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cp02-12-19C Hutchinson City Cuter 1 1 1 Hassan Street SE Hutchinson. MN 55350-2522 Phone 320-587-515t, Fax 320-234-4240 CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A CLOSED SPECIAL CITY COUNCIL WORKSHOP Tuesday, February 12, 2019 4.00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a closed special workshop meeting for Tuesday, February 12, 2019, at 4:00 p.m. in the Council Chambers at the Hutchinson City Ccntcr, 1 1 i Hassan Street SE, Hutchinson, Minnesota for the following purpose: UI.: I-I'LOP OR CONSIDI?R OFFERS OR COUNTEROFFERS FOR THE PURCHASE OR SALE: OF REAL OR PERSONAL PROPERTY l)A'l ED: February 6, 2019 POST El): City Center Matthew ich, City Adminis HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, FEBRUARY 12, 2019 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: Citypolicy andpractices, 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 — Faith Lutheran Church (The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15010 — Resolution Accepting Cash Donation of $9888.00 from Hutchinson Rotary Foundation for Rotary Park Play Structure PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you 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 speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of January 22, 2019 (b) Workshop of January 22, 2019 (c) Summary of Closed Meeting Proceedings City Administrator Annual Performance Review Session of January 22, 2019 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. 15011 — Transferring Funds to the 2018 Construction Fund and General Fund (b) Consideration for Approval of Resolution No. 15012 — Revising the 2019 Designated Depositories for the City of Hutchinson (c) Consideration for Approval of Authorizing Crow River Winery to Dispense Wine at Minted Patina Event at McLeod County Fairgrounds on March 29 & 30, 2019 CITY COUNCIL AGENDA FEBRUARY 12, 2019 (d) Consideration for Approval of Issuing Short -Term Gambling License to McLeod County Pheasants Forever at McLeod County Fairgrounds on March 9, 2019 (e) Consideration for Approval of Issuing Short -Term Gambling License to Crow River Cutters NWTF at McLeod County Fairgrounds on February 15 & 16, 2019 (f) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on February 23, 2019, at Days Inn (g) Consideration for Approval of Letter of Support for Carver County's INFRA Program Application for the US Highway 212 Rural Freight Access Project (h) Consideration for Approval of Section B and Section B Attachments as Part of the Small Cities Development Program Rental Rehab Application (i) Hutchinson Pillars Project "Public Comment" Report 0) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 6:00 P.M. 9. 5TH AVENUE SOUTH RECONSTRUCTION — LETTING NO. 1, PROJECT NO. 19-01 (a) Resolution No. 15013 - Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Resolution No. 15014 - Resolution Approving Plans and Specifications and Ordering Advertisement for Bids 10. TECHNOLOGY DRIVE CONSTRUCTION — LETTING NO. 5, PROJECT NO. 19-06 (a) Resolution No. 15015 - Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Resolution No. 15016 - Resolution Approving Plans and Specifications and Ordering Advertisement for Bids purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 11. FIRE DEPARTMENT 2018 YEAR END REPORT UNFINISHED BUSINESS 12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 19-793 — ORDINANCE AMENDING AND REPLACING CHAPTER 95 OF THE HUTCHINSON CITY CODE (SET SECOND READING AND POTENTIAL ADOPTION FOR FEBRUARY 26, 2019) NEW BUSINESS 2 CITY COUNCIL AGENDA FEBRUARY 12, 2019 13. APPROVE/DENY ENTERING INTO A FACILTY AGREEMENT WITH RIVERSONG FOR MASONIC WEST RIVER PARK STAGE 14. APPROVE/DENY HUTCHINSON PILLARS PROJECT PRELIMINARY APPROVAL AND ALLOCATION OF FUNDING 15. APPROVE/DENY AUTHORIZING STAFF TO APPLY FOR THE BLANDIN COMMUNITY LEADERSHIP PROGRAM 16. APPROVE/DENY SETTING JOINT MEETING WITH MCLEOD COUNTY BOARD OF COMMISSIONERS ON FEBRUARY 21, 2019, AT 1:00 P.M. AT MCLEOD COUNTY SOLID WASTE FACILITY 17. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR FEBRUARY 26, 2019, TO REVIEW PARKS MASTER PLAN GOVERNANCE (T 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) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Library Board Minutes from November 26, 2018 b) Hutchinson Utilities Commission Minutes from December 12, 2018 (c) Economic Development Authority Board Minutes from January 2, 2019 NHSCELLANEOUS 19. STAFF UPDATES 20. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15010 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17-1 and WHEREAS, the following person has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Hutchinson Rotary Foundation $9,888.00 Donation Date 01 /17/2019 WHEREAS, such donation has been contributed to the Hutchinson Parks Department as the final reimbursement for the Rotary Park playstructure. The City would like to thank and acknowledge the Hutchinson Rotary Foundation for paying their balance two years early. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 12th day of February 2019. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, JANUARY 22, 2019 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: Citypolicy andpractices, 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. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Dave Sebesta, and Mary Christensen. Others present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Czmowski, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Hunter's Ridge Community Church (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to ajiliate the City Council with, or express the City Council's preference for, any religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15000 — Resolution Accepting Cash Donation of $2000.00 from Village Ranch, Inc. for the Hutchinson Police Department Motion by Cook, second by Sebesta, to approve Resolution No. 15000. Council Member Cook asked if the City ever sends out thank you cards for donations received. Mr. Jaunich noted that it has not been practice, but staff can certainly begin to send out thank you cards for donations given by individuals and organizations to the City. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you 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 speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Organizational Meeting of January 7, 2019 (b) Regular Meeting of January 8, 2019 Motion by Cook, second by Christensen, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items iste or consi eration 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 CITY COUNCIL MINUTES JANUARY 22, 2019 (a) Consideration for Approval of Resolution No. 15001 — Amendment to the McLeod County Hazard Mitigation Plan (b) Consideration for Approval of Wastewater Treatment Facility MBR Aeration Blower Replacement (c) Consideration for Approval of Items for 5t' Avenue South Reconstruction (Letting No. 1, Project No. 19-01) 1. Resolution No. 15002 - Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15003 - Resolution Receiving Report and Calling Hearing on Improvement (d) Consideration for Approval of Items for Technology Drive Construction (Letting No. 5, Project No. 19-06) 3. Resolution No. 15004 - Resolution Ordering Preparation of Report on Improvement 4. Resolution No. 15005 - Resolution Receiving Report and Calling Hearing on Improvement (e) Reappointment of Jonny Block to Hutchinson EDA to December 2024 (f) Consideration for Approval of Resolution 15006 - Resolution Supporting the Increase of Local Government Aid in the 2019 Legislative Session (g) Consideration of Approval of Acquisition of a Toro Groundsmaster Mower for Parks Department (h) Consideration for Approval of Resolution No. 15007 - Resolution Approving Preliminary and Final Plat for Bear Paw Addition with Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15008 - Resolution Approving Site Plan for Hutchinson Health Addition with Favorable Planning Commission Recommendation 0) Consideration for Approval of Issuing Short -Term Gambling License to Minnesota Deer Hunters Association on April 6, 2019, at McLeod County Fairgrounds (k) Consideration for Approval of Issuing Short -Term Gambling License to Upper Midwest Allis Chalmers Club on July 28, 2019, at McLeod County Fairgrounds (1) Claims, Appropriations and Contract Payments Items 7(h) and 7(i) were pulled for separate review. Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(h) had further discussion. Roman Bloemke and Sara Werk, applicants for preliminary and final plate for Bear Paw Addition, presented before the Council. Mr. Bloemke provided further information on the project. Motion by Cook, second by Czmowski, to approve Item 7(h). Motion carried unanimously. Item 7(i) had further discussion. A representative from Wold Architects presented before the Council. The representative provided a brief overview of the expansion project at Hutchinson Health. Motion by Czmowski, second by Sebesta, to approve Item 7(i). Motion carried unanimously. 2 CITY COUNCIL MINUTES JANUARY 22, 2019 PUBLIC HEARINGS — 6:00 P.M. 8. APPROVE/DENY SMALL CITIES DEVELOPMENT PROGRAM RENTAL REHAB APPLICATION (a) Resolution No. 15009 — Resolution of the City of Hutchinson in Support of a Small Cities Development Program Rental Rehab Project for 907 Dale Street Apartments Jean Ward, HRA Executive Director, presented before the Council. Ms. Ward reviewed the Small Cities Development Program rental rehab application materials. The information reviewed included �ainin� citizen input on identifying community development and housing needs of the community including the needs of very low and low income persons; the proposed SCDP activities within the application and the benefiting location(s); the overall costs and project financing, the implementation schedule, the past performance of staff proposed to carry out the project and discuss compliance with historic requirements. Judy Flemming, Program Coordinator, provided specific details on the 907 Dale Street Apartments project and financial requirements associated with it. The application deadline for the Small Cities Development Program is February 28, 2019, and awardees are notified in June. Morgan Baum, 925 2nd Avenue SW, presented before the Council. Ms. Baum noted that she has concerns with the survey that was distributed to local employers in 2018. Ms. Baum noted that not all employers contacted completed the survey. It was noted at a workshop in June that the HRA would be considering distributing a citizen survey at another time and would maybe consider small employers instead of large employers only. Mr. Jaunich clarified that a citizen survey is planned to go out this year and the Council could add a question related to housing and also child care. Motion by Cook, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Christensen, to approve Resolution No. 15009. Motion carried unanimously. COMMUNICATIONS REQUESTS AND PETITIONS e purpose oJ this portion oJ 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. LIQUOR HUTCH 2O18 YEAR END REPORT Candice Woods, Liquor Hutch Manager, presented before the Council. Ms. Woods provided a year end review of activities at the Liquor Hutch. The presentation included information on sales, general fund transfers, customer counts, average sale per customer, gross profits percentage, expenses, trends, successful ongoing promotions, operational challenges and a new marketing program that is being considered. 10. CREEKSIDE 2018 YEAR END REPORT Andy Kosek, Creekside Soils Manager, presented before the Council. Mr. Kosek provided a year- end review of activities of the compost facility. The overview included information on source - separated organic material tonnages received at the site, bagged sales volumes, 2018 highlights and budget comparisons amongst the refuse funds and compost funds. Council Member Cook clarified that Creekside is cash flowing and is doing well and healthy. Mr. Kosek also spoke about current equipment and potential future needs. UNFINISHED BUSINESS 11. REVIEW OF ORDINANCE 18-793 — AN ORDINANCE AMENDING AND REPLACING CHAPTER 95 - PUBLIC PARKS CITY COUNCIL MINUTES JANUARY 22, 2019 Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that late last year staff had presented potential changes to the public parks ordinance. At that time, the Council had made suggestions related to the use of sidewalks and trails running through parks, Tartan Park being the only park that was tobacco -free, use of glass within parks and a few other things. The Park Board considered these suggestions and made some clarifications to address the suggestions. Language has been added to Section 95.03 to address concerns related to use of trails and sidewalks within parks. The Park Board is recommending that all parks be tobacco free. Section 95.13 is recommended to be removed. Council Member Christensen noted that she has some concerns with all parks being tobacco -free, especially not allowing a veteran to have a cigarette in Veterans' Memorial Park. She also has concerns with enforcement of tobacco -free parks. Council Member Sebesta noted that he agrees with Council Member Christensen. Council Member Cook voiced his support of having all parks being tobacco -free. Dolf Moon, PRCE Director, noted that the Park Board's opinion is to be cognizant of youth and second-hand smoke and the rights of park utilizers. Discussion was held regarding enforcement issues. The Council concurred that other changes incorporated into the ordinance cover what the Council had suggested last November. Council Member Czmowski noted that he feels strongly about VMF baseball field being tobacco - free as well as other parks that draw children. It was noted that there could be issues if the campground was tobacco -free. Council Member Sebesta noted that he would be in favor of event organizers asking individuals not to smoke in a park during an event. However, he would not necessarily be in favor of all parks being tobacco -free or specifically not Veterans' Park. The Council concurred that they would like all parks to be smoke -free other than Veterans Park. A draft ordinance will be before the Council at an upcoming meeting for consideration. Council Member Cook asked about allowing an exception for Native American ceremonial events where smoking is a part of that. The Council was accepting of this exception. NEW BUSINESS 12. APPROVE/DENY 2019 CITY OF HUTCHINSON LEGISLATIVE PRIORITIES Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that this document is similar to what was adopted last year. A few changes and/or additions have been included based on discussions at the last Council meeting. This document is used as a tool to communicate the City's legislative concerns and issues both to the public and to the City's local legislators. The document could be used when staff and elected officials make trips to the State Capitol. Council Member Cook clarified that this document would be emailed or sent to legislators. He asked that the following items be highlighted as areas of emphasis: local control, LGA, beer & wine, water quality regulations and river basin. General discussion was held regarding the priorities listed. .19 CITY COUNCIL MINUTES JANUARY 22, 2019 Motion by Czmowski, second by Christensen, to approve 2019 legislative priorities. Motion carried unanimously. 13. APPROVE/DENY SEEKING BIDS FOR COMPOST TURNER AT CREEKSIDE Andy Kosek, Creekside Manager, presented before the Council. Mr. Kosek noted that the compost turner at Creekside is scheduled to be replaced this year as it has been in use since 2004 and is wearing out. Staff has budgeted $450,000 for the purchase of the machine and the intentions are to finance the purchase. Mr. Kosek noted that there may be multiple machines that can satisfy the needs of the operation and there are no known cooperative purchasing contracts available to take advantage of. Motion by Czmowski, second by Sebesta, to approve seeking bids for compost turner. Motion carried unanimously. 14. APPROVE/DENY SEEKING PRICE QUOTATIONS FOR CAMPGROUND SEWER PROJECT Dolf Moon, PRCE Director, presented before the Council. Mr. Moon explained that eight of the twelve sites currently have issues with sanitary sewer hookups. It has been determined that it is best to pursue replacement of the sanitary sewer. Simply repairing the eight sites that have issues would be costly and likely wouldn't resolve long-term issues with the sewer main. As part of the replacement of the sanitary sewer, an additional two camp sites are planned for the east end of the current roadway. Also, when the sanitary sewer is replaced, provisions for future expansion of the campground will be provided. Restoration and other site work may be completed internally to reduce costs. Staff is requesting that the work be completed early in 2019 with completion no later than May 20, 2019 to allow for maximum use of the full service campsites. The Capital Projects Fund will fund the project. Motion by Sebesta, second by Cook, to approve seeking price quotations for campground sewer project. Motion carried unanimously. 15. APPROVE/DENY SETTING PUBLIC MEETING FOR PARKS MASTER PLAN OPEN HOUSE ON JANUARY 31, 2019, AT HUTCHINSON EVENT CENTER FROM 5:00-7:00 P.M. Matt Jaunich, City Administrator, explained that an open house is scheduled to review the Parks Master Plan. Motion by Cook, second by Sebesta, to set public meeting for Parks Master Plan Open House on January 31, 2019, from 5:00-7:00 pm at Hutchinson Event Center. Motion carried unanimously. 16. APPROVE/DENY SETTING A CLOSED COUNCIL WORKSHOP ON FEBRUARY 12, 2019, AT 4:00 P.M. TO DEVELOP OR CONSIDER OFFERS OR COUNTEROFFERS FOR THE PURCHASE OR SALE OF REAL OR PERSONAL PROPERTY PURSUANT TO MINNESOTA STATUTE 13D.05, SUBD. 3(C) Matt Jaunich, City Administrator, explained that this workshop is related to identifying potential properties for the new police facility. Motion by Christensen, second by Cook, to set closed Council Workshop on February 12, 2019, at 4:00 p.m. Motion carried unanimously. 5 CITY COUNCIL MINUTES JANUARY 22, 2019 GOVERNANCE (T 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, po icy development and governance process items.) 17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Planning Commission Minutes from November 20, 2018 �b) Public Arts Commission Minutes from December 13, 2018 c) Hutchinson Housing & Redevelopment Authority Board Minutes from December 18, 2018 (d) City of Hutchinson Financial Report and Investment Report for December 2018 NHSCELLANEOUS 18. STAFF UPDATES Matt Jaunich — Mr. Jaunich noted that interviews for the police chief position are taking place next week. He also reminded everyone of the open house scheduled for the Park Master Plan on January 31, 2019, at 5:00 p.m. at the Event Center. 19. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook reminded everyone that the Community Book Read is going on and encouraged residents to take part. Council Member Cook also reminded everyone that the public comment period on the pillar project goes through January 31, 2019. Comment sheets are at the City Center and on the public arts web site and the City's web site. Sculpture stroll submittals are also being accepted at this time. 20. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, SUBD. 3(a) TO CONDUCT CITY ADMINISTRATOR PERFORMANCE REVIEW The Council convened into closed session to conduct the city administrator's performance review with a motion made by Czmowski, seconded by Sebesta. Motion carried unanimously. The Council reconvened into open session at 8:46 p.m. Motion by Cook, second by Czmowski, to establish a performance rating of 4.51 - outstanding, with a 6% performance increase. The performance increase will become effective March 10, 2019. Motion carried unanimously. ADJOURNMENT Motion by Czmowski, second by Christensen, to adjourn at 8:47 p.m. Motion carried unanimously. rel HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, JANUARY 22, 2019, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS Call to Order Mayor Forcier called the meeting to order. Members present were Mary Christensen, Steve Cook, Chad Czmowski and Dave Sebesta. Others present were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and John Paulson, Environmental Manager. DISCUSSION/REVIEW ITEMS 1. Review Lakes and River Basin Improvements Preliminary Design Study John Paulson, Environmental Manager, presented before the Council. Mr. Paulson reviewed the agenda for today's workshop which includes a variety of items related to the preliminary design study completed on the lakes and river basin improvements. Mr. Paulson introduced Todd Hubmer from WSB and Associates. Mr. Hubmer explained that the goal of the Campbell and Otter Lakes restoration project include improving water quality, reducing watershed soil losses, restoring habitat, enhancing recreation and replenishing lost top soil. Some items that have been completed to date on this project include reviewing historical data related to lakes; establishing a TAP (Technical Advisory Panel) and setting up Mylink; identifying issues in the categories on water quality, habitat and recreation; selecting top priority projects using TAP feedback; and estimating general costs and determining potential funding sources for projects. Mr. Hubmer spoke about total maximum daily load and data collected on Otter and Campbell lakes. Other items reviewed in the study included installing new BMP at the forebay, shoreland restoration, wetland restoration, curly leaf control, rough fish control, increasing recreational activities such as additional canoe/kayak launches, fishing piers and boat launches, removal of sediment and stream restoration. Mr. Hubmer then spoke about lead agencies and funding sources related to the specific projects. He also reviewed cost estimates for each potential project. Mr. Hubmer noted that the next steps for the City to determine are to identify projects to pursue, apply for funding sources and create preliminary and final designs of identified projects. Council Member Cook asked when conversations should be held with local, state and federal legislators regarding the projects embedded in the study. Mr. Humber noted that it is never too soon to start discussions as sessions move forward. It was noted that public engagement will be a part of the process as any projects move forward. Council Member Czmowski asked if the fishing pier could perhaps be moved to where more fish are located. Other communities were discussed that studies are taking place in. Updates will continue to be given as progress moves forward. Motion by Czmowski, second by Christensen, to adjourn at 5:20 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL SUMMARY OF CLOSED MEETING PROCEEDINGS CITY ADMINISTRATOR ANNUAL PERFORMANCE REVIEW SESSION January 22, 2019 On January 22, 2019, the Hutchinson City Council closed its meeting to conduct the annual performance review for the City Administrator, Matthew Jaunich. Individuals present included Hutchinson Mayor Gary Forcier, City Council members Mary Christensen, Steve Cook, Chad Czmowski, and Dave Sebesta, City Administrator Matthew Jaunich, City Attorney Marc Sebora, and Human Resources Director Brenda Ewing. Mr. Jaunich exercised his right to close the proceedings to the public. Motion by Czmowski, second by Sebesta, to convene into closed session at 7:48 p.m. to conduct the city administrator performance review. The motion passed unanimously. The Council then proceeded into a closed session. The Council reviewed with Mr. Jaunich his performance for calendar year 2018, in the following categories: Organizational Management, Fiscal/Business Management, Program Development, Relationship & Communication with the Council, Long -Range Planning, and Relationship with Public & Outside Organizations. Mr. Jaunich provided the Council with a summary of his progress in the positon of City Administrator for calendar year 2018, and his proposed future objectives and projects. Motion by Czmowski, second by Christensen, to close the closed proceedings at 8:46 p.m. The motion passed unanimously. The Council moved back into open session. Motion by Cook, second by Czmowski, to establish a performance rating of 4.51 - outstanding, with a 6% performance increase. The motion passed unanimously. Motion by Czmowski, second by Christensen, to adjourn the meeting at 8:47 p.m. The motion passed unanimously. HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Resolution 15011 Transferring Funds to the 2018 Construction Fund and General Fund Department: Finance LICENSE SECTION Meeting Date: 2/12/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Consent Agenda Time Requested (Minutes): 3 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: This resolution identifies the following transfers of monies related to the 2018 street projects: 1) Transfers from the Water, Sewer and Storm Water funds to the 2018 construction fund to finance a portion of the project costs related to enterprise fund infrastructure installed during the roadway improvement projects. 2) Transfers from the 2018 construction fund to the general fund to cover operating expenses for engineering services and project administration. 4) A transfer from the 2018 construction fund to the capital projects fund for future comprehensive plan updates and other city infrastructure planning needs. 5) A transfer from the Storm Water fund to finance baseball field improvements necessary due to the Linden Park storm water retention pond project. This is the second of two transfers for ballfield improvements with the first transfer occurring in 2017. The transfer was budgeted within the 2018 Storm Water fund. All transfers in this resolution were reviewed by Public Works, Finance and Administration and presented to the Resource Allocation Committee as the annual improvement projects were discussed. BOARD ACTION REQUESTED: Approve fund transfers per Resolution 15011. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 15011 TRANSFERRING FROM WATER, SEWER, STORM WATER FUNDS TO THE 2018 IMPROVEMENT BOND CONSTRUCTION FUND AND FROM THE 2018 IMPROVEMENT BOND CONSTRUCTION FUND TO THE GENERAL FUND & CAPITAL PROJECTS FUNDS FOR ENGINEERING AND PROJECT ADMINISTRATION FEES AND FROM THE STORM WATER FUND TO THE CAPITAL PROJECTS FUND FOR FINANCING BASEBALL FIELD IMPROVEMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT, $235,785 is hereby transferred from the Water Fund to the 2018 Construction Fund. THAT, $257,221 is hereby transferred from the Sewer Fund to the 2018 Construction Fund. THAT, $265,670 is hereby transferred from the Storm Water Fund to the 2018 Construction THAT, $392,307 is hereby transferred from the 2018 Construction Fund to the General Fund for Engineering Fees. THAT, $87,694 is hereby transferred from the 2018 Construction Fund to the General Fund for Project Administration Fees. THAT, $87,694 is hereby transferred from the 2018 Construction Fund to the Capital Projects Fund for the purpose of Comprehensive Planning and other planning needs. THAT, $125,000 is hereby transferred from the Storm Water fund to the Capital Projects Fund for the purpose of financing baseball field improvements necessary due to the Linden Park storm water retention pond project. THAT, said transfers are hereby effective and apply to the 2018 fiscal year. Adopted by the City Council this 12th day of February 2019. ATTESTED: Matthew Jaunich City Administrator Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL ci=v�fAa� Request for Board Action 7AL =-ft Designation of Depositories of City Funds in Commercial Banks and Financial Agenda Item: Institutions Department: Finance LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Per state statute, each year the city must designate certain commercial banks and financial institutions as approved depositories for City funds and investments. City council approved the designated depositories at the January 7th organizational meeting, but I would like to add RBC Capital Markets, LLC as another broker for investment options. My contact at RBC recently moved there from Ehlers & Associates and is able to offer a wide range of CDs and Municipal Bonds, similar to how Oppenheimer operates. Adding RBC will give me one more good option to compare available investments and get the best yield for the city. BOARD ACTION REQUESTED: Approve Resolution #15012, revising the 2019 designated depositories for the City. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON RESOLUTION NO. 15012 DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the following named banks and institutions, which are authorized to do a banking business and act as depositories in Minnesota, be and they hereby are designated depositories of the Public Funds of the City of Hutchinson in the County of McLeod, State of Minnesota, by the City Council of said City, for the term commencing February 13, 2019, through December 31, 2019: CITIZENS BANK & TRUST COMPANY, HUTCHINSON, MN FIRST MINNESOTA BANK, HUTCHINSON, MN MIDCOUNTRY BANK, HUTCHINSON, MN HOME STATE BANK, HUTCHINSON, MN WELLS FARGO, HUTCHINSON, MN WELLS FARGO ADVISORS - MINNEAPOLIS, MN OFFICE UBS FINANCIAL SERVICES INC - WAYZATA, MN OFFICE OPPENHEIMER & CO, INC - MINNEAPOLIS, MN OFFICE RBC CAPITAL MARKETS, LLC - MINNEAPOLIS, MN OFFICE Upon terms and conditions following, to -wit: THAT this designation is subject to the right of said City of Hutchinson, Minnesota to modify, vacate or revoke the same according to law, and also subject to any depository agreement executed pursuant to Minnesota Statutes, Section 118.01 and Section 475.66, and THAT the City Administrator and Finance Director are authorized to sign documents authorizing transfer of City of Hutchinson funds. BE IT FURTHER RESOLVED: THAT the Finance Director of the City of Hutchinson is hereby authorized and directed to deposit in said banks and institutions in special funds to be known as "City of Hutchinson" all monies that may come into his hands. RESOLUTION NO. 15012 BE IT FURTHER RESOLVED: page 2 THAT a copy of this resolution is to be filed by the Finance Director with each of the banks and institutions so designated. Adopted by the City Council this 12th day of February 2019. