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cp09-22-2015HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 22, 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 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 September 8, 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 of a Conditional Use Permit to Operate a Retail Water Vending Business with Additional Office Space at 108 4th Avenue NW in a C-5 Zoning District with Favorable Planning Commission Recommendation — Adopt Resolution No. 14465 (b) Consideration for Approval of Easement Agreement with Faith Lutheran Church (c) Consideration for Approval of Issuing Short -Term Gambling License to Hutchinson Hockey Association on January 23, 2016, at Landy Lodge (d) Claims, Appropriations and Contract Payments PUBLIC HEARINGS (6:00 P.M.) 8. APPROVE/DENY 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 CITY COUNCIL AGENDA SEPTEMBER 22, 2015 AND USE OF THE SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLATION OF ITS PROVISIONS �a) Motion to Close Public Hearing b) Approve/Deny Ordinance No. 15-0747 (The purpose of this portion of the agenda is to provide the ounci with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) 9. UPDATE ON HUTCHINSON PUBLIC LIBRARY — PAM DILLE UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY OUT-OF-STATE TRAVEL REQUEST FOR MILES SEPPELT TO ATTEND THE "SITE SELECTOR'S GUILD FALL FORUM" IN PHILADELPHIA, PA FROM OCTOBER 26-28,2015 11. APPROVE/DENY RESOLUTION NO. 14467 RESOLUTION AMENDING CITY OF HUTCHINSON POSITION CLASSIFICATION ASSIGNMENT TABLE 12. APPROVE/DENY SETTING CITY OF HUTCHINSON RECOGNITION EVENT 13. APPROVE/DENY SETTING CITY COUNCIL BUDGET WORKSHOPS 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.) 14. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS a) Residential Leaf Vacuum Service — 2015 Season Press Release �b) City of Hutchinson Financial Report and Investment Report for August 2015 c) HRA Board Minutes from August 18, 2015 �d) Public Library Board Minutes from August 24, 2015 e) Planning Commission Minutes from July 21, 2015 MISCELLANEOUS 15. STAFF UPDATES 16. COUNCIL/MAYOR UPDATE ADJOURNMENT 2 HUTCHINSON CITY COUNCIL MEETING MINUTES 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 Motion by Czmowski, second by Arndt, to approve the agenda as presented. Motion carried unanimously. 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 Matt Jaunich, City Administrator, reminded the Council that Glen Kurth had agreed to pay for the new scoreboard at VMF field. Mr. Kurth is paying for half of the scoreboard now and will pay the remainder of the scoreboard in the spring. This Resolution formally accepts Mr. Kurth's donation. Motion by Arndt, second by Christensen, to approve Resolution No. 14455. Motion carried unanimously. 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 Motion by Arndt, second by Czmowski, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedjor 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 CITY COUNCIL MINUTES SEPTEMBER 8, 2015 (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 (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 Item 7(d) wase pulled for separate discussion. Motion by Lofdahl, second by Czmowski, to approve the consent agenda, with the exception of the item noted above. Motion carried unanimously. Item 7(d) had further discussion. Council Member Czmowski questioned the appointment of Robert Hantge to the HUC. Council Member Czmowski noted that the HUC has recommended Greg Wheatley as the appointment. In addition, the HUC has all interested persons complete a matrix of qualifications and Mr. Wheatley scored the highest. Mayor Forcier noted that he has had no communication with Mr. Wheatley regarding the appointment regardless of several attempts to contact him. Mayor Forcier noted that Mr. Jaunich encouraged him to place the appointment on the agenda due to the HUC wanting to fill the position for strategic planning activities they are in the middle of. Because Mayor Forcier had not heard from or been able to communicate with Mr. Wheatley, he stated that he felt Mr. Wheatley was not interested in the appointment. Motion by Lofdahl, second by Forcier, to approve Item 7(d). Roll call vote was taken: Christensen — nay; Arndt — nay; Lofdahl — aye; Czmowski — nay; Forcier — aye. Motion failed 3- 2. Mayor Forcier clarified that he as the mayor has the ability to make appointments. City Attorney Marc Sebora clarified that he has the ability to provide a name for appointment, however the Council has to ratify the appointment. This item will be discussed at a later date. 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 2 CITY COUNCIL MINUTES SEPTEMBER 8, 2015 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 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained what TIF Districts are and how financing is used in the districts and provided examples of TIF District projects, such as the State Theatre and Cornerstone Commons. Mr. Seppelt explained that over the years various "Tax Increment Financing" (TIF) districts have been established in and around downtown to help remove blight and facilitate redevelopment. 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 the Council packet. These boundaries enclose a number of blighted properties in and around Hutchinson's downtown and industrial park. Jean Ward, HRA Director, explained how TIF Funds will be used for housing projects such as rehab projects, purchasing substandard properties, gap financing, and owner -occupied accessibility loans. Mr. Seppelt clarified that the development district includes TIF districts. This proposed action expands the development district around TIF District areas and TIF housing areas. Motion by Arndt, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Christensen, to approve Resolution No. 14451. Motion carried unanimously. (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 9. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-744 - REVISIONS TO CHAPTER 112 — LIQUOR REGULATIONS Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its second reading and adoption. Nothing has changed in the ordinance since the first reading. Motion by Christensen, second by Czmowski, to approve Item 9. Motion carried unanimously. 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 Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its second reading and adoption. Nothing has changed in the ordinance since the first reading. Mr. Sebora noted that the city administrator had provided a memo in the Council packet with further CITY COUNCIL MINUTES SEPTEMBER 8, 2015 detailed information. Mr. Sebora reminded the Council that ATVs are already allowed to be operated in city limits, so nothing is new. Motion by Czmowski, second by Lofdahl, to approve Item 10. Motion carried unanimously. 11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 15-746 — REPEALING SECTIONS 73.15 & 73.16 — ATVS AND GOLF CARTS Marc Sebora, City Attorney, reminded the Council that this ordinance is on for consideration for its second reading and adoption. Nothing has changed in the ordinance since the first reading. This ordinance repeals a couple of ordinances that are in the books but are now encompassed in the new ordinance, 15-745. Motion by Czmowski, second by Christensen, to approve Item 11. Motion carried unanimously. NEW BUSINESS 12. APPROVE/DENY RESOLUTION NO. 14456 - RESOLUTION AUTHORIZING ISSUANCE OF $2,240,000 GENERAL OBLIGATION BONDS, SERIES 2015A Andy Reid, Finance Director, introduced Nick Anhut from Ehlers & Associates on the bids received for the bond issuance for 2015 improvement projects. Mr. Anhut explained that six bids were received with the low bidder being Piper Jaffrey with just under 2.33%. Piper Jaffrey also offered a premium payment, which ultimately lowered the GO bond amount to approximately $2.14 million. Closing is expected on October 1, 2015, at which time the funds will be available to the city. Motion by Lofdahl, second by Czmowski, to approve Resolution No. 14456. Motion carried unanimously. 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 VIOLATION OF ITS PROVISIONS (WANE FIRST READING AND SET SECOND READING AND PUBLIC HEARING FOR SEPTEMBER 22, 2015) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that the current franchise agreement with NuTelecom expires the end of this month. The new proposed franchise agreement is essentially the same as the current contract other than some updated insurance information and updating language. The attorney that negotiated the contracted, Robert Vose, will be in attendance at the public hearing at the next Council meeting. Council Member Lofdahl noted that various franchise have different term lengths and are specific in each franchise agreement. Mr. Sebora noted that is correct and that following this agreement, NuTelecom and Mediacom will have the same term length. .19 CITY COUNCIL MINUTES SEPTEMBER 8, 2015 Motion by Lofdahl, second by Christensen, to approve first reading of Ordinance No. 15-747 and set 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 Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14451. Motion carried unanimously. 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 Kent Exner, City Engineer, presented before the Council. 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. Reserve funds from the wastewater fund will be utilized. Motion by Christensen, second by Lofdahl, to approve Resolution Nos. 14461, 14462, 14463, and 14464. Motion carried unanimously. 16. APPROVE/DENY SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2016 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14459) Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that each September the Council certifies preliminary levies to McLeod County. The levies cannot be increased, however they can be decreased. $160,141 is being requested by the HRA and is the statutory limit. These funds are used for operations and wages and benefits for the HRA. Motion by Arndt, second by Christensen, to approve Resolution No. 14459. Motion carried unanimously. 17. APPROVE/DENY SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2016 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14460) Andy Reid, Finance Director, presented before the Council. $159,939 is being requested by the EDA and is the statutory limit. These funds are used for operations and wages and benefits of the EDA. CITY COUNCIL MINUTES SEPTEMBER 8, 2015 Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14460. Motion carried unanimously. 18. APPROVE/DENY SETTING CITY OF HUTCHINSON 2016 GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT RESOLUTION NO. 14466) Matt Jaunich, City Administrator, noted that at the August 25, 2015, City Council workshop, the Council had been presented a 1% debt levy increase and a 3% general fund levy increase with an overall 2.4% levy increase. Mr. Jaunich provided information as requested by the Council on the costs associated with operating the motor vehicle office one more day a week. Itis prof ected that it would cost approximately $39,000/year to operate the DMV office one more day a week, however it more than likely would not bring enough revenue to offset those costs. This is not included in the preliminary levy. Motion by Lofdahl, second by Christensen, to approve Resolution No. 14466. Motion carried unanimously. 19. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING DATE Matt Jaunich, City Administrator, explained that the City must hold a truth in taxation hearing each year that allows for the public to comment on the City's final budget/tax levy. Staff is proposing to set the hearing for December 3, 2015, at 6:00 p.m. Motion by Lofdahl, second by Christensen, to set truth in taxation hearing date for December 3, 2015, at 6:00 p.m. in the Council Chambers. Motion carried unanimously. GOVERNANCE e 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 Kent Exner, City Engineer, provided project updates on the Luce Line Trail, Golf Course Road, cemetery columbaria, and airport. Matt Jaunich, City Administrator, noted that the Open Streets Event is scheduled for September 26, 2015, from 10:00 a.m. — 3:00 p.m. The first half hour of the event will be celebrating the Bike Friendly designation the city received and the remainder of the event will be celebrating the paving of the Luce Line Trial. Mr. Jaunich updated the Council on the transition to the new refuse hauler and when garbage/compost containers will be changed out. As information becomes more definitive, it will be distributed to residents via press releases and utility bills. 22. COUNCIL/MAYOR UPDATE John Lofdahl — Council Member Lofdahl noted that the dedication of the Crow River Habitat house will be on Sunday September 13, 2015. The house is located on Morningside Drive. Mayor Forcier — Mayor Forcier noted he will be holding an open forum on October 6, 2015, at the R CITY COUNCIL MINUTES SEPTEMBER 8, 201 S VFW at 6:30 p.m. ADJOURNMENT Motion by Czmowski, second by Christensen, to adjourn at 6:40 p.m. Motion carried unanimously. 7 HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Conditional Use Permit for Retail Water Vending/Office Space 108 4th Ave. NW Department: Planning LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Ron Wertish is requesting a Conditional Use Permit at 108 4th Ave. NW to operate a retail water vending business (Water Depot) with additional office space in the building. The site was previously a car wash and the existing building will be remodeled to accommodate this use. All uses within the C-5 Zoning District require a Conditional Use Permit. Mr. Wertish spoke at the Planning Commission meeting regarding his request. Nobody from the public spoke regarding this request. The Planning Commission unanimously approved this request with the conditions noted by Staff. BOARD ACTION REQUESTED: Approval of Conditional Use Permit. