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cp09-08-2015HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 8, 2015 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — River of Hope 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 14455 — Resolution Accepting Donation from Glen Kurth PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council on items not on the current agenda. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 25, 2015 (b) Workshop of August 25, 2015 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Resolution No. 14452 — Resolution to Sell at Auction Unclaimed Bicycles (b) Consideration for Approval of Resolution No. 14454 — Resolution Authorizing Donation of Unclaimed Bicycles (c) Reappointment of John Hassinger to the Bicycle -Pedestrian Advisory Committee to August 2018 (d) Appointment of Robert Hantge to Hutchinson Utilities Commission to December 2020 (e) Consideration for Approval of Open Streets Event on September 26, 2015 (f) Consideration for Approval of Resolution No. 14458 — Resolution Providing Authorization to Enter into Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies CITY COUNCIL AGENDA SEPTEMBER 8, 2015 (g) Consideration for Approval of Issuing Short -Term Gambling License to Upper Midwest Allis Chalmers on July 22-24, 2016, at McLeod County Fairgrounds (h) Consideration for Approval of Improvement Project Change Orders - Letting No. 1, Project No. 15-01 — Change Order No. 2 - Letting No. 10, Project No. 15-10 — Change Order No. 2 (i) Claims, Appropriations and Contract Payments PUBLIC HEARINGS (6:00 P.M.) — NONE 8. PROPOSED ADOPTION OF THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ADOPTION OF THE MODIFICATION TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NOS. 5, 6, 7, 8, 11, 4-13, and 4-14 �a) Motion to Close Public Hearing b) Approve/Deny Resolution No. 14451 — Resolution Adopting Modification to the Development Program for Development District No. 4 and the Proposed Adoption of the Modification of the Tax Increment Financing Plans for Tax Increment Financing District Nos. 5, 6, 7,8, 11, 4-13 and 4-14 purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS 9. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-744 - REVISIONS TO CHAPTER 112 — LIQUOR REGULATIONS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-745 — AMENDING CHAPTER 73 TO ADD SECTION 73.18 — REGULATING SPECIAL VEHICLES ON ROADWAYS 11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-746 — REPEALING SECTIONS 73.15 & 73.16 — ATVS AND GOLF CARTS NEW BUSINESS 12. APPROVE/DENY RESOLUTION NO. 14456 - RESOLUTION AUTHORIZING ISSUANCE OF $2,240,000 GENERAL OBLIGATION BONDS, SERIES 2015A 13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 15-0747 - AN ORDINANCE GRANTING A FRANCHISE TO NU -TELECOM TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE TELEVISION SYSTEM IN THE CITY OF HUTCHINSON; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE 2 CITY COUNCIL AGENDA SEPTEMBER 8, 2015 VIOLATION OF ITS PROVISIONS (WANE FIRST READING AND SET SECOND READING AND PUBLIC HEARING FOR SEPTEMBER 22, 2015) 14. APPROVE/DENY RESOLUTION NO. 14457 — RESOLUTION TO AUTHORIZE HRA ADMINISTRATION OF AVAILABLE FUNDS FROM HOUSING TIF DISTRICT 8 PROJECT/PROGRAMS 15. APPROVE/DENY ITEMS FOR WASTEWATER TREATMENT FACILITY FORCEMAIN BYPASS IMPVOEMENTS PROJECT (LETTING NO. 13, PROJECT NO. 15-13) (a) Resolution No. 14461 — Ordering Preparation of Report on Improvement (b) Resolution No. 14462 — Receiving Report and Waiving Hearing (c) Resolution No. 14463 — Ordering Improvement and Preparation of Plans & Specifications (d) Resolution No. 14464 — Approving Plans & Specifications and Ordering Advertisement for Bids 16. APPROVE/DENY SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2016 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14459) 17. APPROVE/DENY SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2016 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14460) 18. APPROVE/DENY SETTING CITY OF HUTCHINSON 2016 GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT RESOLUTION NO. 14466) 19. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING DATE GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 20. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Weed Notices Monthly Report for August 2015 MISCELLANEOUS 21. STAFF UPDATES 22. COUNCIL/MAYOR UPDATE ADJOURNMENT HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Recognition of Cash Donation from Glen Kurth Department: Finance LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Recognition of Gifts/Donations Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As was previously reported to the City Council in June, Glen Kurth has graciously decided to fund the purchase of the new scoreboard at VMF baseball field. The total cost is $26,846 which the City has recently paid from the Public Sites Fund. Mr. Kurth is donating 50%, or $13,423, at this time and will donate the remaining 50% in March 2016. The electrical work needed will be funded by the Hutchinson Huskies organization. Parks department labor will be utilized to remove the existing scoreboard and install the new scoreboard. BOARD ACTION REQUESTED: Recognize the cash donation of $13,423 from Glen Clancy Kurth for the new scoreboard at VMF. 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: CITY OF HUTCHINSON RESOLUTION NO. 14455 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons and entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Glen Kurth $ 13,423.00 8/27/2015 WHEREAS, all such donations have been contributed to the new scoreboard installed at Veteran's Memorial Field in 2015. WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donations described above are hereby accepted by the City of Hutchinson. Adopted by the City Council this 8th day of September 2015. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 25, 2015 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER— 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Czmowski, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Seventh Day Adventist 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (]his is an opportunity or members of the public to address the City Council on items not on the current agenda. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance ofthe meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals.) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 11, 2015 (b) Workshop of August 11, 2015 Motion by Arndt, second by Lofdahl, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Issuing Short -Term Gambling License to Crow River Cutters on February 5 & 6, 2016 at McLeod County Fairgrounds (b) Consideration for Approval of Issuing Parade Permit to Hutchinson Student Advisory Council on September 25, 2015, for Homecoming Parade (c) Claims, Appropriations and Contract Payments — Register A Motion by Arndt, second by Czmowski, to approve Consent Agenda I. Motion carried unanimously. APPROVAL OF CONSENT AGENDA II CITY COUNCIL MINUTES AUGUST 25, 2015 (a) Claims, Appropriations and Contract Payments — Register B Motion by Lofdahl, second by Christensen, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS (6:00 P.M.) — NONE (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY MCLEOD COUNTY HISTORICAL PRESERVATION FUNDING PROJECTS — LORI PICKELL-STANGEL Lori Pickell-Stangel, McLeod County Historical Society, presented before the Council. Ms. Pickell- Stangel explained to the Council that a new 501(c)(3) has been established between Historic Hutchinson and the Glencoe Historical Society along with the McLeod County Historical Society to create a partnership amongst the entities to use shared resources. The group, on behalf of Historic Hutchinson, has established a list of projects for 2016 and is asking for financial assistance from the City of Hutchinson to contribute towards researching and writing grants for the projects. These projects include historic signage for homes and city landmarks with built in QR code videos; research of the historic graffiti in the Hutchinson Depot; preservation and interpretation of the Hutchinson Depot graffiti. The group is asking for a contribution of $6,000 from the City of Hutchinson. McLeod County has committed $6725 and the group is requesting $6000 from the City of Glencoe. Matt Jaunich, City Administrator, noted he has concerns with not knowing specifically what the City's funds will be going towards with the McLeod County Historical Preservation Committee. Ms. Pickell-Stangel attempted to clarify that the funds will be going towards research for grant writing for preservation projects specific for Hutchinson. Mr. Jaunich suggested a way to better define what the funds will be going towards specifically. Council Member Christensen suggested that Historic Hutchinson identify at least one project that the funds will be proposed for. Motion by Czmowski, second by Lofdahl, to table this item until more information can be gathered. Motion carried unanimously. 10. APPROVE/DENY NUTELECOM' S PROPOSAL FOR PUBLIC WI -FI ACCESS IN CITY PARKS AND PUBLIC AREAS Matt Jaunich, City Administrator, introduced Kathy Lund of NuTelecom. Ms. Lund explained that NuTelecom is proposing to provide wi-fi access to parks and amenities which appeal to residents and visitors with a wide range of interests. The service would be available during peak usage seasons. The public service offering would be free to anyone in the park within range of the access point. The equipment would be partitioned so NuTelecom customers could sign in as a secure user, 2 CITY COUNCIL MINUTES AUGUST 25, 2015 a non -customer could sign in and pay for an advanced offering, or other possible partitioned options could be created. NUTelecom would be responsible for placing the facilities, purchasing and installing the equipment and the cost to provide the service. In exchange for providing the public WiFi service, NuTelecom is asking the City to allow them to mount their equipment on City property and the ability to utilize nearby power sources. The plan would be to initiate the project in Library Square. Tim Elliott, NuTelecom, presented before the Council. Mr. Elliott noted that NuTelecom will not guarantee that data is secured using the service. The number of radios will be based on the number of users. NuTelecom is proposing to install 4-6 pieces of equipment in Library Square. The routers are being proposed to be placed on light poles. Mr. Jaunich noted that staff has met with NuTelecom and staff is favorable to the idea, however the City does not have an ordinance in place to address a project such as this. Mr. Jaunich noted at this time for a project like this a franchise agreement would need to be put in place for use of public property. Staff also has some concerns with the use of the fiber glass light poles and keeping their integrity. Council Member Lofdahl for clarification on free services versus paid services. Mr. Elliott explained that basic service will be free to users, however if a user wants increased service, there would be a charge for that. Mr. Elliott also explained that usage can be reported/tracked on number of users and such. Mr. Jaunich noted that staff has some concerns with other requests coming in from other providers who want to provide the same service and multiple pieces of equipment on City property. Kent Exner, City Engineer, noted he has some concerns with the equipment being placed on fiberglass poles and the wear on the poles. Mr. Exner also noted that this concept is very new to the City and he explained that the City established a telecommunications ordinance several years ago to address telecommunications companies placing equipment on water towers. Mr. Exner believes that some time should be taken in creating plans and policies for this topic. Ms. Lund asked the Council what other options might be available to make this project work. Staff noted that stand-alone poles are always an option. Council Member Lofdahl noted that the equipment could most likely be attached to private buildings as well. Motion by Lofdahl, second by Forcier, to table this item to gather more information. Motion carried unanimously. 11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 15-744 - REVISIONS TO CHAPTER 112 — LIQUOR REGULATIONS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that as a follow-up to the workshop held prior to the last Council meeting, there are several changes proposed to the City's liquor ordinance. These changes include: revising the restaurant definition to reduce the seating requirement from 85 to 30 guests; revising the hours of sales to begin at 8:00 a.m. on Sundays instead of 10:00 a.m.; adding a section to authorize liquor sales at community festivals; revising definitions to include a definition of mi crodi still ery; and adding a section to include CITY COUNCIL MINUTES AUGUST 25, 2015 microdistillery cocktail room licenses. Mr. Sebora noted that if microdistilleries are added to the liquor code, the City's zoning code will need to be amended to include them in the appropriate zoning district. Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 15-744, revisions to Chapter 112 — Liquor Regulations. Motion carried unanimously. 12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 15-745 — AMENDING CHAPTER 73 TO ADD SECTION 73.18 — REGULATING SPECIAL VEHICLES ON ROADWAYS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that as part of the codification process, it was brought to staff s attention that the City's ATV ordinance needed to be updated. State law authorizes cities the power to allow the operation of ATVs, golf carts and UTVs on city streets. If a city does so, they must be regulated via permit. Council Member Arndt suggested the City imposing a lower speed limit on ATVs being operated on city streets. Mr. Sebora explained that the City cannot impose regulations more strict than state law. Mr. Jaunich noted that the City has issued permits previously to golf carts with a $5.00 permit fee. The Council will need to consider whether or not a fee should be established ATV and UTV permits. Motion by Czmowski, second by Christensen, to approve first reading of Ordinance No. 15-745, amending Chapter 73 to add Section 73.18 — Regulating Special Vehicles on Roadways. Motion carried unanimously. 13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 15-746 — REPEALING SECTIONS 73.15 & 73.16 — AT V S AND GOLF CARTS Marc Sebora, City Attorney, explained that with the approval of Ordinance No. 15-745, the current ordinance is being proposed to be repealed as these sections are included in the new proposed ordinance. Motion by Lofdahl, second by Christensen, to approve first reading of Ordinance No. 15-746 — repealing Sections 73.15 & 73.16 — ATVs and golf carts. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 14453 — RESOLUTON FOR CREATING A PRIORITIZED BRIDGE REPLACEMENT LIST (2ND AVENUE SE BRIDGE) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the State requires the City establish a bridge replapement list to request state bridge funds (grant funding). The proposed Resolution outlines the 2 Avenue SE bridge as being a deficient and high priorty bridge that the City would like to address in the near future. Only construction costs are eligible for this funding. The project is estimated between $824,000-$932,000. Motion by Arndt, second by Czmowski, to approve Resolution No. 14453. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 15. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS .19 CITY COUNCIL MINUTES AUGUST 25, 2015 �a) Weed Notices Monthly Report for July 2015 b) Public Library Board Minutes from July 27, 2015 �c) Bicycle -Pedestrian Advisory Board Minutes from February through June, 2015 d) Hutchinson Housing & Redevelopment Authority Board Minutes from July 21, 2015, and Annual Meeting from August 19, 2014 (e) City of Hutchinson Financial Report and Investment Report for July 2015 MISCELLANEOUS 16. STAFF UPDATES Kent Exner — Mr. Exner provided an update on City projects — 2nd Avenue, Golf Course Road, Shady Ridge Road, Hwy 15/Main Street, South Grade Road, cemetery columbaria structure, airport, solar site work, Luce Line Trail. Matt Jaunich — Mr. Jaunich explained that staff is working on negotiating a contract with West Central Sanitation for refuse hauling services. Mr. Jaunich clarified that although West Central Sanitation's proposal was less than Waste Management's, Waste Manauement's proposal was hi her than it is currently. Ultimately, West Central Sanitation's proposal will be $20,000 less annually, however at this time refuse rates will not be adjusted. Mr. Jaunich also commented on the requests from Historic Hutchinson/McLeod County Historic Preservation and the NuTelecom proposal. Mr. Jaunich asked council members to provide him information as to clarifications they would like staff to research. Mr. Jaunich also followed up with Council Member Arndt's comments on the indoor aquatic center. Arndt noted when he spoke with aquatic personnel at the LMC conference, they stated that attendance would have to be 20,000 to cover costs. Mr. Jaunich also noted that once a plan is defined, sponsorships will be sought for specific pieces of the aquatic center. 17. COUNCIL/MAYOR UPDATE John Lofdahl — Council Member Lofdahl noted that a resident had asked if alleys could be graded shortly after a rainfall. Exner noted that most of the alleys need to be refrained from when too wet because of their softness. Bill Arndt— Council Member Arndt explained the comments and questions he has received on the new aquatic center — one being having an indoor facility. Matt Jaunich explained that with the current, outdoor project, it can be funded in-house. If a larger project is contemplated, bonding dollars will need to be used. In addition, costs of between $200,0004300,000 would most likely be needed to operate an indoor facility annually. Gary Forcier — Mayor Forcier noted that with the pool concept, infrastructure will be put in place for future additions. Mayor Forcier also noted that he will be holding another open meeting in the near future, most likely on a Monday night. ADJOURNMENT Motion by Christensen, second by Arndt, to adjourn at 7:20 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL REVIEW OF 2016 PRELIMINARY BUDGET MINUTES TUESDAY, AUGUST 25, 2015 AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary Christensen, Bill Arndt, Chad Czmowski and John Lofdahl. Others present were: Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer REVIEW OF 2016 PRELIMINARY BUDGET 2. 2016 Preliminary Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's agenda will include a review of state budget impact, preliminary levy and past levies, general fund revenue and expenses, proposed staff changes, enterprise funds revenue and expenses report on "public events" and Mayor/Council salaries and next steps that need to be taken. Mr. Jaunich also reviewed the City's mission statement, the six core areas of focus and five long-term goals the Council should consider every budget season. Those goals include: 1. What should future tax levies look like? 2. What levels of services should the City perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of investment in technology and equipment, and what period of payback is acceptable? 5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for them? Mr. Jaunich reminded the Council that the City Charter requires staff to submit an annual budget by September 1St. The City Charter also requires the Council to act on the preliminary budget by the first regular meeting in September and state law requires it by September 30. After the levy is set, it can only be lowered, not raised. The Council will need to set the date and time of its Truth - in -Taxation hearing and the budget will be adopted in mid -late December. Mr. Jaunich reported that there were no significant changes imposed by the State Legislature that should affect the City's 2016 budget. The State is expected to add to its budget surplus having revenues exceeding forecasts by $555 million. The city is expected to see a slight increase in LGA in 2016 with unallotments and levy limits not expected to be in place in the near future. Staff is proposing to increase the tax levy by 2.4% which would average a 1.5% increase since 2010. Mr. Jaunich provided an overview of past tax levies with percent change breakdowns and changes. Mr. Jaunich and Andy Reid, Finance Director, provided the Council three options for the Council to consider for the preliminary tax level. The first option would hold both levies flat; the second option would increase the general fund levy by 3% and the debt levy by 1%; the third option would increase the general fund levy by 5% and the debt levy by 1%. All of these options show annual dollar increases from $18-$48 per year on a median home value of $135,000. Mr. Jaunich reviewed general fund revenues and how they are proposed to be increased and decreased, again with an average of a 2.4% increase. The general fund revenues do not include any "new" revenue outside of the 3% tax levy increase; the general fund revenues include the restoration of the transfer from HUC; expecting most of the other revenue sources to remain relatively flat; no significant change in transfer -ins from enterprise funds; the 2016 budget does include a $119,000 transfer from the City's self-insurance fund to help cover HSA contribution costs; a I% tax levy increase is equivalent to $44,794. General fund expenses are proposed to increase 2.9%. The largest impact on the city's general fund expenses is associated with wages and benefits (includes costs for HSA contributions and policy holiday pay which were previously not budgeted, includes costs to have Rec Center open five days a week, includes costs for a new park maintenance equipment operator — moving forestry to public works, includes a 5% vacancy factor in the police department). The general fund expenses also include costs for a job compensation study with inflation, elections, GIS expenses and miscellaneous making up the rest. The preliminary budget is not balanced by 1.5%. Mr. Jaunich explained that the current natural resource specialist has resigned and the City is proposing to make some changes. Dolf Moon, PRCE Director, presented before the Council. Staff is proposing to reinstitute the Forester position that was eliminated three years ago when the City's Forester retired. However, over those three years, it has become apparent that a Forester is a necessity to the City. Mr. Moon outlined the various reasons for the recommendation to reinstitute the Forester position. This scenario has been discussed for well over a year, however the timing seems right at this time with a vacancy in the department. Mr. Jaunich also noted that staff is proposing to create a Facilities Supervisor position. This position would be responsible for the management and supervision of the day-to-day building functions of all sites. The position would be responsible for the overall maintenance, repair and custodial care of 20 facilities. The position would be paid for by enterprise funds and a portion of the $750,000 earmarked facilities money. Andy Reid, Finance Director, reviewed the enterprise funds and their proposed increases/reductions. Mr. Jaunich noted that the liquor fund continues to do well. Creekside assumes a reduced production model focusing on higher margin products. There will be no rate changes in refuse fund. There will be no rate increases in water and sewer funds. There will be a slight rate increase in the stormwater fund. There will be no significant changes in transfers to the general fund from the enterprise funds. Mr. Jaunich reminded the Council of the Capital Improvement Plan which includes $9.42 million for 2016 and includes money for the aquatic center. There are no significant staffing cuts and/or changes in services. There are no new programs/services proposing to be added. Staffing costs and capital needs are the biggest "driver" of the City's budget. Fund balances continue to remain healthy. Mr. Jaunich reviewed staffing levels over the last 10 years and also reviewed the debt management plan and the projected debt levy. Mr. Jaunich provided a report of city costs for "public events". Staff's best estimate is the City spends approximately $30,000 per year assisting with various public events — ranging from the Water Carnival, RiverSong, Arts & Crafts, parades, Chamber events, etc. Lastly, Mr. Jaunich provided a report on Mayor/Council salaries and how they relate to other regional centers. Hutchinson's Council/Mayor salaries are the low end amongst other regional centers. Council asked staff to include a salary increase for the Council in the 2016 budget somewhere in the mid-range of what other regional centers offer their Councils. Council Member Czmowski asked staff to look at the costs associated with bringing ice back to Park Elementary. Council Member Arndt asked about costs associated with having motor vehicle being open five days per week as opposed to four days per week. Mayor Forcier asked staff to look at duplicate services between the City and the County. Mr. Jaunich asked the Council their comfort level with the preliminary budget proposal of a 2.4% tax levy increase. General discussion was held regarding the Council's salaries and other boards/commissions members. Council Member Arndt asked if perhaps the City Council and the McLeod County Board of Commissioners should meet to discuss any potential partnerships. Mr. Jaunich agreed, however he felt perhaps the city should have the best idea on its financial position and the frame of its 2016 general fund budget. Mr. Jaunich will continue to try to arrange a meeting. General discussion was held regarding funding options for large equipment/vehicles. Mr. Jaunich noted that a plan will be put together on how to fund large equipment/vehicles. Council Member Lofdahl suggested putting more money into street improvement projects. Discussion was held on the rising costs of construction. Currently, the City spends approximately $3-4 million per year. 3. Adjournment Motion by Arndt, second by Lofdahl, to adjourn the workshop at 5:15 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution for sale of unclaimed bicycles to be sold at auction Department: Police LICENSE SECTION Meeting Date: 9/8/2015 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 AT AUCTION Unclaimed Bicycles BOARD ACTION REQUESTED: The Hutchinson Police Department recommends approval of resolution to sell unclaimed bicycles 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: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION TO SELL AT AUCTION Unclaimed Property Resolution No. 14452 WHEREAS, the Hutchinson Police Department has accumulated various unclaimed items. AND WHEREAS, the Hutchinson City Code provides pursuant to Section 91, Subdivision 3, Paragraph C for the sale at auction of unclaimed property. AND WHEREAS, the unclaimed property, at the time of auction, will have been in the possession of the police services for more than thirty (30) 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 unclaimed items identified on "Attachment A." Items to be sold through Fahey Auction Center. Adopted by the City Council this 8th day of September, 2015. Mayor City Administrator Attachment A Page 1 Case Number Item Description 14015157 16" Hotwheels Bicycle 14016434 24" Magna Excitor Bicycle 14017004 Men's Iron Horse Bicycle 14017105 Men's Murray Mountain Scene Bicycle 15003177 26" Women's Schwinn Bicycle 15004503 26" Men's Huffy Avalanche Bicycle 15005035 26" Women's Tiara Bicycle 15005696 16" Next Surge Bicycle 15005696 20" Free Agent Bicycle 15006424 26" Next Power Climber Bicycle 15006907 Women's Eddie Bauer Bicycle 15007521 Men's Mongoose Bicycle 15007830 Men's Murray Ultra Terrain Bicycle 15007878 Murray Heart Breaker Bicycle 15008158 Men's BMX Bicycle 15008390 20" Men's Mongoose Bicycle 15008892 Men's Mongoose Bicycle HUTCHINSON CITY COUNCIL ci vof 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution to Donate Unclaimed Bicycles Department: Police LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff 0 Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Requesting approval to donation of the following bicycles to the Village Ranch Boys Group Home: 26" Mountain Fury Spectra bicycle (HPS Case #14016619) 24" Huffy Granite bicycle (HPS Case #15001871) 26" GT Avalanche bicycle (HPS Case #15001875) 26" Mongoose Ledge bicycle (HPS Case #15002468) 26" Roadmaster Mountain Sport (HPS Case #15002941) BOARD ACTION REQUESTED: The Hutchinson Police Department recommends approval 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 DONATE FOUND PROPERTY Resolution No. 14454 WHEREAS, Hutchinson Police Services has accumulated found property; AND WHEREAS, the Hutchinson City Code provides pursuant to Section 91 for the donation of found property. AND WHEREAS, the found property has been in the possession of Hutchinson Police Services for more than thirty days; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the Hutchinson City Council hereby approves the donation of the following bicycles to the Village Ranch Boys Group Home: 26" Mountain Fury Spectra bicycle (HPS Case #14016619) 24" Huffy Granite bicycle (HPS Case #15001871) 26" GT Avalanche bicycle (HPS Case #15001875) 26" Mongoose Ledge bicycle (HPS Case #15002468) 26" Roadmaster Mountain Sport (HPS Case #15002941) Adopted by the City Council this 8t" day of September, 2015. Mayor City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Open Streets Event Department: Police LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Daniel Hatten Agenda Item Type: Presenter: Daniel Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: The Heart of Hutch along with the Chamber of Commerce and the City of Hutchinson will be hosting the first annual Open Streets Event on September 26, 2015 from 10:30 am until 3:00 pm. This event will have over 20 booths with a verity of interactive and informational booths, activities, games, demonstrations, and a 1 OK run. The Heart of Hutch along with the other collaborating partners are requesting the Hutchinson City Council authorize the closing of 3rd Ave NW from Main St to Lind Ave NW. The cross streets of Water, James and Glen will blocked off at 3rd Ave allow all businesses along the route to have access to their business from Highway 7 W. They are also requesting the use of park area around the Law Enforcement Park and vacant lot between Southwest Initiative and Glen St NW After reviewing this plan the Hutchinson Police Department looks forward to working with the organizers to ensure a successful event. BOARD ACTION REQUESTED: The Police Department Recommends approval. Fiscal Impact: $ 600.00 Funding Source: Current Budget FTE Impact: 3.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: OPEWR STREETS Main Street N/Hwy 15 HUTCHINSON �i OPEN STREETS HUTCHINSON - HEART OF HUTCH Information & volunteer check in s� HUTCHINSON AREA CHAMBER OF COMMERCE & TOURISM to City guides, trail maps, & resources Guided Art Sculpture Strolls tl O 0 HUTCHINSON PARKS & RECREATION / Stage COMMUNITY EDhE O James Street NW Information swap Bike demos & cycle station 101 ® LIVE MUSIC & FILM Stage &seating HUTCHINSON SENIOR CENTER INAGURAL TRAIL RIDE - LUCE LINE TRAIL Activities for all ages Starting Line HUTCHINSON CENTER FOR THE ARTS Glen Street NW © BICYCLE ALLIANCE OF MN Bicylce rodeo for kids Kids activities - decorate your bike, face painting HUTCHINSON POLICE DEPARTMENT 14 HUTCHINSON ARMORY - NATIONAL GUARD Meet Hutchinsoris Bike Patrol Obstacle course & climbing wall ® HUTCHINSON FIRE DEPARTMENT Kids activity and information s� HUTCHINSON HEALTH Helmet safety & head trauma demo and education to MCLEOD COUNTY PUBLIC HEALTH Child and teen checkups, promotion of Safe Routes to School 11 OUTDOOR MOTION James Street NW Bike demos & cycle station 101 lz HUTCHINSON SENIOR CENTER Activities for all ages 13 HUTCHINSON CENTER FOR THE ARTS Kids activities - decorate your bike, face painting 14 HUTCHINSON ARMORY - NATIONAL GUARD Obstacle course & climbing wall is FUN IN THE STREETS - HEART OF HUTCH Hula hoops, jump ropes, youth sports demo, disc golf, yoga in the is park, and more EBT/SNAP HUTCHINSON FARMERS MARKET Water Street NW BUCKS PROGRAM 17 HYDRATION STATION Water & drink concessions is FOOD CONCESSIONS For more vendors and activities visit: .�.. ..._.�. Lind Street NW 0 0 O 0 13 15 16 17 18 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution Authorizing Authority To Enter Into Agreement with Minnesota Courts Department: Police and Legal Depts LICENSE SECTION Meeting Date: 9/8/2015 Application Complete Yes Contact: Dan Hatten/Marc Sebora Agenda Item Type: Presenter: Dan Hatten/Marc Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Daniel T. Hatten, Police Chief, and Marc A. Sebora, City Attorney, are requesting this resolution be approved by The Hutchinson City Council to give authority to execute any and all documents required to effectuate the Master Subscriber Agreement on behalf of City of Hutchinson's Legal and Police Departments. The Office of State Court Administration offers Court Data Services to certain Minnesota Government Subscribers as authorized by the Rules of Public Access and Court Order. Requires the City Attorney and Police Chief to sign an agreement with the Office of State Court Administration and it requires proof of authority to sign by way of resolution through city council. Government Subscribers (Hutchinson Police Services and the Hutchinson City Attorney's Office) desire to use Court Data Services, and the Court desires to provide the same, to assist them in the efficient performance of its governmental duties as required or authorized by law or court rule in connection with any civil, criminal, administrative or arbitral proceeding in any Federal, State or local court or agency or before any self-regulatory body. Daniel T. Hatten Police Chief, and Marc Sebora, City Attorney, are requesting authority to enter into this agreement with with the Office of State Court Administration. BOARD ACTION REQUESTED: Approve Resolution No. 14458 Fiscal Impact: $ 0.00 Funding Source: 0 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: RESOLUTION NO. 14458 A RESOLUTION AUTHORIZING DANIEL T. HATTEN, POLICE CHIEF, AND MARC A. SEBORA, CITY ATTORNEY TO ENTER INTO MASTER SUBSCRIBER AGREEEMENT FOR MINNESOTA COURT DATA SERVICES FOR GOVERNMENTAL AGENCIES WHEREAS, the Office of State Court Administration offers Court Data Services to Minnesota Government Subscribers as authorized by the Rules of Public Access and Court Order; and, WHEREAS, the court Data Services are offered to Government Subscribers as governmental units and are offered solely for certain governmental use as permitted in the Master Subscriber Agreement; and, WHEREAS, Government Subscribers (Hutchinson Police Services and the Hutchinson City Attorney's Office) desire to use Court Data Services, and the Court desires to provide the same, to assist them in the efficient performance of its governmental duties as required or authorized by law or court rule in connection with any civil, criminal, administrative or arbitral proceeding in any Federal, State or local court or agency or before any self-regulatory body, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON That Daniel T. Hatten, Police Chief, and Marc A. Sebora, City Attorney, are hereby empowered to execute any and all documents required to effectuate the Master Subscriber Agreement on behalf of their governmental agencies. Adopted by the City Council this 8th day of September, 2015. Gary T. Forcier Mayor ATTEST: Marc A. Sebora City Administrator MASTER SUBSCRIBER AGREEMENT FOR MINNESOTA COURT DATA SERVICES FOR GOVERNMENTAL AGENCIES THIS AGREEMENT is entered into by and between (Government Subscriber Name) of , (Government Subscriber Address) (hereinafter "Government Subscriber") and THE STATE OF MINNESOTA Office of State Court Administration of 25 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, Minnesota 55155 (hereinafter "the Court"). Recitals The Court offers Court Data Services, as defined herein, to Minnesota Government Subscribers as authorized by the Rules of Public Access and Court Order. The Court Data Services are offered to Government Subscribers as governmental units and are offered solely for certain governmental use as permitted herein. Government Subscriber desires to use Court Data Services, and the Court desires to provide the same, to assist Government Subscriber in the efficient performance of its governmental duties as required or authorized by law or court rule in connection with any civil, criminal, administrative, or arbitral proceeding in any Federal, State or local court or agency or before any self-regulatory body. Court Data Services are defined in the Definitions section of this Agreement and may involve a one-way or two-way transmission of information between the parties, some of which may include court information that is not accessible to the public pursuant to the Rules of Public Access and which may not be disclosed by Government Subscriber without the prior approval of the appropriate court or record custodian. Government Subscriber agrees herein to limit its access to and use of Court Records and Court Documents through Court Data Services to the Government Subscriber's "Legitimate Governmental Business Need" as defined herein. Agreement NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements contained herein, the Court and Government Subscriber agree as follows: 1. TERM; TERMINATION; ONGOING OBLIGATIONS. 1.1 Term. This Agreement shall be effective on the date executed by the Court and shall remain in effect according to its terms. Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 1 of 15 1.2 Termination. 1.2.1 Either party may terminate this Agreement with or without cause by giving written notice to the other party. The effective date of the termination shall be thirty (30) days after the other party's receipt of the notice of termination, unless a later date is specified in the notice. Termination of this Agreement pursuant to Clause 4.5 shall be effective immediately and may occur without prior notice to Government Subscriber. 1.2.2 The provisions of Clauses 5, 6, 8, 9, 10, 12.2, 12.3 and 15 through 24 shall survive any termination of this Agreement, as shall any other provisions that by their nature are intended or expected to survive such termination. Upon termination, the Government Subscriber shall perform the responsibilities set forth in paragraph 8.6 hereof. 1.3 Subsequent Agreement. This Agreement may be superseded by a subsequent agreement between the parties. 2. DEFINITIONS. 2.1 "Agency Account Manager" means the Government Subscriber employee assigned with the tasks of: (1) being the point of contact for communications between Government Subscriber and the Court; (2) maintaining a current list Government Subscriber's Individual Users and their signed User Acknowledgment Forms and promptly notifying the Court when Government Subscriber's Individual Users with individual logins should have accounts added or deleted; (3) reporting violations of this agreement by Government Subscriber's Individual Users and steps taken to remedy violations to the Court. 2.2 "Court Data Services" means one or more of the following services and includes any additional or modified services identified as such on the Justice Agency Resource webpage of the Minnesota Judicial Branch website, which is currently www.mncourts.gov, or other location designated by the Court and/or its affiliates, as the same may be amended from time to time by the Court and/or its affiliates: 2.2.1 "Bulk Data Delivery" means the electronic transmission of Court Records in bulk form from the Court to the Government Subscriber, from one or more of the Court's databases and through any means of transmission, as described in applicable Policies & Notices and materials referenced therein. 2.2.2 "Court Integration Services" means pre -defined automated transmissions of i) Court Records from the Court's computer systems to Government Subscriber's computer systems; and/or ii) Government Subscriber Records from the Government Subscriber's computer systems to the Court's computer systems; on a periodic basis or as triggered by pre -determined events, as described in applicable Policies & Notices and materials referenced therein. 2.2.3 "MNCIS Login Accounts" means a digital login account created for and provided to the Government Subscriber for online access to and use of Court Records and Court Documents maintained by the Minnesota Court Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 2 of 15 Information System ("MNCIS"), as described in applicable Policies & Notices and materials referenced therein. 2.3 "Court Data Services Databases" means any databases and the data therein, used as a source for Court Data Services, together with any documentation related thereto, including without limitation descriptions of the format or contents of data, data schemas, and all related components. 2.4 "Court Data Services Programs" means any computer application programs, routines, transport mechanisms, and display screens used in connection with Court Data Services, together with any documentation related thereto. 