Plan for the project was approved by the Hutchinson City Council on August 26, 2014. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Conclusion: 1. The proposed project is desirable and will contribute to the general welfare of the neighborhood in the subject location as it will utilize land that is currently vacant. Conditional Use Permit 875 Century Ave SW — Multi- Family Building Planning Commission — 9 -16 -14 Page 3 2. The proposed project is not anticipated to have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities, and other matters affecting the public health, safety, and general welfare as the Site Plan approved by the City Council on August 26, 2014 appeared to meet all zoning ordinance requirements. 3. The proposed building will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Recommendation: Staff recommends the approval of this request to the Planning Commission due to the fact that the applicant's request meets the standards for approving a conditional use permit provided above. If the Planning Commission recommends approval of the applicant's request, staff suggests the following conditions be part of the approval: 1. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building and site improvements shall comply with the standards of the R -4 zoning district and the Zoning Ordinance. 3. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. 4. The Applicant must obtain all necessary permits for the construction of the proposed project. 5. If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14323 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF A MULTI - FAMILY BUILDING IN AN R -4 ZONING DISTRICT LOCATED AT 875 CENTURY AVE. SW. FACTS Century Court III, LLC is the owner of a parcel of land located at 875 Century Ave. SW, Hutchinson Minnesota; and, 2. The subject property is legally described as: Lot 000 Block 2 of Century Court Addition, Lot 1 Ex Tract Approx. 205. X 215' in the NE corner, in Hutchinson, MN. 3. Century Court III — Crowne Pointe Development, Inc., has applied to the City for a conditional use permit to allow the construction of a multi - family building in an R -4 Zoning District located at 875 Century Ave. SW, Hutchinson MN. 4. The Planning Commission met on September 16, 2014, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to the following findings and conditions: a) The standards for granting a conditional use permit would be met, subject to the conditions stated. b) The proposed building and site improvements shall comply with the standards of the R -4 zoning district and the Zoning Ordinance. c) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. d) The Applicant must obtain all necessary permits for the construction of the proposed project. e) If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. f) Require the planting of 8' evergreen screening trees along Cleveland Ave. SW and the west side of existing residence properties in the northeast corner adjacent to the development, to be approved by City Arborist, and require the installation of these trees before issuing a Certificate of Occupancy of the first building. Planting of the required screening trees along the east west internal road south of existing twin homes would be delayed until this street is constructed to alleviate root damage. 5. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 23, 2014, and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: a) The standards for granting a conditional use permit would be met, subject to the conditions stated. Findings of Fact — Resolution # 14323 875 Century Ave. SW Conditional Use Permit Page 2 b) The proposed building and site improvements shall comply with the standards of the R -4 zoning district and the Zoning Ordinance. c) The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. d) The Applicant must obtain all necessary permits for the construction of the proposed project. e) If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. f) Require the planting of 8' evergreen screening trees along Cleveland Ave. SW and the west side of existing residence properties in the northeast corner adjacent to the development, to be approved by City Arborist, and require the installation of these trees before issuing a Certificate of Occupancy of the first building. Planting of the required screening trees along the east west internal road south of existing twin homes would be delayed until this street is constructed to alleviate root damage. APPLICABLE LAW 6. The conditional use permit request meets the following standards as required in Section 154.170 of the City of Hutchinson Municipal Code: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 7. The requested conditional use permit is consistent with the comprehensive plan. 8. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 9. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations Findings of Fact — Resolution # 14323 875 Century Ave. SW Conditional Use Permit Page 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit allowing the construction of a multi - family building in an R -4 Zoning District located at 875 Century Ave. SW, Hutchinson MN is approved. Adopted by the City Council this 23rd day of September, 2014. ATTEST: Marc Sebora City Administrator Steven W. Cook Mayor HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Development Agreement - Century Ct. III, LLC Department: Planning LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: City Staff has been working with Century Ct. III, LLC on a Development Agreement for the construction of 10, 12 unit apartment buildings. The agreement included in the packet is the first version that was sent to the developer by the City. There is a chance that there could be some changes to this agreement prior to the Council meeting. Staff will send out a revised agreement as soon as we have one. In addition, there is a chance this could be pulled off the agenda completely prior to the meeting as well. BOARD ACTION REQUESTED: Approval of Development Agreement with Century Ct. III, LLC Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DEVELOPER AGREEMENT Century Court III Apartments CITY OF HUTCHINSON, MINNESOTA THIS AGREEMENT, made and entered into the day and year set forth hereinafter by and between Century Court III,LLC, hereinafter called the "Developer "; and the City of Hutchinson, a Municipal Corporation in the County of McLeod, State of Minnesota, hereinafter called the "City "; WITNESSETH: WHEREAS, the Developer is the owner and developer of property situated in the City of Hutchinson, County of McLeod, State of Minnesota, which has been identified with a legal description of Lot 1, Block 2, CENTURY COURT, according to the recorded plat thereof, excepting there from CLEVELAND CORNERS, according to the recorded plat thereof, McLeod County, Minnesota WHEREAS, City Ordinance No. 464 and 466 requires the Developer to make certain improvements in the development; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: I. SITE IMPROVEMENTS AND UTILITY INSTALLATIONS It is agreed and understood that the Developer shall be responsible for all work associated with site improvements and utility installations within the above described property. All work shall conform to the City approved site, utility and building plans. 2. The Developer shall complete all work as noted within the below section II (paragraph no. 1) and provide a written verification and as -built drawings from a professional engineer and /or surveyor stating that all utility work satisfies the intentions of the plans and this agreement. This work must be approved by City staff. Any costs associated with meeting these requirements shall be the responsibility of the Developer. 3. The Developer shall provide all turf establishment and erosion control measures necessary to protect the Century Court III Apartments/Page I — 09/16/2014 utility installations and street disturbance areas on the entire site and within adjacent City street right -of- ways. The Developer shall also provide all erosion control during site grading and improvement work necessary to meet local, state and federal requirements. Any subdivision disturbing one acre or more of land needs to obtain an NPDES /SDS (National Pollutant Discharge Elimination System /State Disposal System) permit through the MPCA (Minnesota Pollution Control Agency). Information regarding the permitting process can be accessed at www.pca.state.mn.us / water / stormwater/storfnwater- c.html or by calling the City's Environmental Specialist at (320) 234 -5682. A copy of the submitted permit and associated Stormwater Pollution Prevention Plan ( SWPPP) must be provided to the Environmental Specialist prior to construction commencing within the site. All disturbed areas shall be seeded, mulched, and disc anchored with MNDOT seed mix 250GR or other City- approved method within 48 hours after final grading is completed or within one week after rough grading is completed. Any areas disturbed adjacent to a stormwater pond, drainage ditch or existing wetland shall be seeded with MNDOT seed mixture 310 or other City- approved method and covered with erosion control blanket. Any corrective measures to address erosion control and turf establishment are at the expense of the Developer. In the case of the SWPPP not being administered appropriately, the City shall notify the Developer in writing of work needing completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer. 6. It is understood and agreed that it shall be the Developer's responsibility to provide survey control points for all infrastructure and site construction. 7. It is understood and agreed that the Developer shall be responsible for maintaining the condition of the infrastructure, mowing, weed control and other site maintenance issues during site and building construction. The Developer shall be required to maintain and clean the roadways and storm sewers /ponds on a regular basis, and shall repair or replace any street, storm sewer /ponds, sanitary sewer or watermain infrastructure damaged by operations related to site and building construction. The City shall notify the Developer in writing of necessary work requiring completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer for the associated costs. II. FUNDING AND DEDICATIONS The Developer hereby agrees to fund and construct all necessary utility installations /relocations and appurtenances to serve the entire development. All work shall be completed by forces employed by the Developer, and the work shall meet all applicable local, state and federal regulations and construction standards. The City shall approve all construction documents and shall provide minimal construction overview with final approval of all infrastructure connections to existing public facilities. All roadway and utility improvements shall be considered private infrastructure with all associated maintenance activities including but not limited to pavement /curbing repairs, pavement surface treatments, snow removals, sweeping, water /sewer services, storm water system /drainage maintenance, pond /wetland maintenance, etc. being the responsibility of the Developer. If proper roadway or utility maintenance is not administered per the City's determination, the City reserves the right to address issues that impact emergency access, human health, environmental contamination, etc. and assess all associated costs to the Developer. III. OTHER FEES, CHARGES AND EXPENDITURES 1. It is understood and agreed that the Developer shall pay the Trunk Sanitary Sewer and Water Main Century Court III Apartments/Page 2 — 09/16/2014 Availability Charges. This fee will compensate the City for improvements required to provide trunk sanitary sewer and water main access to this development. This fee shall be based on the most current fees being charged by the City and is due at the time of building permit issuance. These rates for the year 2014 are $2,300 per unit for sanitary sewer service and $1,750 per unit for water service. 2. It is understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements as outlined in a handbook dated August 28, 2013. Electric service is provided at no charge other than requirements as outlined in the policy handbook. Natural gas service is provided and installed by the Hutchinson Utilities Commission. Commercial and industrial service lines are installed and billed on a time and material basis. All costs shall be billed to the Developer. It is also understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements, for natural gas service, as outlined in the handbook dated August 28, 2013. 3. It is understood and agreed that a Parks and Playground Contribution shall be made in the form of $135 per unit within this development. 4. It is understood and agreed that all current and /or deferred special assessments shall be paid in the full prior to building permits being issued by the City. IV. GENERAL It is understood and agreed that no building certificates of occupancy will be issued prior to the public roadway /utility connections and City right -of -way disturbance areas being completely addressed and accepted by the City. 2. Any damage to surrounding private property or City infrastructure that occurs due to development construction shall be the responsibility of the Developer to correct. 3. It is understood and agreed that all local, state and federal permits required to be obtained for the development shall be the responsibility of the Developer. 4. This agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. 5. It is understood and agreed that the Developer shall record this agreement at the McLeod County Recorder's Office or McLeod County Registrar of Titles Office, and that no building permits will be issued until said Agreement is recorded and a certified copy of this agreement is provided to the City. The Developer shall pay all costs associated with said recording. Century Court III Apartments/Page 3 — 09/16/2014 SIGNATURES • BRIAN SOLSRUD (Developer): Signature Printed Name & Title STATE OF MINNESOTA The foregoing instrument was acknowledged before me this day of 2014, by COUNTY OF MCLEOD BRIAN SOLSRUD. Notary Public, County, Minnesota My Commission Expires APPROVED BY THE HUTCHINSON CITY COUNCIL THE 23RD DAY OF SEPTEMBER, 2014. • CITY OF HUTCHINSON (City): STEVEN W. COOK, MAYOR STATE OF MINNESOTA COUNTY OF MCLEOD THIS INSTRUMENT WAS DRAFTED BY: Kent Exner, DPW /City Engineer Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 MARC SEBORA, CITY ADMINISTRATOR The foregoing instrument was acknowledged before me this day of 2014, by Steven W. Cook, Mayor and Marc Sebora, City Administrator of the City of Hutchinson. Notary Public, My Commission Expires Century Court III Apartments/Page 4 — 09/16/2014 County, Minnesota HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Crow River Winery Dispensing Wine at Fairgrounds Department: Administration LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: The Crow River Winery has requested to dispense wine at the Wright County MN Kennel Club All Breed Dog Show being held at the McLeod County Fairgrounds on October 4, 2014. Crow River Winery is requesting to dispense wine for samplings and tastings. Hutchinson City Code, and state statute, allow for a liquor license holder from an adjacent municipality to dispense liquor at a municipally -owned facility as long as the governing board authorizes the activity. Crow River Winery has submitted a certificate of insurance naming the City of Hutchinson as an additional insured. Crow River Winery has been authorized in the past by the Council to conduct similar activities at the McLeod County Fairgrounds. BOARD ACTION REQUESTED: Authorize Crow River Winery to dispense wine at Wright County MN Kennel Club All Breed Dog Show on October 4, 2014, at McLeod County Fairgrounds Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: �rvW )River Wt w e r� September 10, 2014 City of Hutchinson 1 1 1 Hassan Street SE Hutchinson, MN 55350 Re: Wright County Kennel Club Dog Show Dear Hutchinson City Council Members: Crow River Winery would like to request permission from the City to offer wine sampling and Castings at the Wright County MN Kennel Club All Breed Dog Show at the McLeod County Fairgrounds on Saturday, October 4. Crow River Winery is a locally- owned, operated and licensed Minnesota Farm Winery. Type Code: FWN Winery License Number: 6302011 Permit Number: 80780 TTB Registry Number: BWN- MN 15039 We were approved by the Council for other events at the McLeod Country Fairgrounds and it worked out very well. Please feel free to contact me with questions. Sincerely, Chelsey Schrupp Event Coordinator Crow River Winery 14848 Highway 7 E. Hutchinson, MN 55350 320 - 587 -2922 cschrupp @crowriverwinery.com CERTIFICATE OF LIABILITY INSURANCE F DATE(MWD01YYYYl 19112/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Jenny Saylor Ahmann- Martin P1ONe 952- 947 -9700 F°'t 7555 Market Place Drive Eden Prairie MN 55344 E-MAIL,,. isaylor(c' ahmannmartin.com INSURERA:uniteQ Fire &Casual Com an 13021 INSURED BOXEL -1 INSURERB:SFM Mutual Insurance Co 11347 Boxelder Farm LLC INSURER C :Torus National Ins Company Crow River Winery LLC Pneve Farms, LLC INSURER D: 20855 Kensington Blvd INSURER E: Lakeville MN 55044 -7486 1 INSURER F: CC7VF11Rer:FC PCOT1rIf' Ar= a i i isao co. 071 aRnI AR THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IL7R TYPE OF INSURgIJCE INSD POLICY NUMBER POLICY EFF MWDDIYYYY I POLICY EXP IMMIDDffYYYJ LIMITS A X COMMERCIAL GEN ERA LLIARILITY 60434327 U3W2014 13012015 EACH OCCURRENCE $1,000,000 CLAIMS -MADE Fx—] OCCUR DAMAGE TO RENTED PREMISES Ea occurrence) $100,000 MED EXP (AN one persony $5,000 PERSONAL & ADV INJURY $1,000,000 X CG7108 10106 G_EN'L AGGREGATE LIMIT APPLIES PER GENERAL AGGREGATE $2,000,000 POLICY �,! PECTT F—] LOC PRODUCTS - COMPIOPAGfs2.000.000 OTHER. AUTOMOBILE LIABILITY Ea BCCidBnt BODILY INJURY (Per persoALL ANY AUTO OWNED ggCHEDULED AUTOS AUTOS BODILY INJURY (Per accideHIREDAUTOS AUTOS D PERTY DAMAG Per accident $ C X UMBRELLA LMB X OCCUR 736621-1141ALI 3012014 W3012015 EACH OCCURRENCE $5,000,000 AGGREGATE $5,000,000 EXCESS LIAR CLAIMS -MADE DEp X RETE NTI ON S 10.000 $ B WORKERS COMPENSATION 53625 204 V3012014 3Ul2015 X STATUTE 5RH AND EMPLOYERS' LIARILIT! YIN E.L. EACH ACCIDENT $1000000 ANY PROPRIETORIPARTHERIEXECUTIVE OFFICERIMEMBER EXCLUDED' N I+4 E.L. DISEASE - EA EMPLOYEE S10D000O (Mandatory in NH) If yyea, describe undar ..-._ E.L. DISEASE - POLICY LIMIT I S10000DO DESCRIPTION OF OPERATIONS below I DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is required) FOLLOWING ENDORSEMENTS APPLY TO THE PROJECTS AND NAMES LISTED BELOW ONLY IF REQUIRED BY WRITTEN CONTRACT OR AGREEMENT: GENERAL LIABILITY: Additional Insured - Vendors, Lessor of Leased Equipment, Managers or Lessors of Premises CG7174 07111 - Additional Insured -State of Governmental Agency or Subdivision or Political Subdivision - Permits or Authorization Relating to Premises CG2013 05109 The City of Hutchinson is included as additional insured for General Liability per form CG2013 05109 listed above. v IUdts -2U'14 ACURD CORPORATION, All rights reserved. ACORD 25 (2014101) The ACORO name and Toga are registered marks Of ACORD $HOUI<D ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Clty of Hutchinson 111 Hassan St SE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Hutchinson MN 55350 AUTHORIZED REPRESENTATIVE v IUdts -2U'14 ACURD CORPORATION, All rights reserved. ACORD 25 (2014101) The ACORO name and Toga are registered marks Of ACORD HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Project Change Orders Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and /or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders and /or Supplemental Agreements are proposed as noted: o Change Order No. 2 — Letting No. 3 /Project No. 14 -03 — 2014 Pavement Management Program This Change Order addresses the need to adjust the specified bituminous thickness due to a plan discrepancy. The additional work results in a $52,250.88 increase to the current contract amount. o Change Order No. 3 — Letting No. 3 /Project No. 14 -03 — 2014 Pavement Management Program This Change Order addresses the need to incorporate Creekside Soils site paving work into this project letting. The additional work results in a $65,080.00 increase to the current contract amount. Please note that this work will be funded through the Creekside Soils budget. o Change Order No. 2 — Letting No. 1 /Project No. 14 -01 — 2014 Jefferson St SE from Oakland Ave SE to Century Ave SE This Change Order addresses the Engineer's decision to change the paint type from latex to epoxy. The additional work results in a $4,103.44 increase to the current contract amount. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: L3P14 -03 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City /County of City of Hutchinson Change Order No. 2 9/16/2014 FEDERAL PROJECT STATE PROJECT LOCAL PROJECT NO. CONTRACT NO. NO. NA NO. NA L3P14 -03 L3P14 -03 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Wm Mueller & Sons Inc 2014 Pavement Management Program South Grade Road Trail & Century Ave 831 Park Ave, P O Box 247 Trail Hamburg, MN TOTAL CHANGE ORDER AMOUNT $13.19 $52,250.88 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. This Change Order addresses the need to adjust the specified bituminous thickness due to a plan discrepancy. The additional work results in a $52,250.88 increase to the current contract amount. The additional work does not affect the Substantial Completion or the Final Completion Date. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 001 2360.503 TYPE SPNWB230C NON - WEARING COURSE MIXTURE - 2 1/2" (BASE BID) SY $13.19 15287 $201,635.53 2360.503 TYPE SPNWB230C NON - WEARING COURSE MIXTURE - 2 1/2" (ALTERNATE BID #1) SY $13.19 4505 $59,420.95 2360.503 TYPE SPNWB230C NON - WEARING COURSE MIXTURE - 2" (BASE BID) SY ($10.55) 15287 ($161,277.85) 2360.503 TYPE SPNWB230C NON - WEARING COURSE MIXTURE - 2" (ALTERNATE BID #1) SY ($10.55) 4505 ($47,527.75) Funding Category No. 001 Total: $52,250.88 Change Order No. 2 Total: $52,250.88 Funding category is required TorTederal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Wm Mueller & Sons Inc Signed Signed Date: 09/23/2014 Phone: (320) 234 -4212 Date: Phone: (952) 467 -2720 Original to Project Engineer; Copy to Contractor Approved by Hutchinson City Council 09/23/2014. Signed Signed Mayor, Steven W. Cook City Administrator, Marc A. Sebora Date: 09/23/2014 Date: 09/23/2014 Original Contract Amount $965,659.22 Previous Change Orders - $34,311.80 Page 1 of 1 L3P14 -03 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City /County of City of Hutchinson Change Order No. 3 9/17/2014 FEDERAL PROJECT STATE PROJECT LOCAL PROJECT NO. CONTRACT NO. NO. NA NO. NA L3P14 -03 L3P14 -03 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Wm Mueller & Sons Inc 2014 Pavement Management Program South Grade Road Trail & Century 831 Park Ave, P O Box 247 Ave Trail Hamburg, MN 55339 TOTAL CHANGE ORDER AMOUNT $9.10 $65,080.00 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. This Change Order addresses the need to incorporate Creekside Soils site paving work into this project letting. The additional work results in a $65,080.00 increase to the current contract amount. This work will be funded through the Creekside Soils budget. This additional work does not affect the Substantial Completion or the Final Completion Date. COST BREAKDOWN Item No. Item Unit Unit Price I Quantity Amount Funding Category No. 001 2357.502 BITUMINOUS MATERIAL FOR TACK COAT GA $4.00 170 $680.00 2360.503 TYPE SPWEA240B WEARING COURSE MIXTURE (1.5 ") SY $9.10 2800 $25,480.00 2360.503 TYPE SPNWB230B NON - WEARING COURSE MIXTURE (2.5 ") SY $13.90 2800 $38,920.00 Funding Category No. 001 Total: $65,080.00 Change Order No. 3 Total: $65,080.00 Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days kpproved By Project Engineer: Kent Exner Approved By Contractor: Wm Mueller & Sons Inc Signed Signed Date: 09/23/2014 Phone: (320) 234 -4212 Date: Phone: (952) 467 -2720 Original to Project Engineer; Copy to Contractor Approved by Hutchinson City Council 09/23/2014. Siqned Mayor, Steven W. Cook Date: 09/23/2014 Siqned City Administrator, Marc A. Sebora Date: 09/23/2014 Original Contract Amount $965,659.22 Previous Change Orders - $86,562.68 Page 1 of 1 SAP 133 - 101 -003 / L1P14 -01 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City /County of City of Hutchinson Change Order No. 2 9/16/2014 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. LS SAP 133 - 103 -002 L1 P14 -01 L1 P14 -01 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK R & R Excavating Jefferson St SE from Oakland Ave SE to Century Ave SE 1149 Hwy 22 South TOTAL CHANGE ORDER AMOUNT Hutchinson, MN 55350 $4,103.44 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. This Change Order addresses the Engineer's decision to change the paint type from latex to epoxy. This overall subtraction and addition to work does not affect the Substantial Completion Date or Final Completion Date. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 001 2021.501 MOBILIZATION LS $1,250.00 1 $1,250.00 2582.501 PAVEMENT MESSAGE (RIGHT THRU ARROW) EPDXY EA $265.00 1 $265.00 2582.501 PAVEMENT MESSAGE (RIGHT ARROW) EPDXY EA $185.00 1 $185.00 2582.501 PAVEMENT MESSAGE (LEFT THRU ARROW) EPDXY EA $265.00 1 $265.00 2582.501 PAVEMENT MESSAGE (LEFT ARROW) EPDXY EA $185.00 1 $185.00 2582.502 4" BROKEN LINE YELLOW -EPDXY LF $2.64 510 $1,346.40 2582.502 4" DOUBLE SOLID LINE YELLOW -EPDXY LF $5.28 85 $448.80 2582.502 4" SOLID LINE WHITE -EPDXY LF $2.64 430 $1,135.20 3882.100 CONTRACTOR 10% ALLOWANCE LS $508.04 1 $508.04 2582.501 PAVEMENT MESSAGE (RIGHT THRU ARROW) PAINT EA ($35.00) 1 ($35.00) 2582.501 PAVEMENT MESSAGE (RIGHT ARROW) PAINT EA ($35.00) 1 ($35.00) 2582.501 PAVEMENT MESSAGE (LEFT THRU ARROW) PAINT EA ($35.00) 1 ($35.00) 2582.501 PAVEMENT MESSAGE (LEFT ARROW) PAINT EA ($35.00) 1 ($35.00) 2582.502 4" BROKEN LINE YELLOW -PAINT LF ($1.25) 510 ($637.50) 2582.502 4" DOUBLE SOLID LINE YELLOW -PAINT LF ($2.00) 85 ($170.00) 2582.502 4" SOLID LINE WHITE -PAINT LF ($1.25) 430 ($537.50) Funding Category No. 001 Total: $4,103.44 Change Order No. 2 Total: $4,103.44 runaing category is required for teaerai projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: R & R Excavating Approved by Hutchinson City Council: 09/23/2014 Signed Signed Date: 09/23/2014 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: Original Contract Amount $1,325,837.48 Previous Change Orders - ($1,726.81) Page 1 of 1 HUTCHINSON CITY CENTER ENGINEERING DEPARTMENT • 111 HASSAN STREET SE, HUTCINSON MN 55350 PHONE: 320-234-4209 FAX: 320-234-4240 LETTING NO. 1 - PROJECT NO. 14 -01 Dated: 0911612014 CHANGE ORDER NO. 2 Page 1 of 1 Project Location: Jefferson Street SE from Oakland Avenue SE to Century Avenue SE CONTRACTOR: R & R Excavating, 1149 Hwy22 South, Hutchinson MN 55350 Contract Amount: $1,325,837.48 Substantial Completion: 1013112014 Final Completion Date: 0611512015 Description of Change: [addition is Change Order addresses the engineers decision to change the paint type from latex to epoxy. This overall subtraction and of work does not affect the Substantial Completion Date or Final Completion Date. Item No. Spec. Ref. Item Name Unit Quantity Unit Price Amount INCREASE ITEMS: 119 2021.501 MOBILIZATION LS 1 $1,250.00 $1,250.0 120 2582.501 PAVEMENT MESSAGE (RIGHT THRU ARROW) EPDXY EA 1 $265.00 $265.0 121 2582.501 PAVEMENT MESSAGE (RIGHT ARROW) EPDXY EA 1 $185.00 $185.0 122 2582.501 PAVEMENT MESSAGE (LEFT THRU ARROW) EPDXY EA 1 $265.00 $265.0 123 2582.501 PAVEMENT MESSAGE (LEFT ARROW) EPDXY EA 1 $185.00 $185.0 124 2582.502 4" BROKEN LINE YELLOW- EPDXY LF 510 $2.64 $1,346.4 125 2582.502 4" DOUBLE SOLID LINE YELLOW- EPDXY LF 85 $5.28 $448.8 126 2582.502 4" SOLID LINE WHITE- EPDXY LF 430 $2.64 $1,135.2 127 3882.100 CONTRACTOR 10% ALLOWANCE (APPLIED TO ALL ABOVE ITEMS) LS 1 $508.04 $508.04 TOTAL INCREASE ITEMS $5,588.4 DECREASE ITEMS: 128 2582.501 PAVEMENT MESSAGE (RIGHT THRU ARROW) PAINT EA 1 $35.00 $35.0 129 2582.501 PAVEMENT MESSAGE (RIGHT ARROW) PAINT EA 1 $35.00 $35.0 130 2582.501 PAVEMENT MESSAGE (LEFT THRU ARROW) PAINT EA 1 $35.00 $35.0 131 2582.501 PAVEMENT MESSAGE (LEFT ARROW) PAINT EA 1 $35.00 $35.0 132 2582.502 4" BROKEN LINE YELLOW- PAINT LF 510 $1.25 $637.5 133 2582.502 4" DOUBLE SOLID LINE YELLOW- PAINT LF 85 $2.00 $170.0 134 2582.502 4" SOLID LINE WHITE- PAINT LF 430 $1.25 $537.5 TOTAL DECREASE ITEMS $1,485.00 NET INCREASE --------------------------------------------------------------------------------------- - - - - -- $4,103.44 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of ($4,103.44) Idadunil (add). An extension of 0 days shall be allowed for completion. ORIGINAL PREVIOUS ADDITION'S DEDUCTIONS THIS ADDITION /S€BrW_TA -N TOTAL CONTRACT AMOUNT $1,325,837.48 $1,726.81 $4,103.44 $1,328,214.11 Approved: Dated: 0912312014 City of Hutchinson -Mayor: Steven W Cook pproved: Dated: 0912312014 City of Hutchinson -City Administrator: Marc A. Sebora HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Revisions to L3/P14 -03 Assessment Roll (SA -5110, 5110A, 51106 & 5110C) Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Due to an unexpected construction cost decrease for work directly funded by Hutchinson Health within a recent City project, City staff requests that the above referenced assessment roll be revised to adjust the assessment amount due from Hutchinson Health. BOARD ACTION REQUESTED: Approval of Resolution to Revise Assessment Roll Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14330 RESOLUTION ADOPTING REVISED ASSESSMENT ASSESSMENT ROLL NO. SA -5110, SA- 5110A, SA- 51106, SA -5110C LETTING NO. 3 /PROJECT NO. 14 -03 WHEREAS, pursuant to resolution and notice of hearing the Council has met and reviewed the proposed assessment for improvement of: Dale Street SW from Century Avenue SW to CSAH 7, TH 15 Service Rd from Echo Drive SE to Hutchinson Health Center, Freemont Ave SE from TH15 to East Termini, Lynn Road SW from Clinton Avenue SW to South Grade Road SW, Michael Court NW and HCC Parking Lot and potentially other roadways by roadway mill /overlay, reclamation or reconstruction by construction of grading, curb & gutter, draintile, bituminous /concrete pavement, storm sewer, watermain, sanitary sewer, street lighting, restoration and appurtenances and South Grade Road Trail (adjacent to South Grade Rd near the Otter Lake bridge) and Century Avenue Trail Overlay (Dale St SW to TH15) by construction of grading, bituminous /concrete pavement, milling, street lighting, electronic crossing warning system, trail, sidewalk, landscaping, restoration and appurtenances. WHEREAS, such proposed assessment was adopted 08/26/2014; and WHEREAS, due to revised construction costs, the assessment on PID# 07- 116 -29 -04 -0050 (County PID# 23.230.0285) is reduced by $1,892.57 from $44,707.89 to $42,815.32. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such revised assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted, and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the 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 of ten (10) years, the first of the installments to be payable on or before the first Monday in January, 2015 and shall bear interest at the rate of _ percent per annum as set down by the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from November 1, 2014, until the 31st day of December 2015. To each subsequent installment when due, interest shall be added 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 Finance Department, except that no interest shall be charged if the entire assessment is paid by the 17th day of November, 2014; and he may, at any time thereafter, pay to the City Finance Department the entire amount of the assessment remaining unpaid, with interest accrued to the 31st 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 23rd day of September 2014. Steven W. Cook, Mayor Marc A. Sebora, City Administrator ASSESSMENT ROLL NO. 0. 5110B, . 09/23/2014 LETTING NO. 3/PROJECT . ,0 COST PER FRONT FOOT: � .. . .: . NT ® ®� ® ®� ®® COMPILEDBY: PVANDERVEEN ASSESSMENT ROLL NO. 0. 0: . 09/23/2014 LETTING NO. 3/PROJECT . ,0 Dale St,eet SW f,.. Ct.,A.e — CSAH 7, TH 15 S—ite Rd f,.. Eth. D,we SEW —thim— Health C-te, .. . COST PER FRONT FOOT: COMPUTED BY: P VANDER VEEN STREET CHEC ED BY: K EXNER �.. . �.: . COMPILEDBY: PVANDERVEEN ASSESSMENT ROLL NO. 0. 0: . 09/23/2014 LETTING NO. 3/PROJECT . ,0 Dale St,eet SW f,.. Ct.,A.e — CSAH 7, TH 15 S—ite Rd f,.. Eth. D,we SEW —thim— Health C-te, F,ee—t SE f,.. TH 15 t. E Te-mi, Ly- R.ad SW f,.. Climt— A-- SW t. S..th G,ade R.ad SW -d! Mithael C.- NW, HHC Pa,kimg L. COST PER FRONT FOOT: COMPUTED BY: P VANDER VEEN STREET CHEC ED BY: K EXNER �.. . NUMBER 0 YEARS io �.: . ■ow .. ®� COMPILED BY: P VANDER VEEN 5110,5110A, 5110B, 5110C -REVISED 09/23/2014 LETTING NO. 3/PROJECT . ,F Dale St,eet S� f,.. Ct.,,A.e SW t. CSAH 7, TH 15 S—ite Rd f,.. Eth. D,we SE t. —thim— Health Ct, COST PER FRONT FOOT: COMPUTED BY: P VANDER VEEN 520.00 STREET CHECKED BY: K EXNER �.. . NUMBER OF YEARS 10 2ND HE4RING �.: . INTE EST RATE: ADOPTED: 08 26 2014 REVISION ADOPTED: 09/23/2014 FINACCT# ))50 i OTx PI. N.. NO 1— DITr...RESS OWNER N. OWNO ... RESS ...ITION OR SU mItOSION FF FF FF T.T.1 1A11 1111 11T1 11LLO $9,310.00 $0.00 $d.ro $9,310.00 ST R214 E.fi $0.00 $On0 7 . $ ®O n0 $0.00 $On0 $0.00 $3,641.0 $3,641.00 $9, 310.00 $0.00 $0.00 $9,310.00 $e,FU0.00 MH 1,11111 mill Imrf I Bill! 11"amilm. mill Ell mill mlwdTfimmuf� COMPILED BY: P VANDER VEEN ASSESSMENT ROLL NO. 5110,5110A, 51108, 5110C - REVISED 09 /23/2014 LETTING NO. 3 /PROJECT NO. 14 -03 Dale Street SW from Century Avenue SWto CSAH J, TH 15 Service Rd from Echo Drive SEto H Ntchi— Health Center, Free —t—SE from TH 15 to Ea Termini, Lynn R.ad SW from Clmt— Avenue SW to SO hGrade R.ad SW and Michael C.. rt NW, H HC Parking LM and Fot tiallyother roadw byroadw ill /overlay, reclamation or ret—r on byt— r-tioN th gradiN curb &gutter, dramtile, bituminous co et li htin and a COST PER FRONT FOOT: COMPUTED BY: P VANDER VEEN 520.00 STREET COST /FF CHECKED BY: K EXNER 1ST HEARING 6, 12'3014 NUMBER OF YEARS 10 2ND HE4RING 08 /26/2014 INTEREST RATE: 2014 BONDS 339 ADOPTED: 08 26 2014 REVISION ADOPTED: 09/23/2014 FINACCT# ))50 i OTx PI. N.. NO 1— DITr...RESS OWNER N. OWNO ... RESS ...ITION OR SU mItOSION FF FF FF T.T.1 1A11 1111 11T1 11LLO $9,310.00 $0.00 $d.ro $9,310.00 ST R214 E.fi $0.00 $On0 7 . $ ®O n0 $0.00 $On0 $0.00 $3,641.0 $3,641.00 $9, 310.00 $0.00 $0.00 $9,310.00 $e,FU0.00 COMPILED BY: P VANDER VEEN ASSESSMENT ROLL NO. 5110,5110A, 51108, 5110C - REVISED 09/23/2014 LETTING NO. 3 /PROJECT NO. 14 -03 Dale S[reef SW from Cen[uryAVenue SW[o CSAH J,TH 15 Service Rd from ECho Drive SE[o Hutchinson Health Center, Freemont AV.SEfrom TH15toEartTermini,Lynn ROad SWfrom Clinton Avenue SWtoSONth Grade ROadSWand Michael C..rt NW,HHCParking L. -Al FOt tiallyotherroadw by roadw ill /overlay, —I amation or reconrtr on byconrtmction of gradin &curb &gutter, draintile, bituminous co et lighting, and a COST- LUMP SUM COMPUTED BY: P VANDER VEEN $42,815.32 PARKINGLOT /LUMP SUM CHECKED BY: K EXNER 1STHEARING 06/10/2014 NUMBER OF YEARS 10 2ND HEARING 08262014 INTEREST RATE: 2014 BONDS 334 ADOPTED: 08 26 2014 REVISION ADOPTED: 09/23/2014 FIN ACCT# 7750 i ail PIO NO. -UNTI 11. NO PROPERTr AO 1. OWNER NAME OWNER AO0RES5 AoOITION ORSUmItISION FF FF FF TIT11 2—.2. 1-1-11111TI o�Iss AqB $o.00 $ono $42,815.32 5o.m 5a2pu.3z $0.00 $,.00 $9] .32 $0.00 $9]pA95.32 TOTAL ASSESSMENT ROLL NO. 5110, 5110A, 51108, 5110C $ukuo.4s $'A".' A,; ,.V $"Ao5.35 $333,1aN3T DEFERRALS ARE FOR 20 YEARS OR UNTIL DEVELOPED,WITH INTEREST ACCRUING, WHICHEVER OCCURS FIRST. HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Out -of -State Travel Request for Keith Messner to Madison, WI Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: City staff requests the approval of out -of -state travel for Keith Messner to attend the Soil Engineering for Non -Soils Engineers and Technicians Course at the University of Wisconsin (Madison, WI) on October 27 — 28, 2014. The estimated total cost for registration and travel is approximately $1,300. Please note that the Engineering related course work administered by this organization has proven to be very worthwhile and beneficial in developing the expertise of engineering technician professionals. Also, this investment will further allow the City to utilize existing staff to fully development and design infrastructure improvement projects in -house which allows the City to not incur substantial project - related consultant fees. BOARD ACTION REQUESTED: Approval of Out -of -State Travel Request Fiscal Impact: $ 1,300.00 Funding Source: Engineering Dept. FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: A basic, practical course Soil Engineering for Non -Soils Engineers and Technicians October 27 -28, 2014 in Madison, Wisconsin Key Reasons Why You Should Attend Upon completion you will: • Have a working knowledge of soil behavior and many of the basic concepts of soil engineering • Know when and where you need soil tests and what types, how to correctly interpret soils reports, what field conditions are unsafe for personnel, and other important considerations • Understand soil compaction and use of geosynthetics in earthworks Who Should Attend • Technicians and inspectors • Project engineers and managers • Architects and landscape architects • Geologists and earth scientists • Civil and other engineers • Construction personnel • Industry tech /sales representatives • Public works professionals • Engineers -in- training Attorneys We assume you have no formal geotechnical education but are working in this field and need to develop your understanding of the basics. The course is focused on helping you understand concepts and solutions rather than rigorous mathematics, theory, and research. Expert Instructors Tuneer S. Edil, PE, is a professor emeritusof civil and environmental engineering and geological engineering at the UW- Madison. His research and teaching interests include engineering properties and behavior of soils, coastal slope stability, transportation geotechnics, geosynthetics, waste disposal and containment, and construction over soft organic ground. Edil is active in ASCE, ASTM, ISSMFE, and other national and international organizations. He is Distinguished Member of ASCE and received Karl Terraghi Award from Geo Institute and Special Science Award in the Republic of Turkey as a recognized researcher with an established national and international reputation. David J. Elton, PE, is a professor of civil engineering at Auburn University. His research and teaching interests include geotechnical engineering, geosynthetics, highway engineering, anti landfills. Elton conducted the widely acclaimed Industrial Fabrics Association International Professor Training Course for Geosynthetics. He was editor of International Geosynthetics Society News, is active in ASCE, TRI3, and IGS, anti serves as president of the North American Geosynthetics Society (NAGS). James M. Tinjum, PE, is an associate professor at Engineering professional Development, UL's'- Madison. He has experience in private practice and extensive technical knowledge in geotechnical and remedial investigation, design, and construction, including specialized expertise in geotechnics for energy Facilities. Active in ASCE, he has received a number of awards. Special Benefits for You You will have many opportunities to interact with the instructors, share your concerns, and benefit from their experience, research, and knowledge of soil fundamentals. All instructors are professional engineers dedicated to providing an interactive learning experience, aiding you in solving soil problems you cannot now solve, and helping you understand soil behavior. Also you will receive a comprehensive and complete set of course notes and a CD of references, plus our unique Soil Classification Board, for use back home in your practice. (Reminder: leave room in your suitcase for our 2 -inch notebook and board.) These documents will enable you to learn in the Future as you work with soil ap jneering. They are not available for sale to those not attending this course. x i .. -Now- —7- —z 1 LAO_ Soil Engineering for Non -Soils Engineers and Technicians October 27 -28, 2014 in Madison, Wisconsin ' ` ) ` ?& # 3ooVOe19 1 riIGJF f'C-r -'C Course Outline Day 1 Welcome, Introduction to the Course Jornes M. Tinjum, PE Department of Engineering Professional Development JW- Madison Review of Soil Properties and Testing Techniques • General soil behavior, structure, and fabric Soil classification via USCS, AASHTO, JSDA,OSHA Testing standards for compaction, consolidation, and permeability strength Typical soil properties James M. Tinjum, PE Soil Investigations, Reporting, and Specifications Planning the field investigation • investigation tools and techniques • Understanding and interpreting sails reports • Interpretation of soil type for OSHA compliance James M. Tinjum, PE _ Vertical Earth Pressures and Stresses • Total and effective stresses Distribution of loads to underlying deposits • Effects of water table fluctuations • Dynamic effects on soil David J. Elton, PE Professor, Civil Engineering Auburn University Effective Stress and Shear Strength of Soil Angle of Internal friction and cohesion Pore water pressure and effective stress Examples of strength parameters used in soil design Importance of Water in Soil • Measuring or estimating permeability of soil Seepage forces, terms, and measurement Application to compaction control, pavement design, foundation and wall design, dewatering James M. Tinjum, PE Lateral Earth Pressure on Walls and Basements, Trenches, and Bracing Active, passive, and at -rest lateral earthpressures Effects of water on earth pressures Backfill compaction and soil reinforcements Trenching and bracing procedures David J. Elton, PE Day 2 How and Why Soil Compresses and Settles • Causes of settlements • Allowable amounts of settlement • Methods to control and mitigate settlement Tuncer B. Edil, PE Professor, Civil and Environmental Engineering and Geological Engineering UW- Madison Soil Compaction and Improvement How to compact soil (sands and clay) Laboratory and field test procedures Compaction specifications and acceptance criteria Alternative soil improvement methods David J. Elton, PE Slope Stability, Landslides, and Stabilization Types of slopes and common failures Methods to determine stability and safety Effects of water in slopes • Slope remediation TuncerB. Edil, PE The Mysterious Soils Wizard Construction Procedures for Earthworks • Cut and fill slopes and embankments • Excavations and trenches • Dos and don'ts of earthwork construction Applications of Geosynthetics in Soils Reinforcement, filtration, and erosion control Specifications and test procedures David J, Elton, PE Soils Engineering for Roads The pavement system Soil inputs for subgrade, subbase, and base design Pavement load analysis • Unpaved access roads Note: The course outline and schedule are somewhat flexible and will be adjusted to best fit the needs of the participants. You will be asked for your specific interests, needs, and questions. We will do our very best to tailor our presentations to address all your concerns. There will be plenty of scheduled time for question - and- answer sessions and breaks. Course Schedule Registration and course will be held at The Pyle Center 702 Langdon Street Madison, WI Day 1 7:15 a.m. to 8:00 a.m. Registration and Continental Breakfast B -00 a.m. to 5:15 p.m. Class Day 2 7:00 a.m. to 7:45 a.m. Continental Breakfast 7:45 a.m. to 5:00 p.m. Class Midmorning and midafternoon refreshment breaks and noon lunch will be provided both days. Sampling of Organizations Whos Have Benefited From Attending 1 American Transmission Co. Baxter & Zh'oodman, Inc. Atkinson Contractors, LP Bureau of Indian Affairs Burlington Northern Santa Fe Railway California Department of Water Resources California Geological Survey California "later Quality Board Cherokee Nation Chicago Transit Authority CN Railroad CSX 'Transportation Federal Aviation Administration Federal Energy Regulatory Commission Federal Highway Administration Geopier Foundation Company H DR Engineering HNTB Indian Health Service Jacques Whitford & Associates Four Easy Ways to Enroll Internet: Phone: Mail to: l��I r Fax: — ' epd.engr.wisc.edulwebP621 r� 800- 462 -0876 or The Pyle Center u 800- 442.4214 or 668 -262 -1299 f TDD 265 -2370] Attn: Engineering Registration 608 -265 -3448 702 Langdon Street Madison, Wisconsin 53706 Course Information Additional Enrollees Name Please enro11 me in Soil Engineering for Hon -So its Engineers and Technicians Course 0621 October 27 -28, 2014 in Madison, Wisconsin Fee: 51095 Title _ - -_ ❑ Team Discount: $995 each when two or more enroll from the same organizatien E-mail _ ❑ 1 cannot attend at this time. Please send me brochures on future courses. Name Tittle Personal Information {Please print clearly.} E -mail Name Keith Messner Title _ Enclineerinq Technician company City of Hutchinson Address 111 Hassan St SE Hutchinson MN 55350 Phone f3 -- 7-1 -1-234 A23g Fc, r_31_24y?24 -4240 Email kmessner @ci.hutchinson.mn.us Employees his Course Kwik Trip Corporation METRO St. Louis, Missouri National Park Service Pierce County Utilities Potowatomi Nation Shannon & Wilson, Inc. Stanley Consultants TKDA Transportation Safety Board of Canada URS Corporation US Army Corps of Engineers US Army, Navy, and Air Force US Department of Interior USDA Forest Service US Fish and Wildlife Service US Nuclear Regulatory Commission VIA Rail Canada Participants from 47 states and provinces and many dozens from cities, counties, villages, state agencies, and DOTS. Billing Information J Eill my company J P.O. or check mlosed hinds milw -aiad sail ❑qW ❑ ❑ Cardholder's Name Card No. uw# U +'l m ONk the hw d yp� are a p lso'r Mth a duty and dem spewl +Ci7rnN7dlllh3. A usapmet wrwe reprtPrurlve will Contact yw. aequem F*M mailer pallet. will 1m keptmnfidmlal. Need to Know More? Call toll free 800- 462 -0876 and ask for Program Director: James M. 'rinjum, PE tinjuiii@epd.engr.wisc.edu Program Associate: Sandy Krentz k rentz @epd.en gr. w isc. ed u General Information Fee Covers Two full days of instruction, comprehensive course notes and our unique Soil Classification Board (please leave roam in your luggage for a 2 -inch course notebook and board), references for Further study, continental breakfasts, break refreshments, lunches, and certificate. Cancellation If you cannot attend, please notify us at least seven days prior to the course start, and we will refund your fee. Cancellations received after that date and no -shows are subject to a $150 administrative fee per course. You may enroll a substitute at any time before the course starts. Location The Pyle Center, 702 Langdon Street, Madison, WI. Phone messages: 608 - 262 -1122. Accommodations We have reserved a block of Luu!:s,%rooms (rates starting at $89, including continental breakfast) at Lowell Center, 610 Langdon St. Reserve a room online epd.engr.wisc.edullodgingP621 or call 866 -301 -1753 or 608- 256-2621 and indicate that you will be attending this course under group code P621 F.PD. Room requests after September 26 will be subject to availability. Other fees and restrictions may apply. We have reserved a second block of guest rooms [rates starting at $89, including parking; and Madison Taxi's silver cab from airport] at Campus Inn, 601 Langdon Street, Madison, Wl. Reserve a room online at epd.engr.wisc.edu /lodgingBP621 or call 800- 589 -6285 or 608 - 257 -4391. Other fees and restrictions may apply. Earn Continuing Education Credit Soil Engineering is a qualifying course for continuing professional competency with clear purpose and objectives, which will maintain, improve, or expand your skills and knowledge. By participating in this course you will earn either 15 Professional Development Hours (PDH), 1.5 Continuing Education Units (CEU), or 15 ALA Learning Units (LU /HSW). e• °°�y- p p u+ Uj N 7 Z '�% z _ Q _ ro _W w 0 C C V tZ3 � � r.i � ? � C`1 1'+7 MW ✓ �"I I�I a� M m O i IJ fl a �^ 0 CJ l` o .N LA t W Q • I� _ rr� ,D V CSI LA W tA ,V N _. C: V � =s 'j) u VG O +� "� CL 0 Z H 0 2 z 0 Z r Y 0 V r C C L Q J 0� W W Z W Z m W 5 Q x N c 7 0 V F (L 0 x N m Y ^i c w 3� Q G } a J �J LL A LA •L 4C M lA 0 Z I WISCONSIN LtiIL'pgsl l T' ni 'r. .. '.SIN DITILRUMF14T OF LN(ANURING PROFFSSIONAI. DF.vTI.oPMT•.I,N7T An acclaimed national course on Soil Engineering for Non -Soils Engineers and Technicians October 27 -28, 7014 Madison, Wisconsin A, practical, entry -level course describing and analyzing each element of soil engineering • Soil classification and behavior • Field investigations and soil reports • Importance of water • Earth pressure and stress • Soil strength and settlement • Compaction of sand and clay • Construction procedures and stability of cuts and fills • Geosynthetics and earthworks • Soils engineering for roads and pavement HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Out of State Travel Request - Chief Dan Hatten Department: Police LICENSE SECTION Meeting Date: 9/23/2014 Application Complete Yes Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Request for approval of out of state travel for Police Chief Daniel T. Hatten to attend the International Chiefs of Police Association Training Conference in Orlando Florida. The training is October 25, 2014 through October 28, 2014. Featuring renowned keynote speakers, forums and technical workshops, and the largest exhibit hall of services in the law enforcement community, the premier event for law enforcement provides thousands of dedicated professionals from across the country and around the world with an exceptional, concentrated forum for learning, collaborating and experiencing new technology. Join delegates from local, state, county, tribal and federal agencies at the IACP Annual Conference and Expo, as they address law enforcement's critical issues, advance their knowledge and careers, and equip their operations for the future. BOARD ACTION REQUESTED: The Hutchinson Police Department recommends approval. Fiscal Impact: $ 800.00 Funding Source: PD Training Budget FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: 0 Remaining Cost: $ 0.00 Funding Source: 0 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration for Out of State Travel for Tom Kloss & Angie Radke Department: IT LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Tom Kloss Agenda Item Type: Presenter: Tom Kloss Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND /EXPLANATION OF AGENDA ITEM: The City went through a comprehensive software selection process early in 2013. The process included a detailed Request For Proposal and detailed on -site software demos for the products being considered. As a result of this process, the City purchased software and support services from Caselle /Civic Systems for the following City functions: finance, payroll, utility billing, human resources, employee time entry, licensing, Creek Side. The product was chosen, in large part, due to the advertised ability to incorporate the Creekside operation. After almost eleven months since the initial conversion, the product has proven to be more cumbersome and has resulted in more inefficiencies than what we experienced with the software products used previously. Since conversion, the vendor has been engaged in almost constant programming of their product to attempt to provide the functions they assured us their product could provide. The current vendor has also failed to meet its stated and promised levels of support and timely support. In addition, the vendor has not provided the promised applications for assessments and building permits. At this point, we are looking at BS & A software, a product we considered during the RFP process and which scored very highly by a great majority of City staff during the product demonstrations. We recently asked BS & A to complete additional short demos on their software. Again, all staff involved seemed excited at the prospect of implementing a product that appears to work very well and satisfies most if not all aspects of each department's software function needs. To further evaluate the BS & A software and before making any recommendation to the Council regarding a possible software change, staff feel it is necessary and extremely valuable to conduct a site visit to a City using the BS & A software. Such a visit will allow us to better determine if the advertised performance and efficiencies are actually realized in a real world scenario. The City we plan to visit is in Michigan with a population over 32,000 and that we have been informed processes twice as many water bills in 1/10 the time our current application takes. BOARD ACTION REQUESTED: Fiscal Impact: $ 1,200.00 Funding Source: IT & Water FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: 5K family Run /Walk (Spooky Sprint) Department: Police LICENSE SECTION Meeting Date: 9/23/2014 Application Complete Yes Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 5 License Contingency No Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: The 5K family Run/Walk Saturday October 25th, 2014. We are in the planning stages for a 5k (3.1 mile) family fun run and walk to be staged in Hutchinson with a start time of 9AM. The proceeds of this run will go to the REACH program at the Hutchinson High School. We want to take advantage of a great resource in town, the area around the Library (Library Square). As such, we would like to start and end this race there, on 1 st Ave SE. We realize that having a 3 mile run throughout the city may cause disruption, so we are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail. Our goal is to offer 2 runs, a 5k run and walk, and a'h mile dash for children. The 'h mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." I have met with the Hutchinson Police Department about the course and modified it as suggested. I am seeking approval for closure of 1 st Ave SE for this run. We will also be running down Adams Street towards the Luce Line, but our belief is that Adams will not need to be closed off. We will be using cones to create a separation lane on Adams. As I stated I have discussed this with the Hutchinson Police Dept. SE 1 st Ave SW will be closed from Main St to Adams St during the hours of 6:00 am until 12:00 pm or as determined by the Hutchinson Police Dept on Saturday October 25th, 2014. The businesses impacted by this temporary closure will be notified and their customers impacted by this closure will be given access to the businesses during the street closure. We understand there may be costs associated with this Traffic Control and have accounted for this in our budget. We are looking forward to this new event in Hutchinson, and to continuing it in the years to come. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Dear Council Members: The Hutchinson Hockey Association is requesting permission from the City Council to use the parking lot area just North of the East Arena & East of the West arena on Saturday October 1 V' from approximately 12:00 -7pm that day for an "ICE- INIHOG ROAST Fall Hockey Event. The Hog Roast event will immediately follow "Let's Come Try Hockey" day that runs from 12:00 - 3:00pm. At "Let's Come Try Hockey" kids are encouraged to come out and try the sport of hockey, get fitted for free gear, and spend some time with other kids that may have an interest in hockey. For the parents it's an opportunity to find out about the sport of hockey, talk with coaches, ask questions about how the association operates, and provides an avenue to meet other parents with kids in hockey. The Hog Roast event will consist of a meal, beverages, and fun games for the whole family. This is an opportunity for hockey families to enjoy some time together while getting to know other families in hockey or within the community. This event is open to the public and I would encourage anyone interested in supporting the sport of hockey or would like to come out for a nice meal to come out to the event. There will certainly be some good food, games and good company for everyone. If there are any questions about this event please feel free to contact me. Sincerely, f Jeremy Carter HHA President CITY OF HUTCHINSON Council Check Register 1 9/17/2014 Check Issue Dates: 9/10/2014 - 9/23/2014 Check Number Check Issue Date Amount Vendor Account Description 182581 9/10/2014 87.20 SCHMIT, DARON Refunds & Reimbursements 182582 9/10/2014 2,173.73 WELLS FARGO Small Tools & Minor Equipment 182586 9/23/2014 1,903.21 3D SPECIALTIES Sign Repair Materials 182587 9/23/2014 505.00 AARP Other Professional Services 182588 9/23/2014 823.49 ACE HARDWARE Equipment Parts 182589 9/23/2014 44.00 AG SYSTEMS Automotive R &M 182590 9/23/2014 848.19 ALPHA WIRELESS Phone Services 182591 9/23/2014 111.00 AMERICAN BOTTLING CO Cost of Sales - Miscellaneous 182592 9/23/2014 300.00 AMERICAN RED CROSS Safety Supplies 182593 9/23/2014 20.53 AMERICAN WELDING & GAS Automotive R &M 182594 9/23/2014 147.28 AMERIPRIDE SERVICES Contractual R &M 182595 9/23/2014 351.00 ANIMAL MEDICAL CENTER ON CROW RIVER Other Professional Services 182596 9/23/2014 458.60 ARCTIC GLACIER USA INC. Cost of Sales - Miscellaneous 182597 9/23/2014 84.64 ARROW TERMINAL LLC Street Maintenance Materials 182598 9/23/2014 433.00 ARTISAN BEER COMPANY Cost of Sales - Beer 182599 9/23/2014 440.28 AUTO VALUE - GLENCOE Street Maintenance Materials 182600 9/23/2014 222.00 B & L UTILITY MAINTENANCE Contractual R &M 182601 9/23/2014 1,950.16 BELLBOY CORP Cost of Sales - Miscellaneous 182602 9/23/2014 40.00 BENSON, CARLA Park Shelter Refund 182603 9/23/2014 595.00 BERNICK'S Cost of Sales - Miscellaneous 182604 9/23/2014 989.00 BLACK HILLS AMMUNITION Operating Supplies 182605 9/23/2014 4,750.00 BLUE VALLEY SOD Inventory - Bulk Product 182606 9/23/2014 151.10 BRANDON TIRE CO Automotive R &M 182607 9/23/2014 428.25 BRAUN INTERTEC CORP Other Professional Services 182608 9/23/2014 1,151.49 BUSINESSWARE SOLUTIONS Duefrom HRA 182609 9/23/2014 37,024.45 C & L DISTRIBUTING Cost of Sales - Beer 182610 9/23/2014 78.00 CAMARILLO, CARISA Refund Activity Fees 182611 9/23/2014 276.00 CANNON RIVER WINERY Cost of Sales - Wine 182612 9/23/2014 5,472.00 CARS ON PATROL SHOP LLC Machinery & Equipment 182613 9/23/2014 968.47 CENTRAL HYDRAULICS Equipment Parts 182614 9/23/2014 75.50 CENTRAL LANDSCAPE SUPPLY Operating Supplies 182615 9/23/2014 127.72 CENTRAL MCGOWAN Equipment Rental 182616 9/23/2014 30.00 CMK SERVICES LLC Other Professional Services 182617 9/23/2014 484.88 COMDATA CORPORATION Operating Supplies 182618 9/23/2014 287,612.50 COMMERCIAL REFRIGERATIONS SYSTEMS INC Machinery & Equipment 182619 9/23/2014 128.84 CRAIG, MIKE Automotive R &M 182620 9/23/2014 3,051.47 CREEKSIDE SOILS Operating Supplies 182621 9/23/2014 738.91 CROW RIVER AUTO & TRUCK REPAIR Automotive R &M 182622 9/23/2014 97.63 CROW RIVER PRESS INC Printing & Publishing 182624 9/23/2014 1,843.07 CURTIS 1000 INC - MN Printing & Publishing 182625 9/23/2014 2,000.00 DANA'S DOG SPA & CROW RIVER SIGNS EDA Grant 182626 9/23/2014 45.00 DAVE GRIEP CLEANING Contractual R &M 182627 9/23/2014 2,040.00 DAVE'S PALLET SERVICE Inventory- Process Material 182628 9/23/2014 5,749.70 DAY DISTRIBUTING Cost of Sales - Beer 182629 9/23/2014 5,673.08 DPC INDUSTRIES INC Chemicals & Chemical Products 182630 9/23/2014 56.85 DROP -N -GO SHIPPING INC Postage 182631 9/23/2014 1,780.16 DUFF BRUSH LLC