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: DIRECTORS REPORT — PLANNING DEPARTMENT r To: Hutchinson Planning Commission From: Mike Schumann, Dan Flatten, Dave Hunstad, Dolf Moon, Jean Ward, Matt Jaunich, John Olson, John Paulson, John Webster, Judy Flemming, Kent Exner, Miles Seppelt, Lenny Rutledge, Marc Sebora, Dan Jochum and Kyle Dimler (Persons in attendance at Planning Staff Meeting (in bold) Date: September 9, 2015, for September 15, 2015 Planning Commission Meeting Application: Consideration of a Conditional Use Permit Applicant: Ron Wertish Conditional Use Permit Ron Wertish is requesting a Conditional Use Permit at 108 4m Ave. NW to operate a retail water vending business (Water Depot) with additional office space in the building. The site was previously a car wash and the existing building will be remodeled to accommodate this use. All uses within the C-5 Zoning District require a Conditional Use Permit. HIGHWAY 7 W r M z ch —i C.U.P 1084 1h Ave. NW Planning Commission — 9/15/2015 Page 2 GENERAL INFORMATION Existing Zoning: C-5 (Conditional Commercial) Property Location: 1084 th Ave. NW Lot Size: .37 acres Existing Land Use: Car Wash Adjacent Land Use And Zoning: C-5 (Conditional Commercial); R-2 across Highway 7 Comprehensive Land Use Plan: Commercial Zoning History: 1996 — variance for construction of car wash 1996 — conditional use permit for car wash Applicable Regulations: Section 154.065; Section 154.170, Section 157 Building: The existing car wash building will be remodeled. Analysis: The applicant, Ron Wertish of Water Depot is requesting a conditional use permit to operate a self-service water vending business. In addition, to the self-service water vending Mr. Wertish is also requesting approval for future office space in the building. Mr. Wertish has opened several Water Depot locations over the past 10 years or so. The closest one to Hutchinson is in Litchfield with several more in southwest/west central Minnesota. Staff understands that a small portion of the existing building will be used for the Water Depot and the other portion of the building would be remodeled into offices. The proposed interior layout would include 375 square feet for the Water Depot use and four future office suites, three of which are 375 square feet and one that is 300 square feet. The existing car wash doors would be taken out and replaced with windows and doors. Site Layout/Parking Since this is a reuse of an existing building the site layout is not expected to change. Primary access will be off of Glen St. There is plenty of room for parking on the site as well. Per the zoning ordinance requirements the Water Depot portion of the site will require 2 off street parking spaces to meet code. The future office space will require 8 parking spaces. Staff calculated the potential amount of parking spaces that the site could accommodate and that is 18 spaces. This is using the 300 square feet per parking space and drive isle for the entire parking lot that is laid out in the zoning ordinance. C.U.P 1084 1h Ave. NW Planning Commission — 9/15/2015 Page 3 Conditional Use Permit: The Conditional Use Permit (CUP) is required for a business in the C-5 Zoning District. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Recommendation: Staff recommends that Planning Commission approve the Conditional Use Permit with the following conditions because the request meets the standards for granting a Conditional Use Permit. Staff recommends approval of the conditional use permit with the following recommendations: 1. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building and site improvements shall comply with the standards of the C-5 district and the Zoning Ordinance as determined by City Staff and the City Council. 3. The applicant is required to stripe 10 parking spaces for the site and have the location and size of the spaces approved by Staff. 4. Any signage for the use will require a sign permit. 5. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. 6. If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. - - -9 - - .. 4 ax w t,� "r-Jcr i� Xt I's / I PO C, 13&,/ 1 r �� �j�, 1 3�r �a r ovet4e,,j a� er�,e.�- Apr �he � 01,041's VQ 600 0 riI' i ne �vllenr CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14465 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO OPERATE A RETAIL WATER VENDING BUSINESS WITH ADDITIONAL OFFICE SPACE AT 108 4TH AVE. NW IN A C-5 ZONING DISTRICT, RON WERTISH, APPLICANT. FACTS Ron Wertish is the applicant and owner of a parcel of land located at 108 4th Ave. NW, Hutchinson Minnesota; and, 2. The subject property is legally described as: Lots 1 and 2, Block 22, TOWNSTTE OF HUTCHINSON, NORTH HALF, excepting therefrom Parcel 48 on Minnesota Department of Transportation Right of Way Plat Numbered 43-43, McLeod County, Minnesota 3. Ron Wertish, applicant and property owner, has applied to the City for a conditional use permit to operate a self-service water vending business with additional office space at 108 4th Ave. NW in a C-5 zoning District. 4. The property is located in the C-5 (Conditional Commercial) Zoning District. 5. The request for a conditional use permit is required because of Section 154.065 (C), as there are no permitted principal uses in the C-5 District. 6. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the Conditional Use Permit on September15, 2015 with the following findings and conditions: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. The proposed building and site improvements shall comply with the standards of the C- 5 district and the Zoning Ordinance as determined by City Staff and the City Council. c. The applicant is required to stripe 10 parking spaces for the site and have the location and size of the spaces approved by Staff. d. Any signage for the use will require a sign permit. e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. f If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 22, 2015 and has considered the recommendation Findings of Fact — Resolution 14465 Conditional Use Permit 1084 1h Ave. NW 9/15/2015 Page 2 and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. The proposed building and site improvements shall comply with the standards of the C- 5 district and the Zoning Ordinance as determined by City Staff and the City Council. c. The applicant is required to stripe 10 parking spaces for the site and have the location and size of the spaces approved by Staff. d. Any signage for the use will require a sign permit. e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. f If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.175 of the City of Hutchinson Municipal Code. (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 9. The requested conditional use permit is consistent with the comprehensive plan. 10. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 11. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations Findings of Fact — Resolution 14465 Conditional Use Permit 1084 1h Ave. NW 9/15/2015 Page 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit to allow Ron Wertish, applicant and property owner, to operate a self-service water vending business with additional office space at 108 4th Ave. NW in a C-5 zoning district is hereby approved. Adopted by the City Council this 22nd day of September, 2015. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Easement agreement with Faith Lutheran Church Department: PW/Eng LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Kent Exner/John Olson 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 part of an ongoing project to improve parking areas in the downtown area, staff recommends removal of the alley apron and islands at the vacated alley on 3rd Ave SE (between Main St S and Hassan St SE). Removal of the alley panel and islands at this location would add 4 parking stalls to the south side of 3rd Ave SE, which would benefit Faith Lutheran Church, the Post Office and Landy's Lodge. In addition, street maintenance and snow removal operations for this area would also be simplified. In order to move utilities located in the easternmost island (Streetlight & Cable), it is necessary to have an easement with Faith Lutheran Church to move these two items to the other side of the sidewalk. In conversations with Faith Lutheran Church, they identified two very reasonable issues: 1) that the City/Utility be responsible for maintenance/upkeep of the two items; and, 2) that if expansion of their building in the future necessitated moving the two items, that they would be moved at no cost to the congregation. The draft easement document was reviewed by Faith Lutheran Church, the City Attorney and City Engineer. BOARD ACTION REQUESTED: Approval of Easement Fiscal Impact: $ 0.00 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: UTILITY EASEMENT This indenture made and entered into this day of , 20_, by and between Faith Lutheran Church, 335 Main St S, Hutchinson, MN, hereinafter "Grantor", and the City of Hutchinson, a Minnesota municipal corporation, hereinafter "Grantee". Now therefore, for good and valuable consideration, which both parties acknowledge to be sufficient, Grantor hereby grants an easement for utility purposes over, under and across that part of Faith Lutheran Church Addition, Lot 1, Block 1, City of Hutchinson, McLeod County, Minnesota, shown in the attached "Exhibit A" and described as follows: The North 15.00 feet of the East 30.00 feet of the West 155.25 feet of Lot 1, Block 1, Faith Lutheran Church Addition, according to the recorded plat thereof. The Grantee shall have at any time the right to enter upon the easement to construct, operate and maintain utility improvements upon said permanent easement. The granting of this easement shall include the right to locate and place necessary utilities and to perform related maintenance activities as deemed to be necessary by the Grantee. The Grantor shall retain the right to utilize property within the easement in any manner that does not adversely impact the function, accessibility or capacity of utilities placed therein. Should it be determined to be necessary to remove said utilities to accommodate development or construction undertaken by the Grantor, the Grantee shall remove said utilities from the easement at no cost to the Grantor. This easement shall be binding upon the successors, heirs and assigns of the parties in perpetuity. In witness whereof, said Grantors here unto have set their hands to this instrument on the day and year first above written. GRANTORS: FAITH LUTHERAN CHURCH By: Printed Name: Title: STATE OF MINNESOTA } )ss COUNTY OF } The foregoing instrument was acknowledged before me this and (Title) of FAITH LUTHERAN CHURCH, Grantors. SIGNATURE OF NOTARY Notary Stamp: GRANTEE: CITY OF HUTCHINSON, MINNESOTA By: Printed Name: Title: day of , 20_, by (Name) (Name) (Title) This document was drafted by: Marc A. Sebora Hutchinson City Attorney 111 Hassan St SE Hutchinson MN 55350 (320)234-5683 O EASEMENT EXHIBIT FOR THE CITY OF HUTCHINSON 5P I I O I I I I I w 1 wBLOCK 27 Iw/ ► I IL(n00� 6 IQ► 5 (� ► v' 1 , I Q Z co Q V) 3RD AVENUE SE _ North line of Lot 1, Block 1 FAITH LUTHERAN CHURCH ADDITION - -125.25-- ----- 0.00 ----------------� --- ---�F---- g kci EASEMENT �Ii I , sl West line of the East 30 feet _-.S"" L.— East line of the West 155.25 feet I I 0 �� 4� 80 I ( i of the West 155.25 feet 30.00 of Lot 1, Block 1 ► I ► of Lot 1, Block 1 Z South line of the North 15 feet S C O e //7 fee t of Lot 1, Block 1 I I � I I ► Y OV ► O , I I 1 1 1 .0 -° ' ► I 1 hereby certify that this Survey, Plan or I oww I LOT 1 I Report was prepared by me or under my direct I l O supervision and that I am a duly licensed Land Surveyor under the laws of the State of Minnesota. 3 BLOCK 1 R P J Wf R R4usch GD a t e: h0� L I c. No. a 4� EASEMENT DESCRIPTION An easement for drainage and utility purposes over, under and across the North 15.00 feet of the East 30.00 feet of the West 155.25 feet of Lot 1, Block 1, FAITH LUTHERAN CHURCH ADDITION, according to the recorded plat thereof. EASEMENT AREA=450 Square Feet eI Remove cable pedestal, place in easement area Remove trec \3RDAVE SE lot aIp� \ , .• p +AilProposed proji panel, restore Y f � . e ht, place in easement area � r w to remove alley a to parking r The intent of the proposed project is to remove the existing alley panel, as the alley has been vacated. This would allow for four (4) more parking stalls along 3`d Ave SE, which will benefit Faith Lutheran, the Post Office and Landy's Lodge. Street maintenance of the area will also be simplified. The easement is necessary so a streetlight and a cable pedestal can be moved from the islands at the former alley end to the south side of the sidewalk, which is Faith Lutheran Church's property. John Olson From: Wendy Mayland <WendyM@faithlc.com> Sent: Wednesday, August 26, 2015 4:34 PM To: John Olson Cc: Diane Pedersen Subject: City request/ Response Dear Mr. Olson, Our management team has discussed the City of Hutchinson's request regarding moving a light and electrical box from the old alley way on the north side of our property across the sidewalk onto our property. It has been agreed that the city can do this as long as we can get two things in writing from the city first. 1) 1) That the city is still responsible for the maintenance and upkeep of these two items even though they are on church property 2) 2) Down the road we plan to do further expansion on the north side of the building. If it is determined by the architects and contractors that these are in the way of that development that the city will agree to move them without any cost to Faith Lutheran Church at that time. Please let us know if the City of Hutchinson agrees with these requests. Grace and Peace, Wendy S. Mayland Administrative Assistant Faith Lutheran Church 335 Main Street South Hutchinson, MN 55350 320-587-2093 FAX 320-587-2090 HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Short-Term Gambling License - Hutch Hockey Association Department: Administration LICENSE SECTION Meeting Date: 9/22/2015 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: Hutch Hockey Association has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding on January 23, 2016. 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 Hutch Hockey Association on January 23, 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: Cas of 1 1 I Hassan Street Southeast l lutchinson, MN 55354 (320) 587-5151 Fax: (320) 2344240 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 -Applicativn Ty e 14 Short Term Date(s) Z3 �o�b - ���3�ZC1 Ucc: s3o.00 Month/DaYlYear - Ilrlonth/DailYear X—L olllnllt� fbE *a712-7 7r anizatinn Information 00 H u ft-hihson Hockey A ssoc-iAf 'ori 585. 5079 - Name Phone Number e, -Te r ea T,'S-: 1150 HVVY 7 W HUf hi hson -MPJ S53r c� Address where regular meeting are held City Slate Zip Federal or State ID: ;;I — b } $bob o Day and time of meetings? Z."d Wedhesda of eac,h mo nth_ at,t 71,30 A Is this organization organized under the laws of the State of Minnesota? ❑ yes ❑ no How long has the organization been in existence? 4 2 YIN How may members in the organization? 200 What is the purpose of the organization? 'Promote yo utth hockey In whose custody will organization records be kept? "e r )L Ca r t e r C3 aa� SS 3.587'i - Name Phone Number P. M r4 S53So Address City Slate Zip Duly Authorized Officer of the Organization Information Brenn Carter zo.53.58Z'� True Name _ Phone Number 1J.;"15 _ S it tAx 4- 1" l is Pd H utf-h = hsOh M N 95 3MD Residence Address City Slate Zip Date of Birth: Place of Birth: +-4 L'tt { )I SO M 14 Monthlday/ve ur (. 'rid State Have you ever been convicted of any crime other than a traffic offense? LI yes 110 If yes, explain: City of Hutchinson .41317tiralion for Cjamblrng D vicvs L7cwnse Page 2 of 3 Desi nated Gambling Manager {Qualified under Minnesota Statute 029) Larall(azo} . �g �,. 0 r'rue Name Phone Number 17 Arove, . QW H tAtCh l r ewn 1111 " ss ?� Residence Address City Mare Zip Date of Birth: L+ 1 Zr, 91 Place of Birth: -HLAtd1i n5dh N A9onth/dat /year Co' State Have you ever been convicted of any crime other than a traffic offense? ❑ yes Ano If yes, explain: How long have you been a member of the organization? Game Information Location # 1 Name of-luc'afion where game will be played Phone Number 35 �4- AVOnUe,. S-W—_H 1At0K' N 5 354 Address ujlucutirm where game will he played C'iry __ Stale -zip Date(s) and/or day(s) gambling devices will be used: b _ through AM AM Hours of the day gambling devices will be used: From 10 : �(� 7'0 I 0 p Maximum number of player: 200 Will prizes be paid in money or merchandise? A money ❑ merchandise Will refreshments be served during the tinie the gambling devices will be used? 4 yes ❑ no If yes, Willa charge be made For such refreshments? 