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=qf� Request for Board Action 7AL =-ft Agenda Item: Consideration of Crow River Winery Dispensing Wine at Minted Patina Event Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Crow River Winery has requested to dispense wine at the Minted Patina event being held at the McLeod County Fairgrounds on March 29 & 30, 2019. Crow River Winery is requesting to offer wine by the glass sales. Hutchinson City Code, and state statute, allow for a liquor license holder from an adjacent municipality to dispense liquor at a municipally -owned facility as long as the governing board authorizes the activity. Crow River Winery has submitted a certificate of insurance naming the City of Hutchinson as an additional insured. Crow River Winery was authorized by the Council to conduct the same type of activity at past events. BOARD ACTION REQUESTED: Authorize Crow River Winery to dispense wine at Minted Patina event on March 29 & 30, 2019, at McLeod County Fairgrounds Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: W I N E R Y January 24, 2019 City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 Re: Minted Patina Market Dear Hutchinson City Council Members: Crow River Winery would like to request permission from the City to offer wine by the glass sales at the Minted Patina Market which will be held at the McLeod County Fairgrounds on March 29 and 30, 2019. The event itself is hosted by Meshed Designs of Hutchinson. Crow River Winery is a locally -owned, operated and licensed Minnesota Farm Winery. Type Code: FWN Winery License Number: 6302011 Permit Number: 80780 TTB Registry Number: BWN-MN15039 We were approved to provide glass sales at this event last year, as well as other Hutchinson community events throughout the year. Please feel free to contact me with questions. Best, Chelsey Schrupp General Manager Crow River Winery cschrupp@CrowRiverWinery.com Crow River Winery, LLC 14848 Hwy 7 E. / Hutchinson, MN 55350 320-587-2922 W I N E R Y January 24 , 2018 City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 Re: Minted Patina Market Liquor Service Security Plan Location: Crow River Winery has been asked to provide wine sales to shoppers during the Minted Patina Market at the McLeod County Fairgrounds on March 29 and 30. The event will take place in the Fairgrounds Commercial Building. Identifying Consumers: Crow River Winery's policy is to ID every consumer and serve alcoholic beverages only to those who are 21+ with proper ID in accordance with Minnesota Law. Wine Sales Only: Crow River Winery will only serve wine by the glass during the event. Please feel free to contact me with questions. Chelsey Schrupp General Manager Crow River Winery cschrupp@CrowRiverWinery.com Crow River Winery, LLC 14848 Hwy 7 E. / Hutchinson, MN 55350 320-587-2922 �® CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 1 /24/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Associated Benefits and Risk Consulting 6000 Clearwater Drive Minnetonka MN 55343 CONTACT NAME: Jenny Saylor PHONE FAX A/c No Ext: 952-947-9700 A/C No: ADDRESS: jenny.saylor@associatedbrc.com INSURER(S) AFFORDING COVERAGE NAIC # INSURERA: SFM Mutual Insurance Company 11347 INSURED BOXEL-1 Boxelder Farm LLC INSURER B: United Fire & Casualty Company 13021 Crow River Winery LLC INSURERC: INSURER D7 Prieve Farms, LLC 20855 Kensington Blvd Lakeville MN 55044-7486 INSURERE: INSURER F : COVERAGES CERTIFICATE NUMBER: 1866892252 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICYNUMBER POLICY EFF MM/DD POLICY EXP MM/DD LIMITS B X COMMERCIAL GENERAL LIABILITY 60434327 6/30/2018 6/30/2019 EACH OCCURRENCE $ 1,000,000 CLAIMS -MADE X OCCUR DAMAGE TO RENTED PREMISES Ea occurrence) ccurrence $ 100,000 MED EXP (Any one person) $ 5,000 X Liquor Liability PERSONAL &ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER : GENERALAGGREGATE $2,000,000 POLICY PRO- JECT LOC PRODUCTS - COMP/OP AGG $ 2,000,000 Liquor Liability $ Included OTHER: AUTOMOBILE LIABILITY COBINEDSINGLELIMIT Ea Maccident $ BODILY INJURY (Per person) $ ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ PROPERTY DAMAGE Per accident $ HIRED NON -OWNED AUTOS ONLY AUTOS ONLY B X UMBRELLA LIAB X OCCUR 60434327 6/30/2018 6/30/2019 EACH OCCURRENCE $ 5,000,000 AGGREGATE $ 5,000,000 EXCESS LIAB CLAIMS -MADE DED RETENTION $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N 53625.207 6/30/2018 6/30/2019 X PER OTH- STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? ❑ NIA E.L. DISEASE - EA EMPLOYEE $ 1,000,000 (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) FOLLOWING ENDORSEMENTS APPLY TO THE PROJECTS AND NAMES LISTED BELOW ONLY IF REQUIRED BY WRITTEN CONTRACT OR AGREEMENT: GENERAL LIABILITY: Additional Insured - Vendors, Lessor of Leased Equipment, Managers or Lessors of Premises CG7174 07/11. Event Date: March 29-30, 2019 CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. McLeod County Fairgrounds 840 Century Ave SW Hutchinson MN 55350 AUTHORIZED REPRESENTATIVE �1 ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: g Short -Term Gambling License -McLeod County Pheasants Forever Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Yes Contact: Matthew Jaunich Agenda Item Type: Presenter: Matthew Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The McLeod County Pheasants Forever organization 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 March 9, 2019, at the McLeod County Fairgrounds. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing a short-term gambling license to McLeod County Pheasants Forever on March 9, 2019. 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: cay of 1 l l Hassan Street Southeast Hutchinson, MN 55354 (320) 587-5151 Fm (320) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications must be received at least 30 days before event in order to be considered Application Type Short Term Date(s) 3 % — f Fee: $30.00 MonlhlDavlYear — Mon thlDavlYear Or anization Information V1 Nafn e Phone Number IC�i S ' tv - '-7V,1 !. , t' c M I �C Address where regular meeting are held Ci _ State Zip Federal or State ID: yl - / q] 1 Day and time of meetings? IC-CSf I11,(JYIdOL/ ��ry�' Ilk 4V �Z Is this organization organized under the laws of the State of Minnesota? 4 yes ❑ no How long has the organization been in existence? _j 4„ t How may members in the organization? 1t d_L What is the purpose of the organization? _bl l��'],S t�i�L Aoyl ' In whose custody will organization records be kept? keZ }} Name &z dd�j Phone Number dz&!�� luf &A ) 5ryz, Address City State zip II Duly Authorized Officer of the Organization Information True Name Phone Number ` Residence Address City Stale Zip Date of Birth: 1 �; 1 / �L Place of Birth: Monthldaylyear City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes a--6 If yes, explain: City of Hurchinson Application for Gambling Devices License Page 2,9f3 Dcsiunated Gambling Manager (Oualifaed under Minnesota Statute §329) 1 6--e'l 34? True Name Phone Number Residence Address City State Zap Date of Birth: 2 1 f 1 Place of Birth: � ' F� Monthldaylyear Clity State Have you ever been convicted of any crime other than a traffic offense? ❑ yes kno If yes, explain: How long have you been a member of the organization? Game Information Location #1 V.-YSf 1 Name of location whe a game wil e played Phone Number Address of location i here game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: through 3-9-6 Hours of the day gambling devices will be used: From �� To ? Maximum number of player: LlV'( Will prizes be paid in money or merchandise? money Wmerchandise Will refreshments be served during the time the gambling devic will be used? y�'l es ❑ no If yes, will a charge be made for such refreshments? es ❑ no Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City State Zip Dates) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From PM To PM Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes ❑ no City of Hutchinson Application for• Gambling Devices License Page 3 of 3 Officers of the Or aniaa�tion,i` necessat , list additional names on se arate sheet Name Title i o at/(-/s k j nl E t, lnsy►,Y1AJ 55-3 c� Residence Address City State Zip L-0oRI �- e �S'eCV 0-- -�-_-� IVY �,• i��- �rC-f-�+ f� �r ' ,] Titre ids ` E Nld 0t4 W¢+'k wee Address city State Zip orz4m rh m -ryta s u_Y -r-� Name 1 Title Residence city State Zip Officers or Other Persons Paid for Services Information (if necessa , list additional names on se arate sheet) Name Title Residence Address City State Zip Name Title Residence Address City State Zip Name Title Residence Address city State zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices {as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? L, x Gambling Manager U'yes ❑ no Authorized Officer yes ❑ no Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. y 14.20 vela ng to gambling and I will familiarize myself with the contents thereof. Signsre of authorized officer of organization ofgambling manager- of organization Internal Use D to - Z�- ate City Council ❑ approved ❑ denied Notes: f HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Short -Term Gambling License - Crow River Cutters Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Y, Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Crow River Cutters of the National Wild Turkey Federation, a nonprofit organization, 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 February 15 & 16, 2019, at the McLeod County Fairgrounds. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Crow River Cutters on February 15 & 16, 2019, at McLeod County Fairgrounds. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: t11 Hassan Street 5outhcast Hutchinson, iV1N 55350 (320) 587-5151/Fax: (324) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 655 and Minnesota Statutes Chapter 349 All applications must be received at least 30 days before event in order to be considered Application Type ❑ Short Term Date(s) Fee: $30.00 MonthlDa i'Year—Monlh IYear Organization Information t �� c4r-ow le"Vey L' ��r-r�ae. s iu�T► ' — 37.p 'S 3 37 Name Phone Number 5 -*E kv^l 550 Address where regular meeting are held 011' State Zip Day and time of meetings? J 5T GdG"a% y"ef. 4/ ownw `7-'oO Is this organization organized under the laws of the State of Minnesota? JKyes ❑ no How long has the organization been in existence? Z� How may members in the organization? 26��) What is the purpose of the organization? C)AV4 AG 1r A4VO 7WO A^� In whose custody wil l organization records be kept? 141edAWZ- C3 g' 3 137s� Name Phone Number Address Gly State zip Du! kuthorized Officer of the Organization Information AidAW1 4 Ilea/ Lob True Name SZI C4(je or �E Residence Address Date of Birth: de _I Z7 1 144,5 Monthldaylyear 1yrCa1^A PA( City Place of Birth: Have you ever been convicted of any crime other than a traffic offense? If yes, explain: j!5R-v I37A—` Phone Number NAI 5555& State zip W074o&006 CAWOWV Gity state ❑ yes Ono ON of Hutchinson Application jar Bingo Gambling Devices License Page 2 of 3 Desi gnated Gamblin Manager (Qualified under Minnesota Statute '329 ►[ire L G Low 25ZO 5931974,5 True Name Phone Number Residence Address City State Zip Date of Birth: Q5 1 Z 7 1 /96F Place of Birth: fir/ 4tZWA*'UY Monflildaylyear City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes t�Go If yes, explain: How long have you been a member of the organization? Game Information Location #1 A-�L V-A Name of'location where game will be played Phone Number Q�/.�i�E _ Address of location where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: �� bl� through Z- 200 AM 14) �AM Hours of the day gambling devices will be used: From PM To �.YM l Maximum number of player: Z00 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 char a be made for such refreshments? Xyes ❑ no Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City 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 _.,YM To PM Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes 1] no Officers of the Organization (if necessarv. list additional names on seuarate sheer) it ►&bAJe Nance AJ�AlArj-OW, Residence Address L-1GV-#V 66$4S 7 Name City D4'W `'F Titl`e A/ State Zip rl i Title 4, 712- 705 A& t"'N� ROL) 63x25 Residence Address City State Zip City ofHiaehinson Appficalivn'or Bingo Gambling Devices License Page 3 of 3 Name Residence Address Title .State zip— Officers or Other Persons Paid for Services Information (if necessary, list additional names on separate sheet Name Title ResidenceAddress City Slate Zip Nance Title Residence Address City Stale zip Name Title Residence Address Ci Slate zi Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operat'on and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapt r 349)? Gambling Manager P yes ❑ no Authorized Officer -�6 yes ❑ no Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, 1 have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambbng and I will familiarize myself with the contents thereof. Signature of juthorized officer of organization Signature of gambling manager of organization Internal Use Only City Council ❑ approved ❑ denied Notes: 11 1- /4-270l4? Date Da! HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Temporary Liquor License - Hutchinson Jaycees Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Y, Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Hutchinson Jaycees have submitted a temporary liquor license to dispense liquor at an event they are hosting on February 23, 2019, at the Days Inn. The Hutchinson Jaycees are a nonprofit organization and meet the requirements for a temporary liquor license. BOARD ACTION REQUESTED: Approve issuing temporary liquor license to Hutchinson Jaycees on February 23, 2019, at the Days Inn. 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: Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division (D 445 Minnesota Street, Suite 222, St. Paul, MN 55101 AOL 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 Aleabol & Gambling Enforcement APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Name of or anization Date organized Tax exempt number + uL 4tno� a Address ' P J Name of person making application C- Date(s) of event Organization officer's name Organization officer's name Organization officer's name Organization officer's name Location where permit will be used. If an outdoor area, describe. JbA;�S `Z q 1 J000 AA) - -i-I qv+G1Li'1.S0n City _ State Zip Code G�L`rsh� Minnesota 3 S� Business phone Home phone Type of organization n Club [] Charitable D Religious Other non-profit City State Zip Code ��iLsl� Sa Y� Minnesota city State Zip Code i Minnesota City state Zip Code Minnesota City State Zip Code Minnesota y� ti 5 5 5 CJ If the applicant will contract for intoxicating liquor service give the name and address of the liquor fin providing the service. i L �,L t •'ce�'�. .te.:rG� �t.rv�e�r¢t yy ! � J if � A_ � l9� F; A r ! � _L o 5 �� r �j � ;,_, (.� � L [ 6'ic- Sure,r L Ij If the applicant will carry liquor liability insurance please provide the carrier s name and amount of c�opverage. < -e v�s{� f G r, G �C3v GLY►+� �c5 `— '� f APPROVAL APPLICATION MUST SE APPROVED BY CITYORCOUNTY BEFORE SVBMITTING TOALCOHOL ANDGAMBLING ENFORCEMENT Il'f wt. , jh ci fJl-� City or County approving the license o&12- S. n Fee Amount i /2-4/?_0I G3 Fate Fee Pai Date Approved Permit Date Ciij or County E-ma 11 Address City or County Phone Number Sig nature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement CLERKS NOTICE. Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event. ONE SUBMISSION PER EMAIL, APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVAL$ WILL BE SENT BACK VIA EMAIL, E-MAIL THE APPLICATION SIGNED BY CITY/COUNTY TO AGE.TEMPORARYAPPLICATION(&STATE.MN.US lkk R CERTIFICATE OF LIABILITY INSURANCE FDATE {11412019 Y} �� 011141zaf9 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT., If the certificate holder is an ADDITIONAL INSURED, the pollcy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Scott Rupp NAME: Insurance By Design, LLC PHONE (952j 808-7002 Pax {952y 808-7004 C No. a Fall_ AIC Na 4131 Old Sibley Memorial Hwy -MAIL scottr@insurancedeslgn.net ADDRESS: Suite 201 INSURER(S)AFFORDING COVERAGE NAIC k Eagan MN 55122 Scottsdale Insurance Company INSURERR: P Y INSURED INSURER B : JCI Mlnnmia INSURER C : 1405 N Lilac Drive INSURER D : Suite 4125 INSURER E: Golden Valley MN 55422 INSURER F COVERAGES CERTIFICATE NUMBER: CL1892003191 REVISION ?41]MRPP— THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE AIJUL INSD bUBRI WVD POLICY NUMBER POL E F MMIODIYYYY POLICY EXP MMIDDIYYYY LIMITS X COMMERCIAL, GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 EI5E PRM lODODD $ CLAIMSMADL©OCCUR X $2,500 Deductible MED E7(P (Any one person) 2 500 $ X EXCI Athletic Participants PERSONAL SADVINJURY $ 1,000.000 A Y BCS0037334 09/22/2018 09122J2019 GFN'I- AGG R FGATF L.1 MIT Al'Pt.I ES PIS R GENERALAGGREGATE $ 2,000,000 .. PROT � ❑ 1 I1OLICY JEDI qG PRODUCTS $ 2,000,000 Location Aggregate $ 5,000,000 OTHER: AUTOMOBILE UABILITY COMBINED SINGLE LIMIT Ea acpidenl $ BODILY INJURY (Per person) s ANY AUTO QY4NIi❑gNAUTOS SC FOUL Li[] AUTOS IY BODILY INJURY IPer accidenl] $ HIRLD NON -OWNED PROPERTY DAMAGE Per accident 5 AUTOS ONLY AUTOSONLY S UMBRELLA LIAB OCCUR EACH OCCURRENCE S AGGREGATE $ EXCESS LIAR CLAIMS -MADE ULD I I RFIFNI'ION S $ WORKERS COMPENSATION I PER OTH- AND EMPLOYERS' LIA BILtTY YIN STATUTE I ER E.L. EACH ACC I DENT $ A NV PR QP R I E I ORAPAR FNf_RIFX FCU IIVE OFF GE=RIMFWE3ERECCI.UDEn7 ❑ NIA E.L. DISEASE - EA EMPLOYEE $ (Mandatory in NH) If yes, desm" under E.L. DISEASE - POLICY LIMIT $ DESCRIP I -ION OF OPERATIONS below Liquor Liability Each Occurrence $ 1.000,000 A BCS0037334 09/2212018 09/22/2019 Annual Aggregate $ 1,000.000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is mquirod) Provides evidence of insurance for the Hutchinson Jaycees as respects the Hutchinson Casino Night hela on February 23, 2019. City of Hutchinson Is named Additional Insured under the General Liability per written contract. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Hutchinson ACCORDANCE WITH THE POLICY PROVISIONS. 111 Hassan Street SE AUTHORIZEO REPRESENTATIVE Hutchinson MN 55350 � 1 © 1988-2015 ACORD CORPORATION. All rights reserved- ACORD 25 (2016103) The ACORD name and logo are registered marks of ACOR❑ � Concessions Issued 5239047 Eapites, 5i112020 |# 4532130 ADAMJFINK 591Maw m S H @cm UN 35* 2901 Ea �Secew%tus online at www gelboscom klicha6lCha,el.fXffi R Hutchinson City Center 111 Hassan Street SE Hutchinson, MIN 55350-2522 320-587-5151/Fax 320-234-4240 February 12, 2019 The Honorable Elaine Chao Secretary, US Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590 Dear Secretary Chao, City of Hutchinson is pleased to support the US Highway 212 Rural Freight Access project for consideration of federal financial assistance under the Infrastructure for Rebuilding America (INFRA) Program. This critical project expands 10 miles of US Highway 212 in Carver County, Minnesota from a two-lane undivided rural highway to a four -lane divided expressway facility extending from the City of Norwood Young America (County Highway 34) to the City of Cologne (County Highway 36 western intersection) and from the City of Cologne (County Highway 36 eastern intersection) to the City of Carver (County Highway 11). The corridor is part of the National Highway System and is one of the most important economic and highway freight corridors in the State of Minnesota and the Upper Midwest region, connecting the Twin Cities to South Dakota and beyond. US Highway 212 provides a critical connection for agricultural and industrial areas throughout the region. In addition, it is identified as a high priority "Tier One" Truck Corridor by the Metropolitan Council. Carver County and MnDOT have completed an extensive planning effort to determine an innovative, cost-effective approach to expand US Highway 212 and address serious safety, access, and mobility issues. The proposed project will expand US Highway 212 to a four -lane divided expressway, addressing the existing undivided two-lane gap in the Twin Cities' highway network, which negatively affects freight movement and economic development initiatives. This project will benefit the highway freight network, improving a critical connection to and from the Twin Cities metropolitan area and meet the priority objectives of the INFRA funding program by emphasizing economic vitality, leveraging non-federal funding sources of infrastructure investment, and deploying innovative technology and financing approaches. Specifically, the City of Hutchinson has significant transportation needs relative to commercial, industrial/manufacturing (significant local freight hauling), agricultural, commuter and recreational traffic. Also, the City of Hutchinson has been assigned an interregional corridor (IRC) by the Minnesota Department of Transportation (MnDOT) consisting of State Highway 22 to US Highway 212 and ultimately connecting to Interstate 494. Please note that the City of Hutchinson is a regional population center currently not provided direct access to a continuous four -lane highway system and that these improvements to US Highway 212 would be a significant step in improving this IRC's connectivity. On behalf of City of Hutchinson, I would like to urge your support for Carver County's INFRA Program application for the US Highway 212 Rural Freight Access project. Sincerely, Gary Forcier Matt Jaunich Kent Exner City of Hutchinson City of Hutchinson City of Hutchinson Mayor City Administrator DPW/City Engineer HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Small Cities Development Program (SCDP) Rental Rehab Application Department: HRA LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Jean Ward Agenda Item Type: Presenter: Jean Ward Reviewed by Staff Consent Agenda Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Section B and Section B attachments, required for submission of the SCDP Rental Rehab application for 907 Dale Street Apartments (aka Southdale Apartments) have been completed subsequent to mailing the General Information Notice to Tenants via certified mail on February 5, 2019. If Section B and Section B attachments are approved,the SCDP application will be submitted by February 28, 2018. BOARD ACTION REQUESTED: Approval of Section B and Section B Attachments as part of SCDP Rental Rehab application Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: Section R Describe the Need for this activity in the area to be served. 1. Unique needs/target area needs -inadequate supply of rental, elderly housing, or other. 907 Dale Street Apartments are a NOAH (Naturally Occurring Affordable Housing) project with unsubsidized affordable rents, and is important to preserve for the Hutchinson rental inventory. Market Rate General Occupancy workforce housing is in short supply as evidenced by the September 2018 Market Rate General Occupancy Vacancy rate in Hutchinson of 2.76%. 2. If the planned activity is targeted to a pre -determined multi -family rental building(s), attach evidence that participating landlord(s) gave tenants the General Information Notices. See attached certified -mail tracking for the mailing of the General Information Notice to tenants on February 5, 2019. 3. If multi -family - please provide pictures of the exterior (roof, siding, windows, foundation) which show the condition of the building. See attached UM Group, Inc. Property Condition Assessment Report. Describe the Impact of this activity in the community 1. Describe the community's recent history and experience under taking similar activities. Recently completed the SCDP downtown rental rehab project (CDAP 14-0043-0-FY15), which rehabbed 8 rental properties for a total of 39 units. 2. Describe the administrator(s) recent history and experience undertaking similar activities. Recently completed the SCDP downtown rental rehab project (CDAP 14-0043-0-FY15), which rehabbed 8 rental properties for a total of 39 units. 3. Are there an adequate number of lead certified contractors near the target area? Please elaborate. Yes, there are 5 lead certified contractors on the HRA Contractor list. 4. Describe any other existing or expected area activities that may positively affect the viability of the proposed project. The city has scheduled for 2019, over $2.OM for street and trail improvements, directly adjacent to 907 Dale Street SW Apartments from Dale Street to Main Street. 5. Describe how the program was marketed to contractors in the area. If there is an inadequate amount of contractors, address how this will be handled. HRA staff has a "Contractors Wanted" poster posted in the Hutchinson Building Department. In addition staff reviews the list of licensed Lead Supervisors from the MN Department of Health and contacts contractors near Hutchinson to. see if they are interested on being on the HRA Contractor List. 6. Provide the proposed scope of work and identify work items that would be completed with SCDP funds. (Note: SCDP funds cannot be used for maintenance items such as parking lot resurfacing, replacing appliances, painting, etc.) See attached Property Condition Assessment Report and Improvement Breakdown Spreadsheet. Important -Please attach. In order to show interest, the application must provide acceptable documentation that there are a significant amount of LMI households (rents and incomes) that are eligible for funding. This documentation could include interest statements or a recently updated waiting list (attach). All interest documentation should include documentation that property owners were informed of the following: • That 51% or more of unit(s) are occupied by LMI households at affordable rents (see SCDP A-Z Guide — "Federal Objective for Applicants" section); See signed Intent to Participate form • That they cannot increase rents for LMI tenants paying 30% or more of their income for rent and tenant -paid utilities for the term of the SCDP loan; See signed Intent to Participate form • That the Rehabilitation activity is not a remodeling program (handicap accessibility improvements are permissible); See signed Intent to Participate form • The length and terms of the deferred SCDP loan and if applicable, SCDP installment loan terms; See signed Intent to Participate form • That Davis Bacon Wage Rates will apply when eight or more units are rehabilitated on one site and this requirement may cause the project to cost more; See Application, Loan and Rehab Process form • The maximum amount of the SCDP assistance; See signed Intent to Participate form • Example of affordability scenarios. See signed Intent to Participate form Describe how the proposed activities will make Cost Effective use of grant funds including coordination with, and use of, funds from other public and private sources. 1. Provide evidence of leverage resources, including in -kind contributions or innovative cost saving measures which include, but is not limited to, material donations, donated administrative costs, housing inspections, and permit fees waived. The 30% owner match will be covered by the GMHF loan and owner funds. 2. Provide evidence that the cost of the proposed activities per benefiting household is reasonable. This project is very cost effective; planning to conserve this rental housing stock at a SCDP construction cost of $10,212 per unit and total SCDP (including admin) cost of $11,744. If these units were lost, the replacement new construction cost would be $100,000 - $200,000 per unit depending on design and amenities. 3. Describe how repayments, interest, and income received from the grant during the grant period and following grant closeout will be used. All income generated by the grant, whether it be Program Income or not, must be used for allowable activity that meets a Federal Objective. All income generated by this grant will be used for an activity that meets a Federal Objective and may include activities that were SCDP projects in the past: rental rehab, owner occupied rehab and new construction affordability gap. 4. Are there are other funding sources besides SCDP funds and the building owner? GMHF Mezzanine Loan USPS.com® - USPS Tracking® Results Page 1 of 3 USPS Tracking® FAQs ) (https://www.usps.com/fags/uspstracking-fags.htm) Track Another Package + Tracking Number: 70181130000135800938 Remove X Your item departed our USPS facility in SAINT PAUL MN NETWORK DISTRIBUTION CENTER on February 5, 2019 at 11:24 pm. The item is currently in transit to the destination. In -Transit February 5, 2019 at 11:24 pm m Departed USPS Regional Facility m SAINT PAUL MN NETWORK DISTRIBUTION CENTER Cr v n Get Updates Text & Email Updates u Tracking History February 5, 2019, 11:24 pm Departed USPS Regional Facility SAINT PAUL MN NETWORK DISTRIBUTION CENTER Your item departed our USPS facility in SAINT PAUL MN NETWORK DISTRIBUTION CENTER on February 5, 2019 at 11:24 pm. The item is currently in transit to the destination. February 5, 2019, 10:14 pm Arrived at USPS Regional Facility SAINT PAUL MN NETWORK DISTRIBUTION CENTER https://tools.usps.coin/go/TrackConfirmAction?tLabels=70181130000135800938 2/6/2019 F-� O h N F%j Pi FA O to 00 V cl (J'1 W N l I--� O to 00 V 01 In W N N Ito m m m rDD fD DJ CtA M M c c�� O X O S f�D N O O O N O O fvp "° Cr m 'a a m Q m 3 m N m m -O < "' 3 a-0 O 3 to z ci m 0i ci 0! 3 rr m _ y in �-+ ,-r ,rt = rr ,••r D ao cj A N N N m m ID O m= n O O O O p O o rt m fl. p m A A �. m m aq < m < m o m 'O S Q y < rn ° n .G -n >S N Eh O O O O -O m N D m m rt 'r 1Z h o N d m n° rt nu 0 m L- s H f D 01 °' o °N' m N g ao' m o m M v d v d 2 0GQ c<D a �, Q g T o y p O pJ m N 0 t^ m 3 'p n ' r '► m m m m 3 Q N O 0) d 3 O N � < O W Q 'a m— o m (p X Q O_ 0 O O_ m N m rr y o3i S, f O 7 m 'a � O Q Q f y S S O -h 3 O m C '' G m 0- A 0.rfu t m A O A n C m rr aq N h 3 x> 3 n n S m m M. 3 3 3 Q rh m 3 3 '* n< N 7� ° Sas ax° °—' 3 3 O c a CLn Qv 3 m A m^ y CL 7C m 3 m Q 'Nr 3' 3 n= to 0 0 L. 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[r D CD M 0 0 0 0 0 0 Q 0 0 o 0 o 0 o TI C '•F � 0 O a EA z vim+tn�, CD m A Q rv�i 00 w 0 `coil C 0 0 o O O D 0 0 0 0 o O O O O O L I I Ln lD W O O O O O fD 3 '•r W m c � Q. O U9 D D C � � N O In O O O 0 y = iA iA N W �p N V 0 Ul 0 n 0 0 + O _T Io M N W v O V m O O � O O a O O fD m 04 m T C CL N 7Hutc BRA nson RA XUTCXIXSON MOUSIX4 AND UEDf 0S MS AUTXORITY City Center,121 Haan Street SE Hutchinson, MN 5SM INebske Site: www.hutcMnmhm.com (mi) 234-4251 (320) 2344M Fax $mall Citjes ReAtsl Itehab Intent to Partki pate Owner Name tit Address: 6a iG e*t tk LGC 1d R_aotow Ad0, u- roc fftfi i "o R.031- L-4-1 8 fAll Owner Phone Number. L41 ?ob I ZAL i ProPerty Address: toss pmwjuper M Yew Building was built i'['�-y 99-+ bMu& srt.WSB ,n* �,�FuZl�or.+4a (,3 BX�s, wrMs...� V +r_,o e,ti� —�- # of- i 1 BR, A #vacant 102 BR, JL#vwmnt J_ 3 BR, a #vacant — 4 BR, #vacant This ktter shows my intert to participate in flue possible City of Hutchinson Rental Rehab Program, as outlined in the following paragraphs. I understand that: 1. If the grant is awarded, funds will be limited and applicants will be prioritized on a first- corne, first -serve basis. This basis is dependent on the completion of the full P- 2. Chant Requirements include that an adequate number of emits be occupied by low,.M rate income (LIVID households at affordable rents (Rout us the tman�t aaW utility allowances listed on the back). Buildings proposed for participation must meet the following minimum requkment 51 °fib of the units must be occupied by an income qualified household (see below) who ruts are at or below the vent rate for McLeod County (see below). During the fivo-year Compliance period rents should not be incensed. 3. The work that can be done with the SCDP dollars are generally limited to repairs or rePlacement of exist s& deteriorating exterior features such as windows, doors, roofs, furnaces, energy improvements and to correct building code violations. I understand no "Cling" can be done with the SCDP finds. However, handicap accessibility imprrn+ements are allowed. I have identified the following work that would meet these requirements: .al a. dg rvy , ka w+t1v 1, � �,•.. � t�.f,+.__v:. t rava.�,an:'Ii�� Est. Total Costcoo 4. Owners may be eligible for a deferred loan of up to 90% of the rehab coats, on the retutal units with a maximum SCDP loan of $12,500 for Mehl -family buildings. Page t of 3 S. A repayment agreement will seem SCDP loan funds for a 5 year period After 5 years, Wall grant requirements aria met, the loan is forgiven. Uthe owners sells or tranafers the property during that 5 year period, the loan or a portion of the loan must be repaid. 6. The property owner must provide at least 30PA of the construction costa. 7. The rehabilitedion process must be, com dmated through do Hutchinson Housing dt Redevelopment Au&orhy (EIBRA) and competitive bids must be received for the work. Any work done before coordinating with the HHRA will not be eligible for SCDP funding. Emmip : Construction costs for a 12-unit Rental Rehab p mject is $214,286. the SCDP defiwrW loan would cover $150.000 (or 70% of eonsbuction coats up to $12,SoQhmh for multi- %nily buildings) and the property owner would provide the remaiffirg $ 64,286 (or 30%of construction torts). A$or reviewing the kdOnn8fiM I am inber+e W d in this program. I understand this intent to participate is HU an application or acceptance to the program, but &notes inter m participating, ONLYI Applicants who successfully Complete the intent to participate form will automatically be sect an official application should the grant be awarded. Print Name (s)(s) signet `I01- N4, *,"k u c, 3f5lrs Date � 28i� ins anr� for tw�oat gun Famft side Income Units — t ado 2 $45.200 3 $50,850 4 $56,500 3 $61,050 6 $65,550 7 $70,100 $ $74,600 2M Fair Ma det Rant Wnits for Mgg@d County - —5 idency a Bedrawn 2 Bedroom 3 Bedroom 4 Bedroom $55S $724 $1035_ $1,283 Page 2 of S (2t k current Tenant Paid ueltyAllowances Bedrooki■edroomI Bedir—oom'BBedroo-mkl Natural Gas 2_� 341 3_, 45^ �ttle has _ 51 60\ { 8 BSA 2} 2 _7 32 4! e 4t� mP g) 2 2! 2-81 Natural Gas 3 a( k £e _ q 1. Electric, _4 4 5 7 ■ � 21 / 5 _ N tLwal G 7 g 1 161 Bottle Gas ` 1 is 1 Electric i i} 1 20 .. 21 §{— 3 . 3 35j 4' 54 3; 3! 3| 31 _ , TenamSulled i - i: 1( TnamSp|e|d i3} 13} i3. i73 mectA 7 7;� / / Gas f 7 7 7 Page sofa 0 edroom5Bed�'B 5 { Si 9 !g{ 3 5 _ 3 8 9 1� �} 4} . 