Equipment Parts 182632 9/23/2014 904.39 DYNA SYSTEMS Street Maintenance Materials 182633 9/23/2014 480.00 E. G. RUD & SONS INC. Other Professional Services 182634 9/23/2014 460.37 E2 ELECTRICAL SERVICES INC Repair & Maintenance Supplies 182635 9/23/2014 196.12 ECOLAB PEST ELIMINATION Contractual R &M 182636 9/23/2014 99.99 EISCHENS, THERESA Uniforms & Personal Equip 182637 9/23/2014 29,242.25 ELECTRIC PUMP Contractual R &M 182638 9/23/2014 177.59 EXTREME BEVERAGE LLC Cost of Sales - Miscellaneous 182639 9/23/2014 717.98 FASTENAL COMPANY Motor Fuels & Lubricants 182640 9/23/2014 100.00 FATIEVA, MARINA Safety Supplies 182641 9/23/2014 228.00 FIRST CHOICE FOOD & BEVERAGE SOLUTIONS Office Supplies 182642 9/23/2014 119.95 FORMS & SYSTEMS OF MINNESOTA Operating Supplies 182643 9/23/2014 125.84 FRANEK, CORY Travel /Conference Expense 182644 9/23/2014 32,947.47 FRATZKE, LEE AND RACHELLE HRA Loan 182645 9/23/2014 168.09 G & K SERVICES Operating Supplies 182646 9/23/2014 80.00 GARBERG, MARCIA Refund Activity Fees 182647 9/23/2014 5,000.00 GAVIN WINTERS TWISS THIEMANN & LONG LTD Other Professional Services 182648 9/23/2014 106.88 GEB ELECTRICAL INC Small Tools & Minor Equipment 182649 9/23/2014 50.00 GLENCOE SILVER LAKE COMMUNITY ED Other Professional Services 182650 9/23/2014 120.00 GOLDEN TONGUE CONSULTANTS Other Professional Services 182651 9/23/2014 78.30 GRAINGER Equipment Parts 182652 9/23/2014 3,260.00 HANSON & VASEK CONSTRUCTION Contractual R &M 182653 9/23/2014 1,955.07 HAWKINS INC Chemicals & Chemical Products 182654 9/23/2014 1,470.00 HEWLETT - PACKARD CO Small Tools & Minor Equipment 182655 9/23/2014 25.70 HILLYARD / HUTCHINSON Operating Supplies 182656 9/23/2014 358.91 HIRSHFIELD'S INC Operating Supplies 182657 9/23/2014 595.00 HOLT MOTORS INC Operating Supplies 182658 9/23/2014 875.00 HOLT TOUR AND CHARTER INC. Operating Supplies 182659 9/23/2014 400.00 HRA Admin /Loan Fees 182660 9/23/2014 11,824.52 HUTCHINSON CO -OP Repair & Maintenance Supplies 182661 9/23/2014 2,008.41 HUTCHINSON LEADER Advertising 182662 9/23/2014 1,300.00 HUTCHINSON SENIOR ADVISORY BOARD Operating Supplies 182663 9/23/2014 79,884.25 HUTCHINSON UTILITIES Utilities 182664 9/23/2014 263.87 HUTCHINSON WHOLESALE Contractual R &M 182665 9/23/2014 154.18 HUTCHINSON, CITY OF Utilities 182666 9/23/2014 8.35 INDEPENDENT EMERGENCY SERVICES Equipment Rental 182667 9/23/2014 223.68 INDIAN ISLAND WINERY Cost of Sales - Wine 182668 9/23/2014 1,077.01 INDUSTRIAL PNEUMATIC SYSTEMS Equipment Parts 182669 9/23/2014 2,459.101NFRATECH Safety Supplies 182670 9/23/2014 3,489.88 INTERSTATE POWER COMPANIES INC Equipment Parts 182671 9/23/2014 95.00 INTOXIMETERS INC Operating Supplies 182672 9/23/2014 492.95 J & N TACTICAL Operating Supplies 182673 9/23/2014 1,903.94 JEFF MEEHAN SALES INC. Accrued Payable - Commissions 182674 9/23/2014 24.00 JERRY'S TRANSMISSION SERVICE Automotive R &M 182675 9/23/2014 120.00 JG PRESS INC. Dues & Subscriptions 182676 9/23/2014 733.25 JJ TAYLOR DIST OF MN Cost of Sales - Beer 182677 9/23/2014 15,712.30 JOHNSON BROTHERS LIQUOR CO. Cost of Sales - Wine 182678 9/23/2014 200.00 JORDAHL, JIM Operating Supplies 182679 9/23/2014 365.50 KDUZ KARP RADIO Advertising 182680 9/23/2014 117.60 KNIFE RIVER Operating Supplies 182681 9/23/2014 72.63 KOBOW, BECKY Equipment Parts 182682 9/23/2014 2,242.50 KOHLS SWEEPING SERVICE Contractual R &M 182683 9/23/2014 58.95 KRANZ LAWN & POWER Small Tools & Minor Equipment 182684 9/23/2014 250.00 KU EH L, JAMES W Contractual R &M 182685 9/23/2014 777.05 L & P SUPPLY CO Automotive R &M 182686 9/23/2014 45,047.00 LEAGUE OF MN CITIES -INS TRUST Worker's Comp Insur Premiums 182687 9/23/2014 22,401.14 LOCHER BROTHERS INC Cost of Sales - Beer 182688 9/23/2014 7,662.00 LOGIS Miscellaneous Expense 182689 9/23/2014 50.00 LUTH ENS, SHANE Refund Deposit 182690 9/23/2014 14.11 MATHESON TRI -GAS INC Equipment Rental 182691 9/23/2014 398.00 MAYTAG LAUNDRY & CAR WASH Other Professional Services 182692 9/23/2014 674.19 MCLEOD COUNTY AUDITOR-TREASURER Licenses & Taxes 182693 9/23/2014 3,096.26 MCLEOD COUNTY AUDITOR-TREASURER Licenses & Taxes 182694 9/23/2014 2,873.88 MCLEOD COUNTY AUDITOR-TREASURER Licenses & Taxes 182695 9/23/2014 65.63 MCLEOD COUNTY AUDITOR-TREASURER Licenses & Taxes 182696 9/23/2014 231.65 MCLEOD COUNTY RECORDER Other Professional Services 182697 9/23/2014 236.00 MCLEOD COUNTY SOLID WASTE MANAGEMENT Inventory- Process Material 182698 9/23/2014 85.00 MECA Travel /Conference Expense 182699 9/23/2014 3,685.06 MEEKER WASHED SAND & GRAVEL Inventory- Bulk Product 182700 9/23/2014 789.28 MENARDS HUTCHINSON Operating Supplies 182701 9/23/2014 30.00 MESSAGE MEDIA Phone Services 182702 9/23/2014 149.35 MINI BIFF Equipment Rental 182703 9/23/2014 7,364.00 MINNESOTA DEPT OF HEALTH Water - State Testing Fee 182704 9/23/2014 2,789.61 MINNESOTA DEPT OF MOTOR VEHICLE Miscellaneous Expense 182705 9/23/2014 585.00 MINNESOTA MUNICIPAL UTILITIES ASSN Travel /Conference Expense 182706 9/23/2014 1,339.80 MINNESOTA VALLEY TESTING LAB Other Professional Services 182707 9/23/2014 394.04 MMC Contractual R &M 182708 9/23/2014 195.00 MN SCIA Travel /Conference Expense 182709 9/23/2014 172.08 MORGAN CREEK VINEYARDS Cost of Sales - Wine 182710 9/23/2014 286.31 NORTHERN BUSINESS PRODUCTS Operating Supplies 182711 9/23/2014 265.20 NORTHERN GREEN EXPO Travel /Conference Expense 182712 9/23/2014 221.96 NORTHERN SAFETY TECHNOLOGY Equipment Parts 182713 9/23/2014 431.97 NORTHERN STATES SUPPLY INC Equipment Parts 182714 9/23/2014 195.65 OFFICE DEPOT Office Supplies 182715 9/23/2014 500.00 PAUMEN & ASSOCIATES Other Professional Services 182716 9/23/2014 734.00 PAUSTIS & SONS WINE CO Cost of Sales - Wine 182717 9/23/2014 5,076.00 PEAT INC. Inventory- Bulk Product 182718 9/23/2014 24,239.91 PHILLIPS WINE & SPIRITS Cost of Sales - Wine 182719 9/23/2014 1,177.00 PIONEER MANUFACTURING CO Sign Repair Materials 182720 9/23/2014 39,261.50 PIONEERLAND LIBRARY SYSTEM Other Professional Services 182721 9/23/2014 456.16 PLUNKETTS PEST CONTROL Contractual R &M 182722 9/23/2014 285.65 POSITIVE ID INC Miscellaneous Expense 182723 9/23/2014 1,500.00 POSTMASTER Postage 182724 9/23/2014 1,308.54 PRAIRIE MOON NURSERY Operating Supplies 182725 9/23/2014 321.83 QT PETROLEUM ON DEMAND LLC Repair & Maintenance Supplies 182726 9/23/2014 149.90 QUADE ELECTRIC Equipment Parts 182727 9/23/2014 14.99 QUILL CORP Office Supplies 182728 9/23/2014 460.00 R & R SPECIALTIES INC Equipment Parts 182729 9/23/2014 1,113.40 R.J.L. TRANSFER Freight 182730 9/23/2014 740.00 RANDY'S REPAIR SERVICE Operating Supplies 182731 9/23/2014 173.04 RBSCOTT EQUIPMENT Repair & Maintenance Supplies 182732 9/23/2014 4,300.00 RDO TRUST #80 -5800 Machinery & Equipment 182733 9/23/2014 11,046.98 REINER ENTERPRISES INC Freight - Bulk 182734 9/23/2014 60.00 RENVILLE COUNTY SHERIFF DEPT Other Professional Services 182735 9/23/2014 15,411.39 RIDDELL ALL AMERICAN SPORTS CORP Operating Supplies 182736 9/23/2014 701.37 RITE ENTERPRISES INC Contractual R &M 182737 9/23/2014 125.00 ROTO ROOTER Contractual R &M 182738 9/23/2014 531.99 ROYALTIRE Equipment Parts 182739 9/23/2014 339.36 RUNNING'S SUPPLY Uniforms & Personal Equip 182740 9/23/2014 18.00 SAGE PUBLICATIONS Dues & Subscriptions 182741 9/23/2014 243.25 SAM'S TIRE SERVICE Contractual R &M 182742 9/23/2014 40.00 SCHUMANN, KIMBERLEY Park Fees 182743 9/23/2014 47.94 SHRED -IT USA INC- MINNEAPOLIS Refuse - Recycling 182744 9/23/2014 10,125.00 SIGNATURE MASONRY INC. Buildings & Structures 182745 9/23/2014 747.36 SIMONSON LUMBER CO Operating Supplies 182746 9/23/2014 4,805.59 SKYVIEW DAIRY INC Inventory- Bulk Product 182747 9/23/2014 11,823.00 SMSC ENTERPRISES Inventory- Bulk Product 182748 9/23/2014 133.00 SCRENSEN'S SALES & RENTALS Equipment Rental 182749 9/23/2014 9,974.02 SOUTHERN WINE & SPIRITS OF MN Cost of Sales - Wine 182750 9/23/2014 8,708.42 SPARTAN STAFFING Other Professional Services 182751 9/23/2014 89.00 SPS COMMERCE Dues & Subscriptions 182752 9/23/2014 250.00 STANDARD PRINTING Sign Repair Materials 182753 9/23/2014 720.26 STAPLES ADVANTAGE Office Supplies 182754 9/23/2014 4,638.39 STEVENS ENGINEERS INC Other Professional Services 182755 9/23/2014 477.89 STRATEGIC EQUIPMENT AND SUPPLY Cost of Sales - Miscellaneous 182756 9/23/2014 6,639.94 STREICH TRUCKING Freight - Bulk 182757 9/23/2014 114.17 SUBWAY WEST Operating Supplies 182758 9/23/2014 15.43 TARGET Office Supplies 182759 9/23/2014 1,134.59 TASC Admin Fees - HSA /Flex 182760 9/23/2014 392.00 TESSMAN COMPANY Repair & Maintenance Supplies 182761 9/23/2014 682.30 THOMSON REUTERS -WEST Other Professional Services 182762 9/23/2014 1,080.00 TKO WINES Cost of Sales - Wine 182763 9/23/2014 304.86 TOWN & COUNTRY GLASS Automotive R &M 182764 9/23/2014 245.00 TRI COUNTY WATER Operating Supplies 182765 9/23/2014 4,050.00 U.S. WATER SERVICES Chemicals & Chemical Products 182766 9/23/2014 101.31 UNIVERSAL ATHLETIC SERVICE INC Repair & Maintenance Supplies 182767 9/23/2014 2,557.44 VERIZON WIRELESS Phone Services 182768 9/23/2014 10,532.00 VIKING BEER Cost of Sales - Beer 182769 9/23/2014 232.80 VIKING COCA COLA Cost of Sales - Miscellaneous 182770 9/23/2014 776.00 VINOCOPIA INC Cost of Sales - Wine 182771 9/23/2014 2,870.51 WARRIOR MANUFACTURING LLC Refund DEED Payment 182772 9/23/2014 13,508.57 WASTE MANAGEMENT OF WI -MN Refuse - Disposal 182773 9/23/2014 39,286.39 WASTE MANAGEMENT OF WI -MN Refuse - Services 182774 9/23/2014 60.00 WELCOME NEIGHBOR Advertising 182775 9/23/2014 3,500.00 WESTAFER ENTERPRISES Other Professional Services 182776 9/23/2014 4,388.40 WINE COMPANY, THE Cost of Sales - Wine 182777 9/23/2014 26,461.34 WIRTZ BEVERAGE MINNESOTA Cost of Sales - Wine 182778 9/23/2014 2,171.00 WITTE SOD FARMS INC Operating Supplies 182779 9/23/2014 5,184.93 WM MUELLER & SONS Street Maintenance Materials 182780 9/23/2014 407.32 ZELLAS Operating Supplies 182781 9/23/2014 101.76 ZWILLING, TROY Travel /Conference Expense Grand Totals: 971,960.56 ELECTRONIC FUNDS TRANSFERS 9/23/2014 TAX FUND PAYABLE TO AMOUNT FUEL HATS MN DEPT OF REV $1,617.95 SALES TAX LIQUOR MN DEPT OF REV $50,459.00 SALES TAX PRCE CIVIC ARENA MN DEPT OF REV $1,010.00 SALES & USE TAX WATER SEWER CREEKSIDE MN DEPT OF REV $12,559.00 $65,645.95 CITY OF HUTCHINSON Check Register - Council Check Register Page: 1 Report Dates: 8/31/2014 - 9/13/2014 Sep 16, 2014 03:32PM Report Criteria: Transmittal checks included Pay Period Journal Check Check Date Code Issue Date Number Payee Amount 09/13/2014 CDPT 09/16/2014 182583 Assurant Employees Benefits 893.95- 09/13/2014 CDPT 09/16/2014 182584 HART 583.70- 09/13/2014 CDPT 09/16/2014 182585 MNPEA 468.00- 09/13/2014 CDPT 09/16/2014 9161401 AFLAC 131.77- 09/13/2014 CDPT 09/16/2014 9161402 EFTPS 11,935.07- 09/13/2014 CDPT 09/16/2014 9161402 EFTPS 11,935.07- 09/13/2014 CDPT 09/16/2014 9161402 EFTPS 3,596.75- 09/13/2014 CDPT 09/16/2014 9161402 EFTPS 3,596.75- 09/13/2014 CDPT 09/16/2014 9161402 EFTPS 24,972.88- 09/13/2014 CDPT 09/16/2014 9161403 ICMA 1,310.00- 09/13/2014 CDPT 09/16/2014 9161404 ING 975.00- 09/13/2014 CDPT 09/16/2014 9161405 Minnesota Dept. of Revenue 10,894.58- 09/13/2014 CDPT 09/16/2014 9161406 MN Child Support System 41.87- 09/13/2014 CDPT 09/16/2014 9161407 MNDCP 250.00- 09/13/2014 CDPT 09/16/2014 9161408 PERA 11,864.15- 09/13/2014 CDPT 09/16/2014 9161408 PERA 11,864.15- 09/13/2014 CDPT 09/16/2014 9161408 PERA 5,974.60- 09/13/2014 CDPT 09/16/2014 9161408 PERA 8,961.87- 09/13/2014 CDPT 09/16/2014 9161408 PERA 36.16- 09/13/2014 CDPT 09/16/2014 9161408 PERA 36.16- 09/13/2014 CDPT 09/16/2014 9161408 PERA 1,898.27- 09/13/2014 CDPT 09/16/2014 9161409 TASC -Flex 225.00- 09/13/2014 CDPT 09/16/2014 9161409 TASC -Flex 1,322.25- 09/13/2014 CDPT 09/16/2014 9161410 TASC -HSA 4,253.09- 09/13/2014 CDPT 09/16/2014 9161410 TASC -HSA 3,553.44- 09/13/2014 CDPT 09/16/2014 9161410 TASC -HSA 1,008.44- 09/13/2014 CDPT 09/16/2014 9161410 TASC -HSA 592.24- 09/13/2014 CDPT 09/16/2014 9161410 TASC -HSA 849.22 - Grand Totals: 28 124,024.43- CITY OF HUTCHINSON Council Check Register 2 Check Issue Dates: 9/10/2014 - 9/23/2014 9/17/2014 Check Number Check Issue Date Amount Vendor Account Description 182623 9/23/2014 2,656.44 CROW RIVER SIGNS Operating Supplies Grand Total 2,656.44 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Discussion of Revisions to City Code Chapter 112 - Liquor Regulations Department: Administration LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: As a follow -up from the workshop held on September 9, 2014, please find attached a couple of draft ordinances for discussion purposes related to liquor regulations. Hutchinson City Code currently makes it unlawful for persons to consume alcoholic beverages in unsealed containers in the following locations: city parks between the hours of 10:00 p.m. and 8:00 a.m.; streets; public property; private parking lots to which the public has access or in any business not licensed to sell alcoholic beverages unless permission has been specifically granted or licensed by the Council. In addition, City Code states that licenses may only be issued for licensed premises that are in a building or structure. The direction from the Council at the workshop was that perhaps alcoholic beverages could be consumed in the areas indicated above, or in outside areas, through a process, such as through a liquor license or a franchise agreement. Therefore, the attached draft ordinances were put together for the Council's review and discussion. Formal action may be considered at a future meeting. Ordinance number 14 — 0734 is proposed to be changed to clarify how the City Council may grant permission for the consumption of alcoholic beverages in order to assist possible requests from individuals and businesses, such as Sonora's, who wish to use public property for the service of alcohol. Please keep in mind that generally any longer term use of public property will also require a franchise granted by the City Council for that use. Under our current ordinance, a liquor license can only be issued to an area that is a building or structure and this second ordinance that is proposed to be changed (14 -0735) eliminates the requirement for alcohol to be served in a building or structure and adopts the language that is contained in state law that allows licensing of a "space" that is "compact and contiguous ". Again, this would allow more flexibility for the City Council in granting permission for the service and consumption of alcohol. And, frankly, this change would reflect the reality of events that serve alcohol such as RiverSong that don't necessarily occur within a building or structure. BOARD ACTION REQUESTED: Discussion and review of revisions to City Code Chapter 112 - Liquor Regulations Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 14 -0734 AN ORDINANCE AMENDING SECTION 112.056 OF THE HUTCHINSON CITY CODE PERTAINING TO RESTRICTIONS OF OPEN CONTAINERS The City Council hereby ordains: § 112.056 OPEN CONTAINERS RESTRICTED. (A) Except when authorized through a liquor license, franchise or other permission granted by the City Council, it is unlawful for any person to consume, or possess in an unsealed container, any alcoholic beverage on or in any: (1) City park between the hours of 10:00 p.m. and 8:00 a.m.; (2) Street; (3) Public property; (4) Private parking lot to which the public has access; or (5) Any business not licensed to sell alcoholic beverages, &ieept en premises (B) Provided, that this section shall not apply to the possession of an unsealed container in a motor vehicle when the container is kept in the trunk of that vehicle if it is equipped with a trunk, or kept in some other area of the vehicle not normally occupied by the driver or passengers, if the motor vehicle is not equipped with a trunk. For the purpose of this section, a utility or glove compartment shall be deemed to be within the area occupied by the driver or passengers. ('89 Code, § 5.17) Penalty, see § 10.99 ATTEST: Steven W. Cook, Mayor Marc A. Sebora, Interim City Administrator ORDINANCE NO. 14 -073 5 AN ORDINANCE AMENDING SECTION 112.025 OF THE HUTCHINSON CITY CODE PERTAINING TO LICENSED PREMISES The City Council hereby ordains: § 112.025 PREMISES LICENSED Unless expressly stated therein, a license issued under the provisions of this chapter shall be valid only in the for a space that is compact and contiguous situated on the premises described in the license, and all transactions relating to a sale under the license must take place on the licensed premises. It is the responsibility of the license holder to advise the City Council of any substantial remodeling of the premises, including but not limited to any enlarging, alteration or extension of the premises. ('89 Code, § 5.07) (Am. Ord. 98 -217, passed 2- 10 -98) ATTEST: Steven W. Cook, Mayor Marc A. Sebora, Interim City Administrator HUTCHINSON CITY COUNCIL ci vof 0' a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14334 Authorizing Issuance of $4,120,000 G.O. Bonds 2014A Department: Finance LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut - Ehlers Reviewed by Staff F1 New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Nick Anhut, from Ehlers & Associates, will review with Council the bids received for the bond issuance related to the 2014 street and infrastructure improvements and the refunding of the 2008A GO Improvement bonds and the 2008B Storm Water Revenue bonds. The total par value of the bonds is $4,120,000 with the improvements as follows: $ 820,249 Jefferson Street Reconstruction -Phase 2 $ 340,032 Lynn Road Improvements $ 1,070,856 2014 Pavement Management Program $ 125,000 Contingency $ 2,356,137 Total 2014 Project Costs $ 1,090,000 Refunding of the 2008A GO Improvement Bonds $ 610,000 Refunding of the 2008B GO Storm Water Revenue Bonds $ 63,863 Plus: Issuance Costs $ 4,120,000 Par Value of Bonds The debt payments related to the 2014 infrastructure improvements will be made over 15 years from the debt service fund using assessments and tax levy as the funding sources. The proceeds from the 2008A and 2008B refundings will be held by the City and used to retire the old debt on February 1, 2015. The refundings take advantage of lower interest rates and we expect to save $105,000 through the term of the bonds. The new debt from the two refundings will be paid from the debt service fund and the Storm Water fund. Maturity dates on the new debt are the same as the old debt with final payments on February 1, 2023. We are waiting on the documentation which will be sent separately or handed out at the council meeting. BOARD ACTION REQUESTED: Consider and approve the issuance of $4,120,000 general obligation improvement bonds, series 2014A, by adopting resolution 14334. Fiscal Impact: Funding Source: Debt Service Fund FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CERTIFICATION OF MINUTES RELATING TO $4,120,000 GENERAL OBLIGATION BONDS, SERIES 2014A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on September 23, 2014 at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Members present: Members absent: Documents Attached: Minutes of said meeting (including): Pages 1 through 23 RESOLUTION NO. 14334 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $4,120,000 GENERAL OBLIGATION BONDS, SERIES 2014A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds 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 bonds; 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. 2014. WITNESS my hand officially as such recording officer this day of September, Marc Sebora, Interim City Administrator It was reported that (_) proposals had been received prior to 10:00 A.M., Central Time today for the purchase of the $4,120,000 General Obligation Bonds, Series 2014A of the City in accordance with the Official Statement distributed by the City to potential purchasers of the Bonds. The proposals have been read and tabulated, and the terms of each have been determined to be as follows: Bid for Interest Net Interest Name of Bidder Principal Rates Cost [See Attached] Councilmember then introduced the following resolution and moved its adoption: RESOLUTION NO. 14334 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $4,120,000 GENERAL OBLIGATION BONDS, SERIES 2014A BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City "), as follows: Section 1. Authorization and Sale. 1.01. Authorization of Bonds. This Council hereby determines that it is in the best interest of the City to issue its $4,120,000 General Obligation Bonds, Series 2014A (the "Bonds ") for the purpose of (i) financing the cost of construction of various improvement projects in the City being undertaken by the City pursuant to Minnesota Statutes, Chapter 429 (the "Improvements "); (ii) to refund in advance of maturity the 2017 through 2023 maturities, aggregating $1,065,000 in principal amount, of the outstanding General Obligation Improvement Bonds, Series 2008A, dated November 6, 2008 (the "Series 2008A Refunded Bonds ") and (iii) to refund in advance of maturity the 2017 through 2019 maturities, aggregating $595,000 in principal amount, of the outstanding General Obligation Stormwater Revenue Bonds, Series 2008B, dated November 6, 2008 (the "Series 2008B Refunded Bonds," and together with the Series 2008A Refunded Bonds, the "Refunded Bonds "). The Refunded Bonds will be redeemed on February 1, 2011 (the "Redemption Date "). This Council hereby determines to issue and sell the Bonds to defray the expense incurred and estimated to be incurred by the City in making the Improvements (the "Improvement Bonds') and refunding the Series 2008A Refunded Bonds, issued pursuant to Minnesota Statutes, Chapters 429 and 475, are secured by a pledge of special assessments imposed on benefited property and by ad valorem taxes and the portion of the Bonds allocable to the Series 2008A Refunded Bonds, an amount equal to $1,090,000 (the "Series 2008A Refunding Bonds ") shall continue to be so secured. The portion of the Bonds allocable to refunding of the Series 2008B Refunded Bonds issued pursuant to Minnesota Statutes, Section 444.075 in an amount equal to $610,000 (the "Series 2008B Refunding Bonds," and together with the Series 2008A Refunding Bonds, the "Refunding Bonds ") is secured by a pledge of net revenues from all or a portion of the City's stormwater system (the "System ") and if necessary, by ad valorem taxes to be levied on all taxable property in the City. The allocation of the Bonds for the purpose of financing the Improvements and refunding the Refunded Bonds is set forth in Section 2.01 hereof. 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, (� proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened and publicly read and considered, and the purchase price, interest rates and true interest cost under the terms of each bid have been determined. The most favorable proposal received is that of of , and associates (the "Purchaser "), to purchase the Bonds at a price of $ the Bonds to bear interest at the rates set forth in Section 2.01. 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. 1.03. Performance of Requirements. All acts, conditions and things which are 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 valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor 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 for purposes of financing. Section 2. Bond Terms, Registration, Execution and Delivery. 2.01. Maturities, Interest Rates, Denominations, Payment. The Bonds shall be designated General Obligation Bonds, Series 2014A, shall be originally dated as of November 4, 2014, shall be in the denomination of $5,000 each, or any integral multiple thereof, shall mature on February 1 in the respective years and amounts stated below, and shall bear interest, computed on the basis of a 360 -day year consisting of twelve 30 -day months, from November 4, 2014 until paid or duly called for redemption at the respective annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2016 $510,000 2024 $185,000 2017 520,000 2025 190,000 2018 520,000 2026 110,000 2019 450,000 2027 110,000 2020 285,000 2028 115,000 2021 290,000 2029 120,000 2022 295,000 2030 125,000 2023 295,000 -2- [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar for the Bonds appointed herein. The portion of the Bonds maturing in the following years and amounts constitute the Series 2008A Refunding Bonds and the Series 2008B Refunding Bonds: Series 2008A Series 2008B Year Refunding Bonds Refunding Bonds 2016 $185,000 $150,000 2017 185,000 150,000 2018 185,000 150,000 2019 105,000 160,000 2020 105,000 115,000 2021 105,000 -- 2022 110,000 -- 2023 110,000 -- The portion of the Bonds maturing in the following years and amounts constitute the Improvement Bonds: Year Amount Year Amount 2016 $175,000 2024 $185,000 2017 185,000 2025 190,000 2018 185,000 2026 110,000 2019 185,000 2027 110,000 2020 180,000 2028 115,000 2021 185,000 2029 120,000 2022 185,000 2030 125,000 2023 185,000 2.02. Interest Payment Dates. Each Bond shall be dated by the Registrar as of the date of its authentication. The interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 2015, 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. 2.03. 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) RReuister. 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 -3- 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 Bonds are 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 in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled 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 valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability 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 destroyed, stolen or lost, 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 M Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, 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 canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost 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. (i) AuthenticatingAgent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 0) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.04. 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 2014A General Obligation Bonds Bond Fund described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. 2.05. Redemption. Bonds maturing in the years 2016 through 2022 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 2023 through 2030 shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order as the City shall determine and by lot as to Bonds having the same maturity date, on February 1, 2022 and on any date thereafter (whether or not an interest payment date), at a price equal to the principal amount thereof and accrued interest 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 1 in each of the years shown below, in an amount equal to the following principal amounts: -5- Bonds Maturing on February 1, 20 Sinking Fund Aggregate Payment Date Principal Amount] Prior to the date set for redemption of any Bond prior to its stated maturity date, the City Administrator shall cause notice of the call for redemption thereof to be published as required by law and, not more than sixty (60) and not fewer than thirty (30) days prior to the designated redemption date, shall cause notice of the call to be mailed to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.03 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. The notice of redemption shall specify the redemption date, redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment, which is the principal office of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or portions thereof 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 thereof shall cease to bear interest. Bonds in a denomination larger than $5,000 may be redeemed in part in any integral multiple of $5,000. The owner of any Bond redeemed in part shall receive without charge, upon surrender of such Bond to the Registrar, one or more new Bonds of such same series in authorized denominations equal in principal amount to the unredeemed portion of the Bond so surrendered. 2.06. Execution, Authentication and Delivery. On behalf of the City by the signatures of the Mayor and the City Administrator; provided that said signatures may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of 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 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. 2.07. Form of Bonds. The Bonds shall be typed or printed in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON GENERAL OBLIGATION BOND, SERIES 2014A 1111 Interest Rate REGISTERED OWNER: PRINCIPAL AMOUNT: Maturity Date February 1, 20 CEDE & CO. Date of Original Issue November 4, 2014 CUSIP THOUSAND DOLLARS THE CITY OF HUTCHINSON, McLeod County, Minnesota (the City), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner named above, or registered assigns, the principal sum specified above on the maturity date specified above, and to pay interest thereon from the date of original issue specified above, or the most recent interest payment date to which interest has been paid or provided for, at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 2015 (each such date, an Interest Payment Date), 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 month immediately preceding the payment date, all subject to the provisions referred to herein with respect to redemption of the principal of this Bond before maturity. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such Interest Payment Date. Interest hereon shall be computed on the basis of a 360 -day year composed of twelve 30 -day months. 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. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $4,120,000, all of like date and tenor, except as to serial number, maturity date, interest rate, redemption privilege and denomination issued pursuant to a resolution adopted by the City Council on September 23, 2014 (the "Resolution "), for the purpose of financing and refinancing the cost of local improvements -7- in the City and to refinance certain improvements to the wastewater system in the City, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475 and Section 444.075. The Bonds are issuable only as fully registered bonds in denominations of $5,000 or any multiple thereof, of single maturities. The Bonds of this series are issuable only as fully registered Bonds, in denominations of $5,000 or any multiple thereof, of single maturities. Bonds of this issue maturing in 2022 and earlier years are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in 2023 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order as the City shall determine and by lot as to Bonds maturing on the same date, on February 1, 2022 and any date thereafter (whether or not an interest payment date), at a price equal to the principal amount thereof plus interest accrued to the date of redemption. [Bonds maturing in the year 20 shall be subject to mandatory redemption prior to maturity by lot pursuant to the mandatory sinking fund requirements of the Resolution on February 1 in the years and in the principal amounts set forth in the Resolution at a redemption price equal to the stated principal amount thereof to be redeemed plus interest accrued thereon to the redemption date, without premium.] 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 the 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 the 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. The Bonds have been designated by the City as "qualified tax- exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. 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 Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's 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 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 Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. 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 preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with 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 pledged to the payment of the principal of and interest on the Bonds (a) special assessments on property specially benefited by the portion of the Bonds issued to finance or refinance various improvement projects in the City and ad valorem taxes on all taxable property in 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 such portion of the Bonds as such principal and interest respectively become due, and has appropriated the same to the payment of such portion of the Bonds in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4, (b) net revenues of the stormwater system of the City on a parity with the pledge of such net revenues to the payment of other outstanding bonds of the City; and (c) if necessary for payment of the principal and interest on this Bond, additional ad valorem taxes are required 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 constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution described herein until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, 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 N Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: BOND TRUST SERVICES CORPORATION, Roseville, Minnesota, as Bond Registrar IM 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 applicable laws or regulations: TEN COM -- as tenants UTMA ................. Custodian ...................... in common (Cust) (Minor) under Uniform Transfers to Minors Act ................... TEN ENT -- as tenants (State) by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. 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: -10- PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: The 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. 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 accordance with the Securities Exchange Act of 1934, as amended. [End of Bond Form.] 2.08. Use of Securities Depository; Book -Entry Only System. The provisions of this Section shall take precedence over the provisions of Sections 2.01 through 2.07 to the extent they are inconsistent therewith. (a) The Depository Trust Company ( "DTC ") has agreed to act as securities depository for the Bonds, and to provide a Book -Entry Only System for registering the ownership interest of the financial institutions for which it holds the Bonds (the "DTC Participants "), and for distributing to such DTC Participants such amount of the principal and interest payments on the Bonds as they are entitled to receive, for redistribution to the beneficial owners of the Bonds as reflected in their records (the "Beneficial Owners "). (b) Initially, and so long as DTC or another qualified entity continues to act as securities depository, the Bonds shall be issued in typewritten form, one for each maturity in a principal amount equal to the aggregate principal amount of each maturity, shall be registered in the name of the securities depository or its nominee, shall be subject to the provisions of this Section 2.08, and no Beneficial Owner shall have the right to receive a certificate of ownership or printed Bond. While DTC is acting as the securities depository, the Bonds shall be registered in the name of the DTC's nominee, CEDE & CO; provided that upon delivery by DTC to the City and the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of CEDE & CO., the words "CEDE & CO." in this Order shall refer to such new nominee of DTC. With respect to Bonds registered in the name of a securities depository or its nominee, the City and the Registrar shall have no responsibility or obligation to any DTC Participant or -11- Beneficial Owner with respect to the following: (i) the accuracy of the records of any securities depository or its nominee with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or other person or any other person, other than DTC, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than DTC, of any amount with respect to the principal of or premium, if any, or interest on the Bonds. The Registrar shall pay all principal of and premium, if any, and interest on the Bonds only to or upon the order of DTC, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal and interest on the Bonds to the extent of the sum or sums so paid. So long as the Book -Entry Only System is in effect, no person other than DTC shall receive an authenticated Bond. (c) Upon receipt by the City and the Registrar of written notice from the securities depository to the effect that it is unable or unwilling to discharge its responsibilities under the Book -Entry Only System, the Registrar shall issue, transfer and exchange Bonds of the initial series as requested by the securities depository in appropriate amounts, and whenever the securities depository requests the City and the Registrar to do so, the City and the Registrar shall cooperate with the securities depository in taking appropriate action after reasonable notice (i) to arrange for a substitute depository willing and able, upon reasonable and customary terms, to maintain custody of the Bonds, or (ii) to make available Bonds registered in whatever name or names the Beneficial Owner registering ownership transferring or exchanging such Bonds shall designate, in accordance with clause (f) or clause (g) below, whichever is applicable. (d) In the event the City determines that it is in the best interests of the Beneficial Owner that they be able to obtain printed Bonds, the City may so notify the securities depository and the Registrar, whereupon the securities depository shall notify the Beneficial Owners of the availability through the securities depository of such printed Bonds. In such event, the City shall cause to be prepared and the Registrar shall issue, transfer and exchange the printed Bonds fully executed and authenticated, as requested by the securities depository in appropriate amounts and, whenever the securities depository requests, the City and the Registrar shall cooperate with the securities depository in taking appropriate action after reasonable notice to make available printed Bonds registered on the Bond Register in whatever name or names the Beneficial Owners entitled to receive Bonds shall designate, in accordance with clause (f) or clause (g) below, whichever is applicable. (e) Notwithstanding any other provisions of this Resolution to the contrary, so long as any Bond is registered in the name of a securities depository or its nominee, all payments of principal and interest on the Bond and all notices with respect to the Bond shall be made and given, respectively, to the securities depository. (f) In the event that the Book -Entry Only System established pursuant to this Section is discontinued, except as provided in clause (g), the Bonds shall be issued through the securities depository to the Beneficial Owners. (g) In the event of termination of the Book -Entry Only System, the City shall have the right to terminate, and shall take all steps necessary to terminate, all arrangements with the -12- securities depository described herein, and thereafter shall issue, register ownership of, transfer and exchange all Bonds as provided in Section 2.03. Upon receipt by the securities depository of notice from the City, the securities depository shall take all actions necessary to assist the City and the Registrar in terminating all arrangements for the issuance of documents evidencing ownership interests in the Bonds through the securities depository. Nothing herein shall affect the securities depository's rights under clause (e) above. Section 3. Use of Proceeds. Upon payment for the Bonds by the Purchaser, the City Administrator shall deposit proceeds of the Bonds as follows: (a) $ in the sinking fund established for the Refunded Bonds to be applied to their payment on the Redemption Date, (b) $ shall be deposited in the Construction Fund created pursuant to Section 4.10 hereof, (c) $ shall be used to pay issuance expenses of the Bonds; and (d) $ (constituting accrued interest and unused bond discount) shall be deposited in the Bond Fund created pursuant Section 4.02 hereof. Section 4. Security Provisions. 4.01. General Obligation Bonds, Series 2014A Construction Fund. There is hereby established in the official books and records of the City, a separate General Obligation Bonds, Series 2014A Construction Fund (the "Series 2014 Construction Fund "). The City hereby appropriates to the Series 2014 Construction Fund all proceeds of the Bonds received from the Purchaser allocated to the Improvement Bonds and to pay the issuance costs of the Improvement Bonds pursuant to Section 7 hereof. The Series 2014 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, due upon the Bonds prior to the completion of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Improvement Bonds. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Improvement Bonds remaining in the Series 2014 Construction Fund may be used to pay the cost, in whole or in part, of any other improvements, 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. General Obligation Bonds, Series 2014A Bond Fund. The Bonds shall be payable from a separate General Obligation Bonds, Series 2014A Bond Fund (the "Bond Fund ") which the City agrees to maintain until the Bonds have been paid in full. If the moneys in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient moneys become available in the Bond Fund. The moneys on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid: (a) the amounts specified in Section 3; (b) any unused discount received from the Purchaser upon delivery of the Bonds; (c) System revenues described in Section 4.06 allocable to the Series 2008B Refunding Bonds on and after the respective redemption date; (d) all collections of special assessments levied on property specially benefited by the improvement projects financed and refinanced by the Bonds; (e) ad valorem taxes levied and collected in accordance with the provisions of Section 4.04 hereof, and (f) any other funds appropriated by the Council for the payment of the Bonds. -13- 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. 4.03. Levy of Special Assessments. For the payment of the cost of each of the Improvements and each of the improvements refinanced by the Refunded Series 2008A Bonds the City has or will levy 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. The City hereby covenants and agrees that for payment of the cost of each of the Improvements and each of the improvements refinanced by the Refunded Series 2008A Bonds 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 and each of the improvements refinanced by the Refunded Series 2008A Bonds. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. 4.04. 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. In order to produce, together with the anticipated collections of the special assessments levied with respect to the Improvements and each of the improvements refinanced by the Refunded Series 2008A Bonds, aggregate amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: -14- Levy Years Collection Years Amount SEE ATTACHED SCHEDULE 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. 4.05. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the taxes and special assessments levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5 %) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on 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 4.04, 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. 4.06. Imposition of Charges; Additional Bonds. The City hereby covenants and agrees with the holders from time to time of the Series 2008B Refunding Bonds that so long as any of the Bonds are outstanding, the City will impose and collect reasonable charges for the service, use and availability of the System to the City and its inhabitants according to schedules calculated to produce net revenues which, will be sufficient to pay all principal and interest when due on the Series 2008B Refunding Bonds and all other obligations payable from the net revenues of the System. Net revenues of the System, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the principal of the Series 2008B Refunding Bonds and interest thereon on a parity with the existing pledge of net revenues of the System to pay outstanding obligations of the City; provided that nothing herein shall preclude the City from hereafter making further pledges and appropriations of net revenues of the System for the payment of additional obligations of the City hereafter authorized if the City Council determines before the authorization of such additional obligations that the estimated net revenues of the System will be sufficient, together with any other sources pledged to or projected to be used, for the payment of the principal of and interest on the Series 2008B Refunding Bonds and paid therefrom and such additional obligations. Such further pledges and appropriations of said net revenues may be made superior or subordinate to or on a parity with the pledge and appropriation herein made, as to the application of net revenues received from time to time. -15- 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 Registrar 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 Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. 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 authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal, interest and redemption premiums to become due thereon to maturity or said redemption date. Section 6. County Auditor Registration, Certification of Proceedings, Investment of Money, Arbitrage and Official Statement. 6.01. County Auditor Registration. The City Administrator is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor of McLeod County, together with such other information as the County Auditor shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel to the City, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the registered owners 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 payable 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 are enacted or promulgated and in effect on the date of issuance 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 includable in gross income of the recipient under the Code and the Regulations. The facilities financed and refinanced by the Bonds are public improvements available for use by members of the general public on a substantially equal basis. The City will not enter into any lease, use agreement or other contract respecting the -16- Improvements which would cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and the 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 certification in accordance with the provisions of Section 148 of the Code, and the Regulations, stating the facts, estimates and circumstances 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 the Code and Regulations. 6.05. Exemption from Rebate Requirement. For purposes of complying with the requirements of Section 148(f)(4)(D) of the Code relating to the exemption of certain small governmental units from the rebate requirements of the Code, the City represents that with respect to the portion of the Bonds issued to finance the Improvements (the "Improvement Bonds "): (i) the City is a governmental unit with general taxing powers; (ii) the Improvement Bonds are not "private activity bonds" as defined in Section 141 of the Code ( "Private Activity Bonds "); (iii) ninety -five percent of the net proceeds of the Improvement Bonds are to be used for the local governmental purposes of the City; and (iv) the aggregate face amount of all tax- exempt bonds (other than Private Activity Bonds and refunding bonds not taken into account under Section 148(f)(4)(D)(i)(IV) of the Code pursuant to Section 148(f)(4)(D)(iii) of the Code) issued by the City in 2014 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code with respect to the New Money Bonds. It is hereby determined that the Refunding Bonds qualify for the "small issuer" exemption from arbitrage rebate set forth in Section 148(f)(4)(D) of the Code, as modified by Section 148(f)(4)(D)(v) of the Code since: (i) the Series 2008A Refunded Bonds and the Series 2008B Refunded Bonds each qualified for the exception from arbitrage rebate provided by Section 148(f)(4)(D)(i) of the Code; (ii) the aggregate face amount of the bonds issued to refund the Refunded Bonds does not exceed $5,000,000; -17- (iii) the average maturity of the Bonds issued to refund the Series 2008A Refunded Bonds does not exceed the remaining weighted average maturity of the Series 2008A Refunded Bonds and the average maturity of the Bonds issued to refund the Series 2008B Refunded Bonds does not exceed the remaining weighted average maturity of the Series 2008B Refunded Bonds; and (iv) no Bond has a maturity date which is later than the date which is 30 years after the date the Refunded Bonds were issued. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code with respect to the portion of the Bonds issued to refund the Refunded Bonds. 6.06. Interest Disallowance. Each of the Refunded Bonds is a "qualified tax - exempt obligation" for purposes of Section 265(b) of the Code, the average maturity date of the portion of the Bonds issued to refund the Refunded Bonds is not later than the average maturity date of the Refunded Bonds refunded by the Bonds, the Bonds have a maturity date which is not later than the date which is 30 years after the earliest date the Refunded Bonds were issued, and the aggregate face amount of the Bonds does not exceed $10,000,000. Therefore, pursuant to Section 265(b)(3)(D)(ii), the portion of the Bonds issued to refund the Refunded Bonds to the extent it does not exceed the outstanding amount of the Refunded Bonds are deemed designated as "qualified tax - exempt obligations" for purposes of Section 265(b) of the Code relating to the disallowance of interest expense for financial. The City hereby designates the portion of the Bonds not deemed designated under Section 265(b)(3)(D)(ii) of the Code, as "qualified tax — exempt obligations" for purpose of Section 265(b) of the Code relating to the disallowance of interest expenses for financial institutions. The City represents that in calendar year 2014 it and all entities issuing obligations which are aggregated with the City under Section 265(b)(3)(E) of the Code do not reasonably expect to issue tax - exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for purposes of this representation) in an amount in excess of $10,000,000 excluding any refunding bonds treated as qualified tax - exempt obligations under Section 265(b)(3)(D)(ii) of the Code and not taken into account under Section 265(b)(3)(D)(i) of the Code. 6.06. Official Statement. The Official Statement relating to the Bonds, dated September 12, 2014, prepared and distributed on behalf of the City by Ehlers and Associates, Inc., is hereby approved. Ehlers and Associates, Inc. is hereby authorized on behalf of the City to prepare and distribute to the Purchaser a supplement to the Official Statement listing the offering price, the interest rates, other information relating to the Bonds required to be included in the Official Statement by Rule 15c2 -12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. Within seven business days from the date hereof, the City shall deliver to the Purchaser a reasonable number of copies of the Official Statement and such supplement. 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. -18- 6.07. Reimbursement. The City certifies that the proceeds of the Improvement Bonds will not be used by the City to reimburse itself for any expenditure with respect to the financed facilities which the City paid or will have paid more than 60 days prior to the issuance of the Improvement Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150 -2 of the Regulations, provided that a declaration of official intent shall not be required (i) with respect to certain de minimis expenditures, if any, with respect to the financed facilities meeting the requirements of Section 1.150- 2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the financed facilities as defined in Section 1.150- 2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Improvement Bonds. 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 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: -19- (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2014, 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; 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 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; -20- (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 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. -21- 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. (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 -22- 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. (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 7. Authorization of Pavment 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. Section 8. Redemption of Refunded Bonds. The City Administrator is hereby directed to advise Bond Trust Services Corporation, Roseville, Minnesota, as paying agent for the Refunded Bonds, to call such bonds for redemption and prepayment on the Redemption Date, and to give thirty days mailed Notice of Redemption, all in accordance with the provisions of the resolutions authorizing the issuance of such bonds. -23- Attest: City Administrator -24- Mayor The motion for the adoption of the foregoing resolution was duly seconded by Councilmember voted in favor thereof: and the following voted against the same: and upon vote being taken thereon, the following whereupon said resolution was declared duly passed and adopted. -25- COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on September 23, 2014, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $4,120,000 General Obligation Bonds, Series 2014A, dated as of November 4, 2014. I further certify that said Bonds have 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 , 2014. County Auditor (SEAL) doSTANDARD & POOR'S RATINGS SERVICES McGRAW HILL FINANC1AL RatingsDirect a Summary: Hutchinson, Minnesota; General Obligation; Non - School State Programs Primary Credit Analyst: Carol A Hendrickson, Chicago (1) 312 - 233 -7062; carol. hendrickson @standardandpoors.com Secondary Contact: Anna Uboytseva, Chicago (1) 312 - 233 -7067; anna .uboytseva @standardandpoors.com Table Of Contents ...... ----.... -----... ...... ........ ........._......-- .......... -- ...... ....... Rationale Outlook Related Criteria And Research 0W vW.STANlC9ARDAWX200 RS. Ce0PA1[AI AT7 P3G8DIRECT SEPTEMBER 18, 2019 1 1360012 1300238792 Summary: Hutchinson, Minnesota; General obligation; Non - School State Programs Credit Profile US$4.12 mil GO buds ser 2014A dtd 11/04/2014 due 02/01/2030 Long Term Rating AA- /Stable New Hutchinson GO Long Term Rating AA- /Stable Affirmed Hutchinson GO Non -Sch 5t Prog Long Term Rating 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 2014A general obligation (GO) refunding bonds. At the same time, we affirmed our'AA -' long -term rating and underlying rating (SPUR) on the city's previously rated GO bonds. The outlook on all the ratings is stable. The 'AA -' long -term rating and SPUR reflect our view of the city's: • Very strong budgetary flexibility, with Fiscal 2013 available general fund reserves at 24.8% of adjusted expenditures; • Very strong liquidity providing very strong cash levels to cover both debt service and expenditures; • Strong budgetary performance with projected balanced across the general fund and total governmental funds; • Strong management with good financial practices; • Weak economy, with per capita market value of $59,831. and • Weak debt and contingent liabilities position, with net direct debt at 204A% of revenues but rapid amortization. The city's unlimited -tax GO pledge secures the bonds, and it anticipates that special assessments will help support debt service. It intends to use bond proceeds to finance various capital projects under its 2014 capital improvement plan. Very strong budgetary flexibility In our opinion, Hutchinson's budgetary flexibility is very strong, with general fund reserves above 15% the past three years and expected to remain so. Fiscal 2013 available general fund reserves totaled $2.58 million, or 24.8% of expenditures plus routine transfers. The city's fiscal 2014 budget is balanced with no use of reserves, and management expects to add to fund balance over the course of the year. It has no plans to draw down reserves in fiscal 2015. Very strong liquidity Supporting the city's financials is liquidity we consider very strong, with total governmental available cash and short -term investments at 2x total governmental fund expenditures and 10x debt service. We believe Hutchinson has W NI W . STAHDARDANDP OORS.COM/ RATINGSDYRECT SEPTEMBER 18, 2014 2 1360012 1300238792 Summary: Hutchinson, Minnesota; General Obligation; Non- Sebool State Programs strong access to external liquidity, demonstrated by frequent GO bond issuances. In our view, its current debt structures do not present liquidity risk. Strong budgetary performance The city's budgetary performance has been strong overall, in our view. On an audited basis, the general fund had a 4% surplus while total governmental funds had a 7.4 1/6 surplus. Our performance analysis includes adjustments for one -time retirement incentive expenses and write -down of interest earning losses. For fiscal 2014 and 2015, management expects to perform balanced or better. The city relies on property tax revenues (about 52% of general fund revenues), which have been a stable revenue stream. Strong management We view the city's management conditions as strong, with good financial policies and practices. Highlights of these policies include management's monthly reports to the city council on budgeted figures compared with actual performance, a capital plan that includes estimated project costs and is updated annually, and a five -year financial forecast. The financial forecast uses historical trend analyses to project revenues and expenditures. In addition, the city maintains a board - adopted fund balance policy that requires a minimum unrestricted general fund balance equal to 40% of the next year's operating budget, a target it is currently exceeding. Weak economy Hutchinson (with an estimated population of 13,871) is in McLeod County, approximately 55 miles west of Minneapolis and 52 miles south of St. Cloud. Projected per capita effective buying income is 104% of the U.S. average, while per capita market value is $59,831. Management expects that market value will be stable to contributing modest growth over the next year. Leading employers include 3M Co. (1,700 employees), Hutchinson Technology Inc. (800), and Hutchinson Area Health Care (780). County unemployment averaged 5.7% in 2013. We do not consider it to be tied in to an metropolitan statistical area. Weak debt and contingent liability profile We consider the city's debt and contingent liabilities profile weak. Total governmental fund debt service was 19.4% of total governmental fund expenditures in fiscal 2013, and direct debt, net of enterprise supported debt, is 205% of 2013 total governmental fund revenues. Amortization is rapid, with 84% of direct debt to mature within 10 years. Management expects to issue additional debt annually as part of its capital improvement plan but does not expect its debt burden, after accounting for amortizing debt, to significantly increase. Overall net debt, including overlapping debt, is 5.3% of market value. Employees are covered by defined - benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). The city has historically contributed 100% of required contributions to PERA. Hutchinson does not pay for any portion of retiree health care premiums, but allows employees to stay in its health insurance plan on retirement and continue to pay active premium rates. As such, a portion of the city's contributions to the health care plan for active employees constitutes an implicit subsidy contribution on behalf of its retirees. Together, the city's other postemployment benefit and pension contributions equaled 3.3% of total 2013 governmental funds expenditures. WW[W.STAINDARDANDPQORS .CONY /RATINGSDI CT SEP°d`Pc 1MBFR A8, ?014 3 Summary: Hutchinson, Minnesota; General Obligation; Nora - School State Programs Strong institutional framework We consider the Institutional Framework score for Minnesota cities with populations greater than 2,500 strong. Outlook The stable outlook reflects our expectation that Hutchinson will continue to exhibit strong financial performance, supporting very strong budgetary flexibility and liquidity. While unlikely, deterioration in financial performance could pressure the rating. We do not view the city's debt and economic profile as likely to significantly change over the two -year outlook horizon, limiting upward rating potential, in our view. Related Criteria And Research Related Criteria • USPF Criteria: Local Government G❑ Ratings Methodology And Assumptions, Sept. 12, 2013 Related Research • S &P Public Finance Local GO Criteria: Now We Adjust Data For Analytic Consistency, Sept. 12, 2013 • Institutional Framework Overview: Minnesota Local Governments Complete ratings information is available to subscribers of RatingsDirect at www.globalereditportal.