2.5 "Court Records" means all information in any form made available by the Court and/or its affiliates to Government Subscriber for the purposes of carrying out this Agreement, including: 2.5.0 "Court Case Information" means any information in the Court Records that conveys information about a particular case or controversy, including without limitation Court Confidential Case Information and Court Documents, as defined herein. 2.5.1 "Court Confidential Case Information" means any information in the Court Records (including Court Documents) that is inaccessible to the public pursuant to the Rules of Public Access and that conveys information about a particular case or controversy. 2.5.2 "Court Confidential Security and Activation Information" means any information in the Court Records that is inaccessible to the public pursuant to the Rules of Public Access and that explains how to use or gain access to Court Data Services, including but not limited to login account names, passwords, TCP/IP addresses, Court Data Services user manuals, Court Data Services Programs, Court Data Services Databases, and other technical information. 2.5.3 "Court Confidential Information" means any information in the Court Records that is inaccessible to the public pursuant to the Rules of Public Access, including without limitation both i) Court Confidential Case Information; and ii) Court Confidential Security and Activation Information. 2.5.4 "Court Documents" means electronic images of documents that are part of or included in a court file. 2.6 "DCA" means the District Court Administrator pursuant to Minnesota Statutes, section 485.01. 2.7 "Government Subscriber Records" means any information in any form made available by the Government Subscriber to the Court and/or its affiliates for the purposes of carrying out this Agreement. 2.8 "Government Subscriber's Individual Users" means Government Subscriber's employees or independent contractors whose use or access of Court Data Services, Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 3 of 15 as well as the access, use and dissemination of Court Records (including Court Documents), is necessary to effectuate the purposes of this Agreement. 2.9 "Legitimate Governmental Business Need" means a requirement, duty or obligation for the efficient performance of governmental tasks or governmental responsibilities and as required or authorized by law or court rule in connection with any civil, criminal, administrative, or arbitral proceeding in any Federal, State or local court or agency or before any self-regulatory body. 2.10 "Policies & Notices" means the policies and notices published by the Court and/or its affiliates in connection with each of its Court Data Services, on a website or other location designated by the Court and/or its affiliates, as the same may be amended from time to time by the Court and/or its affiliates. Policies & Notices for each Court Data Service, hereby made part of this Agreement by reference, provide additional terms and conditions that govern Government Subscriber's use of such services, including but not limited to provisions on fees, access and use limitations, and identification of various third party applications, such as transport mechanisms, that Government Subscriber may need to procure separately to use Court Data Services. 2.11 "Rules of Public Access" means the Rules of Public Access to Records of the Judicial Branch promulgated by the Minnesota Supreme Court, as the same may be amended from time to time, including without limitation lists or tables published from time to time by the Court and/or the SCAO entitled "Limits on Public Access to Case Records" or "Limits on Public Access to Administrative Records," all of which by this reference are made a part of this Agreement. It is the obligation of Government Subscriber to check from time to time for updated rules, lists, and tables and be familiar with the contents thereof. Such rules, lists, and tables are posted on the main website for the Court, for which the current address is www.mncourts.gov. 2.12 "SCAO" means the State of Minnesota, State Court Administrator's Office. 2.13 "This Agreement" means this Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies, including all Exhibits, Policies & Notices, and other documents referenced, attached to, or submitted or issued hereunder. 2.14 "Trade Secret Information of SCAO and its licensors" is defined in sections 8. 1, 8.2 and 8.4 of this Agreement. 2.15 "User Acknowledgement Form" means the form attached to this document as Exhibit A, signed by Government Subscriber's Individual Users to confirm in writing that the Individual User has read and understands the requirements and restrictions in this Agreement. 3. DATA ACCESS SERVICES PROVIDED TO GOVERNMENT AGENCY. Following execution of this Agreement by both parties, Government Subscriber will be offered access to the Court Records (including Court Documents) described in the Government Subscriber Access Chart, which is posted on the Policies & Notices. Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 4 of 15 4. AUTHORIZED ACCESS, USE, AND DISSEMINATION OF COURT DATA SERVICES AND COURT RECORDS LIMITED; TRAINING; VIOLATIONS; SANCTIONS. 4.1 Authorized Access to Court Data Services and Court Records. 4.1.1 Government Subscriber and Government Subscriber's Individual Users shall access only the Court Data Services and Court Records (including Court Documents) necessary for a Legitimate Governmental Business Need. 4.1.2 The access of Court Data Services or Court Records (including Court Documents) by Government Subscriber or Government Subscriber's Individual Users for personal or non -official use, or any use that is not a "Legitimate Governmental Business Need" as defined herein, is prohibited. 4.1.3 Government Subscriber and Government Subscriber's Individual Users shall not access or attempt to access Court Data Services or Court Records (including Court Documents) in any manner not set forth in this Agreement, Policies & Notices, or other Court Data Services documentation. 4.2 Authorized Use of Court Data Services and Court Records. 4.2.1 Government Subscriber and Government Subscriber's Individual Users shall use the Court Data Services and Court Records (including Court Documents) accessed only for a Legitimate Governmental Business Need and according to the instructions provided in corresponding Policies & Notices or other materials. 4.2.2 The use of Court Data Services or Court Records (including Court Documents) by Government Subscriber or Government Subscriber's Individual Users for personal or non -official use, or any use that is not a "Legitimate Governmental Business Need" as defined herein, is prohibited. 4.2.3 Government Subscriber and Government Subscriber's Individual Users shall not use or attempt to use Court Data Services or Court Records (including Court Documents) in any manner not set forth in this Agreement, Policies & Notices, or other Court Data Services documentation. 4.3 Dissemination of Court Records. Government Subscriber and Government Subscriber's Individual Users shall not share the Court Records (including Court Documents) accessed and data therefrom with third parties and other individuals other than as needed to further a Legitimate Governmental Business Need. 4.4 Training. Government Subscriber shall provide Government Subscriber's Individual Users training in the proper access, use, and dissemination of Court Records (including Court Documents). 4.5 Violations. 4.5.1 The access, use, or dissemination of Court Data Services or Court Records (including Court Documents) beyond what is necessary for a Legitimate Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 5 of 15 Governmental Business Need by Government Subscriber or Government Subscriber's Individual Users is a violation of this Agreement. The access, use or dissemination of Court Data Services or Court Records (including Court Documents) by Government Subscriber or Government Subscriber's Individual Users for personal use is a violation of this Agreement. 4.5.2 Any violation pursuant to Clause 4.5.1, or any unauthorized or attempted access, use or dissemination of Court Data Services, Court Records or Court Documents by Government Subscriber or Government Subscriber's Individual Users shall be grounds for the Court to impose sanctions as described in Clause 4.6 and to terminate this Agreement without prior notice to Government Subscriber and/or Government Subscriber's Individual Users. 4.6 Sanctions. 4.6.1 Sanctions for a violation pursuant to Clause 4.5.1 may be imposed upon a Government Subscriber and/or Government Subscriber's Individual Users and may include the suspension of access or termination of access for Government Subscriber and/or Government Subscriber's Individual Users. 4.6.2 If the Court decides to terminate the access for Government Subscriber and/or Government Subscriber's Individual Users, the Court shall notify the affected party in writing. The termination shall be effective immediately. Prior notice to Government Subscriber and/or Government Subscriber's Individual Users is not required. Reinstatement of the access shall only be upon the written direction of the Court. 5. GUARANTEES OF CONFIDENTIALITY. Government Subscriber agrees: 5.1 To not disclose Court Confidential Information to any third party except where necessary to carry out the Government Subscriber's Legitimate Governmental Business Need as defined in this Agreement. 5.2 To take all appropriate action, whether by instruction, agreement, or otherwise, to insure the protection, confidentiality and security of Court Confidential Information and to satisfy Government Subscriber's obligations under this Agreement. 5.3 To limit the use of and access to Court Confidential Information to Government Subscriber's Individual Users. Government Subscriber shall advise Government Subscriber's Individual Users of the restrictions upon access, use and disclosure contained in this Agreement, requiring each Government Subscriber's Individual User to acknowledge in writing that the individual has read and understands such restrictions. Government Subscriber's Individual Users shall sign the User Acknowledgment Form attached in Exhibit A before accessing Court Data Services. 5.4 That, without limiting Clause 1 of this Agreement, the obligations of Government Subscriber and Government Subscriber's Individual Users with respect to the confidentiality and security of Court Confidential Information shall survive the termination of this Agreement and the termination of their relationship with Government Subscriber. Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 6 of 15 5.5 That, notwithstanding any federal or state law applicable to the nondisclosure obligations of Government Subscriber and Government Subscriber's Individual Users under this Agreement, such obligations of Government Subscriber and Government Subscriber's Individual Users are founded independently on the provisions of this Agreement. 5.6 That, a violation of Government Subscriber's agreements contained in this Clause 5, or a violation of those same agreements by Government Subscriber's Individual Users, shall be grounds for the Court to terminate this agreement and Government Subscriber and/or Government Subscriber's Individual Users access to Court Data Services and Court Records (including Court Documents). 6. APPLICABILITY TO COURT CASE INFORMATION PROVIDED UNDER LEGAL MANDATE AND PREVIOUSLY DISCLOSED COURT RECORDS AND COURT DOCUMENTS. Subscriber acknowledges and agrees: 6.1 Court Case Information Provided Under Legal Mandate. When the Court is required to provide Government Subscriber with Court Case Information under a legal mandate and the provision of such data by the Court is not optional or otherwise left to the discretion of the Court, for example in the case of a state statutory reporting requirement, the provisions of this Agreement that govern or restrict Government Subscriber's access to and use of Court Case Information do not apply to the specific data elements identified in the legal mandate, but remain in effect with respect to all other Court Case Information provided by the Court to Government Subscriber. All other provisions of this Agreement remain in full effect, including, without limitation, provisions that govern or restrict Government Subscriber's access to and use of Court Confidential Security and Activation Information. 6.2 Previously Disclosed Court Records and Court Documents. Without limiting section 6. 1, all Court Records and Court Documents disclosed to Government Subscriber prior to the effective date of this Agreement shall be subject to the provisions of this Agreement. 7. ACKNOWLEDGMENT BY INDIVIDUALS WITH ACCESS TO COURT RECORDS UNDER THIS AGREEMENT. 7.1 Requirement to Advise Government Subscriber's Individual Users. To affect the purposes of this Agreement, Government Subscriber shall advise each of Government Subscriber's Individual Users who are permitted to use and/or access Court Data Services and Court Records (including Court Documents) under this Agreement of the requirements and restrictions in this Agreement. 7.2 Required Acknowledgement by Government Subscriber's Individual Users. 7.2.1 Government Subscriber shall require each of Government Subscriber's Individual Users to sign the User Acknowledgement Form (Exhibit A). 7.2.2 The User Acknowledgement Forms of current Government Subscriber's Individual Users must be obtained prior to submitting this Agreement to the Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 7 of 15 Court for approval and shall accompany the submission of this Agreement for approval. 7.2.3 Until the User Acknowledgement Form required in Clause 7.2.1 is signed, a Government Subscriber's Individual User is prohibited from accessing, using or disseminating Court Data Services and Court Records (including Court Documents). The access, use or dissemination of Court Data Services or Court Records (including Court Documents) by a Government Subscriber's Individual User that has not completed a User Acknowledgement Form as required in Clause 7.2.1 is a violation of this Agreement. 7.2.4 Government Subscriber shall keep all such written User Acknowledgment Forms on file while this Agreement is in effect and for one (1) year following the termination of this Agreement. Government Subscriber shall promptly provide the Court with access to, and copies of, such acknowledgements upon request to the Agency Account Manager. 7.2.5 The User Acknowledgment Forms are incorporated herein by reference. 8. LICENSE AND PROTECTION OF PROPRIETARY RIGHTS. During the term of this Agreement, subject to the terms and conditions hereof, the Court, with the permission of the SCAO, hereby grants to Government Subscriber a nonexclusive, nontransferable, limited license to use Court Data Services Programs and Court Data Services Databases to access or receive Court Records (including Court Documents). SCAO and the Court reserve the right to make modifications to the Court Data Services, Court Data Services Programs, and Court Data Services Databases, and related materials without notice to Government Subscriber. These modifications shall be treated in all respects as their previous counterparts. 8.1 Court Data Services Programs. SCAO is the copyright owner and licensor of the Court Data Services Programs. The combination of ideas, procedures, processes, systems, logic, coherence and methods of operation embodied within the Court Data Services Programs, and all information contained in documentation pertaining to the Court Data Services Programs, including but not limited to manuals, user documentation, and passwords, are trade secret information of SCAO and its licensors. 8.2 Court Data Services Databases. SCAO is the copyright owner and licensor of the Court Data Services Databases and of all copyrightable aspects and components thereof All specifications and information pertaining to the Court Data Services Databases and their structure, sequence and organization, including without limitation data schemas such as the Court XML Schema, are trade secret information of SCAO and its licensors. 8.3 Marks. Government Subscriber shall neither have nor claim any right, title, or interest in or use of any trademark used in connection with Court Data Services, including but not limited to the marks "MNCIS" and "Odyssey." 8.4 Restrictions on Duplication, Disclosure, and Use. 8.4.1 Trade secret information of SCAO and its licensors will be treated by Government Subscriber in the same manner as Court Confidential Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 8 of 15 Information. In addition, Government Subscriber will not copy any part of the Court Data Services Programs or Court Data Services Databases, or reverse engineer or otherwise attempt to discern the source code of the Court Data Services Programs or Court Data Services Databases, or use any trademark of SCAO or its licensors, in any way or for any purpose not specifically and expressly authorized by this Agreement. As used herein, "trade secret information of SCAO and its licensors" means any information possessed by SCAO which derives independent economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use. "Trade secret information of SCAO and its licensors" does not, however, include information which was known to Government Subscriber prior to Government Subscriber's receipt thereof, either directly or indirectly, from SCAO or its licensors, information which is independently developed by Government Subscriber without reference to or use of information received from SCAO or its licensors, or information which would not qualify as a trade secret under Minnesota law. 8.4.2 It will not be a violation of Clause 8.4 for Government Subscriber to make up to one (1) copy of training materials and configuration documentation for each individual authorized to access, use, or configure Court Data Services, solely for its own use in connection with this Agreement. 8.4.3 Government Subscriber will take all steps reasonably necessary to protect the copyright, trade secret, and trademark rights of SCAO and its licensors and Government Subscriber will advise Government Subscriber's Individual Users who are permitted access to any of the Court Data Services Programs and Court Data Services Databases, and trade secret information of SCAO and its licensors, of the restrictions upon duplication, disclosure and use contained in this Agreement. 8.5 Proprietary Notices. Government Subscriber will not remove any copyright or proprietary notices included in and/or on the Court Data Services Programs or Court Data Services Databases, related documentation, or trade secret information of SCAO and its licensors, or any part thereof, made available by SCAO or the Court, and Government Subscriber will include in and/or on any copy of the Court Data Services Programs or Court Data Services Databases, or trade secret information of SCAO and its licensors and any documents pertaining thereto, the same copyright and other proprietary notices as appear on the copies made available to Government Subscriber by SCAO or the Court, except that copyright notices shall be updated and other proprietary notices added as may be appropriate. 8.6 Title; Return. The Court Data Services Programs and Court Data Services Databases, and related documentation, including but not limited to training and configuration material, if any, and logon account information and passwords, made available by the Court and SCAO to Government Subscriber hereunder, and all copies, including partial copies, thereof are and remain the property of the respective licensor. Within ten days of the effective date of termination of this Agreement, Government Subscriber shall either: (i) uninstall and return any and all copies of the applicable Court Data Services Programs and Court Data Services Databases, and related documentation, including but not limited to training and configuration Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 9 of 15 materials, if any, and logon account information; or (2) destroy the same and certify in writing to the Court that the same have been destroyed. 8.7 Reasonable Security Measures. The Court may add reasonable security measures including, but not limited to, a time-out feature, to Court Data Services Programs. 9. INJUNCTIVE RELIEF; LIABILITY. Government Subscriber acknowledges that the Court, SCAO, SCAO's licensors, and DCA will be irreparably harmed if Government Subscriber's obligations under this Agreement are not specifically enforced and that the Court, SCAO, SCAO's licensors, and DCA would not have an adequate remedy at law in the event of an actual or threatened violation by Government Subscriber of its obligations. Therefore, Government Subscriber agrees that the Court, SCAO, SCAO's licensors, and DCA shall be entitled to an injunction or any appropriate decree of specific performance for any actual or threatened violations or breaches by Government Subscriber or Government Subscriber's Individual Users without the necessity of the Court, SCAO, SCAO's licensors, or DCA showing actual damages or that monetary damages would not afford an adequate remedy. Unless Government Subscriber is an office, officer, agency, department, division, or bureau of the state of Minnesota, Government Subscriber shall be liable to the Court, SCAO, SCAO's licensors, and DCA for reasonable attorney's fees incurred by the Court, SCAO, SCAO's licensors, and DCA in obtaining any relief pursuant to this Agreement. 10. COMPROMISE LIABILITY. Government Subscriber and the Court agree that, except as otherwise expressly provided herein, each party will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of any others and the results thereof. Liability shall be governed by applicable law. Without limiting the foregoing, liability of the Court and any Government Subscriber that is an office, officer, agency, department, division, or bureau of the state of Minnesota shall be governed by the provisions of the Minnesota Tort Claims Act, Minnesota Statutes, section 3.376, and other applicable law. Without limiting the foregoing, if Government Subscriber is a political subdivision of the state of Minnesota, liability of the Subscriber shall be governed by the provisions of Minn. Stat. Ch. 466 (Tort Liability, Political Subdivisions) or other applicable law. 11. AVAILABILITY. Specific terms of availability shall be established by the Court and set forth in the Polices & Notices. The Court reserves the right to terminate this Agreement immediately and/or temporarily suspend Government Subscriber's approved Court Data Services in the event the capacity of any host computer system or legislative appropriation of funds is determined solely by the Court to be insufficient to meet the computer needs of the courts served by the host computer system. Monthly fees, if any, shall be prorated only for periods of suspension or upon termination of this Agreement. 12. ADDITIONAL USER OBLIGATIONS. The obligations of the Government Subscriber set forth in this section are in addition to the other obligations of the Government Subscriber set forth elsewhere in this Agreement. 12.1 Judicial Policy Statement. Government Subscriber agrees to comply with all policies identified in applicable Policies & Notices. Upon failure of the Government Subscriber to comply with such policies, the Court shall have the option of immediately suspending or terminating the Government Subscriber's Court Data Services on a temporary basis and/or immediately terminating this Agreement. Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 10 of 15 12.2 Access and Use; Log. 12.2.1 Government Subscriber shall be responsible for all access to and use of Court Data Services and Court Records (including Court Documents) by Government Subscriber's Individual Users or by means of Government Subscriber's equipment or passwords, whether or not Government Subscriber has knowledge of or authorizes such access and use. 12.2.2 Government Subscriber shall also maintain a log identifying all persons to whom Government Subscriber has disclosed its Court Confidential Security and Activation Information, such as user ID(s) and password(s), including the date of such disclosure. Government Subscriber shall maintain such logs while this Agreement is in effect and for a period of one (1) year following termination of this Agreement. Government Subscriber shall promptly provide the Court with access to, and copies of, such logs upon request. 12.2.3 Government Subscriber, through the Agency Account Manager, shall promptly notify the Court when Government Subscriber's Individual Users with individual logins should have accounts added or deleted. Upon Government Subscriber's failure to notify the Court of these changes, the Court may terminate this Agreement without prior notice to Government Subscriber. 12.2.4 The Court may conduct audits of Government Subscriber's logs and use of Court Data Services and Court Records (including Court Documents) from time to time. Upon Government Subscriber's failure to maintain such logs, to maintain accurate logs, or to promptly provide access by the Court to such logs, the Court may terminate this Agreement without prior notice to Government Subscriber. 12.3 Personnel. Government Subscriber agrees to investigate (including conducting audits), at the request of the Court, allegations of misconduct pertaining to Government Subscriber's Individual Users having access to or use of Court Data Services, Court Confidential Information, or trade secret information of the SCAO and its licensors where such persons violate the provisions of this Agreement, Policies & Notices, Judicial Branch policies, or other security requirements or laws regulating access to the Court Records. Government Subscriber, through the Agency Account Manager, agrees to notify the Court of the results of such investigation, including any disciplinary actions, and of steps taken to prevent further misconduct. Government Subscriber agrees to reimburse the Court for costs to the Court for the investigation of improper use of Court Data Services, Court Records (including Court Documents), or trade secret information of the SCAO and its licensors. 13. FEES AND INVOICES. Applicable monthly fees commence ten (10) days after notice of the Court's approval of this Agreement or upon the initial Government Subscriber transaction as defined in the Policies & Notices, whichever occurs earlier. When fees apply, the State shall invoice Government Subscriber on a monthly basis for charges incurred in the preceding month and applicable taxes, if any, and payment of all amounts shall be due upon receipt of invoice. If all amounts are not paid within thirty (30) days of the date of the invoice, the Court may immediately cancel this Agreement without notice to Government Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 11 of 15 Subscriber and pursue all available legal remedies. Government Subscriber certifies that funds have been appropriated for the payment of charges under this Agreement for the current fiscal year, if applicable. 14. MODIFICATION OF FEES. SCAO may modify the fees by amending the Policies & Notices as provided herein, and the modified fees shall be effective on the date specified in the Policies & Notices, which shall not be less than thirty (30) days from the publication of the Policies & Notices. Government Subscriber shall have the option of accepting such changes or terminating this Agreement as provided in section 1 hereof. 15. WARRANTY DISCLAIMERS. 15.1 WARRANTY EXCLUSIONS. EXCEPT AS SPECIFICALLY AND EXPRESSLY PROVIDED HEREIN, COURT, SCAO, SCAO'S LICENSORS, AND DCA MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY, NOR ARE ANY WARRANTIES TO BE IMPLIED, WITH RESPECT TO THE INFORMATION, SERVICES OR COMPUTER PROGRAMS MADE AVAILABLE UNDER THIS AGREEMENT. 15.2 ACCURACY, COMPLETENESS AND AVAILABILITY OF INFORMATION. WITHOUT LIMITING THE GENERALITY OF THE PRECEDING PARAGRAPH, COURT, SCAO, SCAO' S LICENSORS, AND DCA MAKE NO WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN THE COURT RECORDS. THE COURT IS NOT LIABLE FOR ANY COURT RECORDS OR COURT DOCUMENTS NOT AVAILABLE THROUGH COURT DATA SERVICES DUE TO COMPUTER OR NETWORK MALFUNCTION, MISTAKE OR USER ERROR. 16. RELATIONSHIP OF THE PARTIES. Government Subscriber is an independent contractor and shall not be deemed for any purpose to be an employee, partner, agent or franchisee of the Court, SCAO, SCAO' S licensors, or DCA. Neither Government Subscriber nor the Court, SCAO, SCAO' S licensors, or DCA shall have the right nor the authority to assume, create or incur any liability or obligation of any kind, express or implied, against or in the name of or on behalf of the other. 17. NOTICE. Except as provided in Clause 2 regarding notices of or modifications to Court Data Services and Policies & Notices, and in Clauses 13 and 14 regarding notices of or modification of fees, any notice to Court or Government Subscriber hereunder shall be deemed to have been received when personally delivered in writing or seventy-two (72) hours after it has been deposited in the United States mail, first class, proper postage prepaid, addressed to the party to whom it is intended at the address set forth on page one of this Agreement or at such other address of which notice has been given in accordance herewith. 18. NON -WAIVER. The failure by either Party at any time to enforce any of the provisions of this Agreement or any right or remedy available hereunder or at law or in equity, or to exercise any option herein provided, shall not constitute a waiver of such provision, remedy or option or in any way affect the validity of this Agreement. The waiver of any default by Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 12 of 15 either Party shall not be deemed a continuing waiver, but shall apply solely to the instance to which such waiver is directed. 19. FORCE MAJEURE. Neither party shall be responsible for failure or delay in the performance of their respective obligations hereunder caused by acts beyond their reasonable control. 20. SEVERABILITY. Every provision of this Agreement shall be construed, to the extent possible, so as to be valid and enforceable. If any provision of this Agreement so construed is held by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable, such provision shall be deemed severed from this Agreement, and all other provisions shall remain in full force and effect. 21. ASSIGNMENT AND BINDING EFFECT. Except as otherwise expressly permitted herein, neither Party may assign, delegate and/or otherwise transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of the other. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns, including any corporation or other legal entity into, by or with which Government Subscriber may be merged, acquired or consolidated or which may purchase the entire assets of Government Subscriber. 22. GOVERNING LAW. This Agreement shall in all respects be governed by and interpreted, construed and enforced in accordance with the laws of the United States and of the State of Minnesota. 23. VENUE AND JURISDICTION. Any action arising out of or relating to this Agreement, its performance, enforcement or breach will be venued in a state or federal court situated within the State of Minnesota. Government Subscriber hereby irrevocably consents and submits itself to the personal jurisdiction of said courts for that purpose. 24. INTEGRATION. This Agreement sets forth the entire Agreement and understanding between the Parties regarding the subject matter hereof and supersedes any prior representations, statements, proposals, negotiations, discussions, understandings, or agreements regarding the same subject matter. Except as otherwise expressly provided in Clause 2 regarding Court Data Services and Policies & Notices, and in Clauses 13 and 14 regarding fees, any amendments or modifications to this Agreement shall be in writing signed by both Parties. 25. MINNESOTA DATA PRACTICES ACT APPLICABILITY. If Government Subscriber is a Minnesota Government entity that is subject to the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, Government Subscriber acknowledges and agrees that: (1) the Court is not subject to Minn. Stat. Ch. 13 (see section 13.90) but is subject to the Rules of Public Access and other rules promulgated by the Minnesota Supreme Court; (2) Minn. Stat. section 13.03, subdivision 4(e) requires that Government Subscriber comply with the Rules of Public Access and other rules promulgated by the Minnesota Supreme Court for access to Court Records provided under this Agreement; (3) the use of and access to Court Records may be restricted by rules promulgated by the Minnesota Supreme Court, applicable state statute or federal law; and (4) these applicable restrictions must be followed in the appropriate circumstances. Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 13 of 15 IN WITNESS WHEREOF, the Parties have, by their duly authorized officers, executed this Agreement, intending to be bound thereby. 1. GOVERNMENT SUBSCRIBER 2. THE COURT Government Subscriber must attach documented verification of authority to sign on behalf of and bind the entity, such a council resolution, board authority or legally binding decision maker and attach same as Exhibit B. By By (SIGNATURE) (SIGNATURE) Date Date Name (typed) Title Title CIO/Director Information Technology Division of State Court Office Office Administration Form and execution approved 3 for Court by: By: (SIGNATURE) Title: Staff Attorney - Legal Counsel Division Date: Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 14 of 15 Exhibit A Court Data Services User Acknowledgment Form The Agency identified below that I work for has contracted with the Office of State Court Administration (the "Court") for the access and use of the Court's Records and Documents. Under that contract, the Agency is required to have employees, student attorneys and contractors sign the written acknowledgment below before they are permitted access. I, , as an employee/student attorney/contractor of following: ("the Agency"), state the 1. I have read and understand the requirements and restrictions in the Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies between the Agency and the Court. 2. I understand that I am not to share my login and password information. 3. I shall access and use the Court Records and Court Documents provided for only "legitimate governmental business needs." I understand a "legitimate governmental business need" is limited to a requirement, duty or obligation for the efficient performance of governmental tasks or governmental responsibilities that is required or authorized by law or court rule in connection with any civil, criminal, administrative, or arbitral proceeding in any Federal, State or local court or agency or before any self- regulatory body. 4. I shall not access or use Court Records or Court Documents for personal or non -official use or any use that is not a legitimate governmental business need as defined in paragraph 3, above. 5. I will not share Court Records or Court Documents with third parties other than as needed to further legitimate governmental business needs as defined in paragraph 3, above. 6. I understand that the Court is not liable for any Court Records or Court Documents not available due to computer or network malfunction, mistake or user error. The Court makes no warranties as to the completeness or accuracy of the Court Records and Court Documents provided. 7. I agree to notify the Court when I no longer work for the Agency or no longer have a legitimate governmental business need for Court Records and Court Documents. I agree to stop accessing court records and documents when this occurs. 8. I understand that should I violate paragraphs 3., 4., or 5., it would result in the suspension or termination of my access to Court Records and Documents, and may result in the suspension or termination of the access to Court Records and Documents by the Agency, and other civil and criminal liability. Date: IM Employee/Student Attorney/Contractor for Agency Master Subscriber Agreement for Minnesota Court Data Services for Governmental Agencies — Revised September 22, 2014 Page 15 of 15 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Short-Term Gambling License Department: Administration LICENSE SECTION Meeting Date: 9/8/2015 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Upper Midwest Allis Chalmers Club has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding July 22-24, 2016, at the McLeod County Fairgrounds. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Upper Midwest Allis Chalmers Club on July 22-24, 2016. 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: Ceti pf I I I Hassan Street Southeast Hutchinson, MN 55350 (320)587-5151 Fax -(320)234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 655 and Minnesota Statutes Chapter 349 All applications must be received at least 30 days before event in order to be considered Ap2lication Type l Short Term Date(s) i� � � �u �JLAp & Fee: $30.00 xl nth1IiawYear - Meant iDq "Year j Q'7 Or anization Information 6 W IP c - _ Name Phone Number ; Address wh e regular meeting are held City � Zip Federal or State ID: 3 "7 1 ,Z , 0`7 Day and time of meetings? SAragDAqS VV'#LAL_fltL 80)lg t') -5 C Is this organization organized under the la s of the State of Minnesota? )iyes ❑ no How long has the organization been in existence" j .lHow may members in the organization? CYC O What is the purpose of the organization? Pak5FRvE k rg l Cu L --y i c: R U In whose custody wi II organization records be kept? C -- 5V 3 Ave.) Name Phone Number _ Aq :3 Q 1) Tf1F 57R � f j -9L 7C�l11UI 1 -55.3 5'6' .Q ddres.s cn)' Scare zip Duly Authorized Officer of the organization Information ARG.. Trite Nance Phone Number Residence Address City Slate Zip Date of Birth: &tGUS 1 ,'� - f 1 ] 1) y t Place of Birth: 0 C. ! '0A' X fr Momh1dq })ear C'irJr State Have you ever been convicted of any crime other than a traffic offense? ❑ yes 4110 If yes, explain: 013' of 1lurchinson Applicuiton for Ganrbhng Devices bcymse Page 2 of 3 under Minnesola Statute LA E 3 0 -3 �y�l 14 True Name r� Phone Number 3 a 6 Cf 5 i- 'r -PC N U K H I tJ, SW! f 6536_0 Residence Address City .51ale zip Date of Birth: )bt 15 "' ! ! l �j�i (� Place of Birth: G iC,g1j SSC 1> Month1daylyear City Slate Have you ever been convicted of any crime other than a traffic offense? ❑ yes _*no If yes, explain: How long have you been a member of the organization? Game Information Location #1 c}-= C T F'11 OUiV0S .��G 15S7__Q)V 9 Name rj. cation where gauge will be played Phone Number ANG' (__ `-(Ln &C 5"'( A I1t -F(, a i � tif- 5_6' 3 � Address of ' localwhere game will be played C'ily Zip Date(s) and/or day(s) gambling devices will be used: through A�j) AM. Hours of the day gambling devices will be used: From pM To la ', CO � ] Maximum number of player: A Frz t ) Will prizes be paid in money or merchandise?money merchandise C�30rH� Will refreshments be served during the time the gambling devices will be used? ❑ yes *no ]f yes, will a charge be made for such refreshments? D yes ❑ no Game Information Location 42 Name of location where game rvill be played Phone Number Address of location where gunge will be played 010 Stare Zip Date(s) and/or day{s} gambling devices will be used: _ _ _ _ through AM AM Hours of the day gambling devices will be used: From _ PM TO PM Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? © yes ❑ no If yes, will a charge be made for such refreshments? 0 yes ❑ no City of Hutchinson Application far Gambling Devices License Page 3 oj'3 Officers of the Organization (i 'necessa , list additional names on se orate sheet) N\ N LA RseW �R :� i ❑ �-A!-r _.. Name Title .3 l0 1�y ST r c1�'-P�AA�P rPL -%piZ 5J4,/,;2V Residence Address City State .Zip P) M� PAUL rJV 1 c � -1 5 1 Name Title � c LA E A Liy Residence Address -Sj�-y�E p' LM- City -Md State E5-,53 1 Zip Ln Aly f ARC:, -fR�A's U RE;R .Name Title Residence Address city State zip Officers or Other Persons Paid for Services Information (i necessa , list additional names an se arate sheet) Name Title Residence Address City State zip Name Title Residence Address City State zip Name Title Residence Address City State zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? JJJfff 5 ; ■ Gambling Manager yes ❑ no Authorized Officer Ryes ❑ no Initial Initial I declare that the information 1 have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and 1 will familiarize myself with the contents thereof. Signal tyre Signature 0j', r oj, ani: alien Internal Use Only City Council 0 approved ❑ denied Notes: Gus 1 u 4�2G15 ate AuG,Asi 3or Date 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: 9/8/2015 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner/John Olson 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. 1 /Project No. 15-01 — 2nd Ave SE This Change Order addresses Liquidated Damages as per Supplementary Conditions SC-12, for failure to meet an interim completion date in accordance with Special Provision SP-4.1. This revision results in an decrease of $5,000.00 to the current contract amount. o Change Order No. 2 — Letting No. 10/Project No. 15-10 — Cemetery Columbaria Shelter & Foundations This Change Order addresses additional 200 square feet of concrete sidewalk. Labor and materials, must meet the same specifications as per the contract. This revision results in an extension of the Contract Final Completion Date by 14 calendar days. This revision results in an increase of $1,800.00 to the current contract amount which will be funded by the Cemetery Perpetual Care Fund. 