14es ❑ no Game Information Location #2 NIA_ Name of location where game 11411 he played Phone Number Address of location where game will be player/ � C'il) State 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 QPM To p 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? ❑ ye5 ❑ no (: 'q of Hurchiilsorr Appllcayinn fi)r Gambling Dewcex Lr wwse Page 3 of 3 Officers of the Organization (if necessary, dist additional names on separate sheet) 11 Pete Lz4wiq Vice Press dent Nome Title - lb6z2 ZOVh Gi role 4U frh i rmh M r4 se Residence Address Ch utk Ives 01.1 Stale -Treasurer Zip Name Title �15 Ne. -.0 Ave, . SVV ns AAN ,5350 �j Residence Address' �}'' 31 C f 6� City State + - sal .� I.ip Naine Tille 3i31 -k.bi r br. S VV }- kitW nsD1� �V1t4 350 Residence Address city..... State zi Officers or Other Persons Paid for Services Information (if necessa , list additional names on separate sheet) -- —��— - .Hunte Title Residence Address _ City State zip _.. N11I Name Title Residence Address MIA 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 11420 and Minnesota Statutes Chapter 349)? Gambling Manager 16 yes ❑ no Authorized Officer ;a yes ❑ no lriilial Initial I declare that the information 1 have provided on this application is truthful, and 1 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 I will familiarize myself with the contents thereof. TO of authorized t fficer of nrganizutinn 1 Yi Signature u,'garndling manager of organization Intemal Use Only City Council ❑ approved ❑ denied Notes: Date 011cll[ug1 -- LJute CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/22/2015 - 09/22/2015 Check Date -------------------------- 09/22/2015 Check ---------------------- 187729 Vendor Name ----------------------------------------------------------------- AARP Description --------------------------------------------------------------------------- AARP INSTRUCTION Amount ----------------------- 560.00 09/22/2015 187730 ACE HARDWARE MISC PURCHASES 928.86 09/22/2015 187731 ACE HARDWARE MISC PURCHASES 0.00 09/22/2015 187732 AEM MECHANICAL SERVICES INC STAT 56.49 09/22/2015 187733 ALBERTS, LESLIE REIMBURSEMENT FOR ICE SKATING INSTITUTE 85.00 09/22/2015 187734 ALLIED ELECTRONICS INC INDICATOR, PROCESS:LOOP POWERED 338.43 09/22/2015 187735 ALPHA WIRELESS MAINT ON CONSOLE 09/15-10/15 848.19 09/22/2015 187736 AMERIPRIDE SERVICES TOWELS, MOPS 81.33 09/22/2015 187737 ANDERSON -CRANE RUBBER COMPANY 4" CLEAR STD DUTY PVC SUCTION HOSE 789.08 09/22/2015 187738 ANIMAL MEDICAL CENTER ON CROW RIVER CAT & DOG BOARDING 1,528.50 09/22/2015 187739 ARCTIC GLACIER USA INC. ICE 666.72 09/22/2015 187740 ARNESON DISTRIBUTING CO SEPT PURCH 747.70 09/22/2015 187741 ARROW TERMINAL LLC BLACK CABLE -SHOP SUPPLIES 185.64 09/22/2015 187742 ARTHUR J GALLAGHER RISK INSURANCE BROKER FEE FOR 10/1/15-12/31/1 3,218.75 09/22/2015 187743 ARTISAN BEER COMPANY SEPT PURCH 689.50 09/22/2015 187744 AUTO VALUE - GLENCOE SHOP PART 257.44 09/22/2015 187745 AUTOMATIC SYSTEMS CO MONTHLY SERVICE AGREEMENT MAY 2015 5,973.00 09/22/2015 187746 BECKER ARENA PRODUCTS CYCLO PLASTI-SCRUB 54.80 09/22/2015 187747 BELLBOY CORP SEPT PURCH 3,105.29 09/22/2015 187748 BERGER PLUMBING HEATING AC LABOR, WADING POOL PUMP, PIPE & FITTINGS 1,242.36 09/22/2015 187749 BERNICK'S MISC BEVERAGES 195.70 09/22/2015 187750 BERRY, AARON BOOTS 150.00 09/22/2015 187751 BOLTON & MENK INC. HCD PAVEMENT REHAB -RUNWAY, TAXIWAY,APRON 12,208.20 09/22/2015 187752 BRAUN INTERTEC CORP ROBERTS ROAD -ST IMPROVEMENTS THROUGH 8/8 3,082.00 09/22/2015 187753 BREEZY POINT RESORT MN ICE ARENA MANAGERS ASSN CONFERENCE M. 179.44 09/22/2015 187754 BROTHERS FIRE PROTECTION COMPANY 5 YEAR INSPECTION & REPLACED 14 SPRINKLE 1,625.00 09/22/2015 187755 BRYAN ROCK PRODUCTS RED BALL DIA 1,320.58 09/22/2015 187756 BUSINESSWARE SOLUTIONS HP 23.6" LED V241P 745.00 09/22/2015 187757 C & L DISTRIBUTING SEPT PURCH 33,051.52 09/22/2015 187758 CANNON RIVER WINERY SEPT PURCH 276.00 09/22/2015 187759 CARS ON PATROL SHOP LLC SQUAD#7 217.50 09/22/2015 187760 CENTRAL HYDRAULICS COUPLER 227.61 09/22/2015 187761 CENTRAL LANDSCAPE SUPPLY ADVERTISING 2015 188.50 09/22/2015 187762 CENTRAL MCGOWAN HIGH PRESSURE CYL 138.88 09/22/2015 187763 CHEMISOLV CORP FERRIC CHLORIDE 38% 4,465.19 09/22/2015 187764 CLAY, WALT REPAIR SPRINKLER 199.92 09/22/2015 187765 CMKSERVICES LLC LAWN MOWING 567 LYNN RD SW 200.00 09/22/2015 187766 COMDATA CORPORATION OIL, COOKIES 89.93 09/22/2015 187767 CONTINENTAL RESEARCH CORP HV QUART SPRAYER 220.83 09/22/2015 187768 CROW RIVER AUTO & TRUCK REPAIR OIL CHANGE- 2015 CHEV CAPRICE 68.82 09/22/2015 187769 CROW RIVER GOLF CLUB REFUND FOR SECURITY FEES NOT WORKED 216.00 09/22/2015 187770 CROW RIVER PRESS INC SENIOR NEWSLETTER 97.63 09/22/2015 187771 DAVE GRIEP CLEANING CLENA WINDOWS 45.00 09/22/2015 187772 DAY DISTRIBUTING SEPT PURCH 9,335.30 09/22/2015 187773 DIRECT PLASTICS GROUP SPLENDOR GRO TOP SOIL 59,820.35 09/22/2015 187774 DISPLAY SALES CHRISTMAS DECORATIONS FOR LIB SQUARE 3,847.00 09/22/2015 187775 DROP -N -GO SHIPPING INC APPLIED CONCEPTS 69.45 09/22/2015 187776 DUKE'S ROOT CONTROL, INC PIPE SEWER ROOT CONTROL 2,362.35 09/22/2015 187777 DYNA SYSTEMS CLAMP ALL STAINLESS HOSE 165.20 09/22/2015 187778 E2 ELECTRICAL SERVICES INC INSTALL RAB 52W LED 2,841.21 09/22/2015 187779 ECOLAB PEST ELIMINATION COCKROCH/RODENT PROGRAM -SEPT 204.31 09/22/2015 187780 ELECTRIC MOTOR CO 20 H.P PUMP MOTOR 1,250.00 09/22/2015 187781 ELECTRO WATCHMAN FIRE & SECURITY 09/1/15-11/30/15 699.83 09/22/2015 187782 ENVIRONMENTAL TOXICITY CONTROL CHRONIC TOXICITY TESTING 1,175.00 09/22/2015 187783 EXNER, KENT MNDOT EXPENSES 235.07 09/22/2015 187784 EXTREME BEVERAGE LLC MISC BEVERAGES 139.60 09/22/2015 187785 FARM -RITE EQUIPMENT TOOTH, RHT & LFT -STUMP GRINDER 463.13 09/22/2015 187786 FASTENAL COMPANY 14"FMP1000DIAMONDBLD 860.72 09/22/2015 187787 FIRST CHOICE FOOD & BEVERAGE SOLUTI COL 1.5 152.00 09/22/2015 187788 FISHER SCIENTIFIC DRIERITEINDICAT 293.49 09/22/2015 187789 G & K SERVICES MATS 210.22 09/22/2015 187790 GAVIN WINTERSTWISSTHIEMANN & LONG FLAT FEE -AUGUST 3,200.00 09/22/2015 187791 GEB ELECTRICAL INC INSTALL RECEP FOR CHARGER 135.00 09/22/2015 187792 GRAINGER THERMOSTAT CABLE 119.08 09/22/2015 187793 HANSEN GRAVEL GRANITE SAND 472.00 09/22/2015 187794 HANSON & VASEK CONSTRUCTION SIDEWALK REPLACEMENT SOUTH PARK PO#19088 8,292.00 09/22/2015 187795 HD SUPPLY WATERWORKS LTD FLANGE, GASKET 86.26 09/22/2015 187796 HENRY'S WATERWORKS INC PENTAGON PLUG LID 153.53 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/22/2015 - 09/22/2015 Check Date -------------------------- 09/22/2015 Check ---------------------- 187797 Vendor Name ----------------------------------------------------------------- HFI FLUID POWER PRODUCTS Description --------------------------------------------------------------------------- VALV, SOL, BR, NC Amount ----------------------- 864.26 09/22/2015 187798 HI-LINE INC TERMINAL BUTTSPLICE 340.36 09/22/2015 187799 HIBU INC DISPLAY ADS 09/01/15-08/31/16 1,548.00 09/22/2015 187800 HILLYARD/ HUTCHINSON AIR FRESHENER 44.09 09/22/2015 187801 HJERPE CONTRACTING REPLACE 2 GATE VALVES & BOLTS SHERWOOD S 18,722.79 09/22/2015 187802 HOME SWEET HOME QUILT & DESIGN SIGN TARPS 410.92 09/22/2015 187803 HUTCHINSON CO-OP FUEL & CHEMICALS 8,942.51 09/22/2015 187804 HUTCHINSON HEALTH TESTING 261.00 09/22/2015 187805 HUTCHINSON LEADER WEB ADVERSTISING 1,648.30 09/22/2015 187806 HUTCHINSON SENIOR ADVISORY BOARD POSTAGE FOR SEPT NEWSLETER 2,400.45 09/22/2015 187807 HUTCHINSON UTILITIES AUGUST UTILITIES 7/31- 8/31/15 85,719.36 09/22/2015 187808 HUTCHINSON UTILITIES AMR INFRASTRUCTURE COST SHARE 58,200.00 09/22/2015 187809 HUTCHINSON WHOLESALE OIL & AIR FILTERS 319.46 09/22/2015 187810 HUTCHINSON, CITY OF Storm Drainage 7/01-7/31'15 8,676.59 09/22/2015 187811 HUTCHINSON, CITY OF REPLENISH ATM 6,000.00 09/22/2015 187812 INDIAN ISLAND WINERY SEPT PURCH 103.20 09/22/2015 187813 INDUSTRIAL HYGIENE CONSULTING, CORP MOLD AND MOISTURE INSPECTION 550.00 09/22/2015 187814 INTEGRATED POWER SERVICES LLC REPAIR OF AERO 2 MOTOR 4,571.66 09/22/2015 187815 INTERSTATE BATTERY SYSTEM MINNEAPOL SHOP PART-31P-MHD 113.95 09/22/2015 187816 JEFF MEEHAN SALES INC. PRINCE COMMISSION ON 2014 ORDERS #112512 1,092.65 09/22/2015 187817 JOHNSON BROTHERS LIQUOR CO. SPET PURCH 22,390.48 09/22/2015 187818 JOHNSON, TONI COACHING FLAG FOOTBALL 30.00 09/22/2015 187819 KAHNKE BROTHERS NURSERY HYDRANGEA, REED GRASS, LILAC,DAYLILY 260.70 09/22/2015 187820 KDUZ KARP RADIO ADVERTISING 367.50 09/22/2015 187821 KENNEDY & GRAVEN CHARTERED NU-TELECOM RENEWAL FRANCHISE 467.50 09/22/2015 187822 KILIAN, ERIC REIMB. FOR TARGET BINS 51.87 09/22/2015 187823 KIRBY A KENNEDY & ASSOCIATES DETACHMENT MATTER FROM HUTCH 3,005.10 09/22/2015 187824 KNIFE RIVER GRANITE, BUCKEYE 4,037.45 09/22/2015 187825 KRANZ LAWN & POWER CARBURATOR 171.33 09/22/2015 187826 L & P SUPPLY CO FUEL FITTING 22.29 09/22/2015 187827 LANDSCAPE CONCEPTS INC TRIMMING & WEEDING ATTHE PUMP STATION-S 730.00 09/22/2015 187828 LE SUEUR COUNTY SHERIFF'S OFFICE INVOICE FOR CIVIL SERVICE 70.00 09/22/2015 187829 LEAGUE OF MN CITIES BEST PRACTICES FOR SAFETY-J.BURMEISTER,P 30.00 09/22/2015 187830 LEAGUE OF MN CITIES-INS TRUST Q4 WORKER COMP PREMIUM 47,770.00 09/22/2015 187831 LLOYD-MCDONALD, REBECCA SHOTO'S CUBS REFUND-TOO YOUNG 50.00 09/22/2015 187832 LOCHER BROTHERS INC SEPT PURCH 11,984.00 09/22/2015 187833 M-R SIGN PRISMATIC, WHTIE COPY WITH BORDER 175.96 09/22/2015 187834 MATHESON TRI-GAS INC ACETYLENE 15.04 09/22/2015 187835 MAYTAG LAUNDRY & CAR WASH CLEANING 391.91 09/22/2015 187836 MCLEOD COUNTY AUDITOR-TREASURER 2ND HALF PROPERTY TAX 2015 3,054.97 09/22/2015 187837 MCLEOD COUNTY AUDITOR-TREASURER 2N D HALF PROFERTY TAX 2,744.03 09/22/2015 187838 MCLEOD COUNTY COURT ADMINISTRATOR BAIL- C.STAYE 300.00 09/22/2015 187839 MCLEOD COUNTY RECORDER DOC#421091 QUITCLAIM DEED 295.86 09/22/2015 187840 MCLEOD COUNTY ZONING ADM CONDITIONAL USE PERMIT 1,384.00 09/22/2015 187841 MEEKER WASHED SAND & GRAVEL 20.14 SAND 1,793.46 09/22/2015 187842 MENARDS HUTCHINSON TEFLON, GALV BUSHING, BATTERIES 454.68 09/22/2015 187843 MESSAGE MEDIA MONTHLY CHARGE SEPT 41.12 09/22/2015 187844 MIDWEST CUSTOM APPAREL T-SHIRTS 2,218.75 09/22/2015 187845 MIDWEST MACHINERY CO JD 6145R TRACTOR 20,800.00 09/22/2015 187846 MINI BIFF RENT REG BLUE 149.94 09/22/2015 187847 MINNESOTA DEPT OF HEALTH WATER SUPPLY SERVICE CONN FEE 7,573.00 09/22/2015 187848 MINNESOTA ICE ARENA MANAGERS ASSN FALL CONDERENCE 205.00 09/22/2015 187849 MINNESOTA LAWYER 1 YEAR SUBSCRIPTION 299.00 09/22/2015 187850 MINNESOTA VALLEY TESTING LAB COLIFORM 1,785.20 09/22/2015 187851 MMC REPLACEMENT OF PTEC UNIT CONTROL BLDG#10 3,462.00 09/22/2015 187852 MN DEPT OF LABOR & INDUSTRY/CODE PRESSURE VESSEL, BOILER 90.00 09/22/2015 187853 MYGUY INC. GRAPE X-CARWASH FUND 341.89 09/22/2015 187854 NALCO CHEMICAL CO. PERMA TREAT 502.20 09/22/2015 187855 NORTH CENTRAL LABORATORIES PHENLPHTHALEIN 247.70 09/22/2015 187856 NORTHERN BUSINESS PRODUCTS TOWEL, LINER, INK CRG 572.04 09/22/2015 187857 NORTHWEST ASPHALT & MAINTENANCE CRACK SEALANT INSTALLED 14,999.36 09/22/2015 187858 NU-TELECOM SEPT INTERNET 76.44 09/22/2015 187859 O'REILLY AUTO PARTS BATT CHARGER 169.04 09/22/2015 187860 OFFICE DEPOT LAMINATOR, SATURN 99.99 09/22/2015 187861 ORTLOFF, JENNIFER COACHING FLAG FOOTBALL 30.00 09/22/2015 187862 PAUSTIS WINE COMPANY SEPT PURCH 32.50 09/22/2015 187863 PAVEMENT RESOURCES PAVEMENT REPAIR-SPRAY INJECTION PATCHING 3,500.00 09/22/2015 187864 PHILIPS HEALTHCARE HS1 BATTERY PACK 114.46 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/22/2015 - 09/22/2015 Check Date -------------------------- 09/22/2015 Check ---------------------- 187865 Vendor Name ----------------------------------------------------------------- PHILLIPS WINE & SPIRITS Description --------------------------------------------------------------------------- SEPT PURCH Amount ----------------------- 23,805.10 09/22/2015 187866 PIONEER MANUFACTURING CO BRITE STRIPE WHITE 1,797.00 09/22/2015 187867 PLUNKETTS PEST CONTROL ANNUAL BILL SEPT -AUG 456.16 09/22/2015 187868 POSITIVE ID INC ID CARD 371.00 09/22/2015 187869 POSTMASTER OCT POSTAGE 1,600.00 09/22/2015 187870 POSTMASTER OCTOBER POSTAGE -SR NEWSLETTER 147.00 09/22/2015 187871 PRINCE CORP REFUND OVERPYMT ON CREEKSIDE ACCT 199.87 09/22/2015 187872 RANDY'S REPAIR SERVICE INSPECTIONS 650.00 09/22/2015 187873 RANGE SYSTEMS DURA -PANEL 1,681.35 09/22/2015 187874 RAPID RENOVATIONS GRIND, PRIME & PAINT FIRE HYDRANTS 3,300.00 09/22/2015 187875 REINER ENTERPRISES INC HAUL 9/2/15 1,577.56 09/22/2015 187876 RIDDELL ALL AMERICAN SPORTS CORP HELMETS 508.82 09/22/2015 187877 RITE INC SUPPORT- 10 HRS 1,067.68 09/22/2015 187878 RUNNING'S SUPPLY OFFICE & TOOLS 646.05 09/22/2015 187879 SAM'S TIRE SERVICE TRUCK SERVICE CALL 370.75 09/22/2015 187880 SCHRAMM, CHRIS COACHING REFUND FOR FLAG FOOTBALL 30.00 09/22/2015 187881 SEBORA, MARC COURT EXPENSES 26.75 09/22/2015 187882 SEPPELT, MILES EDA MEETINGS 54.79 09/22/2015 187883 SHRED -IT USA INC ON SITE SHRED SEPT 95.71 09/22/2015 187884 SORENSEN'S SALES & RENTALS 2060 1/2 LINKS 14.40 09/22/2015 187885 SOUTHERN WINE & SPIRITS OF MN SEPT PURCH 6,092.59 09/22/2015 187886 SPARTAN STAFFING WK ENDING 8/30/15 10,221.89 09/22/2015 187887 STANDARD PRINTING SOLAR/SUNBURST 15.00 09/22/2015 187888 STAPLES ADVANTAGE TOWEL, TISSUE 531.30 09/22/2015 187889 STARRETT, TODD COACHING TACKLE FOOTBALL 50.00 09/22/2015 187890 STATE SUPPLY COMPANY INC WEIMAN SEAL KIT, SLEEVE, GASKET -MAIN POO 535.35 09/22/2015 187891 STEVENS ENGINEERS INC 900-14-208 BURICH ARENA FINAL AFP UPDATE 72.50 09/22/2015 187892 SUBWAY WEST EDA MEETING 191.34 09/22/2015 187893 TELECKY, TERA COACHING TACKLE FOOTBALL 50.00 09/22/2015 187894 THOMSON REUTERS -WEST WEST INFO CHARGES 716.42 09/22/2015 187895 TITAN MACHINERY CHECK LIGHTS 24.00 09/22/2015 187896 TKO WINES SEPT PURCH 825.60 09/22/2015 187897 TRI COUNTY WATER WATER COOLER 106.50 09/22/2015 187898 TWO WAY COMMUNICATIONS INC KENWOODTK-863G LEAF TRACTOR 295.95 09/22/2015 187899 U.S. WATER SERVICES LIQUID POLYMER 4,128.86 09/22/2015 187900 US BANK EQUIPMENT FINANCE XEROX COPIER 8/20-9/20/15 414.21 09/22/2015 187901 USA BLUE BOOK 3'X8' LONG RULE ADHESIVE BACKED 23.99 09/22/2015 187902 VERTECH SOLUTIONS & SERVICES RENTAL AC A4 DISHMACHINE 69.95 09/22/2015 187903 VIKING BEER SEPT PURCH 19,142.06 09/22/2015 187904 VIKING COCA COLA MISC BEVERAGES 1,001.80 09/22/2015 187905 VIKING SIGN & GRAPHICS INC UNSAFE WATER SIGN 15.00 09/22/2015 187906 VINOCOPIA INC SEPT PURCH 8,861.99 09/22/2015 187907 VISUAL EFFECTS SIGN & GRAPHICS CO FULL COLOR DIGITAL PRINTING 181.68 09/22/2015 187908 VIVID IMAGE SUPREME GARDENER'S MIX 700.00 09/22/2015 187909 WASTE MANAGEMENT OF WI -MN SEPT REFUSE SERVICE 1,791.00 09/22/2015 187910 WASTE MANAGEMENT OF WI -MN AUG PICK UP SERVICE 50,786.84 09/22/2015 187911 WELCOME NEIGHBOR NEW RESIDNETVISITS 60.00 09/22/2015 187912 WELLS FARGO MISC CHARGES 1,990.81 09/22/2015 187913 WINE COMPANY,THE SEPT PURCH 597.90 09/22/2015 187914 WINE MERCHANTS INC SEPT PURCH 1,023.50 09/22/2015 187915 WIRTZ BEVERAGE MINNESOTA SEPT PURCH 43,081.27 09/22/2015 187916 WM MUELLER & SONS SIZE A BLACKT 406.00 09/22/2015 187917 ZEP SALES AND SERVICE ZEP 40, METER MIST 487.84 729,928.87 09/16/2015 10:54 AM Check Date Bank Check Number Name Check Register Report For Check Dates 09/18/2015 to For 09/18/2015 Check Gross Physical Check Amount Direct Deposit Page 1 of 1 Status 09/18/2015 1 187727 MNPEA 467.00 467.00 0.00 Open 09/18/2015 1 187728 HART 618.76 618.76 0.00 Open 09/18/2015 1 EFT33 EFTPS 56,753.17 56,753.17 0.00 Cleared 09/18/2015 1 EFT34 AFLAC 131.77 131.77 0.00 Cleared 09/18/2015 1 EFT35 Assurant Employees Benefits 802.05 802.05 0.00 Cleared 09/18/2015 1 EFT36 MN Child Support System 41.87 41.87 0.00 Cleared 09/18/2015 1 EFT37 Minnesota Dept. of Revenue 10,761.12 10,761.12 0.00 Cleared 09/18/2015 1 EFT38 PERA 42,835.76 42,835.76 0.00 Cleared 09/18/2015 1 EFT39 TASC-Flex 1,855.40 1,855.40 0.00 Cleared 09/18/2015 1 EFT40 TASC-HSA 11,687.08 11,687.08 0.00 Cleared 09/18/2015 1 EFT41 ICMA 2,230.00 2,230.00 0.00 Cleared 09/18/2015 1 EFT42 ING 1,050.00 1,050.00 0.00 Cleared 09/18/2015 1 EFT43 MNDCP 250.00 250.00 0.00 Cleared Totals: Number of Checks: 013 129,483.98 129,483.98 0.00 Total Physical Checks: 2 Total Check Stubs: 11 HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Ordinance No. 15-747 - Franchise Agreement with Nu -Telecom Department: Administration/Legal LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As was discussed at the last Council meeting, 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. Mr. Vose will be present at the public hearing on this franchise. As was noted previously, HCVN received a copy of the proposed franchise agreement and a representative may be present at the public hearing to provide comments. BOARD ACTION REQUESTED: Approve second reading and adoption of Ordinance No. 15-747. 