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, WWW. 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WWW- STANDARDANDPOORS .COM /RATIMOSDIRECT SEPTEMBER E0, 2014 5 HUTCHINSON CITY COUNCIL ci vof 0, a_ � Request for Board Action 79 M-W Agenda Item: Easement Rights Acquisition at Island View Heights Townhome Association Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff F1 New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: As determined during the final design of the South Grade Road Trail Extension project, the acquisition of public easement rights are necessary to fully accommodate the trail and associated pedestrian curb ramp adjacent to private property (Island View Heights Townhome Association). Thus, City staff seeks the City Council's approval of compensating the impacted property owner in the amount of $1080.00 (300 SF @ $3.60 /SF) for conveyance of the identified rights. City staff will provide an overview of this situation and be available for any questions or comments. BOARD ACTION REQUESTED: Approval of Easement Compensation Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 1,080.00 Total City Cost: $ 1,080.00 Funding Source: Project Construction Fund Remaining Cost: $ 0.00 Funding Source: PERMANENT EASEMENT This indenture made and entered into this day of , 2014, by and between Island View Heights Townhome Association, 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 sidewalk/trail purposes over, under and across that part of Lot 35, Block 4, ISLAND VIEW HEIGHTS SECOND ADDITION, Northwest Quarter of the Northeast Quarter of Section 10, Township 116 North, Range 30 West, McLeod County, Minnesota, as described as follows: Across the northerly 10.00 feet of the easterly 30.00 feet of Lot 35, Block 4, Island View Heights Second Addition (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 upon the easement to construct, operate and maintain all sidewalk and trail infrastructure upon said permanent easement. The granting of this easement shall include the right to install, operate and maintain sidewalk and trail improvements deemed to be necessary by the Grantee. The Grantee shall only be responsible for the construction and maintenance directly related to City infrastructure and not responsible for adjacent turf or landscaping maintenance. The Grantors shall have the right to utilize the easement area in a manner that does not adversely impact the functioning of, capacity of or access to any City infrastructure. In witness whereof, said Grantors here unto have set their hands to this instrument on the day and year first above written. GRANTORS: ISLAND VIEW HEIGHTS TOWNHOME ASSOCIATION By: Jerry M. Busse, President STATE OF MINNESOTA } )SS COUNTY OF McLEOD } By: Jared J. Matheny, Vice President The foregoing instrument was acknowledged before me this day of , 2014, by Jerry M. Busse, President and Jared J. Matheny, Vice President of Island View Heights Townhome Association, Grantors. Notary Public This document was drafted by: Kent Exner Hutchinson City Engineer 111 Hassan St SE Hutchinson MN 55350 (320) 234 -4212 x Rorie INe of the rE I,3 0, mow J0, T. L F6 e.. Rao W. R SOUTH GRADE ROAD SW Nxrlwly 1" oil La+ 31 Block 4 ISLAND ,rtw Wpwas IIECONO +nomm � TRAIL RA WENT \Ng0*CO3o0•w 3aOd - -•- — — — - ----------- -- ---- — - -- —- - on.1N,,. a Wnun .aamenr -- - - -- W " BLOCK 4 I IO{ , I SO a 1 I Z OI 4 BLOCK 3 GJ O O C� EASEMENT EXHIBIT FOR THE CITY OF HUTCHINSON DESCRIPTION An easement for trail purposes over and across the Northerly 10.00 feet of the Easterly 30.00 feet of Lot 35. Black 4, ISLAND VIEW HEIGHTS SECOND ADDITION. according to the recorded plot Thereof, McLeod County, Minnesota. EASEMENT AREA • 300 Squore Feet O 15 30 ed sale In i.et Tn. orl.ntetlen of me bearing. h.— en .m..xh16I1 ere Cott on Nnih.riy line o1 Lot 35, BI..k 4, ISLAND VIEW IIEIGKTS IECONe ADDITION. Will b assumed to now a b.-mg .f Nglrwww. I nv.pY e.t illy he' '" S.""' "on a 1llaarf e. en pond ay en, ar until, m7 al Fee, p•rrblan a that I om a eol7 11c, . n..e Lend sorwy.r under fh. Tow. o. 1h. stole of Rl nn.e vra. JWTIJAWR bone., aet.: 2VA2 r 7a/b/ L I, Na.,2VA-21 PEFSMN LIM SURM -ING, INC P 0 Box 35 Hutchinson, Minnesota 55350 Pnoe. ($30) 5OT -4769 Fax (wo)'567 -3732 JOB 413 14078 BR HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Items for WWTF Solar PV Installation Project Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner, John Paulson Agenda Item Type: Presenter: Kent Exner, John Paulson Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: City staff has been working with AMERESCO to develop a Term Sheet that establishes a variety of project variables that will be included in the development of a Contract Agreement with AMERESCO. The attached drafts of the Term Sheet and pro forma have been included for your information and discussion purposes only. Additional design work of the solar photovoltaic system was recently done by AMERESCO to obtain more accurate system cost estimates to be included in the draft Term Sheet. The Term Sheet includes some variables that may change as additional due diligence is conducted. Items such as insurance and operation & maintenance costs are based on estimates that have been obtained. Staff is continuing to research these variables to further refine the accuracy of the estimates. City staff welcomes your comments and will assist the City Council in any way we can. We recommend setting a Public Hearing for October 14, 2014 and approving the associated Resolutions and Publication. BOARD ACTION REQUESTED: Approval of Resolutions and Publication Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14331 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 3 /PROJECT NO. 15 -04 WHEREAS, it is proposed to improve: Wastewater Treatment Facility Solar PV Installation by design, installation, implementation and appurtenances for 400KW Solar PV System at the WWTF; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 4 /Project No. 15 -04, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost - effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 23rd day of September 2014. Mayor: Steven W. Cook City Administrator: Marc A. Sebora HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center /111 Hassan St SE /Hutchinson MN 55350 - 2522/320 - 234 - 4209 /FAX 320 - 234 -4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW /City Engineer DATE: September 23, 2014 SUBJECT: Letting No. 4 /Project No. 15 -04 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L4/P15 -04 Wastewater Treatment Facility Solar PV Installation by design, installation, implementation and appurtenances for 40OKW Solar PV System at the WWTF. ESTIMATED COST TOTAL Project Performance Contract Amount $1,469,000 ESTIMATED TOTAL $1,469,000 ESTIMATED FUNDING TOTAL Xcel RDF Grant $958,369 City Funding $510,631 ESTIMATED TOTAL $1,469,000 RESOLUTION NO. 14332 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 4 /PROJECT NO. 15 -04 WHEREAS, pursuantto a resolution ofthe Council adopted September23rd, 2014, a report has been prepared by Kent Exner, Public Works Director /City Engineer with reference to the following proposed improvements: Wastewater Treatment Facility Solar PV Installation by design, installation, implementation and appurtenances for 400KW Solar PV System at the WWTF; and said report was received by the Council on September 23rd, 2014. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement in accordance with the report at an estimated total cost of the improvement of $1,469,000.00. 2. A public hearing shall be held on such proposed improvements on the 14th day of October, 2014, in the Council Chambers of the Hutchinson City Center at 6:00 P.M., and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 23rd day of September 2014. Mayor: Steven W. Cook City Administrator: Marc A. Sebora PUBLICATION NO. 8082 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 4 PROJECT NO. 15 -04 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 pm on the 14th day of October, 2014, to consider the making of an improvement of Letting No. 4 /Project No. 15 -04, an improvement of: Wastewater Treatment Facility Solar PV Installation by design, installation, implementation and appurtenances for 400KW Solar PV System at the WWTF; and pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $510,631.00, and an estimate Xcel RDF Grant of $958,369.00, for the total estimated cost of $1,469,000.00. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: 09/23/2014 Marc A. Sebora, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON SUNDAY, SEPTEMBER 28TH, 2014 AND ON SUNDAY, OCTOBER 5TH, 2014. Solar Project - Sewer Fund (1,469,000) 581,938 579,028 576,133 Solar Output Size: 401.8 Annual Inflation Rate - Utilities 1.50% per year Annual Degradation 0.50% per year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Expected KWH production (1,469,000) 581,938 579,028 576,133 573,253 570,386 567,534 564,697 561,873 559,064 556,268 553,487 550,720 Electric rate per KWH $ 0.0737 $ 0.0737 $ 0.0748 $ 0.0759 $ 0.0770 $ 0.0782 $ 0.0794 $ 0.0806 $ 0.0818 $ 0.0830 $ 0.0842 $ 0.0855 $ 0.0868 Avoided Electricity Cost $ 42,889 $ 43,311 $ 43,729 $ 44,140 $ 44,604 $ 45,062 $ 45,515 $ 45,961 $ 46,402 $ 46,838 $ 47,323 $ 47,802 KWH rate % increase 45,961 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Cash Outlay - Sewer fund balance (17,485) (17,835) (18,192) (18,556) (18,927) (19,306) (19,692) Net Cash Flow WE 27,053 27,158 27,253 27,334 27,462 Total Costs $ 1,469,000 27,769 Annual Maintenancelins. Costs 27,911 28,017 28,110 Cumulative Cash Flow (510,631) (483,578) (456,420) Xcel Grant (958,369) (374,371) Annual Inflation Rate -R &M 2.00% (291,345) (263,499) (235,588) (207,571) (179,461) Net Costs $ 510,631 Life of System 25 yrs Annual Discount Rate: (expected annual investment earnings) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year l l Year 12 Capital Costs (1,469,000) Xcel Grant 958,369 Avoided Electricity Cost 42,889 43,311 43,729 44,140 44,604 45,062 45,515 45,961 46,402 46,838 47,323 47,802 Annual Maintenance Costs (15,836) (16,153) (16,476) (16,806) (17,142) (17,485) (17,835) (18,192) (18,556) (18,927) (19,306) (19,692) Net Cash Flow (510,631) 27,053 27,158 27,253 27,334 27,462 27,577 27,680 27,769 27,846 27,911 28,017 28,110 Cumulative Cash Flow (510,631) (483,578) (456,420) (429,167) (401,833) (374,371) (346,794) (319,114) (291,345) (263,499) (235,588) (207,571) (179,461) Payback 18.3 years NPV at 2.50% 70,286 IRR 2.6% Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 547,966 545,226 542,500 539,788 537,089 534,403 531,731 529,073 526,427 523,795 521,176 518,570 515,977 $ 0.0881 $ 0.0894 $ 0.0907 $ 0.0921 $ 0.0935 $ 0.0949 $ 0.0963 $ 0.0977 $ 0.0992 $ 0.1007 $ 0.1022 $ 0.1037 $ 0.1053 Total 13,708,103 $ 48,276 $ 48,743 $ 49,205 $ 49,714 $ 50,218 $ 50,715 $ 51,206 $ 51,690 $ 52,222 $ 52,746 $ 53,264 $ 53,776 $ 54,332 $ 1,209,683 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Total (1,469,000) 958,369 48,276 48,743 49,205 49,714 50,218 50,715 51,206 51,690 52,222 52,746 53,264 53,776 54,332 1,209,683 (20,086) (20,488) (20,898) (21,316) (21,742) (22,177) (22,621) (23,073) (23,534) (24,005) (24,485) (24,975) (25,475) (507,281) 28,190 28,255 28,307 28,398 28,476 28,538 28,585 28,617 28,688 28,741 28,779 28,801 28,857 191,771 (151,271) (123,016) (94,709) (66,311) (37,835) (9,297) 19,288 47,905 76,593 105,334 134,113 162,914 191,771 TERM SHEET Ameresco, Inc. - City of Hutchinson, MN Solar Energy Facility This non - binding term sheet (this "Term Sheet ") is entered into effective , 2014 by and between Ameresco, Inc. ( "Ameresco ") and the City of Hutchinson, Minnesota ( "City "). I. BACKGROUND AND GENERAL STATEMENT OF INTENT On October 23, 2012, the City and Ameresco entered into a letter agreement titled "Development of a Solar Photovoltaic System Project" (the "Letter of Intent "). The Letter of Intent authorized Ameresco to submit a Grant Application to Xcel Energy for partial funding dollars for a 40OKW solar PV project (the "Project ") to be designed, installed and implemented by Ameresco at the City's Waste Water Treatment Plant/Municipal landfill site located at 1300 Adams Street SE, Hutchinson, Minnesota (the "Site "). On March 29, 2013, Ameresco formally submitted the Xcel Energy Grant Application on behalf of the City. On March 11, 2014, the City was notified by Xcel Energy that the City's Solar PV project proposal was being awarded an RDF grant from the Xcel Energy Renewable Development Fund (the "RDF Award ") in the amount of $958,360.00 (the "RDF Grant "). The terms of the RDF Award require that the City and Ameresco work jointly together to finalize all aspects of the Project and to submit to Xcel the required additional information to receive the RDF Grant. Since receipt of the RDF Award, the parties have worked and continue to work in good faith to refine the scope of services, identify a pricing structure and define the valuation methodology. Provided the terms and conditions set forth in this Term Sheet are satisfied as provided herein, the City will contract with Ameresco as general contractor to develop, engineer, procure, construct, and implement the Project as further defined in this Term Sheet. This Term Sheet is intended to more precisely define the nature and scope of the relationship, reaffirm the intentions of both parties to enter into a binding contract, subject to certain remaining due diligence requirements, establish a closing schedule, present general pricing provisions and identify the specific investment criteria and financial assumptions that will be used by the City to make its investment decisions. The project design is preliminary and requires further engineering due diligence, financial modeling and legal structuring to produce an executable contract. Ameresco has incurred, and continues to incur, substantial expense in the development of the Project. By executing this Term Sheet both parties are demonstrating their intent to enter into the next phase of due diligence with the objective of executing all definitive Project contracts by September 31, 2014. II. SOLAR SCOPE OF SERVICES A. Background: The Ameresco /City design teams have met a number of times since notification of the receipt of the RDF Award on March 11, 2014 to refine the specifications and scope of services for the Solar Photovoltaic (PV) installation. The design of the system is preliminary and subject to further changes as a result of continued due diligence including, but not limited to: continuing design, site location studies, environmental permitting requirements, technology review, interconnect studies, local utility requirements, compliance with all authorities having jurisdiction, City Construction Standards, relevant codes, etc. See scope of work attached hereto as Attachment A, setting forth the action items required to refine and finalize the Project to permit final submission to Xcel for the RDF Grant and development of the Project. The system as it is currently contemplated includes approximately 400 KW DC of solar PV panel installations to be located at the Site. Ameresco will continue to design the system to optimize financial return. B. Design (Preliminary): The current system design contemplates a ballasted structure ground- mounted support structure for the solar panels that will not penetrate the landfill cap. C. Facility Development: Ameresco will design, engineer, procure, construct and deliver to the City a solar PV facility, including support structures and meters, in accordance with a mutually agreeable engineering, procurement and construction contract, pursuant to which the City will purchase the PV system at a value established by the parties using the RDF grant proceeds, and related documents based upon this Term Sheet (the "Construction Contract "). All designs, builders, and suppliers are subject to the City's approval. Such approval shall not be unreasonably withheld, conditioned or delayed, after taking into consideration such primary business objectives as cost effectiveness, creditworthiness, production output, etc. The City shall have the right to descope certain site preparation work from the Construction Contract, provided that such site preparation work shall be subject to Ameresco's engineering and site design approval prior to execution of the Construction Contract. Ameresco reserves the right to rescope the cost of site preparation work and adjust the construction budget as necessary if such site preparation work performed by the City is not acceptable from an engineering and site design standpoint. D. Operations and Maintenance: Ameresco will provide operation and maintenance ( "O &M ") support pursuant to a separate operation and maintenance contract for the system for a period to be agreed in the O &M agreement between the parties. Performance of operation and maintenance support may be assigned to a third party by Ameresco with the City's prior consent, not to be unreasonably withheld, conditioned or delayed, provided that the City shall not withhold its consent to any third party with respect to which Ameresco demonstrates, to the reasonable satisfaction of the City, that such third party has sufficient professional experience and operational capabilities to perform the O &M services. The O &M agreement will include provisions for measurement and verification of kilowatt hours generated based on industry standards for the equipment being installed. Any guarantee of the performance of the Project following completion shall be reflective of the final O &M scope as negotiated by the parties following the execution of this Term Sheet, as set forth in the final O &M agreement. E. Warranties: Ameresco shall provide or procure warranties for the following components for the specified scope and duration (manufacturer's warranties may satisfy this condition). All agreements between Ameresco and any supplier or subcontractor shall provide that the warranties set forth in such agreement shall be fully assignable to the City: Equipment Warranty Periods: Vendor Equipment Supplied Warranty PV Module 25 years Inverters 20 years F. Assumptions: The assumptions for the current design and pricing include the following: 1. Preliminary engineering and design complete 2. No environmental or utility upgrades required to land fill structures or the facilities at the Waste Water Treatment Plant and no landfill site upgrades 2 3. The City will allow Ameresco full access to the Site and the Waste Water Treatment Plant at mutually agreeable locations, subject to any restrictions imposed by state or federal Homeland Security agencies. 4. The City and the Hutchinson Utilities Commission will have entered into a mutually agreeable interconnection agreement permitting the interconnection of the PV system to the Waste Water Treatment Plant 5. The City will provide a release, reasonably acceptable to Ameresco, from the covenants restricting use of the Site to police and fire department training purposes 6. The City will provide evidence, reasonably acceptable to Ameresco, that any restrictions which prohibit or impede the use of the Site for the installation and operation of the Project have been waived or released by the holder of such rights 7. Ameresco will have conducted site visits and evaluations to determine the environmental, engineering, permitting, geo- technical and structural condition of the Site and the Waste Water Treatment Plant and their suitability for the Project 8. The site work to be performed by the City shall be satisfactory as provided above 9. Ameresco will have solicited and obtained satisfactory quotes from local contractors and professional services firms to permit Ameresco to refine the Project design and budget 10. Construction will begin by Spring 2015 11. Construction will be completed no later than Fall 2015 12. A standard interconnection study is included, but non - standard fees will be the City's responsibility G. Contract Documents: The City and Ameresco contemplate that the conceptual agreement described in this Term Sheet will be embodied in two separate contracts (collectively, the "Project Documents "), as follows: 1. The Construction Contract. 2. A mutually agreeable operations and maintenance agreement for O &M services. III. FINANCING STATEMENT OF INTENT A. Valuation Methodology: The City will employ cash flow valuation methodologies for the purposes of making its final decision whether to proceed with the Project. Following performance of the due diligence outlined in Attachment A hereto, Ameresco shall deliver the Development Report (as defined in Attachment A hereto) to the City. The City agrees that if the Development Report demonstrates that Ameresco will be able to develop a Project with a projected payback less than or equal to 20 years, based on information substantially similar to that set forth in Attachment B to this Term Sheet (the "Cash Flow Analysis "), the City will be committed to proceed with the Project or be subject to the Breakage Fee as described in Section IV hereof. Based on the financial assumptions listed in Section IILB, Ameresco shall engineer, procure, construct and maintain or cause to be maintained a solar PV system as specified in section II. B. Financial Assumptions: 1. The current estimate of the total Project cost to be paid by the City to Ameresco is $1,469,000.00. The final and actual amount of the Project costs is to be determined during the course of Ameresco's due diligence under this Term Sheet. The Construction Contract to be entered into by the parties shall reflect such final and actual amount of Project costs to be paid by the City to Ameresco. 2. For clarity, the City shall retain all responsibility for site preparation costs, subject to the terms in section ILC. above. 3. Twenty (20) year cash flow analysis, assuming the City will purchase 100% of the system upfront (in year zero of the cash flow). 4. If requested by the City, Ameresco will assist the City in arranging Comprehensive Tax Exempt Municipal Lease Financing or equivalent for the Project. The City is ultimately responsible for approving and executing any financing documents. 5. Annual utility rate savings /cost avoidance set at $0.0737/kWh with 1.5% annual utility inflation rate. 6. O &M cost of $8,036.00 owed to Ameresco in Year 1 of operation. O &M costs will escalate two percent (2 %) annually for years 2 -20. Actual O &M contract values will be determined during the course of Ameresco's due diligence under this Term Sheet and subject to the terms in section ILD. above. 7. Costs for insurance, site preparation, any additional project development costs incurred by the City other than the Project costs to be paid to Ameresco under the Construction Contract, and additional O &M expenses are excluded from this analysis. 8. The solar PV system is expected to generate 5 81,93 8 kilowatt hours in Year 1 of operation, with an annual solar PV degradation of 0.50 %. The final estimate of kilowatt hours per year production will be determined during the course of Ameresco's due diligence under this Term Sheet and will be reflected in the O &M agreement to be entered into between the parties. Ameresco's performance guarantee, to be set forth in the O &M agreement, will be a guarantee of production of a number of kilowatt hours per year which is equal to up to 80% of the final estimate of kilowatt hours per year determined during Ameresco's due diligence, subject to Ameresco's right to adjust the performance guarantee as necessary depending on the final O &M scope, as provided in Section ILD of this Term Sheet, and on other factors as more specifically agreed in the O &M agreement. 9. Comprehensive savings, credits, offsets, rebates, grants and costs for the Project as provided in this Term Sheet. i. Xcel RDF Grant: $958,369.00 ii. Any other rebates: TBD 10. Construction payments shall be made by the City to Ameresco in accordance with the terms and conditions of the Construction Contract. 11. Ameresco will comply with the City's insurance and payment and performance bond requirements. Ameresco's bonds shall not cover any energy savings shortfalls, if any. 12. For greater clarity, no security deposit or annual lease payments by Ameresco are included within the financial assumptions. IV. SCHEDULE A. It is understood that market variables (i.e. interest rates and commodity prices) change with time and there is mutual benefit to following the closing, development and construction schedule as indicated below: City Council Meeting approval of Term Sheet, authorizing the 10/14/14 appropriate official of the City to negotiate and execute the Term Sheet and Project Documents and proceed with the Project without further City Council approval as long as the Development Report satisfies the requirements set forth in Section IILA above Public Hearing on the Term Sheet 10/14/14 Fully Executed Term Sheet 10/14/14 Development Report 11/26/14 City Council approval of Project Documents and Financial 12/14/14 Documents Fully Executed Project Documents 12/30/14 Fully Executed Financial Documents and Financial Close 12/30/14 100% Design 5/30/15 Construction Commencement 6/15/15 Substantial Completion 10/30/15 Final Completion (Programming & Punch List) 11/15/15 Training 11/30/15 V. CONFIDENTIALITY A. Confidentiality. The confidentiality terms of this Section V.A are binding on the parties hereto as provided herein. "Confidential Information" includes any and all information related to the Project and disclosed to the other party and identified as confidential in a manner appropriate to, and to the extent the form of the information qualifies as not public information under, the Minnesota Government Data Practices Act (Minnesota Statutes, Chapter 13) ( "MGDPA "). Ameresco acknowledges and agrees that any information submitted by Ameresco to the City which Ameresco wishes to be considered Confidential Information must be physically segregated from any non - confidential information in a sealed envelope clearly marked "confidential and proprietary, not to be released to the public ". Each party receiving Confidential Information (the "Receiving Party ") of the other parry (the "Disclosing Party ") agrees only to disclose the Confidential Information received to Receiving Party's employees and agents whose duties justify their need to know such Confidential Information and who agree or have agreed to abide by the restrictions on the use of such Confidential Information. 3. Confidential Information is not information which: a. now is or becomes generally known to the public through no act or omission of Receiving Party; or b. Receiving Party can demonstrate was in Receiving Party's possession prior to its receipt from Disclosing Party; or c. is received from an independent third party who is not under an obligation of confidentiality; or d. is independently developed by Receiving Party as demonstrated by competent documentary evidence. 