6 7 3. 3� . 2 39, 2 _ 44| 6 so 7a, 3 3) �j 1 13 1 ! ! � 7 7 7 � . q ! j a 42 2 g 79 32 1 CITY OF HUTCHINSON RENTAL REHAB PROGRAM Application, Loan and Rehabilitation Process The following is the process used when you apply for and receive a loan from the City for rehabilitation of your rental property. 1. After the City of Hutchinson has been awarded funding for the rental rehab program, HRA staff will call to schedule a Housing Rehabilitation Standards Inspection, asbestos assessment and the lead based paint assessment of the buildings. These fees are eligible project costs. 2. After the inspections and the building appears to be reasonably suitable for rehabilitation, the Housing Inspector will write work specifications for the rehabilitation to be done to the property. The Owner will be asked to review the specifications for approval. If there are any concerns about the specifications, the Owner and the Housing Inspector will meet to discuss the concerns. 3. Davis Bacon Wage Rates will apply when eight or more units are rehabilitated on one site and this requirement may cause the project to cost more; 4. When the estimated project cost is over $100,000 the project has a formal bid process which includes being advertised, requiring sealed bids and have a public bid opening. 5. After contractor selection and a total project cost have been determined, the loan package will be presented to the HRA Loan Review Committee for approval. 6. If approved, the Owner will be required to sign all loan papers, including a Mortgage/Repayment Agreement (there will be a lien against the property) that will be filed at the County Recorder's Office. At the time of the loan closing the Owner will be required to pay a S46 or current fee for the filin fee er loan. 7. There will be a Pre -Construction meeting, so that all parties fully understand and agree upon the work to be done. There will be an execution of an Owner -Contractor Contract before a Notice to Proceed is issued. (This meeting will usually be conducted at the building). 8. Work normally shall be complete in 90 days from issuance of Notice to Proceed. However, depending on the Lead Based Paint Assessment, time of year, or foreseen difficulties that may arise, some projects may need an extension of time for project completion. Change orders must be executed for all extensions. 9. Once a work item is completed, and approved by both the Housing Inspector and Owner, a Contractor will be able to submit a bill for payment to the HRA. The Owner will approve Contractor payments before processing by the HRA and the City Finance Department. 10. The City will issue all payment checks to the Contractor. Completion Certificates also need to be sign by the Owner, Contractor and HRA Staff, as well as Lien Waivers and Sworn Construction Statements signed by the Contractor, before the check issuance. 11. Once all the work is completed, received lead clearance, all required forms signed, and all payments to the Contractor made, the project will be considered closed and completed by the City and the HRA. THE ABOVE HAS BEEN READ AND UNDERSTOOD BY THE UNDERSIGNED. 0 2/3/2019 Owner Signature Date PROPERTY CONDITION ASSESSMENT REPORT 907 DALE APARTMENTS 907 Dale Street Hutchinson, Minnesota 55350 Prepared for: 907 Dale Street LLC 907 Dale Street Hutchinson, Minnesota 55350 Attention: Mr. Jacob Lipp By The LJM Group, Inc. 1600 Utica Avenue South, Suite 800 Minneapolis, Minnesota 55416 LJM Project 18.02.2126 October 16, 2018 Im THE LJM GROUP October 16, 2018 907 Dale Street LLC 907 Dale Street Hutchinson, Minnesota 55350 Attention: Mr. Jacob Lipp Subject: Property Condition Assessment Report 907 DALE APARTMENTS 907 Dale Street and 11777-11825 191st Avenue NW Hutchinson, Minnesota 55350 LJM Project No. 18.02.2126 Dear Mr. Lipp: The LJM Group, Inc. (LJM) has completed a Property Condition Assessment (PCA) for the subject property using methods and procedures consistent with good industry standards and customary practice conforming with ASTM E 2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. The purpose of this investigation was to observe and report the physical condition and maintenance of the property. We have prepared the attached Property Condition Report (PCR) summarizing our findings. This report outlines repair and maintenance items that we believe are significant for the continued operation of this facility in its current use and occupancy. These services were performed in accordance with written authorization to proceed. We appreciate the opportunity to work with you on this project. If you have questions concerning this report, or if we may be of further assistance, please call us at (763) 398- 4961. Sincerely, The LJM Group, Inc. Therese M. Hovanec Brian R. Dobie, P.E. Project Engineer Senior Project Engineer 1600 Utica Avenue South, Suite 800 Minneapolis, MN 55416 7631398-4961 763/201-5842-Fax Property Condition Assessment Report 907 DALE APARTMENTS 907 Dale Street Hutchinson, Minnesota 55350 LJM Project No. 18.02.2126 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY....................................................................................................................I 1.1 General Description..............................................................................................1 1.2 General Physical Condition..................................................................................1 1.3 Opinions of Probable Costs..................................................................................2 1.4 Recommendations for Further Investigation........................................................2 2 PURPOSE AND SCOPE.......................................................................................................................3 2.1 Purpose..................................................................................................................3 2.2 Scope of Services..................................................................................................3 2.3 Deviations from the Guide....................................................................................3 2.4 Areas Observed.....................................................................................................4 3 SYSTEM DESCRIPTIONS AND OBSERVATIONS........................................................................6 3.1 Overall General Description.................................................................................6 3.2 Site Improvements................................................................................................7 3.2.1 Topography — Good Condition...................................................................7 3.2.2 Storm Water Drainage — Fair Condition....................................................7 3.2.3 Access and Egress — Good Condition........................................................8 3.2.4 Paving, Curbing, and Parking — Fair to Poor Condition ............................8 3.2.5 Flatwork — Good to Fair Condition............................................................8 3.2.6 Landscaping and Appurtenances —Fair Condition.....................................9 3.2.7 Recreational Facilities — Good Condition................................................10 3.2.8 Utilities — Good Condition.......................................................................11 3.3 Structural Frame and Building Envelope............................................................11 3.3.1 Foundations — Good Condition................................................................11 3.3.2 Building Frame — Good Condition...........................................................11 3.3.3 Building Exteriors — Fair Condition.........................................................12 3.3.4 Roofing — Good to Fair Condition...........................................................14 3.4 Mechanical and Electrical Systems....................................................................16 3.4.1 Plumbing — Good Condition.....................................................................16 3.4.2 Heating — Good to Fair Condition............................................................17 3.4.3 Air Conditioning and Ventilation — Good Condition...............................17 3.4.4 Electrical — Good to Fair Condition.........................................................18 3.5 Vertical Transportation — Not Applicable...........................................................19 3.6 Life Safety and Fire Protection...........................................................................19 3.6.1 Sprinklers and Standpipes —Not Applicable............................................19 3.6.2 Alarm Systems — Good to Fair Condition................................................19 3.6.3 Other Systems — Good Condition.............................................................20 3.7 Interior Elements.................................................................................................20 3.7.1 Common Areas — Good to Fair Condition...............................................20 3.7.2 Tenant Spaces —Good to Fair Condition..................................................21 4 ADDITIONAL CONSIDERATIONS.................................................................................................24 4.1 Code Compliance Inquiries.................................................................................24 4.2 Seismic and Flood Zone Considerations.............................................................24 4.3 ADA Guidelines..................................................................................................24 4.4 FHA Guidelines..................................................................................................28 4.5 Asbestos/Environmental Concerns.....................................................................28 5 DOCUMENT REVIEW AND INTERVIEWS..................................................................................29 5.1 Document Review...............................................................................................29 5.2 Interviews............................................................................................................ 30 6 OPINIONS OF PROBABLE COSTS.................................................................................................31 6.1 Immediate and Short-term Repairs.....................................................................31 6.2 Physical Needs Over the Term (Reserves).........................................................31 7 OUT OF SCOPE CONSIDERATIONS.............................................................................................32 8 LIMITING CONDITIONS.................................................................................................................34 9 EXHIBITS............................................................................................................................................36 9.1 Cost Estimate Tables 9.2 Location Map, Site Plan, and Floor Plans 9.3 Supporting Documentation 9.4 Acronyms and Definitions 9.5 Qualifications I EXECUTIVE SUMMARY 1.1 General Description The present document is a Property Condition Report (PCR) prepared for 907 Dale Street LLC by the LJM Group Inc. This PCR is based on a Property Condition Assessment (PCA) of the subject property that included interviews with knowledgeable persons, brief reviews of significant documents, and a site visit to the subject property by an LJM Field Observer on October 12, 2018. The subject of this PCR is 907 Dale Apartments, a multifamily residential property located at 907 Dale Street in Hutchinson, Minnesota. The subject property consists of an approximately three -acre tract of land. The site is improved with two, two-story (1004 Neal and 1035 South Grade) and one, three-story (907 Dale) apartment buildings containing a total of 40 apartment units. In addition to the residential building, the property also includes one, single -story maintenance/storage building. Facilities available on site include the following: common laundry rooms and storage rooms. Original construction of the property was completed in phases, with Phase I (two-story buildings) completed in 1974 and Phase 11 (three-story building) completed in 1980. For purposes of this assessment, the property has an effective age of approximately forty-one (41) years old. The Site Contacts reported that the property is currently approximately 98% occupied. 1.2 General Physical Condition Based on our document reviews, interviews, and field observations, it is our opinion that the subject property was constructed within industry standards, has been well maintained in recent years, and is in good to fair overall condition. LJM observed no significant items of deferred maintenance. LJM observed the following material physical deficiencies that we recommend for repair or replacement as immediate needs (i.e. within one year) or short-term needs (i.e. within two years): A summary of the recommended repairs is included in Section 9.1. The Site Contacts reported the following significant capital improvements completed within the past three years or currently in progress: fire alarm panel update (2015); 1035 South water heater replacement (1035 Bldg; 2015); boiler replacement (1035 Bldg. 2016). The Site Contacts also reported no significant capital improvements pending at the present time. Our interviews and document reviews revealed no significant life -safety, building code, zoning, or similar issues. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 1 We estimate the remaining useful life of the property in its current use to be not less than 35 years if the repairs recommended in this report are made, the physical improvements receive continuing maintenance, and the various components and/or systems are replaced or repaired on a timely basis as needed. 1.3 Opinions of Probable Costs LJM has identified various components, systems, or equipment that we have recommended for repair or replacement at various times during the evaluation period. Each item of recommended work is classified as either an Immediate Need to be corrected within one year of the PCA, a Short -Term Need to be completed within two years, or a Reserves Need to be completed within the 12-year evaluation period. Each of these items is discussed in the body of the report. In addition, all of these items are listed, along with opinions of probable costs, in either the Immediate and Short -Term Repairs table or the Physical Needs Over the Term (Reserves) table in the Exhibits section of this PCR. The estimated total cost of Immediate Repairs for the subject property is $0. The estimated total cost of Short -Term repairs is $462,190. The estimated total costs of Physical Needs Over the Term (Reserves) is $274,658 (adjusted for inflation), an average Reserves expenditure of $572 per unit per year. 1.4 Recommendations for Further Investigation No other investigations are recommended at this time. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 2 2 PURPOSE AND SCOPE 2.1 Purpose The purpose of this investigation and report is to assess the general physical condition and maintenance status of the subject property and to recommend repair and maintenance items we consider significant for the property to be restored to a good condition consistent with comparable properties of similar age and to continue in its current use and operation for the length of the evaluation period. The purpose includes providing opinions of probable costs to assist the user in developing a general understanding of the physical condition of the property. 2.2 Scope of Services LJM's scope of services for this investigation included (1) a visit to the subject property with observations of readily accessible areas of the site and its improvements, (2) reviews of readily available construction and maintenance documents, and (3) interviews with various persons with knowledge of the property. During the site visit, LJM met with Ms. Carmen Patino, Property Manager (referred to throughout this PCR as the Site Contacts) who provided miscellaneous data about the property. The information gathered from this investigation was used to develop opinions as to the following: its general description, its overall or average condition, its observable physical deficiencies including both its immediate and short-term repair or replacement needs, its physical needs over the evaluation period, and the estimated probable costs to remedy these deficiencies and needs. Finally, the scope included preparation of this report outlining our observations and opinions. Definitions of the terms used in this report to describe average or overall conditions include the following: Good --no remedial work is recommended; Fair --minor remedial work is recommended; and Poor --replacement or major remedial work is recommended. Where it seemed more appropriate, LJM assigned combination assessments such as "good to fair" in evaluating various construction components. For further scope considerations, see the following sections of this PCR: Deviations from the Guide, Additional Considerations, Out of Scope Considerations, and Limiting Conditions. 2.3 Deviations from the Guide This PCA was performed at the Client's request using methods and procedures consistent with good commercial and customary practice in the United States of America for conducting a baseline property condition assessment conforming to ASTM E 2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 3 The ASTM E2018-15 Guide recommends that "opinions of probable costs that are individually or in the aggregate less than a threshold amount of $3,000 for like items are to be omitted from the PCR." In order to provide a more comprehensive assessment, especially of smaller properties, LJM has reduced the threshold of opinions of probable costs to be included in the present PCR to $1,000. However, LJM has included discussions and opinions of probable costs for life/safety issues and ADA accessibility issues without regard to this threshold. In addition to recommendations of Immediate and Short -Term Needs as required by the ASTM E2018-15 Guide, LJM has evaluated the property to identify various longer -term physical needs. These are items of work that are beyond the scope of regular maintenance and which we feel are necessary to maintain the overall condition of the property for 12 years from the date of our investigation. See Section 4, Additional Considerations, for other enhancements to this PCR above the baseline requirements of the Guide. 2.4 Areas Observed On October 12, 2018, the LJM field observer visited 907 Dale Apartments (the subject property) to make a field investigation consisting of visual observations of the physical condition and maintenance of the subject property. LJM visually observed representative areas of the site, structural frames, building envelopes, major mechanical systems, and interiors of common areas. LJM also observed the interiors of nine (9) of the 40 apartment units (23 percent), including units of various sizes, floor plans, buildings, building levels, and occupancy states, in order to gain a representative understanding of the overall physical condition of the apartment units. The apartment units observed were selected by the Site Contacts. Our findings are summarized in the following table. Apartment Units Observed Unit Unit Type Remarks 103 Neal Two bedroom, one bath Occupied, fair condition. Damage below window in living area; carpet damaged/worn from beds. 201 Neal Two bedroom, one bath Vacant; fair condition. Renovation/make-ready in progress. 104 Grade Two bedroom, one bath Occupied; good to fair condition. Vinyl flooring throughout. 202 Grade Two bedroom, one bath Occupied; good to fair condition. Window damage/broken in living area; new window in second bedroom. Flooring stained. Older appliances. 132 Dale Two bedroom, 1'/z bath Occupied; good condition. Previous damage to second bedroom ceiling; repaired. Carpet flooring throughout. New bathtub due to below slab plumbing repair. 135 Dale Two bedroom, 1'/z bath Occupied, good to fair condition. Vinyl flooring throughout. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 4 Apartment Units Observed Unit Unit Type Remarks 137 Dale Studio Occupied; good to fair condition. Cracking noted under flooring in kitchen. 332 Dale Two bedroom, 1'/z bath Occupied; good to fair condition. Patio door broken; part replacement has been unsuccessful. 336 Dale One bedroom, one bath Occupied; good to fair condition. Newer AC, older flooring. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 5 3 SYSTEM DESCRIPTIONS AND OBSERVATIONS 3.1 Overall General Description The subject property was reported to consist of an approximately three acre tract of land. The site is located on the east side of Dale Street SW/County Road 7, between its intersection with Neal Avenue to the north and South Grade Road to the south. This location is in McLeod County. The surrounding area consists primarily of residential properties with Neal Avenue followed by single-family residential properties to the north, South Grade Road followed by Christ the King Lutheran Church to the south, single-family residential properties to the east and Dale Street SW followed by single and multifamily residential properties to the west. The current property improvements were constructed in phases, with Phase I (two- story buildings) constructed in 1974 and Phase 11(three-story building) constructed in 1980. For purposes of this assessment, the property has an effective age of approximately forty-one (41) years old. This property is a multi -family residential facility consisting of two, two-story and one, three-story apartment buildings containing a total of 40 apartment units. In addition to the residential building, the property also includes one, single -story maintenance/storage building. Facilities available on site include the following: common laundry rooms and storage rooms. The following table identifies the reported residential unit types and mix at the subject property. Apartments Unit Configuration (Unit Mix) Unit Type Unit Size Unit Count Studio 400 2 One bedroom, one bath 650 7 Two bedroom, one bath 850 13 Two bedroom, 1'/, bath 850 17 Three bedroom, one bath 975 1 TOTAL 31,825 40 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 6 3.2 Site Improvements 3.2.1 Topography - Good Condition Description and Conditions: The property is relatively flat with a slight overall slope from the north side of the property down to the south side of the property, from the west side of the property down to the east side of the property and has been graded to a gentle slope over the improved portions of the property. No topographical conditions on the subject property or surrounding properties appeared to present conditions detrimental to the property. Recommendations: None 3.2.2 Storm Water Drainage — Fair Condition Description and Conditions: Site storm water from the roofs, grounds, and paved areas flows across the surface into on -site drainage accommodations and the adjacent streets. No ponds, streams, lakes, or drainage ditches were observed on the property. No evidence of erosion requiring correction was noted. The buildings are equipped with exterior perimeter drain tile and sump pumps that discharge onto the landscaping areas. According to the Site Contacts and observations during the site inspection, the sump pumps operate frequently during the fall and spring months water infiltration events in some ground floor units of the two-story buildings have occurred when the sump pump equipment is unable to handle demand. Due to the on -going water infiltration, d frequency of sump operation and estimated Remaining Useful Life (RUL) of drain tile systems, replacement of the exterior perimeter drain tile should be considered prior to any renovation/rehabilitation of ground floor units. Based on information provided by the Site Contacts and LJM's observations, additional water infiltration events are likely. The LJM representatives observed areas of chronically standing water and inadequate/insufficient drainage accommodation in the concrete pedestrian walk located to the west of the two-story buildings (see Photograph 9). The chronically standing water is likely the result of one or a combination of the following: 1) settlement/slope of pedestrian walk towards the adjacent curb; 2) volunteer vegetation accumulation; and/or 3) sump discharge directed towards the concrete pedestrian walk (see Sections 3.2.5; 3.2.6) Recommendations: •.. Short Term Need — Recommendation 1 — Complete drainage repair/correction to prevent water infiltration into ground floor common areas and apartments (estimate 2 EA @ $20,000 = $40,000). 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 7 3.2.3 Access and Egress - Good Condition Description and Conditions: Paved entry/exits allow vehicular access into the property from Dale Street to the west, Neal Avenue to the north and South Grade Road, located along the south property boundary. Access into and out of the property appeared to be adequate to meet existing needs. Recommendations: None 3.2.4 Paving, Curbing, and Parking — Fair to Poor Condition Description and Conditions: Approximately 87 parking spaces are provided on the property. Approximately 67 spaces are in open lots and 20 spaces are in the detached garage structure. The parking area and drives have asphalt pavement that is in fair to poor condition (see Photographs 7 and 8). The property exhibits minor to moderate cracking throughout the pavement with severe pavement damage (potholes, subgrade failure) observed. Minor to moderate alligatoring and surficial erosion was also observed at scattered areas throughout the pavement. In general, asphalt pavement can be expected to provide approximately 25 years of useful life. The age of the asphalt pavement is unknown, but appears to have approached the end of its useful life with replacement included in the Short Term. Asphalt pavement seal -coat has not been applied in recent years. The paint striping is worn and in fair to poor condition. The dumpsters are positioned on asphalt pavement (see Photograph 12). The asphalt dumpster pad appeared to be in overall fair condition and should be replaced/maintained in conjunction with asphalt pavement work during the evaluation period. Concrete pavement is provided adjacent to the detached garage structure. Minor to moderate cracking and volunteer vegetation growth was observed in the concrete aprons located to the east and west of the detached garage (see Photograph 6). To prevent additional cracking and damage to the concrete pavement, the volunteer vegetation should be removed (see Section 3.2.6). No immediate needs were identified. Recommendations: •.. Short Term Need — Recommendation 2: Replace asphalt pavement. Repair base soils, as needed (estimate 25,000 SF @ $3.25 / SF = $81,250). Reserves Need — Clean out and properly seal all open cracks. Apply an asphalt pavement surface sealant to all pavement. Restripe pavement markings. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 8 3.2.5 Flatwork - Good to Fair Condition Descriptions and Conditions: Concrete pedestrian walks provide access to all main entries (see Photograph 9). The walks are in good to fair condition. Areas of differential movement between concrete sections that would pose a potential trip hazard were not identified; however, settlement/downward slope of the concrete pedestrian walk located along the west side of the two-story building was observed. In addition, cracking and volunteer vegetation growth was observed throughout the concrete pedestrian walks and on the accessible pathway from the parking surface towards the accessible building entry (see Photographs 9 and 10). For ADA compliance, the concrete pathway from the accessible parking space to the building entry should be repaired/replaced to provide a level pathway free of volunteer vegetation growth. The detached garage structure is positioned on concrete slab -on -grade construction (see Photograph 12). Access to the garage interiors was not provided; however, the concrete parking surfaces were reported to be in overall good condition with only routine maintenance anticipated during the evaluation period. Recommendations: •.. Short-term Need — Recommendation 3 — To prevent water accumulation, level/repair concrete pedestrian walk located along west side of the two-story buildings (estimate 650 SF @ $4 / SF = $2,600). •.. Short-term Need — Recommendation 4 — For ADA conformance, repair/replace the concrete pedestrian walkway that provides access from the parking surface to accessible building entry/exit (estimate 170 SF @ $12 / SF = $2,040). 3.2.6 Landscaping and Appurtenances — Fair Condition Descriptions and Conditions: The landscaping consists of ground cover, shrubs, trees, rock beds and grass turf. The landscaping components were observed to be in overall good to fair condition. Limited landscaping replacement due to routine die -off is anticipated but would be considered a maintenance item. Volunteer vegetation was observed throughout the property including in the pavement/flatwork and adjacent to the buildings (see Photographs 9 and 10). To prevent potential crack widening and damage to the flatwork, pavement and buildings, removal of volunteer vegetation is recommended. Portions of the east property boundary are fenced with wood privacy fencing and the dumpster area is partially enclosed with wood fencing (see Photographs 11 and 12). The wood fencing was observed to be in overall good to fair condition. On -going wood fencing component repair/replacement is anticipated during the evaluation period; however, due to the minimal cost/quantity, would be considered routine maintenance. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 9 The property is identified and advertised from the adjacent thoroughfares by property identification signage mounted at the southwest property corner (see Photograph 1). Numerical signage identifying individual buildings and apartment units is also provided. The property identification signage is in overall good condition; however, the Site Contacts reported that the property name has changed. Installation of property identification signage is desirable; however, is not required for continued effective use of the subject property. Therefore, estimated costs to provide tenant identification signage is not included in the cost tables. Exterior lighting consists of pole -mounted lights, city streetlights, building - mounted high intensity discharge lights, and miscellaneous incandescent lights. The fixtures are in fair condition with several bent and deflected pole - mounted lights along the east side of the three-story building. Since the survey was conducted during daylight hours, property lighting levels could not be accurately assessed. However, based on the type, number, and distribution of fixtures, lighting levels appear to be adequate. Recommendations: •.. Short-term Need — Recommendation 5 — To prevent additional crack widening and potential damage to concrete flatwork, asphalt pavement and building foundations, remove volunteer vegetation (estimate 1 LS @ $3,000 / EA = $3,000). •.. Short Term Need — Recommendation 6: Repair/re-align bent and deflected pole -mounted lighting along the east side of the three-story building (estimate 3 EA @ $500 = $1,500). 