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. § 23 8.02, 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 -Waw. 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 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 et seq. ("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: 1. 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 3. 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: IM CITY OF HUTCHINSON Its: City Administrator Its: 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 c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Request for Out-of-State Travel Department: EDA LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: I am writing to request City Council approval for out-of-state travel to attend the "Site Selector's Guild Fall Forum" to be held in Philadelphia October 26th - 28th. The Southwest Initiative Foundation has very graciously provided us with a free ticket (ordinarily they cost $1,500) to attend the event so all we need to cover is the travel expenses. The Site Selectors Guild Fall Forum is a very exclusive event, as only 150 tickets are available nationwide. To the best of my knowledge, only three people from Minnesota are attending. As a result, this is a very good opportunity to network and make connections with corporate site selectors from across the nation. Travel would be covered by the existing EDA Budget, so there would be no financial impact to the city. Please note that this would be my second out-of-state travel this year, which would require an exception to the city's travel policy. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 1,000.00 Funding Source: Existing EDA Budget FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Resolution Amending Position Classification Table & Proposed Hiring Process Department: PW/Eng LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Kent E., Dolf M., John O. Agenda Item Type: Presenter: Kent E., Dolf M., John O. Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As previously discussed during the City Council's 2016 Budget Workshop, this Resolution addresses the elimination of the Natural Resource Coordinator position (Pay Grade 5) and establishes an Arborist position (Pay Grade 4). This pay grade modification is recommended following Mike Bahe's, former Natural Resource Coordinator, resignation and will establish an Arborist position instead of the Natural Resource Coordinator position to better address the City's forestry related needs. The overall intentions of these actions is to more effectively address forestry operations while providing adequate park maintenance staffing. The near-term plan would be to fill the Arborist position in Public Works and to fill the Park Maintenance position by December 1, 2015. The approach to move forestry operations to Public Works and add a Park Maintenance operator was developed earlier this year and have been included within the proposed 2016 General Fund Budget (see attached information. There will be 2015 budget savings of approximately $16,000 due to the wages of the Natural Resource Coordinator not being paid during the current September to November time frame, along with less spending on forestry-related seasonal wages. There are many benefits of moving toward this model, including: - Long-term savings on position - Adequate staffing for forestry programs - Improved park maintenance - limproved coordination with Public Works staff - Forestry equipment being centrally located - Forestry accounting/budgeting within one City department - Seasonal wages reduction - Allowance for more pruning to be done in a timely manner - Park Maintenance operator assigned to snow route resulting in reduced dependence on Creekside & Engineering staff - Administrative support for Arborist postion - 8-person "tree team" of Parks & Public Works employees - City Forestry expenditures at or below historical averages BOARD ACTION REQUESTED: Approve Resolution and Authorize Proposed Position Hiring Process Fiscal Impact: $ 0.00 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: C September 15, 2015 To: Kent Exner, DPW/City Engineer Dolf Moon, Director PRCE From: John Olson, Public Works Manager Subject: City Forestry Operations City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 Following the news that Mike Bahe would be resigning at the end of August, we came up with a recommendation to address both Forestry operations and Park Maintenance operations. The recommendation was a modification of what we had proposed earlier in the year. hl May 2015, after several meetings held over the course of about a year to address issues relating to Forestry operations, we came up with a recommendation to implement changes for the 2016 budget. When we met with the City Administrator, we learned our proposal would be included in the initial 2016 budget. Components of that recommendation included: 1. Transfer Natural Resource Coordinator position from PRCE to Public Works. 2. Add full-time, regular Park Maintenance Equipment Operator. 3. Establish "Tree Team" members from both PRCE and Public Works. 4. Move wages for seasonal employees from PRCE to Public Works and reduce seasonal wages by approximately 25%. 5. Continue review of necessary forestry -related equipment to see if there is any way to reduce the number of units while maintaining interdepartmental utilization. This original request for staffing changes involved transferring the Natural Resource Specialist to the Public Works Department and adding a Parks Maintenance Equipment Operator position. In addition, PT/S wages for forestry operations would move to Public Works, and be decreased. Contractual Repair & Maintenance would also decrease as part of the transfer. Following notification that Mike Babe would be resigning, we met again and modified the original recommendation to include: 1. Eliminate the Natural Resource Coordinator position (Grade 5) and add an Arborist (Grade 4) in Public Works. 2. Add a full-time, regular Park Maintenance Equipment Operator. 3. Establish "Tree Team" members from both PRCE and Public Works. 4. Move wages for seasonal employees from PRCE to Public Works and reduce seasonal wages by approximately 25%. 5. Continue review of necessary forestry -related equipment to see if there is any way to reduce the number of units while maintaining interdepartmental utilization. Proposed Budget Changes (included in 2016 budget): Description PRCE Pub Wks Net Natural Resource Specialist Grade 5 @ 102.2% Market Rate: ($58,677) $ 58,677 $ 0 Fringe benefits and Workers Comp ($ 9,289) $ 9,289 Benefits: (health, dental, LTD) ($ 1,199) $ 1,199 $ 0 Parks Maintenance Equipment Operator Grade 3 @ 85% Market Rate: $ 41,857 $ 0 $ 41,857 Fringe benefits and Workers Comp $ 7,890 $ 0 $ 7,890 Benefits: (health, dental, LTD) $ 18,761 $ 0 $ 18,761 Contractual repair & maintenance $ 0 ($10,000) ($10,000) Seasonal Wages:$2( 8,000) $ 20,500$( 7,5001 Net Change: ($28,657) $ 79,665 $51,008 Proposed 2016 Budget Changes (following resignation of Nat Res Spec): Description PRCE Pub Wks Net Arborist Grade 4 @ 85% Market Rate: $ 0 $ 45,772 $ 45,772 Fringe benefits and Workers Comp (est.) $ 0 $ 8,590 $ 8,590 Benefits: (health, dental, LTD) $ 0 $ 18,761 $ 18,761 Parks Maintenance Equipment Operator Grade 3 @ 85% Market Rate: $ 41,857 $ 0 $ 41,857 Fringe benefits and Workers Comp $ 7,890 $ 0 $ 7,890 Benefits: (health, dental, LTD) $ 18,761 $ 0 $ 18,761 Contractual repair & maintenance $ 0 ($10,000) ($10,000) Seasonal Wages:$2( 8,000) $ 20,500$( 7,500) Net Change: ($40,508) $ 83,623 $43,115 Remainder of 2015: Description PRCE Pub Wks Arborist (assumed to be hired 12/01/15) Grade 4 @ 85% Market Rate: $ 0 $ 3,814 Fringe benefits and Workers Comp (est.) $ 0 $ 716 Benefits: (health, dental, LTD) $ 0 $ 1,563 Parks Maintenance Equipment Operator (assumed to be hired 12/01/15) Grade 3 @ 85% Market Rate: $ 3,488 $ 0 Fringe benefits and Workers Comp $ 658 $ 0 Benefits: (health, dental, LTD) $ 1,563 $ 0 Net Change: $ 5,709 $ 6,093 Savings: 1) Natural Resource Specialist 4.0 months $23,053 2) PT -S staffing (budget = $28K, YTD = $18K; additional est. _ $5K) $ 5,000 Total $28,053 Net savin s for 2015 $16,251 Net $ 3,814 $ 716 $ 1,563 $ 3,488 $ 658 $ 1,563 $11,802 Benefits of an Arborist position in Public Works and adding a Park Maintenance Operator position would include: 1) The Arborist position would be moved to a Grade 4 resulting in long-term savings for the position. 2) The Arborist position would ensure necessary staff resources for forestry programs to operate at a level that meets the community's high expectations. 3) Coordination with Public Works staff would allow for efficiencies, reducing the need to contract the number of removals currently contracted. There would be the opportunity to catch up on items that haven't been addressed since 2011. 4) All forestry -related equipment would be centrally located, improving management of equipment resources, including safety training and inspections of equipment. 5) All forestry -related accounting would be done through the Public Works budget, which will make management of revenues, expenses and forestry -related contracts easier. 6) Seasonal wages, even at the reduced amount, would be adequate to manage forestry -related work. 7) Maintenance for parks would be enhanced by the Park Maintenance Operator. 8) The Arborist, along with Public Works and seasonal staff could address the need for additional pruning by working at times other than the winter, dormant period. Pruning for sight -lines, for traffic safety, in alleys and parking lots, etc. could be done during the summer when seasonal staff is available. 9) The Park Maintenance Operator position would be assigned a snow removal route, which, when combined with the recently hired equipment operator in Public Works, would eliminate any dependence of snow removal operations on Creekside operators. The Arborist would be available as a backup operator and during normal business hours would be available address any specific snow removal needs, which are currently not done in a timely manner or are done after a call -out (at overtime rates) of existing maintenance staff. 10) Administrative support would be from the PW Secretary. This would allow for implementation of more geographically -based work management systems. 11) A "Tree Team' consisting of the Arborist, 3 PRCE employees and 4 Pub Wks employees would result in 8 professional operators trained to respond to events involving significant damage to trees, such as windstorms and tornadoes. One of tree team members would be a mechanic and there would also be a mechanic available in Public Works, to ensure timely, proper maintenance of critical forestry equipment during large events. 12) Spending levels would return to levels that were common prior to the Forester's retirement. 2004-2013 Forestry Expenditures Graph: $300,000 $271,000 $250,000 $200,000 $ $150,000 $100,000 $50,000 $0 2005 L Forestry Expenditures — 2005 to 2014 $230,009- 2016 Estimate: $128,623 $148, 3* $110,000 $80,000 $90,000** 2006 2007 2008 2009 2010 2011 2012 2013 2014 * 2010 had $25,000 grant removed from total **2013 had $17,000 grant removed from total 2016 Budget: Arborist wages: $73,123 Seasonal wages: $20,500 Contract R/M: $30,000 Blvd trees: $ 5,000 Diversification program: $25,000 Total expenditures $153,623 Less Transfer:$2( 5,000) Net expenditures: $128,623 RESOLUTION NO. 14407 14467 CITY OF HUTCHINSON 2015 COMPENSATION PLAN RESOLUTION ADOPTING POSITION CLASSIFICATION ASSIGNMENT TABLE EFFECTIVE fin noru 24 SEPTEMBER 22, 2015 WHEREAS, the City Council has considered the existing classification of positions for the City of Hutchinson and the current economic conditions, BE IT RESOLVED, that a Position Classification Plan is hereby adopted. All positions covered by this Resolution shall be grouped in grades having a definite range of difficulty and responsibility. For each position there shall be a title; and there shall be shown examples of work which are illustrative of duties of positions, as well as requirements as to knowledge, abilities and skills necessary for performance of the work; and a statement of experience and training desirable for recruitment into a position. A. Plan Objectives • To establish and maintain a compensation plan that enables the City of Hutchinson to be highly competitive within our defined market. • To lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve. • To ensure, subject to the financial condition of the City, that employees receive fair and equitable compensation in relation to their individual contributions to the City's success. • To follow the principles of pay equity in establishing and maintaining pay relationships among positions based on the categories of the Stanton Point Factor System. • To ensure program flexibility necessary to meet changing economic, competitive, technological, and regulatory conditions encountered by the City. • To balance compensation and benefit needs with available resources. B. Plan Structure The compensation plan specifies salary range minimums and maximums. The intent of each salary grade is to fall within 80% and 115% of identified market for positions within the grade. (See Attachment B) Each numbered pay grade in the basic table consists of the following: 1. Salary Minimum: The lowest amount paid to an employee in a specific job grade or class. No employee will receive less than the minimum rate. (80% of market) 2. Salary Mid -point: The middle of the salary range. (97.5% of market) 3. Market Rate: The market rate represents the competitive rate for an employee who is fully functional within their current position. (100%) 4. Salary Maximum: The difference between the salary market rate and the salary maximum represents merit pay for employee performance above that expected of a particular job. No employee will be paid above the maximum of the salary range. (115% of market). C. Open Salary Range The City shall adopt an Open Salary Range compensation plan that will allow for maximum flexibility and in -range salary administration since there are not defined or pre -calculated "steps". Employee movement within the pay grade range to which their position is assigned is based solely on performance. The open salary range concept rewards good and exceptional performers and advances employees to the market rate more quickly. (See item H. [4]) D. Position Classification Assignment The assignment table shall assign all of the various positions in the Position Classification Plan to the appropriate pay grade (See Attachment A). The City Administrator and Human Resources Director may jointly approve a reclassification of a position provided the reclassification does not exceed two grades upward or two grades downward from the current pay grade. To initiate consideration of this type of reclassification, the department director shall submit in writing the specific reasons for the reclassification. Any changes to the classification of a position of more than two pay grades shall be approved by the City Council. Requests for reclassification are normally brought before the Council each January, and at other times of the year, as needed. To initiate such a reclassification request, the department director shall submit a written request for consideration to the City Administrator and the Human Resources Director. The request shall include a description of significant or considerable changes to the position that warrant a reclassification. The City Administrator and Human Resources Director will determine if the reclassification request is to be forwarded to the City Council for consideration. E. Allocation Of New Positions When a new position is created for which no appropriate description exists or when the duties of an existing position are sufficiently changed so that no appropriate description exists, the City Council, after recommendation of the Human Resources Director, shall cause an appropriate job description -specification to be written for said position. F. Pay Grades 1. Exempt Employees Each position is assigned a pay grade. The normal beginning rate for a new employee will be the minimum rate. After satisfactory completion of twelve months probation, an increase may be granted as warranted by the annual performance appraisal. Thereafter, consideration for increases may be given annually on a standardized date established by the City. The City Administrator reserves the discretion to adjust individual rates within the assigned pay grades as required. The Council will determine any pay increase for the City Administrator. 