4. In the event that Receiving Parry is required to disclose Confidential Information pursuant to a court order or other legal requirement, Receiving Parry will inform Disclosing Party within five (5) days following the date on which Receiving Party receives written notice of such court order or other legal requirement, so that Disclosing Party may seek an appropriate protective order regarding the Confidential Information. The parties understand that the City is subject to the MGDPA. Notwithstanding anything to the contrary, no clause in this Term Sheet shall be construed or given effect so as to violate the MGDPA. The terms of this Section V (Confidentiality) shall be binding on the parties and shall survive execution and termination of this Term Sheet for a period of five (5) years following the later of the termination of this Term Sheet or the termination of the Project Documents, if executed. VL BREAKAGE FEE A. Ameresco and the City will work together to complete all diligence, negotiations and definitive documents, as set forth herein, to permit Ameresco to deliver the Development Report in a timely manner as specified in the Schedule set forth in Section IV. If the Development Report demonstrates that Ameresco will be able to deliver a Project that meets or exceeds the financial criteria outlined in the Cash Flow Analysis (subject to Ameresco's right to rescope the site preparation work and to adjust the performance guarantee depending on the final O &M scope, as necessary, as provided in Sections ILC and ILD, respectively, of this Term Sheet), and either (I) the City decides not to move forward for any reason, including compliance with state or local procurement codes, with the scope of the proposed Project substantially as it is described in the Development Report or (ii) the City makes such decision prior to Ameresco providing the Development Report, then the City agrees to pay Ameresco the amount of seventy -five thousand dollars ($75,000.00) to compensate Ameresco for Ameresco's costs incurred between execution of this Term Sheet and the date of the City's decision not to proceed (the "Breakage Fee "). The Breakage Fee shall be due 30 days after the date the City makes the decision not to proceed, upon the City's receipt of an invoice from Ameresco for such amount. The foregoing obligation of the City to pay the Breakage Fee in certain circumstances shall be deemed to supersede the obligation of the City, set forth in the Letter of Intent, to pay both the Development Fee (as defined in the Letter of Intent) and the $1,250.00 owed to Ameresco for Ameresco's preparation of the Grant Application. Notwithstanding the foregoing, if the City is unable to obtain a waiver of the terms of the existing emergency operations grant from the Minnesota Office of Management and Budget permitting the use of the Site for the Project and the parties elect not to proceed with the Project as a result thereof, no Breakage Fee shall be due to Ameresco, but the City will pay Ameresco the amount of $1,250.00 owed to Ameresco for Ameresco's preparation of the Grant Application. The terms of this Section VI (Breakage Fee) shall be binding on the parties and shall survive execution and termination of this Term Sheet. VII. MISCELLANEOUS 1. The foregoing accurately reflects the parties' preliminary understanding of the basic terms and conditions upon which the parties are willing to proceed. While this Term Sheet represents each party's good faith intention to proceed with the Project described in this Term Sheet, it does not constitute a legally binding or enforceable agreement, except for Sections V (Confidentiality) and VII (Breakage Fee). Consequently, the parties' preliminary understandings and commitments hereunder are subject to the negotiation and execution of mutually acceptable Project Documents setting forth the rights and obligations of the parties. Upon execution of this Term Sheet, the parties shall begin the negotiation and preparation of such Project Documents. This Term Sheet may be terminated immediately upon delivery of a written notice of termination by one party to the other party, subject to the payment of the fee described in Section VII above (Breakage Fee). Unless extended by mutual agreement of the parties hereto, this Term Sheet shall automatically terminate one (1) year from the date hereof. Neither Party is liable for indirect, incidental, consequential, or punitive damages of any nature or kind resulting from or arising in any manner whatsoever in connection with this Term Sheet. [End of Term Sheet. Signature Page Follows.] rel The parties hereto are signing this Term Sheet effective as of the date first set forth above. Ameresco, Inc. By: Name: Title: The City of Hutchinson M. a Name: Title: Attachment A 1. As soon as possible after executing this Term Sheet, the City shall provide Ameresco with the following information, as available: a. Twelve months of electric utility bills for the Water Treatment Plant from the City's supplier and distribution companies; b. Copies of any topographical plans or environmental reports for the Site; and c. Such other information as may be reasonably requested by Ameresco. 2. Within sixty (60) calendar days after Ameresco receives all information requested, or as reasonably extended through mutual agreement by the City and Ameresco, Ameresco shall complete the following work under this Term Sheet ( "Ameresco's Development Work ") for the Project: a. Conduct a site audit to obtain site measurements (shading, topography, available space, site conditions) and electrical interconnection locations; b. Conduct preliminary technical evaluations of zoning and other land use and environmental permit requirements, and utility interconnection complexity and cost, as applicable; c. Conduct a glare study if required by the airport authority; d. Complete the 30% design drawings and calculations including solar PV layouts, electrical one -line diagrams, and a calculation of expected solar PV power generation; and e. Prepare and deliver to the City a report (the "Development Report"), which shall include: i. the proposed scope of work (the "Scope of Work "), which shall include at least the proposed size and placement at the Site of the Proj ect; ii. a preliminary project schedule for the completion of the Scope of Work; and iii. estimated cost savings for the Scope of Work of similar type and in similar form to the Cash Flow Analysis to permit the City to compare such estimated cost savings to the Cash Flow Analysis. 3. Within sixty (60) calendar days following the execution of this Term Sheet, or as reasonably extended through mutual agreement by the City and Ameresco, the City shall complete the following work under this Term Sheet (the "City's Development Work ") for the Proj ect: a. Evaluate financing options presented by Ameresco and /or developed internally and notify Ameresco of their preferred financing approach; b. Secure all necessary internal approvals for installation of the solar PV array in the location specified in the RDF grant application or new location as is mutually agreed to by Ameresco and the City; and c. Confirm with the Hutchinson Utilities Commission that this Project will be allowed to interconnect to the electrical switchgear at the Water Treatment Plant. I d. Obtain a waiver from the Minnesota Office of Management and Budget permitting the use of the Site for the Project notwithstanding the terms of the existing emergency operations grant from the OMB to the City. 4. Within fifteen (15) business days following the City's receipt of the Development Report, the City shall review the Development Report and notify Ameresco, in writing, whether, in the City's reasonable judgment, the Project meets the financial, technical and other objectives described in this Term Sheet and of the City's election, based on such reasonable judgment, to proceed or not to proceed with the Project as provided in this Term Sheet. 10 Attachment B Cash Flow Analysis 11 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Water /Wastewater Dept. Temporary Management /Licensure Support Items Department: PW /Eng LICENSE SECTION Meeting Date: 9/23/2014 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OF AGENDA ITEM: Due to the recent announcement of the resignation of the City's Water/Wastewater Superintendent, City staff has been reviewing options to maintain necessary management and licensure support at the respective plants into the near future. At this point, it has been determined that appointing Dick Nagy to fill his former position of Water Superintendent (see attached job description) on a limited basis (approximately 7 hour /week at $40.00 /hour) and securing a consultant services agreement (fee amount and timeframe to be provided at the City Council meeting) for Wastewater Department operational /regulatory support would appear to be in the best interest of the City in the near -term. Also, the Public Works Director /City Engineer will be attempting to coordinate the majority of the necessary day -to -day administrative and management duties (will office at the respective plants as deemed necessary) until a long -term Water /Wastewater management/supervision solution is established and the vacated position is appropriately addressed. At the upcoming meeting, City staff will provide an overview of this situation and provide further clarifications regarding the proposed position appointment and consultant services agreement parameters. BOARD ACTION REQUESTED: Approval of Water Superintendent Position Appointment and Wastewater Dept. Consultant Services Agreement Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: W, TITLE WATER SUPERINTENDENT jobdesc48 2009 DEPARTMENT PUBLIC WORKS SUPERVISED BY PUBLIC WORKS DIRECTOR SUMMARY MANAGES WATER PLANT; PROVIDES CUSTOMER AND METERING; ENSURES REGULATORY MANAGEMENT, EQUIPMENT MAINTENANCE AND RECORDS DUTIES AND RESPONSIBILITIES Supervises and coordinates the work performed by the employees of the water treatment plant under the direction of the Public Works Director. Maintains familiarity with all procedures and has the ability to serve a backup for other staff when necessary. Procedures include but are not limited to: • Operation and maintenance of city wells and water plant facilities and equipment. Monitoring and operating system controls. • Planning and coordinating repair and maintenance of the water treatment plant and water meter infrastructure. • Monitors day -to -day water treatment plant operation and performance. • Maintains all historical and performance data. • Observing condition of water entering the filter plant and using chemicals and other treatments as required. Performing water quality tests. • Coordinates with staff - repair of faulty water meters, checking water meters and plumbing for leakage on request of the public or assigns these duties to utility worker, and meter read -ins and read -outs. 2 Assumes responsibility for overall effective operation of the water plant and the customer service system. Meets regularly with the Public Works Director to ensure that water plant operating requirements are met. 3 Works with contractors on construction of water lines to coordinate water service as needed. 4 Ensures that employees receive required safety and related training required to efficiently and safely operates and maintains the water facilities. 5 Ensures that machinery, equipment and structures utilized by the department are properly maintained and operated. Ensures that appropriate safety practices are followed. 6 Responds to emergency situations on a 24 -hour basis. Communicates with the Public Works Director as necessary to resolve problems. 7 Sees that the rules and regulations of the Pollution Control Agency, State Department of Health and Department of Natural Resources, or other agencies relative to the water treatment plant are followed. 8 Prepares monthly reports required by the State or other agencies. 9 Develops, with the Public Works Director and Public Works Manager, the annual budget request for the water plant and works with the Public Works Director to operate within the budgets. 10 Attends staff meetings and other meetings as required and communicates relevant to the activities of the water plant. 11 Performs job evaluations and performance pay recommendations for employees under supervision as directed by the Public Works Director. 12 Prepares reports and records of department operations as requested by the Public Works Director. 13 Acts to maintain and improve public relations with residents and others. 14 Responds to questions and problems of the public in connection with water service policies. 15 Is responsible for development of Standard Operating Procedures (SOP) for water plant, collection. Will also review and revise SOPS annually as required to comply with current facility needs. 16 Maintains records on all maintenance costs and reports year -end report to Public Works Director. 17 Performs related duties as required. EQUIPMENT All related Water facility and water system equipment, personal computer and related software, printers, copiers, cellular telephone, 2 -way radio, telephone, fax machine, and City vehicles. DESIREABLE QUALIFICATIONS Minimum 2 years of technical training and associated degree in water treatment operation and maintenance. In addition, this position requires a minimum of five to seven years of relevant water plant and supervisory experience in a similar sized operation and facility. Ability to establish working relationships and to communicate well with employees and the public. General knowledge of water plant functions and personnel management. Basic knowledge of electricity, hydraulics and electronics. SPECIAL REQUIREMENTS State of Minnesota Class C Water Operator Certificate — Prefer Class A or Class B Valid Minnesota Drivers License WORKING CONDITIONS Inside and outside work. Temperature extremes and odors. Some hazard from chemicals and gases. Will be expected to respond to emergency calls and emergency situations 24/7 when available. After hours meetings as necessary. Grade 10 Exempt Position CITY OF HUTCHINSON ADDENDUM TO JOB DESCRIPTIONS 1995 TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT (ADA) FOR MAINTENANCE POSITIONS: Park/Arena Operator, Street Operator, Water and Wastewater Operator and Maintenance, Cemetery Maintenance, Engineering Technician, Compost Equipment Operator, Compost Lead, Park Maintenance Lead, Maintenance Operations Lead, Transfer Site Equipment Operator. PHYSICAL DEMANDS The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations maybe made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee is regularly required to reach with hands and arms. The employee frequently is required to stand, walk and use hands to finger, handle, feel or operate objects, tools or controls. The employee is occasionally required to sit, climb or balance, stoop, kneel, crouch or crawl, and talk or hear, and smell. The employee must frequently lift and /or move up to 50 pounds and occasionally lift and /or move up to 100 pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus. WORK ENVIRONMENT The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations maybe made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee regularly works near moving mechanical parts and in outside weather conditions. The employee occasionally works in high, precarious places and is frequently exposed to wet/or humid conditions, fumes or airborne particles, toxic or caustic chemicals, and vibration. The employee is occasionally exposed to risk of electrical shock. The noise level in the work environment is frequently loud. The duties listed in job descriptions are intended only as illustrations of the various types of work that maybe performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change. BOL_._TON 8L M E=—:N K , i NC® Consulting Engineers & Surveyors UU, 2040 Highway 12 East • Willmar, MN 56201 -5818 Phone (320) 231 -3956 • Fax (320) 231 -9710 www.bolton- menk.com September 23, 2014 Mr. Kent Exner, P.E. Director of Public Works / City Engineer City of Hutchinson 11 I Hassan Street SE Hutchinson, MN 55350 RE: Wastewater Treatment Facility Operations Assistance Dear Mr. Exner: Based on our meeting earlier today, we understand that the City of Hutchinson requires wastewater operations assistance at your wastewater treatment facility. Bolton & Menk, Inc. is offering to provide the City of Hutchinson with the necessary Class A Operations assistance. Per Minnesota Pollution Control Agency (MPCA) regulations, Bolton & Menk proposes to be onsite a minimum of three (3) days per week for a minimum duration of two (2) hours per visit or, if allowed by the MPCA, two (2) days per week for a minimum duration of three (3) hours per visit. To accomplish this requirement, Bolton & Menk proposes a team effort with Charles DeWolf, Sr. and Kirk Yahnke performing on -site operations on a rotational basis. We will work with you and your staff to establish regular hours for assistance that will fit your schedules. Charles DeWolf, Sr. is a Class A Operator with 40 years of experience. He served as the wastewater superintendent for the City of Litchfield from 1977 -1992 and was promoted to Public Works Director in 1988. During this time, the City of Litchfield received the Minnesota Pollution Control Award of Commendation nine years. The City of Litchfield also received the Most Outstanding WWTP - Region V from the Environmental Protection Agency in 1980. Kirk Yahnke is a Certified Class A Operator with over 29 years of experience in inspection and startup of municipal water and wastewater facilities. He has provided contract operations assistance to the cities of Litchfield, Belle Plaine, Pemberton, Sherburn and Truman. The major wastewater treatment supervising and managing responsibilities that Bolton & Menk, Inc. would provide are as follows: 1) Provide on -site supervision of plant operations. 2) Oversee the monitoring, sampling, analyzing, and reporting as required by the Minnesota Pollution Control Agency (MPCA) with respect to the NPDES permit for wastewater treatment. The staff would also be instructed so that proper tests are performed to maintain the daily operation of the wastewater treatment plant. DESIGNING FOR A BETTER TOMORROW Bolton & Menk is an equal opportunity employer Mr. Kent Exner September 23, 2014 Page 2 3) Review with City staff the daily operations of the wastewater treatment facility. 4) Provide a liaison between the City of Hutchinson and the MPCA in matters relating to compliance with water quality and discharge requirements, and other liaison activities, as required. 5) Certify the monthly wastewater monitoring and operation reports to the MPCA. 6) Answer and provide wastewater operations assistance via the telephone on an as- needed basis to City staff during on -call periods. Bolton & Menk will provide the services outlined above at an hourly rate of $100 per hour. A minimum of six (6) hours of service will be provided each week to meet MPCA requirements. If requested, we would provide additional assistance beyond the duties outlined or provide additional hours of assistance at the same hourly rate. There is no charge for mileage or drive time to the City of Hutchinson. Thank you for the opportunity to submit this proposal. Please contact me at 320 -212 -2846 if you have any questions. Sincerely, BOLTON & MENK, INC. Iva Chuck DeWolf, P.E. Principal Engineer MINUTES Parks, Recreation & Community Education Advisory Board August 4, 2014 The meeting was called to order at 5:18 pm. Absent: Lori Hornick - Lindell and Matt Butler. John Rodeberg volunteered to serve as the PRCE Advisory Board Chair with no objections. A motion was made by Mary Christensen and seconded by Troy Scotting to approve the minutes dated April 7, 2014. The board unanimously agreed. OLD BUSINESS A. Dolf provided updates to the board on facility improvements including the Parks Garage roof /siding, West River Park bathroom installation, utility property installation and VMF infield /backstop construction. B. Burich Arena $1.85 million project is underway, completion and startup is slated for September 26tH C. Lena Mowlem wrote a $5,000 grant for the sculpture stroll, the grant provided sculpture bases, website creation and promotional brochures. D. 200 Football helmets were purchased this year. Funding came from the Burich Foundation, Walmart, Hutchinson Football Boosters, Hutchinson Jaycees and Silver Lake Lions. This was initiated as a three year project. It was completed in one year; both Raquel and John did a fantastic job with this proj ect. NEW BUSINESS Pool — Dolf shared a conceptual layout of four pool designs ranging from 1.25 million to 5 million. The difference in each of the approaches was discussed. The Board feels strongly that necessary actions be undertaken to deliver a project in the near future. Buffet — The 2015 proposed budget was distributed and discussed. The difference from the previous year was identified. The city levy limit will be established in September. A meeting will be held to further refine the budget. Dolf will keep the Board updated. CRAYO — After 15 years of operation, the Youth Orchestra will dissolve after their December concert. Lack of instructor, students and board members were cited as the reasons for ceasing operations. Summer — Dolf distributed the summer program report and responded to questions members had. On balance, all agreed it was a successful summer program with great participation. BOARD MEMBER ITEMS The Board agreed to meet September 9th in lieu of Labor Day. The Board will tour various projects at the meeting. There will be no October meeting due the MCEA Annual Conference that Dolf and Sharon attend. ADJOURNMENT The meeting was adjourned at 6:25pm on a motion by Elizabeth Hanninen - Scharn and seconded by Tim Peterson Resource Allocation Committee August 5, 2014 4:00 PM Hutchinson City Center Attendees: Steve Cook, Andy Reid, Kent Exner (Committee Members) Dolf Moon, John Olson, Dan Jochum, Lee Miller, Brian Mehr, John Paulson (Contributing Participants) Meeting Minutes 1. 2014 Infrastructure Improvement Program —review final draft of project costs /funding worksheet - Kent E. provided a review of the final draft of the 2014 Infrastructure Improvement Program project costs /funding worksheet. The overall infrastructure program bond funding is proposed to be slightly less than the $1.5 M target amount. RAC members agreed that the program costs /funding worksheet appears to be acceptable. Also, there was discussion of the potential administration of a limited (approximately $90,000) Sanitary Sewer Pipe Lining & Manhole Rehabilitation project later this year through a quotation process. At this point, the City Finance Dept. will begin to administer the bond issuance process. 2. Infrastructure Maintenance Needs — review potential dedicated funding source City staff provided an update regarding the recently updated infrastructure maintenance needs information. RAC members agreed that a dedicated funding source to address these identified needs would be in the best interest of the City. Following RAC discussion, it was determined that utilizing excess I UC transfer funds would be appropriate ($250,000 annually for overall infrastructure and $250,000 every other year for the street sealcoating program). Also, it was requested that the RAC would annually review /approve the annual infrastructure maintenance program to be funded with City staff reporting this information to the City Council. At this point, it was requested that this information/approach be presented to the City Council at their upcoming workshop to review the 2015 General Fund Budget. 3. WWTF Solar Installation Project— review draft of Ameresco Terms Sheet - RAC members briefly reviewed several items pertaining to the development of the WWTF Solar PV Installation project including the draft terms sheet with Ameresco, proposed 1.5% electrical rate escalation factor, potential payback periods, possible 3M contribution, necessary performance contracting, potential third -party review and the upcoming City Council approval process. 4. Other Discussion Resource Allocation Committee September 2, 2014 4:00 PM Hutchinson City Center Attendees: Steve Cook, Gary Forcier, Andy Reid, Kent Exner (Committee Members) Dolf Moon, John Olson, Lee Miller, Brian Mehr, John Paulson (Contributing Participants) Meeting Minutes 1. Automatic Meter Reading (AMR) —review potential project delivery options and estimated costs - RAC members reviewed several items pertaining to the development of the AMR implementation project including recent cost estimations ($614,000), potential City staff labor ($20,000), proposed project specifications, HUC compensation (approximately $60,000) and possible funding sources. At this point, the RAC agreed that a City Council public hearing should be administered to review the proposed project and communicate the benefits of installing an AMR system. 2. WWTF Solar Installation Project— review cost estimations and pro forma - City staff provided an update regarding the recently updated project cost estimations and associated financial pro forma. Also, City staff noted that the City has until December 31, 2014, to approve the Xcel grant agreement. Thus, the City must expedite the approval of the project terms sheet and forthcoming performance contract with Ameresco to satisfy Xcel's delivery date. At this point, City staff will coordinate the necessary approvals and schedule a City Council public hearing for this project. 3. Infrastructure Maintenance Needs — review approach /documentation and potential funding sources - RAC members briefly reviewed recent infrastructure maintenance needs materials that will be provided at the upcoming City Council workshop scheduled for September 3, 2014. 4. Dakota Railroad Trestle Bridge Removal— review recent discussions with Rail Authority representative - City staff provided a review of recent conversations with Dakota Rail Authority representatives regarding the potential removal of the railroad trestle bridge immediately south of 5t` Avenue South. At this point, it appears that the Rail Authority is not interested in participating in the funding of the bridge removal, but agrees that the bridge could be removed to address safety and ongoing river channel maintenance concerns. RAC members agreed that the bridge should be removed at the estimated cost of $32,000 with funding being allocated from the remaining 2013 HUC infrastructure maintenance needs funds. City staff will bring this item to the City Council for their formal approval in the near future. 