3.2.7 Recreational Facilities — Good Condition Descriptions and Conditions: Common mail areas with mail boxes mounted on an internal walls adjacent to the main building entry/exits is provided (see Photograph 19). Common storage rooms are provided in the three-story building. The storage rooms include individual storage closets equipped with wood doors. The floors have vinyl flooring and are in overall good to fair condition (see Photograph 13). One laundry room is provided in the 1004 (two-story building) and one laundry room is provided on each floor of the three-story building for a total of four laundry rooms provided on -site. Common laundry accommodations are not provided in the 1035 building. The laundry room in the 1004 building contains two coin -operated washers and two coin - operated dryers and each laundry room in the three-story building contains one washer and one dryer for a total of five (5) washers and five (5) dryers provided. The washer/dryer equipment appeared to be operable and in overall good condition. The laundry equipment is leased from an outside 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 10 contractor who is solely responsible for equipment maintenance and replacement. Recommendations: None 3.2.8 Utilities — Good Condition Descriptions and Conditions: The following utilities are provided to the property (providers are listed with each utility): water (municipality), sanitary sewer (municipality), storm sewer (municipality), electricity (Xcel Energy), natural gas (Xcel Energy). There are no on -site special utilities systems such as wells, septic systems, or sewage treatment systems. Utilities were reported to provide adequate service and capacities for current usage. Recommendations: None 3.3 Structural Frame and Building Envelope 3.3.1 Foundations — Good Condition Descriptions and Conditions: No structural plans were available on -site for LJM's review. Within the authorized scope of this investigation, accurate analysis of the foundation and framing systems was not possible because LJM did not have the opportunity to review as -built structural drawings or to perform destructive testing and was able to make only limited observations of foundations and framing due to lack of physical accessibility. However, our non-invasive surface observations and our experience with buildings of similar type and age indicate that the foundation systems consist of reinforced concrete footings, concrete block concrete foundation and below grade walls and reinforced concrete slab -on -grade. The building foundation systems were observed to be in good condition with no evidence of detrimental foundation movement. No cracks, improper alignment, or other indications that the structural systems are in less than good condition were observed. No evidence of improper compaction or settling was observed. No foundation cracks that would impair the use of the building were observed. Recommendations: None 3.3.2 Building Frame — Good to Fair Condition Descriptions and Conditions: The lowest floors on the primary buildings are the ground floors, which are constructed of cast -in -place concrete slabs. No cellars, crawl spaces, or sub -basements were reported or observed. The floors above the lowest level are constructed of wood framing with plywood subfloor. The superstructure system consists of load bearing 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 11 masonry and wood stud walls. The roof system is framed with wood joists with plywood or strand -board decking. The LIM representative observed no cracks, improper alignment, or other indications that the structural systems are in less than good condition. The LIM representative did note drywall cracking in the walls and ceilings at a few locations in the property, typically at directional changes or above windows/doors. The cracking is likely due to inadequate allowances for thermal movement at directional changes in the building configuration or at window/door penetrations. This condition likely occurred shortly after original construction. Repairs at these locations are not anticipated in the immediate or short term; however, on -going maintenance and isolated repair to the interior drywall construction is likely. Due to the minimal cost quantity, this work would be considered routine maintenance. In addition to the residential building, the property also includes one, single maintenance/storage building located between the two-story residential buildings. The building was historically utilized as a maintenance/storage building with individual tenant storage spaces; however, due to chronic and on -going water infiltration the building has been off-line for several years. Renovation/repair of the building is not required for continued effective use of the property and the cost of repair/restoration may exceed the value of revenue that may be obtained. Therefore, the property owner may wish to consider razing the building and installing grass turf. LIM observed no obvious indications of damage from termites or other wood destroying insects (WDI). According to the Site Contacts, pest control and WDI inspection is completed at the property on a monthly basis, with each building and apartment lease unit treated and inspected a minimum of once every three months. Recommendations: •.. Short-term Need — Recommendation 7 — Due to observed conditions, remove/raze auxiliary maintenance/storage building (estimate 950 SF @ $4 / SF = $3,800). 3.3.3 Building Exteriors — Fair Condition Descriptions and Conditions: The primary exterior wall finish consists of stucco with wood and hardboard siding accents (see Photographs 14-16). The stucco finishes were observed to be in overall good to fair condition. No evidence of active water or moisture infiltration through the exterior building finishes was observed and no significant damaged or missing stucco components were noted. According to the Site Contacts, exterior finish repairs were completed at the property in 2013. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 12 The exterior wood and hardboard siding accents appeared to be in overall fair condition with areas of loose and missing wood siding and trim components observed (see Photograph 17). The exteriors have wood trim. Exterior finishes are painted. The exteriors were reported to have been last painted in 2013. Numerous areas of chipped, peeling and missing paint were observed (see Photograph 15). Main entries to common areas are constructed of glass storefront doors in metal frames in the three-story building and metal doors in wood frames in the two-story buildings (see Photographs 16 and 41). Residential unit entries consist of wood doors in metal frames. Locking hardware on residential units includes dead bolts and night latches. Windows consist of operating slide -by window units with aluminum frames and thermal glazing. No cracked or broken glass was noted; however, several windows exhibiting condensate accumulation were observed. The Site Contacts that the windows are original and more than thirty (30) years old. The Site Contacts and building residents reported water infiltration and difficulty operating the existing windows. In general, windows can be expected to provide approximately 30 years of useful life. Due to observed conditions and estimated Remaining Useful Life (RUL), window and patio door replacement is included in the Short Term. Sealant (caulking) was observed on the building exteriors at wall control joints and expansion joints, between dissimilar materials, and around windows and doors. In general, exterior sealants can be expected to provide approximately 20 years of useful life. Due to observed conditions and estimated Remaining Useful Life (RUL), exterior sealant replacement is anticipated and should be completed in conjunction with exterior repainting during the evaluation period. Exterior steps are constructed of poured concrete. Interior stairs have carpet covered open wood treads on wood stringers. No differential movement or loose treads were observed. Only routine maintenance is anticipated. Exterior balconies have wood support framing. The balconies are constructed of plywood decking on wood joists. The landing guardrails are constructed of wood posts, balusters, and top rails. Evaluation of the structural integrity of the landings was beyond the scope of this assessment; however, the balconies appeared to be in overall good to fair condition. Recommendations: •.. Short-term Need — Recommendation 8 — Due to observed conditions and estimated Remaining Useful Life (RUL), replace/repair loose and missing exterior wood siding components. Repaint exterior painted surfaces (estimate 40 EA @ $375 / EA = $15,000). 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 13 •.. Short-term Need — Recommendation 9 — Due to observed conditions and estimated Remaining Useful Life (RUL), replace common area exterior entry/exit doors on three-story apartment building (estimate 2 EA @ $4,500 / EA = $9,000). •.. Short-term Need — Recommendation 10 — Due to estimated Remaining Useful Life (RUL), replace windows (estimate 124 EA @ $800 / EA = $99,200). •.. Short-term Need — Recommendation 11 — Due to estimated Remaining Useful Life (RUL), replace exterior patio doors (estimate 16 EA @ $950 / EA = $15,200). •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life (RUL), the property exteriors will require repainting during the evaluation period. 3.3.4 Roofing — Good to Fair Condition Descriptions and Conditions: The Site Contacts indicated that several roof leaks have been reported in the past twelve months and that these roofs have been repaired. The primary roof covers the three-story building. This roof construction is classified as low -slope roofing. The primary roofing material consists of elastomeric ethylene propylene diene monomer (EPDM) "rubber" roofing membrane. The roof has single -ply "rubber" roofing membrane base and edge flashing. Parapet walls have metal copings. According to the Site Contacts and permit documentation on record at the City of Hutchinson, the roofing covering the three-story building was replaced in 2014 and is approximately four (4) year old. The roofing covering the 1035 building and the maintenance/storage building consists of elastomeric ethylene propylene diene monomer (EPDM) "rubber" roofing membrane. The roof has single -ply "rubber" roofing membrane base and edge flashing. The roofs are topped with stone ballast. According to the Site Contacts and permit documentation on record at the City of Hutchinson, the roofing covering the 1035 building was replaced in 2004 and is approximately fourteen (14) years old. Evidence of previous roof membrane/leak repairs were observed on the 1035 building that included removing stone ballast from the area surrounding the repair. To protect the roofing membrane and ensure adequate drainage, the stone ballast should be redistributed in the areas of the repair (see Photograph 20). Evidence of inadequate/insufficient drainage and vegetation accumulation was also observed on the two-story buildings. To prevent potential damage to the roofing membrane, the stone ballast should be re -distributed to promote drainage towards roof drainage 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 14 accommodations. In general, EPDM roofing can be expected to provide approximately twenty (20) years of useful life. The age of the roofing covering the auxiliary building (maintenance/storage) is unknown. Water accumulation was observed throughout the roofing surface. The National Roofing Contractors Association (NRCA) defines roof ponding as "the excessive accumulation of water at low-lying areas on a roof that remains after the 48 hours after the end rainfall under conditions conducive to drying" (NRCA Roofing and Waterproofing Manual, Fifth Edition). This is a widely accepted definition in the roofing industry. In addition "excessive accumulation" is normally considered water at a depth greater than 0.25 inch. Therefore, a roof is normally considered to have ponding only in areas of water retention that remain deeper than 0.25 inch after 48 hours after rainfall. Areas of water accumulation meeting the NRCA definition of ponding were observed. Based on our observations, type of roofing, and estimated Remaining Useful Life (RUL), replacement of the roofing covering the two-story buildings and detached garage structures is anticipated during the evaluation period. The roofing covering the 1004 building and the detached garage building consists of multi -ply bituminous built-up roofing membrane. The roofing is topped with bituminous flood coat and aggregate. The roofing has built-up base and edge flashing. A metal drip edge/gravel stop is provided at the roofing perimeter. The roofing appeared to be in overall good to fair condition with evidence of previous repair noted. The type and quality of installation of underlying components of the roof membrane could not be determined without intrusive investigation and testing. Therefore, the base sheet, number of inter-plys, thickness and condition of asphalt material, and the base sheet fastening system could not be definitively ascertained. According to the Site Contacts and permit documentation on record at the City of Hutchinson, the roofing covering the 1004 and detached garage buildings was replaced in 2006 and is approximately twelve (12) years old. In general, low -slope roofing can be expected to provide approximately twenty (20) years of useful life. Based on observations, type of roofing and estimated Remaining Useful Life (RUL), low -slope roofing on the 1004, 1035 and detached garage structure is anticipated during the evaluation period. The roof surfaces are drained by edge drainage, some of which is diverted into gutters that discharge onto the grounds at the base of the building exterior walls. No information was available as to the possible existence of any roofing warranties. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 15 The roofing system is installed on decking constructed of plywood or strandboard sheathing. No evidence of roof deck or insulation deterioration was observed or reported. These items should be inspected during any future roofing repair or replacement. No evidence of fire retardant treated plywood (FRT) was observed in our limited survey, and no use of FRT was reported. Recommendations: •.. Short Term Need — Recommendation 12: Redistribute stone ballast on two-story buildings (estimate 1 LS @ $500 / EA = $500). •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life (RUL), replacement of roofing covering the two-story buildings and detached garage structures are anticipated during the evaluation period. 3.4 Mechanical and Electrical Systems 3.4.1 Plumbing - Good Condition Descriptions and Conditions: The Site Contacts indicated that the water supply lines are copper and the waste lines are PVC and cast iron. LJM randomly tested water fixtures and identified no inadequate venting or water pressure. Domestic hot water is provided by one, 75- to 100-gallon capacity gas -fired water heater serving one building each (see Photograph 30). The equipment appeared to be operable and in overall good condition. According to markings on the water heater equipment, the water heater equipment was replaced in the 1004 building in 2009; in the 1035 building in 2015 and in the 907 building in 2012. In general, water heater equipment can be expected to provide approximately fifteen (15) years of useful life. Due to estimated Remaining Useful Life (RUL), replacement of some of the water heater equipment is anticipated during the evaluation period. The scope of our services included observing the plumbing to discover whether polybutylene tubing is used in the plumbing of the subject property. Polybutylene water lines in some installations throughout the country have a history of above average frequency of leakage at the joints and fittings, especially in hot water lines. As part of the present investigation, LJM observed limited areas of the accessible plumbing and asked the Site Contacts about the presence of polybutylene water lines. No polybutylene lines were observed or reported. Plumbing fixtures on the property consisted primarily of typical bathroom fixtures and kitchen sinks. These fixtures are in generally good to fair condition, requiring only occasional replacement as part of routine maintenance. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 16 The Site Contacts reported that the property has experienced no abnormal plumbing problems in recent years. LIM observed no items indicating that the plumbing systems are in less than good condition. Recommendations: •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life (RUL), replacement of some of the domestic water heater equipment will be required during the evaluation period. 3.4.2 Heating — Good to Fair Condition Descriptions and Conditions: Heating for the apartment buildings is provided by gas -fired low-pressure boilers located in the ground floor mechanical room in each building. Heating for the three-story building is provided by one, HydroTherm Multi -Temp brand gas -fired, low pressure boiler located in the ground floor mechanical room (see Photograph 32). Heating for the two-story buildings is provided by one, 150,000 BTU capacity, gas -fired low pressure boilers located in the ground mechanical room in each building. The age of the boiler equipment in the three-story building is unknown; however, appeared to be operable and in overall good condition. According to permit documentation on record at the City of Hutchinson, the heating boiler in the 1004 building was replaced in 2006 and the boiler in the 1035 building was replaced in 2016. In general, heating boiler equipment can be expected to provide approximately 30 years of useful life with an extended life if well maintained. Due to observed conditions and estimated Remaining Useful Life (RUL), replacement of the heating boiler equipment in the three-story building is anticipated during the evaluation period. According to the Site Contacts, the property has experienced no abnormal heating system problems in recent years and heating component repair/replacement is completed on an on -going, as needed basis. Some repair/replacement of baseboard heating equipment is anticipated during the evaluation period. Recommendations: •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life (RUL), replacement of heating equipment in the three-story building will be required during the evaluation period. 3.4.3 Air Conditioning and Ventilation — Good Condition Descriptions and Conditions: Air conditioning is provided by individual through -the -wall cooling units (see Photograph 33). The Site Contacts reported that the air conditioning units vary in age. In general, air conditioning units can be expected to provide approximately fifteen (15) 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 17 years of useful life. According to the Site Contacts, the property has experienced no abnormal air conditioning or ventilating problems in recent years. The air conditioning and ventilation systems appeared to be in good to fair condition. Individual room ventilation is provided through operable windows. Mechanical ventilation in the kitchens is provided by ductless fans over the stove and mechanical ventilation in the bathrooms is provided through individual exhaust fans. In general, bathroom exhaust fans can be expected to provide approximately 20 to 30 years of useful life, depending on use. The air conditioning and ventilation systems appeared to be in overall good to fair condition. According to the Site Contacts, the property has experienced no abnormal air conditioning or ventilating problems in recent years. Recommendations: •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life (RUL), some air conditioning unit replacement will be required during the evaluation period. 3.4.4 Electrical — Good to Fair Condition Descriptions and Conditions: Primary electrical service is fed from pad - mounted step-down transformer equipment that supplies power to the facility through underground conduits to the interior electrical meters (see Photographs 34-36). The electrical service to the building includes circuit breakers and 208/120 Volt service. Each apartment includes 70- to 100-amp capacity service and disconnects and are separately metered. According to the Site Contacts, service wiring is copper and interior wiring is copper. The presence of copper interior branch wiring was confirmed by LIM by removing a representative number of outlet covers in the apartment units inspected (see Photograph 38). Ground fault circuit interrupter (GFCI) receptacles are provided in some bathrooms; GFCI receptacles are not provided in the kitchens. The electrical panels in the 1004 building are Federal Pacific brand Stab- Lok panels (see Photograph 37). The Stab-Lok® panels complied with code requirements at the time of original construction, however, are not equipped with arc -fault protection (AFCI) and therefore, do not comply with existing code requirements for new construction. Therefore, should a substantial amount of property renovation or interior lighting/fixture alteration be performed which would require that the property be brought into compliance with the current code requirements, replacement of the electrical panel would be required. Further, some Federal Pacific brand panels manufactured prior to 1981 have been classified as a safety hazard due to questionable operating reliability and the panels and circuits are no longer manufactured. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 18 The Site Contacts reported that the property has experienced no abnormal electrical problems in recent years. LIM observed no other items indicating that the electrical systems are in less than good condition. The electrical systems appeared to be adequate to meet the tenant requirements with adequate capacity for future similar tenants. Recommendations: •.. Short-term Need — Recommendation 13 — Replace Federal Pacific brand Stab-Lok® panels and disconnects (estimate 8 EA @ $2,000 / EA @ $16,000). •.. Short Term Need — Recommendation 14: Install GFCI receptacles adjacent to kitchen and bathroom sinks where not currently equipped (estimate 47 EA @ $50 / EA = $2,350). 3.5 Vertical Transportation - Not Applicable 3.6 Life Safety and Fire Protection 3.6.1 Sprinklers and Standpipes - Not Applicable 3.6.2 Alarm Systems - Good to Fair Condition Descriptions and Conditions: Fire protection systems provided on site include smoke detectors, pull boxes, visible alarms, and audible alarms in the three-story building and smoke detectors in the two-story buildings. A central fire alarm system equipped with a central fire alarm panel is provided in the three story building (see Photograph 39). The system monitors the pull stations and smoke detectors and sounds a local alarm and automatically alerts an off -site monitoring service or the fire department. According to permit documentation on record at the City of Hutchinson, the fire alarm panel was upgraded in 2015. The central alarm system is tested annually by Ge@ s Fire Safety (private fire protection contractor) and was reported to have been inspected within the last twelve months. All apartments inspected have one or more individual hard -wired smoke detectors with battery back-up installed. Smoke detectors are provided in the individual bedrooms and common corridor outside the bedroom area(s). Carbon monoxide detectors are not provided. None of the protection equipment was tested in the scope of this survey. LIM observed no items indicating that the fire protection components are in less than good condition. Smoke detector replacement is ongoing and of such a minimal quantity/cost that it is considered routine maintenance. Recommendations: 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 19 •.. Short-term Need — Recommendation 15 — Provide carbon monoxide detectors in individual apartments (estimate 40 EA @ $150 = $6,000). 3.6.3 Other Systems — Good Condition Descriptions and Conditions: Fire protection systems provided on site include portable fire extinguishers in the common areas (see Photograph 40). None of the fire protection equipment was tested in the scope of this survey. However, the fire extinguishers checked were tagged as having been inspected within the past 12 months (March 2018). LJM observed no items indicating that the fire protection components are in less than good condition. Recommendations: None 3.7 Interior Elements 3.7.1 Common Areas — Good to Fair Condition Descriptions and Conditions: Common areas on site include the community room, common laundry room, storage room and corridors. Interior walls of the common areas are of drywall construction and are finished with paint (see Photograph 21 and 22). The walls are in good condition. The floors have carpet or vinyl and the ceilings are constructed of drywall that has been textured and painted or acoustical tile in a suspended metal grid. Ceilings are in good condition. The Site Contacts reported that some common area renovation/repairs were completed in 2013. Painting and minor repairs to interiors are normally considered routine maintenance and are not included in the cost tables of the PCR. One laundry room is provided in the 1004 (two-story building) and one laundry room is provided on each floor of the three-story building for a total of four laundry rooms provided on -site. Common laundry accommodations are not provided in the 1035 building. The laundry room in the 1004 building contains two coin -operated washers and two coin - operated dryers and each laundry room in the three-story building contains one washer and one dryer for a total of five (5) washers and five (5) dryers provided. The washer/dryer equipment appeared to be operable and in overall good condition. The laundry equipment is leased from an outside contractor who is solely responsible for equipment maintenance and replacement. Recommendations: •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life, replacement of common area flooring will be required during the evaluation period. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 20 3.7.2 Tenant Spaces -Good to Fair Condition Descriptions and Conditions: Interior walls are of drywall construction and are typically finished with paint. The walls are in good condition. The floors are covered with carpeting and vinyl flooring in overall good to fair condition. The Site Contacts reported that a flooring upgrade program was implemented at the property in recent years and included installing vinyl flooring throughout the living areas and bedrooms and is approximately 25% complete. The ceilings are constructed of drywall that has been textured and painted. Ceilings are in good condition. Painting and minor repairs to interiors are normally considered routine maintenance and are not included in the cost tables of the PNR. Interior doors consist of wood and hardboard doors in wood frames. Doors are in good condition and locks are in good condition. Cabinets in kitchens are constructed with particle core doors and drawer fronts and are finished with vinyl film or paint. Counter tops are plastic laminate and sinks are stainless steel. Most cabinets and counter tops are original and more than 25 years old (see Photographs 25 and 26). Kitchen appliances include frost -free refrigerators, electric stoves/vent hoods and dishwashers. Appliances in the inspected apartments were evaluated by general appearance. They were tested only to see if they would turn on. According to the Site Contacts, the age of the kitchen appliances vary from less than five years to more than fifteen (15) years old. The kitchen appliances are predominately almond in color and are in overall good to fair condition (see Photographs 25 and 26). On -going appliance replacement is anticipated during the evaluation period. Bathroom vanities are constructed with wood core doors and drawer fronts and are finished with vinyl film or stain and vanish. Counter tops are manufactured marble with integral cast sinks. In general, bathroom vanities can be expected to provide approximately 25 years of useful life. Tubs are fiberglass enclosures. Most of the bathroom fixtures and faucets are more than twenty-five years old. The scope of our services included observing the building interiors for evidence of the presence of Chinese drywall. Drywall imported from China starting in 2001 contains sulferic compounds that both emit dangerous gases and react with copper materials (i.e. wiring, piping). According to the US Consumer Product Safety Commission, the majority of Chinese Drywall incidents have been reported in Florida and Virginia, with three incidents reported in Minnesota. LJM observed limited areas of the accessible plumbing and electrical copper components. No black or powdery discoloration was observed and no olfactory indications were observed or reported that would indicate the presence of defective drywall. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 21 A preliminary assessment and review was completed consisting of visual observations to document evidence of water damage and/or mold growth. The preliminary mold review was completed to identify both the presence of mold and conditions conducive to the growth of mold (i.e. leaking plumbing, water infiltration). No musty odors or evidence of chronic mold conditions were noted. The under sink plumbing equipment and bathroom stools and showers were observed to be in good condition, with no evidence of chronic or on -going leaks or condensation noted. The on -site personnel reported that minor leaks associated with the plumbing systems and/or HVAC equipment are repaired within 48 hours of being reported and no outstanding plumbing leak repairs are on record. An area, room, or space that is not available for occupancy because it is in a substantial state of disrepair due to fire, flood, or other cause is considered a "Down Area." The Site Contacts and LJM observed one "down" unit (1004-201) at the time of the site inspection. Renovations were in progress and scheduled to be completed within the next two weeks; therefore, repair funds have not been included in the cost tables. The Site Contacts further reported that ground floor units in the 1035 have reoccurring water infiltration. Recommendations: •.. Short-term Need — Recommendation 16 - Due to observed conditions and estimated Remaining Useful Life, replace kitchen cabinets, sinks and fixtures (estimate 25 EA @ $2,200 EA = $55,000). •.. Short-term Need — Recommendation 17 — Replace vinyl flooring in kitchen, bathroom and living areas (estimate 25 EA @ $1,100 EA — $27,500). •.. Short-term Need — Recommendation 18 - Due to observed conditions and estimated Remaining Useful Life, replace stoves/vent hoods (estimate 25 EA @ $560 EA = $14,000). •.. Short-term Need — Recommendation 19 - Due to observed conditions and estimated Remaining Useful Life, replace refrigerators (estimate 25 EA @ $600 EA = $15,000). •.. Short-term Need — Recommendation 20 - Due to observed conditions and estimated Remaining Useful Life, replace dishwashers (estimate 25 EA @ $350 EA = $8,750). •.. Short-term Need — Recommendation 21 - Due to observed conditions and estimated Remaining Useful Life, replace bathroom vanities and sinks (estimate 25 EA @ $750 EA = $18,750). •.. Short-term Need — Recommendation 22 - Due to observed conditions and estimated Remaining Useful Life, replace bathroom fixtures (estimate 15 EA @ $150 EA = $2,250). 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 22 •.. Short-term Need — Recommendation 23 - Due to observed conditions and estimated Remaining Useful Life, replace bathtubs, as needed (estimate 10 EA @ $2,200 EA = $22,000). •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life, replacement of some of the vinyl flooring will be required during the evaluation period. •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life, replacement of some of the refrigerators will be required during the evaluation period. •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life, only limited kitchen stove/vent replacement will be required during the evaluation period. •.. Reserves Need — Due to observed conditions and estimated Remaining Useful Life, dishwasher replacement will be required during the evaluation period. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 23 4 ADDITIONAL CONSIDERATIONS This PCA includes items required for a baseline property condition assessment conforming to ASTM E 2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. There may be additional issues or conditions at a property that users may wish to assess that are outside the scope of this ASTM Guide. Additional considerations included in the present PCA include the following: 4.1 Code Compliance Inquiries On October 10, 2018, UM submitted a Freedom of Information Act (FOIA) request to the City of Hutchinson Building Inspection Department requesting whether any outstanding or unresolved building code compliance violations on record for the subject property. According to Ms. Andrea Schwartz, Permit Technician with the City of Hutchinson, no open/outstanding permits are on record for the subject property. Further, according to Mr. Dave Halquist with the City of Hutchinson Building Department/Rental Housing, the no outstanding compliance violations are on record for the property. The property was last inspected by the City on May 1, 2017. According to the zoning map available on-line at the City of Hutchinson web page, the subject property is located within a "RY' zoning district, defined in the municipal code as Medium -High Density Residential. A copy of the zoning map is included in the Appendix. 4.2 Seismic and Flood Zone Considerations A definitive flood determination was beyond the scope of this assessment; however, according to Community/Panel number 27085C0019E of the Flood Insurance Rate Map, published by the Federal Emergency Management Agency (FEMA), effective July 7, 2014, the property is located in Zone X, defined as an area outside the 500-year flood plain with less than 0.2% annual probability of flooding (Annual Probability of Flooding of Less than one percent). A copy of the FIRM map is included in the Appendix. According to the 1994 Uniform Building Code, the property is located on the Seismic Zone Map under the following seismic zone: Zone 0, defined as an area of very low probability of damaging ground motion. 4.3 ADA Guidelines A review of the subject property was performed to assess its compliance to portions of Title III of the Americans with Disabilities Act (ADA). This Act requires public accommodations to provide goods and services to persons with disabilities on an equal 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 24 basis with the rest of the general public. After January 26, 1992, the ADA began requiring that architectural and communication barriers be removed in public areas of existing facilities when their removal is readily achievable. The goal of LJM's review is to identify accessibility problems and to provide a guide for making the facility more usable for people with disabilities. The Department of Justice recommends this be done by the development of an implementation plan stating specifically what improvements are determined to be readily achievable. The scope of LJM's review includes the exterior routes to buildings and accessible lease units including parking areas, routes to the buildings, curb cuts and ramps, sidewalks, and exterior entrances. LJM's review also includes the interior routes to a leasing station, public accommodations, and accessible lease units within the buildings. In general, LJM's review does not include the interiors of accessible lease units (if any). The scope of LJM's review is the exterior routes to the leasing office and other public accommodations (if any) including parking areas, access to the buildings, curb cuts and ramps, sidewalks, and exterior entrances; and the interior routes to a leasing station and other public accommodations (if any). This section of the report is organized according to the International Conference of Building Officials' "Accessibility Checklist" based on the 1993 Accumulative Supplement to the Uniform Building Code. ADA REVIEW Building History Yes No N/A Comments 1. Has the management previously No information provided. completed an ADA review? 2. Does an ADA compliance plan exist for No information provided. the property? 3. Has the plan been reviewed/approved by No information provided. outside agencies (engineering firms, building department, or other agencies)? 4. Have any ADA related complaints been received in the past? Building Access Yes No N/A Comments 1. Are there an adequate number (per 1 required adjacent to regulation) of wheelchair accessible leasing services; parking spaces available (96" wide/ 60" provided. aisle) 2. Is there at least one wheelchair accessible van parking space (96" wide/ 96" aisle) for every 8 standard accessible spaces? 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 25 ADA REVIEW 3. Are accessible parking spaces located on the shortest accessible route of travel from an accessible building entrance? 4. Does signage exist directing you to wheelchair accessible parking and an accessible building entrance? 5. Is there a ramp from the parking to an accessible building entrance (1:12 slope or less) 6. If the main entrance is inaccessible, are Threshold non - there alternate accessible entrances? conforming. 7. Is the accessible entrance doorway at least 32" wide? 8. Is the door handle easy to open? (lever/push type knob, no twisting required, no higher than 48" above floor) 9. Are entry doors other than revolving doors available? Corridors and Elevators Yes No N/A Comments 1. Is the path of travel free of obstructions and wide enough for a wheelchair (at least 60" wide)? 2. Are floor surfaces firm, stable and slip resistant (carpets wheelchair friendly)? 3. Do obstacles (phones, fountains, etc.) protrude no more than 4" into walkways or corridor? 4. Are elevators controls low enough to be Elevators not provided. reached from a wheelchair (48" front approach/54" side approach)? 5. Are there raised elevator markings in Braille and Standard Alphabet for the blind? 6. Are there audible signals inside cars indicating floor changes? 7. Do elevator lobbies have visual and audible indicators of the cars arrival? 8. Does the elevator interior provide sufficient wheelchair turning area (51" X 68" minimum)? 9. Is at least one wheelchair accessible public phone available? 10 Are wheelchair accessible facilities (restrooms, exits, etc.) identified with signage? 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 26 ADA REVIEW Restrooms Yes No N/A Comments 1. Are common area public restrooms Common restrooms not located on an accessible route? provided. 2. Are pull handles push/pull or lever type? 3. Are access doors wheelchair accessible (at least 32" wide)? 4. Are public restrooms large enough for wheelchair turnaround (60" turning diameter)? 5. Are stall doors wheelchair accessible (at least 32" wide)? 6. Are grab bars provided in toilet stalls (33"-36" above floor)? 7. Do sinks provide clearance for a wheelchair to roll under (29" clearance)? 8. Are sink handles operable with one hand without grasping, pinching, or twisting? 9. Are exposed pipes under sink sufficiently insulated against contact? 10 Are soap dispensers, towel, etc. reachable (48" from floor for frontal approach, 54" for side approach)? 11 Is the base of the mirror no more than 40" off floor? Based on the age of the building (pre 1992), the facility is not required to comply with current ADA accessibility requirements at the present time. The ADA requires that any alteration to the subject site after January 26, 1992 be made to the maximum extent feasible to ensure facility access and usability by a disabled person. "Alteration" includes remodeling renovation, rehabilitation, reconstruction, historic renovation, changes in structural elements or walls. Normal maintenance, re -roofing painting or wall papering, asbestos removal, or changes to mechanical or electrical systems are not alteration unless they change the usability of the facility. It is also important to note that the ADA was enacted as a guideline for designing new buildings and was not necessarily intended to serve as a regulation for existing buildings. Therefore, implementation of certain upgrades may not necessarily be mandated due to "grandfather clauses" and/or "undue hardships" involved in satisfying ADA standards. Upgrades and/or retrofits would most likely be required only in the event of significant property remodeling, reconstruction or use/occupancy reclassification. The extent of any upgrade requirements would be subject to interpretation by any number of city, state or federal agencies. Corrections of these conditions should be addressed from a liability standpoint but 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 27 are not code violations. The guidelines are civil rights issues as they pertain to the disabled. Designated handicap parking spaces are provided on -site and equipped with vertical signage, pavement markings (worn) and adjacent access aisles. Installation of a designated Van Accessible handicap parking space adjacent to the accessible entry on the three-story building leasing services, including conforming pavement markings, vertical signage and adjacent access aisle would be considered readily achievable and therefore, recommended. This work should be completed in conjunction with asphalt pavement and flatwork repairs discussed in the applicable sections of this report. 4.4 FHA Guidelines A review of the subject property was performed to assess its compliance to portions of the Fair Housing Act (FHA). According to the FHA Accessibility Design and Construction Requirements, housing first occupied after March 13, 1991 is covered by FHA. Since the property was constructed subsequent to 1991, FHA guidelines are applicable. A cursory review of the building entry pathways, amenities; and ground floor(s) of the dwelling units was completed and appeared to be in general conformance with FHA requirements. 4.5 Asbestos/Environmental Concerns The subject property is located in an established mixed -use environment. The immediate surrounding property includes primarily residential properties. Observations to document obvious environmental concerns were completed; however, this assessment did not include environmental research or sampling/analysis. No obvious environmental concerns such as drums, waste piles, or indications of underground fuel storage tanks were observed on the subject site. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 28 5 DOCUMENT REVIEW AND INTERVIEWS 5.1 Document Review In conducting this investigation, LJM requested that the Client or the Site Contacts make available for our review certain documents that may provide information about the subject property to augment the information gathered during our field observations. These documents were reviewed only if they were made readily available to LJM at the subject property during our site visit or at our offices prior to the scheduled preparation of this report. Our review of these documents does not include our independent verification or comment on their accuracy or completeness. We assumed that the information provided in these documents was reliable unless obviously contradicted by our observations or by other information provided. The table below includes a list of the documents that LJM requested for review and an indication as to whether or not they were provided for our review. For documents that were provided, a brief description of the document is included. Documents Requested from the Client or Site Contacts Documents Requested Provided? Base building Certificate of Occupancy Not Provided Outstanding citations for building and fire -life safety code violations Not Applicable Outstanding citations for zoning violations Not Applicable Appraisal Not Provided Roof warranty information Not Provided Other warranty information (boilers, chillers, cooling towers, etc.) Not Provided Records indicating the age of material building systems Not Provided Invoices or other records indicating historical costs for carpet, vinyl floor covering, appliances, HVAC equipment, DHW equipment, and other recurring replacements Not Provided Invoices or other records of actual costs for capital improvements within the past 3 years Not Provided Pending proposals or executed contracts for significant repairs or improvements Not Provided ADA accessibility survey Not Provided Previously prepared property condition reports or similar studies Not Provided Rent roll and records indicating occupancy percentage and turnover rate Not Provided Leasing and marketing literature Not Provided Construction Drawings (excepts) Not Provided 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 29 5.2 Interviews During our site visit, UM interviewed Ms. Carmen Patino, Regional Property Manager who provided further property information and are referred to throughout this PCR as the Site Contacts. Ms. Patino has been associated with the subject property for approximately three years. In LJM's opinion, the Site Contacts were cooperative, reasonably knowledgeable about the subject property, and provided information that appeared to be accurate. Ms. Patino accompanied the UM representative on portions of the walk-through survey of the property. UM also interviewed, either in person or by telephone, representatives of various code enforcement departments identified in the Additional Considerations section of this report. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 30 6 OPINIONS OF PROBABLE COSTS In the process of conducting the PCA at the subject property, LIM has identified various components, systems, or equipment that are recommended for repair or replacement during the evaluation period. These items of work were classified as Immediate Needs, Short-term Repairs, and Physical Needs Over the Term (Reserves) as seemed appropriate to the degree of urgency of the recommended remedy. Each of these items is discussed in the body of the report. In addition, all of these items are listed, along with opinions of probable costs, in either the Immediate and Short-term Repairs table or the Physical Needs Over the Term (Reserves) table in the Exhibits section of this PCR. These general -scope opinions of probable costs are based on our experience with past costs for similar items of work, costs indicated in invoice or bid documents provided for review, and unit costs in cost estimating publications. The purpose of the opinions of probable costs is to assist the user in developing a general understanding of the physical condition of the property. 6.1 Immediate and Short-term Repairs Immediate repairs are opinions of probable costs that require immediate action as a result of. (1) material existing or potential unsafe conditions, (2) material building or fire code violations, or (3) conditions that, if left unremedied, have the potential to result in or contribute to critical element or system failure within one year or will most probably result in a significant escalation of remedial cost. The estimated total cost of immediate repairs for the subject property is $0. Short-term costs are opinions of probable costs to remedy physical deficiencies, such as deferred maintenance, that may not warrant immediate attention, but require repairs or replacements that should be undertaken on a priority basis in addition to routine preventive maintenance. Such opinions of probable costs may include costs for testing, exploratory probing, and further analysis should this be deemed warranted by the consultant. The performances of such additional services are beyond the PCA scope of work. Generally, the time frame for such repairs is within one to two years. The estimated total cost of short-term repairs for the subject property is $462,190. 6.2 Physical Needs Over the Term (Reserves) In addition to the immediate and short-term needs LIM has identified various longer - term physical needs. These are items of work that are beyond the scope of regular maintenance and which we feel are necessary to maintain the overall condition of the property for 12 years from the date of our investigation. In LIM's opinion, these Physical Needs Over the Term (Reserves), totaling $274,658 (adjusted for inflation), should be considered for capital reserves over this period, an average expenditure of $572 per unit per year. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 31 7 OUT OF SCOPE CONSIDERATIONS This PCA's purpose, scope, methodology, and intended use are strictly limited to those set forth in various sections of this PCR. This PCA was performed at the Client's request using methods and procedures consistent with good commercial and customary practice in the United States of America for conducting a baseline property condition assessment conforming with ASTM E 2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. The table below lists, for informational purposes only, some activities that are generally excluded from or otherwise represent limitations to the scope of this PCA, as prepared in accordance with this ASTM Guide. These should not be construed as all-inclusive or implying that any exclusion not specifically identified is included in this scope or is a PCA requirement under this Guide. ASTM E 2018-15 Out of Scope Considerations E 2018-15 Items Not Included in the Present Scope Reference (Not a comprehensive listing) 8.4.1.8 Site Utilities: Evaluating operating conditions of any utility systems or accessing manholes or utility pits. 8.4.2.2 Structural Frame and Building Envelope: Entering crawl or confined space areas. (However, field observer should observe conditions to the extent easily visible from the point of access to the crawl or confined space areas.) 8.4.2.2 Structural Frame and Building Envelope: Determining previous substructure flooding or water penetration, unless easily visible or if such information is provided. 8.4.3.2 Roofs: Walking on pitched roofs, on any roof areas that appear to be unsafe, or on roofs with no built- in access. Determining any roofing design criteria. 8.4.4.2 Plumbing: Determining adequate pressure and flow rate or fixture -unit values and counts. Verifying pipe sizes and verifying the point of discharge for underground systems. 8.4.5.2 Heating: Observation of flue connections, interiors of chimneys, flues or boiler stacks, tenant -owned equipment, or tenant -maintained equipment. 8.4.6.2 Air Conditioning and Ventilation: Evaluating process related equipment, tenant -owned equipment, or tenant -maintained equipment. 8.4.7.2 Electrical: Removing electrical panel and device covers, except if removed by building staff. Evaluating EMF issues. Electrical testing or operating of any electrical devices. Evaluation of process related equipment, tenant -owned equipment, or tenant -maintained equipment. 8.4.8.2 Vertical Transportation: Examining cables, sheaves, controllers, motors, or inspection tags. Entering elevator/escalator pits or shafts 8.4.9.1 Life Safety / Fire Protection: Determining National Fire Protection Association (NFPA) hazard classifications. Classifying or testing fire rating of assemblies. 8.4.10.2 Interior Elements: Operating appliances or fixtures. Determining or reporting STC (Sound Transmission Class) ratings and flammability issues/regulations. 11.1.1 Removing or relocating materials, furniture, storage containers, personal effects, debris material or finishes; conducting exploratory probing or testing; dismantling or operating of equipment or appliances; or disturbing personal items or property which obstructs access or visibility. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 32 ASTM E 2018-15 Out of Scope Considerations E 2018-15 Items Not Included in the Present Scope Reference Not a comprehensive listing) 11.1.2 Preparing engineering calculations (civil, structural, mechanical, electrical, etc.) to determine any system's, component's, or equipment's adequacy or compliance with any specific or commonly accepted design requirements or building codes, or preparing designs or specifications to remedy any physical deficiency. 11.1.3 Taking measurements or quantities to establish or confirm any information or representations provided by the owner or user such as size and dimensions of the subject property or subject building, any legal encumbrances such as easements, dwelling unit count and mix, building property line setbacks or elevations, number and size of parking spaces, etc. 11.1.4 Reporting on the presence or absence of pests such as wood damaging organisms, rodents, or insects unless evidence of such presence is readily apparent during the course of the field observer's walk- through survey or such information is provided to the consultant by the owner, user, property manager, etc. The consultant is not required to provide a suggested remedy for treatment or remediation, determine the extent of infestation, nor provide opinions of probable costs for treatment or remediation of any deterioration that may have resulted. 11.1.5 Reporting on the condition of subterranean conditions such as underground utilities, separate sewage disposal systems, or wells; systems that are either considered process -related or peculiar to a specific tenancy or use, waste water treatment plants; or items or systems that are not permanently installed. 11.1.6 Entering or accessing any area of the premises deemed to pose a threat of dangerous or adverse conditions with respect to the field observer or to perform any procedure that may damage or impair the physical integrity of the property, any system, or component. 11.1.7 Providing an opinion on the condition of any system or component that is shutdown, or whose operation by the field observer may significantly increase the registered electrical demand -load. However, consultant is to provide an opinion of its physical condition to the extent reasonably possible considering its age, obvious condition, manufacturer, etc. 11.1.8 Evaluating acoustical or insulating characteristics of systems or components. 11.1.9 Providing an opinion on matters regarding security of the subject property and protection of its occupants or users from unauthorized access. 11.1.10 Operating or witnessing the operation of lighting or other systems typically controlled by time clocks or that are normally operated by the building's operation staff or service companies. 11.1.11 Providing an environmental assessment or opinion on the presence of any environmental issues such as asbestos, hazardous wastes, toxic materials, the location and presence of designated wetlands, Indoor Air Quality (IAQ), etc. 11.2 Warranty, Guarantee and Code Compliance Exclusions - By conducting a PCA and preparing a 11.2.1 PCR, the consultant is merely providing an opinion and does not warrant or guarantee the present or future condition of the subject property, nor may the PCA be construed as either a warranty or 11.2.2 guarantee of any of the following: 1) Any system's or component's physical condition or use, nor is a PCA to be construed as substituting for any system's or equipment's warranty transfer inspection, 2) 11.2.3 Compliance with any federal, state, or local statute, ordinance, rule or regulation including, but not limited to, building codes, safety codes, environmental regulations, health codes or zoning ordinances or compliance with trade/design standards or the standards developed by the insurance industry. However, should there be any conspicuous material present violations observed or reported based upon actual knowledge of the field observer or the PCR reviewer, they should be identified in the PCR; 3) Compliance of any material, equipment, or system with any certification or actuation rate program, vendor's or manufacturer's warranty provisions, or provisions established by any standards that are related to insurance industry acceptance/approval such as FM (Factory Mutual), State Board of Fire Underwriters, etc. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 33 8 LIMITING CONDITIONS LJM has performed this investigation with the understanding that a PCA cannot wholly eliminate the uncertainty regarding the presence of physical deficiencies and the performance of a subject property's building systems. Preparation of a PCR in accordance with ASTM E2018-15 is intended to reduce, but not eliminate, the uncertainty regarding the potential for component or system failure and to reduce the potential that such component or system may not be initially observed. This PCR was prepared recognizing the inherent subjective nature of the consultant's opinions as to such issues as workmanship, quality of original installation, and estimating the remaining useful life of any given component or system. There may be other alternate or more appropriate schemes or methods to remedy the physical deficiencies. LJM's opinions are generally formed without detailed knowledge from individuals familiar with the component's or system's performance. Our services described herein were performed and our findings and recommendations were prepared in accordance with generally accepted consulting practices for this geographical area at this time. This warranty is in lieu of all other warranties, either expressed or implied. While LJM has made every reasonable effort to properly evaluate the property conditions within the contracted scope of services, it should be recognized that this investigation is limited in several important respects including, but not limited to, the following: Our findings and conclusions were formed under time constraints and were based primarily on the visual appearance of the property at the time of our site visit and on comparative judgments with similar properties in the LJM site inspector's experience. Our site observations included only areas that were readily accessible to our representative without opening or dismantling any secured components or areas. The scope did not include invasive investigation, component sampling, laboratory analysis, an environmental site assessment, or engineering evaluations of structural, mechanical, electrical, or other systems with related calculations and review of design assumptions. Some of our conclusions were partially based on information provided by others including representatives of the client, the property owner, the property manager, contractors servicing the property, and local building code officials. For the purposes of this report, we have assumed this information to be complete and correct unless otherwise noted. LJM assumes no liability for incorrect information provided by others. Our opinions of probable costs represent a preliminary opinion only and are neither a quote nor a warranty or representation as to the actual costs that may be incurred. It is not the intent of this investigation to prepare or provide exact quantities or identify the exact locations of items or systems as a basis for preparing opinions of probably costs. These estimates are based on typical cost data that may not fully characterize the scope of the site conditions and are further limited by possible future changes in technology, by 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 34 regulatory requirements, by site location, and by contingencies that cannot reasonably be discovered until after commencement of on -site construction activities. These estimates do not address the cost impact of the possible presence of asbestos -containing materials (ACM) on renovation or demolition activities. LJM shall not be liable to the Client nor any other party for any costs or expenses that may be incurred in excess of these estimates, for any losses that may be incurred as a result of these estimates being different from the actual costs, nor for any damages whatsoever in connection with these estimates. This report is intended for the sole use of 907 Dale Street LLC. The scope -of -services performed in execution of this investigation may not be appropriate to satisfy the needs of other users, and any use or re -use of this document or its findings, conclusions, or recommendations is at the risk of said user. The LJM Group Inc. is not responsible for conclusions, opinions, or recommendations made by others based on this information. 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 35 EXHIBITS 907 Dale Apartments LJM Project 18.02.2126 Hutchinson, Minnesota Property Condition Report, Page 36 9.1 Cost Estimate Tables Immediate and Short Term Physical Needs # Description of Work (Immediate/Short) Quantity Unit Unit Cost Item Cost 1 Complete drainage repair/correction to prevent water 2 EA $20,000 $40,000 infiltration into ground floor common areas and apartments. 2 Replace asphalt pavement. Repair base soils, as 25,000 SF $3.25 $81,250 needed. 3 To prevent water accumulation, level/repair concrete 650 SF $4 $2,600 pedestrian walk located along west side of the two- story buildings. 4 For ADA conformance, repair/replace the concrete 170 SF $12 $2,040 pedestrian walkway that provides access from the parking surface to accessible building entry/exit. 5 To prevent additional crack widening and potential 1 LS $3,000 $3,000 damage to concrete flatwork, asphalt pavement and building foundations, remove volunteer vegetation. 6 Repair/re-align bent and deflected pole -mounted 3 EA $500 $1,500 lighting along the east side of the three-story building. 7 Due to observed conditions, remove/raze auxiliary 950 SF $4 $3,800 maintenance/storage building. 8 Due to observed conditions and estimated Remaining 40 EA $375 $15,000 Useful Life (RUL), replace/repair loose and missing exterior wood siding components. Repaint exterior painted surfaces. 9 Due to observed conditions and estimated Remaining 2 EA $4,500 $9,000 Useful Life (RUL), replace common area exterior entry/exit doors on three-story apartment building. 10 Due to estimated Remaining Useful Life (RUL), 124 EA $800 $99,200 replace windows on three-story building. 11 Due to estimated Remaining Useful Life (RUL), 16 EA $950 $15,200 replace exterior patio doors. 12 Redistribute stone ballast on two-story buildings. 1 LS $500 $500 13 Replace Federal Pacific brand Stab-Lok® panels and 8 EA $2,000 $16,000 disconnects. 14 Install GFCI receptacles adjacent to kitchen and 47 EA $50 $2,350 bathroom sinks where not currently equipped. 15 Provide carbon monoxide detectors in individual 40 EA $150 $6,000 apartments. 16 Due to observed conditions and estimated Remaining 25 EA $2,200 $55,000 Useful Life, replace kitchen cabinets, sinks and fixtures. 17 Replace vinyl flooring in kitchen, bathroom and 25 EA $1,100 $27,500 living areas. 18 Replace stoves/vent hoods. 25 EA $560 $14,000 19 Replace refrigerators. 25 EA $600 $15,000 Immediate and Short Term Physical Needs # Description of Work Immediate/Short Quantity Unit Unit Cost Item Cost 20 Replace dishwashers. 25 EA $350 $8,750 21 Replace bathroom vanities and sinks. 25 EA $750 $18,750 22 Due to observed conditions and estimated Remaining Useful Life, replace bathroom fixtures. 25 EA $150 $3,750 23 Due to observed conditions and estimated Remaining Useful Life, replace bathtubs, as needed. 10 EA $2,200 $22,000 Immediate Needs Subtotal $0 Short Term Needs Subtotal $462,190 Total for Immediate and Short Term Needs $462,190 M O O O O O O O O O N O O O O O oo O O O O O O O O M --i o0 Vt L s9 v3 v3 v3 v3 ss v v3 v3 N N F 7 .y O 7 N M 7 M 7 7 O 7 N M 7 N N 0 .j .y .y O m � o x 0 0, o 0 0 omo vi N i � j. U N N o0 � N N '� � � m � v3 v3 m s°Os � � o o O o O a N N O °O m N 0 N a U .7 cn U� W 'A W W W W W W W O O ID ID C Vl M O ti O N Nl o ° o 0 0 �] x7— s .M... 9.2 Location Map, Site Plan, and Floor Plans i --22 7 � Service: Rd 0 -PC11 907 Dale Apartments 907 Dale Street Hutchinson, Minnesota 55350 UM Project No. 18.02.2126 Lew z West River Park 7 st Ave NW Vie$_ 6a P Washington Ave VI ny L1T� ! ��!C end=Ave-: -_ r� uV -- �_ 3rd Ave1� South.. -- r - 4th Ave SW Stb Ave SW 5th Aire SW o �WILRd SW G7 G� ' (9 CD -, vy Milwaukee Arse =5^V; �- U) —_ us hinson o . Southdate Apartments Dale JEj Up ild 4 Ave SW Hut Hutdhinson, MN 55350 I i � i ear Ave SW Linden 0 i j Oakland Park = W Cemeter• / — S Grade Rd SW CO r• u enttry Ave SE iry Ave SW t It _ f L7on��t--f'4V�-.��i19f-.1 tiI!! I 4 is f15 4 i The LJM Group, Inc. Figure 1 Site Plan TN -ilk AV, p 9.3 Photographic Documentation 1. 1 itle Flnotograpn ................................................................................................................................................................................................................................................. j. General View of F roperty: 5outn Elevation 5. General View of F roperty: vvest Elevation 1. C3eneral view of Nroperty: North Elevation ................................................................................................................................................................................................................................................ 