2. Non -Exempt Employees Each position is assigned a pay grade. The normal beginning rate for a new employee will be the minimum rate. After satisfactory completion of twelve months probation, an increase may be granted as warranted by the annual performance appraisal. Thereafter, consideration for increases may be given annually on a standardized date established by the City. The City Administrator reserves the discretion to adjust individual rates within the assigned pay grades as required. 3. Police Patrol Positions The position of full time police patrol officer is assigned to Grade 5 on the pay plan. Temporary assignments will be made from these positions as needed for the investigative function for the department. With said assignment, there will be an additional $200.00 per month premium on top of the employee's patrol officer pay grid assignment. 4. Part -Time Liquor Store Clerk, Part -Time Custodial and Part -Time Compost Site Monitor Positions The part-time positions of liquor store clerk, custodian, and compost site monitor have been placed in separate pay plans that recognize the specific industry labor markets in which they work. The City Administrator and the Human Resources Director, as directed by the Administrator, shall maintain the discretion to hire at any point within the range based on the qualifications, experience, market conditions or other relevant factors, to secure the best candidate for the position. G. Apprenticeship Program The City has implemented an apprenticeship program for those Water and Wastewater Department positions subject to identified employee development including required licensures/demonstrated skills, experience /longevity, and maturation in a position that directly affect the department's ability to deliver municipal services. H. Performance Evaluations For all regular full time and part time employees, a performance appraisal or evaluation will be made on, at minimum, an annual basis and per city policy No. 3.08. An evaluation made by the employee's supervisor shall be submitted in writing to the employee and to the City Administrator/Human Resources Director. All evaluations will be forwarded to Human Resources for filing in the employee files. 2. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, and quality of work, personal work traits, compliance with established City or departmental rules and regulations or any other criteria that is indicative of performance. 3. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: Outstanding - Performance is exceptional in all areas and is recognizable as being far superior to others. Exceeds Job Requirements - Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. Meets Job Requirements - Competent and dependable level of performance. Meets performance standards of the job. Needs Improvement - Performance is deficient in certain area(s). Improvement is necessary. Unsatisfactory - Results are generally unacceptable and require immediate improvement. 4. Results The results of the employee's evaluation will normally have the following effect on his/her salary per the following Merit Increase Guide: Merit Increase Guide for Open Salary Ranges Achievement Level *Compa-ratio refers to the location of the individual in the range relative to the market. Merit/performance increases for eligible regular full time and regular part time employees will be effective on the first date of the first full pay period commencing on or after March 1, except for newly hired employees. For 2015, the effective date is Sunday, March 1, 2015. New employees are eligible for consideration for a merit/performance increase after one year of continuous employment, generally, the first year anniversary date. In subsequent years, eligible employees will be eligible for consideration for the merit/performance increase as specified previously and at the discretion of the department director. Application of merit/performance increases for employees appointed to the position of full time police patrol officer is subject to collective bargaining. 5. Market Conditions Notwithstanding any language to the contrary, the City Council retains the right to deviate from the pay plan when, in the sole judgment of the City Council, market conditions or other circumstances dictate such a decision. The City Administrator and Human Resources Director maintain final approval responsibility for salary increases. I. Annual Market Adjustment Consideration As part of the budget preparation process, an annual market adjustment, expressed as a percentage increase, is recommended to the City Council for review and consideration for approval. 0 to 1.1 to 2.0 to 2.76 to 3.51 to 4.26 to Compa-Ratio* 1.0 1.99 2.75 3.5 4.25 5.0 80.0-84.9 0% 0% 4% 5% 6% 7% 85.0-89.9 0% 0% 4% 5% 6% 7% 90.0-94.9 0% 0% 3% 4% 5% 6% 95.0-99.9 0% 0% 2% 3% 4% 5% 100.0 — 104.9 0% 0% 0% 2% 3% 4% 105.0 — 109.9 0% 0% 0% 1 % 2% 3% 110.0 — 115.0 0% 0% 0% 0% 2% 3% *Compa-ratio refers to the location of the individual in the range relative to the market. Merit/performance increases for eligible regular full time and regular part time employees will be effective on the first date of the first full pay period commencing on or after March 1, except for newly hired employees. For 2015, the effective date is Sunday, March 1, 2015. New employees are eligible for consideration for a merit/performance increase after one year of continuous employment, generally, the first year anniversary date. In subsequent years, eligible employees will be eligible for consideration for the merit/performance increase as specified previously and at the discretion of the department director. Application of merit/performance increases for employees appointed to the position of full time police patrol officer is subject to collective bargaining. 5. Market Conditions Notwithstanding any language to the contrary, the City Council retains the right to deviate from the pay plan when, in the sole judgment of the City Council, market conditions or other circumstances dictate such a decision. The City Administrator and Human Resources Director maintain final approval responsibility for salary increases. I. Annual Market Adjustment Consideration As part of the budget preparation process, an annual market adjustment, expressed as a percentage increase, is recommended to the City Council for review and consideration for approval. In determining a recommendation for an annual market adjustment, at least the following information shall be considered: 1. U.S., Midwest, and Minneapolis/St. Paul consumer price index changes (CPIU & CPIW) 2. Social Security calculation of cost of living increase 3. Unemployment rate 4. Employee turnover rate 5. Area wage survey 6. Legislative growth factor constraints An approved market adjustment is applied only to the City Pay Grid, and no individual market increases will be granted in 2015. If an adjustment to the pay grid results in a regular employee's wages being below the minimum rate of the grid, the wages for the affected employee(s) will be increased to the newly established minimum rate effective January 1St J. Modification of the Plan The City Council reserves the right to modify any or all of the components or to vary from any of the components of the Compensation Plan at its discretion and at any time. K. Review of the Plan As often as necessary to assure continued correct classification, the Position Classification Plan shall be reviewed by the Human Resources Director and necessary adjustments recommended to the City Council. It is recommended that a comprehensive review be completed at least every three years. L. Filing of the Plan Upon adoption of the Resolution, a copy of the Position Classification Plan approved by the City Council shall be placed on file with the City Administrator. The plan so filed and subsequently adjusted by the Council shall be the Position Classification Plan of the City. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON That the following table is hereby adopted as the City Position Classification Assignment Table, to be reviewed from time to time, assigning the various positions in the Position Classification Plan to the appropriate pay grades in the table. Pay grades for regular part time (PT) positions are assigned according to job responsibilities at the discretion of the City Administrator and Human Resources Director. City of Hutchinson Position Classification Table March September 2015 Grade Position Title Grade Position Title 1 PT Office Specialist (Event Center) 5 Executive Assistant/ Paralegal PT Compost Scale Operator GIS Specialist PT Custodian (Fire Station/Library/Event Center) Information Technology Specialist PT PRCE Receptionist Parks Maintenance Specialist Police Officer (FT/PT) 2 Permit Technician Maintenance Lead Operator/Supervisor PT Human Resources Administrative Technician Sales & Marketing Specialist PT Liquor Sales Clerk Senior Engineering Specialist PT Licensing Clerk Server/Network Technician PT Meter Technician Re6e1,FGe6 SpeGiEer+ PT Senior Office Specialist (PRCE & W/WW) PT Recreation Facility Maintenance Technician 6 Recreation Services Coordinator 3 Administrative Secretary (Engineering) 7 Operations & Maintenance Supervisor Administrative Secretary (Public Works) Project/Environmental/Regulatory Manager Compost Equipment Operator Senior Accountant General Maintenance Worker (City Center/Event Center) General Maintenance Worker (HATS) 8 Building Official Heavy Equipment Operator Motor Vehicle Deputy Registrar Hospital Security Guard (FT/PT) Parks Supervisor Police Records Specialist Police Sergeant Police Supplemental Services Specialist Recreation Facilities Operations Manager Parks Maintenance Equipment Operator Water Supervisor Water Maintenance Technician Wastewater Supervisor Senior Liquor Sales Clerk Wastewater Services Operator 10 Police Lieutenant Senior Accounting Specialist Fire Chief Utility Billing Specialist (FT/PT) 11 Public Works Manager 4 Accountant Arborist 12 Compost Manager Compost Operations Specialist Economic Development Director Emergency Dispatcher (FT/PT) Finance Director Engineering Specialist Human Resources Director Equipment Mechanic IT Director Lab Technician/WW Operator Liquor Sales Manager Lead Compost Equipment Operator Planning Director Payroll/Benefits Specialist Planning and Building Specialist 14 Police Chief/Emergency Management Director Police Investigations Specialist PRCE Director Plant Equipment Mechanic II Senior Public Works Maintenance Specialist 16 City Attorney Water Plant Operator Public Works Director/City Engineer 5 Event Center Coordinator 19 City Administrator Attachment A 115% 5 $64.131 1 $61.796 5 $59.461 $57.112 i $54.783 $52.441 E $50.099 $47.764 $45.408 i $43.073 $40.731 4 $38.389 $36.053 i $33.724 > $31.362 i $29.047 i $26.692 ' $24.356 i $22.014 $19.22 $14.56 $13.66 City of Hutchinson 2015 Compensation Plan - Pay (3rid (2% increase) Mid -Pt. Mid -Pt. Market Market Grade 800/0 800/0 97.50,/o 97.5% 10001/0 1000/0 115% 19 $7,733 $44.613 $9,424 $54.372 $9,666 $55.766 $11,111 18 $7,451 $42.989 $9,081 $52.392 $9,314 $53.736 $10,71 17 $7,170 $41.364 $8,738 $50.412 $8,962 $51.705 $10,301 16 $6,886 $39.730 $8,393 $48.421 $8,608 $49.662 $9,89G 15 $6,606 $38.110 $8,051 $46.447 $8,257 $47.637 $9,49E 14 $6,323 $36.481 $7,706 $44.461 $7,904 $45.601 $9, 09C 13 $6,041 $34.851 $7,362 $42.475 $7,551 $43.564 $8,684 12 $5,759 $33.227 $7,019 $40.495 $7,199 $41.533 8,27C - $8,27C- 11 11 $5,475 $31.588 $6,673 $38.498 $6,844 $39.485 $7,871 10 $5,194 $29.964 $6,330 $36.518 $6,492 $37.455 $7,46E 9 $4,911 $28.334 $5,986 $34.533 $6,139 $35.418 $7,06C 8 $4,629 $26.705 $5,641 $32.547 $5,786 $33.381 $6,65-z 7 $4,347 $25.080 $5,298 $30.567 $5,434 $31.351 $6,24G 6 $4,066 66 $23.460 $4,956 $28.592 $5,083 $29.326 $5,84E 5 $3,782 $21.817 $4,609 $26.590 $4,727 $27.272 $5, 43E 4 $3,502 $20.207 $4,269 $24.627 $4,378 $25.258 $5, 03!� 3 $3,218 $18.568 $3,922 $22.630 $4,023 $23.210 $4,62E 2 $2,937 $16.943 $3,579 $20.650 $3,671 $21.179 $4, 22fe 1 $2,654 $15.314 $3,235 $18.664 $3,318 $19.143 $3,81 E PT Custodian $13.37 $16.29 $16.71 PT Liquor Store Clerk $10.13 $12.34 $12.66 PT Compost Monitor $9.50 $11-58 $11.88 14395) Adopted by the City Council this 24th day of Marchi , 2015. (This replaces Resolution No. I_rWr=�z Matthew Jaunich, City Administrator Gary Forcier, Mayor Attachment B HUTCHINSON CITY COUNCIL r��f Request for Board Action Agenda Item: Setting the Date for the Annual City Recognition Event/Set Public Meeting Department: Administration LICENSE SECTION Meeting Date: 9/22/2015 Application Complete NIA Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency NIA Attachments: No BACKGROUND/FXPLA NA TION OF A GENDA ITEM.