5. Other Discussion Weed Notices Monthly Report August 2014 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 8 Number of properties cleared by City order 3 Number of properties pending compliance 0 Properties that were ordered to be cleared by the City House Street Quadrant Property Owner City PID Jeffrey G Munsell 1355 Hwy 7 West 710 Alaska Ct NW Hutchinson, MN 55351 36- 117 -30 -06 -1080 Jeffrey G Munsell 1355 Hwy 7 West 720 Alaska Ct NW Hutchinson, MN 55352 36- 117 -30 -06 -1090 Jeffrey G Munsell 1355 Hwy 7 West 730 Alaska Ct NW Hutchinson, MN 55353 36- 117 -30 -06 -1100 Jeffrey G Munsell 1355 Hwy 7 West 740 Alaska Ct NW Hutchinson, MN 55354 36- 117 -30 -06 -1110 Jeffrey G Munsell 1355 Hwy 7 West 750 Alaska Ct NW Hutchinson, MN 55355 36- 117 -30 -06 -1120 Leonard Erickson Rev Trust 482 James St NW 845 Hwy 7 W Hutchinson, MN 55350 36- 117 -30 -10 -0010 Maria Elena Rojas De Barragan 304 11th Ave 791 California St NW Worthington, MN 56187 36- 117 -30 -06 -0310 Bart & Susan Carlson 1025 Texas Ave NW, Apt 955 Keith St SW Al2 Hutchinson, MN 55350 01- 116 -30 -15 -0410 Summary Income Statement General Fund August 31, 2014 TOTAL REVENUES Month of YTD Actual 10,879,792.00 2014 Budget 51.0% YTD Actual 10,495,938.00 52.5% EXPENDITURES: August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used REVENUES: 799,973.49 4,490,793.69 7,009,709.00 2,518,915.31 64.1% 4,442,964.45 6,778,616.00 65.5% Taxes - 2,295,387.29 4,491,446.00 (2,196,058.71) 51.1% 2,280,855.16 4,491,446.00 50.8% Other Taxes 12,307.34 100,643.68 245,000.00 (144,356.32) 41.1% 93,439.90 140,000.00 66.7% Licenses & Permits 20,964.67 184,323.21 240,000.00 (55,676.79) 76.8% 191,452.48 222,775.00 85.9% Intergovernmental Revenue 19,923.99 847,933.06 1,094,270.00 (246,336.94) 77.5% 844,258.50 1,099,265.00 76.8% Charges for Services 120,387.60 1,032,728.57 2,045,923.00 (1,013,194.43) 50.5% 1,046,085.81 2,056,731.00 50.9% Fines & Forfeitures 4,786.91 39,748.46 50,000.00 (10,251.54) 79.5% 41,244.69 45,000.00 91.7% Miscellaneous Revenues 43,497.01 337,511.96 646,500.00 (308,988.04) 52.2% 240,745.05 325,625.00 73.9% Transfers -In - 713,758.00 2,066,653.00 (1,352,895.00) 34.5% 768,204.08 2,108,846.00 36.4% Capital Contributions 0.0% 6,250.00 0.0% TOTAL REVENUES 221,867.52 5,552,034.23 10,879,792.00 (5,327,757.77) 51.0% 5,506,285.67 10,495,938.00 52.5% EXPENDITURES: Wages & Benefits 799,973.49 4,490,793.69 7,009,709.00 2,518,915.31 64.1% 4,442,964.45 6,778,616.00 65.5% Supplies 47,952.00 496,511.98 781,887.00 285,375.02 63.5% 465,928.67 783,840.00 59.4% Services & Charges 128,775.25 1,496,998.35 2,262,536.00 765,537.65 66.2% 1,530,237.99 2,393,441.00 63.9% Miscellaneous Expenses 34,693.09 200,870.05 533,068.00 332,197.95 37.7% 178,280.85 446,805.00 39.9% Transfers -Out - 47,015.00 96,000.00 48,985.00 49.0% 46,618.00 93,236.00 50.0% Capital Outlay 2,091.52 - (2,091.52) 100.0% 7,404.80 - 100.0% TOTAL EXPENDITURES 1,011,393.83 6,734,280.59 10,683,200.00 3,948,919.41 63.0% 6,671,434.76 10,495,938.00 63.6% TOTAL REVENUE OVER (UNDER) EXPENDITURES (789,526.31) (1,182,246.36) 196,592.00 (1,378,838.36) (1,165,149.09) General Fund Expenditures by Department Department Month of YTD Actual 2014 Budget YTD Actual August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used Mayor &City Council 823.47 27,410.02 48,823.00 21,412.98 56.1% 25,163.78 52,016.00 48.4% City Administrator 25,269.46 253,124.92 412,884.00 159,759.08 61.3% 266,524.96 387,401.00 68.8% Elections 6,232.39 8,291.36 15,962.00 7,670.64 51.9% 805.31 10,000.00 8.1% Finance Department 25,022.92 196,713.24 295,894.00 99,180.76 66.5% 245,662.07 371,863.00 66.1% Motor Vehicle [1] 34,802.93 195,285.43 254,100.00 58,814.57 76.9% 202,619.74 275,413.00 73.6% Assessing - - 60,963.00 60,963.00 0.0% - 61,911.00 0.0% Legal 26,195.68 157,729.83 256,142.00 98,412.17 61.6% 155,525.49 252,067.00 61.7% Planning 18,066.40 84,890.38 135,012.00 50,121.62 62.9% 95,504.61 123,210.00 77.5% Information Services 37,254.65 261,752.14 427,012.00 165,259.86 61.3% 321,568.97 499,332.00 64.4% City Hall Building 5,421.11 58,061.69 83,494.00 25,432.31 69.5% 58,903.55 121,096.00 48.6% Police Department 328,721.46 2,018,533.66 3,197,339.00 1,178,805.34 63.1% 1,875,563.59 2,889,291.00 64.9% Emergency Management 74.85 5,273.37 14,839.00 9,565.63 35.5% 16,470.64 13,000.00 126.7% Safety Committee - 7,937.32 13,276.00 5,338.68 59.8% 7,970.49 13,450.00 59.3% Fire Department 17,164.48 167,969.04 273,924.00 105,954.96 61.3% 196,197.42 309,187.00 63.5% Protective Inspections 20,084.67 121,442.49 178,407.00 56,964.51 68.1% 126,418.23 208,350.00 60.7% Engineering 43,984.02 268,161.21 424,543.00 156,381.79 63.2% 350,130.28 465,756.00 75.2% Streets & Alleys 137,171.04 1,050,580.23 1,374,733.00 324,152.77 76.4% 892,678.61 1,369,738.00 65.2% Park/Recreation Administration 21,424.24 143,702.78 218,929.00 75,226.22 65.6% 143,111.32 213,127.00 67.1% Recreation 27,763.54 172,625.80 218,072.00 45,446.20 79.2% 160,293.75 217,610.00 73.7% Senior Citizen Center 5,037.24 49,838.04 68,620.00 18,781.96 72.6% 53,816.07 69,749.00 77.2% Civic Arena 10,925.09 190,511.23 309,957.00 119,445.77 61.5% 219,411.15 331,469.00 66.2% Park Department 105,196.52 564,112.96 794,003.00 229,890.04 71.0% 543,531.00 757,260.00 71.8% Recreation Building & Pool 19,478.35 123,299.45 190,756.00 67,456.55 64.6% 138,059.96 185,885.00 74.3% Events Center 18,263.83 139,893.50 219,027.00 79,133.50 63.9% 128,156.87 213,650.00 60.0% Evergreen Building 2,256.52 8,917.64 17,393.00 8,475.36 51.3% 10,767.00 11,880.00 90.6% Library 1,377.69 101,182.26 190,606.00 89,423.74 53.1% 139,023.18 190,937.00 72.8% Cemetery 15,670.53 68,430.79 107,072.00 38,641.21 63.9% 54,083.90 109,104.00 49.6% Airport 4,078.73 58,549.23 99,776.00 41,226.77 58.7% 48,146.76 99,700.00 48.3% Revenue Department - - - - 0.0% - - 0.0% Unallocated General Expense 53,632.02 230,060.58 781,642.00 551,581.42 29.4% 195,326.06 672,486.00 29.0% TOTAL EXPENDITURES 1,011,393.83 6 734 280.59 10 683 200.00 3,948,919.41 63.0% 6,671,434.76 10 495 938.00 63.6 [1] Motor Vehicle expenses are tracking higher than budget due to the replenishment of the ATM in city center. All other Motor Vehicle expenses are tracking under budget. Currently we expense the replenishment while the reimbursements are shown as revenue. The net impact on the department is a modest profit with the ATM revenue exceeding the ATM expense. Finance is currently looking at a better way to account for the ATM activity to avoid confusion reading the financials, possibly netting the replenishment against the revenue and simply show a net revenue. REVENUES: Sales - Liquor Sales - Wine Sales - Beer Sales - Other Other Revenues TOTAL REVENUES Gross Margin EXPENDITURES: Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Depreciation Expense Capital Outlay Debt Service Transfers -Out TOTAL EXPENDITURES TOTAL REVENUE OVER (UNDER) EXPENDITURES Comments REVENUES: Summary Income Statement Liquor Fund August 31, 2014 Month of YTD Actual 2014 Budget YTD Actual August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used 163,061.61 1,203,468.27 1,811,000.00 (607,531.73) 66.5% 1,150,621.36 1,803,150.00 63.8% 61,689.04 545,357.32 951,000.00 (405,642.68) 57.3% 571,029.97 898,430.00 63.6% 282,365.43 1,852,882.78 2,631,000.00 (778,117.22) 70.4% 1,792,665.64 2,709,500.00 66.2% 11,674.34 31,610.10 2,000.00 29,610.10 1580.5% 674.44 14,470.00 4.7% 613.24 2,455.54 3,000.00 (544.46) 81.9% 4,222.85 3,000.00 140.8% 519,403.66 3,635,774.01 5,398,000.00 (1,762,225.99) 67.4% 3,519,214.26 5,428,550.00 64.8 25.3% 24.7% 25.0% 24.7% 24.1% 387,423.03 2,736,916.51 4,045,650.00 1,308,733.49 67.7% 2,645,820.78 4,115,697.00 64.3% 57, 712.51 343,173.33 502, 400.00 159, 226.67 68.3% 321,953.38 488,190.00 65.9 821.12 12,494.29 15,600.00 3,105.71 80.1% 11,375.01 16,600.00 68.5% 11,358.70 108,015.42 186,264.00 78,248.58 58.0% 131,353.73 196,750.00 66.8% - 3,551.99 5,500.00 1,948.01 64.6% 4,869.21 3,650.00 133.4% - 73,600.00 73,600.00 0.0% - 70,940.00 0.0% 31,578.62 27,000.00 (4,578.62) 117.0% 14,098.05 31,000.00 45.5% - 128,385.00 128,385.00 0.0% - 128,295.00 0.0% - 450,000.00 450,000.00 0.0% - 435,000.00 0.0% 457,315.36 3,235,730.16 5,434,399.00 2,198,668.84 59.5% 3,129,470.16 5,486,122.00 57.0 62,088.30 400,043.85 (36,399.00) 436,442.85 389,744.10 (57,572.00) Year to Date Sales YTD Customer Count 149,183 147,051 1.4% 21,211 22,285 -4.8% Average Sale per Customer $24.35 $23.90 1.9% $24.46 $23.97 2.0% With the new cash register system and software, discounts are being recorded as reductions in the specific sales categories (Liquor, Wine & Beer). This is a change from the prior system that was able to record all discounts as a separate category that was included within the Sales -Other line item. Therefore, starting in July 2014 with the new system, the Other category will grow larger than the prior year while Liquor, Wine and Beer will be reduced due to the accounting for the discounts. 2014 2013 Change Liquor 1,203,468 1,150,621 4.6 Wine 545,357 571,030 -4.5% Beer 1,852,883 1,792,666 3.4% Other 31,610 674 4586.9% Total Sales 3,633,318 3,514,991 3.4% YTD Customer Count 149,183 147,051 1.4% 21,211 22,285 -4.8% Average Sale per Customer $24.35 $23.90 1.9% $24.46 $23.97 2.0% With the new cash register system and software, discounts are being recorded as reductions in the specific sales categories (Liquor, Wine & Beer). This is a change from the prior system that was able to record all discounts as a separate category that was included within the Sales -Other line item. Therefore, starting in July 2014 with the new system, the Other category will grow larger than the prior year while Liquor, Wine and Beer will be reduced due to the accounting for the discounts. Monthly Sales 2014 2013 Change 163,062 165,745 -1.6% 61,689 78,014 -20.9% 282,365 291,268 -3.1 11,674 (824) - 1517.4% 518,790 534,204 -2.9% YTD Customer Count 149,183 147,051 1.4% 21,211 22,285 -4.8% Average Sale per Customer $24.35 $23.90 1.9% $24.46 $23.97 2.0% With the new cash register system and software, discounts are being recorded as reductions in the specific sales categories (Liquor, Wine & Beer). This is a change from the prior system that was able to record all discounts as a separate category that was included within the Sales -Other line item. Therefore, starting in July 2014 with the new system, the Other category will grow larger than the prior year while Liquor, Wine and Beer will be reduced due to the accounting for the discounts. Summary Income Statement Water Fund August 31, 2014 Month of YTD Actual 2014 Budget YTD Actual August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used REVENUES: Local Sales Tax 47,402.86 330,953.44 650,000.00 (319,046.56) 50.9% 264,633.19 420,000.00 63.0% Water Sales 225,786.66 1,510,815.39 2,381,500.00 (870,684.61) 63.4% 1,494,872.55 2,347,500.00 63.7% Charges for Services 1,995.65 40,658.46 42,500.00 (1,841.54) 95.7% 47,325.86 41,000.00 115.4% Investment Earnings - (28.73) 20,000.00 (20,028.73) -0.1% 2,928.15 20,000.00 14.6% Reimbursements 688.15 1,841.83 64,192.00 (62,350.17) 2.9% 1,914.44 64,148.00 3.0% Other Financing Sources - - - 250,000.00 0.0% - - 0.0% Fund Balance 767,973.70 1,043,720.15 1,229,916.00 186,195.85 0.0% 1,037,071.68 1,218,848.00 0.0% TOTAL REVENUES 275,873.32 1,884,240.39 3,158,192.00 (1,273,951.61) 59.7% 1,811,674.19 2,892,648.00 62.6 EXPENDITURES: Wages & Benefits 48,571.08 260,649.51 427,480.00 166,830.49 61.0% 286,083.42 465,623.00 61.4% Supplies 5,666.70 62,675.87 124,250.00 61,574.13 50.4% 63,186.14 128,825.00 49.0% Services & Charges 13,348.12 276,656.87 409,618.00 132,961.13 67.5% 277,003.00 440,470.00 62.9% Miscellaneous Expenses 193.56 9,220.22 22,000.00 12,779.78 41.9% 8,472.50 15,850.00 53.5% Depreciation Expense - - 1,105,500.00 1,105,500.00 0.0% - 1,057,860.00 0.0% Capital Outlay - - 250,000.00 250,000.00 0.0% 313,090.31 250,000.00 125.2% Debt Service 767,973.70 1,043,720.15 1,229,916.00 186,195.85 84.9% 1,037,071.68 1,218,848.00 85.1% Transfers -Out - - 43,145.00 43,145.00 0.0% - 43,145.00 0.0% TOTAL EXPENDITURES 835,753.16 1,652,922.62 3,611,909.00 1,958,986.38 45.8% 1,984,907.05 3,620,621.00 54.8 TOTAL REVENUE OVER (UNDER) EXPENDITURES (559,879.84) 231,317.77 (453,717.00) 685,034.77 (173,232.86) (727,973.00) Comments EXPENSES: Capital Outlay The capital outlay in 2013 was for the replacement of the RO Membranes. REVENUES: Local Sales Tax Sewer Sales Permits Charges for Services Investment Earnings Reimbursements Other Financing Sources Fund Balance TOTAL REVENUES EXPENDITURES: Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Depreciation Expense Capital Outlay Debt Service Transfers -Out TOTAL EXPENDITURES TOTAL REVENUE OVER (UNDER) EXPENDITURES Comments EXPENSES: Capital Outlay Summary Income Statement Sewer Fund August 31, 2014 Month of YTD Actual 608,184.00 2014 Budget 65.2% YTD Actual 653,623.00 59.2% August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used 47,402.85 331,299.05 650,000.00 (318,700.95) 51.0% 365,293.03 580,000.00 63.0% 263,389.95 2,165,351.90 3,132,000.00 (966,648.10) 69.1% 2,248,505.19 3,190,000.00 70.5% - 6,700.00 7,000.00 (300.00) 95.7% 6,800.00 7,000.00 97.1 449.26 5,119.00 7,000.00 (1,881.00) 73.1% 446.76 7,000.00 6.4% - (805.48) 20,000.00 (20,805.48) -4.0% 4,025.07 20,000.00 20.1 1,896.00 23,138.83 64,192.00 (41,053.17) 36.0% 15,660.92 64,148.00 24.4% - - - 0.0% - - 0.0% 958,411.29 2,372,110.89 5,200,570.00 2,828,459.11 0.0% 2,441,332.15 5,342,782.00 0.0 313,138.06 2,530,803.30 3,880,192.00 (1,349,388.70) 65.2% 2,640,730.97 3,868,148.00 68.3 68,193.63 396,601.43 608,184.00 211,582.57 65.2% 386,936.50 653,623.00 59.2% 9,287.66 130,930.11 249,810.00 118,879.89 52.4% 131,554.16 254,700.00 51.7% 50,652.69 457,771.94 743,765.00 285,993.06 61.5% 484,012.04 837,960.00 57.8% 273.56 24,186.04 26,100.00 1,913.96 92.7% 15,869.87 27,000.00 58.8% - - 1,589,300.00 1,589,300.00 0.0% - 1,647,960.00 0.0% - - 350,000.00 350,000.00 0.0% 68,199.57 350,000.00 19.5% 830,003.75 1,362,621.37 1,590,266.00 227,644.63 85.7% 1,354,760.01 1,528,394.00 88.6% - - 43,145.00 43,145.00 0.0% - 43,145.00 0.0 958,411.29 2,372,110.89 5,200,570.00 2,828,459.11 45.6% 2,441,332.15 5,342,782.00 45.7 (645,273.23) 158,692.41 (1,320,378.00) 1,479,070.41 199,398.82 (1,474,634.00) The capital outlay in 2013 was to replace the basin liner. REVENUES: Storm Water Sales Licenses & Permits Charges for Services Investment Earnings Reimbursements Fund Balance TOTAL REVENUES EXPENDITURES: Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Depreciation Expense Capital Outlay Debt Service Transfers -Out TOTAL EXPENDITURES TOTAL REVENUE OVER (UNDER) EXPENDITURES Summary Income Statement Stormwater Fund August 31, 2014 Month of YTD Actual 2014 Budget YTD Actual August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used 61,240.63 484,379.57 719,500.00 (235,120.43) 67.3% 445,604.90 664,350.00 67.1% 300.00 775.00 - 775.00 100.0% 1,860.00 - 100.0% - - 1,000.00 (1,000.00) 0.0% - 1,000.00 0.0% - (417.64) 1,000.00 (1,417.64) -41.8% 549.68 1,000.00 55.0% 200.00 2,918.00 250.00 2,668.00 1167.2% 3,269.95 - 100.0% - - - - 0.0% - - 0.0% 61,740.63 487,654.93 721,750.00 (234,095.07) 67.6% 451,284.53 666,350.00 67.7% 10,754.97 69,057.29 208,737.00 139,679.71 33.1% 75,057.85 211,877.00 35.4% 936.17 13,360.60 33,150.00 19,789.40 40.3% 3,748.66 29,100.00 12.9% 10,905.41 69,023.08 146,450.00 77,426.92 47.1% 47,463.69 144,300.00 32.9% 194.91 4,624.06 8,050.00 3,425.94 57.4% 4,232.29 2,200.00 192.4% - - 111,200.00 111,200.00 0.0% - 113,060.00 0.0% - 128,000.00 128,000.00 0.0% 100.00 120,000.00 0.1 146,544.30 193,932.00 47,387.70 75.6% 148,809.30 198,857.00 74.8% 0.0% 0.0 22,791.46 302,609.33 829,519.00 526,909.67 36.5% 279,411.79 819,394.00 34.1 38,949.17 185,045.60 (107,769.00) 292,814.60 171,872.74 (153,044.00) Summary Income Statement HATS Fund August 31, 2014 TOTAL REVENUES 64,153.73 526,665.44 779,700.00 (253,034.56) 67.5% 496,432.43 767,632.00 64.7% EXPENDITURES Wages & Benefits Month of YTD Actual 52,235.00 2014 Budget 93.8% YTD Actual 52,665.00 87.1 Supplies August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used REVENUES: 11,210.31 93,771.99 147,500.00 53,728.01 63.6% 99,611.58 150,080.00 66.4% Intergovernmental 6,027.50 85,590.00 147,070.00 (61,480.00) 58.2% 79,577.36 136,396.00 58.3% Charges for Services 41,172.23 376,963.85 535,000.00 (158,036.15) 70.5% 351,458.78 535,000.00 65.7% Investment Earnings - 142.59 1,100.00 (957.41) 13.0% 142.67 1,000.00 14.3% Reimbursements 16,954.00 16,954.00 2,500.00 14,454.00 678.2% 18,635.62 2,000.00 931.8% Transfers -In - 47,015.00 94,030.00 (47,015.00) 50.0% 46,618.00 93,236.00 50.0% TOTAL REVENUES 64,153.73 526,665.44 779,700.00 (253,034.56) 67.5% 496,432.43 767,632.00 64.7% EXPENDITURES Wages & Benefits 9,816.69 48,978.93 52,235.00 3,256.07 93.8% 45,896.30 52,665.00 87.1 Supplies 52,912.32 353,844.46 536,825.00 182,980.54 65.9% 339,573.11 535,000.00 63.5% Services & Charges 11,210.31 93,771.99 147,500.00 53,728.01 63.6% 99,611.58 150,080.00 66.4% Miscellaneous Expenses - - 5,100.00 5,100.00 0.0% 35.00 5,077.00 0.7% Depreciation Expense - - 0.0% - - 0.0% Capital Outlay 37,960.00 37,960.00 0.0% 20,500.00 0.0% Debt Service - - 0.0% - 0.0% Transfers -Out 0.0% 0.0% TOTAL EXPENDITURES 73,939.32 496,595.38 779,620.00 283,024.62 63.7% 485,115.99 763,322.00 63.6% TOTAL REVENUE OVER (UNDER) EXPENDITURES (9,785.59) 30,070.06 80.00 29,990.06 11,316.44 4,310.00 Comments REVENUES: Charges for Services This income category consists of the fuel revenue from various governmental entities and City departments. EXPENSES: Supplies This expense category consists of the fuel purchased for use by various governmental entities and City departments. Summary Income Statement Refuse Fund July 31, 2014 TOTAL REVENUES 98,801.38 667,608.61 1,153,287.00 (485,678.39) 57.9% 663,109.02 1,160,150.00 57.2% EXPENDITURES: Month of YTD Actual 2014 Budget YTD Actual Wages & Benefits July2014 July 2014 2014 Budget Balance % Used July 2013 2013 Budget % Used REVENUES: 12,029.54 34,360.56 68,500.00 34,139.44 50.2% 38,455.32 61,700.00 62.3% Refuse Sales 95,418.50 661,085.13 1,138,287.00 (477,201.87) 58.1% 659,983.34 1,145,150.00 57.6% Intergovernmental 3,382.88 5,857.88 12,500.00 (6,642.12) 46.9% 2,216.25 12,500.00 17.7% Investment Earnings - (334.40) 2,500.00 (2,834.40) -13.4% 909.43 2,500.00 36.4% Reimbursements 1,000.00 - 1,000.00 100.0% - - 0.0% Fund Balance - 24,260.00 - 0.0% 1,808.80 24,261.00 0.0% TOTAL REVENUES 98,801.38 667,608.61 1,153,287.00 (485,678.39) 57.9% 663,109.02 1,160,150.00 57.2% EXPENDITURES: Wages & Benefits 14,552.37 90,199.96 153,350.00 63,150.04 58.8% 105,465.30 172,065.00 61.3% Supplies 12,029.54 34,360.56 68,500.00 34,139.44 50.2% 38,455.32 61,700.00 62.3% Services & Charges 58,937.07 353,813.59 720,873.00 367,059.41 49.1% 338,350.64 687,625.00 49.2 Miscellaneous Expenses 289.93 1,203.62 1,250.00 46.38 96.3% 54.00 - 100.0% Depreciation Expense - - 116,100.00 116,100.00 0.0% - 132,510.00 0.0% Capital Outlay - 110,000.00 110,000.00 0.0% 38,952.34 31,930.00 122.0% Debt Service 1,311.92 24,260.00 22,948.08 5.4% 1,808.80 24,261.00 7.5% Transfers -Out - - 55,000.00 55,000.00 0.0% - 55,000.00 0.0% TOTAL EXPENDITURES 85,808.91 480,889.65 1,249,333.00 768,443.35 38.5% 523,086.40 1,165,091.00 44.9% TOTAL REVENUE OVER (UNDER) EXPENDITURES 12,992.47 186,718.96 (96,046.00) 282,764.96 140,022.62 (4,941.00) Summary Income Statement Compost Fund August 31, 2014 Month of YTD Actual 2014 Budget YTD Actual August 2014 August 2014 2014 Budget Balance % Used August 2013 2013 Budget % Used REVENUES: Sales - Bagged Product 89,742.53 2,350,107.18 2,288,300.00 61,807.18 102.7% 2,158,795.03 1,982,500.00 108.9% Sales - Bulk Product 29,985.60 209,333.91 175,000.00 34,333.91 119.6% 165,526.91 200,000.00 82.8% Sales - Other 13,701.19 127,344.79 45,550.00 81,794.79 279.6% 90,840.52 52,250.00 173.9% Charges for Services 7,210.00 1,103.60 133,500.00 (132,396.40) 0.8% 73,403.96 129,000.00 56.9% Investment Earnings - 345.99 5,000.00 (4,654.01) 6.9% (237.68) 2,500.00 -9.5% Reimbursements 11,561.38 243.98 1,000.00 (756.02) 24.4% 484.87 1,000.00 48.5% Other Revenues 71.00 - - 7,541.24 0.0% - - 0.0% TOTAL REVENUES 140,639.32 2,688,479.45 2,648,350.00 40,129.45 101.5% 2,488,813.61 2,367,250.00 105.1 EXPENDITURES: Cost of Sales 11,485.37 1,980,742.74 1,947,380.00 (33,362.74) 101.7% 1,929,444.80 1,467,050.00 131.5% Inventory Cost Adjustment - (686,886.37) (972,802.00) (285,915.63) 70.6% (815,699.31) (508,200.00) 160.5% Wages & Benefits 72,785.19 495,749.52 780,684.00 284,934.48 63.5% 498,074.10 706,935.00 70.5% Supplies 12,866.48 88,956.13 134,500.00 45,543.87 66.1% 125,938.11 128,500.00 98.0% Services & Charges 4,901.83 112,237.02 151,555.00 39,317.98 74.1% 140,644.15 158,500.00 88.7% Freight 11,561.38 118,987.74 180,000.00 61,012.26 66.1% 158,047.39 170,000.00 93.0% Miscellaneous Expenses 71.00 5,458.76 13,000.00 7,541.24 42.0% 6,568.87 14,340.00 45.8% Depreciation Expense - - 140,500.00 140,500.00 0.0% - 141,780.00 0.0% Capital Outlay 52,609.18 157,888.00 105,278.82 33.3% 112,443.76 10,833.00 1038.0% Transfers -Out - 102,847.00 102,847.00 0.0% - 90,775.00 0.0% TOTAL EXPENDITURES 113,671.25 2,167,854.72 2,635,552.00 467,697.28 82.3% 2,155,461.87 2,380,513.00 90.5 TOTAL REVENUE OVER (UNDER) EXPENDITURES 26,968.07 520,624.73 12,798.00 507,826.73 333,351.74 (13,263.00) f Cr W .2 Executive summary as of August 31, 2014 Asset allocation review Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Expected cash flow Is Thousands 36 30 24 18 12 0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2014 2015 2015 0 Taxable income Total taxable income: $146,541.46 Total expected cash flow: $146,541.46 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings Value on % of 08/3112014($) portfolio A Cash 2,250,593.94 16.39 Cash 2,250,593.94 16.39 B Fixed Income 11,481,463.69 83.61 US 11,032,666.52 80.34 International 448,797.17 3.27 A C Equity 0.00 0.00 D Commodities 0.00 0.00 E Non - Traditional 0.00 0.00 F Other 0.00 0.00 a Total Portfolio M $13,732,057.63 100% Balanced mutual funds are allocated In the 'Other category Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Expected cash flow Is Thousands 36 30 24 18 12 0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2014 2015 2015 0 Taxable income Total taxable income: $146,541.46 Total expected cash flow: $146,541.46 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings D Baa /BBB /BBB 0 0.00 0.00 E Non - investment grade 0 0.00 0.00 F Certificate of deposit 18 4,017,592.00 35.03 G Not rated 0 0.00 0.00 Total 27 $11,481,463.69 100° A 6 Report created on September 02, 2014 Pagel of 3 Value on % of Effective credit rating Issues 08/3112014($) port. A Aaa /AAA/AAA 5 4,427,068.36 38.54 B Aa /AA/AA 4 3,036,803.33 26.43 C A/A/A 0 0.00 0.00 D Baa /BBB /BBB 0 0.00 0.00 E Non - investment grade 0 0.00 0.00 F Certificate of deposit 18 4,017,592.00 35.03 G Not rated 0 0.00 0.00 Total 27 $11,481,463.69 100° A 6 Report created on September 02, 2014 Pagel of 3 f Cr W .2 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income SU 1 1 1 1 1 1 a ry Includes all fixed -rate securities In the selected portollo. Average yields and durations exclude Structured Product, Pass - Through, Perpetual Preferred, and Foreign securities . as of August 31, 2014 Bond overview Investment type allocation Total quantity 11, 382, 000 Total market value $11,457,767.73 Value on % of Effective credit rating Issues % of Total accrued interest $23,695.96 5 4,427,068.36 Tax exempt I B Aa /AA/AA bond Total market value plus accrued interest $11,481,463.69 Investment type Taxable ($) deferred ($) Total ($) port. Total estimated annual bond interest $151,452.25 Certificates of deposit 4,017,592.00 0.00 4,017,592.00 34.99 Average coupon 1.35% Municipals 1,533,263.33 0.00 1,5 33,263 33 13.35 Average current yield 1.32 % U.S. federal agencies 5,930,608.36 0.00 5,930,608.36 51.65 Average yield to maturity 0.88 Average yield to worst 0.88% Total $11,481,463.69 $0.00 $11,481,463.69 100 Average modified duration 2.12 Average effective maturity 5.15 Credit quality of bond holdings D Baa /BBVBBB 0 0.00 0.00 E Non - investment grade 0 0.00 0.00 F Certificate of deposit 18 4,017,592.00 35.03 G Not rated 0 0.00 0.00 Total 27 $11,481,463.69 100 Bond maturity schedule $ Millions 3.5 26.1 F A 3.0 22.3% 21.4 2.5 2.0 B 1.5 1.0 J4.1% 1.2 0.0% 0.0% 0.0% 0.0% 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20252025 +Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. Report created on September 02, 2014 Pagel of 2 Value on % of Effective credit rating Issues 08/3112014($) port. A Aaa /AAA/AAA 5 4,427,068.36 38.54 B Aa /AA/AA 4 3,036,803.33 26.43 C A/A/A 0 0.00 0.00 D Baa /BBVBBB 0 0.00 0.00 E Non - investment grade 0 0.00 0.00 F Certificate of deposit 18 4,017,592.00 35.03 G Not rated 0 0.00 0.00 Total 27 $11,481,463.69 100 Bond maturity schedule $ Millions 3.5 26.1 F A 3.0 22.3% 21.4 2.5 2.0 B 1.5 1.0 J4.1% 1.2 0.0% 0.0% 0.0% 0.0% 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20252025 +Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. Report created on September 02, 2014 Pagel of 2 UBS SIncludes all fixed -rate securities In the selected porfollo. Average as of August 31, 2014 Summary of bond holdings Maturity Est annual Current Yield to Yield to Modified Year Issues Quantity income ($) yield (%) maturity (%) worst (%) duration yields and durations exclude Adjusted cost basis ($) Prepared for City tc Hutchinson RP 38446 •City of Hutchinson •Business Service Account Risk profile. Conservative Return Objective. Current Income Structured Product, Pass - Through, Perpetual Preferred, and Foreign securities . Unrealized gain/ loss ($) Mkt. value ($) % of bond portfolii 2014 1 249,000 1,992.00 0.80% 0.18 % 0.18 % 0.30 249,000 453.18 249,873.41 2.18% 2015 11 2,550,000 20,884.00 0.82% 0.37 % 0.37 % 0.73 2,550,000 7,513.71 2,560,066.591�2232i 2016 1 145,000 1,812.50 1.24% 064% 064% 1.92 145,000 1,697.95 146,807.20111.28% 2017 6 1,748,000 44,348.75 2.45% 0.99 % 0.99 % 2.55 1,787,320.24 25,368.35 1,818,105.31 ��1582i 2018 1 240,000 3,240.00 1.37% 1.74 % 1.74 % 3.98 240,000 - 3,727.20 236,512.47102.06% 2019 1 500,000 11,725.00 2.31 % 2.04 % 2.04 % 4.62 507,183.77 -43.77 508,117.081 =4.43% 2020 1 500,000 10,450.00 2.08% 1.96 % 1.96 % 5.29 499,995 3,390.00 506,084.581 =4.39% 2021 0 0 NA NA NA 2022 2 2,450,000 24,500.00 1.00% NA NA NA 2,450,000 1,456.50 2,458,119.00 21.4i 2023 3 3,000,000 32,500.00 1.09% NA NA NA 3,000,000 - 6,840.00 2,997,778.06 26.12% 2024 0 0 NA NA NA 2025 0 0 NA NA NA 2026 0 0 NA NA NA 2027 0 0 NA NA NA 2028 0 0 NA NA NA 2029 0 0 NA NA NA 2030 0 0 NA NA NA 2031 0 0 NA NA NA 2032 0 0 NA NA NA 2033 0 0 NA NA NA 2034 0 0 NA NA NA 2035 0 0 NA NA NA 2036 0 0 NA NA NA 2037 0 0 NA NA NA 2038 0 0 NA NA NA 2039 0 0 NA NA NA 2040 0 0 NA NA NA 2041 0 0 NA NA NA 2042 0 0 NA NA NA 2043 0 0 NA NA NA 2043+ 0 0 NA NA NA Other 0 0 NA NA NA -I 27 11,382,000 $151,452.25 1.32% 0.88 % 0.88 % 2.12 $11,428,499.01 $29,268.72 $11,481,463.69 Report created on September 02, 2014 Pagel of 6 f Bond holdings - as of August 31, 2014 (continued) Details of bond holdings Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Report created on September 02, 2014 Page 2 of 6 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. g/I ($) price ($) Accr interest ($) port. 11,382,000 1,11% 1012512019 NA $151,452.25 0,88% 2.12 111,428,499.01 NA 111,457,767.73 100 Total Bond Portfolio 1 1.32% 0.88% $29,268.72 $23,695.96 $11,481,463.69 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. g/I ($) price ($) Accr interest ($) port. Maturing 2014 HUNTINGTON NATL BK OH US RT CD 249,000 0.80% 12/15/2014 1,992.00 0.18% 0.30 249,000.00 100.182 249,453.18 2.18% 00.8000 % MAT 12/15/14 FIXED 080% 018% 453.18 420.23 RATE CD /OH Total 2014 249,000 0.80% 12/15/2014 $1,992.00 0.18% 0.30 $249,000.00 $249,453.18 2.18 0.80% 0.18% $453.18 $420.23 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2015 ALLY BANK UT US RT 00.9500 % CD 248,000 095% 02/09/2015 2,356.00 010% 0.45 248,000.00 100.380 248,942.40 2.17 MAT 02/09/15 FIXED RATE CD 095% 0.10 % 942.40 148.46 /UT GOLDMAN SACHS BANK NY US 248,000 1 05% 02/09/2015 2,604.00 050% 0.45 248,000.00 100.245 248,607.60 2.17 RT 01.0500 % MAT 02/09/15 a r 1.05 % 050% 607.60 164.09 FIXED RATE CD /NY DORAL BANK PR RT 00.9500 % CD 248,000 095% 02/10/2015 2,356.00 010% 0.45 248,000.00 100.382 248,947.36 2.17 MAT 02/10/15 FIXED RATE CD 095% 0.10 % 947.36 135.55 /PR GE CAP BK UT US RT 01.1000 % 115,000 1 10 % 06/08/2015 1,265 00 0.57 % 0.77 115,000.00 100.410 115,471 50 1.01 MAT 06/08/15 FIXED RATE CD 110% 057% 471.50 284.19 /UT i BANK LEUMI NY US RT CD 249,000 0.80% 06/15/2015 1,992.00 0.17% 0.79 249,000.00 100.502 250,249.98 2.18% 00.8000 % MAT 06/15/15 FIXED 0.80% 0.17 % 1,249.98 420.23 RATE CD /NY DISCOVER BANK DE US RT CD 248,000 1 05% 06/15/2015 2,604.00 042% 0.79 248,000.00 100.501 249,242.48 2.18 01.0500% MAT 06/15/15 FIXED 1.04% 0.42% 1,242.48 563.61 RATE CD /DE Report created on September 02, 2014 Page 2 of 6 f Bond holdings - as of August 31, 2014 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Report created on September 02, 2014 Page 3 of 6 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. all ($) price ($) Accr interest ($) port. Maturing 2015 BANK OF CHINA LTD US RT CD 249,000 0.30 % 06/18/2015 747.00 0.50% 0.80 249,000.00 99.836 248,591.64 2.17% 00.3000 % MAT 06/18/15 FIXED 030% 050% - 408.36 151 45 RATE CD EVERBANK FL US RT 00.5000 % 248,000 0.50 % 06/19/2015 1,24000 0.57 % 0.80 248,000.00 99.945 247,863.60 2.16 MAT 06/19/15 FIXED RATE CD /FL 050% 0.57 % - 136.40 248.00 STATE BKUSRT00.5000% MAT CD 200,000 0.50 % 06/26/2015 1,000.00 0.58% 0.82 200,000.00 99.938 199,876.00 1.74% 06/26/15 FIXED RATE CD 050% 058% - 124.00 178.08 SALLIE MAE BANK UT US RT 248,000 1 10 % 08110/2015 2,728.00 0.53 % 0.94 248,000.00 100.540 249,339.20 2.18 01.1000% MAT 08/10/15 FIXED 1.09% 0.53 % 1,339.20 171.90 RATE CD /UT SAFRA NATL BK NY US RT CD 249,000 0.80 % 08/17/2015 1,992 00 0.23 % 0.96 249,000.00 100.555 250,381 95 2.19 00.8000 % MAT 08/17/15 FIXED 0.80% 0.23 % 1,381.95 87.32 RATE CD /NY Total 2015 2,550,000 0.82% 05/23/2015 $20,884.00 0.37% 0.73 $2,550,000.00 $2,557,513.71 22.32 0.82% 0.37% $7,513.71 $2,552.88 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2016 AMERICAN EXPRESS C NY US RT CD 145,000 1 25 % 08/09/2016 1 ,812.50 0.64% 1.92 145,000.00 101.171 146,697.95 1.28 01.2500% MAT 08/09/16 FIXED 1.24% 0.64% 1,697.95 109.25 RATE CD /NY Total 2016 145,000 1.25% 08/09/2016 $1,812.50 0.64% 1.92 $145,000.00 $146,697.95 1.28 1.24% 0.64% $1,697.95 $109.25 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %B Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2017 MASSACHUSETTS DEPT TRANS Aa3 /AAINR 500,000 2.41 % 01/01/2017 12,040.00 093% 2.27 512,365.85 103.411 517,055.00 4.51 TAX SRBRV BE/R/ 2.408 NWNWNR 2.33% 0.93% 4,689.15 2,006.67 010117 OLD 113011 /MA FED FARM CREDIT BANK 04.875 Aaa/AAA/AA+ 431,000 4.88% 01/17/2017 21,011.25 0.82% 2.26 457,954.39 109.546 472,143.26 4.12% DUE 011717 OLD 010907 FC NWNWNR 1 445% 082% 14,188.87 2,568.04 07172007 111 COMENITY BANK DE US RT CD 200,000 1 15% 06/19/2017 2,300.00 1.44% 2.76 200,000.00 99.200 198,400.00 1.73 01.1500% MAT 06/19/17 FIXED 1.16% 1.44% - 1,600.00 176.44 RATE JUMBO CD /DE Report created on September 02, 2014 Page 3 of 6 f Bond holdings - as of August 31, 2014 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Total 2019 Effective rating/ 500,000 2.35% 08/01/2019 Est annual 2.04% 4.62 Adjusted $507,140.00 4.43 % of Underlying rating Effective Call date/ income ($)I YTM ( %)I Modified cost basis ($)I Market Mkt value ($)I bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield (%) YTW (%) duration Unreal. all ($) price ($) Accr interest ($) port. Maturing 2017 Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon GE CAP UT US RT % Curr yield ( %) 130,000 1 75% 08103/2017 2,275.00 1.32 % 2.85 130,000.00 101.249 131,623.70 1.1 5 RATE C0 MAT 08/03/17 FIXED RATE CD 03 1.73 % 1.32 % 1,623.70 2.09 % 168.29 10,450.00 /UT 499,995.00 100.677 503,385.00 4.39% B BE/R/ 2.090050120 OLD NWNWNR _ 2.08% 1.96% GE CAP RETAIL BK UT US RT CD 247,000 1 75% 08103/2017 4,322.50 1.31 % 2.85 247,000.00 101.249 250,085.03 2.18 01 7500% MAT 08/03/17 FIXED Total 2020 500,000 1.73 % 1.31 % 3,085.03 1.96% 5.29 319.75 $503,385.00 RATE CD WT 2.08% 1.96% $3,390.00 $2,699.58 SUN NATL BK NJ US RT CD 240,000 1 00% 10/03/2017 _ 2,400.00 0.54% 3.05 240,000.00 101.409 243,381 60 2.12 01.0000% MAT 10/03/17 FIXED 0.99% 0.54% 3,381.60 177.53 RATE CD /NJ Total 2017 1,748,000 2.59% 04/16/2017 $44,348.75 0.99% 2.55 $1,787,320.24 $1,812,688.59 15.82 2.45% 0.99% $25,368.35 $5,416.72 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2018 ENERBANK UT US RT 01.3500 % CD 240,000 1 35% 10/04/2018 3,240.00 1.74% 3.98 240,000.00 98.447 236,272.80 2.06 MAT 10/04/18 FIXED RATE CD 1.37 % 1.74% - 3,727.20 239.67 /UT Total 2018 240,000 1.35% 10/04/2018 $3,240.00 1.74% 3.98 $240,000.00 $236,272.80 2.06 1.37% 1.74% $- 3,727.20 $239.67 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2019 RIVERSIDE CACMNTYCOLGE Aa2/NWAA 500,000 2.35% 08101/2019 11,725.00 2.04% 4.62 507,183.77 101.428 507,140.00 4.43% TAX SRB BE/R/ 2.345 NWNWNR 2.31 % 2.04% -43.77 977.08 080119 OLD 052914/CA Total 2019 500,000 2.35% 08/01/2019 $11,725.00 2.04% 4.62 $507,183.77 $507,140.00 4.43 2.31% 2.04% $ -43.77 $977.08 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy /Fitch /S &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW ( %) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2020 MASS ST GO CONSOL LN TAX SR Aal /AA +IAA+ 500,000 2.09 % 05/01/2020 10,450.00 1.96% 5.29 499,995.00 100.677 503,385.00 4.39% B BE/R/ 2.090050120 OLD NWNWNR 2.08% 1.96% 3,390.00 2,699.58 052814 /MA Total 2020 500,000 2.09% 05/01/2020 $10,450.00 1.96% 5.29 $499,995.00 $503,385.00 4.39 2.08% 1.96% $3,390.00 $2,699.58 Report created on September 02, 2014 Page 4 of 6 f Bond holdings - as of August 31, 2014 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile. Conservative Return Objective. Current Income Total 2022 Effective rating/ 2,450,000 1.00% Est annual $24,500.00 Adjusted $2,450,000.00 % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt value ($)/ bond (MdylFitchlS &P) Quantity Coupon maturity Call price ($) Curr yield (%) YTW (%) duration Unreal. all ($) price ($) Accr interest ($) port. Maturing 2022 % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ FHLB STEP UP CALL BOND 01 000 Aaa /NWAA+ 950,000 1.00% 09/28/2022 09/28/2014 9,500.00 NA NA 950,000.00 100.057 950,541.50 8.30% DUE 092822 OLD 092812 FC NWNWNR Accr interest ($) 100.00 1.00 % NA 541.50 4,037.50 03282013 FHLB STEP UP CALL BOND 01 000 Aaa /NWAA+ 1,000,000 1.00% 01/30/2023 10/30/2014 FHLB STEP UP CALL BOND 01 000 NWNWAA+ 1,500,000 1.00% 12/282022 09/28/2014 15,000.00 NA NA 1,500,000.00 100.061 1,500,915.00 13.10% DUE 122822 OLD 122812 FC NWNWNR NA 100.00 1.00% NA 915.00 07302013 2,625.00 06282013 FHLB STEP UP CALL BOND 01 000 Aaa /NWAA+ Total 2022 2,450,000 1.00% 11/23/2022 $24,500.00 NA $2,450,000.00 $2,451,456.50 21.40% 1.00% NA $1,456.50 $6,662.50 Effective rating/ Est annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt value ($)/ bond (MdylFitchlS &P) Quantity Coupon maturity Call price ($) Curr yield (%) YTW (%) duration Unreal. qll ($) price ($) Accr interest ($) port. Maturing 2023 FHLB STEP UP CALL BOND 01 000 Aaa /NWAA+ 1,000,000 1.00% 01/30/2023 10/30/2014 10,000.00 NA NA 1,000,000.00 100.013 1,000,130.00 8.73% DUE 013023 OLD 013013 FC NWNWNR 100.00 1.00 % NA 130.00 833.33 07302013 FHLB STEP UP CALL BOND 01 000 Aaa /NWAA+ 1,000,000 1.00% 01/30/2023 10/30/2014 10,000.00 NA NA 1,000,000.00 99.527 995,270.00 8.69% % DUE 0133023 OLD 013013 FC NWNWNR 100.00 1.00 % NA - 4,730.00 833.33 0730201 M FHLB BOND STEP -UP 1.2500% Aaa /NWAA+ 1,000,000 1.25% 06/06/2023 09/06/2014 12,500.00 NA NA 1,000,000.00 99.776 997,760.00 8.71 DUE 060623 OLD 060613 FC NWNWNR 100.00 1.25 % NA - 2,240.00 2,951 39 12062013 Total 2023 3,000,000 1.08% 03/14/2023 $32,500.00 NA $3,000,000.00 $2,993,160.00 26.12 1.09% NA $- 6,840.00 $4,618.06 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM ( %)/ Modified cost basis ($)/ Market Mkt value ($)/ bond (MdylFitchlS &P) Quantity Coupon maturity Call price ($) Curr yield ( %) YTW (%) duration Unreal. g/I ($) price ($) Accr interest ($) port. V 10/25/2019 NA $151,452.25 0.88% 2.12 $11,428,499.01 NA $11,457,767.73 100% To 1.32 % 0.88 % $29,268.72 $23,695.96 $11,481,463.69 Report created on September 02, 2014 Page 5 of 6 Planning and Zoning Monthly Activities MonthNear: August, 2014 Activity Number Additional Info. Number of Planning Applications Reviewed and 3 Conditional Use Permit for Processed Construction of Pole & Fabric type temp. storage; Conditional Use Permit to allow Recyclable Material Collection in an 1 -1 Zoning Dist.; Conditional Use Permit for Multi- Family building at 875 Century Ave SW Number of Joint Planning Board Applications 2 Conditional Use Permit for Feedlot Reviewed and Processed (Buss); Conditional Use Permit for Feedlot Reiner /Scharfencam Number of Planning Commission Meetings 1 Conditional Use Permit for 1500 sq ft garage; Preliminary & Final Plat of White Hawk Village; Site Plan and Rezoning at 875 Century Ave SW; Ordinance Amending Zoning Districts to allow Brew Pubs and Tap Rooms Number of Joint Planning Meetings 0 Number of Zoning Reviews for Building Permits 15 (Compliance with Zoning Code) Number of Land Use Permits Issued -(Fences, 10 small sheds, patios, driveways, detached decks, etc.) Number of Zoning Review for Sign Permits 11 Number of Predevelopment/Pre Application 6 Meetings Number of Misc. Planning Meetings 26 Management Team - 4 Public Arts Commission Resource Allocation City Council - 2 Planning Staff Planning Staff Meeting Facilities Discussion (VFW Park) - 2 Computer Demo North High Dr. Property Century Court - 2 Marty Campion Buss Feedlot Reiner Feedlot 7454 th Ave Greens Development Greens R/W Utilities Joint Meeting JPB staff meeting Exsted Detachment Ed Homan & Sheldon Neis Number of Zoning Enforcement Cases 2 Number of Walk -In Customers Served 318 Site Visits 5 Century Ct, White Hawk Planning, Zoning and Building Dept. Monthly Report August 2014 Building Department Permit Activities A Commercial New B Commercial /Ind. Remodel 1370 Hwy 15 S - remodel for Starbucks $189,000; 19 Main St N - remodel $90,000; 720 Hwy 7 W - remodel $90,000 C New Single Family 1140 Bluejay Dr SW - $162,730; 795 Otter St SW - $256,038; 445 Adams St SE - $195,152 Other Building Inspection Activities Evergreen Meals served in August Week of 08/2013 08/2014 2013 Year to Date 2014 Year to Date Total Number Inspections 155 173 1205 1348 % of Inspections done within 24 HRS 100.0% 98.27% 99.76% 99.78% Total Number Plan Review 27 17 135 159 % of Plan Reviews completed in 21 Days 100% 100% 100% 100% Building Permits Issued by Type Number of Permits & Valuation Number of Permits & Valuation Year to Date Number Permits & Valuation Year to Date Number Permits & Valuation Commercial (new) 1 $1,750,000.00 0 $0.00 A 2 $1,788,400.00 2 $504,000.00 Commercial ( additions /remodels) 13 $1,214,600.00 6 $393,600.00 B 55 $2,656,201.00 38 $1,031,100.00 Total Commercial 14 $2,964,600.00 6 $393,600.00 57 $4,444,601.00 40 $1,535,100.00 Industrial (new) 0 $0.00 0 1 $1,200,000.00 Industrial (additions /remodels) 0 $0.00 0 $0.00 1 $20,000.00 1 $156,000.00 Total Industrial 0 $0.00 0 $0.00 2 $1,220,000.00 1 $156,000.00 Fire Sprinkling 1 $0.00 0 $0.00 6 $64,785.00 2 $6,350.00 New Residential 0 $0.00 2 $418,768.00 C 5 $921,254.00 11 $2,281,068.00 Residential misc (additions /remodels) 13 $67,000.00 13 $38,480.00 106 $761,650.00 100 $1,303,156.00 Set Fee permits (reside, reroof, window) 64 51 356 317 HRA Permits 1 $154,000.00 3 $223,152.00 2 $154,000.00 4 $256,699.00 Waived Fees (started in march) 5 $28,500.00 1 14 $1,759,345.00 Subtotal Building Permits 93 $3,185,600.00 801$1,102,500.00 534 $7,566,290.00 489 $7,297,718.00 Mechanical 15 $14,400.00 15 $167,729.00 103 $363,848.00 134 $1,394,732.00 HRA Mechanical 0 0 2 1 Plumbing 6 11 44 54 HRA Plumbing 1 0 2 0 Signs 3 $0.00 11 $0.00 70 $679.00 45 $31.00 Total Valuation 11181 $3,200,000.00 117 $1,270,229.00 755 $7,930,817.00 723 $8,692,481.00 *Set fees not included in valuation A Commercial New B Commercial /Ind. Remodel 1370 Hwy 15 S - remodel for Starbucks $189,000; 19 Main St N - remodel $90,000; 720 Hwy 7 W - remodel $90,000 C New Single Family 1140 Bluejay Dr SW - $162,730; 795 Otter St SW - $256,038; 445 Adams St SE - $195,152 Other Building Inspection Activities Evergreen Meals served in August Week of Hutchinson Park Towers Silver Lake Glencoe Brownton Stewart 8/1-8/2 48 15 11 23 0 8 8/3-8/9 224 167 55 122 74 50 8/10-8/161 346 113 54 121 47 71 8/17-8/23 254 124 68 135 42 68 8/24-8/31 308 68 77 133 49 55 Total 1180 487 265 534 212 252 Total Meals served in August 2930 Dates Closed MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, August 19, 2014 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. Meeting called to order at 5:31 by Chair Hantge. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED JULY 16, 2014 Motion by Norton, Second by Arndt. Motion passed. 4. PUBLIC HEARINGS A. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW THE CONSTRUCTION OF A 1500 SQ. FT. DETACHED GARAGE LOCATED AT 989 JEFFERSON ST. SE. Commissioner Norton read aloud the meeting rules for the public hearing portion of the meeting. Chair Hantge introduced Item A. Mr. Dan Jochum addressed the Commission. Mr. Jochum stated the proposed 37.5' x 40' garage is for personal use. Mr. Jochum stated the garage appears to meet all applicable regulations and standards. Staff recommends approval as the conditions required to be met for the issuing of a C.U.P. are met by this application. Mr. Jochum identified the 3 standards required to be met for issuing a C.U.P. Motion by Commissioner Arndt, 2nd by Commissioner Johnston to close public hearing at 5:35pm. Motion by Commissioner Norton, 2nd by Commissioner Arndt to approve with staff recommendations. Motion passes. Mr. Jochum noted this item will be on the City Council consent agenda. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject Minutes Hutchinson Planning Commission August 19, 2014 Page 2 B. CONSIDERATION OF PRELIMINARY AND FINAL PLAT OF WHITE HAWK VILLAGE SUBMITTED BY GUSTAV WURDELL, APPLICANT. Mr. Dan Jochum addressed the Commission and stated that staff felt the preliminary and final plats could be processed in conjunction with one another as this is a re -plat of a previously existing plat. Mr. Jochum stated the subject area was originally zoned as R -3 and planned for four -plex homes prior to the construction market decline in the early 2000s.The first phase of the proposed project is 5 single- family homes and the northerly portion of the plat is proposed to be an out lot with future single - family homes. Mr. Jochum stated utility services would be provided from the north side of the platted area of these lots as that is where they are currently available. Mr. Jochum stated that the min. lot size in the proposed Zoning District is 7200 sq. ft. The smallest proposed lot is 8000 sq. ft. and the largest is 11,500 sq. ft. Mr. Jochum stated he has corresponded with the Hutchinson Utilities Commission staff regarding provision of services and they are already in place. Mr. Jochum noted the Airport Zoning District abuts this proposed plat in the SW corner. Approximately 270 sq. ft of Lot 1 is in the Zone A and there is no building allowed in this area. Zone B extends along the southwesterly portion of Lot 1 and Out lot 1. Mr. Jochum stated, after consulting with Mr. John Olson, the restrictions of the Airport Zoning Districts will not prohibit the construction of single - family dwellings of a typical size. Mr. Jochum proposed the following condition be included were this item to be approved by the Commission: Lots located in Airport Zone B will not be allowed to have Accessory Structures and must comply with requirements of Airport Zoning District. Mr. Jochum stated Staff recommends approval. Staff believes the proposal meets conditions A -D and recommends approval with Conditions 1 -10 and the one Mr. Jochum proposed. Commissioner Johnston asked to verify location of available utilities. Commissioner Arndt asked if the existing street within plat was a private street. It is. Commissioner Arndt noted when the original plat of Ravenwood was developed there was a condition noted that there would be noise periodically from the nearby McLeod County Fairgrounds. Chair Hantge asked about drainage of this proposed plat. Minutes Hutchinson Planning Commission August 19, 2014 Page 3 Mr. Jochum stated the drainage from this area drains to the existing storm pond to the SW. Mr. John Olson affirmed this statement. Mr. Doug Hall of 1093 Blackbird Tr. SW — Mr. Hall noted that he is concerned about wildlife using the drainage pond being affected by drainage chemicals. Mr. Olson stated the function of the pond is to receive the volume of water from this area. It is a functional pond and the Public Works Dept. is experimenting with this pond currently by removing volunteer willows to promote growth of aquatic vegetation and is working on all City ponds to address these water quality issues. Jule Schroeder of 1031 Blackbird Trail, President of Ravenwood Homeowner's Association stated the Association's main concern is White Owl Trail which is a narrow, private street. The Association has made Blackbird Trail parking on one side only. If future homes of single family are planned for north side of plat, the Association would like to know if the street is planned to become a public street. Mr. Jochum said it would not be likely due to the narrow width of the existing street. Mr. Gustav Wurdell addressed the Commission regarding pollution, the development is required to create and implement at SWPP to protect the adjacent land and water. The road to the north is not being planned for anything yet due to the brief timeline of the proposed development. Access is available from the west and east streets. Motion by Commissioner Arndt and Second by Commissioner Johnston to close public hearing. Motion passed. Motion by Commissioner Arndt and Second by Commissioner Johnston to approve with staff recommendations and Mr. Jochum's proposal. Motion passed. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject C. CONSIDERATION OF A SITE PLAN AND A REZONING REQUEST FOR 875 CENTURY AVE. SW FROM AN R -3 TO AN R -4 ZONING DISTRICT. Mr. Jochum addressed the Commission. Mr. Jochum identified the location of the proposed project and surrounding land uses. Mr. Jochum provided an overview of the submitted site plan. 10 -2 story buildings proposed of 12 units each, to be phased in over time. Hopeful to start a couple of units in fall of the 2014. Each building is planned to be approximately 60' x 130'. Buildings meet all applicable setbacks and zoning requirements in the proposed R -4 Zoning District. The subject property is currently Zoned R -3 which allows up to 8 -unit buildings. 360,000 sq. ft of land are required for the proposed number of Minutes Hutchinson Planning Commission August 19, 2014 Page 4 units and this proposal provides 373,000 sq. ft. 20% of this project is proposed to be open space. 76,000 sq ft of open space is proposed and 75,000 sq. ft. is the minimum required. 309 parking spaces proposed, 300 required. 240 garage /driveways and 69 additional parking spaces throughout the project. Mr. Jochum noted that access to the site was a major concern with staff. 2 accesses at Sunset St. SW and 3 on Century Ave. SW are proposed. Staff proposes eliminating 1st access west of Century Ave. SW. Staff also recommends extending the south most internal street to the west to the next connector street. Staff recommends the north east corner should have an access provided as the internal fire access road on the north is too long of a dead end. These recommendations have been communicated to the project engineer. Mr. Jochum stated the proposed streets are 22' wide; Staff would like to establish a minimum of 24' wide internal streets. Commissioner Arndt asked if Keith St. SW would extend through the plat. Mr. Jochum stated the internal street would remain a private street that would not be an extension of Keith St. Chair Hantge asked about the anticipated phasing of the proposed project. Mr. Marty Campion, representing the applicant's engineering firm, stated utilities are serving the property from the SW so that would be the area of initial construction. Commissioner Arndt asked if the proposed pond would be an always wet pond, which way it would drain. Mr. John Olson stated the general drainage direction is to the east and goes to the fairground ditch. Mr. Jochum noted the provision of a play area to the west of the pond to keep it separate from the pond as a recreation area. Mr. Jochum noted all internal streets would be private and the maintenance of them will be the developer's responsibility Chair Hantge expressed concern with number of accesses onto Century Ave. Mr. Jochum noted staff has met with Hutchinson Police Department, the Hutchinson Fire Department, and the City Engineering Department regarding access points to the proposed development. Staff's consensus was the recommendation for removal of the eastern most access onto Century Ave. SW would be sufficient. Minutes Hutchinson Planning Commission August 19, 2014 Page 5 Burgess Gruendemann of 899 Cleveland Ave. asked about access onto Cleveland Ave. Mr. Jochum stated 3 access points onto Cleveland Ave. SW will be proposed with the additional one recommended by staff. With 309 parking spaces, it is not anticipated to have any significant out of development parking. Mr. Grundeman asked if there was consideration of current residents with the increase of traffic. Mr. Jochum stated with 7 access points, the traffic is expected to be distributed fairly evenly throughout the development. Mr. Grundeman asked the Commission to consider the desire of the residents on the corner of Sunset St. SW and Cleveland St. SW to have a berm or trees to separate the development. Mr. Jochum shared the proposed landscaping plan indicates that will be screening provided between the two types of residences. Commissioner Johnston asked if there is any proposed fencing proposed along property lines. Mr. Jochum stated there is not and natural screening is used much more now. Mr. Campion stated he has met with Mr. Jochum and Kent Exner and the developer is planning to comply with staff recommendations of access modifications. Commissioner Arndt clarified that the proposed buildings will be same as the apartment properties to the immediate east of the proposed project. Ms. Judy Peterson of 1216 Sunset ST. — Expressed concern for access behind her property. Does City have access to rear yard space? Mr. Jochum noted there is a drainage and utility easement currently in place. The proposed development will also be required to have a 5 foot utility easement. Bruce Naustdal of 1175 Dale St. SW — Asked Mr. John Olson about proposed pond. Mr. Olson clarified that drainage will not be going to the existing Ravenwood drainage pond. Mr. Naustdal also expressed concern about the provision of green space within the proposed development. Mr. Naustdal noted that the City encouraged him to donate green space in past development projects he was a part of and is wondering if this is no longer a concern. Minutes Hutchinson Planning Commission August 19, 2014 Page 6 Mr. Jochum reiterated that there is a requirement for the project to provide 20% minimum of open space and Parks and Playground Fee. No policy change for green space in developments. This proposal complies with the requirements. Mr. Naustdal asked to confirm that one of the entrances off of Century would be eliminated. Joyce Krycil of 1120 Keith St. noted the volume of traffic on Keith St. should be a consideration. Ms. Krycil anticipates an increase in traffic and an increase in children to be a concern. Ms. Krycil also is concerned about City taxes being paid in a timely manner as she has heard the owner is regularly delinquent in property tax payment. Will street runoff be contained in the on -site pond. Not happy about all of the accesses on Keith St. SW and Cleveland St. SW. Mr. Jochum site stated drainage will go to pond. Chair Hantge asked Mr. Campion to approach the podium to ask if he was involved in the previous developments by Century Court as the Chair is concerned with the number of accesses onto Sunset St. SW, Keith St. SW, and Century Ave. SW being equal. Mr. Campion stated the intent is to minimize internal traffic circling and getting residents to outer streets as efficiently as possible. Mr. Jochum stated that during the Staff Meeting, discussion surrounded access proximity to intersection of Sunset St. SW and Century Ave. SW. Mr. Kent Exner noted in Staff Meeting that traffic congestion is not significant currently on the existing streets and believed the proposed flows are accessible. Chair Hantge asked if there are traffic problems in the First Phase that are being addressed in this proposal. Staff was unaware of current traffic problems in the existing Century Court development. Mr. Campion noted that current traffic design parameters are different than original phase due to emergency service accesses. Mr. Jochum addressed the Commission stating the proposed project will be 14 units per acre. Project is relatively consistent with Comprehensive Plan. The existing property to east of Sunset St. SW is Zoned R -3 even though it is also developed with 12 -unit buildings. Staff recommends approval with the 12 attached recommendations. Motion by Commissioner Norton and Second by Commissioner Arndt to close the public hearing. Motion passed. Minutes Hutchinson Planning Commission August 19, 2014 Page 7 Motion by Commissioner Arndt and Second by Commissioner Norton to approve the rezoning with staff recommendations. Motion passed. Mr. Jochum noted public hearing is not required for Site Plan Approval. Motion by Commissioner Johnston and Second by Commissioner Arndt to approve Site Plan. Motion passes. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject D. CONSIDERATION TO AMEND THE ZONING ORDINANCE TO ESTABLISH MICRO - BREWERIES AND TAP ROOMS AS CONDITIONAL USES WITHIN COMMERCIAL AND INDUSTRIAL ZONING DISTRICTS. Mr. Dan Jochum addressed the Commission. The proposed ordinance amendment is for the purpose of adding Tap Rooms and Brew Pubs to the C -2 through C -5 Zoning Districts. Mr. Jochum stated a Tap Room is a place where there is a brewery and a retail facility. A Brew Pub is a place where there is a brewery and a restaurant. Mr. Jochum recommended allowing Tap Rooms in the I -1 Zoning Districts but not Brew Pubs. Chair Hantge asked about Tap Rooms in I -1. Some communities permit bringing in food into Tap Rooms in I -1 districts. Administrator Marc Sebora stated the distinction between Tap Room and Brew Pubs is based upon volume of production. Chair Hantge asked if this was discussed by the EDA. Mr. Sebora noted there is no food requirement with brewers unless they are a brew pub. Chair Hantge wondered if food delivery trucks would be desirable in I -1 zoning districts. Mr. Jochum stated the original discussion in the development of the proposed language was that Industrial areas were included to allow a space for expansion of production space for a growing Tap Room brewery. Mr. Jochum noted there is currently nothing prohibiting food vendors from being on site in Industrial Zoning Districts. Chair Hantge would like to know if the EDA is in agreement with permitting this use in the Industrial park area. Minutes Hutchinson Planning Commission August 19, 2014 Page 8 Chair Hantge noted the Industrial Park was intended to be an Energy Park. Is this type of business desirable in the Park? Motion by Commissioner Arndt and Second by Commissioner Norton moved to close the public hearing. Motion passed. Motion by Commissioner Norton to not include the I -1 Zoning District and Seconded by Commissioner Johnston. Motion passed. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject 5. UNFINISHED BUSINESS None 6. NEW BUSINESS None. 7. COMMUNICATION FROM STAFF A. Upcoming Meetings Mr. Jochum noted 2 C.U.P. applications have been received for the October Planning Commission Meeting. Mr. Jochum noted the MN Planning Conference will be held the first week in October Wednesday through Friday and would like to know if any of the Commissioners are interested in attending. John Olson invited the Commission members to an open house on September 18 from 5:30 pm — 7:00 pm in the City Center Council Chambers, for the purpose of updating the Airport Master Plan. The open house will consider "what ifs" to address future development at the airport. Mr. Jochum noted there has recently been a significant increase in PBZ activity with residential, national retailers, and multi - family developments. 8. ADJOURNMENT 9. Motion by Commissioner Norton and Second by Commissioner Arndt to adiourn meeting. Motion passed. 74 July 28, 2014 Pam Dille Hutchinson Public Library 50 Hassan Street Hutchinson, MN 55350 Dear Pam, The New ST ViewScan II is ST Imaging's 4th generation of Digital Microfilm Viewer - Scanner Systems designed for the Library and Genealogical markets. The ST ViewScan II Digital Microfilm Viewer - Scanner utilizes the latest in digital technology and high end camera optics to enhance and simplify viewing, printing and digitizing microfilm images. 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No need to purchase a new scanner when technology changes. Only upgrade the new part, not the entire product. * ** 6 Automatic Image Straightening * ** a' Target Area Enhancement — Gives the User the ability to enhance one or multiple areas of an image without affecting the entire image. This is great for cleaning up pictures without affecting text. New Software Enhancements Recently Added! a "Right Click" shortcuts to quickly print, scan or save cropped area * ** One button "Save to USB Flash Drive " * ** Advanced Save to multiple types of email * ** Save Images Directly to Google Drive * ** Save Images Directly to FamilySearch * ** 6 Save Images Directly to OCLC /Iliad /Oddysey * ** 6 Easier to Learn Multiple User Profiles a ST Annotation""" and ST ClipMerge"m' 8 Print Preview * ** Features available only to the ST ViewScan System. A detailed proposal is included for your review. I am certain the ST ViewScan Digital Microfilm Viewer - Scanner System will serve your microfilm look up, retrieval, and scanning needs for many years. Please call me at 888 - 932 -9002 if you have any additional questions. Sincerely, Xed P.. Yi(kowski Neil P. Milkowski Clear Image Solutions, LLC An Authorized ST Imaging Dealer p4dComp"n& tow + - tenoned Q) oo co a 10866 Andes Circle, Inver Grove Heights, MN 55077 Phone: 888 - 932 -9002 5439 Oakwood Avenue, Stevens Point, WI 54482 Phone: 888 - 932 -9002 Investment Proposal Created Especially for Hutchinson Public Library July 28, 2014 ST ViewScan® ll Dkiiial Microform Scanner Svstem Includes: 6 High Resolution Scanning Optics — 256 Grayscale Capture '6 LED Light Source (Lifetime Lamp Warranty) Bi -Modal (Handles Both Negative And Positive Film) ,,' 7X -105X Optical Zoom — Base System Now Handles Ultrafiche 6 Automatic and Manual Focus 6 On- Screen Film Movement Controls & Physical Push -Button Controls On Film Carrier ,6 One Second Image Capture Speed at 300 dpi Captures 16/35mm Roll Film, Microfiche, Ultrafiche and Opaque Microcards 6 Real Time Video Viewing On PC Monitor — Refreshes @ 30 Frames Per Second a Motorized Combination Microfiche /Roll Film Carrier (For Open Spool 16 or 35mm Film) a' EASY to USE - Intuitive Microsoft Word -Based ST ViewScan Image Capture Software 6 Remote Film Access From Any PC In The World Via Internet Connection 6 USB Port — Conveniently Mounted on the Front of the Scanner One button "Save to USB Flash Drive" ' Advanced Save to Multiple Types of Email Burn to CD Feature Save to Google Drive, DropBox, FamilySearch & OCLC Illiad /Oddysey All Cables & FireWire Card Professional On -Site Installation & Software Training 1 Year Manufacturer's Warranty ** *(See Page 5 For Special Offer) System Total ST ViewScan H System - Options $9,995.00 24" LCD WideScreen Monitor & Heavy Duty "Pivot To Portrait" Stand $500.00 FREE with ViewScan Purchase* — if Ordered by October 15, 2014 *(See Page 5 For Special Offer) ST OCR Plus® Software Package $795.00 OCR Images Scanned By ViewScan Software, Create Searchable PDF images Plus Twain /USB Scanner Support and Post -Scan Edit Features. * ** *(See Page 5 For Special % Price Offer) ST Cruise Control Max® Software $2,995.00 M Automatically Scans 16mm and 35mm Rolls of Microfilm O C64 10866 Andes Circle, Inver Grove Heights, MN 55077 Phone: 888 - 932 -9002 5439 Oakwood Avenue, Stevens Point, WI 64482 Phone: 888 - 932 -9002 Investment Proposal Created Especially for Hutchinson Public Library July 28, 2014 Maintenance Agreements for ST ViewScan 11 System — Optional 1 st Year On -Site Maintenance Agreement $835.00 Second Business Day — Response Time 2 Years On -Site Maintenance Agreement $1,430.00 6 Second Business Day — Response Time 3 Years On -Site Maintenance Agreement $1,985.00 o Second Business Day — Response Time 4 Years On -Site Maintenance Agreement $2,608.00 `o Second Business Day — Response Time 5 Years On -Site Maintenance Agreement $3,230.00 o Second Business Day — Response Time Terms and Conditions Payment Terms: Net 20 Days — from the Date of Shipment Delivery: 10 -14 Days —After Receiving Your Order Shipping Charge: Origin — Shipping Cost will be added to the Involoe =- $95,Oa Warranty Period: 2 Years from the Date of Shipment (During the warranty period, service is provided by ST Imaging with Depot Repair. On -Site Coverage is not included.) Prices quoted are firm through October 15, 2014, and thereafter are null and void. a� o� a 10866 Andes Circle, Inver Grove Heights, MN 55077 Phone: 888 - 932 -9002 5439 Oakwood Avenue, Stevens Point, Wl 54482 Phone: 888 - 932 -9002 Investment Proposal Created Especially for Hutchinson Public Libra July 28, 2014 Proposed Configuration New ST ViewScan ll Digital Microform System Total $9,995.00 Shipping 95.00 Total New ST ViewScan II System With Shipping & Installation $102090.00 Less: Special ST ViewScan ll Intro Discount * *($1,100.00) Total New ST ViewScan lI Digital Microform System Total $8,990.00 With Specially Priced ST OCR Plus® Option ST OCR Plus® For Film & Non Film Optical Character Recog * * ** + $395.00 ST ViewScan 11 Digital Microform System With ST OCR Plus® $9,385.00 * * * ** Special MHS Legacy Grant Offers * * * ** *Order your ST ViewScan Digital Microform Scanning System by 10/15/2014, and receive a FREE 24" LCD Monitor - - - - -A $500 Value-- - - -!!! * *Order your ST ViewScan Digital Microform Scanning Syst by 10/15/2014, and receive An $1,100 Intro Discount! ** *Order your ST ViewScan II Digital Microform Scanning Syst by 10/15/2014, & receive A Free Warranty Uplift From 90 Days To 1 Year An $835 Value! * ** *Order your ST ViewScan 11 Dig Microform Scanning Syst by 10/15/2014, and purchase OCR Plus for $3951--A $400 Discount! 1w, a 10866 Andes Circle, Inver Grove Heights, MN 55077 Phone: 888- 932 -9002 6439 Oakwood Avenue, Stevens Point, WI 54482 Phone: 888 - 932 -9002 M1 m Irf 9 ST ViewScan If Digital Reader Printer Viewer Scanner System & ST Companion Digital Flatbed Scanner System PC System Requirements: Item Specifications Expansion Slot 1 PC" Expansion Slot To Accommodate IEEE1394 FireWire Card (Included With ST ViewScan System) Memory 4GB RAM OR More Highly Recommended CPU Processor Intel® Core Duo M 2.4+ GHz Or Higher (15, U Or Higher Preferable Video Card 1024MB (1GB) Discrete Graphics (NVIDIA GeForce X Series Is Recommended Operating System Windows 7 32 & 64 Bit), Windows 8 USB 2.0 Ports 1 4 or more ports on rear of PC &C a a 10866 Andes Circle, Inver Grove Heights, MN 55077 Phone: 888 - 932 -9002 5439 Oakwood Avenue, Stevens Point, WI 54482 Phone: 888 -932 -9002