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cp02-22-22HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, FEBRUARY 22, 2022 CITY CENTER — COUNCIL CHAMBERS ('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) INSTALLATION OF NEWLY ELECTED CITY COUNCIL MEMBER: ♦ COUNCIL MEMBER PAT MAY 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — CrossPoint 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 previous y 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. 15421 — Resolution Accepting $500.00 Donation from Crow River Sno Pros and $2000 Donation from Village Ranch for Fireman's Park Project (b) Resolution No. 15423 — Resolution Accepting $4016.32 Donation from Hutchinson Fire Relief Association for Hutchinson Fire Department Equipment 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 acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of February 8, 2022 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 (a) Consideration for Approval of Premises Permit Application for American Legion Post 96 to Conduct Gambling Operations at River House Kitchen + Drinks Located at 122 Main Street SW CITY COUNCIL AGENDA February 22, 2022 (b) Consideration for Approval of Premises Permit Application for American Legion Post 96 to Conduct Gambling Operations at Bobbing Bobber Brewery Located at 900 Hwy 15 South (c) Consideration for Approval of Resolution No. 15424 — Resolution Transferring Funds to the 2021 Construction Fund, General Fund and Capital Projects Fund (d) Consideration for Approval of Resolution No. 15425 — Resolution Transferring from Community Improvement Fund to Debt Service Funds (e) Consideration for Approval of Resolution No. 15426 — Resolution Closing the 2006 Debt Service Fund to the Community Improvement Fund (f) Consideration for Approval of Resolution No. 15427 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit to Establish a Use For a Business/Professional Office Space in a C-5 Zoning District Located at 96 4 h Avenue NW with Favorable Planning Commission Recommendation (g) Consideration for Approval of Resolution No. 15428 — Resolution Transferring Police Drug Forfeiture Fund Balance to the Capital Projects Fund (h) Consideration for Approval of Resolution No. 15429 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids — Letting No. 8, Project No. 22-08 (Wastewater Treatment Facility Oxidation Ditch Aeration Improvements) (i) Consideration for Approval of Resolution No. 15430 — A Resolution Supporting Housing and Local Decision -Making Authority (j) Consideration for Approval of Improvement Project Change Orders No. 1 and No. 2 — Letting No. 1, Project No. 22-01 (2022 Pavement Management Program) (k) Consideration for Approval to Purchase Technology and Equipment for a Covered Aerated Static Pile (CASP) Composting System (1) Claims, Appropriations and Contract Payments PUBLIC HEARINGS- NONE purpose o this portion o t e agenda is to provi e the ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 8. PLANNING/ZONING BUILDING DEPARTMENT YEAR END REPORT UNFINISHED BUSINESS 2 CITY COUNCIL AGENDA February 22, 2022 NEW BUSINESS 9. APPROVE/DENY PURCHASE AGREEMENTS �a) Purchase Agreement with Breanna Chapman for 205 Jefferson Street SE b) Purchase Agreement with Wildflower Properties LLC for 222 2nd Avenue SE (c) Purchase Agreement with Scott Rech for 145 2nd Avenue SE GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 10. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Arts Commission Minutes from January 12, 2022 b) Hutchinson Housing & Redevelopment Authority Board Minutes from January 18, 2022 �c) Planning Commission Minutes from January 18, 2022 d) City of Hutchinson Financial Report and Investment Report for January 2022 MISCELLANEOUS 11. STAFF UPDATES 12. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15421 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Crow River Sno Pro's $500.00 2/3/2022 Village Ranch $2,000.00 2/16/2022 WHEREAS, such donations have been contributed to the City of Hutchinson Fire Department towards the Firemans Park Project. WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donations described above are hereby accepted by the City of Hutchinson. Adopted by the City Council this 22nd day of February 2022. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor CITY OF HUTCHINSON RESOLUTION NO. 15423 RESOLUTION ACCEPTING A 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; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Hutchinson Fire Relief Assn $4,016.32 2/14/2022 WHEREAS, such donations have been contributed to the City of Hutchinson Fire Department towards new ballistic helmets and suspension harness systems. 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 22nd day of February 2022. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, FEBRUARY 8, 2022 CITY CENTER — COUNCIL CHAMBERS ('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 4:00 P.M. Mayor Gary Forcier called the meeting to order. Members present were Mary Christensen, Chad Czmowski, Dave Sebesta and Pat May. 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 — The River at MSP Church (The invocation is a voluntary expression of theprivate 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 previous y reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (T is is an opportunityor 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 acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of January 25, 2022 (b) Summary Review of City Administrator Performance Review of January 25, 2022 Motion by Czmowski, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedjor 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 (a) Consideration for Approval of Issuing Short -Term Gambling License to Upper Midwest A-C Club on July 22-24, 2022, at McLeod County Fairgrounds (b) Consideration for Approval of Issuing Short -Term Gambling License to Vineyard United Methodist CITY COUNCIL MINUTES — February 8, 2022 Church from March 20, 2022, to August 21, 2022 (c) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on March 12, 2022, at McLeod County Fairgrounds (d) Consideration for Approval of Resolution No. 15420 — Resolution Adopting the McLeod County All -Hazard Mitigation Plan (e) Consideration for Approval of Wastewater Lift Station Control Panels (f) Claims, Appropriations and Contract Payments Motion by May, second by Sebesta, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 5:00 P.M. MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE CREATION OF A TAX INCREMENT FINANCING PLAN FOR THE ESTABLISHMENT OF TIF DISTRICT NO. 4-22 (A REDEVELOPMENT DISTRICT) (a) Approve/Deny Resolution No. 15383 — Resolution Approving a Modification of the Development Program for Development District No. 4 and the Creation of a Tax Increment Financing Plan for the Establishment of TIF District No. 4-22 (A Redevelopment District) (b) Approve/Deny Resolution No. 15384 — Resolution Approving the Terms of a $30,000 Tax Increment Interfund Loan in Connection with TIF District No. 4-22 Miles Seppelt, EDA Executive Director, presented before the Council. Mr. Seppelt explained that a developer has expressed interest in redeveloping the Jorgensen Hotel located at 2 Main Street South. The Jorgensen Hotel was originally constructed in 1916 and the upper floors of the building have been vacant since the 1970s. Due to the very poor condition of the building and the extensive renovations needed, redevelopment is not financially feasible unless public assistance is provided. Proposed assistance would be a 25-year redevelopment TIF District which would capture a portion of the property taxes paid on the property to reimburse the developer for certain qualifying redevelopment costs. The City used this same tool for the State Theatre and Cornerstone Commons. The developer's plan is to redevelop the building as an upscale hotel with 20-24 rooms. Improvements to the building include the addition of an elevator, a new roof, new windows, exterior tuck -pointing and a complete rebuilding of the interior second and third floors. The City's financial consultant has reviewed the project and found that public assistance is justified and the proposed amount is appropriate. No public comments were received. Motion by Czmowski, second by May, to close the public hearing. Motion carried unanimously. Motion by Czmowski, second by Christensen, to approve Resolution Nos. 15383 and 15384. Motion carried unanimously. COMMUNICATIONS REQUESTS AND PETITIONS e purpose o this portion o 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. HUTCHINSON FIRE DEPARTMENT YEAR END REPORT 2 CITY COUNCIL MINUTES — February 8, 2022 Fire Chief Mike Schumann presented before the Council. Chief Schumann reviewed highlights of 2021 including special events, ceremonies, retirements, and accomplishments. Chief Schumann also provided information on operational data, public relations/fire safety education, inspections/permits, goals for 2022, primary services provided, vehicle maintenance data, and the department's major capital improvement schedule. UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY AMENDMENTS TO CITY OF HUTCHINSON COVID-19 PREPAREDNESS PLAN Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that in May 2020, the City implemented a COVID-19 Preparedness Plan to assist staff in providing a safe and healthy workplace for all employees, along with customers, clients, guest and visitors during the pandemic. Administration is proposing changes to the plan to incorporate updated recommendations regarding quarantine and return to work time frames for employees sick with or testing positive for COVID-19 and close contact situations. Motion by Czmowski, second by Christensen, to approve amendments to City's COVID-19 Preparedness Plan. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Library Board Minutes from November 22, 2021 �b) Economic Development Authority Board Minutes from January 5, 2022 c) City of Hutchinson Financial Report and Investment Report for December 2021 MISCELLANEOUS 12. STAFF UPDATES 13. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 5:20 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL c`=yaf Request for Board Action 7AZ Owl-7 Agenda Item: Gambling Premises Permit Applications - American Legion Post 96 Department: Administration LICENSE SECTION Meeting Date: 2/22/2022 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑✓ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: American Legion Post 96 has submitted applications to provide gambling devices at River House Kitchen + Drinks located at 122 Main Street South and at Bobbing Bobber Brewery located at 900 Hwy 15 South in Hutchinson, Minnesota. State law requires that cities grant approval of the premises permit applications. The applicant will then submit the final applications to the State Gambling Control Board for their authorization. BOARD ACTION REQUESTED: Approve premises permit application to American Legion Post 96 to operate gambling devices at 122 Main Street South and 900 Hwy 15 South. 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: To the City of Hutchinson: We would like to request a gambling license for the American Legion Post 96 for a new site. River House Kitchen + Drinks at 122 Main St S. Hutchinson. Gratefully yours, Tom Clabo Gambling Manager bir MINNESOTA LAWFUL GAMBLING LG214 Premises Permit Application 6/15 Page 1 of 2 Annual Fee. $150 (NON-REFUNDABLE) REQUIRED ATTACHMENTS T01 LG214. ', om "t 1. If the premises is leased, attach a copy of your lease. Use L621S I Mail the application and required attachments to: Lease for Lawful Gambling Activity. Minnesota Gambling Control Board 2. $150.annual premises permit fee, for each permit (non-refundable). 1711 West County Road B, Suite 300 South "State Roseville, MN 55113 Make check payable to of Minnesota." Questions? Call 651-539-1900 and ask for Licensing. INFORMATIONMWM ', �O�RGANIZATrI+DN �f` Organization Name: Rmmuw kENOW POST 96 License Number: ��- Tm 13URILEY Sao-a9&-99g1 Phone: Chief Executive Officer (CEO) Daytime Gambling Manager: _� �m ��Agd, Daytime Phone: Wig 3S3 10aa GAMBLING PREMISES INIF©RMATION '� Current name of site where gambling will be conducted: Roosit AlredENchi List any previous names for this location: .W-D+Cu ceP Street address where premises is located: I as �R ii�l �� S H SLeA1"0N (AN (Do not use a P.O. box number or mailing address.) City: OR Township: County: Zip Code: )44:! Me.LEOCZ� 55536,0 Does your organization own the building where the gambling will be conducted? N Yes No If no, attach LG215 Lease for Lawful Gambling Activity. A lease is not required if only a raffle will be conducted. -RT Is this Yes ® No Don't know any other organization conducting gambling at site? , NUTe14 iNoCRY ASSN (,t.F_GTPoMfC Cam+ ) . -- Note: Bar bingo can only be conducted at a site where another form of lawful gambling is being conducted by the applying organi- zation or another permitted organization. Electronic games can only be conducted at a site where paper pull -tabs are played. Has this site? Yes ENO; 0 Don't know your organization previously conducted gambling at NP GAMBLING BANK ACCOUNT INFORMAT� I0N; MUST BE IN MINNES4TA_ nk Name: SBMW& MUST 0-6. Bankm Account Nuber: BOx33Q lank Street Address: 102, MIX Si SW City: 9AMIALWJ I MN Zip Code: 55350 —State: ALL TEMPORARY AND PERMANENT OFF -SITE ST�,QRAGE _SP,�ACES: ra .. Address (Do not use a P.O. box number): City: State: Zip Code: 64a AOArns MN 55,950 v MN a MN LG214 Premises Permit Application 6/15 Page 2 of 2 AC- Ki NO�LED GMENT BY LC7►CAL UNIT OF GOVERNMENT: APPROVAL BY RESOL.UTiON CITY APPROVAL COUNTY APPROVAL for a gambling premises for a gambling premises located within city limits located in a township i City Name: County Name: Date Approved by City Council: Date Approved by County Board: Resolution Number: Resolution Number: (If none, attach meeting minutes.) (If none, attach meeting minutes.) Signature of City Personnel: Signature of County Personnel: Title: Date Signed: Title: Date Signed: TOWNSHIP NAME: Complete below only if required by the county. Local unit of government On behalf of the township, I acknowledge that the organization is must sigh. applying to conduct gambling activity within the township limits. (A township has no statutory authority to approve or deny an application, per Minnesota Statutes 349.213, Subd. 2.) Print Township Name: Signature of Township Officer: Title: Date Signed: ACKNOWLEDGMENT AND OATH 1. I hereby consent that local law enforcement officers, 6. I assume full responsibility for the fair and lawful operation of the Board or its agents, and the commissioners of all activities to be conducted. revenue or public safety and their agents may enter and inspect the premises. 7. I will familiarize myself with the laws of Minnesota governing lawful gambling and rules of the Board and agree, if licensed, 2. The Board and its agents, and the commissioners of to abide by those laws and rules, including amendments to revenue and public safety and their agents, are them. authorized to inspect the bank records of the gambling 8. Any changes in application information will be submitted to the account whenever necessary to fulfill requirements of Board no later than ten days after the change has taken current gambling rules and law, effect. 3. I have read this application and all information submitted to the Board is true, accurate, and complete. '9• I understand that failure to provide required information or providing false or misleading information may result in the 4. All required information has been fully disclosed. denial or revocation of the license. 5. I am the chief executive officer of the organization. 10. I understand the fee is non-refundable regardless of license approval/denial. f S'Z40_.t� a.14 /a& Signature of Chi Executive Officer (designee may not sign) Date Data privacy notice: The information requested on this information when received by the Board. Minnesota's Department of Public Safety, form (and any attachments) will be used by the All other information provided will be i Attorney General, Commissioners of Gambling Control Board (Board) to determine your private data about your organization until Administration, Minnesota Management & organization's qualifications to be involved in lawful the Board issues the permit. When the Budget, and Revenue; Legislative Auditor, gambling activities in Minnesota. Your organization has Board issues the permit, all information national and international gambling the right to refuse to supply the information; however, provided will become public. If the Board regulatory agencies; anyone pursuant to if your organization refuses to supply this information, does not issue a permit, all Information court order; other individuals and agencies the Board may not be able to determine your provided remains private, with the specifically authorized by state or federal law organization's qualifications and, as a consequence, exception of your organization's name and to have access to the information; individuals may refuse to issue a permit. If your organization address which will remain public. Private and agencies for which law or legal order supplies the information requested, the Board will be data about your organization are available authorizes a new use or sharing of able to process your organization's application. Your to: Board members, Board staff whose information after this notice was given; and organization's name and address will be public work requires access to the information; i anyone with your written consent. This form will be made available In alternative format, i.e. large print, braille, upon request. An equal opportunity employer MINNESOTA LAWFUL GAMBLING LG215 Lease for Lawful Gambling Activity 6/1S Pagel of 2 LEASE INFORMATION" . Organization: License/Site Number: AmF-P,im�w kemotq fibs-) gi. 000 o Daytime Phone: 3V.0-,5S7-a&(6! Address: City: State: Zip: Pb BD ' S oR I, ga AARrns S T SW 1-/07-CY NSON Iglu JZ,3.50 Name of Leased Premises: Street Address: vER, V- ITC . EN + M Nk-5 I ok& VINN �5 i $W City: Stat+f uic, r MNe.6.5 6� DaytimePhone: a916 8507 Name of Legal Owner: Business/Street Address: - -15R. C R i AJAR11110W z L Z0`65)3) /aa.MiNt SW city: 'State: Zip: Daytime Phone: /t'1N3�o Sao aqb $507 Name of Lessor (if same as legal owner, write "SAME'): Address: City: State: Zip: Daytime Phone: Check applicable item: . 0 New or amended lease. Effective date: a Submit changes at least ten days before the effective date of the change. 