4. General View of F roperty: Last Elevation o. uetacnea uarage Structure 7. Asphalt Parking and Paving VVuuu 111-V I -1-11u 8. Asphalt Parking and ice. -11W-1 ---U- 16. Exterior Steps/Main Entry -T 17. Exterior Building Finishes: Missing Siding 20. General View of Roofin }-_ ,fir �� 21. Interior of Common Area: Laundry Room 25. Interior of Apartment Unit: Kitchen ................................................................................................................................................................................................................................................. 27. Interior of Apartment Unit: Bedroom ................................................................................................................................................................................................................................................. 29. Interior of Apartment Unit: Bathroom ................................................................................................................................................................................................................................................. 26. Interior of Apartment Unit: Kitchen ................................................................................................................................................................................................................................................ 28. Interior of Apartment Unit: Bathroom ................................................................................................................................................................................................................................................ 30. Hot Water Equipment ................................................................................................................................................................................................................................................ 31. Undersink Plumbing 33. HVAC Equipment: Cooling 35. Electrical Meter Center 32. HVAU Equipment: Heating 34. Electrical Transformer Equipment 36. Electrical Panel 3/. Electrical Panel: Stab-Lok 39. Central Alarm Panel 41. Handicap Accessibility Provision: Parking ................................................................................................................................................................................................................................................. 38. Uistribution Wiring 4U. Fire Protection Component 42. Handicap Accessibility Provision: Ramp ................................................................................................................................................................................................................................................ 9.4 Supporting Documentation s i . / � � � � ■ � a � � A A.� §||| Vill, U ■ ■ . ' | i/ R | | | | | | | ■ § K | | q �§ - . : - f - : - - - - - - - 0 § \§\ a c Q Fz !J J E - SF g� u �EAto e y�t5_n� e4 a 3 $ �S al s ��a mz o�3i� m�a �JF2 gS yE� 4 9.5 Acronyms and Definitions Some of the terms and acronyms used in this PCR are defined below: ADA The Americans with Disabilities Act appropriate inquiry a request for information conducted by Freedom of Information Letter (FOIL), verbal request, or by other written request made by fax, electronic mail, overnight courier, or U.S. mail. Appropriate inquiry includes a good -faith effort conducted by the consultant to obtain the information considering the time constraints to prepare and deliver the PCR. ASTM— American Society for Testing and Materials building systems — interacting or independent components or assemblies that form single integrated units that comprise a building and its site work. Examples are pavement, structural frame, roofing, etc. BUR — Built-up Roofing deferred maintenance — physical deficiencies that cannot be remedied with routine maintenance, normal operating maintenance, etc., excluding de minimis conditions, which generally do not present a material physical deficiency to the subject property. easily visible — describes items, components, and systems that are conspicuous, and which may be observed visually during the walk-through survey without intrusion, removal of materials, exploratory probing, use of special protective clothing, or use of special equipment. EIFS Exterior Insulation and Finish System EUL Expected Useful Life expected useful life the average amount of time in years that an item, component, or system is estimated to function when installed new, assuming that routine maintenance is performed in a timely manner. FEMA Federal Emergency Management Agency FOIA — U.S. Freedom of Information Act (5 USC 552 et seq.) and similar state statutes. HVAC — Heating, Ventilating and Air Conditioning immediate costs — opinions of probable costs that require immediate action as a result of any of the following: (1) material existing or potential unsafe conditions, (2) material building or fire code violations, or (3) conditions that, if left unremedied, have the potential to result in or contribute to critical element or system failure within one year or will result most probably in a significant escalation of remedial cost. material, adj. — having significant importance or great consequence to the subject property's intended use or physical condition. observation — the visual survey of items, systems, conditions, or components that are readily accessible and easily visible during a walk-through survey. obvious — plain, evident, and readily accessible; a condition or fact not likely to be ignored or overlooked by a field observer when conducting a walk-through survey; that which is practically reviewable and would be understood easily by a person conducting the PCA. opinions of probable costs — estimation of probable costs or preliminary budgets for suggested remedies. PCA — Property Condition Assessment PCR — Property Condition Report physical deficiency — conspicuous defect or significant deferred maintenance of a property's material systems, components, or equipment as observed during the field observer's walk-through survey. Included within this definition are material life -safety or building code violations and material systems, components, or equipment that are approaching or have reached or exceeded their typical EUL or whose RUL should not be relied upon in view of actual or effective age, abuse, excessive wear and tear, exposure to the elements, lack of proper or routine maintenance, etc. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not constitute a material physical deficiency of the subject property. property — the site improvements, which are inclusive of both site work and buildings. property condition assessment — the process by which a person or entity observes a property, interviews sources, and reviews readily available documentation for the purpose of developing an opinion and preparing a PCR of a commercial real estate's current physical condition. property condition report — a written report, prepared in accordance with the recommendations contained in the ASTM E 2018-15 Guide, that outlines the consultant's observations, opinions as to the subject property's condition, and opinions of probable costs to remedy any material physical deficiencies observed. publicly available — records or other information, the source of which allows access to the information by anyone upon request. readily accessible — describes areas of the property that are promptly made available for observation by the field observer at the time of the walk-through survey and do not require the removal of materials, personal property, furniture, etc., and that are safely accessible in the opinion of the field observer. readily available — describes information or records that are easily and promptly provided to the consultant upon making a request in compliance with an appropriate inquiry and without the need for the consultant to research archive files. remaining useful life — a subjective estimate based upon observations, or average estimates of similar items, components, or systems, or a combination thereof, of the number of remaining years that an item, component, or system is estimated to be able to function in accordance with its intended purpose before warranting replacement. Such period of time is affected by the initial quality of an item, component, or system, the quality of initial installation, the quality and amount of preventive maintenance exercised, climatic conditions, extent of use, etc. RTU — Rooftop Unit RUL — Remaining Useful Life short-term costs — opinions of probable costs to remedy physical deficiencies, such as deferred maintenance, that may not warrant immediate attention, but require repairs or replacements that should be undertaken on a priority basis in addition to routine preventive maintenance. Such opinions of probable costs may include costs for testing, exploratory probing, and further analysis should this be deemed warranted by the consultant. The performances of such additional services are beyond the PCA scope of work. Generally, the time frame for such repairs is within one to two years. structural frame — the components or building system that supports the building's nonvariable forces or weights (dead loads) and variable forces or weights (live loads). 9.6 Qualifications Therese M. Hovanec Senior Project Manager Profile Ms. Hovanec has over 25 years of experience in consulting engineering, including performing civil engineering construction surveys, Property Condition Assessments (PCA) and Phase I/II Environmental Site Assessments (ESA), and forensic engineering. Project Experience Performed over 500 combination Phase I Environmental Site Assessments (ESA) and Property Condition Assessment (PCA) projects throughout the country. Performed pre -purchase due diligence inspections for commercial and multifamily residential properties throughout the country and Puerto Rico. Performed forensic engineering investigations involving concrete, masonry, and building construction components and provided expert witness testimony and support. Coordinated and completed Phase II investigations, including subsurface investigations and coordination with regulatory agencies for approval and confirmation of remedial activities. Selected clients have included the Continental Property Group; JPI, Inc.; Realife, Bear Stearns, CRIIMI Mae Services, and John Hancock Real Estate Finance. Education/ B.C.E. Bachelor of Civil Engineering — University of Registration Minnesota Building Inspections Services ADA Training Course — University of Texas -- Arlington Contractors License — State of California HUD MAP Training Program — Minneapolis, MN K. Jeff Fairchild Project Manager Profile Mr. Fairchild has over 25 years of experience in construction evaluation, renovation, and management, including contracting and renovation, institutional management and facility evaluation. His experience also includes performing combination Phase I Environmental and Property Condition site assessments. Project Experience Performed over 500 Property Condition Assessment (PCA) projects throughout the country and combination Phase I Environmental Site Assessments (ESA) and PCAs. Developed nationwide program of conducting property condition assessment services for national engineering consulting company. Responsibilities included development of numerous protocols, design of inspection systems and forms, hiring and training of inspectors, coordination of project scheduling, and client relations. Supervised workforce in performing Property Condition Assessments (PCA) and Phase I/II Environmental Site Assessments for portfolios totaling approximately $250,000,000 in assets. Managed roof -consulting project for national engineering firm, performing roof testing and evaluation. Project included identification of existing roofing systems, evaluation of current conditions, analysis of existing damage and defects, survey of system moisture using capacitance and nuclear gauges, and general recommendations for repairs/replacement. Completed 80 campuses, with over 400 buildings in a 13-week period. Education/ Bachelor of Arts — Hardin Simmons University Certification Master of Divinity Degree, S.W.B. T.S Registered Roof Observer (ROO) — Roof Consultants Institute Professional Professional Member, The Roof Consultants Institute (RCI) Affiliations HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Hutchinson Pillars Project "Public Comment" Report Department: City Council LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Steve Cook Agenda Item Type: Presenter: None Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: At the December 27 council meeting, the Public Arts Commission announced that they would be accepting public comments on the "Hutchinson Pillars" project that is proposed to be a part of the Main Street 2020 streetscaping plan. Comments would be accepted through January 31, 2019. Project description information and comment forms were available at city hall and on the Public Arts Commission website. In addition to the announcement at the December 27 meeting, the public was invited to submit comments in a letter to the editor in the Hutchinson Leader, posts on the city's Facebook page, and in a follow-up reminder at the end of the January 22 council meeting. Attached is a report of the comments received, as well as the project description and comment form. BOARD ACTION REQUESTED: None/Report Only Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: 'HUTCHINSON �PIIBLIC ARTS "Hutchinson Pillars" Project Description Background: As plans were being developed for the Main Street 2020 reconstruction project, the City, MnDOT, the project consultant, and the citizens' advisory committee discussed a variety of streetscaping options that could be included as part of the project. Opportunities to add public art was one option that was discussed and the Hutchinson Public Arts Commission (PAC) was encouraged to take the lead on developing a plan to include public art. Basis: The PAC wanted to incorporate art and history into the project, which is consistent with the 2013 Imagine Hutchinson Downtown Plan and the City's recently adopted strategic plan. At the same time, it was important that the project complement the historic nature of downtown and be in harmony with other streetscaping efforts. The PAC also wanted the art to be visible and accessible, while celebrating the city's past, present and future. Theme: Through a number of discussions, the PAC settled on the idea of four pillars placed at strategic locations along Main Street. Each of the pillars will represent a core value that has been important to Hutchinson since its founding. The four values are Service, Humanity, Stewardship and Education. Each of these is broad enough that they encompass a variety of important community ideals. Some examples for each are included below. • Service: includes our veterans, emergency service personnel, service clubs, government, volunteerism and partnerships. • Humanity: includes faith, equality, helping others, tolerance, compassion, generosity, the arts, history and building community. • Stewardship: includes our parks, trails, the river, recycling and composting, our urban forest, renewable energy and various environmental efforts. • Education: includes life-long learning, our families, our schools (public and private), teachers, programs, extracurricular activities and non -school related activities. Elements: Each pillar will be four feet tall and two feet square. The pillars will have yellow brick facing similar to the library and bandshell in library square. On top of each pillar will be a bronze oak tree (or similarly durable material) approximately two feet tall. Raised metal side panels will be placed on the two non -traffic sides of each pillar and will incorporate art and text to tell the meaning of the pillar's value and its relation to Hutchinson. The panels may also be arched to compliment the windows of the library, downtown power plant and other streetscaping. The oak tree was chosen for the art on top of the pillars because the oak tree is symbolic of strength, protection, longevity, wisdom, nobility, safety, dignity and steadiness. Their extensive root system is also part of their strength and foundation, just like the values are part of Hutchinson's roots and foundation. In addition, the oak tree has always been a part of Hutchinson and local stands are remnants of the Big Woods that transitioned into the western prairies. The tree art also recognizes Hutchinson's status as Minnesota's second oldest Arbor Day Foundation "Tree City USA" (40t" year in 2018). Locations: With MnDOT's help, several possible locations were identified. Three of the locations will be in new Main Street bump -outs; including at the SW corner of 15t Ave North (by Dairy Queen) and at the Northeast and Southwest corners of 15t Ave S (by Library Square and Citizen's Bank). The fourth location is just off Main Street along the north side of 3rd Ave South (by the post office). The 15t Ave North and 3rd Ave South locations book -end downtown, while the 15t Ave South locations provide balance in the center. Financing: Proposed financing for the project will come from a combination of city funds (up to $38,000), public art funds ($18,000) and grants ($19,000). Please note that the city and public art funds will come from existing funds so taxes will not need to be raised for this project. Also, the budget is based on conservative estimates and actual costs could be less. Art Selection Process: Following preliminary approval by the city council, the PAC will solicit artists for both the oak tree sculptures and the side panel art. Selection of the artists and the artwork will be done by a panel consisting of PAC members, council members and community members for the council's final approval. I HUTCHINSON I PUBLIC ARTS Main Street 2020 "Hutchinson Pillars" Comment Form (Due by January 31, 2019) Name: Address: City: Comments (additional comments can be included on the back): Forms may be dropped off at city hall, mailed to the address below or emailed to info@ hutchinsonpublicarts.com. Thank you! Hutchinson Public Arts Commission City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 I-L HUTCHINSON PUBLIC ARTS "Hutchinson Pillars" Public Comment Report The Public Art Commission received sixteen comments about the "Hutchinson Pillar" project. Four were received by email, one was dropped off at city hall and the rest were received by postal mail. Of the sixteen, three comments were against the project and the rest were in support. To summarize, the comments against the project were concerned about the cost and if it was the best use of the money. Those in favor expressed support for making art a part of the Main St. 2020 project for a variety of reasons. The comments received are listed below in their entirety. Opposed: PLEASE, PLEASE stop spending tax dollars on the ARTS. I worry that we will eventually end up with that very horrid River Horse. You cannot come up with a better way to use $38,000 tax dollars? If the ARTS want to put up eyesores, establish the equivalency of the dog park, for which the ARTS should pay. Please use my money more wisely. Thank you. Just one more waste of taxpayer money! Hello, In regards to spending $75,000 for pillars for Hutchinson Main Street, I can see no justification for spending that amount of money. This is twice as much as I make through my two jobs in an entire year. Taxes are high in town. The town is well managed by the council. But I don't believe this is money well spent. Thank You. In Favor: I like art. I support more art in Hutchinson. Yah! I'm writing in support of the addition of artwork into the Main Street expansion project. Art work incorporated into a downtown is aesthetically pleasing and will enhance the appearance and atmosphere of the area. Thank you. The pillar project is an excellent chance to dress up main Street during the 2020 MNDOT project. The Pillars, Streetscape and the pedestrian friendly changes will help to improve the dynamic of downtown. It fits well with the Carnegie Library, the State Theater as well as the other historic components in downtown. I-L HUTCHINSON PUBLIC ARTS The pillar project is a great way to add something aesthetically pleasing to downtown Hutchinson. Public art is a great way to enhance and walking space and this project would only add to what is already located in our downtown. The proposal for the design is perfectly symbolic of the community and I love that they will include educational, historical information on them as well. These pillars would be able to be enjoyed year round, and would require practically no maintenance. All in all, this project would help develop downtown in an attractive way, highlight the values and history of our community for both residents and visitors, and, with all funding coming from existing sources, would not come at the expense of the taxpayer. I support the addition of the new public art as a part of the main Street 2020 project in Hutchinson. As an avid traveler, I am drawn to cities that offer public art. I feel strongly about the opportunity Hutchinson has to improve/enhance the arts community with this project. We are in favor of adding public art to the mainstreet project of 2020. I would like to see art included as a key part of Main Street 2020, with the focus on presenting the work of a diverse group of artists. I support the "Hutchinson Pillars" project. Public art is a draw for me a I travel from town to town. What a great way to support our community with pillars representing Service, Humanity, Stewardship & Education. How could this be looked as anyway but great for Hutchinson. We support the public art project that will place bronze tree sculptures on Main Street. This project ties nicely with Hutchinson's tree city designation0. I am in favor of putting art on main Street Hutchinson for the 2020 project. Art in our community is not only attractive, but brings people together. It's incentive to get out & explore! The followine is from one comment letter: I have been following the articles and information on the upcoming project that would tie to the 2020 Downtown Project. I like the idea of the pillars in the downtown area. I think they would fit in very well, both in the artistic sense as well as the placement and timing. The sense of being able to walk through downtown and see the different pillars and read the information on each appeals tome much more than just one larger statement piece placed in one spot. I_L HUTCHINSON PUBLIC ARTS There has been a good reception to the Sculpture Walk these past years and this builds on that. One piece of artwork doesn't draw someone to Hutchinson, but being known as a community of sculptures, artwork, murals, trails music and art festivals, theater and more does draw people to the areas to explore. Once here there are plenty of other things to entice them to stay or come back. Also having a community that appreciates and places value on the arts does influence people when they are deciding if they want to take a job in Hutchinson and move themselves or their families here. Many non-profit groups are investing in the arts in town and it shows when you look at the arts economic development research and studies that have been done. This project definitely adds to that. The other piece I like is how it relates to all walks of life in Hutch, whether it be the arts, history, education or our social fabric. The educational component is something that could be expanded on in the future. I highly recommend this project to move forward. The following is from one comment letter: My wife and I strongly support public art in the Hutchinson Pillars Project. We live near to downtown and enjoy walking to the park, library, restaurants and movie theater. Part of the enjoyment comes from a city center that is well -kept, active with businesses, and has aesthetic value. We regularly bring visitors to the statues of the Hutchinson Brothers and Chief Little Crow to share about or town's history. Having public symbols help remind us of the values and history. Sharing stories about Hutchinson's past makes us proud of and excited for the future of our home. The addition of the town pillars will further improve the downtown area by expanding the impacted areas of art and serving as a constant reminder of the unifying elements of Hutchinson for those who see them daily. Additionally by displaying this art and Hutchinson's values prominently, we get to share the story with visitors and travelers. This project will be a great investment locally and artistic billboard for the great things happening in Hutchinson. Submitted by Steve Cook, Public Arts Commission Chair. CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 1/23/19 - 2/12/19 Check Date Check Vendor Name Description Amount 01/23/2019 204295 FORBES AUTO & SERV FORBES UB ADJUSTMENT 12/21 PYMT 900.00 01/25/2019 204296 TIFFANY WALKER REFUND FOR PRCE FEE DUE TO INJURY 84.00 02/01/2019 EFT874 EFTPS PAYROLL 1/13 - 1/26/2019 66,065.62 02/01/2019 EFT875 Child Support PAYROLL 1/13 - 1/26/2019 149.54 02/01/2019 EFT876 MN Dept of Revenue PAYROLL 1/13 - 1/26/2019 13,464.13 02/01/2019 EFT877 Provident Life PAYROLL 1/13 - 1/26/2019 666.41 02/01/2019 EFT878 PERA PAYROLL 1/13 - 1/26/2019 50,586.22 02/01/2019 EFT879 TASC-Flex PAYROLL 1/13 - 1/26/2019 1,532.02 02/01/2019 EFT880 TASC-H S A PAYROLL 1/13 - 1/26/2019 13,322.85 02/01/2019 EFT881 ICMA PAYROLL 1/13 - 1/26/2019 2,360.00 02/01/2019 EFT882 VOYA PAYROLL 1/13 - 1/26/2019 480.00 02/01/2019 EFT883 MNDCP PAYROLL 1/13 - 1/26/2019 350.00 02/01/2019 204297 Manual Payroll check PAYROLL 1/13 - 1/26/2019 338.43 02/01/2019 204298 NCPERS PAYROLL 1/13 - 1/26/2019 368.00 02/01/2019 204299 HART PAYROLL 1/13 - 1/26/2019 566.37 02/12/2019 204300 48FORTY SOLUTIONS, LLC PALLETS FOR CREEKSIDE PRODUCTION 15,688.02 02/12/2019 204301 ABDO EICK & MEYERS 2018 SERVICES FOR FINANCIAL AUDIT 4,500.00 02/12/2019 204302 ACE HARDWARE VARIOUS REPAIR & MAINTENANCE SUPPLIES 560.84 02/12/2019 204303 VOID 02/12/2019 204304 ALLSTATE PARTS OF GLENCOE BRACETS, MUDFLAPS FOR CREEKSIDE SEMI -TRACTOR 261.18 02/12/2019 204305 ALPHA WIRELESS JANUARY MAINT- POLICE COMMUNICATIONS 1,094.75 02/12/2019 204306 AMC SWAA WINTER TRAINING SEMINAR- CREEKSIDE 40.00 02/12/2019 204307 AMERICAN BOTTLING CO FEBRUARY COST OF GOODS - LIQUOR STORE 132.32 02/12/2019 204308 AMERICAN TEST CENTER #LADDER TRUCK 1: ANNUAL SAFETY INSPECTION 600.00 02/12/2019 204309 AMERICAN WATER WORKS ASSN MEMBERSHIP 4/1/19 - 3/31/20 208.00 02/12/2019 204310 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING FEES/BOARDING 1,026.62 02/12/2019 204311 ARCTIC GLACIER USA INC. 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JANUARY COST OF GOODS - LIQUOR STORE 42,456.88 02/12/2019 204401 JUUL CONTRACTING CO 1/28 & 1/29 CONTRACTED SNOW HAULING 2,200.00 02/12/2019 204402 KAESER COMPRESSORS COMBINED OIL/AIR COOLER CPL- WTP 1,612.03 02/12/2019 204403 KENNEDY SCALES INC REPAIRS TO CREEKSIDE SCALE 693.02 02/12/2019 204404 KERI'S CLEANING & HANDYMAN SERVICES JAN CLEANING - CITY CTR, LIBRARY, SR DINE, FIRE 5,238.00 02/12/2019 1204405 KOSEK, JEFFREY CONTRACTED SNOW REMOVAL 1/28 704.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 1/23/19 - 2/12/19 Check Date Check Vendor Name Description Amount 02/12/2019 204406 KRANZ LAWN & POWER PARTS FOR PARKS & STREETS EQUIPMENT 404.99 02/12/2019 204407 KRIS ENGINEERING CURB BUMPERS FOR PLOW BLADES 930.88 02/12/2019 204408 L & P SUPPLY CO FILTERS, OIL FOR WWTP 99.74 02/12/2019 204409 LANO EQUIPMENT OF NORWOOD FILTERS FOR CEMETERY 109.68 02/12/2019 204410 LEAGUE OF MN CITIES 2019 MNBCA LASO TRAINING FOR T.KLOSS 13.00 02/12/2019 204411 LITCHFIELD BUILDING CENTER SUPPLIES FOR FIRE DEPT 352.01 02/12/2019 204412 LITE ELECTRIC INC WIRE VENT FAN AT WATER ST GARAGE 1,200.00 02/12/2019 204413 LOCATORS & SUPPLIES LOCATOR TRAINING - WATER EMPLOYEES 250.00 02/12/2019 204414 LOCHER BROTHERS INC JANUARY COST OF GOODS - LIQUOR STORE 30,061.15 02/12/2019 204415 MACQUEEN EQUIP LLC AUTOMOTIVE PART FOR WWTP 1,344.57 02/12/2019 204416 MARCO TECHNOLOGIES, LLC DECEMBER COPIERS CHARGE - OTHER CITY FACILITIES 919.34 02/12/2019 204417 MARCO TECHNOLOGIES, LLC JANUARY COPIERS CHARGE - CITY CENTER 934.18 02/12/2019 204418 MATHESON TRI-GAS INC HIGH PRESSURE ACETYLENE - WWTP 19.07 02/12/2019 204419 MCLEOD COUNTY ATTORNEY COUNTY PORTION OF DRUG FORFEIT AUCTION 4.65 02/12/2019 204420 MCPA 2019 MEMBERSHIP - POLICE 50.00 02/12/2019 204421 MDRA 2019 MDRA DUES FOR DEPUTY #53 - DMV 500.00 02/12/2019 204422 MEDICA February Medical Insurance 138,929.96 02/12/2019 204423 MEI TOTAL ELEVATOR SOLUTIONS FEB-MAR BI-MONTHLY SERVICE - LIBRARY 183.33 02/12/2019 204424 MENARDS HUTCHINSON VARIOUS REPAIR & MAINTENANCE SUPPLIES 2,985.12 02/12/2019 204425 VOID 02/12/2019 204426 MESSAGE MEDIA U.S.A., INC FEBRUARY ACCESS FEE - POLICE 30.00 02/12/2019 204427 MIELKE, PHILLIP REIMB: FOOTWEAR 127.99 02/12/2019 204428 MINI BIFF 12/13/18 - 1/9/19 @ SHOOTING RANGE 91.29 02/12/2019 204429 MINNEAPOLIS MARRIOTT NORTHWEST RANDY CZECH HOTEL STAY - WWTP CONFERENCE 329.36 02/12/2019 204430 MINNEAPOLIS, CITY OF DEC 2018 APS TRANSACTION FEES 38.70 02/12/2019 204431 MINNESOTA CHIEFS OF POLICE ETI REGISTRATION 555.00 02/12/2019 204432 MINNESOTA DEPT OF COMMERCE INSPECTION #28001369 AT CREEKSIDE 331.50 02/12/2019 204433 MINNESOTA DEPT OF HEALTH Q3 & Q4 STATE FEE - WATER CONNECTIONS 15,870.00 02/12/2019 204434 MINNESOTA DEPT OF HEALTH RAQUEL BUSHMAN: FOOD MANAGER CERTIFICATI 35.00 02/12/2019 204435 MINNESOTA DEPT OF TRANSPORTATION STRUCTURAL METALS, RECORD SMAPLING, MAT 2,228.97 02/12/2019 204436 MINNESOTA POLLUTION CONTROL AGENCY RANDY CZECH: A/B EXAM REFRESHER 390.00 02/12/2019 204437 MINNESOTA POLLUTION CONTROL AGENCY RANDY CZECH: EXAM FEE 55.00 02/12/2019 204438 MINNESOTA RURAL WATER ASSN JOHN KENT: MRWA CONFERENCE REGISTRATION 240.00 02/12/2019 204439 MINNESOTA UNEMPLOYMENT INSURANCE 4TH QTR UNEMPLOYMENT BENEFITS 2018 864.47 02/12/2019 204440 MINNESOTA VALLEY TESTING LAB WWTP SAMPLE TESTING 1,792.90 02/12/2019 204441 MN DEPT OF NATURAL RESOURCES 2018 WATER USE, SUMMER SURCHARGE 6,419.02 02/12/2019 204442 MOBILE MAINTENANCE INC. 