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: UP15-01 /SAP 133-109-009 08/24/2015 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 2 Page 1 of 1 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. Quantity SAP 133-109-009 L1 P15-01 L1 P15-01 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Duininck Inc 2nd Ave SE from Main St (TH 15) to 200'W of 2nd Ave SE Bridge 408 6th St, P O Box 208 TOTAL CHANGE ORDER AMOUNT Prinsburg, MN 56281-0208 ($5,000.00) In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Liquidated Damages - the City of Hutchinson will assess a monetary deduction in accordance with Supplementary Conditions SC - 12.07. The Contractor failed to complete the work specified in Special Provision SP -4.1 in the time allowed. The amount of the monetary deduction is 4 days at $1,250.00/day = $5,000.00. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 001 1807.601 LIQUIDATED DAMAGES DAY 1 ($1,250.00) 4 ($5,000.00) Funding Category No. 001 Total: ($5,000.00) Change Order No. 2 Total: ($5,000.00) F runaing category is requirea for teaerai protects. 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: Duininck Inc Signed Signed Date: Phone: (320) 234-4212 Date: Phone: (320) 978-6011 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: Orig. Contract Amt $1,176,508.43 Prev. Change Orders $10,096.14 Completion Date: 08/14/2015 HUTCHINSON CITY CENTER MY°f ENGINEERING DEPARTMENT 7A;007 111 HASSAN STREET SE, HUTCINSON MN 55350 PHONE: 320-234-4209 LETTING NO. 10 - PROJECT NO. 15-10 Dated: 0813112015 CHANGE ORDER NO. 2 Page 1 of 1 Project Location: Cemetery Columbaria Shelter and Foundations CONTRACTOR: Cold Spring Granite Co., dba Coldspring, 17482 Granite West Rd, Cold Spring, MN 56320 612-669-4959 Contract Amount: $178,362.00 Substantial Completion: NA Final Completion Date: 0812812015 Extended to: 0911112015 Change Order addresses additional 200 square feet of concrete sidewalk. Labor and materials, must meet the same Descriptionifications as per the contract. The Contract Final Completion Date will be extended by 14 calendar days. This Change Order of Change:ts in an increase of $1,800.00 to the Contract. Ire Item No. Spec. Ref. Item Name Unit Quantity Unit Price Amount INCREASE ITEMS: 4 ADDITIONAL CONCRETE SIDEWALK LS 1.0 $1,800.00 $1,800.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 TOTAL INCREASE ITEMS $1,800.00 DECREASE ITEMS: $0.0 TOTAL DECREASE ITEMS $0.00 NET INCREASE---------------------------------------------------------------------------------------------- $1,800.00 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of ($1,800.00) Idadunil (add). An extension of 14 calendar days shall be allowed for completion of the project. ORIGINAL PREVIOUS ADDITIONS/DEDUCTIONS THIS ADDITION/PE4AWT9)-N TOTAL CONTRACT AMOUNT $178,362.00 $500.00IF $1,800.00 $180,662.00 Approved: Contractor: Cold Spring Granite Co. d/b/a Coldspring Dated: Approved: City of Hutchinson: Mayor: Gary Forcier Dated: 09/08/2015 Approved: City of Hutchinson - City Engineer: Kent Exner Dated: Approved: Cityof Hutchinson: City Administrator: Matt Jaunich Dated: 09/08/2015 CHANGE AUTHORIZATION Date:08/31 /2015 REPLACEMENT PIECES: ❑ Purchaser hereby pays the cost for the replacement pieces listed below. ❑ ADDITIONS ❑ DELETIONS ❑ MODIFICATIONS Purchaser hereby agrees to accept the changes specified and further agrees to pay the amounts as shown. TO: Oakland Cemetery ATTN: John Olson 1400 Adams Street SE Hutchinson, MN 55350 PHONE: 320-234-2583 FAX: 320-234-5644 JOB NO: 15-7188 - 1001289 NAME: Niche Shelter LOCATION: Hutchinson, MN Additional concrete sidewalk. Approximately 200 square feet. Labor and materials, must meet the same specifications as per the contract. Extension of contract time 14 calendar days. *Price DOES NOT include any applicable taxes. CURRENT TAXES WILL BE ADDED AT THE TIME OF THE INVOICING UNLESS AN APPROVED EXEMPT TAX CERTIFICATE HAS BEEN RECEIVED PRIOR TO INVOICING. Shop Drawings Weeks Shop Tickets Weeks ❑ Initial ❑ Partial ❑ Complete Delivery: Start delivery weeks after receipt of approved shop drawings, cutting lists or shop tickets with all pertinent cutting information & signed Change Authorization. Balance of delivery per mutually agreed upon schedules for shop drawing submission, approvals, & fabrication time. Please sian and return this Proposal & return via fax, this will authorize us to proceed. AMOUNT $1,800.00 *TOTAL $1,800.00 USD NOTE: This Change Authorization becomes part of and is specifically incorporated as a part of the existing contract and is subject to the same terms and conditions contained therein. Please sign and return a copy of this form and retain a copy for your records . No work will commence until this signed form is returned . ACCEPTED BY BUYER: Oakland Cemetery COLD SPRING GRANITE COMPANY Dan Kurowski BUYER PROPOSED BY: PROJECT MANAGER SIGNATURE: (Officer or Authorized Rep) DATE DATE CS -031-2 (MAY2013) 17482 Granite West Road, Cold Spring, MN 56320-4578 USA P:800-328-5040 P:320-685-3621 F:320-685-8490 Check Date Check 187320 187321 187322 187323 187324 187325 187326 187327 187328 187329 187330 187331 187332 187333 187334 187335 187336 187337 187338 187339 187340 187341 187342 187343 187344 187345 187346 187347 187348 187349 187350 187351 187352 187353 187354 187355 187356 187357 187358 187359 187360 187361 187362 187363 187364 187365 187366 187367 187368 187369 187370 187371 187372 187373 187374 187375 187376 187377 187378 187379 187380 187381 187382 187383 187384 187385 187386 187387 187388 187389 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Vendor Name •------------------------------------------------------------ ACE HARDWARE ADEL, JEAN AEM MECHANICAL SERVICES INC AHLGREN ELECTRIC ALPHA WIRELESS AMERESCO AMERICAN BOTTLING CO AMERICAN LEGAL PUBLISHING CORP AMERIPRIDE SERVICES ANDERSON, RICHARD ANDERSON, ROLANDE ANIMAL MEDICAL CENTER ON CROW RIVER ANSEEUW, JANET ANTHONY, SUSAN ARCTIC GLACIER USA INC. ARLT, BRUCE ARNESON DISTRIBUTING CO ARTISAN BEER COMPANY ASSURANT EMPLOYEE BENEFITS ASSURANT EMPLOYEE BENEFITS AUTO VALUE-GLENCOE B & B SPORTS B & R HOME AND BUSINESS REPAIR LLC BACH MAN,JEANETTE BACKES, JACKI BAILEY, SANDY BALDWIN SUPPLY COMPANY BARBERG,TIM BECKER, MARLYS BELLAND, WANDA BELLBOY CORP BENJAMIN, SHERRY BENNER, DAVID BENSON, CHARLES BENTON, JANICE BERNICK'S BETTER HALF EMBROIDERY BLAIR, JOE BLOMBERG, ROGER BOECKERMANN, DORTHY BOHN, PAMELA BOLFING, LEAH BOLTON & MENK INC. BRAUN INTERTEC CORP BREDEMUS, SANDRA BRINKMAN, HENRY BROCK, BARBARA BROUCEK, DANIEL BROWN, BONNIE BRUNSBERG,JANICE BRUNWALD, DONNA BUNCE,AL BURGARD, BETTY BUSCH, MAVIS BUSHMAN, RAQUEL BUSINESSWARE SOLUTIONS C & L DISTRIBUTING CAGE, DEB CARD, TIMOTHY CARLOS CREEK WINERY CARLSON, CURTIS CARNEY, HEIDI CARPENTER, LEE CARS ON PATROL SHOP LLC CENTRAL HYDRAULICS CENTRAL LANDSCAPE SUPPLY CHEMISOLV CORP CHIEFTIM EGGEBRAATEN CHRAST, GRACE CLARKE ENVIRONMENTAL MOSQUITO MANAG VMF-CONDUIT PVC 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT LOOK AT DEHUMIDIFIER, COMPRESSOR REPAIR EAST HALOGEN FIXTURES FOR ICE RIN MAINT & CONSOLE JULY 1_41`15-04 MISC BEVERAGES MN CODE OF ORDINANCES TOWEL, MOPS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT CAT & DOG BOARDING 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT ICE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT AUG PURCH AUG PURCH DENTAL INS FOR AUGUST 2015 LIFE & LTD INS FOR SEPT 2015 50 TO 1 FUEL CONE TRAILER ENCLOSED -WHEEL CHOCK WITH R HUNG 2 EXTERIOR SIGNS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT FASTERNERS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT AUG PURCH 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT MISC BEVERAGES KIWI, GRAY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT HUTCHINSON/HCD PAVEMENT REHAB SCHOOL RD SW -STREET IMPROV 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT CASH ADV FOR PRINCE SALE SHOW 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT HELMETS, CONCESSIONS, FASTPITCH HP ELITEBOOK REVOLVE 810 AUG PURCH 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT AUG PURCH 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 07 TAHOE, DEAD BATTERY CYLINDER DISASSEMBLY -BOBCAT 032K STEEL EDGING BORDER FLEX FERRIC CHLORIDE 38% REGISTRATION D. HATTEN CAR WASH ENVIRONMENTAL MOSQUITO AUGUST Amount 486.97 6.00 1,335.05 380.14 794.75 244,450.00 294.80 5,499.50 162.66 6.00 4.00 861.00 6.00 2.00 731.35 2.00 427.02 609.05 9,431.06 290.16 11.10 310.00 3.00 6.00 20.00 259.11 3.00 8.00 3.00 4,205.95 18.00 6.00 4.00 11.00 328.60 75.00 10.00 8.00 3.00 6.00 9.00 4,171.80 3.00 15.00 10.00 2,000.00 2.00 6.00 35.00 4.00 3.00 3.00 2,802.24 3,654.17 6.00 8.00 708.00 4.00 8.00 10.00 543.49 141.05 416.60 4,435.58 50.00 9.66 4,990.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Check Date -------------------------- 09/08/2015 Check ---------------------- 187390 Vendor Name ----------------------------------------------------------------- CLASSEN, ELVERA Description ----------------------------------------------------------------------------- 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT Amount 6.00 09/08/2015 187391 COBB, LORNA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187392 COBLEIGH, ARLENE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187393 COMDATA CORPORATION ADAPTIVE RC 458.91 09/08/2015 187394 COMMISSIONER OF TRANSPORTATION MATERIAL TESTING & INSPECTION 8/4/15 353.31 09/08/2015 187395 CONE, MARGARET 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187396 CONLIN, BARBARA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187397 CONRATH, PATRICE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187398 CORDES, DIANE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187399 CORPORATE MECHANICAL REPLACE ACTUATOR ON VAV #8 2,230.94 09/08/2015 187400 CROW RIVER AUTO & TRUCK REPAIR CHECK BRAKES- 2006 FORD FREESTAR 652.80 09/08/2015 187401 CROW RIVER WINERY AUG PURCH 763.81 09/08/2015 187402 DARNICK, CRAIG 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187403 DAY DISTRIBUTING AUG PURCH 6,146.00 09/08/2015 187404 DEBELE, LINDA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187405 DECKER, DEBI 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 36.00 09/08/2015 187406 DEREE, DAVID 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187407 DEROER, HENRY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187408 DPC INDUSTRIES INC SODIUM HYPO 12.5 1,335.64 09/08/2015 187409 DROP -N -GO SHIPPING INC SOIL & FILM SAMPLES TO PRINCE 419.33 09/08/2015 187410 DUININCKINC L1P15-01 #4 196,825.35 09/08/2015 187411 DUNDEE FLOWERS FOR FUNERAL D.MOON IN LAW 34.98 09/08/2015 187412 DUSBABEK, THOMAS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187413 E2 ELECTRICAL SERVICES INC TROUBLSHOOT EXHAUST FAN, FIRE SYSTEM STR 268.69 09/08/2015 187414 EAST SIDE OIL COMPANIES FILTERS, SORBENTS 189.00 09/08/2015 187415 ECOLAB PEST ELIMINATION RODENT PROGRAM 144.28 09/08/2015 187416 EDEVOLD, TAMARA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187417 EKLUND, HARRY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187418 ELMER, ANNIE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187419 ESS BROTHERS & SONS CASTED MANHOLE COVER-SEWER,STORM,BLANK 2,464.00 09/08/2015 187420 ESSLINGER, JEAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187421 ESTREM, PAT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187422 EVENS, BRIDGET 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187423 EVERS, DIANE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187424 EXTREME BEVERAGE LLC MISC BEVERAGES 139.60 09/08/2015 187425 FAIRBANK, DOROTHY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187426 FARMER BROTHERS COFFEE COF CAFE, MCG PREMIUM 507.73 09/08/2015 187427 FASTENAL COMPANY 12-24X2 1/4 FPHTK4W/W 156.83 09/08/2015 187428 FEDOR, MIKE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 22.00 09/08/2015 187429 FELLER, JOAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 19.00 09/08/2015 187430 FIELD, GARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187431 FIRE SAFETY USA INC LT JOHN TRAVIS HELMET 46.00 09/08/2015 187432 FIRST ADVANTAGE LNS OCC HEALTH SOLU ANNUAL ENROLLMENT, DRUG TEST 557.50 09/08/2015 187433 FIRST CHOICE FOOD & BEVERAGE SOLUTI COL 1.5 304.00 09/08/2015 187434 FISK, RHONDA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187435 FLYGARE, KRIS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187436 FORBES, JENNIFER 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 60.00 09/08/2015 187437 FULTON, ROSE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187438 G & K SERVICES MATS & TOWELS 175.35 09/08/2015 187439 GAVIN WINTERS TWISS THIEMANN & LONG FLAT FEE AGREEMENT -JULY 3,768.75 09/08/2015 187440 GIRLS SOFTBALL ASSN FINAL REIB OF FEES 2,010.00 09/08/2015 187441 GITIS, SHELDON 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187442 GLOCKNER, MARTIE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187443 GNOTKE, DEB 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187444 GOEHRING, SHARON 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187445 GOLDAMMER, DAVID 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187446 GOSTONCZIK, MARGARET 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187447 GRAINGER VAN STONE FLANGE 73.41 09/08/2015 187448 GRAPE BEGINNINGS, INC AUG PURCH 1,412.25 09/08/2015 187449 GRINDER WEAR PARTS INC. V2 TIP T7X 6 2,333.20 09/08/2015 187450 HAGEN, DON 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 12.00 09/08/2015 187451 HALL, DENISE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187452 HAMILTON, DANA CANCELED SWIM LESSON FOR MYLEE 38.00 09/08/2015 187453 HANCOCK CONCRETE PRODUCTS LLC APRON 1,859.40 09/08/2015 187454 HANSEN, KIM 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 18.00 09/08/2015 187455 HANSON & VASEK CONSTRUCTION PO#19088 AIRPORT CURB & SIDEWALK 1,860.00 09/08/2015 187456 HANSON, KATHLEEN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187457 HANSON, MARIT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187458 HANSON, TY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 30.00 09/08/2015 187459 HART, NORMA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Check Date -------------------------- 09/08/2015 Check ---------------------- 187460 Vendor Name ----------------------------------------------------------------- HAUKOS, LORI Description ----------------------------------------------------------------------------- 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT Amount 6.00 09/08/2015 187461 HAWKINS INC SODIUM HYDROXIDE 4,071.36 09/08/2015 187462 HAYTHORN, SUE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187463 HD SUPPLY WATERWORKS LTD OMNI 4" C2 1000 GAL METER 3,118.31 09/08/2015 187464 HEADRICK, BARBARA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 50.00 09/08/2015 187465 HEATH, CAROL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 20.00 09/08/2015 187466 HECHT, JENNIFER 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187467 HENKEL, JAMES 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187468 HENNING, GERALD 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 20.00 09/08/2015 187469 HENRY'S WATERWORKS INC NOZZLE CAP GASKET 441.09 09/08/2015 187470 HILDEBRANT, WAYNE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187471 HILLYARD/HUTCHINSON TOUCHLESS TOWEL, TOWELS 134.42 09/08/2015 187472 HODGIN,THERON 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 50.00 09/08/2015 187473 HOKENESS, SHARON 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187474 HOLMBOE, JOHN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187475 HOLMES, KAY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187476 HULN, MALINDA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 12.00 09/08/2015 187477 HUSCHLE, MARIAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 26.00 09/08/2015 187478 HUTCHFIELD SERVICES INC COMMERCIAL JANITORIAL -AUG 1,512.28 09/08/2015 187479 HUTCHINSON AREA HEALTH CARE SEPT CAM & SA 2,166.00 09/08/2015 187480 HUTCHINSON CO-OP DIESEL 76.69 09/08/2015 187481 HUTCHINSON CONVENTION & VISITORS BU JULY 2015 LODGING TAX 9,608.33 09/08/2015 187482 HUTCHINSON FIRE & SAFETY AMER N955235 RECHARGE FROM USE CAR ON MA 30.40 09/08/2015 187483 HUTCHINSON HEALTH 2ND QTR EAP 2015 1,339.00 09/08/2015 187484 HUTCHINSON SENIOR ADVISORY BOARD TOUR REIMBURSEMENT-GAMMELGARDEN AND STAT 2,200.00 09/08/2015 187485 HUTCHINSON WHOLESALE ELEC TAPE 136.79 09/08/2015 187486 HUTCHINSON, CITY OF WATER SERV 7/1/15-7/31/15 171.55 09/08/2015 187487 INTERSTATE BATTERY SYSTEM MINNEAPOL REBUILD, 31-MHD 576.70 09/08/2015 187488 INTOXIMETERS INC DRYGAS, MOUTHPIECE 200.00 09/08/2015 187489 ISAACS, CINDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 84.00 09/08/2015 187490 JACK'S UNIFORMS & EQUIPMENT PAIR LIGHT GOLD/MIDNIGHT 884.08 09/08/2015 187491 JACKSON, CINDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187492 JACKSON, JOHN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 12.00 09/08/2015 187493 A TAYLOR DIST OF MN AUG PURCH 1,109.57 09/08/2015 187494 JOHNSON BROTHERS LIQUOR CO. AUG PURCH 22,730.46 09/08/2015 187495 JOHNSON, CURT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187496 JOHNSON, DEAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187497 JOHNSON, KAREN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187498 JOHNSON, RICHARD 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187499 JOHNSON, ROSEMARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187500 JOHNSON, SALLY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 45.00 09/08/2015 187501 JOHNSON, TERRY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187502 JORDAHL, JIM ADAPTED REC DANCE 7/21/15 300.00 09/08/2015 187503 JORDAN, LOWELL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187504 JUBA, JULIE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187505 JUUL CONTRACTING CO EMERG- STORM SEWER DAMAGE COLUMBARIA SHE 55,285.52 09/08/2015 187506 KAHL, DENNIS MOWING 825.00 09/08/2015 187507 KING, L.E. 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187508 KLAWITTER, RICK 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187509 KNACK, TED 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187510 KNACKE, LES 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187511 KNEWTSON, ANNE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187512 KNIFE RIVER 4500 EXT GRANITE 1,714.93 09/08/2015 187513 KOBOW, BECKY U OF M IMPROVED LEADERSHIP WORKSHOP 178.95 09/08/2015 187514 KOERNER, KATHY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187515 KRANZ LAWN & POWER GRASSHOPPER, HYDRO MAX 37.90 09/08/2015 187516 KUSSER, PHIL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 120.00 09/08/2015 187517 KVAM, META 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187518 LAHN, MARGARET 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 7.00 09/08/2015 187519 LAMPE, JOAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187520 LANDSCAPE CONCEPTS INC REDMOND LINDEN PLANTED AT 312 STONEY -ASH 457.01 09/08/2015 187521 LANDY LODGE BAR & GRILL EDA MEETING 89.02 09/08/2015 187522 LANG, MARGARET 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 15.00 09/08/2015 187523 LANGNESS, JENNY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187524 LARSEN, ALVIN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187525 LEAGUE OF MN CITIES 2015 LMC DUES 12,269.00 09/08/2015 187526 LEAGUE OF MN CITIES ANNUAL DUES-G.FORCIER 30.00 09/08/2015 187527 LEINTZ, MARSHA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187528 LENT, BECKY CANCELED SHELTER RESERVATION 8/29/15 40.00 09/08/2015 187529 LERVICK, KATHRYN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Check Date ------------------------ _i7_----------------------------------_ 09/08/2015 Check ---------------------- 187530 Vendor Name ----------------------------------------------------------------- LEXISNEXIS Description ----------------------------------------------------------------------------- JULY 2015 Amount 151.41 09/08/2015 187531 LIDSTROM, NANCY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187532 LOCHER BROTHERS INC AUG PURCH 47,876.53 09/08/2015 187533 LOGIS NETWORK THRU 8/1/15 B PETERSON 1,312.50 09/08/2015 187534 LOWREY, BOBBI 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187535 LTC PROPERTIES & BRANDEL ELECTRIC COMMERCIAL REHAB LOAN 2,212.50 09/08/2015 187536 LTC PROPERTIES & ULTRA CONCRETE COMMERCIAL REHAB LOAN 3,700.00 09/08/2015 187537 LTC PROPERTIES AND COMMERCIAL REHAB LOAN 224.95 09/08/2015 187538 LTC PROPETIES LLC & COMMERCIAL REHAB LOAN 23,862.55 09/08/2015 187539 MACQUEEN EQUIP INC DRAG SHOE PLATE 2,000.99 09/08/2015 187540 MANKATO CITY CENTER HOTEL D.MOON,M.HAGEN,J.MCRAITH 656.74 09/08/2015 187541 MARTS, ANN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187542 MARTY, SANDRA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187543 MATHIASON, KEITH 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187544 MATTES, STEVE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187545 MAY, CAROLYN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187546 MAZANYI, SUE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187547 MCCAIN, NANCY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187548 MCCORMICK,TRACI WORK SHOES 75.00 09/08/2015 187549 MCDONALD, JOHN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 18.00 09/08/2015 187550 MCDONALD, OLEE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187551 MCLEOD COUNTY ATTORNEY PROCEEDS FROM FORFEITED VEHICLE #1500273 260.25 09/08/2015 187552 MCNEELY, TRACY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187553 MEI TOTAL ELEVATOR SOLUTIONS ELEVATOR WOULDN'T RUN AFTER POWER OUTAGE 491.00 09/08/2015 187554 MELBO, BRANT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 21.00 09/08/2015 187555 MENARDS HUTCHINSON VMF PROJECT- CLAMP,ELBOW 416.09 09/08/2015 187556 MILLER, EILEEN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187557 MILLER, KAREN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187558 MILLER, LYNNE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 18.00 09/08/2015 187559 MINNEAPOLIS, CITY OF APS TRANS FEES FOR JULY 2015 87.30 09/08/2015 187560 MINNESOTA CHIEFS OF POLICE NATIONAL DISPATCHER SELECTION TEST SELF 1,201.00 09/08/2015 187561 MINNESOTA MUNICIPAL BEVERAGE ASSOC REGIONAL MEETING 105.00 09/08/2015 187562 MINNESOTA RECREATION & PARK ASSN CONF PACKAGE -D. MOON, M.HAUGEN,J.MCRAITH 1,040.00 09/08/2015 187563 MINNESOTA STATE HORTICULTURAL SOCIE OVERPYMT OF CREEKSIDE INVOICE #46072 20.00 09/08/2015 187564 MINNESOTA SUPREME COURT REGISTRATION M.SEBORA 254.00 09/08/2015 187565 MINNESOTA VALLEY TESTING LAB BOD 7,976.23 09/08/2015 187566 MN BCA-CJTE DMT -G ONLINE RECERT. A BERRY 75.00 09/08/2015 187567 MN DEPT OF LABOR & INDUSTRY/CODE 711741 PRESSURE VESSEL -FORESTRY 10.00 09/08/2015 187568 MN DEPT OF LABOR & INDUSTRY/CODE BOILER, PRESSURE VESSEL 60.00 09/08/2015 187569 MN DEPT OF LABOR & INDUSTRY/CODE PRESSURE VESSEL 10.00 09/08/2015 187570 MN DEPT OF LABOR & INDUSTRY/CODE 24460 BOILER 10.00 09/08/2015 187571 MN DEPT OF LABOR & INDUSTRY/CODE 48160 PRESSURE VESSEL 10.00 09/08/2015 187572 MN DEPT OF LABOR & INDUSTRY/CODE 30512 PRESSURE VESSEL 10.00 09/08/2015 187573 MN DEPT OF LABOR & INDUSTRY/CODE 218904 PRESSURE VESSEL 10.00 09/08/2015 187574 MN STATE FIRE CHIEFS ASSOCIATION 2015 ANNUAL CONF TICKET-C.STOTTS 275.00 09/08/2015 187575 MOERKE, RUSSEL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187576 MOLECULAR REPAIR CONCEPTS INC BELZONA 20111 D&A HI BUILD 269.30 09/08/2015 187577 MORGAN, SANDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187578 MURPHY, DAWN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187579 NELSON, DAVID 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 18.00 09/08/2015 187580 NETTERLUND, GENEVIEVE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187581 NEWELL, LU 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187582 NIBBE, JOHN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187583 NORTH CENTRAL LABORATORIES SULFURIC ACID 184.14 09/08/2015 187584 NORTHERN STATES SUPPLY INC CXA-BPA, N2H 138.16 09/08/2015 187585 NU -TELECOM SEPT PHONE SERVICE 4,042.00 09/08/2015 187586 O'REILLY AUTO PARTS IGN COIL, STATOR ASSY 219.65 09/08/2015 187587 OFFICE DEPOT PAPER 112.97 09/08/2015 187588 OFFICE OF MN IT SERVICES JULY SERVICE 100.70 09/08/2015 187589 OFFICE OF SECRETARY OF STATE NOTARY APP -J JACOBSEN 120.00 09/08/2015 187590 OLSEN, CHARLENE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187591 OLSON, KELLY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187592 PARIZEK, NANCY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187593 PARKS, RECREATION & COMM ED ADVERTISING 2015 FALL BROCHURE STORMWATE 275.00 09/08/2015 187594 PAUSTIS WINE COMPANY AUG PURCH 2,852.51 09/08/2015 187595 PENAZ, AMY REFUND FOR FOOTBALL PANTS 25.00 09/08/2015 187596 PERRY, DIANA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187597 PETERMAN, SANDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187598 PETERSON, LORI 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187599 PETRIK, MARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Check Date ------------------------ _i7_-------------------------------- 09/08/2015 Check ---------------------- 187600 Vendor Name ----------------------------------------------------------------- PHILLIPS WINE &P1 ITS Description ----------------------------------------------------------------------------- AUG PURCH Amount 14,011.36 09/08/2015 187601 PIONEER MANUFACTURING CO BRITE STRIPE WHITE 1,410.00 09/08/2015 187602 PIONEERLAND LIBRARY SYSTEM 3RD QTR 2015 FUNDING 40,439.25 09/08/2015 187603 POSTMASTER POSTAGE SEPT 1,600.00 09/08/2015 187604 POWELL, DONNALD 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 60.00 09/08/2015 187605 PRAUS, CARRIE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 35.00 09/08/2015 187606 PRIEVE LANDSCAPING & LAWN CARE PULL WEEDS 160.31 09/08/2015 187607 PRO AUTO MN INC. OIL CHANGE- 2014 FORD F150 PICKUP 42.24 09/08/2015 187608 PROW, JANE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187609 QUADE ELECTRIC RIVERSIDE PARK- REPLACED GFCI 424.40 09/08/2015 187610 QUALITY FORKLIFT SALES & SERV INC WARRANTY WORK 216.61 09/08/2015 187611 RJ LTRANSFER FREIGHT 1,065.90 09/08/2015 187612 RADABAUGH, ELEANOR 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187613 RADKE, SANDRA 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 12.00 09/08/2015 187614 RANDY'S BOBCAT SERVICE MATERIAL 70.00 09/08/2015 187615 RANISATE, MURIEL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 14.00 09/08/2015 187616 RBSCOTT EQUIPMENT 550 HINGE CLIP 219.19 09/08/2015 187617 RDO EQUIPMENT CO. NEW 2015 ACS INDUSTRIES 18,550.00 09/08/2015 187618 REDLINE SYSTEMS INC. WOOD TEMPLATES 150.00 09/08/2015 187619 REINER ENTERPRISES INC FLATBED TRUCKING 8/13-8/14 1,404.94 09/08/2015 187620 REINHAND, GARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187621 RICKEMAN, SCOTT 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 115.00 09/08/2015 187622 RICKEMAN, TRACY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 18.00 09/08/2015 187623 RIDGEWAY, WAYNE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187624 RIPKA, IRENE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187625 RIPPE PRINT COMMUNICATIONS PROFESSIONAL PLANTING MIX 558.32 09/08/2015 187626 RJO CORPORATE TOURNEY T-SHIRTS 2,778.00 09/08/2015 187627 ROYALTIRE RECON WHEEL OR REPAIR ONLY 559.32 09/08/2015 187628 RUNNING'S SUPPLY PURCHASES 1,479.55 09/08/2015 187629 SACKMAN, DARREL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187630 SAM'S CLUB MISC PURCH 713.07 09/08/2015 187631 SAMPSON, ELISE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 10.00 09/08/2015 187632 SCHATZ CONSTRUCTION INC HATS CARWASH DOOR 1,614.00 09/08/2015 187633 SCHJENKEN, EDWARD 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187634 SCHMIDGALL, DENNIS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187635 SCHRACLER, MARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187636 SCHULTZ, DOUGLAS 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187637 SCHULTZ, LORAYNE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187638 SCHUSTER, MARK 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187639 SCR -CENTRAL IMPORT/SPECIALTY COOLER IS NOT COOLING 437.00 09/08/2015 187640 SEH VMF-ADDT'L ENGINEERING HUTCH GENERAL EN 13,784.74 09/08/2015 187641 SELLERS, CHRISTINE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 12.00 09/08/2015 187642 SEPPELT, MILES MEETING LUNCH- MADE IN MCLEOD, RAMSEY 132.43 09/08/2015 187643 SEVENICH, WENDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 4.00 09/08/2015 187644 SHAW, KAREN YOGA/PILATES-AUGUST 125.00 09/08/2015 187645 SHECK, PATTI 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187646 SHI INTERNATIONAL CORP 36 MO CLOUD END POINT PROT 6,450.00 09/08/2015 187647 SHOPKO BOOKCASE, FLUTED BASKET 228.12 09/08/2015 187648 SHRED -IT USA INC ON SITE SHRED- AUG 48.31 09/08/2015 187649 SHUENEMAN, CRYSTAL 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187650 SIEGFRIED, ERVIN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187651 SILVERNAGEL, JOLENE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 8.00 09/08/2015 187652 SIMONSON LUMBER CO VMF-CONST ADHESIVE OSI 51.38 09/08/2015 187653 SKOG, DEBORAH 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187654 SKYVIEW DAIRY INC COMPOST HAULED 3,517.92 09/08/2015 187655 SMITH, RENAE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187656 SNYDER, RENAE 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187657 SOUTHERN WINE & SPIRITS OF MN AUG PURCH 18,416.63 09/08/2015 187658 SPARTAN STAFFING WK ENDING 8/16/15 9,892.25 09/08/2015 187659 SPAULDING, MARY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 39.00 09/08/2015 187660 SPRIK, DORTHY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187661 STACHOWSKI, CINDY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 09/08/2015 187662 STALOCH, SUSAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187663 STANDARD PRINTING BUSINESS CARDS-TGRATKE,DMOON,MHAUGEN,JMC 160.00 09/08/2015 187664 STAPLES ADVANTAGE BARD MARKER,PAPER PLATES, PAPER, POST IT 1,257.24 09/08/2015 187665 STARK, DEBBY 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 9.00 09/08/2015 187666 STARK, TOM 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 2.00 09/08/2015 187667 STATE OF MINNESOTA PROCEEDS FROM FORFEITED VEHICLE #1500273 130.12 09/08/2015 187668 STEFFENSON, JEAN 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 6.00 09/08/2015 187669 STELTEN, DICK 2015 CREEKSIDE WONDERBLEND MAIL -IN REBAT 3.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/08/2015 - 09/08/2015 Check Date -------------------------- 09/08/2015 Check ---------------------- 187670 Vendor Name ----------------------------------------------------------------- STEPHENS PUBLISHING Description ----------------------------------------------------------------------------- FIRE PREVENTION SUPPLIES-FIRE TRUCK FOLD Amount 132.50 09/08/2015 187671 STOMBERG, ROD 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 14.00 09/08/2015 187672 STRATEGIC EQUIPMENT AND SUPPLY CAN COOLERS 791.58 09/08/2015 187673 STREICH TRUCKING HAUL 8/19/15 2,850.00 09/08/2015 187674 SUNCOAST GARDEN PRODUCTS INC. TIGER HAMMOCK CYPRESS BLEND 3,835.20 09/08/2015 187675 SWANSON, CAROLYN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187676 SWENSON, CAROL 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187677 SWIFT, ELORES 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187678 TASC H S A PLAN ADMIN FEES 10/1/15 - 12/31/15 1,095.60 09/08/2015 187679 TASC October 2015 Flex Adm. Fees 72.24 09/08/2015 187680 TEK MECHANICAL PERFORM PM AT 10 FRANK ST 3,251.94 09/08/2015 187681 THOMAS, NORMA 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187682 THOMPSON, DANA 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 4.00 09/08/2015 187683 THONE, GREG 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 3.00 09/08/2015 187684 TILLBERG, JULIE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 4.00 09/08/2015 187685 TKO WINES AUG PURCH 745.80 09/08/2015 187686 TOLLEFSON, CHERYLE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187687 TOWMASTER INC. WING HYD FRONT POST SIDE SHIFT-ST 522 528.00 09/08/2015 187688 TOWN & COUNTRY FENCE FENCE INSTALL TO MATCH OAKLAND CEMETERY 3,950.00 09/08/2015 187689 TOWN & COUNTRY TIRE SWAP OUT MONSTER TIRE BY HAND-218 42.00 09/08/2015 187690 TRIPLE G COMPANIES CHANGE ORDER TO EXITING VMF BACKSTOP PRO 107,875.00 09/08/2015 187691 TRUE FABRICATIONS MISC 15.04 09/08/2015 187692 TRYGESTAD, FRANCES 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 3.00 09/08/2015 187693 TURBES, LYLE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 12.00 09/08/2015 187694 TURNQUIST, L.E. 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 20.00 09/08/2015 187695 TWO WAY COMMUNICATIONS INC COMMUNICATIONS 155.70 09/08/2015 187696 ULRICH, PEG 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187697 USA BLUE BOOK ALUMINUM HYDRANT 202.34 09/08/2015 187698 VALERIUS, JOHN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187699 VANG EN, STEVE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 27.00 09/08/2015 187700 VANSCHOONHOVEN, SUE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 15.00 09/08/2015 187701 VANWAMBEKE, PETE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 3.00 09/08/2015 187702 VEEN, DAYLE 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 9.00 09/08/2015 187703 VERIZON WIRELESS JUL24-AUG23'15 USAGE 2,859.64 09/08/2015 187704 VIKING BEER AUG PURCH 18,182.70 09/08/2015 187705 VIKING COCA COLA MISC BEVERAGES 434.75 09/08/2015 187706 VIKING SIGN & GRAPHICS INC 4X15' POLY METAL EXTERIOR SIGNS 1,376.13 09/08/2015 187707 VINOCOPIA INC AUG PURCH 882.50 09/08/2015 187708 VISUAL EFFECTS SIGN & GRAPHICS CO SUPREME BAG 34.80 09/08/2015 187709 VOS CONSTRUCTION INC ROOF MAINT & MASONRY CAULKING @ REC CENT 2,260.00 09/08/2015 187710 WALTER, JOANN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 4.00 09/08/2015 187711 WARNER, KATHRYN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 3.00 09/08/2015 187712 WASTE MANAGEMENT OF WI-MN VMF - OLD DUGOUT ROOTS 340.14 09/08/2015 187713 WENDEL, JESSICA 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187714 WEST CENTRAL SANITATION INC. 1700 BUTLER FIELD- AUG 92.22 09/08/2015 187715 WESTBY, KADA 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187716 WICKMAN, JEREMY 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187717 WICKMAN, PAM 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 2.00 09/08/2015 187718 WILBUR, JIM 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 6.00 09/08/2015 187719 WILLIAMS, MARSHA 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 3.00 09/08/2015 187720 WINE MERCHANTS INC AUG PURCH 600.00 09/08/2015 187721 WIRTZ BEVERAGE MINNESOTA AUG PURCH 10,030.70 09/08/2015 187722 WITTE, MARVIN SHELTER CANCELLED DUE TO RAIN 40.00 09/08/2015 187723 WM MUELLER & SONS - SEPARATE CK L3P15-03 #2 302,619.60 09/08/2015 187724 WOHLRABE, FAYELYN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 10.00 09/08/2015 187725 WOODS, KAREN 2015 CREEKSIDE WONDERBLEND MAIL-IN REBAT 4.00 09/08/2015 187726 ZOHO CORPORATION ANNUAL SUBSCRIPTION FEE MANAGEENGINE 995.00 TOTAL 1,424,889.79 09/04/2015 Check Date 11:15 AM Bank Check Number Check Register Report For Check Dates 09/04/2015 to Name For 09/04/2015 Check Gross Physical Check Amount Direct Deposit Page 1 of 1 Status 09/04/2015 1 187318 NCPERS Minnesota 320.00 320.00 0.00 Open 09/04/2015 1 187319 HART 618.76 618.76 0.00 Open 09/04/2015 1 EFT23 EFTPS 64,222.49 64,222.49 0.00 Cleared 09/04/2015 1 EFT24 AFLAC 131.77 131.77 0.00 Cleared 09/04/2015 1 EFT25 MN Child Support System 41.87 41.87 0.00 Cleared 09/04/2015 1 EFT26 Minnesota Dept. of Revenue 11,951.06 11,951.06 0.00 Cleared 09/04/2015 1 EFT27 PERA 43,114.29 43,114.29 0.00 Cleared 09/04/2015 1 EFT28 TASC-Flex 1,855.40 1,855.40 0.00 Cleared 09/04/2015 1 EFT29 TASC-HSA 11,687.08 11,687.08 0.00 Cleared 09/04/2015 1 EFT30 ICMA 2,230.00 2,230.00 0.00 Cleared 09/04/2015 1 EFT31 ING 1,050.00 1,050.00 0.00 Cleared 09/04/2015 1 EFT32 MNDCP 250.00 250.00 0.00 Cleared Totals: Number of Checks: 012 137,472.72 137,472.72 0.00 Total Physical Checks: 2 Total Check Stubs: 10 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Public Hearing - TIF Modification Department: EDA LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Over the years various "Tax Increment Financing" (TIF) districts have been established in and around downtown to help remove blight and facilitate redevelopment. Recent examples include the State Theatre and Cornerstone Commons projects. The Hutchinson Housing & Redevelopment Authority (HRA) and Economic Development Authority (EDA) are looking to update the TIF plans, budgets and boundaries of various TIF districts so that available tax increment can be used to repair or remove blighted properties and promote redevelopment. The proposed new boundaries of Development District # 4 are shown on a map in the "Tax Increment Financing Districts Overview" document included in your Council packet. These boundaries enclose a number of blighted properties in and around Hutchinson's downtown and industrial park. Jean Ward, HRA Director and Miles Seppelt, EDA Director will be on hand to provide a short presentation and answer any questions the City Council or the public might have. BOARD ACTION REQUESTED: Adoption of Resolution xxxxxx, approving the proposed modifications Fiscal Impact: $ 0.00 Funding Source: N/A 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: Council member CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 14451 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND ADOPTING MODIFICATIONS TO THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NOS. 5,6,7,8,11,4-13, AND 4-14 THEREIN. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City Council (the "Council") of the City of Hutchinson (the "City") has heretofore established Development District No. 4 and adopted the Development Program therefor and established Tax Increment Financing District Nos. 5, 6, 7, 8, 11, 4-13, and 4-14 and adopted the Tax Increment Financing Plans therefor. It has been proposed that the City modify the Development Program (the "Development Program Modification") for Development District No. 4 and modify the Tax Increment Financing Plans (the "Tax Increment Plan Modifications" or together with the Development Program Modification, the "Modifications") for Tax Increment Financing District Nos. 5, 6, 7, 8, 11, 4-13, and 4- 14 (the "Districts"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133, and Sections 469.174 to 469.1794, inclusive as amended (the "Act"), all as reflected in the Modifications, and presented for the Council's consideration. 1.02. The Council has investigated the facts related to the Modifications and has caused the Modifications to be prepared. 1.03. The Boards of the Hutchinson Economic Development Authority and Housing and Redevelopment Authority (together the "Authorities"), on , 2015, adopted the Modifications, subject to approval by this City Council following a public hearing as described below, and transmitted the Modifications to this City Council for consideration. 1.04 The members of the Board of County Commissioners of McLeod County (the "County") and the Board of Education of Independent School District No. 423 (the "School District") have been given an opportunity to meet with the City and the Authorities and comment on the Modifications. Pursuant to Minnesota Statutes, Section 469.175, subdivision 3, this Council, on September 8, 2015, conducted a public hearing on the desirability of approving the modifications. Notice of the public hearing was duly published as required by law in the Hutchinson Leader, the official newspaper of the City, on August 26, 2015. The City and the Authorities have not received any verbal or written comments on the Modifications from the County or the School District after providing the County and the School District boards with information on the fiscal and economic implications of the Modifications not less than 30 days before the date of the public hearing. 1.05. In addition to the notice and opportunity as described above, as required by Minnesota Statutes, Section 469.175, subdivision 2a, the City and the Authorities, not less than 30 days before the publication of the notice of public hearing referred to above, delivered written notice to the members of the Board of County Commissioners of McLeod County who represent the Districts. The notice contained a general description of the boundaries of the Districts, the proposed development activities to be undertaken therein, an offer by representatives of the City and the Authority to meet and discuss the proposed Modifications with the county commissioners and a solicitation of the commissioners' comments with respect to the Districts. 1.06. The City is expanding the boundaries of Development District No. 4. 