'y New Effective date: (ease ten days lessor owner. a .Submit new within after new assumes ownership. CHECK ALL ACTIVITY THATW%LLBE CQNDUCTED (no>leaserequ�redforraffi es} Pull -Tabs (paper) ❑ Electronic Pull -Tabs Pull -Tabs (paper) with dispensing device 0 Electronic Linked Bingo ® Bar Bingo Bingo Electronic games may only be conducted: 1. at a premises licensed for the on -sale of intoxicating liquor ® Tipboards or the on -sale of 3.2% malt beverages; or Paddlewheel 2• at a premises where bingo is conducted as the primary 0Paddlewheel with table business and has a seating capacity of at least 100. ,PUCE. -TAB;+ 1 GARQUN0 '0 IEW" " RE TV(separate�rentkfor�boothPandMbar op_s):_ . . .._. _._ BOOTH OPERATION: Sortie -or al[ sales of gambling equipment are conducted by an employee/volunteer of a 'ficensed-,orga'nization. at the leased premises. ALL GAMES, including electronic games: Monthly rent to be paid: %, not to exceed 10% of gross profits for that month. . Total rent paid from all organizations for only booth operations at the leased premises may not exceed $1,750. • The rent cap does not Include BAR OPERATION rent for electronic games conducted by the lessor. BAR:OPERATION: All sales of"gambling equipment conducted by the lessor or lessor's'employee. ELECTRONIC GAMES: Monthly rent to be paid: %, not to exceed 15% of the gross profits for that month from electronic pull -tab games and electronic linked bingo games. ALL OTHER GAMES: Monthly rent to be paid: AQ_%, not to exceed 20% of gross profits from all other forms of lawful gambling. • If any booth sales conducted by a licensed organization at the premises, rent may not exceed 10% of gross profits for that month and Is subject to booth operation $1,7 SO cap. F BINGWRENT (for`leaBed pr m es rni[ieire bingo is tlEie pri nairjj business conducted; such ,as: hngo hall) Bingo rent is limited to one of the following: • Rent to be paid: 16 %, not to exceed 10% of the monthly gross profit from all lawful gambling activities held during bingo occasions, excluding bar bingo. r -OR- Rate to be foot, to 110% foot for leased • paid: $ per square not exceed of a comparable cost per square space, as approved by the director of the Gambling Control Board. The lessor must attach documentation, verified by the organization, to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor. Rent may not be paid for bar bingo. Bar bingo does not Include bingo games linked to other permitted premises. LEASE TERMINATxON Ct AUSE' (ffiust be eo)mpiete'd) The lease may be terminated by either party with a written 3 day notice. Other terms: LG215 Lease for Lawful Gambling Activity 6/15 Page 2 of 2 Lease Term: The term of this agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management: The owner of the premises or the lessor will not manage the conduct of lawful gambling at the premises. The organization may not conduct any activity on behalf of the lessor on the leased premises. Participation as Players Prohibited: The lessor will not par- ticipate directly or Indirectly as a player in any lawful gambling conducted on the premises. The lessor's immediate family and any agents or gambling employees of the lessor will not partici- pate as players in the conduct of lawful gambling on the premis- es, except as authorized by Minnesota Statutes, Section 349.181. Illegal Gambling: The lessor is aware of the prohibition against Illegal gambling in Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises or that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling, Continued tenancy of the organiza- tion is authorized without payment of rent during the time period determined by the Board for violations of this provision, as authorized by Minnesota Statutes, Section 349.18, Subd. 1(a). To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal'gambling in Minnesota Statutes, Section 609.7S. Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site, that is prohibited by Minnesota Rules 7861.0260, Subpart 1, item H, or Minnesota Statutes, Section 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. The lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or local law enforcement authority or to the Board, the conduct of illegal gambling activity at this site in which the organization did not participate. Other Prohibitions: The lessor will not impose restrictions on the organization with respect to providers (distributor or linked bingo game provider) of gambling -related equipment and ser- vices or in the use of net profits for lawful purposes. The lessor, the lessor's immediate family, any person residing in the same residence as the'lessor, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modify or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pend- ing a final determination by the Compliance Review Group (CRG) of the Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Access to Permitted Premises: Consent is given to the Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel to enter and inspect the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the premises during any time reasonable and when necessary for the conduct of lawful gambling. Lessor Records: The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3-1/2 years. Rent All -Inclusive: Amounts paid as rent by the organization to the lessor are all-inclusive. No other services or expenses provided or contracted by the lessor may be paid by the organi- zation, including but not limited to: - trash removal - electricity, heat - snow removal - storage - janitorial and cleaning services - other utilities or services - lawn services - security, security monitoring - cost of any communication network or service required to conduct electronic puli-tabs games or electronic bingo - in the case of bar operations, cash shortages. Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Board. Rent payments may not be made to an individual. I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board. Other terms of the lease: Signature of Lessor: Date: Signature of Organization Official (Lessee): Date: ri Name and Titl Lessor: Print Name and Title of Le R. `?►rbNn zE:tsu Quol Cho �eer►►a o� Questions? Contact the licensing Section, Gambling Control Board, at Mail or fax lease to: 651-539-1900. This publication will be made available in alternative format (i.e. ; Minnesota Gambling Control Board large print, braille) upon request. Data privacy notice: The Information requested 1711 W. County Road B, Suite 300 South on this form and any attachments will become public information when received by Roseville, MN 55113 the Board, and will be used to determine your compliance with Minnesota statutes Fax: 651-639-4032 and rules governing lawful gambling activities. To the City of Hutchinson: We would like to request a gambling license for the American Legion Post 96 for a new site. Bobbing Bobber Brewing Co. LLC, at 900 Hwy 15 So., Hutchinson. Gratefully yours, Tom Clabo Gambling Manager blr MINNESOTA LAWFUL. GAMBLING 6/15 page i of LG214 Premises Permit Application Annual Fee $150 (NON—REFUNDABLE REQUIRED ATTACHMENTS i0 LTG" IN 1. If the premises is leased, attach a copy of your lease. Use L621S Mail the application and required attachments to: Lease for Lawful Gambling Activity. Minnesota Gambling Control Board 2. $150 annual premises permit fee, for each permit (non-refundable). 1711 West County] Road B, Suite 300 South "State Roseville, MN 55113 Make check payable to of Minnesota." Questions? Call 651-539-1900 and ask for Licensing. ORGANLIX, YON INFORMATION Q Organization Name: w k PaT—z 6 License Number: 42�00 6o o Chief Executive Officer (CEO) �� SLI ,,�� Daytime Phone: 3o` o a9a-9gY7 Gambling Manager: / /`fdM C Ll� Daytime Phone: &10 3 166201 GAMBLING PREMISES INFORMAi � pQ�`�er{n(� / /► j j Current name of site where gambling will be conducted: � �JfJJ1 Y\7 BOBER ORELVI G e6 . LL- C List any previous names for this location: 0�0 CD - Street address where premises is located: i Do !7W r�V I ii (Do not use a P.O. box number or mailing address.) City: OR Township: 14Uu CRI WZN County: Zip Code: I rn QI LE00 15.6aya Does your organization own the building where the gambling will be conducted? Yes © No If no, attach LG215 Lease for Lawful Gambling Activity. A lease is not required if only a raffle will be conducted. Is this site? Yes NNoDon't know any other organization conducting gambling at Mote: Bar bingo can only be conducted at a site where another form of lawful gambling is being conducted by the applying organi- zation or another permitted organization. Electronic games can only be conducted at a site where paper pull -tabs are played. Has this Yes �No Don't know your organization previously conducted gambling at site? GAMBLING BANK ACCOl1NT INFORMATION; MUST BE IN MINNESOTA 8 Bank Name: S taftsT C. Bank Account Number: d 768 Gb 193A 3w n,,`` ��350 Bank Street Address: IDa MAIN FST S W City: IV State: MN Zip Cade: ALL TEMPORARY AND PERMANENT OF.FmSITiE STORAGE SPACES Address (Do not use a P.O. box number): City: State: Zip Code: ,, f� [ r + `S S� I'T U �i:iT�/�C�V MN 316113 MN MN LG214 Premises Permit Application I 6/15 Page 2 of 2 ACKNa1WLEDGMENT BAY LOCAL UNIT OF G9VERNMENT: APPROVAL -,_ RE50LUT47 CITY APPROVAL COUNTY APPROVAL for a gambling premises for a gambling premises located within city limits located in a township i City Name: i County Name, Date Approved by City Council: Date Approved by County Board: Resolution Number: Resolution Number: (If none, attach meeting minutes.) (If none, attach meeting minutes,) Signature of City Personnel: Signature of County Personnel: Title: Date Signed: Title: Date Signed: TOWNSHIP NAME: Complete below only if required by the county. Local unit of government On behalf of the township, I acknowledge that the organization is must sign. applying to conduct gambling activity within the township limits. (A township has no statutory authority to approve or deny an application, per Minnesota Statutes 349.213, Subd. 2.) Print Township Name: Signature of Township Officer: Title: Date Signed: ACKNO�PfJLEDG[�+IENT AND OATH 1. I hereby consent that local law enforcement officers, 6. I assume full responsibility for the fair and lawful operation of the Board or its agents, and the commissioners of all activities to be conducted. revenue or public safety and their agents may enter 7, I will familiarize myself with the laws of Minnesota governing and inspect the premises. lawful gambling and rules of the Board and agree, if licensed, 2. The Board and its agents, and the commissioners of to abide by those laws and rules, including amendments to revenue and public safety and their agents, are them. authorized to inspect the bank records of the gambling account whenever necessary to fulfill requirements of 8• Any changes in application information will be submitted to the current gambling rules and law. Board no later than ten days after the change has taken effect. 3. I have read this application and all information g, I understand that failure to provide required information or submitted to the Board is true, accurate, and complete. providing false or misleading information may result in the 4. All required Information has been fully disclosed, denial or revocation of the license. S. I am the chief executive officer of the organization. 10. I understand the fee is non-refundable regardless of license approval/denial. �A. t L(� 7 _C�', aj Sign atur_e'%f,,thief Executive Officer (designee may not sign) Date Data privacy notice: The Information requested on this information when received by the Board. Minnesota's Department of Public Safety, form (and any attachments) will be used by the All other information provided will be Attorney General, Commissioners of Gambling Control Board (Board) to determine your private data about your organization until Administration, Minnesota Management & organization's qualifications to be involved in lawful the Board Issues the permit. When the Budget, and Revenue; Legislative Auditor, gambling activities in Minnesota. Your organization has Board issues the permit, all information 'national and International gambling the right to refuse to supply the Information; however, provided will become public. If the Board regulatory agencies; anyone pursuant to if your organization refuses to supply this information, does not Issue a permit, all information court order; other individuals and agencies the Board may not be able to determine your provided remains private, with the specifically authorized by state or federal law organization's qualifications and, as a consequence, exception of your organization's name and 'to have access to the Information; individuals may refuse to issue a permit. If your organization address which will remain public. Private and agencies for which law or legal order supplies the information requested, the Board will be data about your organization are available authorizes a new use or sharing of able to process your organization's application. Your to: Board members, Board staff whose information after this notice was given; and organization's name and address will be public work requires access to the information; anyone with your written consent. This form will be made available in alternative format, i.e. large print, braille, upon request. An equal opportunity employer MINNESOTA LAWFUL GAMBLING LG215 Lease for Lawful Gambling Activity 6/15 Pagel of 2 ILEASE01 .1 MATIOW Organization: License/Site Number: Daytime Phone: Ameamo kir c-3 bo Pis r 96, 000i3o Sao -587 Address: City: State: Zip: b '� 0& L9 0Ur AN ff3 50 Name of Leased Premises: Street Address: Boca 5K BREWW& Co. Lke oo ! H City: State: Zip: Daytime Phone: PLrcaimsoNMN 6 141- INO -67clo Name of Legal Owner: Business/Street Address: DA&/- 9ou AW-LL, oo-lA City: State: Zip: Daytime Phone: oT,o MN SQ60G 1 - �7 Name of Lessor (if same as legal owner, write "SAME"): Address: �_ City: State: Zip: Daytime Phone; Check applicable item: New or amended lease. Effective date: O�a Submit changes at least ten days before the effective date of the change. Q New owner. Effective date: Submit new lease within ten days after new lessor assumes ownership. Cd#�CiL,Ai.O_ ACTI /ETY 'I'H/�Tf414�YiLlIr,B. >�+D9VID4�C1C ® Inm tlease_:u�ea�a�nir d f®e� Ir ffBes Pull -Tabs (paper) Electronic Pull -Tabs Pull -Tabs (paper) with dispensing device Electronic Linked Bingo L9 Bar Bingo Bingo Electronic games may only be conducted: 1. at a premises licensed for the on -sale of intoxicating liquor Tipboards or the on -sale of 3.2% malt beverages; or ® Paddlewheel 012addlewheel with table 2. at a premises where bingo is conducted as the primary business and has a seating capacity of at least 100. P DAL-T1418, T1Pi30AM,A,1' [®:;P�4DDLE�IiPH �t.`1�E�9g separate Tern .ff®c bimOt4,;; n ll.baa'vps) .._ SOOTH OPERATION: Some,or all.:sales!0gambling equiprrient are; conducted by an employee/volunteer of -a licensed:arganization: at theleased-premises. ALL GAMES, including electronic games: Monthly rent to be paid: %, not to exceed 100/a of gross profits for that month. . Total rent paid from all organizations for only booth operations at the leased premises may not exceed $1,750. . The rent cap does not include BAR OPERATION rent for electronic games conducted by the lessor. BAR OPERATION:. All.sales;ofgamtiling:equipment:conducted by the lessor or;lessors employee, ' ELECTRONIC GAMES: Monthly rent to be paid: %, not to exceed 15% of the gross profits for that month from electronic pull -tab games and electronic linked bingo games. ALL OTHER GAMES: Monthly rent to be paid: 111bt—%, not to exceed ZO% of gross profits from all other forms of lawful gambling. • If any booth sales conducted by a licensed organization at the premises, rent may not exceed 100/a of gross profits for that month and is subject to booth operation $1,750 cap. SINGfol RENT (for leased: ' rrer"tis-s W6 re iio dudsa as' Mngo hall) Bingo rent Is limited to one of the following; • Rent to be paid: 10 %, not to exceed 10% of the monthly gross profit from all lawful gambling activities held during bingo occasions, excluding bar bingo. -OR- • Rate to be paid: $ per square foot, not to exceed 1100/6 of a comparable cost per square foot for leased space, as approved by the director of the Gambling Control Board. The lessor must attach documentation, verified by the organization, to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor. =* Rent may not be paid for bar bingo. => Bar bingo does not Include bingo games linked to other permitted premises. 1 A$ i4!k M11NAT10N ��;A�S�: �fijUst be;coMpteted) The lease may be terminated by either party with a written 30 day notice. Other terms: LG2i5 LaacA fnr I awf iii .Gamhlinn Artivity 6/15 Pace 2 of 2 Lease Term: The term of this agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management: The owner of the premises or the lessor will not manage the conduct of lawful gambling at the premises. The organization may not conduct any activity on behalf of the lessor on the leased premises. Participation as Players Prohibited: The lessor will not par- ticipate directly or indirectly as a player in any lawful gambling conducted on the premises. The lessor's immediate family and any agents or gambling employees of the lessor will not partici- pate as players in the conduct of lawful gambling on the premis- es, except as authorized by Minnesota Statutes, Section 349.181. illegal Gambling: The lessor is aware of the prohibition against illegal' gambling In Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises or that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. Continued tenancy of the organiza- tion is authorized without payment of rent during the time period determined by the Board for violations of this provision, as authorized by Minnesota Statutes, Section 349.18, Subd. 1(a). To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes, Section 609.75. Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site, that is prohibited by Minnesota Rules 7861.0260, Subpart 1, item H, or Minnesota Statutes, Section 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. The lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or local law enforcement authority or to the Board, the conduct of illegal gambling activity at this site In which the organization did not participate. Other Prohibitions: The lessor will not impose restrictions on the organization with respect to providers (distributor or linked bingo game provider) of gambling -related equipment and ser- vices or in the use of net profits for lawful purposes. The lessor, the lessor's immediate family, any person residing in the same residence as the` lessor, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modify or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pend- ing a final determination by the Compliance Review Group (CRG) of the Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Access to Permitted Premises: Consent is given to the Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel to enter and inspect the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the premises during any time reasonable and when necessary for the conduct of lawful gambling. Lessor Records: The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3-1/2 years. Rent All -Inclusive: Amounts paid as rent by the organization to the lessor are all-inclusive. No other services or expenses provided or contracted by the lessor may be paid by the organi- zation, including but not limited to: - trash removal - electricity, heat - snow removal - storage - janitorial and cleaning services - other utilities or services - lawn services - security, security monitoring - cost of any communication network or service required to conduct electronic pull -tabs games or electronic bingo - in the case of bar operations, cash shortages. Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Board. Rent payments may not be made to an individual. I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board. Other terms of the lease: Sig of Lessor Date: Signature of Or aniza ' Fficial (Lessee): Date: erft Name hncLnJ6 of Lessor: Print Name and Title of Lessee: DAN NARK` CPR;srowt7 irm BURLEY CEa e8mrnAmb Questions? Contact the Licensing Section, Gambling Control Board, at Mail or fax lease to: 651-539-1900. This publication will be made available in alternative format (i.e. Minnesota Gambling Control Board large print, braille) upon request. Data privacy notice: The information requested 11711 W. County Road B, Suite 300 South on this form and any attachments will become public information when received by 'Roseville, MN 55113 the Board, and will be used to determine your compliance with Minnesota statutes Fax: 651-639-4032 and rules governing lawful gambling activities. R c R HUTCHINSON CITY COUNCIL � J � •= "t?% Request for Board Action A CITY ON PURPOSE. Resolution 15424 Transferring Funds to the 2021 Construction Fund, General Fund Agenda Item: and Capital Projects Fund Department: Finance LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑] Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: This resolution identifies the following transfers of monies related to the following 2021 roadway improvement projects: - Pavement Management Program on streets to the east of Linden Park/Rec Center - 1st Avenue North from Main Street to Adams Street - Jefferson Street extension between Washington Avenue and 1 st Avenue North 1) Transfers from the Water, Wastewater and Storm Water funds to the 2021 construction fund to finance a portion of the project costs related to enterprise fund infrastructure installed during the improvement projects. These enterprise fund contributions to the project costs help to keep our debt levy at a manageable level. 2) Transfer from the Capital Projects Facility Plan to fund the parking lot replacement at the Civic Arena and Recreation Building. 3) Transfers from the 2021 construction fund to the general fund to cover budgeted operating expenses for engineering services and project administration. 4) A transfer from the 2021 construction fund to the capital projects fund for future comprehensive plan updates and other city infrastructure planning needs. All transfers in this resolution are effective for the 2021 fiscal year. BOARD ACTION REQUESTED: Approve resolution 15424 Fiscal Impact: Funding Source: FTE Impact: Budget Change: Included in current budget: No 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. 