- TEM:On Onan annual basis, the City conducts an event to recognize the employees and volunteers who serve the City of Hutchinson. This event is normally held in the fall of the year at the Hutchinson Event Center. Invited attendees and an adult guest are provided with a complimentary meal. The format for the 2015 event is proposed as follows: 5:30 p.m. Check-in and social time 0:30 p.m. Dinner 7:15 p.m. Short presentation/program by City Administrator Jaunich to acknowledge and to thank current employees, recent retirees, and the volunteer board and commission members, and to highlight any notable departmental or employee achievements throughout the past year. Dates that are available for the event include the following: Thursday, October 29, 2015 Thursday, November 5, 2015 It is requested that the Council set a date for the event, set it as a public meeting for the Council, and approve the proposed event format. BOARD ACTION REQUESTED: Consideration of setting the date for the annual City Recognition Event and setting the event as a public meeting from 5:30 to 9:00 p.m. at the Hutchinson Event Center for the Council members to attend. Fiscal Impact: $ 2,500.00 Funding Source: City Council Budget FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $000 Funding Source. City of Hutchinson - Residential Leaf Vacuum Service 2015 SEASON PRESS RELEASE Residential service is scheduled to begin on Tuesday, October 13 and will end on Monday, November 23 or when snow arrives. Please DO rake leaves into neat rows along the edge of the curb, leaving plenty of room at street corners. Residential services are provided by tractor drawn vacuums, so it's necessary to leave room for cornering. Please DO NOT rake leaves into the street until the day of your garbage service. LEAVES ONLY — To make sure the equipment stays running, please don't rake anything other than leaves onto street curbs. Leaves will be vacuumed from your street the day after your recycling & garbage is picked up. For more information: Visit the City's website- httip://www. ci. hutch inson. mn. us/leafvacuumserv. html Contact Public Works at (320) 234-4219, or email informations-ci. hutchinson. mn. us. HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: August 2015 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 9/22/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: For Council review, attached are the August Financial Reports for the general fund and enterprise funds. Also attached is the August Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: 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: REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 'NOTE: Available Balance 1 Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE % BDGT ACCOUNT DESCRIPTION 0813112015 0813112015 BUDGET BALANCE USED Fund 100 - General Fund TAXES OTHER TAXES LICENSES & PERMITS INTERGOVERNMENTAL REVENUE CHARGES FOR SERVICES MISCELLANEOUS REVENUES TRANSFERS -IN FINES & FORFEITURES CAPITAL CONTRIBUTIONS TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES TRANSFERS -OUT CAPITAL OUTLAY TOTAL Expenditures Fund 100 - General Fund: TOTALREVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES 0.00 59,273.93 16,120.85 18,772.32 80,805.41 39,179.68 0.00 3,199.00 0.00 2,316,430.84 153,801.95 216,078.75 909,606.93 1,011,354.02 362,988.69 731,623.50 29,651.15 0.00 217,351.19 5,731,535.83 644,262.72 4,623,929.84 49,753.40 429,491.28 194, 677.19 1,453,336.76 11,609.83 180,195.02 0.00 48,425.00 2,300.50 9,946.50 902,603.64 6,745,324.40 4,491,446.00 257,500.00 267,900.00 1,225,766.00 2,031,070.00 666,225.00 2,160,537.00 55,000.00 25,000.00 11,180,444.00 7,491,996.00 782,636.00 2,310,846.00 498,116.00 96,850.00 0.00 EVIOUS YEAR YTD BALANCE 2014 % BDGT 08131/2014 AMENDED BUDGET USED 2,175,015.16 51.57 2,295,387.29 4,491,446.00 103,698.05 59.73 100,643.68 245,000.00 51,821.25 80.66 184,323.21 240,000.00 316,159.07 74.21 847,933.06 1,094,270.00 1,019,715.98 49.79 1,032,728.57 2,045,923.00 303,236.31 54.48 337,511.96 646,500.00 1,428,913.50 33.86 713,758.00 2,066,653.00 25,348.85 53.91 39,748.46 50,000.00 25,000.00 0.00 0.00 0.00 5,448,908.17 2,868,066.16 353,144.72 857,509.24 317,920.98 48,425.00 (9,946.50) 11,180,444.00 4,435,119.60 217,351.19 5,731,535.83 11,180,444.00 5,448,908.17 902,603.64 6,745,324.40 11,180,444.00 4,435,119.60 (685,252.45) (1,013,788.57) 0.00 1,013,788.57 51.26 61.72 54.88 62.89 36.18 50.00 100.00 60.33 5, 552, 034.23 10, 879, 792.00 4,490,793.69 7,009,709.00 496,511.98 781,887.00 1,496,998.35 2,262,536.00 200,870.05 533,068.00 47,015.00 96,000.00 2,091.52 0.00 6, 734, 280.59 10, 683, 200.00 51.26 5,552,034.23 10,879,792.00 60.33 6,734,280.59 10,683,200.00 100.00 (1,182,246.36) 196,592.00 51.11 41.08 76.80 77.49 50.48 52.21 34.54 79.50 0.00 51.03 64.07 63.50 66.16 37.68 48.97 100.00 63.04 51.03 63.04 601.37 ACCOUNT DESCRIPTION REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 'NOTE: Available Balance 1 Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE 0813112015 0813112015 BUDGET BALANCE % BDGT USED YTD BALANCE 0813112014 Fund 226 - HATS Operation 467.86 94,030.00 50.00 67.51 779,700.00 INTERGOVERNMENTAL REVENUE 6,208.33 87,804.98 151,500.00 63,695.02 57.96 85,590.00 CHARGES FOR SERVICES 6,736.52 172,798.80 546,000.00 373,201.20 31.65 376,963.85 MISCELLANEOUS REVENUES 0.00 6,157.80 3,250.00 (2,907.80) 189.47 16,843.06 TRANSFERS-IN 0.00 48,425.00 96,850.00 48,425.00 50.00 47,015.00 TOTAL Revenues 12,944.85 315,186.58 797,600.00 482,413.42 39.52 526,411.91 WAGES & BENEFITS 5,243.74 41,877.92 57,898.00 16,020.08 72.33 48,978.93 SUPPLIES 16,279.10 174,090.27 546,925.00 372,834.73 31.83 353,844.46 SERVICES & CHARGES 8,344.00 94,682.26 159,700.00 65,017.74 59.29 93,771.99 MISCELLANEOUS EXPENSES 0.00 35.00 6,550.00 6,515.00 0.53 0.00 CAPITAL OUTLAY 0.00 0.00 26,527.00 26,527.00 0.00 0.00 TOTAL Expenditures 29,866.84 310,685.45 797,600.00 486,914.55 38.95 496,595.38 Fund 226 - HATS Operation: TOTAL REVENUES 12,944.85 315,186.58 797,600.00 482,413.42 39.52 526,411.91 TOTAL EXPENDITURES 29,866.84 310,685.45 797,600.00 486,914.55 38.95 496,595.38 NET OF REVENUES & EXPENDITURES (16,921.99) 4,501.13 0.00 (4,501.13) 100.00 29,816.53 EVIOUS YEAR 2014 % BDGT AMENDED BUDGET USED 147,070.00 58.20 535,000.00 70.46 3,600.00 467.86 94,030.00 50.00 67.51 779,700.00 52,235.00 93.77 536,825.00 65.91 147,500.00 63.57 5,100.00 0.00 37,960.00 0.00 779,620.00 63.70 779,700.00 67.51 779,620.00 63.70 80.00 37,270.66 REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 'NOTE: Available Balance 1 Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE % BDGT ACCOUNT DESCRIPTION 0813112015 0813112015 BUDGET BALANCE USED Fund 601 - Water Fund CHARGES FOR SERVICES MISCELLANEOUS REVENUES LOCAL SALES TAX INVESTMENT EARNINGS SALES TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES TRANSFERS -OUT CAPITAL OUTLAY DEPRECIATION EXPENSE DEBT SERVICE TOTAL Expenditures Fund 601 -Water Fund: TOTALREVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES EVIOUS YEAR YTD BALANCE 2014 % BDGT 08/3112014 AMENDED BUDGET USED 2,030.44 41,253.59 50,000.00 8,746.41 82.51 40,658.46 4,983.28 41,018.71 96,153.00 55,134.29 42.66 9,377.14 42,910.00 327,544.11 725,000.00 397,455.89 45.18 330,953.44 0.00 167.58 0.00 (167.58) 100.00 0.00 254,949.75 1,570,295.54 2,288,000.00 717,704.46 68.63 1,503,251.35 304,873.47 1,980,279.53 3,159,153.00 1,178,873.47 62.68 1,884,240.39 33,131.16 261,420.12 500,766.00 239,345.88 52.20 260,649.51 26,957.73 92,318.52 123,250.00 30,931.48 74.90 62,675.87 37,084.76 254,116.26 457,724.00 203,607.74 55.52 276,656.87 266.50 10,353.19 16,700.00 6,346.81 62.00 9,220.22 0.00 0.00 43,145.00 43,145.00 0.00 0.00 0.00 570,012.96 543,750.00 (26,262.96) 104.83 0.00 0.00 0.00 1,104,000.00 1,104,000.00 0.00 0.00 0.00 281,026.73 1,312,414.00 1,031,387.27 21.41 1,043,720.15 97,440.15 1,469,247.78 4,101,749.00 2,632,501.22 35.82 1,652,922.62 304,873.47 1,980,279.53 3,159,153.00 1,178,873.47 62.68 1,884,240.39 97,440.15 1,469,247.78 4,101,749.00 2,632,501.22 35.82 1,652,922.62 207,433.32 511,031.75 (942,596.00) (1,453,627.75) 54.22 231,317.77 42,500.00 96,192.00 650,000.00 0.00 2,369,500.00 3,158,192.00 427,480.00 124,250.00 409,618.00 22,000.00 43,145.00 250,000.00 1,105,500.00 1,229,916.00 3,611,909.00 3,158,192.00 3,611,909.00 (453,717.00) 95.67 9.75 50.92 0.00 63.44 59.66 60.97 50.44 67.54 41.91 0.00 0.00 0.00 84.86 45.76 59.66 45.76 50.98 REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 ACCOUNT DESCRIPTION "NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED 0813112015 0813112015 BUDGET AVAILABLE BALANCE % BDGT USED YTD BALANCE 0813112014 2014 AMENDED BUDGET EVIOUS YEAR % BDGT USED Fund 602 - Sewer Fund LICENSES & PERMITS 0.00 6,100.00 7,000.00 900.00 87.14 6,700.00 7,000.00 95.71 CHARGES FOR SERVICES 0.00 3,584.08 4,000.00 415.92 89.60 5,119.00 7,000.00 73.13 MISCELLANEOUS REVENUES 1,651.51 32,389.71 113,153.00 80,763.29 28.62 31,717.95 99,192.00 31.98 LOCAL SALES TAX 42,910.00 327,544.12 725,000.00 397,455.88 45.18 331,299.05 650,000.00 50.97 SALES 275,218.37 2,205,732.54 3,191,000.00 985,267.46 69.12 2,155,967.30 3,117,000.00 69.17 TOTAL Revenues 319,779.88 2,575,350.45 4,040,153.00 1,464,802.55 63.74 2,530,803.30 3,880,192.00 65.22 WAGES & BENEFITS 46,487.67 352,474.75 679,626.00 327,151.25 51.86 396,601.43 608,184.00 65.21 SUPPLIES 7,235.59 117,991.41 249,300.00 131,308.59 47.33 130,930.11 249,810.00 52.41 SERVICES & CHARGES 50,209.42 423,083.07 762,511.00 339,427.93 55.49 457,771.94 743,765.00 61.55 MISCELLANEOUS EXPENSES 301.52 19,092.50 24,000.00 4,907.50 79.55 24,186.04 26,100.00 92.67 TRANSFERS -OUT 0.00 0.00 43,145.00 43,145.00 0.00 0.00 43,145.00 0.00 CAPITAL OUTLAY 288,406.00 296,631.00 691,250.00 394,619.00 42.91 0.00 350,000.00 0.00 DEPRECIATION EXPENSE 0.00 0.00 1,495,000.00 1,495,000.00 0.00 0.00 1,589,300.00 0.00 DEBT SERVICE 0.00 542,332.35 1,573,470.00 1,031,137.65 34.47 1,362,621.37 1,590,266.00 85.69 TOTAL Expenditures 392,640.20 1,751,605.08 5,518,302.00 3,766,696.92 31.74 2,372,110.89 5,200,570.00 45.61 Fund 602 - Sewer Fund: TOTAL REVENUES 319,779.88 2,575,350.45 4,040,153.00 1,464,802.55 63.74 2,530,803.30 3,880,192.00 65.22 TOTAL EXPENDITURES 392,640.20 1,751,605.08 5,518,302.00 3,766,696.92 31.74 2,372,110.89 5,200,570.00 45.61 NET OF REVENUES & EXPENDITURES (72,860.32) 823,745.37 (1,478,149.00) (2,301,894.37) 55.73 158,692.41 (1,320,378.00) 12.02 REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 'NOTE: Available Balance 1 Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE % BDGT ACCOUNT DESCRIPTION 08/3112015 0813112015 BUDGET BALANCE USED Fund 603 - Refuse Fund INTERGOVERNMENTAL REVENUE MISCELLANEOUS REVENUES SALES TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES TRANSFERS -OUT CAPITAL OUTLAY DEPRECIATION EXPENSE DEBT SERVICE TOTAL Expenditures Fund 603 - Refuse Fund: TOTAL REVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES 3,138.39 5,794.52 7.17 8,369.69 95,023.75 754,627.43 98,169.31 10,561.41 2,226.62 54,717.04 309.62 0.00 0.00 0.00 0.00 768,791.64 116,301.88 36,342.24 405,392.22 2,501.20 0.00 75,083.49 0.00 1,002.62 12,500.00 9,500.00 1,126,700.00 1,148,700.00 179,288.00 65,400.00 702,650.00 3,250.00 55,000.00 159,418.00 131,500.00 24,261.00 6,705.48 46.36 1,130.31 88.10 372,072.57 66.98 768,791.64 66.93 379,908.36 62,986.12 64.87 29,057.76 55.57 297,257.78 57.69 748.80 76.96 55,000.00 0.00 84,334.51 47.10 131,500.00 0.00 23,258.38 4.13 67,814.69 636,623.65 1,320,767.00 684,143.35 48.20 98,169.31 768,791.64 1,148,700.00 379,908.36 66.93 67,814.69 636,623.65 1,320,767.00 684,143.35 48.20 30,354.62 132,167.99 (172,067.00) (304,234.99) 76.81 EVIOUS YEAR YTD BALANCE 2014 % BDGT 08/3112014 AMENDED BUDGET USED 5,857.88 5,565.36 752,025.68 763,448.92 111,557.25 36,672.16 407,775.36 1,442.58 0.00 0.00 0.00 1,311.92 558,759.27 763,448.92 558,759.27 204,689.65 12,500.00 46.86 9,500.00 58.58 1,131,287.00 66.48 66.20 1,153,287.00 153,350.00 72.75 68,500.00 53.54 720,873.00 56.57 1,250.00 115.41 55,000.00 0.00 110,000.00 0.00 116,100.00 0.00 24,260.00 5.41 44.72 1,249,333.00 1,153,287.00 66.20 1,249,333.00 44.72 (96,046.00) 213.12 REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 08131/2015 'NOTE: Available Balance I Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE % BDGT YTD BALANCE ACCOUNT DESCRIPTION 08/3112015 0813112015 BUDGET BALANCE USED 08131/2014 Fund 609 • Liquor Fund MISCELLANEOUS REVENUES SALES TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES TRANSFERS -OUT CAPITAL OUTLAY DEPRECIATION EXPENSE DEBT SERVICE COST OF SALES TOTAL Expenditures Fund 609 - Liquor Fund: TOTAL REVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES 604.98 2,166.31 3,000.00 833.69 72.21 2,455.54 493,749.42 3,776,182.94 5,695,000.00 1,918,817.06 66.31 3,633,318.47 494,354.40 3,778,349.25 5,698,000.00 1,919,650.75 66.31 41,023.13 333,673.13 521,408.00 187,734.87 63.99 1,400.41 13,136.01 16,600.00 3,463.99 79.13 18,300.62 120,602.21 196,793.00 76,190.79 61.28 0.00 3,899.64 5,500.00 1,600.36 70.90 0.00 0.00 465,000.00 465,000.00 0.00 0.00 0.00 27,000.00 27,000.00 0.00 0.00 0.00 82,075.00 82,075.00 0.00 0.00 0.00 128,305.00 128,305.00 0.00 336,522.39 2,789,506.07 4,271,071.00 1,481,564.93 65.31 397,246.55 3,260,817.06 5,713,752.00 57.07 2,452,934.94 494,354.40 3,778,349.25 5,698,000.00 1,919,650.75 66.31 397,246.55 3,260,817.06 5,713,752.00 2,452,934.94 57.07 97,107.85 517,532.19 (15,752.00) (533,284.19) 3,285.50 3,635,774.01 343,173.33 12,494.29 108,015.42 3,551.99 0.00 31,578.62 0.00 0.00 2,736,916.51 3,235,730.16 3,635,774.01 3,235,730.16 EVIOUS YEAR 2014 % BDGT AMENDED BUDGET USED 3,000.00 5,395,000.00 5,398,000.00 502,400.00 15,600.00 186,264.00 5,500.00 450,000.00 27,000.00 73,600.00 128,385.00 4,045,650.00 81.85 67.35 67.35 68.31 80.09 57.99 64.58 0.00 116.96 0.00 0.00 67.65 5,434,399.00 59.54 5,398,000.00 67.35 5,434,399.00 59.54 400,043.85 (36,399.00) 1,099.05 ACCOUNT DESCRIPTION Fund 651 - Compost Fund CHARGES FOR SERVICES MISCELLANEOUS REVENUES SALES TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES TRANSFERS -OUT CAPITAL OUTLAY DEPRECIATION EXPENSE COST OF SALES INVENTORY COST ADJUSTMENT TOTAL Expenditures Fund 651 - Compost Fund: TOTALREVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 0813112015 'NOTE: Available Balance I Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH 08/3112015 YTD BALANCE 08131/2015 AMENDED BUDGET AVAILABLE BALANCE % BDGT USED 0.00 11,969.00 58,500.00 46,531.00 20.46 3.91 4,105.96 6,000.00 1,894.04 68.43 123,353.77 2,763,127.61 2,729,160.00 (33,967.61) 101.24 123,357.68 64,621.74 9,834.70 14,617.35 1,535.80 0.00 18,550.00 0.00 8,774.99 (82,759.92) 35,174.66 123,357.68 35,174.66 88,183.02 YTD BALANCE 0813112014 (1,756.40) (711.38) 2,704,381.05 2,779,202.57 2,793,660.00 14,457.43 99.48 2,701,913.27 465,731.20 797,164.00 331,432.80 58.42 373,367.78 76,395.53 154,500.00 78,104.47 49.45 88,956.13 177,002.30 344,350.00 167,347.70 51.40 355,427.11 8,938.37 13,500.00 4,561.63 66.21 5,458.76 0.00 110,000.00 110,000.00 0.00 0.00 74,210.13 250,000.00 175,789.87 29.68 52,609.18 0.00 142,600.00 142,600.00 0.00 0.00 2,014,485.37 2,357,500.00 343,014.63 85.45 2,094,428.82 (658,451.15) (1,054,568.00) (396,116.85) 62.44 (800,738.90) 956,734.25 69.29 2,158,311.75 3,115,046.00 2,169,508.88 2,779,202.57 2,793,660.00 14,457.43 99.48 2,701,913.27 2,158,311.75 3,115,046.00 956,734.25 69.29 2,169,508.88 620,890.82 (321,386.00) (942,276.82) 193.19 532,404.39 EVIOUS YEAR 2014 % BDGT AMENDED BUDGET USED 133,500.00 (1.32) 6,000.00 (11.86) 2,508,850.00 107.79 2,648,350.00 102.02 571,684.00 65.31 134,500.00 66.14 540,555.00 65.75 13,000.00 41.99 102,847.00 0.00 157,888.00 33.32 140,500.00 0.00 1,947,380.00 107.55 (972,802.00) 82.31 2,635,552.00 82.32 2,648, 350.00 102.02 2,635,552.00 82.32 12,798.00 4,160.06 REVENUE AND EXPENDITURE REPORT FOR CITY OF HUTCHINSON PERIOD ENDING 08/31/2015 'NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered. ACTIVITY FOR 2015 MONTH YTD BALANCE AMENDED AVAILABLE % BDGT ACCOUNT DESCRIPTION 08/31/2015 08131/2015 BUDGET BALANCE USED Fund 652 - Storm Water Utility LICENSES & PERMITS CHARGES FOR SERVICES MISCELLANEOUS REVENUES SALES TOTAL Revenues WAGES & BENEFITS SUPPLIES SERVICES & CHARGES MISCELLANEOUS EXPENSES CAPITAL OUTLAY DEPRECIATION EXPENSE DEBT SERVICE TOTAL Expenditures Fund 652 - Storm Water Utility: TOTAL REVENUES TOTAL