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CLOUD JOHN KENT: HOTEL STAY 234.27 02/12/2019 1204465 QUILL CORP VARIOUS RESTROOM SUPPLIES 739.45 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 1/23/19 - 2/12/19 Check Date Check Vendor Name Description Amount 02/12/2019 204466 RDO EQUIPMENT CO. #940 LOADER: REPAIR LOW POWER - CREEKSIDE 5,042.65 02/12/2019 204467 REFLECTIVE APPAREL FACTORY INC SAFETY JACKETS - PUBLIC WORKS 415.60 02/12/2019 204468 REGION V EMERGENCY MGMT ASSN 2019 MEMBERSHIP 15.00 02/12/2019 204469 REINER ENTERPRISES INC CREEKSIDE FREIGHT TO VARIOUS LOCATIONS 1,466.25 02/12/2019 204470 RITE INC POS & INVENTORY EQUIPMENT - LIQUOR STORE 3,531.51 02/12/2019 204471 ROTOCHOPPER SPRINGS FOR GRINDER - CREEKSIDE 1,096.35 02/12/2019 204472 RUNNING'S SUPPLY SUPPLIES FOR VARIOUS DEPTS 547.56 02/12/2019 204473 SALTMAN LLC SOFTENER SALT FOR CIVIC ARENA 246.00 02/12/2019 204474 SAM'S CLUB DIRECT CONCESSIONS SUPPLIES - RECREATION 166.10 02/12/2019 204475 SAM'S TIRE SERVICE REPAIRED LF TIRE ON CREEKSIDE LOADER 391.00 02/12/2019 204476 SCHULTE, JOSH REIMB: FOOTWEAR 175.00 02/12/2019 204477 SHAKOPEE, CITY OF 2019 DUES SW METRO DRUG TASK FORCE 8,400.00 02/12/2019 204478 SHELLENBARGER, VIRGENE REIMB: MEAL FOR EDUCATION/TRAINING 50.00 02/12/2019 204479 SHI INTERNATIONAL CORP 2019 WINDOWS SOFTWARE LICENSING 1,612.00 02/12/2019 204480 SHORT-ELLIOT-HENDRICKSON, INC WATER RATE STUDY & OTHER CONSULTING SVCS 6,400.11 02/12/2019 204481 SIMONSON LUMBER CO OAK BOARDS FOR PARKS DEPT 23.10 02/12/2019 204482 SOLUS LED LED WALLPACK - CIVIC ARENA 225.00 02/12/2019 204483 SOUTHERN WINE & SPIRITS OF MN JANUARY COST OF GOODS - LIQUOR STORE 22,061.71 02/12/2019 204484 SRF CONSULTING GROUP SOUTH GRADE RD FINAL DESIGN THRU 12/31/1 13,991.33 02/12/2019 204485 STANDARD PRINTING-N-MAILING JANUARY MAILING / POSTAGE SERVICES 793.39 02/12/2019 204486 STAPLES ADVANTAGE VARIOUS OFFICE SUPPLIES 469.51 02/12/2019 204487 STATE OF MINNESOTA STATE'S SHARE OF DRUG FORFEIT AUCTION 2.33 02/12/2019 204488 STREET COP TRAINING M SALAZAR: STREET SMART COP/PRO-ACTIVE P 199.00 02/12/2019 204489 STREICHER'S UNIFORM BADGES, COLLAR INSIGNIAS 76.93 02/12/2019 204490 SUN LIFE FINANCIAL JanuaryAdmin Fees 4,504.90 02/12/2019 204491 TASC March 2019 Flex Adm. Fees 125.40 02/12/2019 204492 THE CABLE COMPANY REPAIR SUPPLIES FOR RECREATION BUILDING 205.82 02/12/2019 204493 THOMSON REUTERS-WEST DECEMBER WEST INFO CHARGES 126.00 02/12/2019 204494 TITAN MACHINERY #447: THERMOSTAT, GASKET - STREETS 45.00 02/12/2019 204495 TITAN MACHINERY CREEKSIDE ANNUAL LOADER MAINT & REPAIRS 3,937.93 02/12/2019 204496 TRI COUNTY WATER BOTTLE WATER DELIVERY - POLICE & CREEKSIDE 103.75 02/12/2019 204497 TRUE BRANDS JANUARY COST OF GOODS - LIQUOR STORE 187.62 02/12/2019 204498 UNITED FARMERS COOP FUEL FOR HATS FUEL SYSTEM 30,202.42 02/12/2019 204499 UNUM LIFE INSURANCE CO OF AMERICA FEBRUARY LIFE INSURANCE 2,611.06 02/12/2019 204500 VER-TECH SOLUTIONS & SERVICES FEBRUARY DISHMACHINE RENTAL 69.95 02/12/2019 204501 VERIZON WIRELESS DEC 11- JAN 10 SERVICES PD 3,886.43 02/12/2019 204502 VERN HAHN REIMBURSE FOR DAMAGE TO MAILBOX BY PLOW 275.00 02/12/2019 204503 VFW POST 906 CITY OF HUTCH CHRISTMAS PARTY 1,830.00 02/12/2019 204504 VIKING BEER JANUARY COST OF GOODS - LIQUOR STORE 23,580.85 02/12/2019 204505 VIKING COCA COLA JANUARY COST OF GOODS - LIQUOR STORE 619.60 02/12/2019 204506 VINOCOPIA INC JANUARY COST OF GOODS - LIQUOR STORE 7,411.33 02/12/2019 204507 VIVID IMAGE TECH SUPPORT: WEBSITE ACCESSIBILITY COMP 10,535.00 02/12/2019 204508 VOLLMER, EVAN REIMB: UBER RIDES TO AIRPORT/HOTEL AT CONF 75.10 02/12/2019 204509 WASTE MANAGEMENT OF WI -MN 1/1- 1/15'19 RESIDENTIAL REFUSE DISPOSAL 5,668.19 02/12/2019 204510 WELCOME NEIGHBOR NEW RESIDENT VISITS 60.00 02/12/2019 204511 WEST CENTRAL SHREDDING SHREDDING SERVICE AT CITY CENTER 139.00 02/12/2019 204512 WINE COMPANY, THE JANUARY COST OF GOODS - LIQUOR STORE 2,727.90 02/12/2019 204513 WINE MERCHANTS INC JANUARY COST OF GOODS - LIQUOR STORE 817.92 02/12/2019 204514 WOLD ARCHITECTS & ENGINEERS NEW POLICE FACILITY - SD THRU 1/31/19 7,355.55 02/12/2019 204515 WORK RESOLVE MEDIATION LLC 12/7/18 SERVICES FOR CITY LEGAL MATTER 1,250.00 02/12/2019 204516 WSB & ASSOCIATES, INC. DEC SERVICES: CAMPBELL & OTTER LAKES RES 5,168.75 Total- Check Disbursements: $ 1,074,475.50 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE FROM 1/23/19 - 2/12/19 Check Date Check Vendor Name Description Amount 02/12/2019 204339 CROW RIVER SIGNS DIGITAL PRINT MAPS 135.00 Total- Check Disbursements: $ 135.00 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Public Hearing for 5th Avenue South Reconstruction (1-1/P19-01) Department: PW/Eng LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Public Hearing Time Requested (Minutes): 20 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff administered a neighborhood meeting on Tuesday, February 5th, with property owners adjacent to the proposed project referenced above. Please see the attached Neighborhood Meeting Notice (mailed to all property owners) and Neighborhood Meeting Information Sheet (provided to meeting attendees) documents. Also, an estimated improvement assessment amount was provided to adjacent property owners within the formal Public Hearing notice mailing. At this point, City staff is not aware of any major property owner concerns relative to this proposed project's construction and associated special assessments. Following a brief project overview by City staff and potential public comments, staff will request that the City Council move forward with the final preparation of project plans/specifications and future advertisement for bids. The anticipated bid opening date is Wednesday, April 3rd (11:00 AM). BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 2,490,000.00 Total City Cost: $ 2,330,000.00 Funding Source: Bonding, State Aid & Utility Funds Remaining Cost: $ 160,000.00 Funding Source: Improvement Special Assessments RESOLUTION NO. 15013 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 1/PROJECT NO. 19-01 WHEREAS, a resolution of the City Council adopted the 22nd day of January 2019, fixed a date for a Council Hearing on the following improvements: 5th Avenue South Reconstruction: Lynn Road SW to 5th Avenue Bridge; roadway reconstruction by construction of grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, trail, sidewalk, landscaping, striping, signage, restoration and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the resolution adopted the 22nd day of January 2019. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Kent Exner is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 5. The City Council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of tax exempt bonds. Adopted by the Council this 12th day of February 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15014 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 1/PROJECT NO. 19-01 WHEREAS, the Director of Engineering/Public Works has prepared plans and specifications forthe following described improvement: 5th Avenue South Reconstruction: Lynn Road SW to 5th Avenue Bridge; roadway reconstruction by construction of grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, trail, sidewalk, landscaping, striping, signage, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering/Public Works shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the Director of Engineering/Public Works until 11:00 am on Wednesday, April 3rd, 2019, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Director of Engineering/Public Works, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 6:00 pm on Tuesday, April 23rd, 2019 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering/Public Works and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 12th day of February 2019. Mayor: Gary Forcier City Administrator: Matt Jaunich A Project Neighborhood Meeting Notice Letting No. 1/Project No. 19-01 5th Avenue South Reconstruction Project Tuesday, February Sth ♦ S: 30 PM to 7: 00 PM (S: 40 PMpresentation) Hutchinson Citv Center (111 Hassan St. SE - Council Chambers) INTRODUCTION The City of Hutchinson would appreciate the opportunity to review the upcoming 51h Avenue South Reconstruction project with you. At this time, project construction is anticipated to start in the spring/summer of 2019. The intent of this meeting is to provide a general project review and discuss the preliminary roadway/sidewalk/trail corridor layout. There also will be some initial information provided regarding potential property assessments associated with this project. PROPOSED PROJECT IMPROVEMENTS The project area consists of the 51h Avenue South corridor from Lynn Road to the South Fork of the Crow River bridge (3M entrance area). This street has been identified as needing significant repairs by the City's Pavement Management Program and existing condition observations. At this point, this proposed project is only being considered and is subject to not being addressed this coming construction season depending on City Council approvals and/or City funding limitations. The proposed project consists of reconstruction of the existing roadway surface/section, limited utility (water & sanitary sewer) replacements/upgrades, limited drainage/storm sewer improvements, draintile installation, signing/striping, street lighting, sidewalks, trails, landscaping and restoration. In regards to project financing, a portion of the planned work required to accomplish this project is to be funded by Municipal State Aid funding. However, the remainder of the work will need to be funded by City bonds, utility funds and property improvement special assessments. Currently, the proposed project area has been established, but the details of the anticipated improvements are subject to change depending on property owner, public, City Council and/or staff input. HEARINGS/PROCESS This Neighborhood Meeting is the first step in the process. This meeting will be an informal discussion regarding the project that allows City staff to communicate preliminary information regarding what the project is proposed to include and to provide a preliminary estimate of specific property assessments to property owners. This informal discussion will allow individual questions/comments to be heard and for a general review of the project to occur prior to the first official hearing required by the formal project assessment process. The first official hearing, the Public Hearing, is scheduled to occur at the February 5" City Council meeting (6:00 PM). This meeting will be televised and is the formal presentation of the proposed project to the City Council. Public input time is included and welcomed at this meeting. Approval at this hearing does not mean that the project will be constructed as presented. This will be the point at which a formal decision will be made by the City Council as to whether or not City staff should continue the special assessment process and move on to the next step of completing the project plans/specifications with the understanding that actual construction bids for completing the work will be requested. The second official hearing, the Assessment Hearing, would be during another City Council meeting after receiving the construction bids (most likely in April or early May). At that point, City staff will prepare final assessment amounts for each property, and mail them out in advance of the meeting. At this hearing, property owners will then be given the opportunity to comment on the merits of both the project and the proposed amount of the assessments. Questions, thoughts and concerns regarding the project or associated assessments would be heard by the City Council, and official action on whether or not to award the project work for construction would be taken. To formally contest an assessment, a written/signed objection letter must be provided to the City Administrator prior to or at the Assessment Hearing. This action then allows you, the property owner, to appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment (typically the Assessment Hearing date) and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. ASSESSMENTS As described above, this project's roadway work is considered to be a reconstruction project, thus a portion of the total cost of these improvements will be assessed to the adjacent private properties per the City's Special Assessment Policy and adopted 2019 Fee Schedule. The anticipated assessment amounts/approach appear to be consistent and fair with respect to past City improvement projects. Per currently identified funding sources and recent assessment calculations, a significant portion of the overall project cost will still be incurred by Municipal State Aid, utility funds and City bonding. SCHEDULE & CONSTRUCTION ITEMS As previously mentioned, construction is anticipated to start in the spring/summer of 2019. The project should be completed within one construction season (weather dependent) including final paving and turf restoration work. At this time, we encourage adjacent property owners to plan for the relocation of irrigation systems, invisible dog fences, personal landscaping features, etc. from the roadway right-of-way (typically extends 15' from the street edge). Also, if necessary, project staff will be contacting specific property owners to request permission (right -of -entry form) and/or temporary construction easements to properly construct a grading match to your lawns/driveways/landscaping features, address tree removals/replacements and/or install utilities. GENERAL INFORMATION Please feel free to contact Kent Exner/City Engineer at 234-4212 or kexner&ci.hutchinson.mn.us if you have any questions, comments or concerns that you would like addressed. City Engineering Department staff would be willing to meet at your property to further discuss the proposed improvements. Thank you for your time and consideration! February 5, 2019 ♦ 5:30 — 7:00 PM ♦ City Center Proiect Scope PARTIAL STREET RECONSTRUCTION — 5" Avenue South (from Lynn Road to SFCR Bridge); roadway reconstruction by construction of grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, trail, sidewalk, landscaping, restoration and appurtenances. Estimated Proiect Costs & Funding Estimated Roadway Reconstruction Construction Cost $ 2,000,000 Estimated Project Expenses (Engineering, Administration, Geotechnical. Lighting,etc.) $ 490,000 Estimated Total Project Cost $ 2,490,000 City Bonding $ 1,090,000 Improvement Assessments $ 160,000 State Aid $ 990,000 Water Fund $ 50,000 Wastewater Fund $ 50,000 Stormwater Fund $ 150,000 Estimated Funding $ 2,490,000 City Pays For ■ Street Rehabilitation — about 50% of pavement, curb replacements, draintile, storm sewer and restoration costs ■ Partial Street Reconstruction — about 50% of pavement, curb installation, draintile, storm sewer and restoration costs ■ Full Street Reconstruction — about 50% of pavement, curb installation, draintile, storm sewer, sewer/water trunk mains and restoration costs ■ Mill & Overlay — about 50% of pavement, curb replacements, structure adjustments and restoration costs ■ Alley Reconstruction — about 50% of pavement, grading, drainage improvements and restoration costs ■ Sanitary Sewer & Water Main Improvements — 100% Property Owner Pays For ■ Residential/Commercial Streets — about 50% of Street Rehab, Partial Street Recon, Full Street Recon, Mill & Overlay and Alley Recon costs f 250 ■ Proposed Assessment Rates (40'-width basis) o Street Rehabilitation $52.50/Frontage Foot o Partial Street Reconstruction $65.00/Frontage Foot (36'-width used=$58.50/FF) o Full Street Reconstruction $80.00/Frontage Foot o Mill & Overlay $30.00/Frontage Foot o Alley Reconstruction $40.00/Frontage Foot ■ Estimated Total Assessment for Typical City Lot (66' width) o Partial Street Reconstruction = $3,861.00 ■ NOTES: 1. Methods and amounts of estimated assessments are subject to change. 2. Assessments allocated to properties over a 10-year term (interest rate estimated to be 4 to 6%). HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Public Hearing for Technology Dr. & West Highland Park Dr. (1-5/P19-06) Department: PW/Eng LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Public Hearing Time Requested (Minutes): 10 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff has been working closely with TDK and Uponor to develop a public roadway to access their properties from State Trunk Highway 7/22. At this point, City staff is working through the right-of-way dedication approvals and Minnesota DEED grant application process relative to the delivery of this project. Following a brief project overview by City staff and potential public comments, staff will request that the City Council move forward with the final preparation of project plans/specifications and future advertisement for bids. The anticipated bid opening date is Wednesday, April 3rd (11:30 AM). BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 1,015,900.00 Total City Cost: $ 515,900.00 Funding Source: DEED Grant & Bonding (Engineering Fees) Remaining Cost: $ 500,000.00 Funding Source: Improvement Special Assessments RESOLUTION NO. 15015 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 5/PROJECT NO. 19-06 WHEREAS, a resolution of the City Council adopted the 22nd day of January 2019, fixed a date for a Council Hearing on the following improvements: Technology Drive & West Highland Park Drive: Trunk Highway 7/22 to TDK/UponorAccess Points; public roadway implementation by construction of grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, street lighting, landscaping, striping, signage, restoration and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the resolution adopted the 22nd day of January 2019. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Kent Exner is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 5. The City Council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of tax exempt bonds. Adopted by the Council this 12th day of February 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15016 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 5/PROJECT NO. 19-06 WHEREAS, the Director of Engineering/Public Works has prepared plans and specifications forthe following described improvement: Technology Drive & West Highland Park Drive: Trunk Highway 7/22 to TDK/UponorAccess Points; public roadway implementation by construction of grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, street lighting, landscaping, striping, signage, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering/Public Works shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the Director of Engineering/Public Works until 11:30 am on Wednesday, April 3rd, 2019, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Director of Engineering/Public Works, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 6:00 pm on Tuesday, April 23rd, 2019 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering/Public Works and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 12th day of February 2019. Mayor: Gary Forcier City Administrator: Matt Jaunich HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny First Reading of Ordinance 19-793, set Second Reading Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Unfinished Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Attached is a copy of the ordinance that would amend and replace Chapter 95 of our City Code dealing with our park system. The proposed ordinance has been reviewed by the Park & Rec Board and they are recommending approval. Based off of our discussion at the last meeting, we still have one section that we need to have clarification on from the Council which has been noted in red. That is section 95.08 dealing with Tobacco -Free Parks. I have included three options for the Council to consider. The first option is an all-out ban which is recommended by the Park and Rec Board. The second paragraph includes some exceptions for Native American ceremonies, the McLeod County Veterans Memorial Park, and the Luce Line State Trail (Please note that we do not have jurisdiction over the Luce Line State Trail). This was the language that was suggested to be added at our last meeting. The third paragraph is how it is currently written in Chapter 95. Obviously additional options could be considered by the Council as well. If you are comfortable, and after approving whatever wording you would like to see included for section 95.08, 1 would ask the Council to consider an official first reading of the ordinance on Tuesday. The plan is to have the second reading and potential approval at the second meeting in February. BOARD ACTION REQUESTED: Approve/Deny First Reading of Ordinance 19-793, an Ordinance Amending and Replacing Chapter 95 of the Hutchinson City Code. Set second reading and potential adoption for February 26. 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 19-793 AN ORDINANCE AMENDING AND REPLACING CHAPTER 95 — PUBLIC PARKS, OF THE HUTCHINSON CITY CODE The City Council hereby ordains: WHEREAS, as the Hutchinson Parks and Recreation system has expanded over the years; there is a need to update rules and regulations within the park and recreation system as growth and use within the system presents itself, and WHEREAS, Hutchinson City Code, Chapter 95, was last updated in whole in 2004 with revisions in 2012 and 2017, and WHEREAS, Minnesota State Statue 412.491 and 429.021, Subd. 1, give cities the authority to establish, improve, maintain, etc. parks, parkways, and recreational facilities and to protect and regulate their use, and Minnesota State Statue 471.15 gives authority to a city to operate a program of public recreation and playgrounds; and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Hutchinson, that Chapter 95 of the City Code is hereby amended and replaced to read as follows: . �ees�rrs. re��e�seer:re�.:zs�s.+rt��ers ��iT.S�P�I�TIit�Ell��S'1'!.111:FlF.PlRZ7:�:Kt�:l�E� STS�TTT.S�JT'!S'�i�J. I• I• ON 11111m, i=NO § 95.01 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. DIRECTOR. Shall mean and refer to the authorized and acting director of the Hutchinson Parks, Recreation, and Community Education (PRCE) Department. OFF LEASH DOG PARK. A public, city -designated area where a dog owner is permitted to allow a dog or dogs to socialize and exercise off leash, subject to the rules and regulations for such an area. PARK or PARKS. A park, parkway, greenway, playground, open area, athletic field, outdoor ice skating rink, dog park, skateboarding park, and the materials and equipment therein owned, leased or in use by the City of Hutchinson for recreational purposes and for such uses that are normally associated with parks. SHELTERS. Open or enclosed structures located within city parks, including bandstands, the Depot, the Historical Church, and music stages. RECREATIONAL FACILITIES. This includes the Aquatic Center, Recreation Center, Event Center, and Civic Arena. § 95.02 PARK HOURS AND ACCESS. (A) The recreational and educational opportunities of the parks and recreation facilities shall be available to all members of the public regardless, of race, sex, age, creed, national origin or place of residence; however, residency requirements and certain other regulations may be placed upon the participation in various league activities and preferences may be granted to residents of the City of Hutchinson over non-residents under certain circumstances. (B) Public parks of the City will close at 10:00 p.m. each day and shall remain closed to the public until 5:00 a.m. on the next day, unless otherwise posted, except that the following parks will remain open until 11:00 p.m.: Roberts Park Tartan ParkNeterans Memorial Field Library Square 2 (C) City park shelters shall be open and available to the public for rent from 9:00 a.m. to 9:00 p.m. Shelters are open May 1 through Labor Day. After Labor Day and until the third Sunday in October, shelters may be rented by reservation only. City Recreational facilities will be opened and available at a time determined by the Director or their designee. (D) Except as provided in section 95.03, no person may be in, remain in or enter any public park between the park's closing time and 5:00 a.m., unless otherwise posted, and no person may drive into or remain in a public parking area within or immediately adjacent to a public park during the hours when the park is closed. § 95.03 ACTIVITES PERMITTED AFTER PARK CLOSING. The following activities may continue in the public parks after the parks have closed: (A) Camping at Masonic West River Park/Campground in designated camping sites. "Quiet Time" is from 10:00 p.m. to 6:00 a.m. (B) City sponsored and supervised activities, which because of the nature of the activity, cannot be held during the time when the parks open. (C) Activities sponsored by any other group, association or organization which has applied for and received a permit for such activity pursuant to section 95.04. (D) City custodial or maintenance authorized personnel who must perform their services during the times when the parks are closed. (E) Use of the Luce Line State Trail and the sidewalk within Library Square for traversing purposes. (F) City designated sidewalks and public trails not located within a park are open for public use 24 hours a day unless posted. § 95.04 PUBLIC GATHERING PERMITS. (A) A permit shall be obtained from the City Council before participating in any of the following activities or special events in a city park. The fee for the permit shall be set annually in the City's Fee Schedule: (1) Carnivals; (2) Community celebrations; (3) Musical Concerts; (4) Use of amplified instruments, music, communication systems or the like that would exceed the requirements of Section 92.018 of the Hutchinson city code (5) Gatherings of 75 or more persons, including picnics, graduations, weddings and political gatherings; and 3 (6) Contests and exhibitions, including among other things, those that require exclusive use or charging admission; and (7) To sell or offer for sale any goods or services (B) Permits shall not be required for those events and activities sponsored by the City or the Parks, Recreation, and Community Education (PRCE) Department, and those sporting events sanctioned by an official league (baseball, softball, etc.), whether admission is charged or not, which is authorized to use a city park by the Director or their designee. (C) A person seeking a permit pursuant to this section shall file a written application on a form supplied by the Director or their designee. The application will state the following information: (1) Name and address of applicant (2) Name and address of the person(s), corporation or association sponsoring the activity or special event (3) Day(s), hour and year for which the permit is desired (4) Park or portion of the park for which the permit is desired (5) Estimate of anticipated attendance (6) Detailed description of the proposed activity (7) Variances required from city and park rules and regulations (8) Other information requested by the Director that is reasonably necessary to determine whether or not a permit will be issued (D) For gatherings of more than two hundred fifty (250) persons or for any activities or events where a fee or donation is being requested, except for those exempt under section 95.04(B), the applicant for a permit under this section shall be required to carry and maintain public liability insurance, with the city as a named insured, providing insurance coverage for bodily injury, death and property damage occurring in connection with applicant's use of the park. Such insurance shall provide coverage in amounts at least equal to the city's maximum liability limits as provided by state law. (E) The applicant for a permit under this article shall indemnify and save harmless the city from all loss, cost and expense arising out of any liability or claims of liability for injury or damages to persons or property sustained or claimed to have been sustained by anyone whoever by reason of the use of occupation of the parks described in this section, whether such use is authorized or not, or by any act or omission of the applicant or any of its officers, agents, employees, players or guests. The applicant shall pay for any and all damage to property of city or loss or theft of such property done or caused by such persons. (F) No permit or preliminarily approved permit application may be transferred, and the permit holder will be bound by all park rules and regulations and applicable ordinances. (G) The Director or their designee is authorized to revoke a permit immediately upon finding of a violation of any park rule, ordinance or conditions of a permit. § 95.05 RENTAL OF MUSIC STAGE AT MASONIC WEST RIVER PARK 4 Exclusive rental of the music stage at Masonic West River Park/Campground past the hours permitted in section 95.02 will be allowed on the condition that the renter applies for a permit under Section 95.04, and that the renter purchases all of the tent and electrical only campground sites. § 95.06 TRAFFIC AND PARKING. It is unlawful for any motorized vehicle or equipment to be parked or operated in any city park or recreational area other than on established roadways and designated parking areas. This section shall not be construed to prohibit the use or parking of a recreational vehicle in designated camping areas in West River Park for a period not in excess of two weeks. This section shall not apply to law enforcement and construction or maintenance equipment operated by, or under a contract with, the city and within the scope of such operation or contract § 95.07 OPEN BURNING RESTRICTED. No person shall start or maintain an open fire in a park, except in an area specifically designated for such use. Cooking Fires made by picnic parties in the park are acceptable, but only in freestanding gas or charcoal barbecue grills. It is also unlawful to leave an area designated for an open fire or a freestanding grill before the fire is completely extinguished. § 95.08 TOBACCO -FREE PARKS. It is unlawful for any person to smoke or use tobacco products or electronic cigarettes on or within the confines of any city park, shelter or recreational facilities. Or It is unlawful for any person to smoke or use tobacco products or electronic cigarettes on or within the confines of any city park, shelter or recreational facilities. It is not a violation of this policy to use tobacco in or on recreational areas as part of a Native American spiritual or cultural ceremony. Approval from city administration must be requested and received prior to the ceremony. The McLeod County Veterans Memorial Park and the Luce Line State Trail is exempt from the requirements of this section of the ordinance. Or It is unlawful for any person to smoke or use tobacco products within the confines of Tartan Park, which includes the terrain park, skate park and north ball field. This area does not include Veterans Memorial Field and the parking lot adjacent to VMF Park to the west. § 95.09 DOGS AND ANIMALS IN PARKS. All dogs and other domestic animals must be leashed in public parks, except for a designated off -leash dog park. An animal owner or person having custody or control of an animal shall immediately clean up and sanitarily dispose of any feces of the animal. § 95.10 SELLING FOOD, PRODUCTS OR SERVICES AND ADVERTISING PROHIBITED. 5 No person may sell or offer for sale any product, food or service, or advertise in any public park without the prior written approval of the City. § 95.11 DAMAGING VEGETATION IN PARKS. No person may damage or disturb any flower bed, planting area, or ornamental landscaped area within a park, open space or recreational facility. No person may cut, trim or remove any wild flower, tree, shrub, plant, branch or portion thereof, or any soil or other material from a park, open space or recreational facility with the exception of authorized City officials. § 95.12 DESTRUCTION OF PARK PROPERTY No person shall tamper with, climb on, hinder or deface, destroy, disturb, damage or remove any part of any building, structure, sign, light pole, drinking fountain, ornamental fountain, hydrant, table, grill, equipment (other than play equipment specifically designed for climbing, sliding, swinging, etc.), statues, public art or other property within public parks. § 95.13 ADDITIONAL RULES AND REGULATIONS. The Director, or their designee, may establish reasonable rules and regulations for the use of parks and recreation facilities and shelters, and for obtaining permits. Such rules and regulations will be based on a due regard for the purpose for which the facility is established, the safety of those using the facility, the need for supervisory personnel and the maximum number of persons who can safely use the facilities at one time. Park and recreational facilities and shelters may be used by members of the general public for recreational, athletic, and social purposes consistent with the nature of the facility and the safety of the public and property, subject to permit requirements. Specific rules and regulations for the use of park and recreation facilities and shelters established by the Director or their designee should be posted where they apply, and it is unlawful for any person to violate the same when so posted. FURTHERMORE BE IT ORDAINED that the effective date of this Ordinance is , 2019. ADOPTED BY THE HUTCHINSON CITY COUNCIL THIS DAY OF 52019 Attest: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor 0 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny Entering Into a Facility Cooperative Agreement with Riversong Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: We have received a request from the Riversong Music Festival to enter into a Facility Cooperative Agreement for the stage at Masonic West River Park. The purpose of the agreement is to assist them in their efforts to obtain a grant from our regional arts council (SMAC) to assist in their efforts to make improvements at the State. The Riversong Music Festival Board of Directors has provided a letter that goes into a little more detail on their request. Staff has reviewed their request and are comfortable with it. BOARD ACTION REQUESTED: Approve/Deny Entering into a Facility Cooperative Agreement with Riversong Music Festival Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: February 5, 2019 To the Mayor and City Council members, The RiverSong Music Festival is submitting a Facilities and Equipment Grant on February 13, 2019. We are looking to make improvements at Masonic West River Park for the upcoming festival on July 12-13, 2109. We would like to have Quade Electric put in 2-50 amp service upgrades to the electrical board in the grassy area just south of the pavilion. In the past we have added to that board and put in an entirely new board on the stage. Also we are replacing our old wooden background with a breathable vinyl backdrop very similar to what is on the bandshell in Library Square. We have secured bids for the project including one from the company that made the one in Library Square, as it has held up very well since it was installed. The backdrop will be approximately 35' wide and 20' high. It will require some permanent attachments (bolts and hooks) to the RiverSong stage uprights in order to hang it each year. We will put it up for the festival and afterwards store it at the HCA until the next year. While RiverSong will be paying for the entire project, our regional arts council, SMAC, requires a Facility Cooperative Agreement when the project involves property not owned by the applicant. We are only asking the Council to sign off on our project. For Un-Owned Facility W the facility is not owned by the applicant, upload a signed Facility Cooperative Agreement between the applicant and the facility owner that outlines how the arts organization will be assured access to the equipment." Respectfully, The RiverSong Music Festival Board of Directors FACILITY COOPERATIVE AGREEMENT This Agreement between RiverSong Music Festival and the City of Hutchinson for annual use of the permanent stage in Masonic West River Park, Les Kouba Drive, Minnesota, is made this 1st day of February, 2019. En consideration of the mutual promises and covenants herein, RiverSong Music Festival and the City of Hutchinson agree as follows: 1. The City of Hutchinson shall provide use of the stage in West River Park, Hutchinson, Minnesota to the RiverSong Music Festival based on a reservation schedule maintained the Park and Recreation Department. 