15424 TRANSFERRING FROM WATER, WASTEWATER, STORM WATER FUNDS AND CAPITAL PROJECTS FACILITY PLAN TO THE 2021 IMPROVEMENT BOND CONSTRUCTION FUND AND FROM THE 2021 IMPROVEMENT BOND CONSTRUCTION FUND TO THE GENERAL FUND & CAPITAL PROJECTS FUNDS FOR ENGINEERING AND PROJECT ADMINISTRATION FEES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT, $49,092 is hereby transferred from the Water Fund to the 2021 Construction Fund. THAT, $90,686 is hereby transferred from the Wastewater Fund to the 2021 Construction Fund. THAT, $158,600 is hereby transferred from the Stormwater Fund to the 2021 Construction Fund. THAT, $317,564 is hereby transferred from the Capital Projects Facility Plan to the 2021 Construction Fund. THAT, $384,754 is hereby transferred from the 2021 Construction Fund to the General Fund for Engineering Fees. THAT, $81,551 is hereby transferred from the 2021 Construction Fund to the General Fund for Project Administration Fees. THAT, $81,551 is hereby transferred from the 2021 Construction Fund to the Capital Projects for the purpose of Comprehensive Planning and other planning needs. THAT, said transfers are hereby effective and apply to the 2021 fiscal year. Adopted by the City Council this 22nd day of February 2022. ATTESTED: Matthew Jaunich City Administrator Gary T. Forcier Mayor c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Resolution #15425 Transferring from the Community Improvement Fund to the Agenda Item: 2009, 2010, 2011 & 2012 Debt Service Funds Department: Finance LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The attached resolution authorizes the use of committed Community Improvement fund balance for the early retirement of debt issued in 2009, 2010, 2011 and 2012, totaling $903,781.15. The funds were originally committed for the police facility construction project, but it was later determined to be more beneficial to use a portion of the funds to pay off existing debt with much higher interest rates than the new police facility debt. The debt retirement payments were made in July 2021, so these transfers are necessary in order to resolve cash deficits within the funds and close the funds as of December 31, 2021. The following is a summary of the $3,000,000 committed by city council, with amounts used to date and estimated amounts to be used in 2022. Balance Community Improvement committed fund balance: 3,000,000.00 2020 expenditures funded (908,253.00) 2,091,747.00 2021 Debt service funds (2009-2012) early retirements (903,781.15) 1,187,965.85 2022 Debt service fund (2013) early retirement (estimate) (519,465.21) 668,500.64 2022 Police Facility project costs funded (668,500.64) 0.00 BOARD ACTION REQUESTED: Approve Resolution #15425 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. 15425 TRANSFERRING FROM COMMUNITY IMPROVEMENT FUND TO THE 2009, 2010, 2011 AND 2012 DEBT SERVICE FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS, the City Council of Hutchinson, Minnesota, with Resolution No. 14922, committed $3,000,000 of Community Improvement fund balance for the purpose of funding a new police facility; and WHEREAS, the City Council of Hutchinson, Minnesota, with Resolution No. 15324, modified the purpose of the $3,000,000 committed fund balance to include the early retirement of existing debt; and NOW, THEREFORE, be it resolved that the City Council of Hutchinson, Minnesota, approves the following transfers of committed fund balance from the Community Improvement fund for the early retirement of existing debt: 2009 Debt Service fund 2010 Debt Service fund 2011 Debt Service fund 2012 Debt Service fund Total Funds Transferred $195,844.58 73,990.55 315,395.91 318,550.11 $903,781.15 THAT, said transfers are hereby effective and apply to the 2021 fiscal year, and that said debt service funds will be closed effective December 31, 2021. Adopted by the City Council this 22nd day of February 2022. ATTESTED: Matthew Jaunich City Administrator Gary T. Forcier Mayor c� HUTCHINSON CITY COUNCIL ,j " --- • Request for Board Action A CITY ON PURPOSE. Resolution #15426 Closing the 2006 Debt Service Fund to the Community Agenda Item: Improvement Fund Department: Finance LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The debt service issued in 2006, to finance roadway improvements, had its final principal and interest payment in 2021. All debt obligations have been met and the fund can now be closed. The City's practice is to transfer any leftover fund balance into the Community Improvement fund. As the attached resolution indicates, $131,457.08 will be transferred effective for the 2021 fiscal year with the debt fund closed as of December 31, 2021. BOARD ACTION REQUESTED: Approve Resolution #15426 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. 15426 CLOSING OF THE 2006 DEBT SERVICE FUND TO THE COMMUNITY IMPROVEMENT FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA- THAT, the 2006 Debt Service fund is hereby closed and the remaining fund balance, including cash, is hereby transferred into the Community Improvement fund. Closed Fund 2006 Debt Service Fund Receiving Fund Community Improvement Fund THAT, said transfer is hereby effective and applies to the 2021 fiscal year. Adopted by the City Council this 22nd day of February. ATTESTED: Matthew Jaunich City Administrator Transfer Amount $131,457.08 Gary Forcier Mayor cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. A. CONSIDERATION OF A CONDITIONAL USE PERMIT TO ESTABLISH A USE FOR A Agenda Item: BUSINESS/PROFESSIONAL OFFICE SPACE IN A C-5 ZONING DISTRICT LOCATED AT 96 4TH AVE NW. Department: Planning LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: 1982 Holdings, LLC, is seeking approval to remodel the former Hardees Restaurant Building into an office building at 96 4th Avenue NW, Hutchinson. The property most recently had been used as a Hardees Restaurant, until it closed in 2021. The building will be remodeled to accommodate the proposed use which is office space for a financial planning company. Staff noted comments were received from MnDOT and that MnDOT will require a change of use permit for the property. The applicant will need to work with MnDOT to obtain all required permits. Nobody from the public spoke regarding this request. The Planning Commission did not have any questions on the request. The Planning Commission voted unanimously to recommend approval of this request. BOARD ACTION REQUESTED: Approval of Conditional Use Permit Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15427 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ESTABLISH A USE FOR A BUSINESS/PROFESSIONAL OFFICE SPACE IN A C-5 ZONING DISTRICT LOCATED AT 96 4T11 AVE NW. FACTS 1. 1982 Holdings, LLC, applicant, has submitted a conditional use permit request to establish a use for a business/professional office space in a C-5 zoning district located at 96 4t' Ave NW. 2. The proposed property is legally described as: LOTS 9 & 10 & W20' OF LOT 8 & PART OF ADJACENT 3RD AVE NW N OF A LINE 8.5' N OF CENTERLINE OF RR TRACK, Parcel 1: The North Half of the West 20 feet of Lot Eight (8), Block Twenty-one (21), Townsite of Hutchinson, North Half, excepting Parcel 49 Minnesota Department of Transportation Right of Way Plat No. 43-43. Abstract Property. Parcel 2: Lots Nine (9) and Ten (10) in Block Twenty-one (21), EXCEPT the Southerly 132 feet in the Townsite of Hutchinson, North Half and further excepting Parcel 49 Minnesota Department of Transportation Right of Way Plat No. 43-43. Being registered land as is evidenced by Certificate of Title No. 6713. Parcel 3:The Southerly 132 feet of Lots Nine (9) and Ten (10) in Block Twenty-one (21) in the Townsite of Hutchinson, North Half, and That part of the Northerly 16.5 feet of Third Avenue Northwest lying Southerly of said Lots 9 and 10, Block 21, Townsite of Hutchinson, North Half, also the West 20 feet of that part of Lot Eight (8), in Block Twenty-one (2 1) in the Townsite of Hutchinson, North Half and the West 20 feet of the North 16.5 feet of that part of Fourth Street (now known as Third Avenue Northwest) lying Southerly of and adjoining said Lot 8, Block 21, lying Southerly of the following described line: Commencing at a point on the Easterly line of Lot 1, said Block 21, lying 31.49 feet Northerly of the Southeast comer thereof which point is distant 8 feet Northeasterly, measured at right angles or radially, from the center line of Minneapolis Industrial Railway spur or house track I.C.C. 438, being the most Northerly side track Northerly of the main track of said Railway Company, as said tracks were located on January 15, 1973; thence North 74 degrees 1 minute 28 seconds West (Parallel to said spur or house track center line as the same was located on January 15, 1973) a distance of 50.00 feet; thence Northwesterly and Westerly along a tangential curve to the left having a radius of 3000 feet and a chord bearing North 80 degrees 24 minutes 54 seconds West (parallel to said spur or house track center line as the same was located on January 15, 1973) a distance of 93.76 feet, more or less, to the West line of Lot 2, being also the East line of Lot 3, said Block 21; thence Northerly along the West line of Lot 2, being also the East line of Lot 3, a distance of 14.89 feet, more or less to a point on the North line of the South 75.00 feet of said Lot 3; thence North 89 degrees 41 minutes 40 seconds West along the North line of the South 75.00 feet of said Lot 3 and of Lots 4 and 5 in said Block 21 a distance of 210.82 feet, more or less, to a point on the West line of Lot 5, being also the East line of Lot 6, said Block 21; thence Northerly along the West line of Lot 5, being also the East line of Lot 6, said Block 21, a distance of 33.43 feet, more or less, to a point on the East line of Lot 6 lying 108.47 feet Northerly along said East line from the Southeasterly comer of said Lot 6; thence North 89 degrees 41 minutes 40 seconds West a distance of 70.02 feet, more or less, to the West line of Lot 6, being also the East line of Lot 7, said Block 21; thence Northerly along the West line of Lot 6, being also the East line of Lot 7, Block 21, a distance of 23.45 feet, more or less, to the intersection with the Easterly extension of the North line of the South Half of Lots 9 & 10, as described in Book U of Deeds, page 354 (being also the North line of the South Half of Lots 7 and 8); thence Westerly along said Easterly extension of the North line of the South Half of Lots 9 and 10, (being also the North line of the South Half of Lots 7 and 8) to the Westerly line of Lot 8, said Block 21, and there terminating and lying Northerly of a line drawn parallel with and eight and one-half (8 1/2) feet Northerly, measured at right angles, from the centerline of the main track of the Burlington Northern Inc., as said main track is now laid out and located. Being registered land as is evidenced by Certificate of Title No. 8848. Findings of Fact — Resolution # 15427 Conditional Use Permit Office Space 96 4" Ave NW February 22, 2022 Page 2 3. The Planning Commission met on February 15, 2022, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the conditional use permit request with the following conditions. a. The proposed building and site improvements shall comply with the standards of the C-5 district and the Zoning Ordinance, as well as all other City regulations. b. A building permit is required for the remodeling of the building. c. The parking stalls are required to be striped and the size and quantity will be required to meet City Code. d. The applicant must obtain all required permits and approvals from MnDOT. 4. The City Council of the City of Hutchinson reviewed the request at its meeting on February 22, 2022, and has considered the recommendation and findings of the Planning Commission and recommends approval with the following conditions: e. The proposed building and site improvements shall comply with the standards of the C-5 district and the Zoning Ordinance, as well as all other City regulations. f. A building permit is required for the remodeling of the building. g. The parking stalls are required to be striped and the size and quantity will be required to meet City Code. h. The applicant must obtain all required permits and approvals from MnDOT. APPLICABLE LAW The conditional use permit request meets the standards of Section 154.065 and Section 154.175 in the City Code. CONCLUSIONS OF THE LAW 6. The requested conditional use permit is consistent with the City Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit to 1982 Holdings, LLC to allow a business/professional office space in a C-5 (Conditional Commercial) zoning district located at 96 4' Ave NW. is hereby approved. Adopted by the City Council this 22" d day of February, 2022. ATTEST: Matthew Jaunich Gary T. Forcier City Administrator Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: February 10, 2022, for February 15, 2022, Planning Commission Meeting Application: Consideration of a Conditional Use Permit in the C-5 Conditional Commercial Zoning District for an Office Building at 96 4th Avenue NW, Hutchinson. Applicant: 1982 Holdings, LLC Conditional Use Permit 1982 Holdings, LLC, is seeking approval to remodel the former Hardees Restaurant Building into an office building at 96 4' Avenue NW, Hutchinson. The property most recently had been used as a Hardees Restaurant, until it closed in 2021. The building will be remodeled to accommodate the proposed use which is office space for a financial planning company. * Indicates property described in this notice " 4THAVR*W iTH. !7W/22j 96 , . Z _� • J �Y 3RD AVE NW Conditional Use Permit 96 4`h Ave NW Planning Commission — 2/15/22 Page 2 GENERAL INFORMATION Existing Zoning: C-5 (Conditional Commercial District) Property Location: 96 4th Avenue NW, Hutchinson Lot Size: 1.0 Acres Existing Land Use: Commercial — vacant Adjacent Land Use: Commercial Adjacent Zoning: C-5 (Conditional Commercial District) Comprehensive Plan: Commercial Zoning History: Hardees was approved and built on this site in 1978/1979 Applicable Regulations: Section 154.065, 154.175 Building: Existing Building will be used. Conditional Use Permit: A Conditional Use Permit (CUP) is needed for any use in this district. The purpose of the C-5 Conditional Commercial District is to provide for business, commercial and retail uses that are conveniently accessed by major arterial traffic. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. The applicant is requesting a CUP to operate a financial planning services company in this location. The financial planning company has outgrown in current location in the Piehl Hanson Beckman office and needs a bigger space to service the needs of the community. The site has good access off Hwy 7 and 3rd Avenue NW via Glen St NW. The existing parking lot will be utilized and provides more than enough parking spaces for the proposed use. Staff is recommending a site plan showing parking stalls, drive aisles and any proposed changes be submitted with the building permit. Additionally, a building permit will be required for all of the proposed improvements. Conditional Use Permit 96 4`h Ave NW Planning Commission — 2/15/22 Page 3 Recommendation: Staff recommends approval of the conditional use permit with the following conditions: The proposed building and site improvements shall comply with the standards of the C-5 district and the Zoning Ordinance, as well as all other City regulations. A building permit is required for the remodeling of the building. The parking stalls are required to be striped and the size and quantity will be required to meet City Code. Owner Labels Owner Labels w/PID r City Limits Urban Boundary Addresses — Airport Water Valves ■ WV System Water Hydrahis Water Pipes — <alI other values> "' Abandoned — Active ■ Storm Manholes ® Storm Catch Basins Storm Pipes r` Active ••• Abandoned Sanitary Manholes Sanitary Pipes Active - - Abandoned ❑ Parks Parcels ❑ Lakes Street Names ••• Private Roads Aerials 2018 . Red: Band_1 Green: Band_2 . Blue: Band_3 16 tu5 w9 A City of Hutchinson -Sources: EF��{IH EAR Ewa n, t4SGS-intennap METI, E irMALI� g ), Esri Korea, Esri contrib rs, and the GIS User Communr Ity, LO( NGCC, 10 ::X cR HUTCHINSON CITY COUNCIL KJP!'ebHINSCN Request for Board Action A CITY ON PURPOSE. Resolution #15428 Transferring Drug Forfeiture Fund Balance Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City's general fund balance includes a restriction for Police drug forfeiture monies received. The monies are restricted by state statute for use in law enforcement, training, education, crime prevention, equipment or capital expenditures. Finance is proposing that these funds be transferred into the Capital Projects fund for a few reasons. The PD typically uses these monies for capital expenditures, such as police vehicles, training site improvements or other equipment utilized by the PD. Capital expenditures are more appropriately accounted for within our Capital Projects fund as opposed to the General fund. Additionally, when we review the General fund balance, it will be more beneficial to have these restricted amounts moved to other funds so that we have a true picture of the actual General fund balance available for use by council. We made a similar transfer back in 2018 when we moved the Tree Disease Infestation & Mitigation fund balance of $401 K out of the General fund and into a separate Special Revenue fund. The transfer in the amount of $26,247.77, if approved, would be effective December 31, 2021 and reflected within the 2021 audited financial report. BOARD ACTION REQUESTED: Approve Resolution #15428 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. 