EXPENDITURES NET OF REVENUES & EXPENDITURES TOTAL REVENUES - ALL FUNDS TOTAL EXPENDITURES - ALL FUNDS NET OF REVENUES & EXPENDITURES 370.00 3,567.00 0.00 630.01 3.14 5,162.60 66,049.60 524,158.62 66,422.74 533,518.23 18,649.57 76,283.09 2,959.33 8,726.44 10,069.67 59,468.14 256.52 6,009.18 0.00 0.00 0.00 0.00 0.00 144,862.65 31,935.09 295,349.50 66,422.74 533,518.23 31,935.09 295,349.50 34,487.65 238,168.73 1,637,253.52 18,462,214.08 1,954,721.82 16,627,964.67 (317,468.30) 1,834,249.41 0.00 0.00 8,200.00 788,000.00 796,200.00 241,318.00 34,175.00 146,350.00 11,250.00 128,000.00 116,000.00 193,992.00 871,085.00 796,200.00 871,085.00 (74,885.00) 29,613,910.00 32,618,745.00 (3,004,835.00) (3,567.00) 62.34 100.00 (630.01) (4,839,084.41) 100.00 3,037.40 8,050.00 62.96 263,841.38 0.00 66.52 146,544.30 193,932.00 67.01 262,681.77 165,034.91 721,750.00 31.61 25,448.56 25.53 86,881.86 40.63 5,240.82 53.41 128,000.00 0.00 116,000.00 0.00 49,129.35 74.67 575,735.50 33.91 262,681.77 67.01 575,735.50 33.91 (313,053.73) 318.05 11,151,695.92 62.34 15,990,780.33 50.98 (4,839,084.41) 61.04 EVIOUS YEAR YTD BALANCE 2014 % BDGT 08/31/2014 AMENDED BUDGET USED 775.00 0.00 3,991.41 482,888.52 0.00 1,000.00 3,450.00 717,300.00 487,654.93 721,750.00 69,057.29 208,737.00 13,360.60 33,150.00 69,023.08 146,450.00 4,624.06 8,050.00 0.00 128,000.00 0.00 111,200.00 146,544.30 193,932.00 302,609.33 829,519.00 487,654.93 721,750.00 302,609.33 829,519.00 185,045.60 (107,769.00) 18,082,280.96 28,619,263.00 17,522,517.12 30,424,102.00 559,763.84 (1,804,839.00) 100.00 0.00 115.69 67.32 67.57 33.08 40.30 47.13 57.44 0.00 0.00 75.56 36.48 67.57 36.48 171.71 63.18 57.59 31.01 � UBS Executive summary as of August 31, 2015 Asset allocation review Value on % of 08/31/2015 ($) portfolio A Cash 3,752,721.79 27.04 Cash 3,752,721.79 27.04 B Fixed Income 10,125,236.51 72.96 us 9,884,693.03 71.23 International 240,543.48 1.73 A C Equity 0.00 0.00 D Commodities 0.00 0.00 E Non -Traditional 0.00 0.00 B F Other 0.00 0.00 Total Portfolio $13,877,958.30 100% Balanced mutual funds are allocated in the 'Other' category Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Expected cash flow $ Thousands 43 36 29 21 14 7 0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2015 2016 2016 Taxable income Total taxable income: $207,510.23 Total expected cash flow: $207,510.23 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings Effective credit rating Issues Value on 08/31/2015 ($) % of port. A Aaa/AAA/AAA 7 4,839,833.94 47.76 B Aa/AA/AA 3 1,535,182.08 15.15 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 17 3,750,220.49 37.09 G Not rated 0 0.00 0.00 Total 27 $10,125,236.51 100% F A B Report created on: September 01, 2015 Page 1 of 3 1 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income summaryIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. as of August 31, 2015 Bond overview Total quantity 10,057,000 Total market value $10,087,457.87 Total accrued interest $37,778.64 Total market value plus accrued interest $10,125,236.51 Total estimated annual bond interest $204,350.75 Average coupon 2.04% Average current yield 2.03% Average yield to maturity 1.69% Average yield to worst 1.45% Average modified duration 2.90 Average effective maturity 4.61 Credit quality of bond holdings Effective credit rating Issues Value on 08/31/2015 ($) % of port. A Aaa/AAA/AAA 7 4,839,833.94 47.76 B Aa/AA/AA 3 1,535,182.08 15.15 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 17 3,750,220.49 37.09 G Not rated 0 0.00 0.00 Total 27 $10,125,236.51 100% Investment type allocation Bond maturity schedule $ Millions 2.5 F 2.0 0 A 1.5 B 1.0 0.5 0.0 20.2% 19.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2026 + Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. Report created on: September 01, 2015 Page 1 of 2 % of Tax-exempt / bond Investment type Taxable ($) deferred ($) Total ($) port. Certificates of deposit 3,750,220.49 0.00 3,750,220.49 37.04 Municipals 1,535,182.08 0.00 1,535,182.08 15.16 U.S. federal agencies 4,839,833.94 0.00 4,839,833.94 47.80 Total $10,125,236.51 $0.00 $10,125,236.51 100% Bond maturity schedule $ Millions 2.5 F 2.0 0 A 1.5 B 1.0 0.5 0.0 20.2% 19.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2026 + Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. Report created on: September 01, 2015 Page 1 of 2 SrWe'1 as of August 31, 2015 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income SIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. Summary of bond holdings Maturity Year Issues Quantity Est. annual income ($) Current Yield to Yield to Modified yield (%) maturity (%) worst (%) duration 2015 0 0 0 NA NA NA NA 2016 4 865,000 8,772.50 1.01% 0.76% 0.76% 1.17 2017 7 1,996,000 49,308.75 2.42% 0.93 % 0.93 % 1.60 2018 3 736,000 9,564.00 1.31% 1.46% 1.46% 2.63 2019 5 1,327,000 29,145.50 2.17% 1.93% 1.93 % 3.91 2020 3 2,000,000 44,200.00 2.20% 2.10% 1.06% 1.22 2021 1 428,000 8,560.00 2.01% 2.09 % 2.09% 5.72 2022 0 0 NA NA NA NA NA 2023 2 2,000,000 44,750.00 2.27% 2.70% 2.70% 7.12 2024 1 465,000 4,650.00 1.00% NA NA NA 2025 1 240,000 5,400.00 2.26% NA NA NA 2026 0 0 NA NA NA 2027 0 0 NA NA NA 2028 0 0 NA NA NA 2029 0 0 NA NA NA 2030 0 0 NA NA NA 2031 0 0 NA NA NA 2032 0 0 NA NA NA 2033 0 0 NA NA NA Adjusted cost basis ($) 865,000 2,018,889.77 736,000 1,332,777.68 1,999,745 421,853.06 1,999,250 465,000 240,000 Unrealized ain/loss ($) Mkt. value ($) % of bond portfolio maturi 2,408.30 869,046.97- 8.6% 21,361.45 2,047,380.15 20.23% -3,344.16 732,990.97 7.26% 7,262.84 1,345,583.78 13.28% 10,290.00 2,022,952.36 19.93% 3,998.38 428,823.66= 4.22% 1 30,782.50 1,974,483.47 19.51% -795.15 465,431.931=4.6% -1,456.80 238,543.20IN2.36% 2034 0 0 NA NA NA 2035 0 0 NA NA NA 2036 0 0 NA NA NA 2037 0 0 NA NA NA 2038 0 0 NA NA NA 2039 0 0 NA NA NA 2040 0 0 NA NA NA 2041 0 0 NA NA NA 2042 0 0 NA NA NA 2043 0 0 NA NA NA 2044 0 0 NA NA NA 2044+ 0 0 NA NA NA Other 0 0 NA NA NA Total 27 10,057,000 $204,350.75 2.03% 1.69% 1.45% 2.90 $10,078,515.51 $8,942.36 $10,125,236.51 Report created on: September 01, 2015 Page 1 of 6 S+Wa Bond holdings - as of August 31, 2015 (continued) Details of bond holdings Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Est. annual Effective rating/ Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 10,057,000 2.04% 04/09/2020 NA $204,350.75 1.69% 2.90 $10,078,515.51 NA $10,087,457.87 100% Total Bond Portfolio 2.03% 1.45% $8,942.36 $37,778.64 (Mdy/Fitch/S&P) Quantity Coupon $10,125,236.51 Call price ($) Report created on: September 01, 2015 Page 2 of 6 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM M/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. o/I ($) price ($) Accr. interest ($) port. Maturing 2016 AMERICAN EXPRESS C NY US RT CD 145,000 1.25% 08/09/2016 1,812.50 0.57% 0.93 145,000.00 100.638 145,925.10 1.45% 01.2500% MAT 08/09/16 FIXED 1.24% 0.57% 925.10 109.25 RATE CD /NY BMW BANK NORTH AME UT US CD 240,000 0.95% 11/142016 2,280.00 0.77% 1.20 240,000.00 100.221 240,530.40 2.38% RT 00.9500% MAT 11/14/16 0.95% 0.77% 530.40 680.88 FIXED RATE CD /UT CAPITAL ONE BANK U VA US RT CD 240,000 1.00% 11/14/2016 2,400.00 0.82% 1.19 240,000.00 100.220 240,528.00 2.38% 01.0000% MAT 11/14/16 FIXED 1.00% 0.82% 528.00 729.86 RATE CD /VA FIRSTBANK P R SANT PR RT CD 240,000 0.95% 12/12/2016 2,280.00 0.81% 1.27 240,000.00 100.177 240,424.80 2.38% 00.9500% MAT 12/12/16 FIXED 0.95% 0.81% 424.80 118.69 RATE CD /PR Total 2016 865,000 1.01% 11/06/2016 $8,772.50 0.76% 1.17 $865,000.00 $867,408.30 8.60% 1.01% 0.76% $2,408.30 $1,638.67 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. o/I ($) price ($) Accr. interest ($) port. Maturing 2017 MASSACHUSETTS DEPT TRANS Aa3/AA-/NR 500,000 2.41% 01/01/2017 12,040.00 1.10% 1.31 507,110.19 101.726 508,630.00 5.04% TAX SR B RV BUR/ 2.408 NR/NR/NR 2.37% 1.10% 1,519.81 2,006.67 010117 DTD 113011 /MA FED FARM CREDIT BANK 04.875 Aaa/AAA/AA+ 431,000 4.88% 01/17/2017 21,011.25 0.58% 1.34 446,779.58 105.880 456,342.80 4.52% % DUE 011717 DTD 010907 FC NR/NR/NR 4.60% 0.58% 9,563.22 2,568.04 07172007 STATE BK INDIA NY US RT CD 248,000 2.00% 04272017 4,960.00 1.00% 1.62 248,000.00 101.640 252,067.20 2.50% 02.0000% MAT 04/27/17 FIXED 1.97% 1.00% 4,067.20 1,712.22 RATE CD /NY COMENITY BANK DE US RT CD 200,000 1.15% 06/192017 2,300.00 1.37% 1.78 200,000.00 99.606 199,211.00 1.97% 01.1500% MAT 06/19/17 FIXED 1.15% 1.37% -789.00 176.44 RATE JUMBO CD /DE Report created on: September 01, 2015 Page 2 of 6 Bond holdings - as of August 31, 2015 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Maturing 2018 Effective rating/ 248,000.00 99.889 ALLY BK UT US RT 01.2500% CD 248,000 1.25% 0226/2018 Est. annual 42.47 Adjusted /UT 248,000.00 99.889 % of GOLDMAN SACHS BK U NY US Underlying rating 1.30% 02/262018 RT 01.3000% MAT 0226/18 Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond MAT 10/04/18 FIXED RATE CD (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2017 Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon GE CAP BK UT US RT 01.7500% CD 130,000 1.75% 08/03/2017 Accr. interest ($) 2,275.00 1.16% 1.89 130,000.00 101.126 131,463.80 1.30% MAT 08/03/17 FIXED RATE CD 1.73% 1.16% 1,463.80 2.35% 168.29 11,725.00 /UT 505,777.68 102.560 512,800.00 5.08% TAX SR B BUR/ 2.345 NR/NR/NR 2.29% 1.67% GE CAP RETAIL BK UT US RT CD 247,000 1.75% 08/032017 4,322.50 1.16% 1.89 247,000.00 101.126 249,781.22 2.48% 01.7500% MAT 08/03/17 FIXED AMERICAN EXPRESS F UT US RT CD 247,000 1.73% 1.16% 2,781.22 2.10% 3.97 319.75 100.196 RATE CD /UT 2.45% 02.1500% MAT 11/13/19 FIXED 2.15% 2.10% 484.12 1,600.42 SUN NATL BK NJ US RT CD 240,000 1.00% 10/032017 2,400.00 0.45% 2.07 240,000.00 101.148 242,755.20 2.41% 01.0000% MAT 10/03/17 FIXED 0.99% 0.45% 2,755.20 177.53 RATE CD MJ Total 2017 1,996,000 2.50% 04/18/2017 $49,308.75 0.93% 1.60 $2,018,889.77 $2,040,251.22 20.23% 2.42% 0.93% $21,361.45 $7,128.93 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. q/I ($) price ($) Accr. interest ($) port. Maturing 2018 1.30% 2.44 248,000.00 99.889 ALLY BK UT US RT 01.2500% CD 248,000 1.25% 0226/2018 MAT 0226/18 FIXED RATE CD 42.47 3,224.00 /UT 248,000.00 99.889 247,724.72 2.46% GOLDMAN SACHS BK U NY US CD 248,000 1.30% 02/262018 RT 01.3000% MAT 0226/18 3,240.00 1.74% 3.02 FIXED RATE CD /NY 237,206.40 2.35% 1.37% ENERBANK UT US RT 01.3500% CD 240,000 1.35% 10/04/2018 MAT 10/04/18 FIXED RATE CD 3,100.00 1.30% 2.44 248,000.00 99.889 247,724.72 2.46% 1.25% 1.30% -275.28 42.47 3,224.00 1.35% 2.44 248,000.00 99.889 247,724.72 2.46% 1.30% 1.35% -275.28 53.00 3,240.00 1.74% 3.02 240,000.00 98.836 237,206.40 2.35% 1.37% 1.74% -2.793.60 239.67 Total 2018 736,000 1.30% 05/09/2018 $9,564.00 1.46% 2.63 $736,000.00 $732,655.84 7.26% 1.31% 1.46% $-3,344.16 $335.13 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. q/I ($) price ($) Accr. interest ($) port. Maturing 2019 RIVERSIDE CA CMNTY COLGE Aa2/NR/AA 500,000 2.35% 08/01/2019 11,725.00 1.67% 3.73 505,777.68 102.560 512,800.00 5.08% TAX SR B BUR/ 2.345 NR/NR/NR 2.29% 1.67% 7,022.32 977.08 080119 DTD 052914 /CA AMERICAN EXPRESS F UT US RT CD 247,000 2.15% 11/13/2019 5,310.50 2.10% 3.97 247,000.00 100.196 247,484.12 2.45% 02.1500% MAT 11/13/19 FIXED 2.15% 2.10% 484.12 1,600.42 RATE CD /UT Report created on: September 01, 2015 Page 3 of 6 Bond holdings - as of August 31, 2015 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM MY Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. o/1($) price ($) Accr. interest ($) port. Maturing 2019 2.17% 1.93% $7,262.84 CIT BK SALT LAKE C UT US RT CD 240,000 2.10% 11/13/2019 5,040.00 2.10% 3.98 240,000.00 99.996 239,990.40 2.38% 02.1000% MAT 11/13/19 FIXED % of 2.10% 2.10% -9.60 1,518.90 Call date/ RATE CD /UT YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon BARCLAYS BK DE US RT CD 240,000 2.05% 12/17/2019 4,920.00 2.08% 4.08 240,000.00 99.860 239,664.00 2.38% 02.0500% MAT 12/17/19 FIXED 2.05% 2.08% -336.00 1,010.96 RATE CD /DE Aal/AA+/AA+ 500,000 2.09% 05/01/2020 10,450.00 1.76% 4.40 ' 499,995.00 101.457 AMERICAN EXPRESS C UT US RT CD 100,000 2.15% 12/18/2019 2,150.00 2.12% 4.07 100,000.00 100.102 100,102.00 0.99% 02.1500% MAT 12/18/19 FIXED 3,483.33 2.15% 2.12% 102.00 435.89 RATE CD /UT FHLMC MED TERM NTS 02.000 Aaa/AAA/AA+ 500,000 2.00% Total 2019 1,327,000 2.20% 10/13/2019 $29,145.50 1.93% 3.91 $1,332,777.68 $1,340,040.52 13.28% Report created on: September 01, 2015 Page 4 of 6 2.17% 1.93% $7,262.84 $5,543.26 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. a/I ($) price ($) Accr. interest ($) port. Maturing 2020 MASS ST GO CONSOL LN TAX SR Aal/AA+/AA+ 500,000 2.09% 05/01/2020 10,450.00 1.76% 4.40 ' 499,995.00 101.457 507,285.00 5.03% B BE/R/ 2.090 050120 DTD NR/NR/NR 2.06% 1.76% 7,290.00 3,483.33 052814 /MA FHLMC MED TERM NTS 02.000 Aaa/AAA/AA+ 500,000 2.00% 06/152020 09/15/2015 10,000.00 1.98% 0.04 500,000.00 100.068 500,340.00 4.96% % DUE 061520 DTD 061515 FC NR/NR/NR 100.00 2.00% 0.25% 340.00 2,111.11 12152015 FFCB BOND 02.375 % DUE Aaa/AAA/AA+ 1,000,000 2.38% 11/102020 11/10/2015 23,750.00 2.33% 0.19 999,750.00 100.241 1,002,410.00 9.94% 111020 DTD 111014 FC NR/NR/NR 100.00 2.37% 1.11% 2,660.00 7,322.92 05102015 Tota12020 2,000,000 2.21% 08/17/2020 $44,200.00 2.10% 1.22 $1,999,745.00 $2,010,035.00 19.93% 2.20% 1.06% $10,290.00 $12,917.36 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM MY Modified cost basis ($)/ Market Mkt. value ($)/ bond _ (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. a/1 ($) price ($) Accr. interest ($) port. Maturing 2021 FNMA NTS 02.000 % DUE Aaa/AAA/AA+ 428,000 2.00% 1026/2021 10/26/2015 8,560.00 2.09% 5.72 421,853.06 99.498 425,851.44 4.22% 102621 DTD 072612 FC NR/NR/NR 100.00 2.01% 2.09% 3,998.38 2,972.22 10262012 Tota12021 428,000 2.00% 10/26/2021 $8,560.00 2.09% 5.72 $421,853.06 $425,851.44 4.22% 2.01% 2.09% $3,998.38 $2,972.22 Report created on: September 01, 2015 Page 4 of 6 Bond holdings - as of August 31, 2015 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Effective rating/ Adjusted % of Est. annual Effective Call date/ income ($)/ Adjusted cost basis ($)/ Market Mkt. value ($)/ % of (Mdy/Fitch/S&P) Quantity Underlying rating YTW (%) duration Unreal. g4 ($) price ($) Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond Total Bond Portfolio (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal aA ($) price ($) Accr. interest ($) port. Maturing 2023 FHLB BOND STEP-UP 02.000 % Aaa/NR/AA+ 750,000 2.00% 06/20/2023 09/20/2015 15,000.00 NA NA 749,250.00 99.614 747,105.00 7.41% DUE 062023 DTD 062013 FC NR/NR/NR 100.00 2.01% NA -2,145.00 2,958.33 12202013 FFCB BOND 02.380 % DUE Aaa/AAA/AA+ 1,250,000 2.38% 0724/2023 29,750.00 2.70% 7.12 1,250,000.00 97.709 1,221,362.50 12.11% 072423 DTD 072412 FC NR/NR/NR 2.44% 2.70% -28,637.50 3,057.64 01242013 Total2023 2,000,000 2.24% 07/11/2023 $44,750.00 2.70% 7.12 $1,999,250.00 $1,968,467.50 19.51% 2.27% 2.70% $-30,782.50 $6,015.97 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. a/1($) price ($) Accr. interest ($) port. Maturing 2024 FEDERAL HOME LN BANK 01.000 Aaa/NR/AA+ 465,000 1.00% 11/26/2024 11/26/2015 4,650.00 NA NA 465,000.00 99.829 464,204.85 4.60% % DUE 112624 DTD 112614 NR/NR/NR 100.00 1.00% NA -795.15 1,227.08 STEP UP CALL Total 2024 465,000 1.00% 11/26/2024 $4,650.00 NA $465,000.00 $464,204.85 4.60% 1.00% NA $-795.15 $1,227.08 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal a/I ($) price ($) Accr. interest ($) port. Maturing 2025 HSBC BANK USA DE US RT CD 240,000 2.25% 03/11/2025 03/11/2020 5,400.00 NA NA 240,000.00 99.393 238,543.20 2.36% 02.2500% MAT 03/1125 STEP 100.00 2.26% NA -1,456.80 0.00 RATE CD /DE Total 2025 240,000 2.25% 03/11/2025 $5,400.00 NA $240,000.00 $238,543.20 2.36% 2.26% NA $-1,456.80 $0.00 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (°h) YTW (%) duration Unreal. g4 ($) price ($) Accr. interest ($) port. 10,057,000 2.04% 04/09/2020 NA $204,350.75 1.69% 2.90 $10,078,515.51 NA $10,087,457.87 100% Total Bond Portfolio 2.03% 1.45% $8,942.36 $37,778.64 $10,125,236.51 Report created on: September 01, 2015 Page 5 of 6 HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Tuesday, August 18, 2015, 7:00 AM Minutes 1. CALL TO ORDER. Vice Chairman Joel Kraft called the meeting to order. Members Present: Gary Fortier, LouAnn Holmquist, and Steve Jensen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JULY 21, 2015 Steve Jensen moved to approve the Minutes of the regular board meeting as written. LouAnn Holmquist seconded and the motion carried unanimously. FINANCIAL REPORTS a. Steve: Jensen moved to approve the City Center General Fund payments of $21,490.51 for checks 8674 to 8684. LouAnn Holmquist seconded and the motion carried unanimously. b. Steve Jensen moved to approve the City Center July 31, 2015 Financial Reports_ LouAnn Holmquist seconded and the motion carried unanimously. c. LouAnn IIolmquist moved to approve the Park Towers operating account payments of$31,490.81 for checks 13318 to 13349 and approval of Park Towers Security Account payments of $1058.97 for check 1523 to 1525. Steve Jensen seconded and the motion carried unanimously. d. LouAnn Holmquist moved to approve the June 2015 Park Towers financial statements. Steve Jensen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report: 98% b. LouAnn Holmquist moved to approve Resolution #2015-10 to Officially Void Outstanding Check # 12986. Steven Jensen seconded and the motion carried unanimously. c. Jean Ward reviewed with the Board HUD's final Affirmatively Furthering Fair Housing Rule- d. Jean Ward updated the Board on the Lock project installation. c. Jean Ward updated the Board on the Elevator project: the contract is signed; the "Notice to Proceed" is issued; and the estimated start date is October 1 St_ 5. DOWNTOWN RENTAL REHAB PROGRAM APPLICATION Judy Flemming updated the Board on the program implementation. 