1.07. The City is not modifying the boundaries nor term of the Districts. Section 2. Findings for the Modifications 2.01. The Council hereby reaffirms the original findings for the Districts, namely that when the Tax Increment Financing District Nos. 5, 6, 7, 11, 4-13, and 4-14 were established, they were established as "redevelopment districts" within the meaning of Minnesota Statutes, Section 469.174, Subd. 10 and when Tax Increment Financing District No. 8 was established, it was established as a "housing district" within the meaning of Minnesota Statutes, Section 469.174, Subd. 12. In addition, the City makes the following findings: Contingent upon City Planning Commission approval, the Modifications conform to the general plan for development or redevelopment of the City as a whole. The reason for supporting this finding is that the Modifications will generally complement and serve to implement policies adopted in the City's comprehensive plan. IL The Modifications will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 by private enterprise. The reason for supporting this finding is that the development activities are necessary so that development and redevelopment by private enterprise can occur within Development District No. 4. III. The development and redevelopment efforts, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, with respect to Tax Increment Financing Districts 5, 6, 7, 11, 4- 13, and 4-14, the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Tax Increment Financing District permitted by the Modifications. Therefore, the use of tax increment financing from each of the Tax Increment Financing Districts is deemed necessary since private developers could not economically develop the projects without the proposed subsidy. Section 3. Public Purpose 3.01. The adoption of the Modifications conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up, to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. Section 4. Approval and Adoption of the Modifications; Filing. 4.01. The Modifications are hereby approved contingent upon approval by the City Planning Commission and shall be placed on file in the office of the City Administrator. Approval of the Modifications does not constitute approval of any project or a development agreement with any developer. 4.02. The staff of the City are authorized to file the Modifications with the Commissioner of Revenue, the Office of the State Auditor and the McLeod County Auditor. 4.03. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modifications and for this purpose to negotiate, draft, prepare and present to this Council for its consideration all further modifications, resolutions, documents and contracts necessary for this purpose. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: September 8, 2015 Mayor (Seal) ATTEST: City Administrator Tax Increment Financing Districts Overview City of Hutchinson Modification to TIF District Nos. 5, 6, 7, 8, 11, 4-13, & 4-14 And Development District No. 4 The following summary contains an overview of the basic elements of the Modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 5, 6, 7, 8, 11, 4-13, and 4-14 as well as the Modification to the Development Program for Development District No. 4. More detailed information on each of these topics can be found in the complete Tax Increment Financing Plans and Development Program. Proposed action: ➢ Modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 5, 6, 7, 8, 11, 4-13, and 4-14 (the "TIF Plan Modifications"). Modification to the Development Program for the expansion of Development District No. 4, which include the TIF Plan Modifications, which represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4. Type of TIF Districts: TIF District Nos. 5, 6, 7, 11, 4-13, and 4-14 are redevelopment districts. TIF District No. 8 is a housing district. Proposed ➢ TIF District No. 5 is being modified in order to modify the budget, to Development: reflect updates in legislation, to identify parcels for acquisition and to confirm the application of the frozen tax rate due to the satisfaction of the deficit in the Deficit TIF District. TIF District No. 8 is being modified in order to update the budget to facilitate various programs outlined in the TIF Plan. The City intends to work with the Hutchinson HRA in order to use available tax increment to acquire parcels for acquisition, renovation, and redevelopment for low to moderate income residents within the City. Development District No. 4 is being modified to expand the boundaries. TIF District Nos. 6, 7, 11, 4-13, and 4-14 are being modified to reflect the expansion of the boundaries of Development District No. 4. Administrative fee: Up to 10% of annual increment, if costs are justified. EHLERS LEADERS IN PUBLIC FINANCE Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement: fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. Page 2 isEHLERS LEADERS IN PUBLIC FINANCE M r M 44 M Mtrict No. 14 ITIF District No. I II ITIF DLstrict h{i ITIF District No. 13 1 TTF District [; sWt ITIF Di.StrietNo. 61 Tax Increment Financing Districts Devei-opment District No. 4 City of F iutcN nson -McLeod County, Minnesota le Baki kid 9kiea of Developkni�nt Dktrlct N& N 5 As ofAugust 26, 2015 Draft for Public Hearing Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 4-8 (a housing district) within Development District No. 4 City of Hutchinson McLeod County State of Minnesota Originally Adopted: August 23, 1994 Modification No. 1 Public Hearing Date: September 8, 2015 40 EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-8 Foreword The Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 8 (the "TIF District") is being modified to update the budget, to identify new parcels for acquisition, and to bring the TIF Plan into conformance with current statutory guidelines. This includes modifications to the following sections of the TIF Plan: A, B, F, G, H, I, L, N, O, Q, T, and Y. Section Z and Exhibit II -B have also been added to the TIF Plan. The housing needs of Hutchinson are varied and impacted by many forces, including job growth, unemployment rates, workforce wages, construction and development costs, interest rates, foreclosure rates, tax forfeitures and demographic changes. The available TIF housing funds from Housing District No. 8 will help to meet some of the City's future, community housing needs for low and moderate income residents. The following lists potential housing programs within the TIF housing plan which include, but are not limited to: • Housing rehab for low and moderate income residents of the city help to address deferred maintenance and improve neighborhoods is an immediate priority. Rehab programs help stabilize or improve neighborhood housing values. Available TIF Housing Rehab Programs may include both owner occupied and rental rehabilitation and may be leveraged with other programs when available. Owner Occupied and Rental Rehab Programs have been on-going activities within the City of Hutchinson. • Owner occupied accessibility loans address the accessibility needs of an aging and disabled population. • Purchase of substandard properties to either demolish or rehab has been an ongoing effort of the City and HRA to improve neighborhoods and stabilize or improve neighborhood housing values. • Gap financing to assist in the development of housing. Gap financing in the form of TIF for Augusta homes for the development of Century Court Apartments, value gap for acquisition/demolition/re-sale in existing neighborhoods and affordability gap in the Rolling Meadows and Rolling Meadows East developments have been used in the past to spur housing development. • Land write downs are a TIF eligible expenditure to encourage new housing development or redevelopment and are a tool that may be employed to facilitate additional workforce housing or housing due to demographic changes. A. Statutory Authority It is found that there is a need for new development within the corporate limits of the City of Hutchinson (the "City") (the 'Development District") to provide employment opportunities, to improve the tax base and to improve the general economy of the City, McLeod County (the "County"), and State of Minnesota. It is found that the area within the Development District is potentially more useful and valuable than has been realized under existing development, is less productive because of the lack of proper utilization and lack of investment, and is not contributing to the tax base to its full potential. There exists areas where public involvement is necessary to cause development and redevelopment. To this end, the City has certain statutory powers pursuant to Minnesota Statutes, Sections 469.124 to 469.134 to create municipal development districts. In addition, the City is authorized to establish a tax increment district pursuant to Minnesota Statutes, Sections 469.174 to 469.179 as amended to assist in financing public costs related to this project. Tax increments are derived only from the increased amount of taxes which are paid on a parcel of property after the construction of a new structure on the parcel has occurred. It is hereby found that there is a need to provide funds for property acquisition, site improvements, site costs and various other improvements. (AS MODIFIED SEPTEMBER 8, 2015) Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City of Hutchinson (the "City") has certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. B. Statement of Objectives Housing Tax Increment District No. 8 (Housing TID No. 8) currently consists of one parcel of land bound between Cleveland Avenue and Century Avenue. Present plans for new development on the site include the construction of seven buildings consisting of eight housing units within each building or a total of 56 units. The buildings will be a mix of one -bedroom, two-bedroom, and three-bedroom units. Construction is to start Fall, 1994 and be completed early 1995. The City Council of Hutchinson, Minnesota (the "City Council"), determines that is necessary, desirable and in the public interest to amend and administer Development District No. 4 (the "Development District") in the City of Hutchinson, Minnesota (the "City") The City Council determines that the funding of the necessary activities and improvement in the Development District (the 'Development Program") shall be accomplished in whole or in part through tax increment financing. The City and the City Council seek to achieve the following objectives through the Development Program: 1. Work cooperatively with other local organizations, the Hutchinson Community Development Corporation, the Hutchinson HRA, and other governmental agencies in promoting any projects which will improve the housing stock in the City, increase employment, and add to the tax base of the City. 2. Assist in increased opportunities for senior citizens to choose from housing options which offer a wide array of services without regard to income and for residents looking for a wide range of multi -family units. 3. Promote and secure additional employment opportunities within the Development District, hereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor. 4. Encourage and provide maximum opportunity for private redevelopment of existing areas and structures which are compatible with the Development Program. 5. Alleviate the shortage of housing as stated in the City of Hutchinson Housing Study prepared by Maxfield Research Group, Inc. in 1993 which found that a shortage of housing options exists for seniors and renters interested in general occupancy apartments. land. 6. Additional property contains vacant, unused, underused and inappropriately used (AS MODIFIED SEPTEMBER 8, 2015) The TIF Plan is being modified to update the budget to facilitate various programs outlined in Exhibit II -B. The City intends to work with the Hutchinson HRA in order to use available tax increment to acquire parcels for acquisition, rehabilitation, and redevelopment for low to moderate income residents within the City. C. Housing Tax Increment Plan Overview 1. The City has identified the following estimated costs of the project which are eligible for tax increment assistance: Assessments for Public Improvements $145,500 Site Development Costs 145,641 Total $291,141 The City is proposing that any tax increment assistance provided by the City will be funded on a pay-as-you-go basis. Under this proposal the developer will pay all costs of the project and then will be reimbursed for certain eligible costs from tax increment revenue received from Housing TID No. 8. 2. Relocation -- Complete relocation services are available pursuant to Minnesota Statutes, Chapter 117 and other relevant state and federal laws. 3. The City may perform or provide for some or all necessary acquisition, relocation, demolition, and required utilities and public streets work within Housing TID No. 8 and those costs allowed within Development District No. 4. 4. Phase I of Housing TID No. 8 is zoned R-3, an appropriate status for the anticipated facility. All development in the area will conform to applicable state and local codes and ordinances. D. Description of Property in Tax Increment District No. 8 Housing TID No. 8 encompasses the parcels and all adjacent and internal right-of-ways as identified below and on the map in Exhibit A. Parcel No. 12-116-30-02-0040 The legal boundaries of Housing TID No. 8 are proposed to be as follows: The south half of the northwest quarter of the northeast quarter of Section 12, Township 116 North, Range 30 west of the 5th principal meridian. Except the north 30.00 feet thereof, plus the full right-of-way of Cleveland Avenue and Century Avenue adjoining said parcel. E. Classification of the Tax Increment Financing District The City, in determining the need to create a tax increment financing district in accordance with Minnesota Statutes, Section 469.174 to 469.179 inclusive, finds that Housing TID No. 8 to be established is a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 11 as defined below: "Housing district" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in Chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts. A project does not qualify under this subdivision if the fair market value of the improvements which are constructed for commercial uses or for uses other than low and moderate income housing consists of more than 20% of the total fair market value of the planned improvements in the developmentplan or agreement. The fair market value of the improvements maybe determined using the cost of construction, capitalized income, or other appropriate method of estimating market value. Additionally the City will determine this Housing District is a "Qualified Housing District" as defined below: "Qualified housing district" means a housing district for a residential rental project or projects in which the only properties receiving assistance from revenues derived from tax increments from the district meet all of the requirements for a low income housing credit under Section 42 of the Internal Revenue Code of 1986, as amended through December 31, 1992. The developer will be receiving tax credits for this proposed project. F. Property to be Acquired The City may acquire parcels within Housing TID No. 8 including interior street and railway right-of-ways. (AS MODIFIED SEPTEMBER 8, 2015) A description of the parcels to be acquired by the City and/or HRA can be found in Exhibit H -B prior to the public hearing. G. Estimate of Costs The estimate of public costs associated with Housing TID No. 8 are outlined in the following line item budget. Assessments for Public Improvements $145,500 Site Development Costs 145,641 Total $291,141 Any funds to be expended for off-site improvements outside the boundaries of Housing TID No. 8 but within the boundaries of Development District No. 4 would be less than 25% of total tax increment generated by Housing TID No. 8, including administrative costs. (AS MODIFIED SEPTEMBER 8, 2015) The total uses of funds has been revised to reflect actual costs to date plus anticipated future project costs. The HRA and City expect that there will also be additional costs in various categories. The revised cumulative uses of tax increment funds is summarized in the table below: USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $950,000 Site Improvements/Preparation $200,000 Other Public Improvements $125,000 Construction of Affordable Housing $1,000,000 Administrative Costs (up to 10%) $150,000 PROJECT COST TOTAL $2,425,000 1afg-rcA575 000 PROJECT AND INTEREST COSTS TOTAL $3,000,000 For purposes of OSA reporting forms, uses of funds include interfund loans, bond principal, TIF Note principal, and transfers, all in the principal amount of $2,425,000. These amounts are not cumulative, but represent the various forms of "bonds" included within the concept of bonded indebtedness under the TIF Act. The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Section I. Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. The City may spend increments from the TIF District in any amount, for housing projects located anywhere in the Development District, as all such expenditures are deemed to be within the TIF District under Section 469.1763, Subd. 2 of the TIF Act. H. Estimated Amount of Loan/Bonded Indebtedness It is anticipated that the developer will finance this project and recover these costs under a "pay -as -you- go" development agreement. The developer will be entitled to tax increment revenues to achieve net operating income prior to debt service of 130% greater than the annual debt service on the developer's bank mortgage. (AS MODIFIED SEPTEMBER 8, 2015) The HRA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $2,425,000. Such bonds may be in the form of pay -as -you go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of this Modification. I. Sources of Revenue The major source of revenue to be used to finance public costs associated with the public development projects in the municipal development district is tax increment generated as a result of the taxation of the land and improvements in Housing TID No. 8. The developer currently estimates sources of funds for the project as follows: Bank (1st mortgage) $1,837,223 Equity 873,343 Total Sources of Funds $2,710,566 The equity portion is estimated to consist of tax credits ($582,202) and the TIF portion ($291,141). (AS MODIFIED SEPTEMBER 8, 2015) In light of the duration of the District, the total estimated tax increment revenues for the District are expected to be approximately $3,000,000, as shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $1,500,000 Interest 500,000 Land Sale Proceeds 1.000.000 Total Revenues $3,000,000 J. Original Tax Capacity Pursuant to Minnesota Statutes, Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the Original Net Tax Capacity (OTC) for Housing TID No. 8 is based on the value placed on the property by the assessor in 1993 for taxes payable 1994, which is $251. The original tax rate for Housing TID No. 8 is expected to be 141.8570%, the local tax rate for taxes payable in 1993. Each year the Office of the County Auditor will measure the amount of increase or decrease in the total tax capacity of Housing TID No. 8 to calculate the tax increment payable to the City of Hutchinson. In any year in which there is an increase in total tax capacity in the tax increment financing district above the annual percentage of annual increase, a tax increment will be payable. In any year in which the total tax capacity in Housing TID No. 8 declines below the original tax capacity, no additional valuation will be captured and no tax increment will be payable. The County Auditor shall certify in each year after the date the OTC was certified, the amount the OTC has increased or decreased as a result of: 1. change in tax exempt status of property; 2. reduction or enlargement of the geographic boundaries of the district; 3. change due to stipulations, adjustments, negotiated or court-ordered abatements; 4. change in the use of the property and classification; or 5. change in state law governing class rates. K. Amount of Captured Tax Capacity Pursuant to Minnesota Statutes, Section 469.174, Subdivision 4 and Minnesota Statutes, Section 469.177, Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of Housing TID No. 8, upon completion of all phases of the project, will annually approximate $31,581. The City requests 100% of the available increase in tax capacity for repayment of debt and current expenditures, beginning in the tax year payable 1996. The original tax capacity and project tax capacity are estimated at current market values and class rates to be the total amount when all development is in place and uses of the property have changed. (See Exhibit B.) Estimated Project Net Tax Capacity $31,831 Original Net Tax Capacity (in tax year payable 1996) -251 Estimated Captured Net Tax Capacity $31,580 L. Duration of the District Pursuant to Section 469.176, Subd. 1, of the Tax increment Act, the duration of Housing Tax Increment Financing District No. 8 of the City will be no more than twenty-five (25) years after the date of receipt by the City of the first tax increment or the point at which the City's plan has been satisfied. The date of receipt by the City of the first tax increment will be approximately July 15, 1996. Thus, it is estimated that Housing TID No. 8, including any modifications of the Plan for subsequent phases or other changes, would terminate at the end of the year 2022. The City does reserve the right to decertify Housing TID No. 8 prior to the legally required date. (See Exhibit C.) (AS MODIFIED SEPTEMBER 8, 2015) Pursuant to M.S., Section 469.175, Subs. 1, and Section 469.176, Subs. 1, the duration of the TIF District must be indicated within the TIF Plan. This modification does not change the term of the TIF District. The first increment was received in 1996. Thus, it is estimated that the TIF District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 12/31/2021. The City reserves the right to decertify the TIF District prior to the legally required date. M. Estimated Impact on Other Taxing Jurisdictions It is anticipated that the value of the parcels included in the Housing TID No. 8 will remain stable from year to year because of the completion of construction thereon. The impact of tax increment financing on values of all taxing jurisdictions in which the Housing TID No. 8 is located in whole or in part would also remain stable from year to year. Based on this assumption, it is anticipated that tax increments will be captured annually. The estimate is based on the qualifications identified in this report and does not include the possible tax increment derived from any other future development, tax law changes, or inflation factors. IMPACT ON TAX BASE Entity's Total Captured Entity Tax Capacity Tax Capacity McLeod County $12,891,738 $31,580 City of 5,198,011 31,580 Hutchinson City of .38466 I.S.D. 423 7,005,141 31,580 Region 60 12,891,738 31,580 I.S.D.423 IMPACT ON TAX RATES 31,580 Current Captured Entity Tax Rate Tax Capacity % of Captured Tax Capacity to Entity Total .25% .61% .45% .25% Potential Taxes McLeod County .45111 $31,580 $14,246 City of .38466 31,580 12,149 Hutchinson I.S.D.423 .58045 31,580 18,331 Region 60 .00234 31,580 74 Total 1.41856 $44,800 The estimates listed above display captured tax capacity when all construction is completed, estimated to be for taxes payable in 1997. The tax rates and tax capacities are the payable 1993 figures for all jurisdictions. Housing TID No. 8 will be certified under rates for tax year payable 1994. In addition, the impact on I. S.D. 423 does not include the effect of state aids for education upon school district funding. N. Modifications of the Tax Increment Financing District In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the City shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the county auditor. Housing TID No. 8 may therefore be expended until approximately the end of 1998. Modifications to Housing TID No. 8, in the form of a budget modification or an expansion of the boundaries will be recorded in this subsection of the Plan. (AS MODIFIED SEPTEMBER 8, 2015) In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd 10, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. O. Limitation on Administrative Expenses In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.176, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the district, relocation benefits paid to or services provided for persons residing or businesses located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section 469.178. Administrative expenses includes amounts paid for services provided by City staff, HRA staff, bond counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be used to pay any administrative expenses for a project which exceed 10% of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4h, tax increments may be used to pay for the county's actual administrative expenses incurred in connection with Housing TID No. 8. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. (AS MODIFIED SEPTEMBER 8, 2015) In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. P. Limitation on Qualification of Property in Tax Increment District Pursuant to Minnesota Statutes, Section 469.176, Subdivision 6: "If, after four years from the date of certification of the original tax capacity of the tax increment financing district pursuant to Minnesota Statutes, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of a parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original tax capacity of that parcel shall be excluded from the original tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including improvement of a street adjacent to that parcel, in accordance with the tax increment financingplan, the authority shall certify to the county auditor in the annual disclosure report that the activity has commenced. The county auditor shall certify the tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision ... For purposes of this subdivision, qualified improvements are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. " The City or a property owner must improve the parcels withing Housing TID No. 8 by approximately the end of 1997. Q. Limitation on the Use of Tax Increment Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4, at least 90% of the revenues derived form tax increments from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment districts under Section 469.174, Subdivision 10. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land and installation of utilities, roads, sidewalks, and parking facilities for the site. The revenues shall be used to finance or otherwise pay public development costs pursuant to Minnesota Statutes, Chapter 462C or 469. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference proposes and not primarily for conducting the business of the municipality. For tax increment financing districts for which certification was requested after April 30, 1990, pursuant to Minnesota Statutes, Section 469.1763, Subdivisions 1 and 2, an amount equal to at least 75% of the revenue derived from tax increments from the district's parcels must be expended on activities in the district. (AS MODIFIED SEPTEMBER 8, 2015) The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the cost of redevelopment of the Development District No. 4 pursuant to M.S., Sections 469.124 to 469.133; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit Development District No. 4 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462CC, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Sections 469.174, Subd. 11 and 469.1761. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations R. Notification of Prior Planned Improvements Pursuant to Minnesota Statutes, Section 469.177, Subdivision 4, the City has reviewed the area to be included in Housing TID No. 8 and found no properties for which building permits have been issued during the 18 months immediately preceding approval of the tax increment financing plan by the City. If the building permit had been issued within the 18 -month period preceding approval of the tax increment financing plan by the City, the county auditor shall increase the original tax capacity of the district by the valuation of the improvements for which the building permit was issued. S. Requirements for Agreements with the Developer Developer's Obligations The City will review the Developer's proposal to determine its conformance with the Development Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with city plans and ordinances. Land acquired by the City will be subject to a Contract for Sale upon disposition to the Developer. The general requirements to be imposed upon the developer by the Contract for Sale are: Develop the land purchased in accordance with this development plan. 2. To commence and complete the building of improvements on the land within a reasonable period of time as determined by the City. Not to resell the land before improvements are made without the prior consent of the City. 4. Not to discriminate on the basis of race, color, sex, creed, or national origin on the sale, lease, transfer, occupancy of the land purchased from the City. The requirements to be imposed upon the Developer and the City's exact participation in the project will be negotiated as part of the Development Agreement between the City and the Developer. T. Assessment Agreements Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City will enter into an agreement in recordable form with the developer of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements in the amount of $1,400,000 for the duration of the tax increment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. (AS MODIFIED SEPTEMBER 8, 2015) Pursuant to M.S., Section 469.177, Subd 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. U. Administration of Housing TID No. 8 Administration Housing TID No. 8 will be handled by the City Administrator. The tax increment received as a result of increases in the tax capacity of Housing TID No. 8 will be maintained in a special account separate from all other municipal accounts and expended only upon sanctioned municipal activities identified in the tax increment financing plan. V. Financial Reporting Requirements Pursuant to Minnesota Statutes, Section 469.175, Subdivisions 5, 6, and 6(a); an authority must file an annual disclosure report for all tax increment financing districts with the Office of the State Auditor, the county board, school board, and Department of Revenue. W. Municipal Approval Pursuant to Minnesota Statues, Section 469.175, Subdivision 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination. 1. Finding that the Housing TID No. 8 is a housing district as defined in Minnesota Statutes, Section 469.175, Subd 11. Housing TID No. 8 consists of one parcel of property. Development of these parcels will be undertaken by the Developer, Augusta Housing Management Company, under the tenant income restrictions of the low income hosing credit under Section 42 of the Internal Revenue Code of 1986, as amended. 2. Finding that the proposed development, in the opinion of the Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. Due to the high costs of development, current rent levels within the Hutchinson housing market are too low compared to the rent levels necessary to support this housing project. The assistance of TIF will reduce rent levels to current market rates that were found to exist in the 1993 market analysis by Maxfield Research Group. 3. Finding that the Tax Increment Financing Plan conforms to the general plan for the development or redevelopment of the municipality as a whole. The site is appropriately zoned. The Tax Increment Financing Plan has been reviewed by the Planning Commission and been found to conform to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Housing Tax Increment Financing District No. 8 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Development District No. 4 by private enterprise. The establishment of Housing TID No. 8 will result in increased and wide range of housing opportunities for the community and improve the housing stock, consistent with the City's Comprehensive Housing Study and Development District No. 4 objectives. X. County Road Costs Pursuant to Minnesota Statutes, Section 469.175, Subdivision la, the county board may require the authority to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or other county plan. The improvements outlined in the Plan serve as notice to the county that the development of the retail facility will be assisted with tax increment. In the opinion of the City and consultants, the proposed development will have little or no impact upon county roads. If the county elects to use increments to improve county roads, it must notify the City within thirty days of receipt of this plan. Y. Reduction in State Tax Increment Financing Aid Pursuant to Minnesota Statutes, Section 273.1399 for tax increment financing districts for which certification was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid (RISTIFA) applied to the municipality's Local Government Aids (LGA) first and Homestead and Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax capacity (QCTC) of the tax increment financing district. Qualified housing districts are exempt from this provision. (AS MODIFIED SEPTEMBER 8, 2015) This section has been repealed. (AS MODIFIED SEPTEMBER 8, 2015) Z. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1,1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. I ]F District No. ] ] I -I'll 1}[strict N( -nF Dktrict No. 13 0 TIF District [mct FI FDistrict No. 6 Tax Increment Financing Districts Development District No.4 City cif Hutchinwn McLec)d County, Minnesota TIF' District No. !e, BL)uikdarie5 of Develaputieut Uistria No. 4 i EXHIBIT II -B Description of Parcels to be Acquired (AS MODIFIED SEPTEMBER 8, 2015) The target area for purchase of substandard properties is shown in the attached map. I f As ofAugust 26, 2015 Draft for Public Hearing Modification to the Development Program for Development District No. 4 and the Modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 6, 7, 11, 4-13, and 4-14. City of Hutchinson McLeod County State of Minnesota Modification Public Hearing: September 8, 2015 Adopted: 0 FREERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Municipal Action Taken ........................................................ i Modification to the Development Program for Development District No. 4 ............................................. 1-1 Subsection 1-1. Background ............................................. 1-1 Subsection 1-2. Modifications to the Development Program .................... 1-1 Subsection 1-3. Boundaries of Development District No. 4 ..................... 1-1 Modification to the Tax Increment Financing Plans for for Tax Increment Financing District No.'s 6, 7, 11, 4-13, and 4-14 ................. 2-1 Subsection 2-1. Background ............................................. 2-1 Subsection 2-2. The Modification ......................................... 2-1 Appendix A Boundary Map of Development District No. 4 .................................... A-1 Municipal Action Taken (This Municipal Action is only for convenience of reference.) Based upon the statutory authority described in the Development Program attached hereto, the public purpose findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth in the Development Program, the City Council has created, established and designated Development District No. 4 pursuant to and in accordance with the requirements of the Municipal Development District Act and the TIF Act as defined in the definitions of this document. The following municipal action was taken in connection therewith: Development District No. 4: May 1980: The Development Program for Development District No. 4 was adopted by the City Council. Development District No. 4 is a merger and consolidation of Development District Nos. 1, 2, and 3, together with an additional area. April 24,1990: The Development Program for Development District No. 4 was modified by the City Council to expand the boundaries and create Tax Increment Financing District No. 5. December 30, 1991: The Development Program for Development District No. 4 was modified by the City Council to create Tax Increment Financing District No. 6. December 14, 1993: The Development Program for Development District No. 4 was modified by the City Council to expand the boundaries and create Tax Increment Financing District No. 7. August 23, 1994: The Development Program for Development District No. 4 was modified by the City Council to create Tax Increment Financing District No. 8. June 12,1995: The Development Program for Development District No. 4 was modified by the City Council to expand the boundaries and create Tax Increment Financing District No. 9. October 22, 1996: The Development Program for Development District No. 11 was modified by the City Council to create Tax Increment Financing District No. 11. May 13, 1997: The Development Program for Development District No. 4 was modified to expand the boundaries of Development District No. 4; to revise the budget and project costs in Tax Increment Financing District Nos. 4, 5, and 6; and to create Tax Increment Financing District No. 12. June 29, 2004: The Development Program for Development District No. 4 was modified to clarify that the City is authorized to undertake activities with respect to the redevelopment of property included in Tax Increment Financing District No. 13. September 8, 2015: The Development Program for Development District No. 4 was modified to expand the boundaries and provide for the modification of the Tax Increment Financing Districts therein. Section 1 - Modification to the Development Program for Development District No. 4 Subsection 1-1. Background The City of Hutchinson (the "City") has, pursuant to Minnesota Statutes (`MS. ), Sections 469.124 to 469.133, inclusive, as amended (the "Development District Act"), approved a Development Program for Development District No. 4 (the "Development Program") inthe City. This document was prepared to modify the Development Program that was adopted by the City Council in May 1980 and modified on April 24, 1990; December 30,1991; December 14,1993; August 23, 1994; June 12,1995; October 22, 1996; May 13, 1997; June 29, 2004; and September 8, 2015. The changes herein are intended to clarify the existing Development Program and modifications already on file with the City and to expand the boundaries of Development District No. 4. Subsection 1-2. Modifications to the Development Program The City reserves the right to alter and amend the Development Program and the Tax Increment Financing Plans, subject to the provisions of state law regulating such action. The City specifically reserves the right to enlarge or reduce the size of the Development District and the Tax Increment Financing Districts therein, the Development Program, the Public Costs and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, subdivision 4. Subsection 1-3. Boundaries of Development District No. 4 The boundaries of Development District No. 4 are being expanded to include area in the City as outlined in the map in Appendix A. City of Hutchinson Development Program for Development District No. 4 1-1 Section 2 - Modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 6, 7, 11, 4-13, and 4-14 Subsection 2-1 Background The purpose of the modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 6, 7, 11, 4-13, and 4-14 (the "TIF Districts") is to provide for the enlargement of the Development District No. 4. Subsection 2-2 Modification The City is hereby modifying the Tax Increment Financing Plans for the TIF Districts to reflect the expansion of the boundaries of Development District No. 4. The following sentence is to be inserted into the Tax Increment Financing Plan for each of the TIF Districts: The boundaries of Development District No. 4 are being expanded, as shown on Appendix A hereto. City of Hutchinson Development Program for Development District No. 4 2-1 Appendix A Boundary Map of Development District No. 4 City of Hutchinson Development Program for Development District No. 4 A-1 -- '= .. - ---- - . - - - FI - M1 111 I AO LIII ■111111■ � 11■ 1- !1..r �� %1111■■1■IIID , �" �■ � -■ ■� �� 1 =_ �- =• �1...1� �IIIIIII• ■■■1111111■ : 11111111■1111111■ �• -•��'' •■ == L� :� ■� 11■ ■1■1■11111. •Il......w■11111� � '■ - - �: ■ ii -Him21281 M r N Tax Increment Financing Development District #4 City of Hutchinson McLeod County As ofAugust 26, 2015 Draft for Public Hearing Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 4-5 (a redevelopment district) within Development District No. 4 City of Hutchinson McLeod County State of Minnesota Originally Adopted: April 24, 1990 Modification No. 1 Adopted: May 13, 1997 Modification No. 2 Adopted: June 29, 2004 Modification No. 3 Public Hearing: September 8, 2015 Prepared byFREERS &ASSOCIATES, INC. 40-1 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105EHLERS 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-5 (AS MODIFIED MAY 13,199 7) Introduction The following text represents a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 5. The Modified Tax increment Financing Plan represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4 and the Tax Increment Financing Plan for Tax Increment Financing District No. 5. Generally, the substantive changes include the authority to spend additional tax increments generated from Tax Increment Financing District No. 4 for other redevelopment related projects in Development District No. 4; to expand the budget for Tax Increment Financing District No. 4; and to clarify budgets for previous expenditures. This modification does not add any parcels to this District, nor does it change the expected life of the District. For further information, a review of the Development Program for Development District No. 4, adopted May 1980 and modified on April 24, 1990 and December 30, 1991 and the Tax Increment Financing Plan for Tax Increment Financing District No. 5 adopted April 18, 1990, is recommended. They are available from the City Administrator's office of the City of Hutchinson. (AS MODIFIED JUNE 29, 2004) The main objective of the modification to the TIF Plan is to enable the City to capture an increased amount of tax increment in the TIF district by unfreezing the local tax rate which is applied against the captured tax capacity in the TIF District. The additional increment will be available for special deficit pooling to Tax Increment Financing District No. 6 (the "Deficit TIF District"). Between 1997 and 2001 the Minnesota State Legislature made several changes to the property tax code, including the "compression" of tax capacity rates. These changes reduced the amount of increment collected in tax increment districts containing commercial, industrial, and multifamily residential properties. As a result, many districts began experiencing deficits in 2002 and 2003. The Legislature in 2001, 2001, and 2003 provided cities with certain remedies to offset property tax class rate compression. The city is electing that the original local tax rate does not apply to the TIF District as allowed by M. S., Section 469.1794, Subd. 3. Pursuant to M.S., Section 4693.177, Subd. ]a, when a tax increment district is first certified, the County Auditor sets an original local tax rate (or "frozen rate") which is the combined rates of the city, county, school district, and other minor taxing jurisdictions for that particular tax year. During the life of the TIF District, the County Auditor uses the lesser of the original local tax rate or the combined local taxing districts tax rate to calculate tax increment payments. When the current local tax rate is higher than the original local tax rate, the amount of taxes received by the County Auditor on the difference between the current local tax rate and the original local tax rate are redistributed to the major taxing jurisdictions in an amount which is proportional to their increase in tax rates. The original local tax rate for the TIF District is 122.412%. The current local tax rate for taxes Payable 2004 is 149.336%. As a result of this modification, an additional $17,400 of increment will be distributed to the TIF District based on the 2003/Pay 2004 local tax rate. The City is required under M.S., Section 469.1792, Subd. 3b and M.S., Section 469.175, Subd. 2 to notify the affected county and school district at least 30 days prior to the holding of a public hearing on the City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 modification of the TIF District. The public hearing is scheduled for June 29, 2004. (AS MODIFIED SEPTEMBER 8, 2015) The TIF Plan is being modified in order to modify the budget, to reflect updates in legislation, to identify parcels for acquisition and to confirm the application of the frozen tax rate due to the satisfaction of the deficit in the Deficit TIF District. (AS MODIFIED JUNE 29, 2004) Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City of Hutchinson (the "City") has certain statutory powers pursuant to Minnesota Statutes (`MS. '), Sections 469.124 to 469.134, inclusive, as amended, and M. S., Sections 469.174 to 469.1799, inclusive, as amended ( the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. A. Use of Tax Increment Pursuant to Section 469.176, Subd. 4, of the Tax Increment Act, all revenues derived from the Tax Increment District shall be used in accordance with the tax increment financing plan. The revenues shall be used for the following purposes: to pay the principal of and interest on bonds used to finance a project; 2. to finance or otherwise pay the capital and administration costs of the Development District pursuant to the Development District Act. to pay for project costs as identified in the budget; and 4. to finance or otherwise pay for other purposes as provided in Section 469.176, Subd. 4, of the Tax Increment Act. These revenues shall not be used to circumvent any levy limits. (AS MODIFIED SEPTEMBER 8, 2015) The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the cost of redevelopment of the Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Redevelopment Project No. 1 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by McLeod County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to 10 percent) and for the costs of public improvement activities outside the District. B. Excess Tax Increments Pursuant to Section 469.176, Subd. 2, of the Tax Increment Act, in the year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment financing plan including the amount necessary to cancel an tax levy as provided in Minnesota Statutes, Section 475.6 1, Subd. 3, the City shall use the excess amounts to: 1. prepay any outstanding bonds; 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of such bonds; or 4. return the excess amount to the County Auditor for distribution as provided in Section 469.176, Subd. 2, of the Tax Increment Act. (AS MODIFIED SEPTEMBER 8, 2015) The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Development District No. 4 or the District. C. Limitation of Increment Pursuant to section 469.176, Subd. 1, of the Tax Increment Act: No tax increment shall be paid to the City for the Tax Increment District after three (3) years from the date of certification of the original net tax capacity value of the taxable property in the Tax Increment District by the County Auditor unless within the three (3) year period: (a) bonds have been issued pursuant to Section 469.178 or in aid of a project pursuant to any other law, except revenue bonds issued pursuant to Chapter 474 prior to August 1, 1979, or (b) the city has acquired property within the Tax Increment District or (c) the City has constructed or caused to be City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 constructed public improvements within the Tax Increment District. 2. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the Tax Increment District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds a maturity or redemption date. The City has determined that parcels constituting 70% of the area of the proposed Tax Increment Financing District are occupied by buildings, streets, utilities or other improvements and more than 20% of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. At least 30% of the area of each parcel contains improvements. These findings qualify the district as a redevelopment district pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(2). No tax increment shall in any event be paid to the City from the Tax Increment District after twenty-five (25) years from the date of the receipt of the first tax increment or after the goals of this plan have been satisfied, whichever comes first. Modification of this tax increment financing plan pursuant to Section 469.176, Subd. 4 of the Tax Increment Act shall not extend the durational limits of the provision. At least 90% of the tax increments derived from the redevelopment district will be used for redevelopment related costs. 4. If, after four (4) years from the date of certification of the original net tax capacity value of the Tax Increment District pursuant to Section 469.177 of the Tax Increment Act, no demolition, rehabilitation or renovation of property or other site preparation, including utility service, has been commenced on a parcel located within the Tax Increment District by the city or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel , and the original net tax capacity value of that parcel shall be excluded from the original net tax capacity value of the Tax Increment District. If the City or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel, including improvement of a street adjacent to that parcel,. In accordance with tax increment financing plan, the authority shall certify to the County Auditor that the activity has commenced, and the County Auditor shall certify the net tax capacity value thereof as most recently certified by the Commissioner of Revenue and add it to the original net tax capacity value of the Tax Increment District. For purposes of this subdivision, "parcel' means a tract or plat of land established as a single unit for purposes of assessment. A list will be maintained by the City of document all building permits issued within the District for private redevelopment including alterations, additions, new construction and demolition. D. Limitation on Administrative Expenses Pursuant to Section 469.176, Subd. 3, of the Tax Increment Act, no tax increment shall be used to pay any administrative expenses for the Tax Increment District which exceed ten percent (10%) of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the Tax Increment District, whichever is less. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 4 (AS MODIFIED SEPTEMBER 8, 2015) In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. E. Parcels for Acquisition The parcels identified for acquisition at this time are those comprising the entire Tax Increment District No. 5. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: provide land for needed public streets, utilities and facilities; carry out clearance and a demolition program to accomplish the uses and objectives set forth in the Development. 2. The following are conditions under which properties not designated to be acquired may be acquired. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 order to achieve the objectives of this tax increment financing plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. (AS MODIFIED SEPTEMBER 8, 2015) A description of targeted areas where parcels may be acquired can be found in Appendix E. F. Estimate of Proiect Investment The City has received a proposal and executed a Development Agreement with Shopko for the redevelopment of Block 43 and 44 and part of 48. The City has received proposals for the redevelopment of Block 48 and 49 including abutting rights-of-way. No development agreement has been executed as of adoption. The City expects total Redevelopment Project investment for property tax purposes to be $4,500,000 in Blocks 43 and 44 and $3,500,000 in Blocks 48 and 49. There are no development activities related to this plan for which contracts have already been entered into. The City reasonably expects to have a Developer or Developers for the redevelopment of blocks 48 and 49. The Redevelopment Program contemplates the phasing of acquisition and redevelopment of Tax Increment District No. 5. The City expects to expend all tax increments received from the tax increment district. G. Estimated Costs of Improvements for Tax Increment District No. 5 Item Estimated Cost (See Exhibit B) (AS MODIFIED MAY 13,199 7) Estimated Public Improvement Costs The estimate of public costs, including all previous modifications to the Tax Increment Financing Plan for Tax Increment Financing District No. 5 and the current modified estimated cost breakdown of Development District No. 4 costs associated with financing Tax Increment Financing District No. 5 is found in Appendix A. (AS MODIFIED SEPTEMBER 8, 2015) The estimate of public costs is found in Exhibit B. H. Use of Tax Increments Tax increments generated in Redevelopment Tax Increment Financing District No. 5 will be paid by McLeod County to the city of Hutchinson for its Tax increment Activities for said District. The City will use the tax increment funds in accordance with the provisions of the Development Agreement. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 I. Sources of Revenue for Public Costs Tax increment is the primary source of revenue for public costs. The City may also use special assessments, user charges and land sales and other revenue to defray public costs. (AS MODIFIED SEPTEMBER 8, 2015) The Sources of Revenue for Public Costs is found in Exhibit B. J. Estimate of Tax Increment The estimate of tax increment is set forth on the following pages. K. Original Net Tax Capacity Value Pursuant to Section 469.177, Subd. 1, of the Tax Increment Act, the Original Net Tax Capacity Value ("ONTC") for Tax Increment Financing District No. 5 is estimated to be $40,761 on all taxable real property within the Tax Increment District. Pursuant to Section 469.177, Subds. 1 and 2 of the Tax Increment Act, the County Auditor shall certify in each year (beginning in the payment year 1993) the amount by which the original net tax capacity value has increased (see next section) or decreased as a result of a change in tax exempt property within the Tax Increment District, reduction or enlargement of the Tax Increment District or changes in connection with previously issued building permits. In any year in which the current net tax capacity value of the Tax Increment District declines below the ONTC, no net tax capacity value will be captured and no tax increment will be payable to the City. (AS MODIFIED SEPTEMBER 8, 2015) K. Original Tax Capacity and Tax Rate Pursuant to Minnesota Statutes, Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the Original Net Tax Capacity (OTC) as certified for Tax Increment Financing District No. 4-5 is based on the market values placed on the property by the assessor in 1989 for taxes payable 1990. The original tax capacity of the property when the tax increment district was certified on July 18, 1991 was $19,752. The original local tax rate for Tax Increment Financing District No. 4-5 is the local tax rate for 1990 taxes. The actual original local tax rate for the TIF District is 122.412%. L. Current Net Tax Capacity Value The current net tax capacity value is the same as the original net tax capacity value set forth in Subsection L. M. Estimated Captured Net Tax Capacity Value/Increment Pursuant to Section 469.177, subd. 1, 2 and 4, of the Tax Increment Act, the estimated captured net tax capacity value in the Tax increment District No. 5 within Development District no. 4 as of January 2, 1992 (for 1993 collection), first captured date, will be $152,026. The city expects to use 100% of the captured net tax capacity and the resulting increment. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 N. Tax increment Financing Account for the Tax Increment District The tax increment received with respect to the Tax Increment District shall be segregated by the City in a special account or accounts on its official books and records. O. Duration of the District Pursuant to Section 469.176, Subd. 1, of the Tax Increment Act, the duration of Tax Increment Financing District No. 5 within Development District no. 4 of the city will be no more than twenty-five (25) years after the date of receipt by the city of the first tax increment for the point at which the City's plan has been satisfied. The date of receipt by the City of the first tax increment will be approximately July 15, 1993. The City expects the District's duration will be the maximum permitted by law. (AS MODIFIED JUNE 29, 2004) Pursuant to M.S., Section 469.175, Subd. 1, and section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. This modification does not change the term of the TIF District. The first increment was received in 1994. Thus, it is estimated that the TIF District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2019. P. Estimated Impact on Other Taxing Jurisdictions It is anticipated that net tax capacity value of the parcels included in the Tax Increment District will remain stable from year to year after project completion because of the construction thereon, the impact of tax increment financing on the net tax capacity values of all taxing jurisdictions in which the Tax Increment District is located in whole or in part would also remain stable from year-to-year. Based on this assumption, it is anticipated that ax increments will be captured annually. The estimate is based on the qualification identified in this report and does not include the possible tax increment derived from any other future development, tax capacity changes or inflation factors. Latest Gross Tax Capacity Value of Each Government Body (latest figures available) McLeod County I.S.D. No. 423 (Hutchinson) City of Hutchinson Total 1989/90 Total Gross Tax Capacity $18,433,362 8,797,425 6,490,908 1989/90 Gross Tax Capacity Rates 31.08 52.19 34.41 117.85 Percentage of Total 26.37% 44.29% 29.20% 100.00% School District No. 423 comprised 44.29% of the 1988/89 tax capacity rate, while McLeod County comprised 26.37%. The City of Hutchinson made up 29.20% of the 1988/89 cumulative tax capacity levy for the taxing jurisdictions affected by the Tax Increment District proposal, and the RDC was 0.14%. A tax capacity rate of 117.85 has been utilized in this tax increment financing plan. If the new taxes estimated within the Redevelopment Tax Increment District are captured for the duration of the District, taxes and values will experience no change until termination of the District. After that time, the amounts identified below will be available to the taxing jurisdictions. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 8 If the new taxes upon completion were not captured (and if the project could be done without tax increment financing), they would be distributed annually as follows: McLeod County $28,270 I.S.D. No. 423 (Hutchinson) 47,473 City of Hutchinson 31,300 Regional Development Commission 155 Total $107,198 (AS MODIFIED MAY 13,199 7) Estimated Impact on Other Taxing Jurisdictions No additional fiscal implications are anticipated due to this modification. (AS MODIFIED JUNE 29, 2004) The fiscal impacts are demonstrated in the following table. It is likely that without pooling to the Deficit TIF District, the TIF District would have been decertified prior to the maximum expiration date allowed by law. McLeod County City of Hutchinson ISD No. 423 IMPACT ON TAX BASE Pay 2004 Total Net Tax Canacity 21,530,245 7,937,112 10,755,023 Pay 2004 Captured Tax Cabacity (CTC) 64,628 64,628 64,628 Percent of CTC to Entity Total 0.3002% 0.8143% 0.6009% Q. Annual Disclosure Requirements The city is subject to reporting requirements specified in Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6A and will comply with said requirements. R. Requirement for Agreements with the Developer Pursuant to Section 469.176, Subd. 5, of the Tax Increment Act, no more than ten percent (10%), by acreage, of the property to be acquired in the Tax Increment District as set forth in the tax increment City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 IMPACT ON TAX RATES Pay 2004 Potential Extension Rates Percent of Total CTC Taxes McLeod County 0.632560 42.36% 64,628 40,881 City of Hutchinson 0.615540 41.22% 64,628 39,781 ISD No. 423 0.230940 15.46% 64,628 14,925 Other 0.014320 0.96% 64,628 925 Total 1.493360 100.00% 64,628 96,513 Q. Annual Disclosure Requirements The city is subject to reporting requirements specified in Minnesota Statutes, Section 469.175, Subd. 5, 6 and 6A and will comply with said requirements. R. Requirement for Agreements with the Developer Pursuant to Section 469.176, Subd. 5, of the Tax Increment Act, no more than ten percent (10%), by acreage, of the property to be acquired in the Tax Increment District as set forth in the tax increment City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 financing plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to Section 469.178 of the Tax Increment Act without the City having, prior to acquisition in excess of ten percent (10%) of the acreage, concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development not be completed. S. Assessment Agreements The City may, upon entering into a development or redevelopment agreement, enter into a written assessment agreement in recordable form with the developer or redeveloper of the property within the Tax Increment District which establishes a minimum market value of the land and completed improvements to be constructed thereon, until a specified termination date, which date shall not be later than the duration of the Tax Increment District. The assessment agreement shall be presented to the County Assessor of McLeod County, who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the County Assessor, to be a reasonable estimate, the Assessor shall certify the minimum market value contained in the agreement. An assessment agreement is not anticipated for this proposal. T. Assumptions and Analysis for Tax Increment Redevelopment District Project Net Tax Capacity Value After Construction $152.026 Current net tax capacity value estimated 1988/1989: $61,064 Projected Timing First Tax Increment received approximately July 15, 1993 Base Net Tax Capacity Value, Est. $40,761 Captured Tax Capacity $90,962 Tax Capacity Rate 1988/1989 Tax Capacity Rate — 117.85 Assumed Future Tax Capacity Rate — 117.85 Land Sales Land Sales - $125,000.00 Bond Issues: Shopko Project, Phase 1: Bonds will be sold in an amount not to exceed $1,570,000. Phase II: Bonds will be sold in an amount not to exceed $1,500,000. Bond Issues The City anticipates issuing G.O. bonds to finance the activities of the district. (See Exhibits C and D). Captured Tax Capacity City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 10 Block 33 Block 40 $16, 125 $11,175 (4,550) (2,873) $11,575 $8,302 Tax Increment The tax increment upon completion has been calculated at approximately $107,198, assuming a static tax capacity rate of 117. (AS MODIFIED MAY 13,199 7) Estimated Amount of Bonded Indebtedness Pursuant to Minnesota Statutes, Section 469.178, Subdivision 1, General Obligation Tax Increment Bonds may be used as required to amortize the costs identified in this modification. It is further anticipated that future bond sales will be based on availability of tax increment. The City reserves the right to incur bonded indebtedness as a result of this modification. As presently proposed, the City will not be incurring G.O. bonded indebtedness as a result of this modification. As presently proposed, the City will not be incurring G. O. bonded indebtedness, but may incur indebtedness through interfund borrowing, revenue indebtedness or pay-as-you-go financing in an amount up to $1,200,000. (AS MODIFIED JUNE 29, 2004) The city reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment financing will not exceed $1,200,000 in bonded debt will be financed with tax increment revenues. It is estimated that $200,000 in interfund loans will be financed with tax increment revenues. (AS MODIFIED SEPTEMBER 8, 2015) The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $4,000,000. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. U. Legal Description of redevelopment Tax Increment Financing District No. 5 The Tax Increment District consists of four square blocks plus rights-of-way legally described in Exhibit A. V. Reasonable Expectations As required by the Tax Increment Financing Act, in establishing Redevelopment Tax Increment Financing District No. 5, the determination has been made that the anticipated development and improvements would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is necessary and has been based upon negotiations with the developer and upon City staff awareness of the feasibility of developing the subject site. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 11 W. Building Permits Issued: Tax Increment Anticipated Building permits are expected to be issued in 1990, 1991, and 1992 for redevelopment activities to be located on Block 43, 44, 48 and 49 and rights-of-way. X. Notification of Prior Planned Improvements The City shall, after due and diligent search, accompany its request for certification to the County Auditor or its notice of Tax Increment District enlargement with a listing of all properties within the Tax Increment District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the tax increment financing plan by the municipality pursuant to Section 469.175, Subdivision 3, of the Tax Increment Act. The County Auditor shall increase the original net tax capacity value of the Tax Increment District by the net tax capacity value of improvements for which a building permit was issued. Y. In Summary The City of Hutchinson is establishing Redevelopment Tax Increment Financing District No. 5 to preserve and enhance the tax base of the City and State and to correct the blighted condition in Tax Increment Financing District No. 5. (AS MODIFIED SEPTEMBER 8, 2015) The City of Hutchinson established Tax Increment Financing District No. 5. The TIF Plan for the District was modified by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-8500. City of Hutchinson Modification to Tax Increment Financing Plan for Tax Increment District No. 4-5 12 Exhibit A CITY OF HUTCHINSON, MINNESOTA LEGAL DESCRIPTION OF PROPERTY TO BE DELETED IN TAX INCREMENT FINANCING DISTRICT NO. 4 AND INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 5 That part of the NORTH HALF OF HUTCHINSON, according to the recorded plat thereof, described as follows: Beginning at the southwest corner of Block 31; thence southerly, along the east line of Main Street, to the northwest corner of the south 8 inches (0.67 feet) of Lot 8 of Block 49; thence easterly, along the northline of said south 9 inches and its easterly prolongation and along said north line of the south 20.00 feet, to the intersection with the east line of the west 55.00 feet of said Lot 3; thence southerly, along the last said east line, to the south line of said Lot 3; thence easterly, along said westerly prolongation and along said north line of the south 20.00 feet, to the intersection with the east line of the last said east line, to the south line of said Lot 3; thence easterly, along said south line of Lot 3, to the southeast corner of said Lot 3; thence southerly along the west line of Hassan street, to the southeast corner of Lot 5 of said Block 49; thence easterly, along the north line of Washington Street, to the southwest corner of Block 47; thence northerly, along the east line of Jefferson Street, to the southerly shore line of Crow River; thence westerly and northwesterly, along said shore line, to the north line of Second Avenue Northeast, thence westerly, along said north line of Second Avenue Northeast, to the point of beginning. J .are- CROW + RJV�R SECOND AVENUE NORTHEAST `�• _����,— ~ 10 k BLOCK —43 ` �LOCMC r 44�Z i S�'.'�!c 45 W LA __j J r.r. w r I w.n '•Z' I.'L`M a ^]•- —aM M• FIRST = AVENUE _ A ORTlwEAST .lO ° k *tire � Ry+` 1 =•'a 4.2 rr 4A LLJ It LL Ldi blf BLOCK o 49 LOCK i i S 1 i ■ ... _ Iq IF rr+r ram EAST e--FlASHINGTQN AVENUE —'— rMrr •w• +•f r y .y.p.i.. ,••�.•.tir. AS MODIFIED JUNE 29, 2004) MAPS OF TAX INCREMENT FINANCING DISTRICT NO. 5 �S h i°i°Oi°i°i°i�°°i°°i°i°iii°iii°�i�i ►o°°i°is°ii°i°®�°ii°imL�°ii°ii°i°i°i ► .°. °.°tea.°°°.®...°..� ►i°i°.°°°io°m°�°i°i°i°i°i°i* ,r-,} ! i Tax Increment Financing District Nos. 5, 6, and 7, Development District No. 4 City of Hutchinson McLeod County, Minnesota Y -16 tract No k`* Fs ', — r - L C - F5 g7 --i r �� rV I -T7 r -16 tract No k`* Fs ', — r - L C - F5 g7 --i r �� rV I r i _ t � T ' - Development District No. 4 r TIF District Ir�wct ITI F District No. b 1 Tax Increment Financing Districts Development District No.4 City of Hutchinson McLeod County, linnesoota IF District No. 1 I TIF District i TIF District No. ]rrrP� �� 11111 r� I TIF District Nn. 7 T{ f .r °P"]� d.r1 _ Fiound�ries of Ue4eloputient District No.4 TR TIF District No. 9 wAhl Exhibit B CITY OF HUTCHINSON PROJECT COSTS Phase I Phase II Land Acquisition $900,000 $1,215,000 Demolition, Clearing, Utilities 280,000 378,000 Contingency 95,000 215,000 Relocation 180,000 315,000 $1,455,000 $2,123,000 Financing Expenses 40,000 55,000 Discount 25,000 42,000 TOTAL PROJECT BUDGET $1,570,000 $2,220,000 Appendix A May 13, 1997 TIF Modifications SOURCES TIF District TIF District TIF District TIF District TIF District TIF District ALL Districts No.4 No.5 No.6 No.4 No.5 No.6 No.4 No.5 No.6 Total Original Original Original 71F District TIF District TItsF IF District TIF District TIF District TIF Distrito 71F District TIF District ALL Districts Budgets No.4 No.5 1,590,000 0 0 No.4 No. No. No.4 No.5 No.6 Total 1,325,000 Original Original Demolition and relocation 20,000 360,000 20,000 Budget Budget Budget Amended Amended Amended Amended 350,000 Budget Budget 350,000 mendment Amendment Amendment Budgets Budgets Budgets Budgets Tax Increments 921,057 105,0005,813,943 0 575,000 2,470,000 900,000 6,735,000 2,575,000 900,000 10,210,000 Interest Eamings 0 0575,000 0 0 60,000 25,000 575,000 60,000 25,000 660,000 Special Assessments 0 00 7,635,000 4,050,000 0 0 0 0 0 0 Other 0 135,000 175,000 165,000 30,000 175,000 300,000 625,000 1,100,000 Sales 200,000 0(50,000) 0 0150,0000 TIF District TIF District 0 150,000 Transfers In 0 00 No. 5 No. 6 1,115,000 475,000 0 1,115,000 475,000 1,590,000 TOTALS 1,121,057 240,000 Budgets 6,513,943 3,810,000 1,430,000 7,635,000 4,050,000 2,025,000 13,710,000 USES TIF District TIF District TIF District TIF District TIF District TIF District TIF District TIF District TIF District ALL Districts No.4 No.5 No.6 No.4 No.5 No.6 No.4 No.5 No.6 Total Original Original Original Budget Budget Budget Amended Amended Amended Amended Budget Budget Budget Amendment Amendment Amendment Budgets Budgets Budgets Budgets Transfers Out 0 0 0 1,590,000 0 0 1,590,000 0 0 1,590,000 Acquisition of property 935,943 900,000 926,321 744,057 425,000 298,679 1,680,000 1,325,000 1,225,000 4,230,000 Demolition and relocation 20,000 360,000 20,000 45,000 640,000 30,000 65,000 1,000,000 50,000 11115,000 Public improvements 901,057 0 0 (551,057) 0 0 350,000 0 0 350,000 Site improvements 253,000 0 20,000 (103,000) 0 (20,000) 150,000 0 0 150,000 Utilities 95,000 0 0 480,000 0 0 575,000 0 0 575,000 Interest 490,500 0 75,000 1,034,500 1,325,000 475,000 1,525,000 1,325,000 550,000 3,400,000 Other 962,000 95,000 0 (12,000) (95,000) 0 950,000 0 0 950,000 Administration Cost 267,500 60,000 128,000 482,500 340,000 72,000 750,000 400,000 200,000 1,350,000 TOTALS 3,925,000 1,415,000 1,169,321 3,710,000 2,635,000 855,679 7,635,000 4,050,000 2,025,000 13,710,000 Amounts listed above can be reallocated within other budget categories, as long as the budget totals do not change. Budget modifications are to include authority for: current increment expectations, 101 administrative expense for the City, the ability to pool funds from District No. 4 to pay current bonds and additional Industrial Park developments. 'The State Auditor now requires in its Annual Reporting Forms that the City report as a source the total amount of Bond Proceeds and as a use the total amount of Bond Principal Payments. The chart below indicates the budget modifications for these items. TIF District TIF District 71F District TIF District TIF District TIF District TIF District TIF District TIF District ALL Districts No. 4 No, 5 No. 6 No. 4 No. 5 No. 6 No. 4 No. 5 No. 6 Total OriginaUAmenc Original Original Budget Budget Budget Amended Amended Amended Amended Budget Budget Budget Amendment Amendment Amendment Budgets Budgets Budgets Budgets SOURCE: Bond Proceeds 2,803,943 1,570,000 575,000 (1,828,943) (245,000) 55,000 975,000 1,325,000 630,000 2,930,000 USE: Bond Principal Pmts 0 0 0 975,000 1,325,000 630,000 975,000 1,325,000 630,000 2,930,000 (AS MODIFIED JUNE 29, 2004) The estimated public costs and uses of funds associated with the TIF District is outlined in the following table. USES OF FUNDS $3,500,000 Land/Building Acquisition $1,600,000 Transfers out $5,000 Public Improvements $0 Installation of Public Utilities $0 Demolition and Relocation $1,000,000 Interest on Bonds $1,350,000 Interest on Interfund Loans $250,000 Administrative Expenses $400,000 Other — Pooling for Deficits to TIF District No. 6 $345,000 Sub -total $4,950,000 Interfund Loan $200,000 Bond Principal $1,200,000 TOTAL $6,350,000 The sources and uses of funds in this modification (dated June 29, 2004) are cumulative. The estimated sources of funds for the TIF District is contained in the table below. SOURCES OF FUNDS Tax Increment $3,500,000 Other $200,000 Land Sale Proceeds $130,000 Transfers In $820,000 Interest $300,000 Interfund Loan $200,000 Bond Proceeds $1,200,000 PROJECT REVENUES $6.350.000 Tax increment revenue includes tax increment pooled from other districts under special deficit pooling authority. (AS MODIFIED SEPTEMBER 8, 2015) Sources of Revenue The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by an interfund loan and available increments. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $4,200,000 Sales/Lease Proceeds 545,000 Inle.r 200 000 TOTAL $4,945,000 Uses of Funds The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $2,000,000 Site Improvements/Preparation 850,000 Utilities 200,000 Other Qualifying Improvements 575,000 Administrative Costs (up to 10%) 420,000 PROJECT COST TOTAL $4,045,000 Interest 900,000 PROJECT AND INTEREST COSTS TOTAL $4,945,000 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown above. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subs. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Development District No. 4, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Exhibit C CITY OF HUTCHIN:SON, MINNESOTA DEBT SERVICE SCHEDULE ;723,84335 G. O. TAX NCREMENT BONDS. SERIES 1990A Ehlers Ccncpsnits Firtarclal Advisors and ConsUttonts YIELD STATIVICS Fitt - aM ICNIC 4112/1"D 2:56 v10 Atcrued Interest few 04/30/1990 to 04/!5!1990... - 6rerw life ...................................... 11.552 PEARS /and Years ....... *of ........ ............ ....... ..- S8.236.2S Avor pe Cpgon4-.0-64 ............................ 13.01039~211 Net Interest Cent LR] q ........................... 13.010394211 $end Yield for Arbitrage Itir9asee................. i.3D01127% Tem trderesc Cost (fie).. ........................ 7.3001127% Effective Interest Cost (EIC) ..................... 7.3001127% City of " chinson, Itlnneseca Dett iervico Analysis Capita Approclation lands !85,000 Annual Debt Service DUT SERVICE Se"10IE DATE P210CIPAL COLF10" INTEREST CHEAT SERVICE 6/D1/•.990 - 4J41l1491 - - - 6/01l1992- 6/D1/- , JaiJTp44 63i13.44 21.S.U,60 :15"=100.00 4/01/1995 54,, 025. r0 - 2S 97'.-30 85,ON. DC 6/01/1496 54,941.45 - 30,058.55 85,000.00 8/01/1997 51,140.75 - 33,859-75 55,400,00 6/01/1990 47,601.70 37,396.30 85,000.01) .641/1999 44.3ca.gc 40,6?1.20 85,000.00 6/01/2000 41.742.95 - 43,757.15 55,000.00 6/01/2001 31,389.40 - 46.614.60 $5,000.00 6/01/2002 35,73].15 69,266.as 35,000.00 4/01/2003 33,260.50 - 51,739.'50 a15,000.D0 4101/2;004 34,954.55 - 34,040.43 85,000.110 6101/2005 28,917.15 56,1462.45 $5,000-00 6/01/2006 26,823.45 58,106.45 05,000.00 6/01/2007 24,967.05 60,032.95 65,000.00 6/01/2000 23,239.85 - 61,760.15 85,000.00 -6/01/2009 71,631.6s - .463,368.3S 95,000.00 6/01/2010 20,134.50 - ", 565. 20 85,000.00 6/01/2011 16,741.65 - 66,256.35 85,004.00 . 6/01/2012 17,445.40 - 67.554.60 85,000. SD 6101/203 16,238.40 - 616,761-60 85,000.00 +61'01/2014 15;114.T0 :{9.385.30 165,000.00 TOIAL 713,171.25 - I,On ,826.75 1,735,000.00 Ehlers Ccncpsnits Firtarclal Advisors and ConsUttonts YIELD STATIVICS Fitt - aM ICNIC 4112/1"D 2:56 v10 Atcrued Interest few 04/30/1990 to 04/!5!1990... - 6rerw life ...................................... 11.552 PEARS /and Years ....... *of ........ ............ ....... ..- S8.236.2S Avor pe Cpgon4-.0-64 ............................ 13.01039~211 Net Interest Cent LR] q ........................... 13.010394211 $end Yield for Arbitrage Itir9asee................. i.3D01127% Tem trderesc Cost (fie).. ........................ 7.3001127% Effective Interest Cost (EIC) ..................... 7.3001127% Exhibit D Cr1'r of NUTCHIPI.SOM. MINNESOTA DEBT SF-RME SC�-PEDLILE $475,000 Q 0. TAX P#CREAiLMT BCM& SERIES 19908 BATS KnICItA_ U+7 F DMMST TOTAL. 10/30/1990 $15,543.75 $15,543.75 4!30/1991 $15,543.75 $15.543.75 10/30/1981 015.543.75 #15,543.75 4/3011992 $25,000 6.2001 $15,343.75 $40,543.75 !0!3011992 $14.768.75 $14.768.15 4/30/1993 $50.o00 6.2501 $14.7614.76 $6x,749.75 10/30/1993 $13,206.25 $13,206.25 4/30/1994 150,000 6.3001 $13,206.25 $63.206.25 10/30/1994 $11.631.15 $11,631.25 4130/1995 $50,000 6,400% 111.631.25 161,631.25 1013011995 $10,031.25 $10.031.25 4/30/1996 $50.000 6.500% $10,031.25 $60,031.25 10/30/1996 $8,4.25 1e,406.25 4/30/1997 $50,D04 6.6001 18.406.25 $58,406.25 10130/1997 /6.756.23 $6.x50.26 4/30/1998 $50.000 6.700% 96.736.25 $56.756.n 10/30/1948 $5,041.25 $mlt- 15 4/30/1999 $i 5, 000 6.7501 15,0e1.2} iA0,081.25 10!30/1999 $2,550.00 $2.350.00 4/30/2000 $75.000 6.800".6 $2,550.40 171.350.00 $475,000 1207,037.50 $682,037.50 Exhibit E (AS MODIFIED SEPTEMBER 8, 2015) Parcels Authorized for Acquisition Development District # 4 Authorized Areas Updated: 27 July 2015 Legal Description Reference Block 24 North 1/2 Hutchinson Dale Ritz / Ford Rolf lots on Hwy 7 Block 23 North 1/2 Hutchinson Wright lot etc. / Hwy 7 Block 19 North 1/2 Hutchinson NAPA / Car dealerships / Standard printing Block 18 North 1/2 Hutchinson Rental place on Adams Street Block 15 North 1/2 Hutchinson Budget Hotel on Hwy 7 Block 16 North 1/2 Hutchinson Old houses / Apt on High Street NE Block 41 North 1/2 Hutchinson Old medical clinic Block 42 North 1/2 Hutchinson Group home Block 51 North 1/2 Hutchinson Apartment (former church?) Block 50 North 1/2 Hutchinson DQ block, Main Street Block 49 North 1/2 Hutchinson State Theatre block, Main Street Block 9 South 1/2 Hutchinson Police station block Block 8 South 1/2 Hutchinson Main street buildings (State Farm / Zella's block) Block 7 South 1/2 Hutchinson Library Square east block (George Quast house) Block 6 South 1/2 Hutchinson Houses / Old cars building / VFW block Block 5 South 1/2 Hutchinson Depot Block Block 4 South 1/2 Hutchinson B & C Plumbing/ Betker Builders Block 12 South 1/2 Hutchinson Hutch Cafe block/ Main Street Block 13 South 1/2 Hutchinson 101 Park Place Block / Quast Houses Block 16 South 1/2 Hutchinson Old houses on Adams, just south of Depot MarketPlace Block 17 South 1/2 Hutchinson Former lumberyard block SE of Depot Block 18 South 1/2 Hutchinson Older houses / welding shop on 2nd Ave. SE Block 27 South 1/2 Hutchinson Main Street / Post Office / American Legion / former Dental clinic Block 25 South 1/2 Hutchinson Old buildings converted to offices/ Fire Dept. Block 23 South 1/2 Hutchinson Old houses/ Trailer storage building Block 22 South 1/2 Hutchinson Old houses/ railroad right-of-way Block 38 South 1/2 Hutchinson Farmer's Elevator Assn. Quonsets, etc. Block 39 South 1/2 Hutchinson Lakes Gas block Block 45 South 1/2 Hutchinson Old houses between 4th & 5th Aves SE Block 44 South 1/2 Hutchinson Old houses between 4th & 5th Aves SE, area next to park NW 1/4 SW 1/4 Sect -01, Twp - 116, Range -030 Hutchinson High school W 1/2 Sect 5, Twp 116, Range -029 Haefner Industrial Building HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Ordinance No. 15-744 - Amending Chapter 112 Department: Administration/Legal LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At the last City Council meeting, the Council reviewed revisions to various sections of Chapter 112 of the Hutchinson City Code pertaining to liquor regulations. These suggested revisions were a result of topics discussed held at a Council workshop on August 11, 2015. No changes have been made to the ordinance that was proposed at the last Council meeting. For review, the proposed revisions are as follows: Section 112.001 - Revising the restaurant definition to reduce the seating requirement from 85 to 30 guests Section 112.088 - Revising the hours of sales to begin at 8:00 a.m. on Sundays instead of 10:00 a.m. 112.094 - Adding this section to authorize liquor sales at community festivals Section 112.135 - Revising the definitions to include a definition of microdistillery Section 112.141 - Adding this section to include microdistillery cocktail room licenses BOARD ACTION REQUESTED: Second reading and adoption of Ordinance No. 15-744 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. 15-0744 An Ordinance Amending Sections of Chapter 112 — Liquor Regulations The City Council hereby ordains: §112.001 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. 