15428 TRANSFERRING POLICE DRUG FORFEITURE FUND BALANCE TO THE CAPITAL PROJECTS FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA- WHEREAS, Police operations related to enforcement of controlled substances may result in cash and other assets being forfeited to the authorities; and WHEREAS, the City of Hutchinson currently has a General fund balance of $26,247.77 as of December 31, 2021 related to drug forfeiture monies received; and WHEREAS, the City's drug forfeiture fund balance; per Minnesota Statute 609.5315, is restricted for use in law enforcement, training, education, crime prevention, equipment or capital expenditures; and WHEREAS, the Hutchinson Police Department's use of the drug forfeiture funds tends to be for capital expenditures. Such use is more appropriately accounted for within the City's Capital Projects fund as opposed to the General fund; and NOW, THEREFORE, be it resolved that the City Council of Hutchinson, Minnesota, approves the transfer of drug forfeiture fund balance in the amount of $26,247.77, from the General fund to the Capital Projects fund; and THAT, said transfer is hereby effective and applies to the 2021 fiscal year. Adopted by the City Council this 22nd day of February. Gary Forcier Mayor ATTESTED: Matthew Jaunich City Administrator FR Fs HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Item for WWTF Oxidation Ditch Aeration Improvements (1-8/P22-08) Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 2/22,12022 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Approved WWTF Oxidation Ditch Aeration project adopted in 2022 Capital Improvement Plan Above referenced project includes removing the remaining two rotors and replacing them with aerator/mixers, constructing structural platforms for mounting the aerator/mixers, extending two VFD circuits from the existing rotors to the new mixers, installing starters within an existing electrical room, and wiring between the electrical room and aerator/mixer locations. Current estimated cost is $400,000.00. The anticipated bid opening date is Tuesday, March 19th (11:00 AM). Please consider the Resolution to Approve Plans and Specifications and Ordering Advertisement for Bids. BOARD ACTION REQUESTED: Approval of Resolution Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu 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 RESOLUTION NO. 15429 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 8/PROJECT NO. 22-08 WHEREAS, the Director of Engineering/Public Works has prepared plans and specifications for the following described improvement: WWTF Oxidation Ditch Aeration Improvements: removing the remaining two rotors and replacing them with aerator/mixers, constructing structural platforms for mounting the aerator/mixers, extending two VFD circuits from the existing rotors to the new mixers, installing starters within an existing electrical room, and wiring between the electrical room and aerator/mixer locations 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 Tuesday, March 29th, 2022, 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 5:30 pm on Tuesday, April 12th 2022 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 22nd day of February 2022. Mayor: Gary Forcier City Administrator: Matt Jaunich PUBLICATION NO. 8450 ADVERTISEMENT FOR BIDS LETTING NO.8/PROJECT NO. 22-08 I fexyly MiriII airAre\Kdel►[s14 d►F Hutchinson, Minnesota Dated:02/22/2022 The City Council of the Cityof Hutchinson, Minnesota, will receive bids at the Hutchinson City Center, Engineering Office,111 Hassan St SE, Hutchinson MN, until 11:00 am on Tuesday, March 29, 2022, for the making of the following described local improvement: 1-81322-08: WWTF Oxidation Ditch Aeration Improvements: removing the remaining two rotors and replacing them with aerator/mixers, constructing structural platforms for mounting the aerator/mixers, extending two VFD circuits from the existing rotors to the new mixers, installing starters within an existing electrical room, and wiring between the electrical room and aerator/mixer locations and appurtenances, and all in accordance with the Plans and Specifications on file in the Engineering Office Immediately following expiration of the time for receiving bids, the City Administrator and/or Director of Public Works/City Engineer will publicly open bids, in the Council Chambers at the Hutchinson City Center. The Council, will consider said bids and responsibility of the bidders during the Council Meeting at 5:30 pm on Tuesday, April 12th, 2022 in the Council Chambers of the Hutchinson City Center. All bids shall be made on the Proposal Forms of the City and shall be accompanied by a cashier's check, bid bond orcertified check, payable to the order of the City of Hutchinson, Minnesota, for not less than five percent (5%) of the amount bid. Bids shall be directed to the City Engineer, securely sealed and endorsed upon the outside wrapper Plans and Specifications are expected to be available 03/16/2022 Complete digital project bidding documents are available at www.questcdn.com. You may download the digital plan documents for$30.00 by inputting Quest project# on the website's Project Search page. Please contact QuestCDN.com at 952-233-1632-or info@questcdn.com for assistance in free membership registration, downloading, and working with this digital project information. An optional paper set of project documents is available for a nonrefundable price of $80.00 per set, which includes applicable sales tax and shipping. Please make yourcheck payable to Cityof Hutchinson and send itto Hutchinson City Center, Attn: Plans &Specs,111 Hassan St SE, Hutchinson MN 55350. Please contact us at 320-234-4209 if you have any questions. In order to bid on this project, you must be a "registered" plan holder. To be a "registered" plan holder, you must purchase the digital bidding documents from QuestCDN or purchase the papersetof the bidding documentsfrom the Cityof Hutchinson. Any bids submitted by contractors not on the Plan Holder List will not be considered at the time for opening of bids and will be returned to the contractor. The City Council reserves the right to reject all bids and to waive any informalities and irregularities. Matthew Jaunich, City Administrator PUBLISH IN HUTCHINSON LEADER ON WEDNESDAY, MARCH 2ND, 2022 AND WEDNESDAY, MARCH 9TH, 2022. PUBLISH IN FINANCE & COMMERCE ON WEDNESDAY, MARCH 2ND, 2022 AND WEDNESDAY, MARCH 9TH, 2022. cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution Supporting Housing and Local Decision -Making Authority Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Dan Jochum/Matt Jaunich Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Legislation is being introduced this session that could take away certain aspects of a city's land use tools, particularly regarding zoning and planned use development. Although proponents claim the legislation will make housing more affordable, this loss of local control will do nothing to address the real barriers to increasing the housing stock in Greater Minnesota. Please see attached resolution that will be sent to the League of Minnesota Cities and Coalition of Greater MN Cities and shared with our legislators to indicate the City of Hutchinson prefers local control over such matters as land use, zoning and housing. Please let Matt or I know if you have any questions. BOARD ACTION REQUESTED: Approval of resolution. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A RESOLUTION 15430 A RESOLUTION SUPPORTING HOUSING AND LOCAL DECISION -MAKING AUTHORITY WHEREAS, local elected decision -makers are in the best position to determine the health, safety, and welfare regulations that best serve the unique needs of their constituents; and WHEREAS, zoning regulation is an important planning tool that benefits communities economically and socially, improves health and wellness, and helps conserve the environment; and WHEREAS, local zoning regulation allows communities to plan for the use of land transparently, involving residents through public engagement; and WHEREAS, cities across the state are keenly aware of the distinct housing challenges facing their communities and they target those local housing challenges with available tools; and WHEREAS, multiple bills restricting local decision -making related to housing have been introduced in the 2021-2022 biennium. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUTCHINSON that this Council supports local decision -making authority and opposes legislation that restricts the ability for local elected officials to respond to the needs of their communities. LET IT ALSO BE RESOLVED that this Council supports housing policy that advances solutions to support full housing spectrum solutions, local innovation, incentives instead of mandates, and community -specific solutions throughout Minnesota. ADOPTED by the Hutchinson City Council this 22nd day of February, 2022. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor FR Fs HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approval of Project Change/Work Orders and Supplemental Agreements Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders, Supplemental Agreements and/or Work Orders are proposed as noted- - Change Order No. 1 — Letting No. 1 Project No. 22-01 — 2022 Pavement Management Program This Change Order addresses the contract adjustment for two contract pay items. This Change Order does result in a decrease to the Contract in the amount of $156.20. This action does not change the Final Completion Date. - Change Order No. 2 — Letting No. 1 Project No. 22-01 — 2022 Pavement Management Program This Change Order addresses the elimination of 6" secondary sanitary sewer main and extend six sewer services to existing 18" sanitary main. This Change Order results in an increase to the Contract in the amount of $46,781.00. This action does not change the Final Completion Date. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: `a CITY OF HUTCHINSON, MN CHANGE ORDER HUTCH INSQN Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 A OITY ON PURPOSE. 320-234-4209 02/22/2022 SP/SAP(s) NA MN Project No.: NA Change Order No. 1 Project Description: 2022 Pavement Management Program City rPr ject L1/P22-01 Harrington Street SW (South Grade Rd to Linden Ave), Clinton Avenue SW (Harrington St to Lynn Rd), Merrill Street SW (South Grade Rd to Linden Ave), Church Project Location Street SW (South Grade Rd to Linden Ave) and Lyndale Avenue SW (Merrill St to Lynn Rd)Keith Street SW (South Grade Road to Neal Avenue), Neal Avenue SW (Keith Street to Sunset Street), Sunset Street SW (South Grade Road to Linden Avenue), Laura Avenue SW (Approx. 150 LF West of Sunset Street to Sunset Street) and Linden Avenue SW (Dale Street to Harrington Street) � Local Agency City of Hutchinson Local Project No. L1/P22-01 Contractor Landwehr Construction, Inc. Contract No. L1/P22-01 Address/City/State/Zip 846 S 33rd St, PO Box 1086, St. Cloud, MN 56302 Total Change Order Amount $ ($156.20) Issue: It was determined that a contract adjustment was necessary for two contract pay items Resolution: 44 linear feet to be removed from the 12" RC Pipe and 44 linear feet be added to the 15" RC Pipe. Estimate Of Cost: (Include any increases or decreases in contract items, any negotiated or force account items.) ""Group/fundi Item No. Description Unit Unit Price +or — +or— ng Category Quantity Amount $ Change 2503.503 12" RC PIPE SEWER DESIGN 3006 CL V LIN FT $51.30 -44 ($2,257.20) Order 1 Change 2503.503 15" RC PIPE SEWER DESIGN 3006 CL V LIN FT $47.75 44 $2,101.00 Order 1 Net Change this Change Order ($156.20) ;Group/funding category is required for federal aid projects \pproved by Project Engineer: Kent Exner Approved by Contractor: Landwehr Construction. Inc. iigned: Signed: )ate: 02/22/2022 Phone: 320-234-4212 Printed Name: City Council Approval: 02/22/2022 Date: Phone: 320-252-1494 STATEMENT OF ESTIMATED QUANTITIES LNEUTAOTAL NO TEM N DESCRIPTION TE UNIT PROJECT OEST STREET AVENUE AVENUE AVENUE STREET OTT EST OTY EST OTT EST OTT EST OTY EST OTT } 2101.524 GRUBBING TREE WATER 1) 5 2104�502 REMOVE MANHOLE 6 REMOVE H EACH 2104�502 REMOVE DATEVA LVEN EACH 3 0SALVAGE SIGN EACH 4 (2) 28 5 10 3 5 5 12 SAWING CONCRETE PAVEMENT (FUL —) 2t 04�50} SAWING BITUMINOUSPAVEMENT (FULLD DEPTH) 600 tJ5 31 35 335 30 t5 2t 04�50} REMOVE SEWER PIPE (STORM) PE (SANITARY) 04 503 t9 2t 04�504 EMOVE CONCRETE DRIVEWAY PAVEMENT SO TD REMOVE PAVEMENTp TTE SW D 211 2104.51 REMOVE CONCRETE WALK SO FT 506J 4656 26 305 O YE COMMON EXCAVATION (EV) (P) CU M 123B I 2— SUBGRADE ON (EV) (a) 5506 ?954 t00 ts 1695 a5 25 2t05.50] SELECT GRANULAR BORROW (CV) CU ED M 2— SOIL STABILIZATION (5) Sp YD 15646 5000 2953 a00 5005 a0B 27 2t 05.60] AG(EV) (P) (6) CUED WD3 ill 2. SO YD 1]3J6 6]50 2953 400 5865 a0B 2— AGGREGATE SE (CV)FROMSTOCKPILE (P) (7) W 2— FULL DEPTH RECLAMATION (0) Sp YD t5461 559J 2460 334 6305 1315J 5.603 32 2-2 BIOTUNINOUSSMATERIAL FOR TACK COAT 965 300 100 25 300 BO RE (OR) 3 34 2}60.504 TYPE SP 9.5 WEARING COURSE MIXTURE (2.C) I. Sp 1D COURSE RE (aG) z Sp YD M 2502.503 PVC PIPE DRAINING 2-2 4- PIC PIPE DRAIN 38 2-2PVC PIPE DRAIN SERVICED (9) EACH 2-2 CONNECT PIPE DRAIN INTO EXISTH� 40 503. 2503 6a PVC PIPE SEWER (10) 3Z 10) 12 PC PIPE SEWER DESIGN 3006 CL v a3 }64 35 }29 NOTES: (1) INCWOES REMOVAL OF Ell STING CORPORATION (6) INCLUDES E%CAVATION (TO A DEPTH AS SPECI FIFO (9J SEE SHEET t2 (14) POWDER COATED' FINISH, DARK GRAY STOP AND " STAINLESS STEEL PIPE REPAIR LAN NSAL, AGGREGAIEHAU 1440ASOUSH GRADE (10) FOR STORM SEWER (15) FOR TEMPORARY MAI LBO%.INCLUDES SUPPORT, (2) TEMCLAMP PAID PER NUMBER OF POSTS ROAD. RECLAIMED (11)INCLUDES SHEAR GUARD. OR APPROVED ADDRESSED BO%.INSTALLATION AND REMOVAL (3) ANDSCAPE CURB (])INCLUDES LOADING. HAULING AND PLACEMENT EQUAL COUPLING SUPPORT (16) 11 NEW STREET LIGHTS TO BE INSTALLED OF RECLAIMED AGGREGATE FROM STOCKPILE (12) INCWDES ALL LABOR. PIPE AND FITTINGS TO (17) HYDROSEED. IN (4)INCLU DES E%CAVAII ON AND AGGREGATE BASE 4a0 SOUTH GRADE ROAD E FERTILIZER 24-0 V10.SMULCH TYPE 6 WITH TACK CLASS 5 BACKFILL TO ADDRESS UNSUITABLE CB) 10` DEPTH D�SILTAERDGESYTOE4" PI E DRAIN AS SOILS w N ROADWAY, USE OF SALVAGED 'EC DGINEED SPECIAL PROVSIONSTSP PERMITTED SEE (1 A) FOR SANITARY SEWER (5) TRIAR AL GEOGRID 4 BAsls FOR punrvnnEs R TACK COAT Les�Aca FERTILIZER 24-0-10 300 Las/Acre SPAR. By ME 11 Ro PIPS Aw 11 Ro PIPS °UA.— P>ra UN U„YDDW SUPTHASRMSIOx u1D THAT I AMA OF DULLY�U� SBlIll �„� 2022 PAYfl1ENT MANACEIIENT PROGRAM STATEMENT OF ESTIMATED QUANTITIES SHEET RDNm er. „ NT ° LETTING N0. 1 oP xhD„ul DD.„ _ NUTCNINSON CITY PRo,s:CT 22-01 107 STATEMENT OF ESTIMATED QUANTITIES DESCRIPTION N TOTAL SUNSET LINDEN rcE 1H NaITEM N NOTES UNIT QUANTITIES STREET AVENUE AVENUE A SIaEET EST QTr EST STY EST I EST OTv EST STY EST Qn 45 2503.503 24' RC PIPE SEWER DESIGN 3006 CL V 46 2-3 27" NO PIPE SEWER DESIGN 30OS- 4] 2503.503 36' RC PIPE SEWER DESIGN SO — KB 900 908 0 8 52 CONNECT TO EXISTING SS( ANJ 53 2-2 CONNECT TO EXISTING STORM SEW R EACH 54 CONNECT INTO EXISTING DFANAG—E 5 3 2 55 2EED-2 CONNECT TO EXISTING DRAIN DISCHARGE 9) (12) AN ND IDEO 58 2503.603 BLEPVC APIPE VSEWER AP (I A) 2—CONNECT 'ATO EXISTING WATER M 62 250a.602 ADJUST VALVE BOX EACH 4 2-2 4' GATE VAAII' S EACH 250a.602 S' GATE VALVE EACH EACH67 2-2 12' GATE 2-2 ADJUST CURB STOP 2— � CURB STOP AND BOX EACH 4 231 200 10 21 72 2-3 12' WATER MAIN DUCTILE IRON C— I 73 DUCTILE IRON FITTING' BOUND 49 90 151 2506.502 CONSTRUCT DRAINAGE STRUCTURE THE L 79 2506.502 CONSTRUCT DRAINAGE STRUCIURE DESIGN 60-a020 DO 2—A2 CONSTRUCT DRAINAGE STRUCTURE-0 7 7 2506.502 CONSTRUCT DRAINAGE STRUCTURE DESIGN 04-a020 K 2—A2 CONSTRUCT DRAINAGE 0 EACH 3 3 83 2506.502 — CONSTRUCT DRAINAGE STRUCTURE DESIGN t084a020 EACH 85 2-2 ADJUST FRAMEANDRING CASTING EACH SO FT 2935 165 25 2745 8] SO FT BB 2531.503 CONCRETE CURB AND GUTTER DESIGN B618 LIN FT 7084 2625 1259 186 2310 ]04 NOTES (1) INCLUDES REMOVAL OF EXISTING CORPORATION (6) INCLUDES EXCAVATION (TO A DEPTH AS SPECIFIED (9) SEE SHEET 12 (t a) POWDER COATED FINISH. DARK GRAY STOP AND F&I STAINLESS STEEL PIPE REPAIR IN PLANJ. SALVAGING. HAULING AND STOCKPILING (10) FOR STORM SEWER (15) FOR TEMPORARY MAILBOX. IN CLAMP RECLAIMED AGGREGATE AT 1440 SOUTH GRADE ADDRESSED AL (2)ITEM PAID PER NUMBER OF POSTS ROAD, 01)INCLUDES SHEAR GUARD, OR APPROVED (}) LANDSCAPE CULIGHTS TO BE INSTALLED RB (7)C GLUIER LOADING, HAULING ANO PLACEMENT EQUAL COUPLING SUPPORT U PP RT (16) pRVs55 DTR RECLAIMEDSTOCKPILE 112) INCLUDES ALL LABOR, PIPE AND FITTINGS TO (17) HYDROSEEO.E INCLUDES (4) IN TH GRADE ROAD E FERTILIZER 24-0-10, MULCH IRE e WITH TACK (B) 1A0 DEPTH DISCHARGE EXISTING aGPVC PIPE DRAIN DRAIN TILE SOLD WTI. ROADWAY 111 .1 IALVAAID DIRECTED BT ENGINEER PRO'SAGGREGATE ILL NOT 11 SUED AT S.P. 14.5 ED. SEE (13) FOR SANITARY SEWER (5) TRIAXIAL GEOGRID BASIS FOR OUANTITIES R TACK COAT GAL/SY SEED IM XTURE MATERIAL13, FOR 0206Les/ACRE FERTILIZER 24-0-10 300 Les/ACR 11M e. q' V 2022 PAYEIIENT MANAGEAENT PROGRAM STATEMENT OF ESTIMATED WANDDES snEEr 9— .1 xx s �R e IT— ,E w MINN— � � 1ET11NC N0. 1 3 Dv HUTCHINSON CITY PRQECT 22-01 107 STORM SEWER TABULATION - SUNSET STREET aL NT STRICTURE N NUMBER STATION s R Es OFFSET RIM OR ELaw LINE ELEV OUTLET P INVERT ELEVATION ERFALIGNMENT INVEreT ELEV DESIGN i DEPTH (FEET) V aIN En EWE SEWER CONNECT DERAINAGE STRUCTURE CONNECT T NO STORM SEWER CATCH BASIN TYPE A caTCH BASIN 48-4020 60-4020 ]2-4020 84-4020 108-4020 DESIGN SPECIAL cTYPE TYPE STRUCTURE NUMBER wLET INVERT 9. CRADE 12" 15" 16" 24' 2]" 36" 42" 48' %HG3MB }+p9.96 19.6 LT 1060.}5 1053.81 6.54 R-1733 H 316 1053,61 0.20 84 E%TG STORM 3+10 19.6 LT MIT 31B 1OSA GO - 0 MH ITS 3+9346 15.7 LT t059.J6 1053.fi4 612 R-30fi5-V MIT 315 105B OD 0.20 18 G12C H 4+20 161 RT 1059.]t t054.00 10-5 5.J1 R-3065-v H 3L5 1053.83 - 35 456+866 H 312 15.J LT 1060.4p t053 t6 ].24 R-3065--v MIT 310 1052.95 0- 106 CB 205 5+8]t8 }p,9 LT 1059.}p t054.20 5.10 R-2573-C MIT 312 1054,00 1.33 15 MIT 310 6+93.62 15.7 LT t059.99 1052.95 105].] R-3065-V MIT COS --0 0 73 CD 112 7+30.22 18,5 RT 1059.86 1056.86 R-306J-V CD 118 1056.49 1.00 37 r3-7 CB 114 J+4B.61 36 4 LT 1060.95 t056.59 1050.8 4.36 R-306J--v IT 306 1056,311 1.00 28 MH 306 9+93.85 15.J LT 1060.55 t052.35 8.20 R-3065-V MIT 302 10523p - 26 IG2 Q - - 11.] 54 R-1733 MH _.IT H 302 1O 10+1- 12.9 LT 1EG- 105 P 30C 1052,20 0- 2. DES IN SEVATACLN lC4A.3C MANHOLE DEPTH 11.54 FEET SEE SHEET 47 FOR DETAL µ a.. xo n Da nx HUTCH114 2022 N MANAGEMENT PROGRAM SUNSET STREET LETTING NO I an PROJECT zz-m saN sEMER TABULATIONS NO SCALE SoxEB 10E7t STORM SEWER TABULATION — NEAL AVENUE 4" PI STRUCTURE DESIGN / DEPTH (FEET) RC PIPE DESIGN CL V CONIES TO STRICTURE IBM UPOUTLET REIF PIE (LIN FT) ExISTING ALIGNMENTUMBER STATIONOFFSETCATCH STORM ELEV VATI ELEv BASIN 46—a020 60-4020 T— NUMBER % GRADE 12' 15" 16" SEWER PE A ELEVATION CB 2ta 5+09.69 23a RT 1066.9a 1065.9a 10fi6.6 3.00 R-3067--v MIT 212 1065.62 1.00 12 30 31 31 TOTALS NEAL -NUE 121 d3SA ISO 2 YOYY PAVENENT NANMi11ENT PROGRAM STORM sEMER rAeuunONs sxEEr xo n N : Ds nx1� NEAL AVENUE NO SCALE 68 HUTCHINSON LETTING N0. 1 arr PRQEcr zz—m ion SIR HUTCH 1 -ON A OITY ON PURP08E. CITY OF HUTCHINSON, MN CHANGE ORDER Engineering Dept, 111, Hassan St SE, Hutchinson MN 55350 320-234-4209 02/22/2022 SP/SAP(s) NA MN Project No.: NA Change Order No. 2 Project Description: 2022 Pavement Management Program City rPr ject L1/P22-01 Harrington Street SW (South Grade Rd to Linden Ave), Clinton Avenue SW (Harrington St to Lynn Rd), Merrill Street SW (South Grade Rd to Linden Ave), Church Street SW (South Grade Rd to Linden Ave) and Lyndale Avenue SW (Merrill St to Lynn Rd)Keith Street SW (South Grade Road to Neal Avenue), Neal Avenue SW ;t Location (Keith Street to Sunset Street), Sunset Street SW (South Grade Road to Linden Avenue), Laura Avenue SW (Approx. 150 LF West of Sunset Street to Sunset Street) and Linden Avenue SW (Dale Street to Harrington Street) Agency City of Hutchinson Local Project No. L1/P22-01 actor Landwehr Construction, Inc. Contract No. L1/P22-01 ss/City/State/Zip 846 S 33rd St, PO Box 1086, St. Cloud, MN 56302 Change Order Amount $ $46,781.00 Issue: Roots and freezing issues inside existing secondary sanitary sewer main. Resolution: Elimination of 6" secondary sanitary sewer main on South side of Linden Avenue (Between Sunset St SW and Dale St SW) and extend six sewer services to existing 18"sanitary main. •negotiated. "Group/fund) + or — + or — ng Category Item No. Description Unit Unit Price Quantity Amount $ Change 2101.502 Clearing (20" Diameter Tree) Each $285.00 1 $286.00 Order 2 Change 2101.507 Grubbing Each $108.00 1 $108.00 Order 2 Change 2104.501 Remove Sewer Pipe (Sanitary) Lin Ft $19.50 40 5780.00 Order 2 Change 2104.509 Remove Manhole Each $2,192.00 1 $2,192.00 Order 2 Change 4: Insulation (4" Width Centered Over New Sanitary Order 2 2502.604 Sewer Pipe) Over the Top Entire Length, Along with SQ YD $65.50 140 $9, t70.00 Underneath Within 10' of the 60" Storm Sewer Lin Change 2503.603 18"X6" Saddle (Connect to 18" RCP Sanitary Sewer) Each $2,090.00 6 $12.540.00 Order 2 Change 2503.602 6" Clean -Out Assembly Each $1,078.00 7 $7,546.00 Order 2 Change 2503.603 6" PVC Pipe Sewer Lin Ft $59.00 240 $14,160.00 Order 2 Net Change this Change Ord $46,781,2j ;Group/funding category is required for federal aid projects 1pproved by Project Engineer: Kent Exner Approved by Contractor: Landwehr Construction. Inc. tigned: Signed: )ate: 02/22/2022 Phone: 320-234-4212 Printed Name: City Council Approval: 02/22/2022 Date: Phone: 320-252-1494 u y L I 9 L J �nnrr � RADDLE+ro1X - __ LWDEN AVENUE � I k4d ITro®cN ts�P OAa + � � -� ,Mcd, Lvr w k xew r11L O s'CLEAN OUT �v� tpp SSEMBLY \-- 6GLEAR 'APVC SERVICE PIPE \ `/� G GRUB TREE / AN NOTES: (1) EXISTING SANITARY SERVICES 4' N (2) BULK HEAP SEWER LL SERNGES ANG MANHOLE (INCIDENTAL) Two ,� � HUTICH#N$04 Inc taq t an tnz aT - tg� GENERAL/UTILITY CONTRACTOR TO MARK LOCATION OF SERVICE AT CURB INTERSECTION WITH STAKE OR OTHER PHYSICAL METHOD. SET TOP PLUGS R/W ELEV, 6" DEEP MAX SANITARY SEWER BELOW FINISH GRADE 4' STEEL FENCE POST MARKERS SERVICE CAST IRON PLUGC ALL SEWER SERVICE PIPE (THREADED) AND FITTINGS SHALL BE PVC SDR 35 9' T) p_ 7' MIN. ©R PLUG OR CONNECT TO EXISTING MAX. SERVICE. USE SHEAR GUARD OR SERVICE 45' SLOPE APPROVED EQUAL AT CONNECTION WYE 1 % MIN WYE ;f CLEAN -OUT ASSEMBLY INCLUDES ALL PIPE, FITTINGS, AND 4' STEEL POST IF APPLICABLE. GRANULAR BEDDING MATERIAL UNDISTURBED SOIL R/W 4' STEEL FENCE POST MARKERS CAST IRON PLUG (THREADED)\ SEWER SERVICE INCLUDES ALL FITTINGS & ADAPTERS AS REQUIRED FOR A WATERTIGHT INSTALLATION, 10' MAX @R SERVICE WYE TO BE EMBEDDED IN CONCRETE WHEN DEPTHS GREATER THAN 20' SANITARY SEWER SERVICE WITH RISER SERVICE ALL SEWER SERVICE PIPE WYE AND PVC SDR135S SHALL BE PLUG OR CONNECT TO EXISTING SERVICE. USE SHEAR GUARD OR APPROVED EQUAL AT CONNECTION. MAX. 45° UNDISTURBED SOIL ANULAR BEDDING MATERIAL SANITARY SEWER SERVICE / CLEAN -OUT ASSEMBLY CITY OF HUTCHINSON MN. 11/21 STANDARD 510 DRAWING N0. cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration for Approval to Purchase Technology and Equipment for a Covered Agenda Item: Aerated Static Pile (CASP) composting system; PO Requisition #020227 Department: Creekside - Refuse Fund LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In the spring of 2021, staff issued an RFP requesting responses from interested vendors to provide proposals for the technology and necessary equipment for a Covered Aerated Static Pile (CASP) compost processing system to replace Creekside's antiquated in -vessel container composting system. Three responses were received. Due to permitting delays, the project was tabled for 2021. In January of this year, staff requested the three responding vendors to update their pricing based on the original RFP. Green Mountain Technologies (GMT) provided the lowest total price of $121,684. Engineered Compost Systems (ECS) provided a total price of $190,460. Sustainable -Generation provided a total price of $348,000. Staff conversed with each of the vendors to identify which of their proposed systems would suffice the needs of the Refuse Fund's source separated organic material composting operations. It was determined that GMT's system, the lowest priced system, will suit the needs of the operation. Each of the systems proposed have the ability to expand to a higher capacity (double) at a later date, if needed. GMT's proposal is broke down into two parts; Design Engineering & Development ($22,170) and Technology & Equipment & Installation ($99,514). The PO is in full amount of $121,684 for the two parts, however, should construction not move forward due to unforeseen MPCA constraints, the purchase of the Technology & Equipment & Installation may not take place. It is staffs hope and intent to begin installation construction on this project late summer of 2022, however, due to permit issuance, equipment and construction Ieadtimes, the construction may be delayed to 2023. BOARD ACTION REQUESTED: Staff recommends approval of PO Requisition #020227 in the amount of $121,684 to Green Mountain Technologies Fiscal Impact: $ 121,684.00 Funding Source: Refuse Fund 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 Purchase Requisition Purchase Requisition No 020227 Requested Date 02/15/2022 Department 4943 Required Date Requested By akosek Preferred Vendor 134538 GREEN MOUNTAIN TECHNOLOGIES Address 5350 MCDONALD AVE NE BAINBRIDGE ISLAND, WA 98110 Req. Description CASP COMPOSTING SYSTEM 02/15/2022 02:19 PM Qty. Description GL Number 1 Unit Price Amount 1 DESIGN ENGINEERING & DEVELO] 603-4943-90530 22,170.00 22,170.00 1 CASP TECHNOLOGY, EQUIPMENT r 603-4943-90530 99,514.00 99,514.00 1 SUPERVISION PER REV03 2022 ( 603-4943-90530 Total: 121,684.00 Creekside Soils Covered Aerated Static Pile (CASP) System Bid Tabulation Technology and Equipment Components Only - No Construction costs included Publication #8405 Original Proposals due 5:OOpm, April 28th, 2021 Project Tabled in 2021 Updated Proposals due 5:OOpm, February 9th, 2022 Only vendors who responded to original RFP were allowed to submit updated pricing for Feb 9th, 2022 due date 2022 Pricing Vendor -Technology Provider Green Mountain Technolar ies (GMTJ Engineered Compost Systems (ECS) Sustainable Generatlan SSG) All forms completed and submitted? Y/N YES YES YES Cost Proposal Design Engineering 8, Development 6 bunker system; 12'x2O' zones Heap System w/ GORE Covers Add'I Equipment - Cover Winding Machine $22,170.00 Included Included 514,00 $190 460.00 N/A N/A N/A $250 0K00 N/A N/A $98,000.00 Component Warranty Purchase Price, Delivered 1 Year 1 Year 2 Yeats $127,6$4.00 $348.000.00 GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Cover Letter DATE 02/14/2022 Andy Kosek Creekside Soils 1500 Adams St SE, Hutchinson, MN 55350 (320) 587-6762 Subject: Design Proposal Composting Facility City of Hutchinson, MN, USA Dear Andy: Per our conversation on Friday with Craig Coker and yourself, we have divided the scope of work into two separate proposals. The first proposal involves the design engineering and development of the construction drawings in conjunction with the local engineering group. The second proposal is for the equipment, installation and startup training and support. The operating assumption is that the project will be permitted by the time the engineering work is completed and will allow Creekside to proceed with the equipment order with confidence sometime this summer. We have detailed a project approach and delineation of scope between GMT and subcontractors that will provide Creekside with the most cost-effective delivery for the 6-zone CASP system per the specifications in the RFP. We included our state-of-the-art WebMACS web -based data logging controls platform which allows remote access to the operation from any internet enabled device. GMT has developed a detailed 3D model of the system based on the information provided in the RFP. The model will be further refined and will serve as the basis of communication between GMT and the civil engineer while coordinating utilities and drainage. GMT will provide all ducting required for the below - grade aeration in PVC, with an option for HDPE if the client or contractor prefers as a part of our bid package. The contractor will perform all the installation based on GMT drawings and support. GMT will also supply and install the blowers and control system, motor contactors, temperature probes, and perform the commissioning and training. We believe GMT is especially qualified to achieve these goals. The senior engineer and designer assigned to this project, Jeff Gage, and I have more than 63 years of combined composting systems -related experience. Together, we have designed over 40 large-scale facilities utilizing ASP or CASP concepts that manage a wide variety of feedstocks in a diversity of climates, including the northern US and Canada. The project team will also include key team members who have supported Michael and Jeff on a number of ASP projects. Kind Regards, Michael Bryan -Brown Senior Engineer (206) 842 5471 GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS PROJECT UNDERSTANDING The following project understanding is based on the RFP, email correspondence and telephone calls between Andy Kosek, Craig Coker, Michael Bryan -Brown, and Orion Black -Brown. Assumptions: 1. All details specified in the equipment proposal dated 2/14/2022 will be upheld in the final design 2. GMT will provide a model and drawings as illustrated in the equipment proposal dated 2/14/2022 3. GMT will work with other subcontractors to integrate our system into their design 4. GMT will not provide any construction drawings beyond the drain line of the pressure trap 5. GMT will provide composting expertise to ensure that other contractors install our equipment to specification 6. GMT is not responsible for stormwater management on site 7. GMT is not responsible for structural considerations on site 8. Any changes in design may result in additional costs Note: GMT does not hold an engineering license in Minnesota. As such a local engineering firm would need to be hired for any stamping requirements. GMT's work products are normally directly transferrable to an engineering firm for their review and stamping as needed. PROPOSED FEES Our services will be provided on a fixed rate basis so long as no significant changes occur (significant defined as taking 2 or more hours to implement). The total for us to perform are services is $22,170. Any unexpected conditions or concerns that become apparent during the project may require a revision in the project scope and fees. GMT will immediately notify Creekside soils of any necessary change in project scope and fees and obtain written approval of such changes. Any alterations or deviations from the above specifications involving extra costs will be executed only upon written order and will become an extra charge. A retainer in the amount of 75% of the total estimated fee will be required to initiate our services. Upon receipt of formal authorization to proceed, we will transmit an invoice in the amount of the retainer. We will initiate our services upon receipt of the payment. GMT will invoice for the remaining 25% upon completion. This proposal may be withdrawn by GMT if not accepted within 30 days GMT QUALIFICATIONS AND STAFF RESOURCES GMT has designed and constructed composting facilities for municipal and commercial use for over 30 years. Our recent clients include the City of Phoenix, Salinas Valley Waste Authority, Revolution Organics (British Columbia), Boost Organics (British Columbia), Recology Waste Solutions, and many more. We strive to find the best solution for our clients' unique situation with the lowest environmental and cost impacts. We have developed a diversified product line that includes large and small composting equipment, windrows and web -based automated controllers. We are experts in odor control and leachate capture and treatment. Our goal is to design facilities that are still operating and successful 25 years later. GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS The proposed GMT team members will include: • Michael Bryan -Brown (Senior Engineer) will be overseeing project delivery and success • Jeff Gage (system Designer) review ASP design engineering • Orion Black -Brown (Project Engineer) will be completing most of the design work • Jake Saavedra (Controls Design) Electrical specialist and control system design TERMS AND CONDITIONS The terms and conditions of GMT's professional services are provided in Attachment C, Engineering and Consulting Services General Terms and Conditions. In the event of a conflict between the terms of this proposal and Attachment C, the terms of this proposal shall control. This proposal will remain valid for 30 days. If the terms of this proposal are acceptable, please sign at the bottom of this page and return this page to GMT. A fully executed copy will be returned to you for your files. If you choose to fax or email a copy of this authorization page, please also return the signed original copy via U.S. Mail. GMT will provide these services using its reasonable best efforts consistent with the level and skill ordinarily exercised by members of the commercial composting -related engineering and consulting profession currently practicing under similar conditions. CLOSURE As mentioned earlier, we believe GMT is especially well qualified to serve your needs. If you have any questions or need additional information, please call me at (206) 799-2533. We look forward to working with you on this project. Sincerely, GREEN MOUNTAIN TECHNOLOGIES INC. Orion Black -Brown Mechanical Engineer & Project Manager ACCEPTANCE: This Agreement is accepted by Owner this day of February 2022. Signature By: Title: Attachment: Attachment A, Representative Project Descriptions Attachment B, Consulting and Engineering Services General Terms and Conditions GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS ATTACHMENT A: REPRESENTATIVE PROJECT DESCRIPTIONS GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Green Mountain Technologies has designed over 30 aerated composting facilities In the last 5 years. The facilities vary In size from 1,000 to over 500.000 tons per year with the majority of the projects processing around 50,000 tons per year. Project Name Location Technology TPV Capacity Feedstocks Dealgn Eqpt Year Bloedel Reserve Bainbridge Island. WA ASP 1,800 GW x x 2021 KAUST Thuwal, Saudua Arabia GASP 22.000 GW - FW x x 2021 Unrivaled Organcs Sherwood, OR ASP 7.000 GW x x 2021 Stage Gulch Organics Santa Rosa, CA cASP 180.000 GW - FW x 2021 Recology of Oregon North Plains North Pla ns, OR GASP 120.000 GW - F W x x 2021 Recoogy Blossom Valley Organics North Vemalis, CA cASP 546.000 GW-FW x x 2021 DALLAH Corp Neon, Saudi Arabia cASP 6,000 GW - FW x 2020 Olympic Organcs Kingston, WA cASP 30.000 GW - FW x 2020 Sticldand Farms Red Deer, BC ASP 45.000 GW - FW - BS x x 2020 Grimm's Fuel Company Tualatin, OR cASP 1O0000 GW x x 2020 Salinas Valley Soli d Waste Authority Gonzales, CA GASP 75,000 GW - FW - AG x x 2020 Dirt Hugger Dallesport. WA TAP 60.000 GW-FW x x 2020 Atwood Recyclers Troutdale. OR GASP 45.000 GW x x 2019 Boost Organics Abbotsford, BC ASP 25.000 GW - FW x 2019 Coco Beach Utility Company Rio Grande. PR ASP N/A WA x x 2019 Recoogy of Oregon Aumsville Aumsville, OR GASP 90.000 GW-FW x x 2019 Harvest Power Richmond, BC cASP 130.000 GW-FW x 2018 Recoogy Ostrum Organics Sacramento, CA cASP 624.000 GW - FW x x 2018 Vision Recycl ng Livermore. CA cASP 40.000 GW - FW - AG x x 2018 Anderson-Montgornery Missoula, MO rASP 36.000 BS WW x 2017 Cowlitz Valley Compost Longview. WA cASP 60.000 GW x x 2017 En virofert Tuakau, New Zealand cASP 37.000 GW - FW - M x 2OT7 Joint Base Lewis McChord Tacoma. WA ASP WA BS - GW x 2OT7 Revolution Organk3 Lytton, BC ASP 45.000 FW - BS x x 2017 City of Phoenix 27th Avenue Compost Phoenix, AZ TAP - TS 220.000 GW - F W - M x x 2016 Cold Creek Compost Ukiah. CA GASP - cTAP 90,000 GW - FW - M x 2016 Pronaca Bucay Cumanda, Ecuador TAP 13.000 BS - GW - M x 2016 Pronaca Valle Hermoso Santo Domingo. Ecuador TAP 10.000 BS - GW - M x 2016 Graton Waste Water Treatment Plant Graton. CA GASP 7.000 BS - GW x x 2015 Envirosmart Delta BC TAP ASP 150.000 GW - FW x x 2014 Washington State University Pullman. WA ASP 20.000 M x x 2013 5 GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS ATTACHMENT B: CONSULTING AND ENGINEERING SERVICES GENERAL TERMS AND CONDITIONS GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Engineering and Consulting Services General Terms and Conditions Effective June 9, 2021 1. APPLICABILITY, These terms and conditions for services (these "Terms") are the only terms that govern the provision of services by Green Mountain Technologies, Inc. ("GMT") to the client ("Client") named in the accompanying GMT proposal or services agreement (in each case, the "Proposal"). The Proposal and these Terms (collectively, this "Agreement"} comprise the entire agreement between the parties and supersede all prior or contemporaneous understandings, agreements, negotiations, representations and warranties, and communications, both written and oral. Unless expressly stated in the Proposal, if there is any conflict between these Terms and the Proposal, these Terms shall govern. These Terms prevail over any of Client's general terms and conditions regardless of whether or when Client has submitted its request for proposal, order, or such terms. Provision of services to Client does not constitute acceptance of any of Client's terms and conditions and does not modify or amend these Terms. 2. SERVICES; ACCESS. GMT shall provide the services to Client as described in the Proposal (the "Services"). Client shall cooperate with GMT in all matters relating to the Services. Client shall, at Client's expense, provide such access to the property upon which the Services are to be performed ("Site") for GMT and its subcontractors, as may be requested by GMT or such subcontractors, for the purpose of performing the Services. 3. CLIENT OBLIGATIONS. Client understands that GMT is relying upon the completeness and accuracy of information supplied to it by Client and others in connection with the Services without independent verification. Client shall: (i) provide such Client materials and information as GMT may request to carry out the Services in a timely manner and ensure that such materials or information are complete and accurate in all material respects; (ii) advise GMT of the existence of any hazardous conditions affecting the Site or the Services to be performed hereunder; (iii) respond promptly to any GMT request to provide direction, information, approvals, authorizations, or decisions that are reasonably necessary for GMT to perform Services; and (iv) obtain and maintain all necessary licenses and consents to comply with all applicable laws in relation to the Services before the date on which the Services are to start. 4. STANDARD OF SERVICES AND WARRANTY DISCLAIMER. GMT warrants that it will perform the Services in accordance with (i) generally recognized engineering and consulting standards and (ii) scientific practices utilized by environmental engineering and consulting firms in the United States, in each case at the time the Services are rendered (collectively, the "Limited Warranty"). Client acknowledges and agrees that the Services may involve the use of tests, calculations, analysis, and procedures that are in flux and subject to refinement. Given the difficulty in predicting the environmental condition of a site based upon limited sampling and investigative activity, Client recognizes and agrees that any statements, opinions, and conclusions contained in Work Product (defined below) prepared or issued by GMT are only meant to give approximations of the environmental condition of the Site limited to the particular analyte(s) and/or environmental issues actually targeted by GMT's investigation and the portions of the Site actually investigated, sampled, or tested by GMT. GMT shall not be liable for a breach of the Limited Warranty unless Client gives written notice of the defective Services, reasonably described, to GMT within 10 days of the date when the Services are completed. Subject to the preceding sentence, G MT shall, in its sole discretion, either (i) re -perform such Services (or the defective part); or (ii) credit or refund the price of such Services at the pro rata contract rate. THE REMEDIES SET FORTH IN THIS SECTION 4 ARE CLIENT'S SOLE AND EXCLUSIVE REMEMDY AND GMT'S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED WARRANTY. EXCEPT FORTHE LIMITED WARRANTY, GMT MAKES NO WARRANTY, EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE, WITH RESPECT TO THE SERVICES. GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Effective June 1, 2021 S. CONFIDENTIALITY. Either GMT or Client (as the "Disclosing Party) may disclose or make available to the other (as the "Receiving Party") information about its business affairs, services, products, confidential intellectual property, trade secrets, third -party confidential information and other sensitive or proprietary information, whether orally or in written, electronic, or other form or media, and whether or not marked, designated, or otherwise identified as "confidential" (collectively, "Confidential Information"). Confidential Information does not include information that, at the time of disclosure: (i) is or becomes generally available to and known by the public other than as a result of, directly or indirectly, any breach of this Section 5 by the Receiving Party or any of its employees, officers, directors, members, managers, agents, and independent contractors (collectively, "Representatives"); (ii) is or becomes available to the Receiving Party on a non - confidential basis from a third -party source, provided that such third party is not and was not prohibited from disclosing such Confidential Information; (iii) was known by or in the possession of the Receiving Party or its Representatives before being disclosed by or on behalf of the Disclosing Party; (iv) was or is independently developed by the Receiving Party without reference to or use, in whole or in part, of any of the Disclosing Party's Confidential Information; or (v) is required to be disclosed under applicable federal, state or local law, regulation, or a valid order issued by a court or governmental agency of competent jurisdiction. The Receiving Party shall: (A) protect and safeguard the confidentiality of the Disclosing Party's Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care; (B) not use the Disclosing Party's Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement; and (C) not disclose any such Confidential Information to any person or entity, except to the Receiving Party's Representatives who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under the Agreement. The Receiving Party shall be responsible for any breach of this Section 5 caused by any of its Representatives. Each party's obligations under this Section 5 will commence on the date the Services begin (as determined by G MT) and continue for one (1) year from such date; provided that, with respect to Confidential Information that constitutes a trade secret under applicable law, such obligations shall survive for as long as such Confidential Information remains a trade secret under such law. Notwithstanding the foregoing, Client agrees that GMT may use and publish Client's name, logo, and a general description of the Services in describing GMT's experience and qualifications to other clients and potential clients and in GMT's marketing materials. 