6. 445 ADAMS STREET a. FYI Home Energy Rating Certification h. FYI Showing Reports 7. CONSIDERATION OF PROJECT DESCRIPTION USE OF AVAILABLE TIF FUNDS FROM AUGUSTA HOUSING PROJECT a. Jean Ward reviewed with the Board the proposed project description use of available TIF fiends and the acquisition target areas. The Board liked the idea of using the TIF funds for owner occupied programs. b. Jean Ward reviewed with the Board the proposed Owner Occupied Programs. August 18, 2015 Minutes Page I oft 8. 2015 VACANCY RATE - 1.85% Market Rate General Occupancy compared to 1.89% in 2014 9. OTHER COMMUNICATIONS a. Jean Ward told the Board that the new website is coming along nicely. b. FYI — Accessibility Letter 10. ADJOURNMENT There being no ether business, Vice Chairman Joel Kraft declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director Gary F Secretary/Treasurer August 18, 2015 Minutes Page 2 of 2 Hutchinson Public Library Board Meeting Monday, August 24, 2015, 4:30 pm Attending: Jon Ross, Dianne Wanzek, Jack Sandberg, Gerald Grinde, Steve Bailey, Mary Christensen, Julie Lofdahl, and Pam Dille, Ex -Officio Missing: none Jon Ross called the meeting to order. The Minutes from the July 27, 2015 meeting were reviewed. Motion to approve by Jack Sandberg, seconded by Dianne Wanzek. Minutes approved as written. Old Business: Legacy -sponsored MN Author Connie Clare Szarke Visit --- Saturday, August 15, 2015 at 2:00 p.m. at Woodstone Senior Living Center. Twenty people attended the event. Small number but was a very hot day. Gerry attended thought interesting and entertaining. Ms. Szarke is an award winning author and a retired teacher. She talked about the writing process and need for different elements to make tension. Talk will be broadcast on cable 10. Pam is enjoying her second bookA Stone forAmer. Legacy -sponsored MN Arboretum/Mpls. Institute of Arts Bus Trip --- Thursday, September 10tH Very popular event. Tour is full with a waiting list of five for Hutchinson. Those on waiting list may get to go if buses for other towns do not fill up. Report on recognition of former library board members --- The books that were going to be purchased ended up being very expensive, so $25 gift certificates from Barnes and Noble were given to them to purchase a book of their choice. Used Book Sale --- September 18 & 19 Volunteers and City employees will start bringing the books out of the library the morning of September 18. Friends of the Library line up the volunteers. If anyone wants to come and arrange books, you can. Come between 8:00 and 9:00 am. Sale starts at 10:00 and goes until 5:00 pm. Money goes to Friends. Friends funds the summer reading program and a majority of the audio books. They give the library around $12,000 to $15,000 per year. New Business: 2016 budget requests from cities and counties --- A formal letter went out with a request of 1% increase in Hutchinson (last year 3%) and McLeod County. Since Winsted has not given, PLS suggested they give $6,000 to start. Pam needs to set up a time to present to Hutchinson City Council. Many patrons use the library for more than checking out books. Patrons who may not have the resources at home use the library to access the Internet to search for jobs, print resumes, etc. Today the computer usage was backed up most of the day, so the two laptops were checked out by patrons. Many people bring in their own laptops to use WIFI. The WIFI usage is much increase from last year. Elevator repair --- On July 25 power went out and left elevator stuck between floors. Maintenance person had to come out and they were here less than % hour for a $500 service call billing. Pam called and most was for mileage. Pam wrote letter saying that she was not happy with the service after spending approximately $9,000 for the recent upgrade. No response to phone call or letter as of today. Library volunteer force Pam looked at the dollar value of the regular volunteers of the library. Volunteers are trained by staff to process new books, shelf books, repair books, prepare spread sheets, dust books, and several other miscellaneous tasks. All volunteers sign a statement of confidentiality. Grantspace.org site values volunteers at $23.07 per hour. With the volunteers that the library uses, this is equal to about a one full-time person per week position. This brought to forefront what would happen if we had no volunteers. The work would not get done or get done on a much delayed time frame. New hires These new hires are pending PLS approval: Mariah Ralston (LA 11); Mckenzie Ebert (LA 1); Sydney Hlavka (LA 1) Three employees are now away at college. Mariah will work two days in Litchfield and two to three days in Hutchinson for seven hours a week with some weekend work. Mckenzie and Sydney will work three to nine hours a week. LAII is a supervisory position with a wage of about $10.85 and LAI has a wage of about $9.75. Meeting adjourn: 5:16 pm Next meeting: September 28, 2015 at 4:30 p.m. Minutes submitted by Julie Lofdahl, Secretary August 2015 Donations Hutchinson Kiwanis Club for Library Lego Club start-up: $900.00 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, July 21, 2015 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The July 21, 2015 Planning Commission meeting was called to order by Chair Hantge at 5:31 p.m. Members in bold were present Chair Hantge, Commissioner Kirchoff, Commissioner Johnston, Commissioner Norton, Commissioner Arndt, Commissioner Wick, and Commissioner Fahey. Also present were Dan Jochum, City Planner and Kyle Dimler Planning and Building Specialist. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED JUNE 16, 2015 Motion by Commissioner Arndt, Second by Commissioner Wick to approve. Approved unanimously. 4. PUBLIC HEARINGS A. CONSIDERATION OF A VARIANCE TO REDUCE THE NORTHERN SIDE - YARD SETBACK FOR AN ACCESSORY STRUCTURE BY 38 INCHES ON THE PROPERTY LOCATED AT 107 MARK DR. NE, RONALD & JEANIE KALENBERG, APPLICANTS Chair Hantge announced the agenda item. Mr. Dan Jochum, City Planner addressed the Commission. Mr. Jochum reviewed the Staff Report concerning the application, which was included in the Planning Commission's packet. Mr. Jochum reviewed the statutory requirements of a variance application meeting 3 specific practical difficulties in order for it to be approved for the Commission. Mr. Jochum presented Staff's review of the variance 3 -part test concerning the application to determine if there is a practical difficulty in the applicant's request. Minutes Hutchinson Planning Commission July 21, 2014 Page 2 Mr. Jochum stated Staff does believe it is a reasonable use to have a detached garage on a residential lot. Mr. Jochum noted Mr. Kalenberg's difficulty with complying with the zoning ordinance is the property owner's preference of where to locate the proposed structure on his property and not a unique attribute of the piece of property itself. Mr. Jochum stated Staff does not believe that reconstructing the garage in the same location would change the essential character of the locality. Chair Hantge asked when the existing garage was constructed. Mr. Kalenberg stated the garage was likely constructed in 1968 with the development of the house on this lot. Mr. Jochum also noted that there a number of similar non -conformities elsewhere in the City as well. Commissioner Fahey asked how far the garage is currently from the house. Mr. Kalenberg stated the garage is currently 40" from the house and he is proposing to move the garage 60" from the house on his property. Chair Hantge asked if Staff believed there would be any legal ramifications if the Commission determined the layout of the lot is in fact a practical difficulty. Mr. Jochum stated that it is the Commission's decision to recommend approval or denial based upon Staff's findings in the Staff Report and the Commission would need to articulate why it believes there is a practical difficulty with the subject property. Commissioner Fahey asked Mr. Jochum if he had any standard conditions that the Commission could include in the Commission's decision to approve, should they choose to do that. Mr. Jochum noted the Commission would need to articulate why it believes the applicant's request is a practical difficulty and that the difficulty is particular to this property. Motion by Commissioner Kirchoff, Second by Commissioner Arndt to close the public hearing at 5:59 p.m. Commissioner Fahey motioned to approve the applicant's request as a practical difficulty because the Commission believes requiring the garage to comply with the current zoning setback requirements and causing the garage to overlap the house would be creating a hardship for the applicant to maneuver vehicles due to the layout of the existing property. Minutes Hutchinson Planning Commission July 21, 2014 Page 3 Second by Commissioner Kirchoff. Motion approved unanimously. This item will be on the City Council's consent agenda for July 28, 2015 at 5:30 p.m. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject 5. UNFINISHED BUSINESS Mr. Jochum noted staff is still working on ordinance revisions regarding dynamic signs pertaining to religious and institutional uses. Mr. Jochum also noted staff is continuing to work on development of the Interim Use Permit proposal for the Commission's consideration. 6. NEW BUSINESS 7. COMMUNICATION FROM STAFF A. Upcoming Meetings Mr. Jochum noted that one application has been submitted for the August Planning Commission meeting. The application is for an annexation on North High Dr. NW just west of the Deer Park Apartments. 8. ADJOURNMENT Motion by Commissioner Arndt, Second by Commissioner Wick to adjourn the meeting at 6:05 p.m. Unanimously approved. SATURDAY, SEPT. 26th H U T C H I N S 0 N 10am-3pm 3rd Ave. NW & lute Line State Trail \ \\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Experience all that Hutchinson has to offer! Open Streets Hutchinson is the perfect time to conn q -t\, with the community and discover something new. + A special `Grand Opening' of the newly paved section of the Luce Line State Trail Street is only open to foot, bicycle, and skate traffic + Recreational activities for all ages + Free and open to the public \\X \\\\\\\\\\\\\ FOR MORE INFO: HEARTOFHUTCH.COM/OPENSTREETS OPEW�STREETS HUTCHINSON F— SCHEDULE OF EVENTS OPEN STREETS 10K Jaycees Riverside Park - Race course on the newly paved Luce Line Trail Bike Friendly City Award Stage Luce Line State Trail Ribbon Cutting Ceremony Stage Inaugural Trail Bike Ride Location #2 on map (see front side) SEPT. 26TH 10AM - 3PM 3rd Ave. NW G Luce Line State Trail Open Streets Activities Along 3rd Ave NW Phoenix Drumline Rockin' Hollywoods Band Stage - Sponsored by the I.J. Burich Foundation MORE EVENTS HAPPENING IN HUTCHINSON FREE PADDLE SPORT RENTALS Les Kouba Point E.T. MOVIE IN THE PARK Library Square EXTENDED FARMERS MARKET HOURS The Depot OPEW�STREETS HUTCHINSON 1. STAGE See backside for schedule 2. INAUGURAL LUCE LINE TRAIL RIDE 10:30 am start 3. OPEN STREETS HUTCHINSON - HEART OF HUTCH Information and volunteer check-in 4. HUTCHINSON PARKS, REC Fr COMMUNITY EDUCATION Community brochures and information, Open Streets apparel 5. HUTCHINSON AREA CHAMBER OF COMMERCE AND TOURISM City guides, trail maps, Art Sculpture Stroll maps, and more 6. FRIENDS OF THE LUCE LINE 7. PARKS AND TRAILS COUNCIL OF MN 8. MN DEPARTMENT OF NATURAL RESOURCES 9. AMERICA'S FITNESS CENTER Fitness activities 10. COMPLETE SELF DEFENSE Martial arts demo and fitness challenge 11. HUTCHINSON BASKETBALL ASSOCIATION Shooting and dribbling contest 12. HUTCHINSON SENIOR CENTER 13. MN RIVER AREA AGENCY ON AGING SEPT. 26TH 10AM - 3PM 3rd Ave. NW & Luce Line State Trail 14. CROW RIVER HABITAT FOR HUMANITY Games, handouts, and drawing 15. H TOWN TENNIS ASSOCIATION Tennis for a lifetime from under 10 to over 100 16. HUTCHINSON FIRE DEPARTMENT 17. CROW RIVER SNO PRO'S Snowmobile club and trail information 18. HUTCHINSON CENTER FOR THE ARTS Bike decorating and street art 27. HUTCHINSON POLICE COMMAND CENTER AND FIRST AID STATION 28. HUTCHINSON STORM SPECIAL OLYMPICS Activities display and basketball fun 29. HUNGER FREE MCLEOD Food concessions 30. UNITED WAY OF MCLEOD COUNTY Hydration station 31. U OF M EXTENSION Rethink your drink 19. HEALTHSOURCE CHIROPRACTIC 32. HUTCHINSON FARMERS MARKET Chair massage, samples, and information Activities and giveaways, partnering with G) to McLeod County SHIP 20. HUTCHINSON ROTARY CLUB 33. HUTCHINSON EARLY CHILDHOOD Rotary bike ride, outdoor fitness, and club info AND FAMILY EDUCATION 21. BICYCLE ALLIANCE OF MN Activities for children S and under FREE bike rentals, kids bike rodeo, adult biking 101 34. CELEBRATE DANCE, FITNESS, AND WELLNESS STUDIO 22. HUTCH TIGER CYCLING TEAM Fitness games and activities for all ages Demo and display 35. IRON JUNGLE CROSSFIT 23. OUTDOOR MOTION CrossFit demos, challenge activity, drawings, Cycle aid station demo and information 24. HUTCHINSON HEALTH Trauma and safety activities 25. MCLEOD COUNTY PUBLIC HEALTH Material and child health programs 26. FACE PAINTING Free activity by Fantastical Faces R m C_ R W G) to Cn r+ n m m r r* m 2 36. NATIONAL GUARD ARMORY Climbing wall and bounce house 17 16 15 14 13 12 11 1029002625 4O RR 9999 28mggggH 099 Tj? O®2 3RD AVENUE NW W r+ m m z 22 LUCE LINE TRAIL RiverCrow N