3.2% MALT LIQUOR. Malt liquor containing not less than 0.5% alcohol by volume nor more than 3.2% alcohol by weight. This definition includes so-called "malt coolers" within the alcoholic content limits stated herein. ALCOHOLIC BEVERAGE. Any beverage containing more than 0.5% alcohol by volume, including, but not limited to, 3.2% malt liquor, wine and liquor as defined in this section. AFFILIATE or SUBSIDIARY COMPANY. A company in which a manufacturer or its stockholders own a majority of the stock. APPLICANT. Any person making an application for a license under this chapter. APPLICATION. A form with blanks or spaces thereon, to be filled in and completed by the applicant as a request for a license, furnished by the city and uniformly required as a prerequisite to the consideration of the issuance of a license for a business. BREWER. A person who manufactures 3.2% malt liquor for sale. BUSINESS RECORDS. Include, but are not limited to, articles of incorporation, bylaws, corporate minutes, records of sale and shipping documents, as well as lists of complaints whether or not those complaints have resulted in a filing with an appropriate government agency, and also include records relating to any litigation threatened or commenced against a license holder arising out of the operation of licensed premises pursuant to the license granted herein. CLUB. (1) An incorporated organization organized under the laws of the state for civic, fraternal, social or business purposes, for intellectual improvement or for the promotion of sports, or a congressionally chartered veterans' organization, which: (a) Has more than 50 members; (b) Has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; and (c) Is directed by a board of directors, executive committee or other similar body chosen by the members at a meeting held for that purpose. (2) No member, officer, agent or employee shall receive any profit from the distribution or sale of beverages to the members of the CLUB, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. The CLUB or congressionally chartered veterans' organization must have been in existence for at least three years. COMMISSIONER. The State Commissioner of Public Safety. HOTEL. An establishment where food and lodging are regularly furnished to transients and which has: (1) A resident proprietor or manager; (2) A dining room serving the general public at tables and having facilities for seating at least 85 guests at one time; and (3) At least ten guest rooms. INDEPENDENT ACCOUNTANT. An accountant engaged in the practice of public accountancy who is not an employee of, on the staff of or otherwise affiliated with the licensed premises or the party holding the license at issue. An accountant who derives more than one- third of his or her gross income from services performed for the license holder is not INDEPENDENT as defined herein. The term INDEPENDENT ACCOUNTANT includes but is not limited to certified public accountants and licensed public accountants. INTOXICATING LIQUOR or LIQUOR. Ethyl alcohol and distilled, fermented, spirituous, vinous and malt beverages containing in excess of 3.2% of alcohol by weight. This definition includes so-called "wine coolers" and "malt coolers" within the alcoholic content limits stated herein. LICENSE. A document, issued by the city to an applicant, permitting him or her to carry on and transact the business stated therein. LICENSEE. An applicant who, pursuant to his or her approved application, holds a valid, current, unexpired license, which has neither been revoked nor is then under suspension, from the city for carrying on the business stated therein. LICENSE FEE. The money paid to the city pursuant to an application and prior to issuance of a license to transact and carry on the business stated therein. LICENSED PREMISES. The premises described in the issued license. MALT LIQUOR. Any 3.2% malt liquor, ale or other beverage made from malt by fermentation and containing not less than 0.5% alcohol by volume. MANUFACTURER. Every person who, by any process of manufacture, fermenting, brewing, distilling, refining, rectifying, blending or by the combination of different materials, prepares or produces alcoholic beverages for sale. MEAL. Entrees and sandwiches offered on a restaurant menu. The term does not include appetizers, snacks and non meal -related food. MINOR. Any natural person who has not attained the age of 21 years. OFF -SALE. The sale of alcoholic beverages in original packages for consumption off the licensed premises only. ON -SALE. The sale of alcoholic beverages for consumption on the licensed premises only. PACKAGE and ORIGINAL PACKAGE. Any container or receptacle holding alcoholic beverages, which container or receptacle is corked, capped or sealed by a manufacturer or wholesaler. RESTAURANT. An establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly served at tables to the general public, and having seating capacity for at least &S 30 guests. A RESTAURANT qualifying under this chapter shall submit proof to the City Council that not less than 40% of the gross sales of the establishment for which the on -sale license is to be used are from the serving of food. Upon the request of the City Administrator, the applicant shall submit a financial statement signed by an independent accountant that indicates the total gross sales of the establishment and the total food sales of the RESTAURANT for the calendar year or fiscal year preceding the date of the renewal application. SALE, SELL and SOLD. All barters and all manners or means of furnishing alcoholic beverages to persons, including the furnishing in violation or evasion of law. WHOLESALER. Any person engaged in the business of selling alcoholic beverages to a licensee from a stock maintained in a warehouse. WINE. A beverage made without rectification or fortification by the fermentation of sound ripe grapes, grape juice, other fruits or honey, and also carbonated wine, wine made from condensed grape must, wine made from other agricultural products, imitation wine, compounds sold as WINE, vermouth, cider, perry and sake, containing not less than 0.5% nor more than 14% alcohol by volume. This definition includes so-called "wine coolers" within the alcoholic content limits stated herein. ('89 Code, § 5.01) (Am. Ord. 93-76, passed 3-23-93; Am. Ord. 98-217, passed 2-10-98) § 112.088 HOURS AND DAYS OF SALES. No on -sale of intoxicating liquor shall be made between the hours of 1:00 a.m. and 10=00 8:00 a.m. on Sunday, nor between 12:00 midnight and 8:00 a.m. on Monday, nor between the hours of 1:00 a.m. and 8:00 a.m. on Tuesday through Saturday. No off -sale of intoxicating liquor shall be made on Sunday nor before 8:00 a.m. or after 10:00 p.m. on Monday through Saturday, nor on New Year's Day, January 1; July 4; Thanksgiving Day; or Christmas Day, December 25. No sale of intoxicating liquor shall be made after 8:00 p.m. on December 24. ('89 Code, § 5.43) (Am. Ord. 96-172, passed 9-10-96; Am. Ord. 97-213, passed 11-25-97; Am. Ord. 98-217, passed 2-10-98; Am. Ord. 10-0558, passed 9-14-10) Penalty, see § 10.99 § 112.094 Community Festivals The City Council may authorize a holder of a retail on -sale intoxicating liquor license issued by the City to dispense intoxicating liquor off premises at a community festival held within the City of Hutchinson. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance as prescribed by Minnesota statute section 340A.409 to cover the event. LICENSES RELATED TO BREWERS AND DISTILLERS §112.135 DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. BREW ON -PREMISE STORE. Facility that provides the ingredients and equipment for a customer to use to brew malt liquor at the store. BREW PUBS. Brewer that is a restaurant with a full on -sale intoxicating liquor license that brews their own beer for consumption on their licensed premise only. BREWPUBS OFF -SALE. Brew pubs (as defined in this section) may sell product (growlers) brewed on -premise to be consumed off -premise in 64 oz. bottles or 750 ml. bottles. BREWER OFF -SALE (GROWLERS). A brewer who brews less than the amount of barrels indicated in M.S. § 340A.301, Subd. 6(d ) and (c), as it may be amended from time to time, of malt liquor in a year may sell malt liquor brewed by the brewer for consumption off -premise. BREWERS: Persons who manufacture malt liquor for sale. MICRODISTILLERY. A distillery operated within the state producing premium, distilled spirits in total quantity not to exceed 40,000 proof gallons in a calendar year. TAPROOMS. Allows for sale of the brewer's own beer for consumption at the brewery location. (Ord. 14-08731, passed 8-12-2014) § 112.141 Microdistillery Cocktail Room License The City council may issue a license for the sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. Provided that: 1.) The applicant is licensed as a microdistiller in the State of Minnesota, 2.) The applicant holds no other microdistillery cocktail room licenses in the State of Minnesota, 3.) The applicant does not also hold a taproom license, and A taproom is not located on the same premises as the proposed microdistillery cocktail room license Adopted by the City Council this day of , 2015. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci vof 0' a_ � Request for Board Action 79 M-W Agenda Item: Consideration of Ordinance No. 15-745 - Adding Section 73.18 - Special Vehicles Department: Administration/Legal LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff F1 Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At the last City Council meeting, the Council reviewed and discussed Ordinance No. 15-745, which regulates various types of special vehicles being driven on City roadways. These vehicles include ATVs, UTVs, mini-trucks and golf carts. As you will recall, the legislature enacted laws that mandate cities to permit these types of vehicles if cities allow them to be operated on city streets. The City already allows operation of golf carts and ATVs on city streets, however the proposed ordinance now includes UTVs. In addition, language pertaining to golf carts (which the City enacted several years ago) are included in this ordinance for easy reference by the Police Department and the public. BOARD ACTION REQUESTED: Second reading and adoption of Ordinance No. 15-745. 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: Section Ordinance No. 15-745 AN ORDINANCE AMENDING CHAPTER 73 TO ADD SECTION 73.18 - REGULATING SPECIAL VEHICLES ON ROADWAYS 73.18.01 Intent 73.18.02 Definitions 73.18.03 Special Vehicle Use on Streets 73.18.04 Penalty § 73.18.01 INTENT. The City intends to permit the operation of all -terrain vehicles, mini trucks, utility task vehicles, or golf carts on designated roadways or portions thereof under the jurisdiction of the City, and under the powers granted to the City pursuant to Minnesota Statute Section 169.045. Authorization to operate these vehicles is by permit only. § 73.18.02 DEFINITIONS. Unless the context indicates otherwise, the following terms have the meanings stated: (A) Special Vehicles (1) "Mini truck" is specifically defined by Minnesota Statutes Section 169.011, subdivision 40a., and means a motor vehicle that has four wheels; is propelled by an electric motor with a rated power of 7,500 watts or less or an internal combustion engine with a piston displacement capacity of 660 cubic centimeters or less; has a total dry weight of 900 to 2,200 pounds; contains an enclosed cabin and a seat for the vehicle operator; commonly resembles a pickup truck or van, including a cargo area or bed located at the rear of the vehicle; and was not originally manufactured to meet federal motor vehicle safety standards required of motor vehicles in the Code of Federal Regulations, title 49, sections 571.101 to 571.404 and successor requirements. A mini truck does not include: (a) a neighborhood electric vehicle or a medium -speed electric vehicle; or (b) a motor vehicle that meets or exceeds the regulations in the Code of Federal Regulations, title 49, section 571.500,and successor requirement. (2) "Utility task vehicle" is specifically defined by Minnesota Statute Section 169.045, Subd. 1(3), and means a side-by-side four-wheel drive off-road vehicle that has four wheels, is propelled by an internal combustion engine with a piston displacement capacity of 1,200 cubic centimeters or less, and has a total dry weight of 1,800 but less than 2,600 pounds. (3) "All -terrain vehicle" is specifically defined by Minnesota Statute Section 84.92, subdivision 8, and means a motorized vehicle of not less than three, but not more than six low pressure or non -pneumatic tires, that is limited in engine displacement of less than 1,000 cubic centimeters and includes a class 1 all -terrain vehicle and class 2 all -terrain vehicle. (B) Streets. "Streets" means any street, highway, avenue, alley, or other public right of way within the jurisdiction of the City, including the entire right of way. § 73.18.03 SPECIAL VEHICLE USE ON STREETS (A)Designation of roadway, permit. The City authorizes the operation of all -terrain vehicles, mini trucks, utility task vehicles and golf carts on all streets in the City as defined in this ordinance. Operation of these vehicles is a privilege which may be revoked at any time if there is evidence that an operator cannot safely operate the vehicle. Special vehicles shall be authorized to operate in the following manner: (1) Issuance of a documented permit required. The city may grant and issue a permit document to the owner for a period not to exceed three years, and which may be renewed. There shall be at the time of filling out the application a permit fee as set by the City Council, as adopted from time to time. No permit is valid unless it is present when the special vehicle is being operated. (2) Issuance of a documented permit not required. The city grants a permit to the operator of a special vehicle during its use for a commercial or business purpose. Operating a special vehicle for this limited purpose does not require a permit application, fee or documented permit. (B) Crossing intersecting highways. The operator, under permit for an all -terrain vehicle, mini truck, or utility task vehicle may cross any street or highway intersecting a designated roadway. (C)Apphcation of traffic laws. Every person operating an all -terrain vehicle, mini truck, or utility task vehicles under permit on designated streets has all the rights and duties applicable to the driver of any other automobile or passenger vehicle under state or federal law or regulation except: (1) where specifically exempted by state law, (2) those provisions of law or regulation that cannot reasonably be applied to an all - terrain vehicle, mini truck, or utility task vehicle, or (3) as otherwise provided in subdivision D. (D)Required equipment on mini trucks. Notwithstanding State Statue Sections 169.48 to 169.68, or any other law, a mini truck may be operated under permit on designated roadways if it is equipped with: (1) at least two head lamps; (2) at least two tail lamps; (3) front and rear turn signal lamps; (4) an exterior mirror mounted on the driver's side of the vehicle, and either an exterior mirror mounted on the passenger's side of the vehicle or an interior mirror; (5) a windshield; (6) a seat belt for the driver and front passenger; (7) a parking brake, and (8) roll-over equipment. (E) Required equipment on golf carts. Golf carts shall display a slow-moving vehicle emblem provided for in Minnesota statute section 169.522, when operated on designated roadways. (F) Insurance. Proof of insurance meeting State requirements for motorcycles is required to receive a permit. (G) Times of operation. All -terrain vehicles, utility task vehicles and golf carts may only be operated on designated roadways from sunrise to sunset, unless equipped with original equipment headlights, taillights, and rear -facing brake lights. They shall not be operated in inclement weather, except during emergency conditions, or when visibility is impaired by weather, smoke, fog or other conditions, or at any time when there is insufficient visibility to clearly see persons and vehicles on the roadway at a distance of 500 feet. (H)Special events. In conjunction with a special event permit issued by the City, any provision within this ordinance may be waived and the City Council may permit the operation of any special vehicle allowed under state law. § 73.18.04 PENALTIES. Any person convicted of violating any provision of this chapter shall be guilty of a misdemeanor. Notwithstanding violating the provisions of this chapter, any person convicted of violating parking, traffic or vehicles laws or regulations in the operation of a vehicle regulated pursuant to this chapter shall be subject to those criminal and/or civil procedures or penalties which are assigned to such offenses. Adopted by the City Council this day of , 2015. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator Memo To: Mayor Forcier and City Council Members From: Matt Jaunich, City Administrator Date: 8/3/15 Re: Special Vehicle Ordinance Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320-587-5151/Fax 320-234-4240 On Tuesday you will be considering the 2nd reading of Ordinance 15-745, Amending Chapter 73 regulating special vehicles. In consideration of adopting that ordinance, I wanted to spend a little bit of time clarifying a couple of items that have come up since our first reading of the ordinance. First off, there is this belief that the adoption of this ordinance will allow ATV's and other "special vehicles" access to our public streets for the first time. Please note that this assumption is inaccurate. ATV's have been able to use city streets since at least 2007 and Golf Carts since at least 1989. The most recent ATV ordinance was adopted in September of 2007 and allowed Class 1 ATV's use of city streets in the "most direct route", while Class 2 ATV's could use any city street. Prior to 2007, City Code simply referenced State Statutes 84.92 through 84.929 when it came to ATVs. Secondly, what is being proposed for adoption is an ordinance that really brings our previous ATV ordinance into compliance with state statutes and combines that ordinance with our golf cart ordinance. If there is one big difference in the new ATV ordinance, it's that the new ordinance will define and allow additional special vehicles like mini trucks and UTV's. While we have allowed these on our streets for the past couple of years, they simply weren't addressed in any city ordinance. Now they will be. Lastly, please remember that the Council has final say on whether or not these types of vehicles can use city streets. State Law only allows these types of vehicles to use city streets if authorized to do so by the City Council through an ordinance and permit process. Please note that our proposed ordinance more or less mimics what state law says. If you have any additional questions and/or concerns, please let me know. Matt HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Ordinance No. 15-746 - Repealing Section 73.15 & 73.16 Department: Administration/Legal LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As discussed at the last Council meeting, enclosed for the Council's consideration is an ordinance that repeals the City's existing golf cart ordinance and the City's ATV ordinance. If the Council has approved the second reading and adoption of the new "special vehicle" ordinance in the immediate prior action, I would ask that you approve this ordinance which acts to repeal the City's existing golf cart and ATV ordinances. BOARD ACTION REQUESTED: Second reading and adoption of Ordinance No. 15-746. 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. 15-746 — AN ORDINANCE REPEALING SECTIONS 73.15 AND 73.16 OF THE HUTCHINSON CITY CODE — ALL -TERRAIN VEHICLE TRAFFIC CONTROL AND REGULATIONS AND MOTORIZED GOLF CARTS; OPERATION; PERMITS The City Council of the City of Hutchinson does hereby repeal the following sections of its City Code: § 73.15 ALL t TE v n P. VEHICLE E Ty n T FIC CONTROL 44D y EG rr n TIWn m (A) Definitions. For- pur-poses of this seetion the following definitions shall apply tialess the ateEt ell -ly ;,,,aieates , diff- -eat f not less than three low but not fner-e than si�E tir-es, that is limited in eagi Class 2 all to - vob iek has ., total has a total dfy weight d y weight (u) Operati CLASS of loss * 1,a 900 (b) CLASS of 900to 1,500 g e riEtieris. 1 ALL T T-0 p nds 7 ALL T TE r n it is v n PA n 1041G v n P. VEHICLE. to operate E An i n n all a Class , n terr�ehicle '�wsi vehicle that tha (4) Upen any eetinty read er- state highway within the eity, er- within t4 -e designa+ed dewntewn area as set fei4h in Chapter -74, Sehedtile 1; c) Upon than the directroAte f the any street,other- most of owner's -or- street, taking thereafter- the mest dir-eet r-ettte te the near -est d it f+em the ei" ,�o +, ;1• (ti) Dur-inn t1,0 hat -s be:�weea !QiQQ p.fn. and 7.nn ., of the day „eE (7) ; suffeendi (4) A4 a rate A of speed a greater- +1,a than reasonable or- , proper- tinder- 1 !1!1 all of the- , F"" ehaaaels E)r- when a speed within greater- 100 feet of 10 fnph a fisher-man, when iee within hatise, feet 6f skating any take mare r-ifik Of slidifig area-, (9) in aear-eltss, FeEkless or- negligent manner-, so as to endanger- the person (1 To t1,;,,g A TAI eEe0 0) tis0 tow any per-son or- other- than a disabled ,,,,o p„ltrvlie street, (G) r-emoving (1 1) Speeial snow To eh., s tise. An 4afn eor-ataever-animal,anywild A TAI the r-esidenee of any elas:mTeetiermay of the owner- o- .1.,,ti, be used or- operator- e tib for- the of the ems= all ter-r-ain vehiele. the vehiele is equipped at least one headlight afid one taillight, eaeh of i i - - - ndlepower- as standards pr-eser-ibed theCommissioner- by of Publie atle of Safet the Commissioner-, . and all of whieh are stibjeet to the approval of (E) Efner-g 3a. Na:�withstaadiag any prohibition in this seetion, an ATAI dur-ing the period of tifne when, and a laeations where, (F) a snow Owner violation of upon the esp,,,,s;>„l4y. this seetiefl. f:eadway r-eader-s it ; „1 The paf4-y tr-a-vel 1;,1 holding for- the by at4afnabile owner- title of to the impossible. any A TAI ATAI shall to per-mit its be eaneltisively pr-estifned to ('99 !'ode § be the Q 1n) owner- (Ari, tialess n-,a 07 the 0471 ATAI shall passed ha-,ve n 25 been 07) stolen and so r-epoi4ed to a lavl, s§ 73.16 MOTORIZED GOLF CARTS; • OP 'DAT-ION; , PERMITS. the roadways in st-iet eamplianee of all streets, with eEeept this seet these o as are prohibited by r-eseltition of the Gatifleil, and only (l) (G) Designation The Chief of roadways. of PPoliee- or- iisniCYdesignee The Chief of Poliee shall ha-,ve shall desi— the at4haf4y t6 gr-an ?tdwa-ys or- shall tise the most d -eet r-atite to and f .,,ti, the golf eat -so the e4y; (4) The operation is not dur-ing 1nGteffient weather-, nor- when visibi4y is impair-ed by wea+her-, smeke, feg er- ether- eendifiens, fief: when t4er-e is ifistiffieient light te G) The materized golf eai4 displays ^ sl 'ehielL emblem, as >1� (6) The mat�Tzedgolf eai4 is equipped withrr-ear- vielvV (7) M.S. 49(5) The ., it operator- zame}ldo'a has instir-anee eaver-age ffam tiffie-t6el�t��eles; as proyide'accrby st ute (presently and -011111 ;._ - _ AM 1111i'' iarrr •s• Adopted by the City Council this day of , 2015. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator _ . . i -011111 ;._ - _ AM 1111i'' iarrr •s• Adopted by the City Council this day of , 2015. Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci vof 0' a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14456 Authorizing Issuance of $2,240,000 G.O. Bonds 2015A Department: Finance LICENSE SECTION Meeting Date: 9/8/2015 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 2015 street and infrastructure improvements. The total par value of the bonds is $2,240,000 with the improvements as follows: $ 477,366 2nd Avenue SE Reconstruction $ 1,553,897 2015 Pavement Management Program $ 140,000 Contingency $ 2,171,263 Total 2015 Project Costs $ 68,737 Plus: Issuance Costs $ 2,240,000 Par Value of Bonds The debt service payments for this issuance will be made over a 15 year period from the debt service fund with assessments and tax levy as the funding sources. I received notice that the bond rating has been affirmed at AA-, the same rating as in the past. I will forward that document once it has been finalized. 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 $2,240,000 general obligation improvement bonds, series 2015A, by adopting resolution 14456. 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 $2,240,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2015A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on September 8, 2015, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): 1 through 16 RESOLUTION NO. 14456 RESOLUTION RELATING TO $2,240,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2015A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _8th_ day of September, 2015. Matt Jaunich (SEAL) City Administrator The City Administrator reported that (_) proposals had been received by the City prior to 10:00 A.M., Central Time today for the purchase of the Bonds in accordance with the Terms of Proposal for the $2,240,000 General Obligation Improvement Bonds, Series 2015A of the City as previously approved by a resolution of the City Council. The bids have been read and tabulated, and the terms of each have been determined to be as follows: Name of Bidder Bid for Interest Principal Rates (See Attached) Total Interest Cost -Net Average Rate Councilmember introduced the following resolution and moved its adoption, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 14456 RESOLUTION RELATING TO $2,240,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2015A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the City), as follows: Section 1. Recitals. 1.01. Authorization. This Council has heretofore ordered various local improvement projects designated as the 2nd Avenue SE Reconstruction and 2015 Pavement Management Plan (together, the Improvements), to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429. This Council has previously determined to issue and sell $2,240,000 principal amount of General Obligation Improvement Bonds, Series 2015A, of the City (the Bonds) to defray a portion of the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65. The remaining costs of the Improvements, if any, will be paid from City funds and from interest earnings on proceeds of the Bonds. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent financial advisor, to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms and Conditions of Sale for the Bonds, (—) sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of , of , (the Purchaser), to purchase the Bonds at a price of $ 'the Bonds to bear interest at the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the City Administrator are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.03. Issuance of Bonds. All acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to the issuance of the Bonds have been done, do exist, have happened, and have been performed, wherefore it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof, and to issue the Bonds forthwith. 1.04. Maturities. This Council finds and determines that the maturities of the Bonds, as set forth in Section 3.01 hereof, are warranted by the anticipated collection of the assessments and ad valorem taxes to be levied for the cost of the Improvements. 1.05. Consolidation of Improvements. Pursuant to Minnesota Statutes, Section 435.56, the Improvements are hereby consolidated and joined as one project. Section 2. Form of Bonds. The Bonds shall be prepared in substantially the form attached as Exhibit A hereto. Section 3. Bond Terms, Execution and Delivery. 3.01. Maturities, Interest Rates, Denominations, Payment. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Improvement Bonds, Series 2015A" and shall be payable primarily from the 2015 Improvement Bond Fund created in Section 4.02 hereof. The Bonds shall bear a date of original issue of October 1, 2015, shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from the date of original issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount Rate Year Amount Rate 2017 $140,000 2025 $165,000 2018 155,000 2026 165,000 2019 155,000 2027 125,000 2020 155,000 2028 130,000 2021 155,000 2029 135,000 2022 160,000 2030 140,000 2023 160,000 2031 140,000 2024 160,000 [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 described herein. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Dates, Interest Payment Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 2016, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. Interest on the Bonds will be computed on the basis of a 360 -day year consisting of twelve 30 -day months and will be rounded pursuant to the rules of the Municipal Securities Rulemaking Board. 2 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Reui�. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 3.04. Appointment of Initial Reig stray. 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 2015 Improvement Bond Fund described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemption. Bonds maturing in the years 2017 through 2024 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 2025 and thereafter 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, 2024 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: Bonds Maturing on February 1, 20 Sinking Fund Aggregate Payment Date Principal Amount] M 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 3.03 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. 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. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator. In case any officer whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the City Administrator to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. 3.07. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. E "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter from the City to DTC. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor, in the form presented to this Council with such changes, omissions, insertions and revisions as the 0 Mayor shall deem advisable, is hereby authorized, and execution of the Representation Letter by the Mayor shall be conclusive evidence of such approval. The Representation Letter shall set forth certain matters with respect to, among other things, notices, consents and approvals by registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this resolution. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 4. Security Provisions. 4.01. 2015 Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "2015 Improvement Construction Fund" (hereinafter referred to as the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) the proceeds of the sale of the Bonds, and (b) all collections of special assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Bonds set forth in Section 8 hereof. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council, but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 2015 Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Finance Director shall maintain a separate and special bookkeeping fund designated "2015 Improvement Bond Fund" (hereinafter referred to as the Bond Fund) to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (b) any taxes levied in accordance with this resolution, (c) all income derived from the investment of amounts on hand in the Bond Fund, and (d) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for 7 that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the City Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one -twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. The City reserves the right to establish a revolving fund pursuant to Minnesota Statutes, Section 429.091, subdivision 7a, and to provide that the Bonds shall be payable from such revolving fund. If the City determines to establish such a revolving fund and to provide that the Bonds are payable therefrom, then any remaining amounts in the Construction Fund shall be deposited in the construction account in the revolving fund and amounts in the Bond Fund shall be deposited in the debt service account in the revolving fund. Any future collections of special assessments levied with respect to the Improvements shall be deposited in the construction account or debt service account as the City Council or an officer designated by the City Council may determine. 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Fund as may be required to finance costs of the Improvements not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds, levy or agree to levy by resolution sufficient additional special assessments and ad valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of said additional obligations, will produce revenues at least five percent (5%) in excess of the amount needed to pay when due the principal and interest on all bonds payable from the Bond Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of each of the Improvements it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the Improvements. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be in the principal amount of $437,671 payable in not more than 10 installments, the first installment to be collectible with taxes during the year 2016, and that deferred installments shall bear interest at the rate of 3.70% per annum from the date of the resolution levying said assessment until December 31 of the year in which the installment is payable. 4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest in the Bonds as the same become respectively due. For the purpose there is hereby levied upon all of the taxable property of the City a direct, annual ad valorem tax, which shall be spread upon the tax rolls prepared in each of the following years and collected with other taxes in the following years and amounts as follows: Levy Years Collection Years Amount SEE ATTACHED SCHEDULE I The foregoing tax levies are such that if collected in full they will produce at least five percent (5%) in excess of the amount needed to pay when due the principal of and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are outstanding and unpaid; provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 4.06. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the taxes and special assessments levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5%) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on February 1 in any year the sum of the balance in the Bond Fund plus the amount of taxes and special assessments theretofore levied for the Improvements and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest become due on all Bonds payable therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. 0 Section 5. Defeasance. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. Registration, Certification of Proceedings, Investment of Moneys, Arbitrage and Official Statement. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and Regulations promulgated thereunder (the Regulations), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Improvements and any other improvements financed pursuant to Section 4.01 will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use or other agreement with any non- governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code. 10 6.04. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations, stating the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. 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 Bonds: (i) the City is a governmental unit with general taxing powers; (ii) the 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 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 2015 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 Bonds. 6.06. Qualified Tax Exempt Obligations. The City hereby designates the Bonds 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 2015 it does not reasonable 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. 6.07. Official Statement. The Official Statement relating to the Bonds, dated August 27, 2015, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 6.08. Reimbursement. The City certifies that the proceeds of the 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 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 11 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 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 (a) 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 (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2015, 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, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles 12 promulgated by the Financial Accounting Standards Board as modified 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: "VALUATIONS—Current Property Valuations," "DEBT—Direct Debt," and "TAX RATES, LEVIES AND COLLECTIONS—Tax Levies and Collections" and "GENERAL INFORMATIONUS Census Data -Population Trend" and "- Employment / Unemployment Data,", which information may be unaudited. 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 a Material Fact (as defined 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 ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact"): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; 13 (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, if material; (H) Bond calls, 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 (N) 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, a material fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental 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: 14 (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 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 15 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 8. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Klein Bank, on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 16 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2015A No. R- $ Interest Maturity Date of Rate Date Original Issue CUSIP % February 1, 20 October 1, 2015 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: 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 above named, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360 -day year consisting of twelve 30 -day months, payable on February 1 and August 1 in each year, commencing August 1, 2016, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of Bond Trust Services Corporation, in Roseville, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the "Bond Registrar"), or its successor designated under the Resolution described herein. This Bond is one of an issue in the aggregate principal amount of $2,240,000 (the "Bonds"), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date, issued pursuant to a resolution adopted by the City Council on September 8, 2015 (the "Resolution") to pay the cost of construction of local improvements in the City (the "Improvements"), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. This Bond is payable primarily from the 2015 Improvement Bond Fund (the "Fund") of the City, but the City is required by law to pay maturing principal hereof and interest thereon out of any funds in the treasury if moneys on hand in the Fund are insufficient therefor. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of single maturities. EN Bonds maturing in the years 2016 through 2024 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 2025 and thereafter are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in the maturities selected by the City and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 2024 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. [Bonds maturing on February 1, 20 are subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Sinking Fund Aggregate Payment Date Principal Amount 20 $ 20 (maturity) At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond, not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price herein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. A-2 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has levied or agreed to levy special assessments on property specially benefitted by the Improvements and ad valorem taxes on all taxable property within the City, collectible in the years and amounts required to produce sums not less than 5% in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Fund in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any charter, constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by by manual signature of the authorized representative of the Bond Registrar. IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature - City Administrator) (Facsimile Signature — Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: BOND TRUST SERVICES CORPORATION, as Bond Registrar A-3 Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM as tenants in common TEN ENT as tenants by the entireties JT TEN as joint tenants with right of survivorship and not as tenants in common UNIF TRANS MIN ACT................Custodian.............. (Cust) (Minor) under Uniform Transfers to Minors Act................................................... (State) Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: This signature(s) to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration, enlargement or any change whatsoever. Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Bond Registrar, which requirements include membership or participation in the Securities Transfer Association Medalion Program (STAMP) or such other "signature guaranty program" as may be determined by the Bond Registrar in addition to or in substitution for STAMP, all in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. ME SCHEDULEI PROJECTED TAX LEVIES Date Lev 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total COUNTY AUDITOR'S CERTIFICATE AS TO BOND REGISTRATION AND TAX LEVY I, the undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certify that there has been filed in my office a certified copy of Resolution No. _14456_ adopted September 8, 2015, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $2,240,000 General Obligation Improvement Bonds, Series 2015A, dated as of October 1, 2015, and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2015. McLeod County Auditor (SEAL) HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M -W Agenda Item: Ordinance No. 15-747 - Franchise Agreement with Nu -Telecom Department: Administration/Legal LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City's cable television franchise agreement with Nu -Telecom is set to expire at the end of this month. The City Charter requires that franchise agreements be approved in ordinance form and that prior to final passage of such an ordinance, a public hearing be held. Please find attached a copy of the proposed franchise agreement with Nu -Telecom. The existing franchise agreement with Nu -Telecom has been in effect for 15 years. The new agreement is for 10 years so that the franchise agreements with Nu -Telecom and Mediacom will be expiring in the same years in the future to make negotiations with both providers easier and more equitable. The new proposed agreement has also been modified slightly to address changes in technology since the time of the enactment of the previous agreement and to reflect that the franchisee is actually with Nu -Telecom rather than Hutchinson Telephone Company, who was the original franchisee. The agreement has also been changed to reflect an increased insurance requirement of $1.5 million up from $1 million to adequately protect the City from damage claims arising out of Nu -Telecom's operations under this franchise agreement. Also, Nu -Telecom will make a $5000 payment for equipment upgrades at City Center and HCVN. Things that have not changed from the last agreement include: • the requirement to provide up to three public access channels upon the City's request • subscriber fees paid to the City of Hutchinson will remain at $.85 per month • Nu -Telecom will continue to pay 5% of its gross revenues for cable television service to the City of Hutchinson The fees paid to the City are used in part to help fund the operations of Channel 7 and Channel 10. The City used an attorney specializing in telecommunications franchises, Mr. Robert Vose from the firm of Kennedy and Graven, to negotiate the contract. It is expected that Mr. Vose will be present at the public hearing on this franchise, which will be set for September 22, 2015. HCVN is currently reviewing the franchise agreement and will provide any comments if necessary,at the public hearing. BOARD ACTION REQUESTED: Review first reading of Ordinance No. 15-747 and set second reading and public hearing for September 22, 2015. 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. 15-747 AN ORDINANCE GRANTING A FRANCHISE TO NEW ULM TELECOM, INC. TO CONSTRUCT, OPERATE, AND MAINTAIN A CABLE TELEVISION SYSTEM IN THE CITY OF HUTCHINSON; SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF THE FRANCHISE; PROVIDING FOR REGULATION AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS The City Council of the City of Hutchinson ordains: STATEMENT OF INTENT AND PURPOSE The City intends, by the adoption of this Franchise, to bring about the development of a Cable Communications System, and the continued operation of it. Such a development can contribute significantly to the communication needs and desires of many. Further, the City may achieve better utilization and improvement of public services with the development and operation of a Cable Communication System. Past studies by the City have led the way for organizing a means of procuring and securing of Cable Communications System which, in the judgment of the Council, is best suited to the City. This has resulted in the preparation and adoption of this Franchise. FINDINGS In the review of the franchise renewal request by New Ulm Telecom, Inc. locally known as NU - Telecom ("Grantee"), and as a result of a proceeding affording the opportunity for public comment, the City Council makes the following findings: A. The Grantee's technical ability, financial condition, legal qualifications, and character were considered and approved in a full public proceeding after due notice and a reasonable opportunity to be heard; B. Grantee's plans for operating and maintaining the System were considered and found adequate and feasible in a full public proceeding after due notice and a reasonable opportunity to be heard; C. The Franchise granted to Grantee by the City complies with the existing applicable Minnesota Statutes, federal laws and regulations; and D. The Franchise granted to Grantee is nonexclusive. SECTION 1. SHORT TITLE AND DEFINITIONS 464396v2 RJV HU125-6 1. 1) Short Title. This Franchise Ordinance shall be known and cited as the NU -Telecom Cable Communications Ordinance. 1.2) Definitions. For the purposes of this Franchise, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory, The word "may" is directory and discretionary and not mandatory. A. "Basic Cable Service" means any service tier which includes the lawful retransmission of local television broadcast signals and any public, educational, and governmental access programming required by the franchise to be carried on the basic tier. Basic Cable Service as defined herein shall not be inconsistent with 47 U.S.C. § 543(b)(7). B. "City" means City of Hutchinson, a municipal corporation, in the State of Minnesota, acting by and through its City Council. C. "City Council" means the Hutchinson, Minnesota City Council. D. "Cable Communications System" or "System" means a system of antennas, cables, wires, lines, towers, waveguides, or other conductors, Converters, equipment, or facilities located in City and designed and constructed for the purpose of producing, receiving, transmitting, amplifying, or distributing audio, video, and other forms of electronic signals in City. System as defined herein shall not be inconsistent with the definition as set forth in Minn. Stat. § 238.02, subd. 3 and 47 U.S.C. § 522(6). E. "Cable Programming Service" means any video programming provided over a cable system, regardless of service tier, including installation or rental of equipment used for the receipt of such video programming, other than: (1) Video programming carried on the Basic Service Tier; (2) Video programming offered on a pay -per -channel or pay -per -program basis; or (3) A combination of multiple channels of pay -per -channel or pay -per - program video programming offered on a multiplexed or time -shifted basis so long as the combined service: (i) consists of commonly -identified video programming; and (ii) is not bundled with any regulated tier of service. Cable Programming Service as defined herein shall not be inconsistent with the definition as set forth in 47 U.S.C. § 543 (1)(2) and 47 C.F.R. 76.901(b). F. "Cable Communications Service" means the provision of television reception, communications and/or entertainment services regulated pursuant to Minn. Stat. § 238.01 et M. as may be amended from time to time for direct or indirect compensation, or as otherwise provided by this Franchise Ordinance, and distributing the same over a Cable 464396v2 RJV HU125-6 Communications System. This definition shall not include telephone services regulated pursuant to Minn. Stat. § 237.01 et seq. as may be amended from time to time. G. "Converter" means an electronic device which converts signals to a frequency acceptable to a television receiver of a Subscriber and by an appropriate selector permits a Subscriber to view all Subscriber signals included in the service. H. "Drop" means the cable that connects the ground block on the Subscriber's residence to the nearest feeder cable of the System. I. "FCC" means the Federal Communications Commission and any legally appointed, designated or elected agent or successor. J. "Franchise" or "Cable Franchise" means this ordinance and the contractual relationship established hereby. K. "Franchise Fee" means the fee or assessment imposed by the City on a Grantee solely because of its status as a recipient of a Cable Franchise. The term "Franchise Fee" does not include: (i) any tax, fee or assessment of general applicability; (ii) capital costs which are required by this Franchise; (iii) costs related to the provision of public, educational, or governmental access programming; (iv) requirements or charges incidental to awarding or enforcing this Franchise, including payments for bonds, security funds or letters of credit, insurance, indemnification, penalties or liquidated damages, or other regulatory costs specifically required herein in addition to the Franchise Fee; (iv) any fee imposed under Title 17 of the United States Code. L. "Grantee" is New Ulm Telecom, Inc., locally known as NU -Telecom, its agents and employees, lawful successors, transferees or assignees. M. "Gross Revenues" means all revenue received directly or indirectly by the Grantee or any affiliates from Cable Communications Services, as defined, or the operation of its System in the City including but not limited to Basic Cable Service fees, Cable Programming Service fees, Pay Television fees, Installation and reconnection fees, upgrade and downgrade fees, Converter rental, Lockout Device fees, advertising revenue or other services. The term Gross Revenues shall not include franchise fees, Access Operating Fees, access capital fund fees or any taxes or fees on services furnished by Grantee imposed directly on any Subscriber or user by any municipality, state, or other governmental unit and collected by Grantee for such governmental unit nor shall include revenues for signals originating in or passing through the franchise area unless Grantee receives revenue for such signal which has not already otherwise been directly or indirectly subject to a franchise fee or similar tax, in which case said revenues will be considered Gross Revenues for the purpose of this franchise. N. "Installation" means the connection of the System from feeder cable to the point of connection, including Standard Installations and custom installations. 464396v2 RJV HU125-6 O. "Lockout Device" means an optional mechanical or electrical accessory to a Subscriber's terminal which inhibits the viewing of a certain program, certain channel, or certain channels provided by way of the Cable Communication System. P. "Pay Television" means the delivery over the System of pay -per -channel or pay - per -program audio-visual signals to Subscribers for a fee or charge, in addition to the charge for Basic Cable Service or Cable Programming Services. Q. "Person" is any person, firm, partnership, association, corporation, company, or other legal entity. R. "Right -of -Way" or "Right -of -Ways" means the area on, below, or above any real property in the Franchise Area in which the City has an interest including, but not limited to any street, road, highway, alley, sidewalk, parkway, park, skyway, or any other place, area, or real property owned by or under the control of the City, including other dedicated Rights -of -Way for travel purposes and utility easements. S. "Right -of -Way Ordinance" means such ordinance adopted by the City creating requirements regarding regulation, management and use of Rights -of -Way, including registration and permitting requirements. T. "Standard Installation" means any residential installation which can be completed using a Drop of one hundred fifty (150) feet or less. U. "Subscriber" means any Person who lawfully receives Cable Television Service. In the case of multiple office buildings or multiple dwelling units, the "Subscriber" means the lessee, tenant or occupant. SECTION 2. GRANT OF AUTHORITY AND GENERAL PROVISIONS 2.1) Franchise Required. It shall be unlawful for any Person to construct, operate or maintain a Cable Communications System in City unless such Person or the Person for whom such action is being taken shall have first obtained and shall currently hold a valid Franchise Ordinance. It shall also be unlawful for any Person to provide Cable Television Service in City unless such Person shall have first obtained and shall currently hold a valid Franchise Ordinance. All Cable Communications Franchises granted by City shall contain the same substantive terms and conditions. 2.2) Grant of Franchise. This Franchise is granted pursuant to the terms and conditions contained herein. 2.3) Grant of Nonexclusive Authority. 464396v2 RJV HU125-6 A. The Grantee shall have the right and privilege to construct, erect, operate, and maintain, in, upon, along, across, above, over and under the Right -of -Ways, alleys, public ways and public places now laid out or dedicated and all extensions thereof, and additions thereto in City, poles, wires, cables, underground conduits, manholes, and other television conductors and fixtures necessary for the maintenance and operation in City of a Cable Communications System as herein defined. The Cable Communications System constructed and maintained by Grantee or its agents shall not interfere with other uses of Right -of -Ways. Grantee shall make use of existing poles and other facilities available to Grantee to the extent it is technically and economically feasible to do so. B. Notwithstanding the above grant to use Right -of -Ways, no Right -of -Way shall be used by Grantee if City, in its sole opinion, determines that such use is inconsistent with the terms, conditions, or provisions by which such Right -of -Way was created or dedicated, or with the present use of the Right -of -Way, and such use is subject to all legal requirements related to the use of such Rights -of -Way, including the terms and conditions of any applicable Right -of -Way Ordinance. C. This Franchise shall be nonexclusive, and City reserves the right to grant a similar use of said Right -of -Ways, alleys, public ways and places, to any Person at any time during the period of this Franchise, provided, however, that any additional Cable Franchise grants shall be under the same substantive terms and conditions as this Franchise. D. Grantee shall have the authority to use City easements, public rights-of-way, Right -of -Ways and other conduits for the distribution of Grantee's System. The City may require all developers of future subdivisions to allow and accommodate the construction of the System as part of any provisions for utilities to serve such subdivisions. 2.4) Franchise Term. This Franchise shall be in effect for a period of ten (10) years from adoption and shall expire on 2025, unless renewed, revoked or terminated sooner as herein provided. 2.5) Previous Franchises. Upon acceptance by Grantee as required by Section 13 herein, this Franchise shall supersede and replace any previous Ordinance or Agreement granting a Franchise to Grantee to own, operate and maintain a Cable Communications System within City. Ordinance No. 00-283 is hereby expressly repealed. 2.6) Compliance with Applicable Laws, Resolutions and Ordinances. The terms of this Franchise shall define the contractual rights and obligations of Grantee with respect to the provision of Cable Service and operation of the System in the City. However, the Grantee shall at all times during the term of this Franchise be subject to all lawful exercise of the police power, local ordinance -making authority, and eminent domain rights of the City. Notwithstanding Minn. Stat. § 237.163, Subd. 6(c), in the event of any conflict between this Franchise and a Right -of -Way Ordinance or other regulation which addresses usage of the Rights -of -Way, the conflicting term of this Franchise shall be superseded by such ordinance or regulation regardless 464396v2 RJV HU125-6 of which requirement was first adopted. This Franchise shall comply with the Minnesota franchise standards contained in Minn. Stat, § 238.01 et. seq. 2.7) Rules of Grantee. The Grantee shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct of its business as shall be reasonably necessary to enable said Grantee to exercise its rights and perform its obligation under this Franchise and to assure uninterrupted service to each and all of its Subscribers, provided that such rules, regulations, terms and conditions shall not be in conflict with provisions hereto, the rules of the FCC, the laws of the State of Minnesota, City, or any other body having lawful jurisdiction thereof. 2.8) Territorial Area Involved. This Franchise is granted for the corporate boundaries of City, as it exists from time to time. In the event of annexation by City, or as development occurs, any new territory shall become part of the area covered, provided, however, that Grantee shall not be required to extend Service beyond its present System boundaries unless there is a minimum of thirty (30) homes per cable mile. Access to cable service shall not be denied to any group of potential residential cable Subscribers because of the income of the residents of the area in which such group resides. Grantee shall be given a reasonable period of time to construct and activate cable plant to service annexed or newly developed areas. 2.9) Written Notice. All notices, reports, or demands required to be given in writing under this Franchise shall be deemed to be given when delivered personally to any officer of Grantee or City's Administrator of this Franchise or forty-eight (48) hours after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to whom notice is being given, as follows: If to City: City Administrator City of Hutchinson Hutchinson City Center 111 Hassan St. SE, Hutchinson, Minnesota 55350 With copy to: City Attorney City of Hutchinson Hutchinson City Center 111 Hassan St. SE, Hutchinson, Minnesota 55350 If to Grantee: NU -Telecom 27 N. Minnesota Street New Ulm, MN 56073 Such addresses may be changed by either party upon notice to the other party given as provided in this Section. 2.10) Drops to Public Buildings. Grantee shall provide Installation of one (1) cable Drop, one (1) cable outlet, and monthly Basic Cable Service without charge to the following institutions 464396v2 RJV HU125-6 and such other public or educational institutions located within one hundred fifty (150) feet of the System which City may designate: Hutchinson City Hall Technical College Public Schools Hospital (lounge) As long as Grantee offers cable modem service in the City, Grantee shall make such service available for subscription by public institutions. In addition, Grantee shall provide, without charge, upstream capability (excluding end user equipment) ensuring that "live" programming may be originated from City Hall. No redistribution of the free Basic Cable Service provided pursuant to this Section shall be allowed. Additional Drops and/or outlets in any of the above locations will be provided by Grantee at the cost of Grantee's time and material. Alternatively, at the institution's request, said institution may add outlets at its own expense, as long as such installation meets Grantee's standards and provided that any fees for Cable Communications Services are paid. Nothing herein shall be construed as requiring Grantee to extend the System to serve additional institutions as may be designated by City. Grantee shall have one (1) year from the date of City Council designation of additional institution(s) to complete construction of the Drop and outlet. SECTION 3. CONSTRUCTION STANDARDS 3.1) Construction Codes and Permits. A. Grantee shall obtain all necessary permits from City before commencing any construction, upgrade or extension of the System, including the opening or disturbance of any Right -of -Way or private or public property within City. Grantee shall strictly adhere to all state and local laws and building and zoning codes currently or hereafter applicable to construction, operation or maintenance of the System in City and give due consideration at all times to the aesthetics of the property. B. The City shall have the right to inspect all construction or installation work performed pursuant to the provisions of the Franchise and to make such tests at its own expense as it shall find necessary to ensure compliance with the terms of the Franchise and applicable provisions of local, state and federal law. 3.2) Repair of Right -of -Ways and Property. Any and all Right -of -Ways or public property or private property, which are disturbed or damaged during the construction, repair, replacement, relocation, operation, maintenance or reconstruction of the System shall be promptly and fully restored by Grantee, at its expense, to a condition as good as that prevailing prior to Grantee's work, as approved by City in the case of Right -of -Ways and other public property. Restoration 464396v2 RJV HU125-6 shall be completed within no longer than 30 days. If, after notice and the opportunity to cure, Grantee shall fail to promptly perform the restoration required herein, City shall have the right to put the Right -of -Ways, public, or private property back into good condition at Grantee's expense. 3.3) Conditions on Right -of -Way Use. A. Nothing in this Franchise shall be construed to prevent City from constructing, maintaining, repairing or relocating sewers, water mains or other public utilities; grading, paving, maintaining, repairing, relocating and/or altering any Right -of -Way; or constructing, maintaining, relocating, or repairing any sidewalk or other public work or improvement. B. All System transmission and distribution structures, lines and equipment erected by the Grantee within City shall be located so as not to obstruct or interfere with the proper use of Right -of -Ways, alleys and other public ways and places, and to cause minimum interference with the rights of property owners who abut any of the said Right - of -Ways, alleys and other public ways and places, and not to interfere with existing public utility installations. The Grantee shall furnish to and file with City Administrator the maps, plats, and permanent records of the location and character of all facilities constructed, including underground facilities, and Grantee shall file with City updates of such maps, plats and permanent records annually if changes have been made in the System. C. If at any time during the period of this Franchise City shall elect to alter, or change the grade or location of any Right -of -Way, alley or other public way, the Grantee shall, at its own expense, upon reasonable notice by City, remove and relocate its poles, wires, cables, conduits, manholes and other fixtures of the System, and in each instance comply with the standards and specifications of City. If City reimburses other occupants of the Right -of -Way, Grantee shall be likewise reimbursed. D. The Grantee shall not place poles, conduits, or other fixtures of System above or below ground where the same will interfere with any gas, electric, telephone, water or other utility fixtures and all such poles, conduits, or other fixtures placed in any Right -of - Way shall be so placed as to comply with all requirements of City. E. The Grantee shall, on request of any Person. holding a moving permit issued by City, temporarily move its wires or fixtures to permit the moving of buildings with the expense of such temporary removal to be paid by the Person requesting the same, and the Grantee shall be given not less than ten (10) days advance notice to arrange for such temporary changes. F. The Grantee shall have the authority to trim any trees upon and overhanging the Right -of -Ways, alleys, sidewalks, or public easements of City so as to prevent the branches of such trees from coming in contact with the wires and cables of the Grantee. 464396v2 RJV HU125-6 If said trees are not located in the Right -of -Way, Grantee must notify the owner of the property prior to trimming. G. Except in the case of an emergency, Grantee shall give reasonable prior notice to any private property owners who will be directly affected or impacted by Grantee's work in the Rights -of -Way. H. Nothing contained in this Franchise shall relieve any Person from liability arising out of the failure to exercise reasonable care to avoid injuring Grantee's facilities. 3.4) Undergrounding of Cable. A. In all areas of City where all other utility lines are placed underground, Grantee shall construct and install its cables, wires and other facilities underground. Subject to the Right -of -Way Ordinance and applicable zoning and other land use regulations, amplifier boxes and pedestal mounted terminal boxes may be placed above ground if existing technology reasonably requires, but shall be of such size and design and shall be so located as not to be unsightly or unsafe. B. In any area of City where there are certain cables, wires and other like facilities of a public utility or public utility district underground and at least one operable cable, wire or like facility of a public utility or public utility district suspended above the ground from poles, Grantee may construct and install its cables, wires and other facilities from the same pole with the consent of the owner of the pole. C. Grantee shall be granted access to any easements granted to a public utility, municipal utility or utility district in any areas annexed by City or new developments. D. Grantee shall bury all Drops in a reasonable time period, not to exceed fifteen (15) business days, subject to weather conditions and the completion of required utility locates. In the event the ground is frozen or flooded, Grantee shall be permitted to delay burial until the ground is suitable for burial which, in the case of frozen ground, shall not be later than June 30th. 3.5) Erection, Removal and Joint Use of Poles. No poles, conduits, or other wire -holding structures shall be erected or installed by the Grantee without prior approval of City with regard to location, height, type and other pertinent aspects. Such facilities shall be subject to the Right - of -Way Ordinance and applicable zoning and other land use regulations. 3.6) Safety Requirements. A. The Grantee shall at all times employ ordinary and reasonable care and shall install and maintain in use nothing less than commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries, or nuisances to the public. 464396v2 RJV HU125-6 B. The Grantee shall install and maintain its System wires, cables, fixtures and other equipment in accordance with the requirements of the National Electric Safety Code and all FCC, state and local regulations, and in such manner that they will not interfere with any installations of City or of any public utility serving City. C. All System structures and all System lines, equipment and connections in, over, under and upon the Right -of -Ways, sidewalks, alleys, and public ways and places of City, wherever situated or located, shall at all times be kept and maintained in good condition, order, and repair so that the same shall not menace or endanger the life or property of any Person. SECTION 4. DESIGN PROVISIONS 4.1) Minimum Channel Capacity. A. Grantee shall maintain, at minimum, a 750 MHz fiber/coaxial hybrid System which delivers a minimum of seventy eight (78) video programmed channels. B. All programming decisions remain the sole discretion of Grantee provided that Grantee notifies City and Subscribers in writing thirty (30) days prior to any channel additions, deletions, or realignments, and further subject to Grantee's signal carriage obligations pursuant to 47 U.S.C. §§ 531-536, and subject to City's rights pursuant to 47 U.S.C. § 545. Grantee shall conduct programming surveys from time to time to obtain input on programming decisions from Subscribers. 4.2) Operation and Maintenance of System. The Grantee shall render effective service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Such interruption, to the extent feasible, shall be preceded by notice in accordance with Section 2.9 herein and shall occur during periods of minimum use of the System. 4.3) Technical Standards. The technical standards used in the operation of the System shall comply, at minimum, with the technical standards promulgated by the FCC relating to cable communications systems pursuant to the Federal Communications Commission's rules and regulations and found in Title 47, Section 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. 4.4) Special Testing. City may require special testing of a location or locations within the System if there is a particular matter of controversy or unresolved complaints pertaining to such location(s). Demand for such special tests may be made on the basis of complaints received or other evidence indicating an unresolved controversy or noncompliance. Such tests shall be limited to the particular matter in controversy or unresolved complaints. The City shall endeavor to so arrange its request for such special testing so as to minimize hardship or inconvenience to Grantee or to the Subscribers caused by such testing. Before ordering such tests, Grantee shall be afforded thirty (30) days to correct problems or complaints upon which tests were ordered. 464396v2 RJV HU125-6 The City shall meet with Grantee prior to requiring special tests to discuss the need for such and, if possible, visually inspect those locations which are the focus of concern. If, after such meetings and inspections, City wishes to commence special tests and the thirty (30) days have elapsed without correction of the matter in controversy or unresolved complaints, the tests shall be conducted by a qualified engineer selected by City. In the event that special testing is required by City to determine the source of technical difficulties, the cost of said testing shall be borne by the Grantee if the testing reveals the source of the technical difficulty to be within Grantee's reasonable control. If the testing reveals the difficulties to be caused by factors which are beyond Grantee's reasonable control then the cost of said test shall be borne by City. 4.5) FCC Reports. The results of tests required to be filed by Grantee with the FCC shall also be copied to City. 4.6) Nonvoice Return Capability. Grantee is required to use cable having the technical capacity for nonvoice return communications. 4.7) Lockout Device. Upon the request of a Subscriber, Grantee shall provide by sale or lease a Lockout Device. SECTION 5. SERVICES PROVISIONS 5.1) Regulation of Service Rates. A. The City may regulate rates for the provision of cable service, equipment, or any other communications service provided over the System to the extent allowed under federal or state law(s). In exercising its jurisdiction to regulate any such rates, City will adhere to regulations adopted by the Federal Communications Commission at 47 C.F. R., 76.900 et seq. as they may be amended from time to time. B. Upon request, a list of Grantee's current Subscriber rates and charges shall be provided to the City. Grantee shall give City and Subscribers written notice of any change in a rate or charge no less than thirty (30) days prior to the effective date of the change. 5.2) Sales Procedures. Grantee shall not exercise deceptive sales procedures when marketing its Cable Television Services within City. Grantee shall have the right to market its cable services door-to-door during reasonable hours consistent with local ordinances and regulation. 5.3) Subscriber Inquiry and Complaint Procedures. A. Grantee shall have a publicly listed toll-free telephone number and be operated so as to receive Subscriber complaints and requests on a twenty-four (24) hour -a -day, seven (7) days -a -week basis. 464396v2 RJV HU125-6 B. Grantee shall maintain adequate numbers of telephone lines and personnel to respond in a timely manner to schedule service calls and answer Subscriber complaints or inquiries in a manner consistent with regulations adopted by the Federal Communications Commission at 46 C.F.R. § 76.309 which are incorporated herein by reference. C. Subscriber requests for repairs shall be performed, to the extent possible, within twenty-four (24) hours of the request unless conditions beyond the control of Grantee prevent such performance. D. Subject to the privacy provisions of 47 U.S.C. § 521 et seq., City and Grantee shall prepare and maintain written records of all complaints made to them and the resolution of such complaints, including the date of such resolution. Such written records shall be on file at the office of Grantee. Grantee shall provide City with a written summary of such complaints and their resolution on a bi-annual basis. 5.4) Subscriber Contracts. Grantee shall submit any Subscriber contract utilized to City. If no written contract exists, Grantee shall file with the City Clerk a document completely and concisely stating the terms of the residential Subscriber contract offered to customers, specifically including the length of the Subscriber contract. The length and terms of any Subscriber contract shall be available for public inspection during normal business hours. 5.5) Refund Policy. In the event a Subscriber established or terminates service and receives less than a full month's service, Grantee shall prorate the monthly rate on the basis of the number of days in the period for which service was rendered to the number of days in the billing. 5.6) Office Policy. In the event the existing Hutchinson business office is closed by Grantee, Grantee agrees to maintain a local drop box for receiving Subscriber payments and Grantee agrees to either maintain or arrange for a location where equipment can be dropped off or exchanged as is necessary or, in the alternative, establish a system for having the equipment picked up at the Subscriber residence. In all events, Grantee agrees to maintain a trained cable technician assigned to Hutchinson. SECTION 6. PUBLIC ACCESS PROVISIONS 6.1) Public, Educational and Government Access. A. City or its designee is hereby designated to operate, administer, promote, and manage access (public, education, and government programming) (hereinafter "PEG access") to the cable system established pursuant to this Section 6. Grantee shall have no responsibility whatsoever for PEG access except as expressly stated in this Section 6. B. Grantee shall dedicate to the City or its designee three (3) channels for PEG access use. All Subscribers who receive all or any part of the total services offered on the System shall be eligible to receive all of said three (3) access channels at no additional 464396v2 RJV HU125-6 charge. Two (2) channels shall be and remain activated upon the effective date of this Franchise, with remaining additional channel to be activated upon City request. However, nothing herein shall be construed to diminish the City's rights pursuant to Minn. Stat. § 238.084, incorporated herein by reference. City shall provide ninety (90) days' prior written notice to Grantee of City's intent to activate access channels and shall allow Grantee a reasonable time to vacate said channel(s) and/or rearrange program services to accommodate City's request. C. The VHF spectrum must be used for the designated access channels required in the section. The two (2) initially activated channels shall remain located on channels -7 and 4-9_ and may not be relocated or renumbered without the City's written consent, which shall not be unreasonably withheld. Grantee shall designate the channel location of the third access channel if activation is requested by the City. Grantee and City shall mutually agree on reasonable terms and conditions for providing adequate space in Grantee's headend facility to accommodate playback equipment for cablecasting PEG access programming; provided, however, that Grantee shall not be obligated to expand its headend to accomplish this objective. 6.2) Access Rules. A. City shall implement rules for use of any specially designated access channels. The initial access rules and any amendments thereto shall be maintained on file with City and available for public inspection during normal business hours. B. Prior to the cablecast of any program on any PEG access channel established herein, City shall require any Person who requests access (public, education, and government) to the System to provide written certification in a form and substance acceptable to Grantee and City which releases, indemnifies, and holds harmless City, Grantee and their respective employees, offices, agents, and assigns from any liability, cost, damages and expenses, including reasonable expenses for legal fees, arising or connected in any way with said program. 6.3) Capital Grant. Grantee shall provide to City a capital equipment grant in the amount of Five Thousand Dollars ($5,000.00) (hereinafter "Capital Grant" or "Grant") solely for the acquisition of PEG equipment. Said Grant shall be provided to City on or before December 31, 2015. Grantee shall have no obligation to purchase or provide access equipment beyond that stated herein, or to maintain, repair or replace any access equipment. Grantee shall also collect on behalf of City a per Subscriber fee of Eighty -Five Cents (.85) per month solely to fund access -related expenditures (hereinafter "Access Operating Fee"). Actual receipts shall be payable on a monthly basis to City. City and Grantee may agree to increase the Access Operating Fee on an annual basis. 6.5) Periodic Evaluation. Upon written request from City to Grantee, Grantee and City shall meet to evaluate Section 6.3. above. Both parties agree to discuss any proposal for modification presented by the other party. Nothing herein shall presume or require consent to any such 464396v2 RJV HU125-6 proposed modification. Modifications may only occur by mutual written consent of both parties. The notice and meeting contemplated herein shall be required to occur no more than every three (3) years after adoption of this Ordinance, however, nothing, shall prevent mutually agreed upon negotiations between both parties at any time. SECTION 7. OPERATION AND ADMINISTRATION PROVISIONS 7.1) Franchise Fee. A. Grantee shall pay to City a Franchise Fee in an annual amount equal to five percent (5%) of its annual Gross Revenues. B. Payments due City under this provision shall be payable quarterly. The payment shall be made within ninety (90) days of the end of each of Grantee's fiscal quarters together with a brief report showing the basis for the computation. C. All amounts paid shall be subject to audit and recomputation by City and acceptance of any payment shall not be construed as an accord that the amount paid is in fact the correct amount. 7.2) Access to Records. The City shall have the right to inspect, upon reasonable notice, at any time during normal business hours, those records maintained by Grantee which relate to System operations and to Gross Revenues, subject to the privacy provisions of 47 U.S.C. § 521 e"se . ("Cable Act"). 7.3) Reports to be Filed with City. Grantee shall prepare and furnish to City, at the times and in the form prescribed, such reports with respect to the operations, affairs, transactions or property, as they relate to the System, which Grantee and City may agree upon. SECTION 8. GENERAL FINANCIAL AND INSURANCE PROVISIONS 8.1) Performance Bond. A. At the time the Franchise becomes effective and at all times thereafter, until the Grantee has liquidated all of its obligations with City, the Grantee shall furnish a bond to City in the amount of Ten Thousand Dollars ($10,000) in a form and with such sureties as reasonably acceptable to City. This bond will be conditioned upon the faithful performance of the Grantee according to the terms of the Franchise and upon the further condition that in the event the Grantee shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City as a result, including the full amount of any compensation, indemnification or cost of removal or 464396v2 RJV HU125-6 abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by the Grantee of claims, liens and taxes due City which arise by reason of the construction, operation, or maintenance of the System. The rights reserved by City with respect to the bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of the bond. B. If at any time Grantee undertakes additional construction of the System in City, by way of a line extension, rebuild, upgrade or otherwise, with a projected cost in excess of Seventy Thousand and no/100 Dollars ($70,000.00), Grantee shall provide a bond to City in the amount equivalent to fifteen percent (15%) of the projected additional construction cost and shall maintain such bond during the term of said additional construction. Upon completion of said additional construction, Grantee shall provide written notice to City. Within thirty (30) days of receipt of notice of completion of said additional construction, City shall give written notice to Grantee indicating whether City agrees the construction is complete or specifying those items of construction which City determines are not complete. At such time as City and Grantee mutually agree that said additional construction of the System is complete, Grantee shall provide to City a bond in the amount equal to the bond existing immediately before the commencement of said additional construction. Nothing herein shall be construed to require Grantee to maintain more than one (1) bond with City. C. The time for Grantee to correct any violation or liability, shall be extended by City if the necessary action to correct such violation or liability is of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) day period and thereafter uses reasonable diligence to correct the violation or liability. D. In the event this Franchise is canceled by reason of default of Grantee or revoked, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City pursuant to said default or revocation. Grantee, however, shall be entitled to the return of such performance bond, or portion thereof, as remains at the expiration of the term of the Franchise. E. The rights reserved to City with respect to the performance bond are in addition to all other rights of City whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to the performance bond shall affect any other right City may have. 8.2) Letter of Credit. A. At the time of acceptance of this Franchise, Grantee shall deliver to City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to City, from a National or State bank approved by City, in the amount of Two Thousand and 00/100 ($2,000.00) Dollars. 