6. WORK PRODUCT. All intellectual property rights, including copyrights, patents, patent disclosures and inventions, trademarks, service marks, trade secrets, know-how and other confidential information, trade dress, trade names, logos, corporate names, and domai n names, together with all of the goodwill associated therewith, derivative works and all other rights (collectively, "Intellectual Property Rights") in and to all documents, work product, reports, notes, field data, laboratory test data, and other materials that are delivered to Client under this Agreement or prepared by or on behalf of GMT in the course of performing the Services, including any items identified as such in the Proposal (collectively, the "Work Product") except for any Confidential Information of Client or Client materials shall be owned by GMT. Subject to Client's payment in full for the Services, GMT hereby grants Client a license to use all Intellectual Property Rights in the Work Product free of additional charge and on a non-exclusive, worldwide, non -transferable, non-sublicensable, fully paid -up, royalty -free, and perpetual basis to the extent necessary to enable Client to make reasonable use of the Work Product and the Services solely for the particular Site and project for which such Work Product and Services are provided. Client may release the Work Product to third parties; provided, that GMT shall not be liable for any claims, losses, liabilities, or damages resulting from or connected with such release or any third party's use of the Work Product, and Client shall indemnify, defend, and hold GMT harmless from any and all such claims, losses, liabilities, or damages. 7. INSURANCE. During the term of this Agreement and for one year thereafter, GMT shall, at its own expense, maintain and carry workers` compensation and employer's liability insurance in accordance with requirements of the state in which the Services are being performed, commercial general liability insurance with a limit of GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Effective June 1, 2021 $3,000,000 per occurrence and in the aggregate for bodily injury and property damage, automobile liability insurance including owned and hired vehicles with a limit of $1,000,000 per occurrence and in the aggregate for bodily injury and property damage, and professional liability (errors and omissions) insurance with a limit of $1,000,000 per claim and in the aggregate with financially sound and reputable insurers. During the term of this Agreement and for one year thereafter, Client shall, at its own expense, maintain and carry insurance in full force and effect which includes, but is not limited to, commercial general liability (including product liability) in a sum no less than $1,000,000 with financially sound and reputable insurers. 8. INDEMNITY. GMT shall indemnify, defend and hold harmless Client, its officers, directors, agents employees and affiliated and parent companies against claims, demands and causes of action of third parties (including reasonable attorney fees and costs of defense) for bodily injury, disease or death, and damage of property arising during the performance of Services to the extent caused by the negligence or willful misconduct of GMT. Client shall indemnify, defend and hold harmless GMT, its officers, directors, agents, subcontractors, employees and affiliated and parent companies against claims, demands and causes of action of third parties (including reasonable attorney fees and costs of defense) for bodily injury, disease or death, and damage of property arising during the performance of the Services and this Agreement to the extent caused by the negligence or willful misconduct of Cl lent, 9. PAYMENT & CHANGES. GMT will issue invoices to Client as described in the Proposal. If GMT in its discretion requires that Client pay a retainer, GMT will issue Client an invoice for the retainer, which Client shall pay before GMT commences the Services, and GMT will issue Client one or more additional invoices for the remaining balances) due either (i) upon delivery of the Work Product or (ii) monthly, twice per month, or at other intervals as determined by GMT in its discretion. Invoices may include an itemization of staff categories, hours worked, rates, and other items and expenses. Invoices may be sent to Client by email or as otherwise determined by GMT. Client shall pay all invoiced amounts within 30 days from the date of GMT's invoice or within such shorter time frame as may be required by the invoice. Client shall make all payments by electronic funds transfer to the routing number listed on the invoice or by check to GMT's address shown on the invoice. Notwithstanding any provision of the Agreement to the contrary, Client shall pay GMT additional compensation for Services if GMT experiences any increases in costs due to: (i) changes in G MT's scope of work from that included in the Proposal; (ii) additional work requested by Client; (iii) changes in the manner or method of performance of work or due to changes in schedule; or (iv) other circumstances not solely caused by GMT. GMT shall be compensated for all such additional work either (1) as previously agreed in writing by the parties; or (2) on a time and materials basis in accordance with GMT's then current standard commercial rates. Upon Client's request and at Client's expense for associated labor and copying costs, GMT will provide reasonable supporting documentation for invoices. Client shall pay interest on all late payments, calculated daily and compounded monthly, at the lesser of the rate of 1% per month or the highest rate permissible under applicable law. 10. LIMITATION OF LIABILITY. IN NO EVENT SHALL GMT BE LIABLE TO CLIENT OR TO ANY THIRD PARTY FOR ANY LOSS OF REVENUE OR PROFIT, LOSS OF OPPORTUNITY, LOSS OF PRODUCTION, LOSS OF USE, OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT GMT HAS BEEN ADVISED OF THE POSSIBI LITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. I N NO EVENT SHALL GMT'S AGG RELATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT (INCLUDING BUT NOT LIMITED TO THE SERVICES AND/OR THE SITE), WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEEDTHE LESSER OF (1) $50,000 AND (II) AGGREGATE AMOUNTS PAID OR PAYABLE TO GMT PURSUANTTO THIS AGREEMENT IN THE 12-MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM, THE LIMITATION ON LIABILITY IN FAVOR OF GMT IN THIS SECTION 10 APPLIES TO GMT, ITS SUBSIDIARIES, AFFILIATES, SUBCONTRACTORS, AND SUPPLIERS. GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Effective June 1, 2021 11. ENVIRONMENTAL CONDITIONS. Client shall provide (or cause the Site owner to provide) GMT with the identity and location of all subsurface facilities and obstructions on the Site. Client hereby waives any claims against GMT and Client shall indemnify, defend and hold GMT harmless from any claims, demands, or causes of action for damages to subsurface facilities or obstructions that are not accurately identified or located by Client or others. Client assumes responsibility for air, subsurface, and/or ground pollution and environmental impairment from toxic substances or hazardous materials existing at the Site and Client shall indemnify and defend GMT from any claims, demands, and causes of action of third parties related thereto, except where such claims, demands, and causes of action are caused by the sole negligence or willful misconduct of GMT; it being the intention of the Client to assume any liability alleged to have resulted from GMT'sjoint or concurrent negligence. 12. TERMINATION. In addition to any remedies that may be provided underthis Agreement, GMT may terminate this Agreement: (a) by giving 7 days prior written notice to Client at any time; or (b) with immediate effect upon written notice to Client, if Client; (i) fails to pay any amount when due under this Agreement; (ii) has not otherwise performed or complied with any of the terms of this Agreement, in whole or in part; or (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization, or assignment for the benefit of creditors. 13. RELATIONSHIP OF THE PARTIES. The relationship between GMT and Client that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment, or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever. 14. FORCE RWEURE. GMT shall not be liable or responsible to Client, nor be deemed to have defaulted under or breached this Agreement, for any failure to perform or delay in performance of the Services or any term of this Agreement, when and to the extent such failure or delay is caused by or results from acts beyond GMT's reasonable control, including, but not limited to: (a) acts of God; (b) acts of nature, flood, fire, earthquake, or explosion; (c) war, invasion, hostilities, terrorists threats or acts, riot or other civil unrest; (d) government order, law, or action; (e) embargoes or blockades; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns or other industrial or labor disturbances; (h) acts or omissions of Client or Client's other contractors and/or subcontractors; (h) shortage of adequate power or transportation facilities; (i) delays in transportation or inability to obtain material or equipment; (j) pandemic or epidemic; and (k) other similar acts beyond G MT's reasonable control. IS. GOVERNING LAW. All matters arising out of or relating to this Agreement are governed by and construed in accordance with the internal laws of the State of Washington, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than those of the State of Washington. 16. DISPUTE RESOLUTION. If a controversy or claim arises out of or relating to this Agreement, or the breach thereof (a "Dispute"), and the parties have not been successful in resolving the Dispute through negotiation, the parties agree to attempt to resolve the Dispute through mediation by submitting the Dispute to a sole mediator selected by the parties or, at any time at the option of a party to mediation by the American Arbitration Association {"AAA"), If the Dispute is not thus resolved, it shall be settled by a single arbitrator in final and binding arbitration administered by the AAA in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The mediation and arbitration, including arguments and briefs, shall take place in Bainbridge Island, Washington. The parties also agree that the arbitrator shall have the power to award any remedies, including attorneys' fees and costs {including arbitration costs), available under applicable law, The decision of the arbitrator shall be in writing. GMT and Client agree that each party shall bear its own expenses (including attorney's fees) and an equal share of the expenses of the mediator and arbitrator and the fees of 4 GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS Effective June 1, 2021 the AAA. The parties, their representatives, other participants and the mediator and arbitrator shaI I hold the existence, content and result of the mediation and arbitration in confidence. Nothing in this section shall be construed to preclude any party from seeking injunctive relief in order to protect its rights pending mediation or arbitration. A request by a party to a court for such injunctive relief shall not be deemed a waiver or violation of the obligation to mediate or arbitrate. 17. SURVIVAL. Provisions of these Terms, which by their nature should apply beyond their terms, will remain in force after any termination or expiration of this Agreement including, but not limited to, the following provisions: Sections 3 (Client Obligations), 5 (Confidentiality), b (Work Product), 7 (Insurance), 8 (Indemnity), 9 (Payments & Changes), 10 (Limitation of Liability, it (Environmental Conditions), 15 (Governing Law), j.6 (Dispute Resolution), 17 (Survival), and 18 (Notices). 18. NOTICES. Each party shall deliver all notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a "Notice") in writing and addressed to the parties at the addresses set forth in the Proposal (or to such other address that the receiving party may designate in accordance with this section). Each party shall deliver all Notices by: (a) personal delivery; (b) nationally recognized overnight courier (with all fees prepaid); (c) email of a PDF document (with confirmation of transmission), provided that such notice via email is followed by a copy sent by any of the methods in clauses (a), (b), or (d) of this Section 18); or (d) certified or registered mail (in each case, return receipt requested, postage prepaid). A Notice is effective only (a) upon receipt by the receiving party and (b) if the party giving the Notice has complied with the requirements of this Section. 19. MISCELLANEOUS. This Agreement shall be deemed to have been accepted and agreed by Client upon the first to occur of: (i) GMT's initiation of Services at the verbal or written direction of Client or (ii) Client's written agreement to be bound by these Terms or Client's written acceptance of the Proposal (for which email shal I be sufficient, notwithstanding Section 18 , This Agreement may only be amended or modified in a writing which specifically states that it amends this Agreement and is signed by an authorized representative of GMT. No waiver by GMT of any of the provisions of this Agreement is effective unless explicitly set forth in writing and signed by GMT. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. This Agreement is for the sole benefit of G MT and Client and their respective successors and permitted assigns and nothing herein, express or implied, shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of these Terms. Client shall not assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of GMT. Any purported assignment or delegation in violation of this Agreement is null and void. No assignment or delegation relieves Client of any of its obligations under this Agreement. �.reeKs�aeIq CA quip Prerias� i Y Y 1C IC K k OF -A -low .. f4*4 sop Prepared For Prepared By Craig S. Coker Michael Bryan -Brown Project Manager President and Chief Engineer Coker Composting and Consulting Green Mountain Technologies February 2nd, 2022 5350 McDonald Avenue NE This Quote is Valid for 30 Days Bainbridge Island, WA 98110 GREEN MOUNTAIN T E C H N O L O G I E S COMMERCIAL COMPOSTING SOLUTIONS • A& r - r ---- k+ A"rr4�. Green Mountain Technologies (GMT) is pleased to offer a custom -designed CASP system for Creekside Soils after almost 20 years of history with the Containerized Compost System. We are familiar with the challenges of composting in northern climates and have designed our equipment with cold weather in mind, including sealed enclosures for the blowers. We agree with Coker Consulting that the CASP option is the most viable alternative for your food waste composting program compared with other alternatives due to: 1. Lower operational and maintenance costs than a pipe -on -grade aeration floor. 2. Lower operational and overhead costs than a Containerized Compost System. We have detailed a project approach and delineation of scope between GMT and subcontractors that will provide Creekside with the most cost-effective delivery for the 6-zone CASP system per the specifications in the RFP. We included our state-of-the-art WebMACS web -based data logging controls platform which allows remote access to the operation from any internet enabled device. GMT has developed a detailed 3D model of the system based on the information provided in the RFP. The model will be further refined and will serve as the basis of communication between GMT and the civil en- gineer while coordinating utilities and drainage. GMT will provide all ducting required for the below -grade aeration in PVC, with an option for HDPE if the client or contractor prefers as a part of our bid package. The contractor will perform all the installation based on GMT drawings and support. GMT will also supply and in- stall the blowers and control system, motor contactors, temperature probes, and perform the commissioning and training. We believe GMT is especially qualified to achieve these goals. The senior engineer and designer assigned to this project, Jeff Gage, and I have more than 63 years of combined composting systems -related experience. Together, we have designed over 40 large-scale facilities utilizing ASP or CASP concepts that manage a wide variety of feedstocks in a diversity of climates, including the northern US and Canada. The project team will also include key team members who have supported Michael and Jeff on a number of these projects. pjkt��. �,, I President & Founder, Green Mountain Technologies Creekside Soils CASP Equipment Proposal I 2 February 2nd, 2022 GMT proposes the use of a 6-zone, 6-blower below -grade aeration system per RFP specification. Each one horsepower blower is controlled by temperature feedback from a single probe inserted into each pile. The aeration system is positive only, with an insulating Biofilter layer per MN 7035.2836 regulations: The static aerated pile method for reducing pathogens consists of an unconfined composting process in- volving mechanical aeration of insulated compost piles. Aerobic conditions must be maintained during the compost process. The temperature of the compost pile must be maintained at 55 degrees Celsius for at least seven days. (MN 7O352836.512) The WebMACS control system will use temperature feedback to meet the 7-day PFRP time/temperature requirements and automatically record and log the temperature data in graph and table format. More infor- mation regarding the WebMACS system is provided on the following page. Creekside Soils CASP Equipment Proposal I 3 February 2nd, 2022 r3r win 7'-5" 1'Y - 2' ®®®®®®®®®®®®®®®®®®® ®®® Him ®®®®®®® Him ® Him ® Him ®®® ® ® 3' ® ® 6' ® ® -4'.f ® ® 2 6' ® 2 4" ® ® 21' ® ® 5 �_12'� Aeration Cleanout (2 per Zone) — Aeration Hole (12 per Zone) �Wl "Uo� Aeration Blower Enclosure Concrete Pressure Trap Below -Grade Aeration System Creekside Soils CASP Equipment Proposal I 4 February 2nd, 2022 7 l & ti 16 4L The WebMACS control system uses a programmable controller that hosts a web page interface for all user communications. The web page is accessible on any web -enabled device and is available via the internet, provided that the WebMACS controller is connected to the web. The WebMACS controller provides real time control of the compost process via temperature feedback from an array of wired or wireless temperature probes inserted into the compost zones. The modular design can be readily expanded in the future, should Creekside Soils expand their CASP operations with additional bunkers. WebMACS aeration control firmware is robust, emphasizing simplicity for the user experience. Each bunker is controlled by a single blower and temperature probe. When the compost exceeds a temperature setpoint, the blower turns on, delivering oxygen to the microbes and cooling the piles until the temperature returns to the setpoint. When the temperature is below the setpoint, the blowers revert to a user defined on/off duty cycle. This tried-and-true design requires minimal calibration, redundancy, and low power cost, making it a great solution for Creekside's needs. Blower 1 wospa 40.23%-w+ ®0 Creekside Soils CASP Equipment Proposal I 5 February 2nd, 2022 ZP r% y r uon riot GMT proposes using a high velocity sparger aeration floor (picture below). The design utilizes our patented nozzles to reduce clogging and improve aeration, improving throughput and reducing operational expens- es. The aeration floor is divided into six 12' by 20' bunkers each with its own below -grade aeration system composed of a 6" header, two 4" laterals, 12 of GMT's patented aeration floor nozzles, and two threaded cleanouts for flushing the lines. Ducting can be delivered in either welded DR-17 HDPE or Sch. 40 PVC and is connected by standard fittings to the manifold and blower to simplify installation. The below -grade pip- ing is installed in the subgrade and backfilled with pea gravel. The nozzles are embedded in 6 to 8 inches of concrete per civil engineer's design. Comparable sparger systems designed by GMT have been in service for almost 30 years. GMT highly recommends stabilizing and reinforcing eco-block walls if they are stacked higher than two blocks. At these heights, there is a higher risk of blocks being knocked over, resulting in damage to equip- ment or serious injury to operators. To improve connection stability, GMT also suggests overlapping blocks to improve the overall strength of the bunker. finish concrete remove cap drill S/8" drill 718" Creekside Soils CASP Equipment Proposal I 6 February 2nd, 2022 Blower 2" Pipe to Pressure Trap Enclosure 6" Aeration Header 4" Aeration Lateral 3" Aeration Lateral 2" Cleanout Lateral Aeration Nozzles 1-1/2" Nozzle Branch 3 Aeration Zones per Pressure Trap Concrete Q Grade Level Aeration Nozzle Cleanout Cap Screws into Cleanout Adapter Creekside Soils CASP Equipment Proposal I 7 February 2nd, 2022 AT,a 4 AL L r<s k Each zone will be controlled by its own 1 HP 7AT93 Dayton high-pressure blower, creating redundancy and simplifying the ductwork for the system. The blower can deliver up to 5 CFM/Yd3, which is sufficient for peak aeration demand for food waste in a small bunker. The blower operates up to 7.0" W.C. static pressure as shown in the blower curve and targets the system design of 277 CFM at 5" W.C. The blower motors are totally enclosed, fan cooled (TEFC) industrial steel blowers. The blowers can be deliv- ered with either single or three-phase motors per final design. Each blower comes installed in its own alumi- num diamond plate enclosure to keep out weather and extend the life in the harsh weather of Minnesota. 