2. RiverSong will utilize the above premises for set up, tear down and performances during the festival, 3. It is understood, by this Agreement, that the City of Hutchinson will maintain key control of the stage. 4. It is understood, by this Agreement, that RiverSong owns or privately rents the staging equipment and lighting, 5. It is understood that RiverSong may make upgrades to the electrical panels as approved by the City of Hutchinson. 6. This agreement shall take effect July 10, 2019 and continue until July 15th, 2019. IN WITNESS THEREOF, the parties hereto have caused this Agreement to be signed on this I'day of February, 2019. City of Hutchinson By Mayor RiverSong Music Festival � r] By.t.- Board Member Attest By City Clerk 40ard Member HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Hutchinson Pillars Project Preliminary Approval & Allocation of Funding Department: City Council/PAC LICENSE SECTION Meeting Date: 2/12/2019 Application Complete N/A Contact: Steve Cook Agenda Item Type: Presenter: None Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As has been discussed with the City Council, the public arts commission is proposing to add four pillars at several Main St. intersections in downtown as part of the Main St. 2020 streetscaping plan. Each pillar would represent a community value: Service, Humanity, Sustainability and Education and use art to help describe the values and their connection to the community. Conservative estimated cost of the project is $75,000 and the suggested funding sources include up to $38,000 from the city (community improvement fund or other), $18,000 from existing public art funds and $19,000 in grants. The project has been reviewed by the Main St 2020 citizen's advisory board, MnDOT and at the city council's streetscaping workshop. In addition, a 30-day public comment period was provided for and generated largely positive responses. The PAC is at the point where they need the council's preliminary approval and commitment to allocate up to $38,000 to start soliciting grants and artists for the project. It should be noted that the council will have an opportunity to provide final approval in September after artists have been selected and the PAC finds out if they were successful in their grant request. Up until then any costs would be covered by PAC funds and hopefully a SMAC planning grant that the PAC (City) will apply for to help with the artist selection process. Actual city funds could be less depending on the bids received for the pillar construction and the art work. The PAC is also having discussions with the high school to see if students might be able to help with side panel art and metal work. That has the potential for providing additional cost savings. Finally, it should be noted that MnDOT still needs to give their final approval. However, as noted at the council workshop, they have been generally supportive of what is being planned. The Council would provide final project approval in September. BOARD ACTION REQUESTED: Consideration of Giving Preliminary Approval to proceed and commit up to $38,000 of city funds to the project. Fiscal Impact: $ 38,000.00 Funding Source: Community Improvement Fund or Other FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 75,000.00 Total City Cost: $ 56,000.00 Funding Source: $18,000 from PAC; up to $38,000 Comm. Imp. Remaining Cost: $ 19,000.00 Funding Source: Grants HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Consideration of Applying for the Blandin Community Leadership Program Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In the past year or so, the City Council has asked staff to consider applying for the Blandin Community Leadership Program. The current application period is due March 1, 2019 to be considered for 2020 implementation. With the 2020 Main Street Project, this might be a good opportunity to pursue something like this. We would be looking to partner with the Chamber of Commerce on a project like this and I have already been in contact with Mary Hodson about it. I've included some additional information into the program and what the community can expect. If approved, the cost for this project would be budgeted for in the 2020 budget. BOARD ACTION REQUESTED: Approve/Deny Authorizing Staff to Apply for the Blandin Community Leadership Program Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Blandin Community Leadership Program "-lwma—_ In L., Blandin Foundation TM STRENGTHENING RURAL MINNESOTA L 11 Our Mission Our mission is to be a trusted partner and advocate to strengthen rural Minnesota communities, especially the Grand Rapids area. Our Vision Healthy, inclusive rural communities. Blandin Foundation TM STRENGTHENING RURAL MINNESOTA Blandin Community Leadership Program (BCLP) Rural communities thrive when leaders take on the responsibility for the health of their community's future. BCLP helps emerging and established leaders understand more deeply the dynamics of their communities, the skills of working together effectively, and the critical role shared leadership plays in building a healthy community. All BCLP participants share one thing in common: a commitment to their community and a willingness to be involved in shaping its future. BCLP trains community leaders to be more effective at framing community issues, building and sustaining social capital and mobilizing for community action. Making a Difference Since its inception in 1985, BCLP has served over 7000 leaders from more than 600 rural Minnesota communities. Across the state, these alumni continue to champion projects that build inclusive communities, create economic development opportunities, and deal creatively with health, housing, and education issues, among others. The BCLP Approach Community leadership is different from organizational leadership. It is more complex, requiring different skill sets. Within this context of leadership, how things get done in community is as important as what gets done. Energy builds as people see new possibilities in themselves, in one another and in their community. BCLP is centered on three core competencies: • Framing: The creation of shared meaning about issues affecting community health that influences action choices. • Building social capital: A network of relationships for getting things done for a healthy community. • Mobilizing: Engaging enough people, resources, and power to get the job done. Being and working in a retreat environment fosters healthy relationships among participants that enable them to go back to their community and work together more effectively. The action -oriented curriculum covers a full range of topics, including: • Interpersonal communication • Conflict management • Community power analysis • Community mobilization • Building social capital across personality differences • Working effectively in small groups "There is a certain point in the week when participants begin to say, I see things differently. I see possibility in new ways. I see possibility." -Victor Klimoski, BCLP Trainer 2 Eight Days of Training Residential Retreat - Five Days The retreat is held at Sugar Lake Lodge south of Grand Rapids, Minnesota. The retreat is not a workshop or seminar. It is a "break in the action", a time to step back and look forward, to learn, reflect, and talk candidly in a comfortable, confidential environment about what is happening, or not happening, in community life. At the start of the retreat, participants are asked challenging questions like these to help them set personal leadership goals and frame community issues in subsequent sessions: • What difference do I want to make in my community? • What am I willing to do to make that difference? Workshops - Three, One -Day Sessions All the workshops will be held near the cohort's community and give participants an opportunity to reconnect with the entire group, review the curriculum from the retreat and further their learning on how to be an effective community leader. Each workshop will focus on specific areas of leadership: • Workshop I: Participants reflect on their leadership plan from retreat and gain a better understanding of the potential impact difference has on themselves and others. In addition, participants learn and practice various tools and skills for working across differences. • Workshop II: The cohort identifies changes coming to the community and learns critical thinking skills around change to help them navigate what is to come. Participants will also continue to deepen social capital within the cohort. • Workshop III: Participants learn how to apply a model of evaluation to their leadership projects and how to cultivate resilience as a community leader. The session closes with a graduation ceremony to which local alumni are invited. Participants are expected to attend the retreat and all workshops. 3 Who Should Participate The program is designed for emerging and established community leaders who want to be more effective at developing and sustaining the health of their communities. Other characteristics include: • Actively involved in community life • Credible and open-minded • Open to risk -taking • Passionate about their community's future • Willing to work collaboratively to promote healthy community Anyone that is engaged in the chosen community can apply for BCLP. A recruitment process is used to ensure each community reaches all dimensions of the community. Our nine common dimensions include: • Life -Long Learning • Inclusion • Recreational & Artistic Opportunities • Environmental Stewardship • Infrastructure & Services • Safety & Security • Community Leadership • Economic Opportunity • Spirituality & Wellness The selected 24-person cohort will represent a cross-section of the community in terms of age (must be at least 21 years of age), gender identity, ethnicity, occupation and involvement. What Does It Cost The cost to participants is their time away from work and family as well as any travel expenses. The Blandin Foundation uses $4,000 to cover the entire cost of each participant's tuition, food, and lodging for the five-day residential retreat training program and the three follow-up workshops located in your local community area. Once selected, Rural Leadership Access Funds can be applied for through the Grand Rapids Area Community Foundation to help provide some support that will enable you to attend the program. 51 "Leadership - you but you can't do have to do it yourself, it alone." For More Information Becky Adams, Recruitment Manager Blandin Leadership Programs 218-327-8736 (direct line) 877-882-2257 (toll free) recruitment@blandinfoundation.org Blandin Foundation Leadership Programs does not and shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations. These activities include, but are not limited to, selection of volunteers including program participants and vendors, and provision of services. We are committed to providing an inclusive and welcoming environment for all members of our staff, participants, volunteers, independent contractors, and vendors. 5 Blandin Foundation - STRENGTHENING RURAL MIN N ESOTA Blandin Community Leadership Program Application for Community Participation Overview of Application and Process This application offers your community an opportunity to communicate interest and key information to the Blandin Foundation. It allows the Foundation an insight into the initial thinking, interest, commitment, and perspective of your community as it relates to the Blandin Community Leadership Program (BCLP). The Foundation selects up to ten communities per year to participate in BCLP. The communities selected will enter into a partnership with the Foundation that provides an opportunity for ongoing community leadership training. The community application must be completed by a group of community leaders engaged in community work. The group must contain four or more individuals who represent a diverse group of community networks. Application Questions Please provide a narrative response to the following questions (not to exceed 2 pages). 1. Why is this a good time for your community to participate in BCLP? 2. What are 2 or 3 current issues facing your community and how do you see BCLP training affecting these issues? 100 N Pokegama Avenue, Grand Rapids, MN 55744 USA 1 218-326-0523 1 877-882-2257 1 www.blandinfoundation_org Blandin Foundation - STRENGTHENING RURAL MIN N ESOTA Required Application Information Applications should contain the following: • A cover letter stating the community interested, a list of community members who have met and completed the application and how each community member is engaged in your community. • Narrative responses to the application questions (not exceeding two pages). Recruitment Once the Foundation has received your application for review, we will contact you within 5 business days to discuss next steps. Once selected, BCLP staff will help you and your community with recruitment efforts (town meetings, media, mailings, radio announcements, etc.). It Is important for you to be thinking about the interest and support within your community. The most successful recruitment efforts truly happen through community networking. It is extremely important that a community cohort represent diverse sectors of the community. -his blend of participants gives the community a new opportunity for innovation and creating new networks in an effort to develop a healthy community. BC LP seeks emerging and established community leaders who are or want to be: • Actively involved in community life • Credible and open-minded • open to risk -taking • Passionate about their community's future • Willing to work collaboratively to promote healthy community Program Logistics • There will be a five-day retreat at Sugar Lake Lodge south of Grand Rapids, Minnesota. • There will be three follow-up workshops located close to your community. • The training dates will be in either the fall retreat season (September through November) or the winter retreat season (January through May). The community is notified of the dates once a community has been selected. • Up to ten communities will be selected in a calendar year. • Each community will be represented by a team of 24 community members. • Participants' hotel lodging and food costs will be covered by the Blandin Foundation. • Participants are expected to attend all sessions. • Questions about the program or application process can be directed to: Becky Adams (877) 882-2257 or rmadamsftlandinfoundation.oro Applications should be submitted by letter or e-mail to: Becky Adams Blandin Foundation, Leadership Recruitment Manager 100 North Fokegama Avenue Grand Rapids, Minnesota 55744 (218)327-8736 — direct rmadams@blandinfoundation. ora 100 N Pokegama Avenue, Grand Rapids, MN 55744 USA 1 218-326-0523 1 877-882-2257 1 www.blandinfoundation_org HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Calling a Special Workshop Meeting - Review of Parks Master Plan Department: Administration LICENSE SECTION Meeting Date: 2/12/2019 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 1 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: We are just over halfway through the Master Park Plan process. Following the Community Open House that took place on January 31, the consultant and planning group would like to give an update of the plan and process to the City Council. We are asking you to call a workshop meeting notice for 4 p.m. on February 26. BOARD ACTION REQUESTED: Approval of calling a special workshop meeting for 4:00 p.m. on February 26 Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Library Board Meeting Minutes Monday, Nov. 26, 2018 @ 4:30 p.m. Present: Steve Bailey, Mary Christensen, Gerry Grinde, Jack Sandberg, Carolyn Ulrich, Julie Lofdahl, Katy Hiltner, Ex- Officio Excused: Kristine Leuze Review and approve minutes from the Oct. 22, 2018 meeting. Motion to approve by Jack, seconded by Carolyn, minutes APPROVED. Old Business: Program Reports: • Candace Simar Author Event - Candace gave a writing workshop at New Discoveries Montessori Academy for 57 students during the day and spoke to 24 children and adults at the library in the evening. It was a nice presentation. Legacy funds paid for the speaker. • Legacy Program "Meet Laura Ingalls Wilder" - 60 people attended the Winsted afternoon program at St. Mary's Care Center. The evening program at the library in Hutchinson had 57 people attend. It was an excellent program. She kept in character the whole time. It felt like stepping back in time. Melanie Stringer had spoken at 38 libraries since September. New Business: 1. Wellness Fair @ Hutchinson Technology, Inc. —Tuesday, Oct. 30th Katy and Sherry had books on display. They gave away tea bags and bookmarks. 200 people signed up for the raffle. There were lots of questions on different services at the library. Katy felt they hit a new audience. 2. Program Reminders: Author Program with Mary Krugerud Tuesday, Nov. 27t" at 10 a.m., Hutchinson Senior Center She will be talking about her book The Girl in Building C: The True Story of a Teenage Tuberculosis Patient Celebration of Writing — wrap up for NalloWriMo Wednesday, Dec. 5t" at 6:30 p.m. Writers will come to read part of what they have written during the month of November. 3. Author Program— Brian DeVore "Wildly Successful Farming" Thursday, Nov. 29t" at 6:30 p.m. — Hutchinson Public Library Brian will be talking about his book on organic farming. 4. Friends of Library Projects a. Project Bookshelf Nov. 12t"-Dec. 8t" - boxes are out to collect new books for McLeod County Social Services b. Friends Holiday Decorating - decorated this morning. Katy really appreciates their help! c. Holiday Fundraiser— public can purchase origami ornaments for $7; these ornaments were created and donated by Bonnie Martinez of Hutchinson. 5. One Book, One Community Book Announcement The book is The Life We Bury by Allen Eskens. There will be two programs for this book. The first program on Sunday, February 24, 2019 will be a book discussion at the Hutchinson Center for the Arts. The second program on Sunday, April 14, 2019 will be when the author will speak at the Event Center. 6. Adult Winter Reading Program The program will start on January 7, 2019. The mugs and bags have been ordered. Katy will have the book challenge again as many enjoyed it last year. 7. Library Buzz — What Have You Been Reading/Watching? Gerry - The Rise of Andrew Jackson by David Stephen Heidler Julie - PBS shows and read Chamomile Mourning by Laura Childs Katy - Mysteries and fluffy books; YA book - The Hate You Give by Angie Thomas Carolyn - The Teoberry Strangler by Laura Childs; finished the rest of Christopher Valen's books; The Bookshop of Yesterdays by Amy Meyerson; Desolation Mountain by William Kent Krueger; The Devil's Bed by William Kent Krueger; and Holy Ghost by John Sandford Jack - The Rise of AndrewJockson by David Stephen Heidler; Jack also talked about an online book club he had been in Mary - PBS shows and read The Woman in Cabin 10 by Ruth Ware Steve - Desolation Mountain by William Kent Krueger; The Quickie by James Patterson; just started reading a book about the life of Mikhail Gorbachev. 8. December Library Board meeting - decided not to have a meeting in December 9. Other: Finally hired a librarian for the Willmar library. He is from Colorado Next meeting: January 28, 2019 4:30 pm Motion to adjourn by Jack, seconded by Carolyn, meeting adjourned at 5:00 pm October 2018 Donations $20.00 from Naomi Barkeim for the Children's Department MINUTES Special Meeting — Hutchinson Utilities Commission Wednesday, December 12, 2018 Cali to order — 7:30 a.m. President Morrow called the meeting to order. Members present: President Monty Morrow; Vice President Anthony Hanson; Secretary Robert Wendorff; Commissioner Don Martinez; General Manger Jeremy Carter; Attorney Marc Sebora Absent: Commissioner Matt Cheney Others present: Dan Lang, Dave Hunstad, John Webster, Angie Radke. The purpose of the special meeting is to have a 2019 Budget Workshop. GM Carter reviewed the documents that were emailed to the Commissioners last week. GM Carter started the meeting with the Fleet Management program. GM Carter had asked Staff to review all the equipment/fleet and create a complete inventory list and prioritize the equipment/fleet. Points of consideration were the type of equipment, future replacement value, estimated useful life and estimated replacement year. Discussions amongst Staff were the prioritizing of Equipment to Critical, Very Important, Important and Future Consideration; along with buying, leasing or reallocating equipment to other areas. President Morrow inquired of Dave Hunstad, Electric Transmission/Distribution Manager, how consolidating of equipment has gone in the past. Mr. Hunstad noted that it has worked out. GM Carter reviewed the breakout of HUC's total equipment between Light and Heavy equipment. Majority of the value is in the Heavy Equipment at $1.8M, where Light Equipment is $635K. Staff prioritized HUC's vehicles to HUC's Operations. HUC's annual funding requirements are also considered. HUC also has to value time; there are only certain months of the year to try and complete jobs. Vehicles that provide operational efficiency along with needed equipment to complete job tasks efficiently are also considered as part of the long-range fleet/equipment program. GM Carter spoke of the pictorial graphs, which is a 10-year snap shot. In the past, equipment annual funding was $150K-$175K to maintain a consistent funding level. However now it is looking to be $175-$200K a year. As technology changes, so will some of HUC's vehicles. Management wants to make sure the Commissioners are comfortable with that amount of funding on a yearly basis. HUC needs to look into the future to see if electric vehicles or other options should be considered. Last piece of the Fleet Management Program for the Commission to consider is HUC has not designated a reserve of cash for the Fleet program. Does the Commission want to see specific cash designation for Fleet? If so, a line would show on the designation report as Fleet Program. Something for the board to consider. GM Carter noted this leads the Special Meeting to the Financial Reserve Policy. The Financial Reserve policy is on the Commission Agenda for next week; however, a more in depth look is important. GM Carter asked if the Commissioners are comfortable with the amounts of current designations. Commissioner Hanson inquired of the 60 to 90 days operating cash and excess cash being applied to capital reserves. GM Carter stated the Capital Reserve is far 5 years of normal infrastructure maintenance and upkeep at $3.45M; however, the Reserve does not cover new acquisitions or major capital expenditures. GM Carter probed the Commissioners to the comfort level of how much cash balance is desired in Operating Reserve, Should Reserves be more towards 60 day than 90 day? HUC's policy reflects Restricted Reserves, Capital Reserve, and Operating Reserves (which includes the PILOT Reserve). After discussion, GM Carter added if there is a consensus with a change in the Financial Reserve, it could be discussed next week at the Commission meeting. Commissioner Martinez stated that right now it appears 70 percent of dollars are fixed and 30 percent is not reserved or is earmarked as a placeholder for unforeseen things. From a management standpoint, this makes sense. GM Carter added there could still be things that might surface so Staff tries to reserve money for those circumstances. Commissioner Hanson inquired when the right time to implement would be; is it at end of year or during strategic planning. After more discussion, GM Carter informed the Commissioners to ask any other questions before next Wednesday. GM Carter reviewed the 2019 budget. Overall, a $60K change was made since the preliminary budget meeting, this effected three areas. Operating dollars were increased to update HUC's security system, increase insurance coverage on the NG transmission line and a slight increase in the budget for Health Insurance premiums. HUC is running a high-pressure transmission line, if repairs are needed the costs incurred could be upwards of $1 M. These costs would be for repair; which could take weeks, additional transportation costs from another party and 1 or gas revenue loss. Additional insurance for the Electric Division Transmission lines was not increased. Costs for additional electrical transmission insurance was nearly double the amount of NG Transmission insurance and Staff felt that there are redundancies and less risk exposure. Therefore, transmission infrastructure is better to self -insure. HUC can also self -generate so the risk of everything going out is unlikely and unlikely for long periods of time. The piece that made the Electric insurance higher was everything is above ground. The last increase is the adjustment in Health Insurance, Health insurance increased to 11.12 percent, which the budget showed 10 percent increase. GM Carter added that Workers Comp may go down but that final number will not be known until middle of January. GM Carter noted that Commissioner Hanson had inquired about Energy Consumption and if any class changes were more than 1 percent, Consumption is fairly flat; however, Small General has ticked up a little to 2.8%. Large General up to 1.45% with the addition of Uponor. There was a slight decrease on the industrial side estimated due to operations and energy efficiency. Commissioner Wendorff inquired if the Cost of Service Study that was done earlier impacted the budget. GM Carter stated yes and no. Revenue changed slightly between classes but the bottom line number had no impact, which was the goal. After additional discussion, GM Carter looked to the Commissioners for additional questions or comments. Commissioner Hanson inquired about what was contributing to the personnel costs. GM Carter stated that it is a combination of salary, benefits, Work Comp, Pension, FICA, etc. Many areas increase incrementally as wages increase. GM Carter also noted that every time salary and benefits increase so do the employer contributions to those various line items. On average, HUC should see a 4-5 percent increase every year if the current organizational structure stays in place for the foreseeable future, Commissioner Hanson inquired about the investment in Unit 8. Dan Lang, Engineering Services Manager, stated that with talking to Randy Blake, Production Manager, Unit 8 is still a good solid base unit with life in it. President Morrow inquired if there were additional questions or comments. President Morrow thanked GM Carter and Staff for all of the work that was done. There being no further business, a motion by Commissioner Martinez, second by Commissioner WendorFF to adjourn the meeting at 8:43 a.m, Motion was unanimously carried. Robert endorFf, S ry ATTEST: Monty Mor w, President EDA Board Meeting Main Conference Room — Enterprise Center 11:30 AM Wednesday, January 2nd, 2019 MEETING MINUTES Members present in bold. EDA Board Members Mike McGraw Jonny Block Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski Mary Christensen Staff Miles Seppelt, EDA Director Matt Jaunich, City Administrator Andy Reid, Finance Director Maddie Christie, EDA Program Manager I. Call to Order Meeting called to order at 11:34 AM. II. Approve Agenda - no action. III. Review Minutes Economic Development Authority Financial Summary as of November 2018 Operations Cash Available $77,690 Reserved $56,736 Unreserved $18,535 Economic Development Loan Fund Cash Available $105,180 Redline Systems Balance $9,590 Ashwill Industries Balance $10,079 Laser Dynamics Balance (forgivable) $23,000 Innovative Foam Balance (forgivable) $14,355 Downtown Revolving Loan Fund Cash Available $484,268 Loans Receivable $439,495 Capital Assets $201,329 Total Assets $1,125,092 MIF Loan Fund Cash Available $755 MOXY Loan Receivable $19,048 Enterprise Center Fund Cash Available $47,443 SHOPKO TIF District (TIF 4-5) Cash Available $38,293 Interfund Loans Receivable $455,492 MEDICAL CLINIC TIF District (TIF 4-16) Interfund Loan Payable $300,257 a. November 21 st Finance Team meeting: M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously. b. November 28t" EDA Board Meeting M/S/P: Block, Vanderheiden to approve the minutes as written. Passed unanimously. IV. Review of EDA Financial Statements Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table on the previous page) M/S/P: Vanderheiden, Czmowski to approve the financial report as presented. Passed unanimously. V. Director's Report A Marketing Plan Facebook updates = 7 Twitter activity = 7 Website updates = 0 Social media has 297 likes on Facebook and 83 followers on Twitter. B Business Recruitment / Expansions Staff updated the board on recent contacts and conversations. Firelake Manufacturing is moving to Hutchinson. C UPONOR street project Annexation complete. BDPI grant application is mostly written. D Farmer's Market Prospective Board members met last week to review by-laws. Next Board Meeting is January 3rd, will hopefully adopt by-laws and elect board. E Enterprise Center Still awaiting monument sign installation. Property taxes for 2019 will be $20,880. F Skilled workforce development plan Working to formalize Tiger Manufacturing, 2 classes proposed - roughly 60 kids hand-picked. Goes live on Sept. 3, 2019. G Industrial Park Rent Rent came in. H HUC Partnership HUC Board declined to partner with the Enterprise Center, they will not take on our utilities. Mid -America EDC Conference Provided useful information on how to connect with corporate site selectors. J City Council accepted EDA levy; TIF application fee adopted. VI. EDA Strategic Planning Discussion on formulating Mission, Vision & Values Statements for the EDA. Consensus reached on all three statements. VII. Grant & Loan Program Applications - NONE Vill. Other Business — None. IX. Set Next Meeting — 11:30 AM Wednesday, January 23, 2019 X. Adjourn Meeting adjourned at 12:22pm. M/S/P: Respectfully Submitted, Miles R. Seppelt EDA Director