464396v2 RJV HU125-6 B. The Letter of Credit shall provide that funds will be paid to City, upon written demand of City, and in an amount solely determined by City in payment for penalties charged pursuant to this section, in payment for any monies owed by Grantee pursuant to its obligations under this Franchise, or in payment for any damage incurred as a result of any acts or omissions by Grantee pursuant to this Franchise. C. In addition to recovery of any monies owed by Grantee to City or damages to City as a result of any acts or omissions by Grantee pursuant to the Franchise, City in its sole discretion may charge to and collect from the Letter of Credit the following penalties: 1. For failure to maintain a system as provided herein the penalty shall be One Hundred Dollars ($100) per day for each day, or part thereof, such failure occurs or continues. 2. For failure to provide data, documents, reports or information or to cooperate with City during an application process or system review or as otherwise provided herein, the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. 3. For failure to comply with any of the provision of this Franchise for which a penalty is not otherwise specifically provided pursuant to this paragraph C, the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. 4. For failure by Grantee to modify the System or to provide additional services within 180 days after being required by binding arbitration the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. 5. Forty-five (45) days following notice from City of a failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. 6. For failure to provide the services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access channels and the making available for use of the equipment and other facilities, the penalty shall be Fifty Dollars ($50) per day for each day, or part thereof, such failure occurs or continues. 7. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed. D. Exclusive of the contractual penalties set out above in this section, a violation by Grantee of any provision of this Franchise is a misdemeanor. 464396v2 RJV HU125-6 E. Whenever City finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such reasonable time which is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise in the sole opinion of City, City may draw from the Letter of Credit all penalties and other monies due City from the date of the local receipt of notice. F. Whenever a penalty has been assessed, Grantee may, within thirty (30) days of local receipt of notice, notify City that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Grantee to City shall specify with particularity the matters disputed by Grantee. 1. City shall hear Grantee's dispute at the next regularly scheduled Council meeting. City shall supplement the Council decision with written findings of fact. 2. Upon determination by City that no violation has taken place, City shall refund to Grantee, with interest and costs to Grantee of drawing on the Letter of Credit, all monies drawn from the Letter of Credit by reason of the alleged violation. G. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to fifteen (15) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than fifteen (15) months after the expiration of this Franchise. The renewed or replaced Letter of Credit shall be on the same form and with a bank authorized herein and for the full amount stated in paragraph A of this section. H. If City draws upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace the same within fifteen (15) days and shall deliver to City a like replacement Letter of Credit for the full amount stated in paragraph A of this section as a substitution of the previous Letter of Credit. I. If any Letter of Credit is not so replaced, City may draw on said Letter of Credit for the whole amount thereof and hold the proceeds, without interest, and use the proceeds to pay costs incurred by City in performing and paying for any or all of the obligations, duties and responsibilities of Grantee under this Franchise that are not performed or paid by Grantee pursuant hereof, including attorneys' fees incurred by the City in so performing and paying. The failure to replace any Letter of Credit may also, at the option of the City, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit by City, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default. 464396v2 RJV HU125-6 J. The collection by City of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to City, nor shall any act, or failure to act, by City pursuant to the Letter of Credit, be deemed a waiver of any right of City pursuant to this Franchise or otherwise. 8.3) Indemnification of City. A. City, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or death of any Person, arising out of or in connection with the construction, operation, maintenance, repair or removal of, or other action or event with respect to the System. B. Grantee shall indemnify, defend and hold harmless City, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the exercise of the franchise, except claims because of City's own programming. C. Nothing in this Franchise relieves a Person from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regarding, or changing the line of a Right -of -Way or public place or with the construction or reconstruction of a sewer or water system. D. In order for City to assert its rights to be indemnified, defended, and held harmless, City must with respect to each claim: Promptly notify Grantee in writing of any claim or legal proceeding which gives rise to such right; 2. Afford Grantee the opportunity to participate in and fully control any compromise, settlement or other resolution or disposition of any claim or proceeding: and Fully cooperate with reasonable requests of Grantee, at Grantee's expense. in its participation in, and control, compromise, settlement or resolution or other disposition of such claim or proceeding subject to paragraph two (2) above. 8.4) Insurance. A. As a part of the indemnification provided in Section 8.3, but without limiting the foregoing, Grantee shall file with its acceptance of this Franchise, and at all times thereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including contractual liability coverage, in protection of City in its capacity as such, its officers, elected officials, boards, commissions, agents and 464396v2 RJV HU125-6 employees. The policy or policies shall name as additional insured City, and their capacity as such, their officers, agents and employees. The policies of insurance shall be in the sum of not less than Five Hundred Thousand Dollars ($500,000) for personal injury or death of any one Person, and One Million Five Hundred Thousand -Dollars ($1,500,000) for personal injury or death of two or more Persons in any one occurrence, Five Hundred Thousand Dollars ($500,000) for property damage to any one person and One Million Five Hundred Thousand Dollars ($1,500,000) for property damage resulting from any one act or occurrence. B. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of the Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the policy or fail to renew the policy, whether for nonpayment of premium, or otherwise, and whether at the request of Grantee or for other reasons, except after thirty (30) days' advance written notice have been provided to City. SECTION 9. SALE, ABANDONMENT, TRANSFER AND REVOCATION OF FRANCHISE 9.1) City's Right to Revoke. A. In addition to all other rights which City has pursuant to law or equity, City reserves the right to revoke, terminate or cancel this Franchise, and all rights and privileges pertaining thereto, if after the hearing required by 9.2B herein, it is determined that: 1. Grantee has violated any material provision of this Franchise; or 2. Grantee has attempted to evade any of the material provisions of the Franchise; or 3. Grantee has practiced fraud or deceit upon City or Subscriber. B. City may revoke this Franchise without the hearing required by 9.2B herein if Grantee is adjudged a bankrupt. 9.2) Procedures for Revocation. A. City shall provide Grantee with written notice of a cause for revocation and the intent to revoke and shall allow Grantee sixty (60) days subsequent to receipt of the notice in which to correct the violation or to provide adequate assurance of performance in compliance with the Franchise. Together with the notice required herein, City shall provide Grantee with written findings of fact which are the basis of the revocation. 464396v2 RJV HU125-6 B. Grantee shall be provided the right to a public hearing affording due process before the City Council prior to revocation, which public hearing shall follow the sixty (60) day notice provided in paragraph (A) above. City shall provide Grantee with written notice of its decision together with written findings of fact supplementing said decision. C. After the public hearing and upon written determination by City to revoke the Franchise, Grantee may appeal said decision with an appropriate state or federal court or agency. D. During the appeal period, the Franchise shall remain in full force and effect unless the term thereof sooner expires. E. Upon satisfactory correction by Grantee of the violation upon which said notice was given as determined in the City's sole discretion, the initial notice shall become void. 9.3) Abandonment of Service. Grantee may not abandon the System or any portion thereof without having first given three (3) months' written notice to City. Grantee may not abandon the System or any portion thereof without compensating City for damages resulting from the abandonment. 9.4) Removal After Termination or Forfeiture. A. In the event of termination or forfeiture of the Franchise, City shall have the right to require Grantee to remove all or any portion of the System from all Right -of -Ways and public property within City. B. If Grantee has failed to commence removal of System, or such part thereof as was designated by City, within one hundred twenty (120) days after written notice of City's demand for removal is given, or if Grantee has failed to complete such removal within twelve (12) months after written notice of City's demand for removal is given, City shall have the right to declare all right, title, and interest to the System to be in City with all rights of ownership including, but not limited to, the right to operate the System or transfer the System to another for operation by it pursuant to the provisions of 47 U.S.C. § 547. 9.5) Sale or Transfer of Franchise. A. No sale, transfer, or "fundamental corporate change", as defined in Minn. Stat. § 238.083, of this Franchise shall take place until the parties to the sale, transfer, or fundamental corporate change files a written request with City for its approval, provided, however, that said approval shall not be required where Grantee grants a security interest in its Franchise and assets to secure an indebtedness. B. City shall have thirty (30) days from the time of the request to reply in writing and indicate approval of the request or its determination that a public hearing is necessary due to potential adverse affect on Grantee's Subscribers resulting from the sale or transfer. 464396v2 RJV HU125-6 Such approval or determination shall be expressed by Council Resolution within thirty (30) days of receipt of said request, or the request shall be deemed approved as a matter of law. C. If a public hearing is deemed necessary pursuant to (B.) above, such hearing shall be commenced within thirty (30) days of such determination and notice of any such hearing shall be given in accordance with local law or fourteen (14) days prior to the hearing by publishing notice thereof once in a newspaper of general circulation in City. The notice shall contain the date, time and place of the hearing and shall briefly state the substance of the action to be considered by City. D. Within thirty (30) days after the closing of the public hearing, City shall approve or deny in writing the sale or transfer request. City shall set forth in writing with particularity its reason(s) for denying approval. City shall not unreasonably withhold its approval. E. The parties to the sale or transfer of the Franchise only, without the inclusion of the System in which substantial construction has commenced, shall establish that the sale or transfer of only the Franchise will be in the public interest. F. Any sale or transfer of stock in Grantee so as to create a new controlling interest in the System shall be subject to the requirements of this Section 9.05. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. G. In no event shall a transfer or assignment of ownership of control be approved without the transferee becoming a signatory to this Franchise and assuming all rights and obligations thereunder, and assuming all other rights and obligations of the transferor to the City. H. In the event of any proposed sale or assignment pursuant to paragraph (A.) of this Section, City shall have the right of first refusal of any bona fide offer to purchase the System. Bona fide offer, as used in this Section, means an offer received by the Grantee which it intends to accept subject to City's rights under this Section. This written offer must be conveyed to City along with the Grantee's written acceptance of the offer contingent upon the rights of City provided for in this Section. City shall be deemed to have waived its rights under this Section in the following circumstances: 1. If it does not indicate to Grantee in writing, within 30 days of notice of a proposed sale or assignment, its intention to exercise its right of purchase; or 2. It approves the assignment or sale of the Franchise as provided within this Section. 464396v2 RJV HU125-6 SECTION 10. PROTECTION OF INDIVIDUAL RIGHTS 10.1) Discriminatory Practices Prohibited. Grantee shall not deny service, deny access, or otherwise discriminate against Subscribers or general citizens on the basis of race, color, religion, national origin, sex or age. Grantee shall comply at all times with all other applicable federal, state, and city laws, and all executive and administrative orders relating to nondiscrimination. 10.2) Subscriber Privacy. A. No signals including signals of a Class IV Channel may be transmitted from a Subscriber terminal for purposes of monitoring individual viewing patterns or practices without the express written permission of the Subscriber. The request for such permission shall be contained in a separate document with a prominent statement that the Subscriber is authorizing the permission in full knowledge of its provisions. Such written permission shall be for a limited period of time not to exceed one (1) year which shall be renewed at the option of the Subscriber. No penalty shall be invoked for a Subscriber's failure to provide or renew such authorization. The authorization shall be revocable at any time by the Subscriber without penalty of any kind whatsoever. Such permission shall be required for each type or classification of Class IV Channel activity planned for the purpose of monitoring individual viewing patterns or practices. B. No information or data obtained by monitoring transmission of a signal from a Subscriber terminal, or any other means, including but not limited to lists of the names and addresses of such Subscribers or any lists that identify the viewing habits of Subscribers shall be sold or otherwise made available to any party other than to Grantee and its employees for internal business use, and also to the Subscriber subject of that information, unless Grantee has received specific written authorization from the Subscriber to make such data available. C. Written permission from the Subscriber shall not be required for the conducting of System wide or individually addressed electronic sweeps for the purpose of verifying System integrity or monitoring for the purpose of billing. Confidentiality of such information shall be subject to the provision set forth in paragraph (B.) of this Section. SECTION 11. UNAUTHORIZED CONNECTIONS AND MODIFICATIONS 11.1) Unauthorized Connections or Modifications Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or governmental body or agency, without the express consent of the Grantee, to make or possess, or assist anybody in making or possessing, any 464396v2 RJV HU125-6 connection, extension, or division, whether physically, acoustically, inductively, electronically or otherwise, with or to any segment of the System. 11.2) Removal or Destruction Prohibited. It shall be unlawful for any firm, Person, group, company, corporation, or government body or agency to willfully interfere, tamper, remove, obstruct, or damage, or assist thereof, any part or segment of the System for any purpose whatsoever. 11.3) Penalty. Any firm, Person, group, company, corporation or government body or agency found guilty of violating this section may be fined not less than Twenty Dollars ($20.00) and the costs of the action nor more than Five Hundred Dollars ($500.00) and the costs of the action for each and every subsequent offense. Each continuing day of the violation shall be considered a separate occurrence. SECTION 12. MISCELLANEOUS PROVISIONS 12.1) Franchise Renewal. Any renewal of this Franchise shall be done in accordance with applicable federal, state and local laws and regulations. 12.2) Work Performed by Others. All provisions of this Franchise shall apply to any subcontractor or others performing any work or services pursuant to the provisions of this Franchise. Grantee shall provide notice to City of the name(s) and address(es) of any entity, other than Grantee, which performs substantial services pursuant to this Franchise. 12.3) Amendment of Franchise Ordinance. Grantee and City may agree, from time to time, to amend this Franchise. Such written amendments may be made subsequent to a review session pursuant to Section 12.7 or at any other time if City and Grantee agree that such an amendment will be in the public interest or if such an amendment is required due to changes in federal, state or local laws. City shall act pursuant to local law pertaining to the ordinance amendment process. 12.4) Compliance with Federal State and Local Laws. A. If any federal or state law or regulation shall require or permit City or Grantee to perform any service or act or shall prohibit City or Grantee from performing any service or act which may be in conflict with the terms of this Franchise, then as soon as possible following knowledge thereof, either party shall notify the other of the point in conflict believed to exist between such law or regulation. Grantee and City shall conform to state laws and rules regarding cable communications not later than one year after they become effective, unless otherwise stated, and to conform to federal laws and regulations regarding cable as they become effective. B. If any term, condition or provision of this Franchise or the application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, 464396v2 RJV HU125-6 the remainder hereof and the application of such term, condition or provision to Persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and this Franchise and all the terms, provisions and conditions hereof shall, in all other respects, continue to be effective and complied with provided the loss of the invalid or unenforceable clause does not substantially alter the agreement between the parties. In the event such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed so that the provision which had been held invalid or modified is no longer in conflict with the law, rules and regulations then in effect, said provision shall thereupon return to full force and effect and shall thereafter be binding on Grantee and City. 12.5) Nonenforcement by City. Grantee shall not be relieved of its obligations to comply with any of the provisions of this Franchise by reason of any failure or delay of City to enforce prompt compliance. Any waiver by City of a breach or violation of any provision of this Franchise shall not operate as or be construed to be a waiver of any subsequent breach or violation. 12.6) Administration of Franchise. The City Administrator or other City designee shall have continuing regulatory jurisdiction and supervision over the System and the Grantee's operation under the Franchise. The City may issue such reasonable rules and regulations concerning the construction, operation and maintenance of the System as are consistent with the provisions of the Franchise and law. 12.7) Periodic Evaluation. The field of cable communications is rapidly changing and may see many regulatory, technical, financial, marketing and legal changes during the term of this Franchise. Therefore, in order to provide for a maximum degree of flexibility in this Franchise, and to help achieve a continued advanced and modern System, the following evaluation provisions shall apply: A. The City may require evaluation sessions at any time during the term of this Franchise, upon thirty days' written notice to Grantee, provided, however, there shall not be more than one review session during each four (4) year period commencing on the Effective Date of this Franchise. B. All evaluation sessions shall be open to the public and notice of sessions published in the same way as a legal notice. Grantee shall notify its Subscribers of all evaluation sessions by announcement on at least one (1) Basic Service channel of the System between the hours of 7:00 p.m. and 9:00 p. m.. for five (5) consecutive days preceding each session. C. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics City and Grantee deem relevant. 464396v2 RJV HU125-6 D. As a result of a periodic review or evaluation session, City and Grantee shall develop such changes and modifications to the terms and conditions of the Franchise, as are mutually agreed upon and which are both economically and technically feasible. 12.8) Citizens Advisory Board. The City may appoint a citizen advisory body to monitor the performance of the Grantee pursuant to the Franchise and advise City of same. As a result of any periodic evaluation session as promulgated in Section 12.7, the advisory body may submit a report to City and Grantee assessing the Grantee's performance according to the terms of the Franchise and make recommendations to City regarding the System's operations. 12.9) Rights Cumulative. All rights and remedies given to City by this Franchise shall be in addition to and cumulative with any and all other rights and remedies, existing or implied, now or hereafter available to City, at law or in equity, and such rights and remedies shall not be exclusive, but each and every right and remedy specifically given by this Franchise or otherwise existing or given may be exercised from time to time and as often. and in such order as may be deemed expedient by City and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. 12.10) Grantee, Acknowledgment of Validity of Franchise. Grantee acknowledges that it has had an opportunity to review the terms and conditions of this Franchise and that under current law Grantee believes that said terms and conditions are not unreasonable or arbitrary, and that Grantee believes City has the power to make the terms and conditions contained in this Franchise. SECTION 13. PUBLICATION EFFECTIVE DATE; ACCEPTANCE AND EXHIBITS 13.1) Publication, Effective Date. This Franchise shall be published in accordance with applicable Minnesota law. The effective date of this Franchise shall be the date of acceptance by Grantee in accordance with the provisions of Section 13.2. 13.2) Acceptance. A. Grantee shall accept this Franchise within sixty (60) days of its enactment by the City Council, unless the time for acceptance is extended by City. Such acceptance by the Grantee shall be deemed the grant of this Franchise for all purposes. In the event acceptance does not take place, this Franchise and any and all rights previously granted to Grantee shall be null and void. B. Upon acceptance of this Franchise, Grantee shall be bound by all the terms and conditions contained herein. C. Grantee shall accept this Franchise in the following manner: 464396v2 RJV HU125-6 (1) This Franchise will be properly executed and acknowledged by Grantee and delivered to City. (2) Grantee shall have continuing responsibility for this Franchise, and if Grantee be a subsidiary or wholly-owned corporate entity of a parent corporation, performance of this Franchise shall be secured by a written guarantee of the parent corporation in a form and substance acceptable to City, which shall be delivered with the executed Franchise. (3) With its acceptance, Grantee shall also deliver any grant payments, performance bond and insurance certificates required herein that have not previously been delivered. Passed and adopted this day of , 2015. ATTEST: CITY OF HUTCHINSON IM Its: City Administrator Its: Mayor ACCEPTED: This Franchise is accepted and we agree to be bound by its terms and conditions. Date: 464396v2 RJV HU125-6 NEW ULM TELECOM, INC. By: Its: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution to approve HRA Administration of Available Housing TIF District 8 fur6 Department: HRA LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Jean Ward Agenda Item Type: Presenter: Jean Ward Reviewed by Staff F1 New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Request to approve Resolution Authorizing HRA Administration of Available Funds from Housing TIF District 8 The Hutchinson HRA has administered many state, federal and local housing funds, including numerous SCDP housing programs within the City of Hutchinson. This Resolution will authorize the HRA to develop, implement, and administer housing programs and projects using the balance of available TIF funds as explained at the Public Hearing. With approval of this Resolution, the HRA Board has approved immediately proceeding to develop an owner occupied rehab program using the available balance of TIF funds for low and moderate income residents of Hutchinson. Other housing programs/projects may be implemented in the future, based on housing needs and available funding as referenced in Tax Increment Financing Plan for Tax Increment Financing District 8. BOARD ACTION REQUESTED: Approve Resolution Authorizing HRA Administration of Available Funds from Housing TIF District 8 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. 14457 Resolution to Authorize HRA Administration of Available Funds from Housing TIF District 8 Project/Programs Whereas, The City of Hutchinson has available funds in Housing District 8; and, Whereas, There are continued housing needs for low and moderate income residents of Hutchinson; and, Whereas, Available TIF funds from Housing District 8 will help to meet some of the future housing needs for low and moderate income residents of Hutchinson; and, Whereas, The Hutchinson Housing & Redevelopment Authority already administers housing programs for low and moderate income residents on behalf of the City of Hutchinson, Therefore, Be it Resolved That the Hutchinson HRA is authorized to administer the Housing TIF District 8 available funds for the needs of low and moderate income residents of Hutchinson as outlined in the Project Description for Housing District No. 8 and Target Areas. The project TIF administration fee is no more than 10% of the TIF funds expended per project, based on documentation of actual hours worked. Adopted this 8th day of September, 2015. ATTEST: Gary T. Forcier, Mayor Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Items for WWTF Forcemain Bypass Improvements Project (L13/P15-13) Department: PW/Eng LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ New Business Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Hutchinson Wastewater Treatment Facility (WWTF) has four forcemains that come into the headworks building. Two 18" forcemains come from the Main Lift Station and a 20" and 14" forcemain come from the HATS Lift Station. All four of these pipes are first connected to the grit chamber located in the headworks building. Under the existing setup, these four forcemains have no ability to bypass the grit chamber which means the grit chamber cannot easily be removed from service for maintenance or the valves and meters on the forcemains be isolated for replacement or maintenance. Currently the 14" forcemain from the HATS Lift Station is plugged (and thus not being metered) and City staff has no way to isolate this forcemain to fix the plugged valve. This project will install bypasses on both of the 18" forcemains from the Main Lift Station and the 20" forcemain from the HATS Lift Station. As discussed with City staff, the bypasses will be connected to the piping going into the equalization basin. Then, City staff will have the ability to pump from the equalization basin back to the oxidation ditches. This project will also install a 14" mag meter on the 20" forcemain from the HATS Lift Station to provide full redundancy from both lift stations. City staff requests that the City Council approve the appropriate Resolutions to proceed with these improvements in a timely manner. At this point, City staff hopes that the public bidding process goes well to allow for construction this fall prior to cold weather conditions. Please note that the funding of this project has been reviewed by the City Finance Department and that the Wastewater Fund has sufficient reserves to account for the costs of these improvements. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 223,720.00 Total City Cost: $ 223,720.00 Funding Source: Wastewater Funds Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14461 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 13/PROJECT NO. 15-13 WWTF FORCEMAIN BYPASS IMPROVEMENTS WHEREAS, it is proposed to improve: Installation of bypasses on both of the 18" forcemains for the Main Lift Station and the 20" forcemain from the HATS Lift Station. The bypasses will be connected to the piping going into the Equalization Basin. This project will also install a 14" mag meter on the 20" forcemain from HATS to provide full redundancy from both lift stations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 13/Project No. 15-13, 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 8th day of September 2015. Mayor: Gary Forcier City Administrator: Matt Jaunich 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 8, 2015 SUBJECT: Letting No. 13/Project No. 15-13 - WWTF Forcemain Bypass Improvements I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L13/P15-13 Installation of bypasses on both of the 18" forcemains for the Main Lift Station and the 20" forcemain from the HATS Lift Station. The bypasses will be connected to the piping going into the Equalization Basin. This project will also install a 14" mag meter on the 20" forcemain from HATS to provide full redundancy from both lift stations. ESTIMATED COST TOTAL Construction Cost $210,000 Engineering $13,720 Administration $0 En ineerin Services - Geotechnical $0 ESTIMATED TOTAL $223,720 ESTIMATED FUNDING TOTAL Assessable Costs $0 State Aid $0 Cit - Bonding $0 City - Water Funds $0 Cit - Wastewater Funds $223,720 City - Stormwater Funds $0 ESTIMATED TOTAL $223,720 RESOLUTION NO. 14462 RESOLUTION RECEIVING REPORT AND WAIVING HEARING LETTING NO. 13/PROJECT NO. 15-13 WWTF FORCEMAIN BYPASS IMPROVEMENTS WHEREAS, pursuant to a resolution of the Council adopted November 12th, 2014, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: Installation of bypasses on both of the 18" forcemains for the Main Lift Station and the 20" forcemain from the HATS Lift Station. The bypasses will be connected to the piping going into the Equalization Basin. This project will also install a 14" mag meter on the 20" forcemain from HATS to provide full redundancy from both lift stations, and WHEREAS, said report was received by the Council on September 8th, 2015, and WHEREAS, said improvement is 100% funded by City Funds with no assessments, therefore there is no need for a hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will considerthe improvement in accordance with the report at an estimated total cost of the improvement of $223,720.00. 2. A public hearing is hereby waived. Adopted by the Hutchinson City Council this 8th day of September 2015. Mayor: Gary Forcier City Administrator: Matt Jaunich RESOLUTION NO. 14463 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 13/PROJECT NO. 15-13 WWTF FORCEMAIN BYPASS IMPROVEMENTS WHEREAS, a resolution of the City Council adopted the 8th day of September, 2014, waived the Council Hearing on the following improvements: Installation of bypasses on both of the 18" forcemains for the Main Lift Station and the 20" forcemain from the HATS Lift Station. The bypasses will be connected to the piping going into the Equalization Basin. This project will also install a 14" mag meter on the 20" forcemain from HATS to provide full redundancy from both lift stations. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the resolution adopted the 8th day of September, 2015. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Kent Exner is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 5. The City Council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of tax exempt bonds. Adopted by the Council this 8th day of September 2015. Mayor: Gary Forcier City Administrator: Matt Jaunich RESOLUTION NO. 14464 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 13PROJECT NO. 15-13 WWTF FORCEMAIN BYPASS IMPROVEMENTS WHEREAS, the Director of Engineering/Public Works has prepared plans and specifications forthe following described improvement: Installation of bypasses on both of the 18" forcemains for the Main Lift Station and the 20" forcemain from the HATS Lift Station. The bypasses will be connected to the piping going into the Equalization Basin. This project will also install a 14" mag meter on the 20" forcemain from HATS to provide full redundancy from both lift stations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering/Public Works shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the Director of Engineering/Public Works until 10:30 am on Tuesday, October 6th, 2015, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Director of Engineering/Public Works, will then be tabulated, and the responsibility of the bidders will be considered bythe Council at 5:30 pm on Tuesday, October 13th, 2015 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering/Public Works and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Council this 8th day of September 2015. Mayor: Gary Forcier City Administrator: Matt Jaunich HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution 14459 Approving the HRA Preliminary 2016 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2016 tax levy to the County by September 15, 2015 for the HRA operations. The HRA's 2016 statutory levy limit is $160,141, which is the levy amount the HRA is requesting. This levy represents a 3% increase from the 2015 levy of $155,553. BOARD ACTION REQUESTED: Approve the HRA preliminary 2016 tax levy of $160,141. Fiscal Impact: 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: CITY OF HUTCHINSON RESOLUTION NO. 14459 CITY OF HUTCHINSON, MINNESOTA SETTING 2016 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA) and the financing of such district as authorized under Minn. Statute 469.033. WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of .000185 times estimated market value of the city. AND for 2016 the authorization yields: .000185 x $865,629,000 = $160,141; the HRA Board requests for 2016 a levy of $160,141. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $160,141 Adopted by the City Council this 8th day of September 2015. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution 14460 Approving the EDA Preliminary 2016 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2016 tax levy to the County by September 15, 2015 for the EDA operations. The EDA's 2016 statutory levy limit is $156,939, which the levy amount the EDA is requesting. This levy represents a 3% increase from the 2015 levy of $152,442. BOARD ACTION REQUESTED: Approve the EDA preliminary 2016 tax levy of $156,939. Fiscal Impact: 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: CITY OF HUTCHINSON RESOLUTION NO. 14460 CITY OF HUTCHINSON, MINNESOTA SETTING 2016 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA) and the financing of such district as authorized under Minn. Statute 469.107. WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of .0001813 times estimated market value of the city. AND for 2016 the authorization yields- .0001813 x $865,629,000 = $156,939; the EDA Board requests for 2016 a levy of $156,939. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $156,939 Adopted by the City Council this 8th day of September 2015. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution 14466 Approving the General Fund & Debt Service Fund Preliminary 2016 Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2016 tax levy to McLeod County by September 30, 2015 for the General Fund and Debt Service Fund. At the budget workshop on August 25th, Matt Jaunich reviewed the preliminary General Fund budget and Debt levy. The total tax levy is projected to increase 2.4%, consisting of a 3% General fund levy increase and 1 % Debt levy increase. In the General Fund, Revenues are expected to increase 2.4% to a total of $11,443,538. Total Expenditures are projected to increase by 2.9% to a total expense budget of $11,509,177. We currently are projecting a deficit of $65,639 which will be resolved by year-end. The 1 % Debt levy increase gets us to our target levy of $2,200,000 per the Debt Management plan. As has been explained to council in the past, this target levy becomes self-sustaining and won't necessarily need to be increased. As new debt is added, old debt falls off. We will be setting the final tax levy in December. As a reminder, that final levy cannot increase from the amount we are certifying with the Preliminary levy, however it can be reduced. BOARD ACTION REQUESTED: Approve the 2016 preliminary tax levy increase of 2.4%, consisting of a 3% General Fund levy increase and a 1 % Debt levy increase. Fiscal Impact: 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: CITY OF HUTCHINSON RESOLUTION NO. 14466 2016 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT A NET tax levy for the City of Hutchinson for 2016 is hereby set in the amount of: $6,813,829 The detail for this levy is as follows: LEVY Amt. General Fund 4,613,829 Improvement Bonds 2004 452,656 2006 516,590 2007 64,732 2008 161,244 2009 179,583 2010 105,876 2011 160,645 2012 135,231 2013 137,669 2014 128,934 2015 156,840 Total Improvement Bonds $ 2,200,000 TOTAL TAX LEVY $ 6,813,829 Adopted by the City Council this 8th day of September 2015. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approve Setting Truth-in-Taxation Hearing Date Department: Administration LICENSE SECTION Meeting Date: 9/8/2015 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: As we certify our preliminary tax levies to the County, we must also notify the County (and the Public) of the date that we will hold our Truth-in-Taxation Hearing. This is a public meeting of which the tax levy and budget will be discussed and a forum will be given to allow the public to comment on the proposed levy/budget. This public hearing is required by state statute. The public meeting requirements are as follows: 1. The Council must set the date, time and place of the meeting at which a final budget and tax levy will be discussed. 2. Meeting must be held after November 24 and at or after 6:00 p.m. 3. The public will be allowed to speak at the meeting. 4. We must have a phone number available where the public can call to ask questions on the budget along with an address available where public comments can be received by mail. Generally speaking we have held our Truth-in-Taxation Hearing on the first Tuesday in December. However, the County has their public hearing during the same time. Because of this, we are looking at having our hearing the first Thursday in December at 6:00 p.m. BOARD ACTION REQUESTED: Approve setting the Truth-in-Taxation Hearing date and time for Thursday, December 3 at 6:00 p.m. in the Council Chambers at City Center. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Weed Notices Monthly Report August 2015 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 14 Number of properties cleared by City order 6 Number of properties pending compliance at month's end 0 Properties that were ordered to be cleared by the City House Street Quadrant Property Owner City PID Maria Elena Rojas De Barragan 304 11th Ave 791 California St NW Worthington, MN 56187 36-117-30-06-0310 Darell Lange 567 Lynn Rd SW 567 Lynn Rd SW Hutchinson, MN 55350 06-116-29-12-0400 Kevin Kreatz 505 Buffalo Run Way 840 2nd Ave SW Buffalo, MN 55313 01-116-30-02-0330 Turn Key Investments 61100 270th St 712 Lynn Rd SW Litchfield, MN 55355 01-116-30-09-0750 Sam Ulland P O Box 907 465 Water St NW Winsted, MN 55395 36-117-30-06-1090 Sam Ulland P O Box 907 430 Water St NW Winsted, MN 55395 31-117-29-12-0270 Sam Ulland P O Box 907 455 Water St NW Winsted, MN 55395 31-117-29-12-0370 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 Johnny & Mary Rivera 526 Main St S 526 Main St S Hutchinson, MN 55350 06-116-29-06-0600 Paul & Rosemarie Bolduc 165 5th Ave NW 165 5th Ave NW Hutchinson, MN 55350 31-117-29-12-0021