8 82 r s sA 3 5— 2A x � � i o t 4 S — 12 u 0O � 1 .. ... �... ... I ... ...Y.. ... .. ..�.. I ... ;. .. ... ... ... ... ... ... i ... ' .. OA 0 I 0 0 YO0 GOO !00 !00 1,000 1M0 I'M OM Creekside Soils CASP Equipment Proposal I 8 February 2nd, 2022 The following steps outline the operations of the proposed CASP facility: 1. Blend and grind received food waste with green waste, bringing the moisture content to approxi- mately 55-60%. 2. Turn on the blower in the zone you are loading to prevent clogging during loading. 3. Load the ground feedstocks into the zone, covering with 6-12" of insulating Biocover. 4. When you have finished loading, insert the temperature probe and start a batch on WebMACS. Data will begin logging and the system will automatically control the batches to meet PFRP, VAR, and any other user -defined setpoints. 5. After 3-4 weeks on air, end the batch on WebMACS, remove the probe, and then move the material to Windrows for curing. The batch file will be saved on the WebMACS hard drive, accessible for a hard- wired or over -the -air download. It may also be viewed anytime on the WebMACS interface. 6. After two to three months of curing, the stabilized compost is ready to be screened and sold. Alternately, you can unload and remix each bunker after 2 weeks of aeration and re -wet and reload into a new zone. This fluffs the material, improving oxygen distribution and re -wets all surfaces. Creekside Soils CASP Equipment Proposal I 9 February 2nd, 2022 9 Leachate and stormwater amounts vary seasonally, climatically, and with the number of filled bunkers and the method of wetting the piles. We have found that feedstocks generate anywhere from 0-10 gallons per cubic yard over a 3-week cycle. Assuming that your feedstocks generate an average of 5 gallons per yard per month of leachate during the colder months and none during the summer, we created the following sea- sonally adjustzed total wastewater flow estimates. Month Low (°F) High (`F) Humidity M Rainfall (in) Leachate Generation (GaIJYd) Pad Size (Yd2) Processing Capa3ity (Yd) Feedstock Leachate Generation t 01, Rainfall Stormwater Generation (Gal) Total Stormwater Generation (Gal) Jan 4 22 77 1.0 5 444 427 2,133 2,594 4,727 Feb 12 28 76 0.8 5 444 427 2,133 1,970 4,103 Mar 24 41 73 1.9 5 444 427 2,133 4,639 6,772 Apr 36 57 62 2.3 5 444 427 2,133 5,761 7,894 May 49 70 61 3.2 0 444 427 0 8,080 8,080 Jun 58 79 66 4.3 0 444 427 0 10,823 10,823 Jul 63 83 65 4.0 0 444 427 0 10,075 10,075 Aug 61 80 68 4.1 0 444 427 0 10,100 10,100 Sept 51 71 68 2.7 0 444 427 0 6,708 6,708 Oct 39 58 65 2.1 5 444 427 2,133 5,262 7,395 Nov 25 40 75 1.9 5 444 427 2,133 4,838 6,971 Dec 11 26 79 1.2 5 444 427 2,133 2,893 5,026 Avg. 36 55 70 2.5 3 444 427 1,244 6,145 7,390 Based upon these rough calculations, it seems that, on average, the facility will generate about 7,000 gallons of wastewater per month, showing strong seasonal variation. It should be noted that the above calculations do not take into consideration snowfall or snow melt, which could create a strong surge of stormwater in the late winter and spring, and only provide a rough estimate of evaporative loses and feedstock leachate gen- eration. These assumptions and calculations should be reviewed by your civil engineer prior to sizing your drainage system. Creekside Soils CASP Equipment Proposal 110 February 2nd, 2022 Client's Requirements Olympic Organics is an ASP composting facility processing up to 22,000 tons per year (TPY) of food and yard waste in Hansville, WA. Jeff West, the owner of Olympic Organics, needed an automatic aeration con- trol system that would control blowers and record temperatures while allowing off -site access to data and controls to reduce his labor costs. The goal was to automate his system so that an operator would not have to make daily adjustments to blower timers, take temperatures, or go to the site on weekends to record data. GMT's Solution GMT installed a 5-zone WebMACS controller for the composting facility. The system replaced the cycle timers and connected directly to the existing motor contactors to start and stop blowers. The WebMACS stores up to 16,000 temperature samples per zone and is accessed by the operator's smart phone while in the loader or anywhere on -site. The system sends out email and text alarms when the temperatures are too high or too low. Once Olympic Organics has internet access at the controller, the WebMACS can be accessed through the internet connection by any computer that has the secure log -in password. Reference Information 22,000 TPY ASP Facility, 2016 Jeff West — Director of Operations jeff@olympicorganics.net 360.689.8127 Creekside Soils CASP Equipment Proposal I 11 February 2nd, 2022 Client's Requirements Revolution Organics, a composting company in British Columbia (BC), Canada, contacted GMT to discuss the construction of a new facility, Boost Organics, that is closer to the Vancouver metro area to reduce trucking time. Located in Abbottsford, BC, the group planned to mix food waste from the Vancouver metro area with cow manure from on -site farming operations to make a high quality compost product. GMT's Solution To process these feedstocks, Green Mountain Technologies (GMT) designed an 8-Zone CASP system under a roof structure on a farm. The system currently uses positive aeration only, but is designed for the possibility of negative aeration in the future. GMT also provided design input and blowers, dampers, and a WebMACS controller. The design and installation of this facility created a satellite composting site and reduced the trucking time for food waste from the Vancouver metro area. Reference Information 25,000 TPY CASP Facility, 2019 Dave Vanderwall — Owner dave@cedarwal.ca 604.302.2946 Creekside Soils CASP Equipment Proposal ✓� I 1� February 2nd, 2022 Client's Requirements Stickland Farms produces canola and corn for feeding operations in Red Deer, Alberta, Canada. As long-time composters, they wanted to take their operation to the next level by bringing in food waste from off -site. They began to experience odor problems due to the existing facility not being designed to handle high ener- gy food waste feedstocks. GMT's Solution GMT redesigned their existing ASP facility to accommodate food waste by increasing aeration rates, install- ing larger blowers, and a adding state-of-the-art control system for temperature regulation. GMT also assist- ed Stickland Farms in expanding their existing operations to accommodate 45,000 TPY. GMT designed the layout, calculated capacity, and installed a 10-zone pipe -on -grade system with one blower per zone. The de- sign also includes a WebMACS controller so they can monitor and control their composting system remotely. Reference Information 45,000 TPY ASP Facility, 2020 Brian Stickland — Owner brianstickland@hotmail.com 403. 506.3891 Creekside Soils CASP Equipment Proposal I 13 February 2nd, 2022 Client's Requirements Washington State University in Pullman, WA composts agricultural and food waste and creates two prod- ucts, sterile bedding and compost for landscaping. In 2007, Washington State University contacted GMT to convert their existing windrow facility to an ASP facility to reduce odors and expand capacity of their exist- ing operation. GMT's Solution GMT's ASP design included an 8-zone system, 90'x120' ASP pad to process 12,000 TIDY of material. The ex- isting ASP manifold and control system was expanded, adding an additional 4 zones to increase capacity to 20,000 TIDY, and another zone exclusively for mortality composting was added. The ASP process requires no turning and less land area than their old windrows. The cost of the ASP equipment was less than $200,000 and was installed in 3 days. Reference Information 20,000 TIDY ASP Facility, 2007 Richard Finch — Manager finchr@wsu.edu 509. 335.9088 i Creekside Soils CASP Equipment Proposal 114 February 2nd, 2022 W Per the RFP, GMT is proposing the following scope of services included in this proposal: Provided by GMT Equipment • All Ducting for Aeration System • 6 Steel 1 Hp Aeration Blowers • 6 Zone WebMACS Control System • 6 Temperature Probes 6 One Horse Power VFD's Construction • Supervise Installation of Aeration System Electrical • Terminate Low Voltage wiring • Commission Control System • Install and Debug Software Commissioning and Training • System Start -Up and Calibration • Performance Testing Operators Training • Operations Manual • One Year of Customer Support Not Provided by GMT Site Surveying • Geotechnical Assessment • Storm water Design • Retention Pond Sizing • Design Drainage Ducting Construction • Facility Grading • Excavation and Backfilling • Aeration and Stormwater System Assembly • Provide Manhole and Vault for Pressure Trap • Installation of Pressure Trap • Construct Retention Pond • Purchase and Install Ducting for Drainage • Concrete and Asphalt Pouring • Concrete Bunker Fco-Blocks • Drill Aeration Floor Nozzles Electrical • Service Sizing and Distribution Plan • Lay Conduit and Pull Wire • All Line Voltage 3-Phase Wiring • All AC Terminations • Mount Panels and Junction Boxes • Install, Wire, and Terminate Blowers L�� Creekside Soils CASP Equipment Proposal February 2nd, 2022 is Bill Materials Quantity Part number - Description Vendor 1 115 — 2' x 2' x 6' Concrete Full Block Client 2 2 — 2' x 2' x 4' Concrete 2/3 Block Client 3 4 — 2' x 2' x 2' Concrete 1/3 Block Client 4 2 — 36" Concrete Pressure Trap Client 5 — — Misc. PVC Drainage Piping Client 6 6 Dayton 1 HP 7AT93 Blower GMT 7 6 Sisneros Square to Round Blower Transition GMT 8 6 Amazon Yaheetech Blower Box GMT 9 1 Home Depot Blower Box Reflectix GMT 10 6 20091<5 Blower Box Vent GMT 11 6 — Wired Temperature Probe GMT 12 6 — Electrical Junction Box GMT 13 1 — Main Control Panel GMT 14 12 2389K29 3" PVC 90 Degree Elbow GMT 15 6 2389K24 3" PVC Offset Tee GMT 16 1 Ferguson 3" x 120' Sch. 40 PVC GMT 17 1 Ferguson 4" x 84' Sch. 40 PVC4" Sch. 40 PVC GMT 18 1 Ferguson 3" x 135' Sch. 40 PVC GMT 19 1 Ferguson 2" x 66' Sch. 40 PVC GMT 20 1 Ferguson 6" x 48' Sch. 40 PVC GMT 21 1 Ferguson 1 1/2" x 24' Sch. 40 PVC GMT 22 12 Ferguson 6" - 4" Pipe Saddle GMT 23 24 2389K46 4" - 2" PVC Offset Reducer Tee GMT 24 18 2389K76 4" - 3" PVC Reducer GMT 25 48 2389K14 3" - 1 1/2" PVC Reducer Tee GMT 26 12 2389K75 3" - 2" PVC Reducer GMT 27 12 23891<28 2" PVC 90 Degree Elbow GMT 28 24 2389K73 2" - 1 1/2" PVC Reducer GMT 29 72 GMT AP Nozzle A - 003 GMT 30 12 9359T22 2" Cleanout Plug GMT 31 12 1608T209 Male Socket, Female Threaded GMT 32 12 23891<69 2" Female Pipe Connector GMT 33 6 4880K121 6" PVC Tee GMT 34 6 4880K111 6" PVC 45 Degree Elbow GMT 35 6 488OK688 6" - 4" PVC Reducer GMT 36 6 488OK141 6" PVC Endcap GMT 37 6 4511K83 6" Fernco GMT Creekside Soils CASP Equipment Proposal 116 February 2nd, 2022 GMT will deliver their equipment within three months of receiving necessary contracts and payables. If work- ing on a tight timeline, we suggest initiating with our team a month before starting construction to iron out the site design and prepare construction drawings. We will source all the ducting locally, working with the construction team to time its arrival. After our equipment (controls, probes, and blowers) is delivered, the construction team will need at least one week to install it before we can commission the system. For more details on our timeline, see the Gantt chart below. Month t Month 2 Month 3 Month 4 Month 5 30-5 6-12 13-19 20-26 27-3 4-10 11-17 18-24 25-31 1-7 8-14 15-21 22-28 29-4 5-11 12-18 19-25 26-2 3-9 10-1f Q Creekside Soils J-Finalize Model "-`.Design Revi anstruttico Drawings � rder Equipmerti� raductian I 35np Equipmen I . 5ite Construction ti................................................................................................................................................ . Training and Commissioning Creekside Soils CASP Equipment Proposal I 17 February 2nd, 2022 Green Mountain Technologies Quote for Creekside Soils Mechanical Components (Including shipping) 6 7 HP 7AT93 Dayton Blower 6 Blower Boxes Ducting For 6 Aeration Zones Control System (Including shipping) 6 Zone WebMACS 6 Wired Probes 6 One Horse Power VFD's Consulting Work with Contractors to Integrate our Equipment Commissioning and Training 80 hours of commissioning and training 7 Year of Customer Support Total Cost $99,514 Creekside Soils CASP Equipment Proposal February 2nd, 2022 Given that the facility is open 5 days per week, we estimate one FTE employee would be required for the following CASP operations with the following assumptions: 1. Grinding and delivery of green waste will not be the responsibility of the CASP operator and as such is not included in our costing. 2. The CASP operator will receive and sort food waste 5 days per week and mix/load the bunkers. 3. The control system automates the daily operation and record keeping. 4. The delivery of the compost for curing, screening, and marketing would be the responsibility of others. Based on the aforementioned assumptions the following price breakdown was generated: CREEKSIDE CASP OPERATING COST ESTIMATE Labor & Energy Cost Inputs Operator Fully Burdened Cost per Labor Hour $28 Cost per KWHr $0.75 Loader O&M per hour $95 Operations Budget Hours/Bunker Yearly Operator Hours 8.00 Management Hours 7.00 Loader hours 200 Cost/Ton Bulking Agent Cost $0 % On/Day Flectric Power 20% Flectric Power Support Equipment 201: Hrs/Load Bucket Loader/Tractor Fuel 2 Maintenance Per Zone ASP Yearly Replacement Parts ASP Yearly Maintenance Hours Total Costs Cost/Year Operation $44,888 Maintenance $4,792 Total Estimated Yearly b&M Audget $49,080 Loads/Year Labor Cost 705 $23,520 705 $2,940 705 $79,950 % Mix Tons/Year Cost/Year 5096 $0 Average HP KWHr/Year Cost/Year 700 's3 $368 0.00 $0 Loads/Year Fuel/Hour Cost/Year O� $1050 Extended Labor Cost $3,,000 224 $1,792 Creekside Soils CASP Equipment Proposal February 2nd, 2022 Michael Bryan -Brown is a Civil and Environmental Engineer with expe- rience in compost systems design, biosolids management and waste- water treatment design. He is president and founder of Green Moun- tain Technologies, a leading manufacturer of composting equipment in the U.S. Responsibilities include overall management of the company, product design and prototyping. He is holder of 3 U.S. patents in the field of composting and is the author of numerous papers. In addi- tion to his work with Green Mountain Technologies, he has worked as consultant to the City of New York Department of Sanitation for food waste composting. Previously, he worked on EPA grants to investigate on -site composting systems for organic wastes. As consulting engi- neer to the NYC Department of Environmental Protection, he was con- tracted for the assessment of odor impacts from 8 proposed sludge composting facilities. Responsibilities included the characterization of odor emissions from compost processes and the preliminary design of ventilation and odor control equipment for all facilities. Education Registration and Professional Affiliatior. Tufts University Water Environment Federation B.S. Civil Engineering (BSCE) The US Composting Council Clean Islands International Washington Organic Recycling Association Industry Experience Northwest Biosolids Management Association Green Mountain Technologies 7992 — Present EIT Engineering Exam 1991 Stone & Webster 7997 — 7992 Current OSHA Health and Safety Training Metcalf & Eddy 7989 — 7997 UL Certification for Electrical Control Panel Assembly Relevant Project Experience Stickland Farms Ltd. I Alberta, Canada I 2019-Present ASP system with pipes on grade processing 65,000 TPY of biosolids and food waste Allwood Recyclers I Troutdale, OR I 2018-Present ASP system with pipes at grade currently processing 25,000 TPY Recology I Tracy and Sacramento, California I 2018-Present ASP system processing 520,000 TPY for two facilities in California Recology I Aumsville and North Plains, Oregon I 2019-Present Below grade ASP reverse airflow expansions processing 700,000 TPY, under construction Salinas Valley Waste Authority I Salinas, CA 1 2018 - Present ASP installation and startup, operations manuals, permits and marketing support for processing 60,000 TPY Vision Recycling I Livermore, California 1 2017-2019 ASP design and system installation processing 40,000 TPY of food waste and green waste Dirt Hugger I Dallesport, Washington I 2017-Present Design for Turn Aerated Pile (TAP) including reversed aeration and biofiltration processing 65,000 TPY Grimm's Fuel I Tualatin, Oregon I 2019-Present Designed and built ASP reversed aeration system processing 60,000 TPY Creekside Soils CASP Equipment Proposal 120 February 2nd, 2022 Jeffrey Gage is a Certified Composting Professional by the U.S. Com- posting Council and has more than 35 years of composting experience at all levels of development. He provides large-scale compost system design, permitting, and development for Green Mountain Technolo- gies. He has currently completed 26 composting systems of various sizes with GMT and diverted more than 1.8 million tons of organic waste per year. He has numerous awards from local and national composting entities including the US Conference of Mayors in 1995, and the Envision Award for the City of Phoenix Composting Facility in 2017. He has helped with numerous GMT patents for his innovative aeration systems and is renowned for his odor control studies and fea- sibility assessments. He has published his composting research, served on composting association boards, and has earned multiple awards and certifications. He founded and was a lead instructor for the WORC Compost Facility Operator Training. In addition to working at GMT, he teaches composting fundamentals throughout the world including the UK, the Middle East, and the Americas. Education Registration and Professional Affiliation The Evergreen State College Certified Composting Professional, The Certification B.A. Advanced Environmental Studies & Energy Commission of the US Composting Council Systems Board of Directors, Washington Organic Recycling Council (WORC) Industry Experience U.S. Composting Council Board Green Mountain Technologies 2072 Present Member of Professional Credentials Committee and 2008 - 2072,2002 Compost Design Services 7984-7987 Lenz Enterprises 2008 — 2011 Swanson Bark and Wood Products 2005-2008 Pierce County Composting 7987-2002 Relevant Project Experience Legislative and Environmental Affairs Committee Board of Directors, Washington State Recycling Assn. (WSRA) Board of Directors Compost Council of Oregon Stickland Farms Ltd. I Alberta, Canada I 2019-Present ASP system with pipes on grade processing 65,000 TPY of biosolids and food waste Allwood Recyclers I Troutdale, OR I 2018-Present ASP system with pipes at grade currently processing 25,000 TPY Recology I Tracy and Sacramento, California I 2018-Present ASP system processing 520,000 TPY for two facilities in California Recology I Aumsville and North Plains, Oregon I 2019-Present Below grade ASP reverse airflow expansions processing 700,000 TPY, under construction Salinas Valley Waste Authority I Salinas, CA 1 2018 - Present ASP installation and startup, operations manuals, permits and marketing support for processing 60,000 TPY Vision Recycling I Livermore, California 1 2017-2019 ASP design and system installation processing 40,000 TPY of food waste and green waste Dirt Huggor I Dallesport, Washington I 2017-Present Design for Turn Aerated Pile (TAP) including reversed aeration and biofiltration processing 65,000 TPY Grimm's Fuel I Tualatin, Oregon I 2019-Present Designed and built ASP reversed aeration system processing 60,000 TPY Creekside Soils CASP Equipment Proposal I 21 February 2nd, 2022 Rik Langendoen has more than 30 years of experience managing a wide range of environmental consulting and engineering projects ranging in complexity and size - from several thousand to more than $5 million in fee. He acts as a strategic partner for his clients, helping them to identify and establish goals at the outset of the relationship and ensuring success in reaching financial and other metrics through to project completion. Rik's technical expertise includes engineering geology, environmental geology, surface water, groundwater, and per- mitting, including environmental approvals, as applicable to the design and construction of wide variety of small to large structures and me- chanical systems founded on or within soil. He has also managed proj- ects that evaluated and/or implemented the use of technologies such as phytoremediation and bioremediation to address impacted soil. His clients have included relatively small to Fortune 500 companies, and both local to federal governments. Rik also has extensive experience with troubleshooting and turnarounds of projects and programs. Educatior Geology Washington State University Industry Experience Green Mountain Technologies 2027 - Present Technical Consultant/Prof. Manager 2079 2027 AECOM 7989 2079 (Project Management Trainer 1992 - 2012, and Proj- ect Manager of the Year - 2007) Registration and Professional Affiliatior WA Licensed Professional Geologist, Engineering Geologist and Hydrogeologist #502 AK Certified Professional Geologist #7874 American Institute of Professional Geologists #234 Relevant Project Experience Holland Partner Group I Seattle, WA 12017 Installation and operation of in -situ mechanical treatment system Kinder Morgan I Whatcom County, WA 12016 Evaivated in -place treatment of soil using a variety of oxidation -based technologies Tech Resources I Ferry County, WA 12015 Complex field program in support of remedial design (Client regonized for exceptional execution) Chevron Wheatstone I Western Australia 12011 Complex field program with highest level of focus on safety, data quality, schedule BHP Billiton I Western Australia 12011 Numerical modeling of sun`ace water/groundwater interaction and water balance in support of EIS Rio Tinto I Chelan County, WA 11997 - 2009 Evaluated the feasibility of using organic feedstock to bio-remediate impacted soil NAVFAC Northwest I Jackson Park, WA 12008 Evaluated the feasibility and implemented phyto- and bio-remediation of soil Creekside Soils CASP Equipment Proposal 122 February 2nd, 2022 • w Orion Black -Brown has worked for Green Mountain Technologies since April 2019. He brings his attention to detail and mechanical background to project management, helping clients successfully design and build Aerated Static Pile, Turned Aerated Pile, and Containerized Compost Systems. He also manages GMT's draft- ing team, does mechanical R&D, and helps with business devel- opment. Prior to working at GMT, Orion spent 3 years in new product development supporting startups, universities, and Fortune 500 companies as they brought their ideas to life. These experiences taught him the importance of transparency, empathy, and or- ganization to successful project execution, and he brings these lessons to his work at GMT. Education University of Washington B.S. Mechanical Engineering (BSME) Industry Experience Green Mountain Technologies 2079 — Present Synapse Product Development 2078-2079 University of Washington 2077-2078 Queensland University of Technology 2076 Registration and Professional Affiliation The US Composting Council Puget Sound Restoration Fund Karam Foundation Brightcourse Foundation Relevant Project Experience Recology North Plains I North Plains, OR 12018-Present Managed CAD, equipment and installation for a 90,000 TPY facility Grimms Fuel Company I Tualatin, OR 1 2018-2020 Designed manifold system and assisted with installation of low volatage systems and belimos Recology Blossom Valley Organics North I Vernalis, CA 12018-Present Installed and tested the composting system and currently managing equipment procurement for Phase 2 Unrivaled Organics I Sherwood, OR 12020 - Present Designed and project managed the construction of the first cone composter processing 3,000 TPY Sun Peaks I Sun Peaks, BC, Canada 12020 - 2021 Designed, managed and commissioned a 7500 TPY expansion to existing Containerized Composting Systems Chinese University of Hong Kong I Hong Kong, China 12019 Designed and installed site -built Earth Flow system Creekside Soils CASP Equipment Proposal 123 February 2nd, 2022 Michael T. White had been a 3D modeler for Green Mountain Technologies for 23 years and has provided detailed models for more than 40 ASP composting facilities and more than 20 Earth Flow Systems. He is an instrumental part of the work at Green Mountain Technologies producing CAD drawings for GMT's clients. He has developed an extensive library of CAD designs that he can use to plug and play for existing clients. He has also worked for architectural firms creating 3D models for construc- tion. He also has experience in machine and metal fabrication and construction. Education Michael White's expertise in CAD is self-taught. Industry Experience Green Mountain Technologies 1997 - Present LineSync Architecture 2002 -1997 Bartels Architecture 2004 - 2014 Thorium - 2015 Relevant Project Experience Stickland Farms Ltd. I Alberta, Canada 1 2019 - Present Contructed 3-D Model that includes fabrication drawings and Bill of Materials for 65,,000 TPY facility Allwood Recyclers I Troutdale, OR 1 2018 - Present Contructed 3-D Model that includes fabrication drawings and Bill of Materials for25,000 TPY facility Recology I Tracy and Sacramento, California 1 2018 - Present Completed CAD drawings for 520,000 TPYASP System Recology I Aumsville and North Plains, Oregon 1 2019 - Present Completed CAD drawings for below grade ASP reverse airflow expansions for 700,000 TPY facility Salinas Valley Waste Authority I Salinas, CA 1 2018 - Present Constructed CAD drawings, fabrication drawings and Bill of Materials for 60,000 TPY facility Vision Recycling I Livermore, California 1 2017 - 2019 Completed CAD drawings for below grade aeration system and processing area for 40,000 TPY facility Dirt Hugger I Dallesport, Washington 1 2017 - Present Completed drawings for Turn Aerated Pile (TAP) system including reversed aeration and biofiltration Grimm's Fuel I Tualatin, Oregon 1 2019 - Present Completed drawings for reversed aeration system processing 60,000 TPY Machine Shop, Metal Fabrication and Construction 1 1984 - 2021 Completes ongoing projects as a machinest and metal fabricator Creekside Soils CASP Equipment Proposal 124 February 2nd, 2022 Ll :� 5- The terms and conditions of GMT's equipment are provided at the end of the proposal under the heading Terms and Conditions. In the event of a conflict between the terms of this proposal and those outlined under Terms and Conditions, the terms of this proposal shall control. This proposal will remain valid for 30 days from the date listed in the footer. If the terms of this proposal are acceptable, please sign below and return to GMT. A fully executed copy will be returned to you for your files. If you choose to fax or email a copy of this authorization page, please also return the signed original copy via U.S. Mail. GMT will provide these services using its reasonable best efforts consistent with the level and skill ordinarily exercised by members of the commercial composting -related engineering and consulting profession currently practicing under similar conditions. ACCEPTANCE: This Agreement is accepted by Owner this day of 2022. Signature By: Title Creekside Soils CASP Equipment Proposal (Si 25 February 2nd, 2022 1. Payment Terms, Terms of payment are 50% down and the balance due Net 30 upon delivery unless otherwise noted in writing. Any past due payments will be subject to a service charge and shall bear interest at the highest rate allowed by law in the State of Washington. Customer agrees to pay all costs including reasonable collection costs, attorney's fees and expenses related to the enforcement of payment obligations hereunder. 2. Warranties. (a) For the period of one year after delivery of the Product and specified equipment, Seller warrants that the product will be free from defects in workmanship and materials. This warranty is non-transferrable and applicable to the original Buyer only. (b) Seller's responsibility, and Buyer's remedy under this warranty, is limited to the repair or replacement, at Seller's option, of the component(s) that are determined by Seller to be defective. Buyer shall give Seller written notice of the alleged defect within the one-year warranty period. This warranty includes repair or replacement of parts but does not include labor associated with diagnosing, repairing, removing or installing components. (c) Defective components shall be held for Seller's inspection and/or returned to Seller at Seller's request. (d) If Seller finds that Product, or any portion of it, is defective due to Seller's workmanship and materials, Seller shall be responsible for providing Buyer with replacement components, including paying shipping charges associated with the defective component. If Seller finds that Product, or any portion of it, is not defective, Buyer shall be responsible for all costs associated with investigating and repairing or replacing the component, including all shipping charges. (e) This warranty shall in no event apply and shall be null and void and unenforceable if the alleged defect in the Product is the result of 1) abuse or misuse of the Product; or 2) improper operation which is not in accordance with any instructions in any appropriate operations and/or maintenance manual of Seller provided to Buyer; or 3) customary wear and tear of designated wear components, such as: auger flighting, auger shoes, auger bearings and plastic slide blocks. With respect to purchased components such as: electric motors, gearboxes, blowers and proximity switches, GMT makes no warranty whatsoever and buyer shall rely solely upon the existing warranties, if any, for the respective manufacturers thereof. (f) THE WARRANTY SET FORTH IN THIS SECTION IS EXPRESSLY MADE IN LIEU OF ALL OTHER WARRANTIES, AND SELLER HEREBY EXCLUDES ALL OTHER WRITTEN OR IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF FITNESS AND MERCHANTABILITY. THIS WARRANTY SHALL NOT BE EXTENDED, ALTERED, OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY SELLER AND BUYER. The remedies provided herein are exclusive and Seller shall have no responsibility with respect to this order for any incidental, consequential or special damages of any kind. 3. Inspection and Acceptance. Products shall be finally inspected and accepted within five business days after their arrival at the Buyer's facility. Except for warranty claims, all claims whatsoever must be asserted in writing by Buyer within said five- day period or they are waived and the Product shall be deemed to conform with the terms of this Quotation and any agreed -upon specifications. There shall be no revocation of acceptance. Products may be rejected only for defects which constitute substantial noncompliance of the Products with any agreed -upon specifications, and Buyer's remedy for lesser defects shall be those provided under the warranty provisions below. 4. Changes. After Buyer signs this Quotation or issues a purchase order, any changes to the Product or its specifications may be made solely upon Seller's written consent and (a) at a charge which Seller shall determine is sufficient to cover its additional costs and (b) with a change in delivery schedule necessary to cover related delays. 5. Delays. Seller will not be liable for any delay in the performance of orders or contracts, or in the delivery or shipment of goods, or for any damages suffered by Buyer by reason of such delay, if such delay is, directly or indirectly, caused by, or in any manner arises from, fires; floods; accidents; civil unrest; acts of God; war; governmental interference or embargos; Creekside Soils CASP Equipment Proposal 126 February 2nd, 2022 �i NW strikes; labor difficulties; shortages of labor, fuel, power, materials, or supplies; transportation delays; or any other cause or causes beyond its control. 6. Taxes. Prices on the specified Products are exclusive of all city, state, and federal excise taxes, including, without limitation, taxes on manufacture, sales, receipts, gross income, occupation, use, and similar taxes. Buyer shall pay all federal, state, and local sales, use, property, excise, or other taxes imposed on or with respect to the sale of Product hereunder, except taxes levied on Seller's net income. Whenever required, any tax or taxes will be added to Seller's invoice as a separate charge to be paid by the Buyer. 7. Limitation of Liability. IN NO EVENT SHALL SELLER BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, OR SPECIAL DAMAGES OF ANY KIND WHATSOEVER IN CONNECTION WITH THIS SALE. IN NO EVENT SHALL SELLER BE LIABLE FOR ANY DAMAGES OF ANY KIND IN CONNECTION WITH THE SALE OR USE OF ANY PARTICULAR PRODUCTS SOLD HEREUNDER IN AN AMOUNT GREATER THAN THE PURCHASE PRICE OF THE PRODUCT. 8. Customer Indemnification. Customer shall defend, indemnify and hold harmless GMT and its employees and agents against all sums, costs, liabilities, losses, suits, actions, penalties, fines, interest and other expenses (including reasonable attorney's fees) that GMT may incur that result from (a) Customer's ownership, maintenance, transfer, transportation or disposal of the goods sold hereunder, (b) Customer's use of the goods sold hereunder, (c) Customer's failure to test the goods or assure itself that the goods are fit for Customer's intended purpose, (d) any infringement or alleged infringement of the intellectual property rights of others arising from Customer's specifications, and (e) Customer's violation or alleged violation of any federal, state, county or local laws or regulations, including without limitation, the laws and regulations governing product safety, labeling, packaging and labor practices. 9. Governing Law. This Sale shall be governed by the laws of the State of Washington. 10. Dispute Resolution. Any dispute arising out of, related to, or regarding this sale will be resolved by submission of the dispute to a sole arbitrator. The parties shall attempt to mutually agree on an impartial arbitrator. If the parties cannot agree on an arbitrator within five business days, either party may apply to King County Superior Court for the appointment of an arbitrator by a King County Superior Court Judge. The arbitration proceedings shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA") then in effect, except that the arbitration shall not be administered by the AAA. Any judgment upon the arbitrator's award shall be entered in the Superior Court for King County, and the award shall be final and binding and enforceable under the terms of the Washington Arbitration Act. The Arbitrator will determine which party is the most prevailing and order the other party to pay the most prevailing party's arbitration costs and reasonable attorneys' fees. All costs and fees incurred on appeal shall be awarded to the most prevailing party on appeal. Arbitration costs awarded to the most prevailing party shall include the fees and administrative costs payable to any arbitrator, as well as expert witness fees. Each party shall advance one half of the arbitrator's initial fee deposit, with the deposit to be awarded as part of the costs of the proceeding to the most prevailing party. 11. Materials Escalation Clause. If, during the performance of this contract, the price of steel significantly increases, through no fault of contractor, the price of steel shall be equitably adjusted by an amount reasonably necessary to cover any such significant price increases. As used herein, a significant price increase shall mean any increase in price exceeding 5% experienced by contractor from the date of the contract signing. Such price increases shall be documented through quotes, invoices, or receipts. Where the delivery of steel is delayed, through no fault of contractor, as a result of the shortage or unavailability of steel, contractor shall not be liable for any additional costs or damages associated with such delay(s). Creekside Soils CASP Equipment Proposal 127 February 2nd, 2022 1; engineeredCOMPOSTSYSteMS BUDGETARY ESTIMATE Client: Creekside Composting Facility: Hutchinson, MN By: Baraka Poulin Date: 2/3/2022 Basis. Aerated static pile compost system featuring ECS CompTroller automated control system and below grade sparger pipe aeration floor. System shall be expandable from 1,500 to 3,000 TPY. Phase 1 fan, duct and controls are sized to accomodate Phase 2. Throughput Throughput (365 d/yr) Density Aeration Type Aeration Floor Type Pile Arrangement Retention Time Independent Aeration Zones Fan Groups Zone Width Zone Length Pile Depth Cover Depth Time to Fill Zone Total System Mix Volume Aeration Rate - Peak Fan Power - Installed (total) Fan Energy (Annual) Paved Area (Process, Mechanical + Apron) Total ECS Scope of Work ($USD) Ph 2 for future expansion Phase 1 Phase 2 TPY 11500 1,500 TPD 4 4 Ib/CY 850 850 Positive Positive B/G Sparger B/G Sparger Bunker Bunker days 24 24 # 6 6 # 1 1 ft 12 12 ft 20 20 ft 8.0 8.0 ft 1.0 1.0 days 5.4 2.7 CY 300 300 CFM/CY 5.0 5.0 HP 5 3 kWh/yr 21,000 10,000 M FL ft^2 3,900 3,900 $ 190,460 $ 141,400 *throughput in US tons www.compostsystems.com ECS SCOPE OF WORK Client: Creekside Composting Facility: Hutchinson, MN By: Baraka Poulin Date: 2/3/2022 Basis: Aerated static pile compost system featuring ECS CompTroller automated control system and below grade sparger pipe aeration floor. System shall be expandable from 1,500 to 3,000 TPY. Phase 1 fan, duct and controls are sized to accomodate Phase 2. Aeration•• .. Description Fans Per ECS Spec, Standard Efficiency ECS Aeration Ducting Per ECS Spec ECS Duct Supports Per ECS Spec ECS Zone Damper Assemblies Dampers per ECS Spec, Sealed, Electric Actuators ECS Irrigation - Distribution Control Valve, Sprinklers heads ECS Irrigation - Water Supply Standard Pipe & Fittings OTHERS Electrical Wiring and Conduit OTHERS Duct & Fan Condensate Drains Standard Pipe & Fittings OTHERS Aeration .• Description HDPE Components Fabricated and Standard HDPE Pipe & Fittings ECS Drainage Line: Zones to Sump Standard Pipe & Fittings OTHERS Drainage Line: Sump to Re -use System Standard Pipe & Fittings OTHERS CompTroller Hardware & Software Web -based, distributed, ruggedized ECS Fan Drives Variable frequency drives, filters ECS Process Sensors Temperature, pressure ECS Temp Probe Holders Mild Steel OTHERS Electrical Wiring and Conduit OTHERS Electrical Service Fan Panel, MCC, Breakers, Fuse OTHERS Control Shed - Climate -controlled Approximately 8x10ft shed OTHERS E Description System Engineering Technical Submittal, CASP system installation ECS drawinqs, construction support StartupECS on site commissioning, operator training and ECS unlimited 1 year remote support Freight Includes freight allowance FOB site ECS Warranty iyr equipment warranty ECS OTHERS=Design and Supply by other team members Note: ECS deliverables exclude: a lead role in obtaining permits, any professional engineering services required for permits or constructing the facility, construction management, any phase of construction or equipment installation, any equipment not specifically called out above, any local taxes or fees. www.compostsystems.com al a SG HeapTM / Bunker TM System with GORE® Cover and Cover Winding Machine Quotation for Hutchinson MN Compost Facility ("BUYER") Date: January 31, 2022 Prepared by Brett Hoyt- email: brett.hoyt@sustainable-generation.com phone: 303-699-1585 Sustainable Generation, LLC in the following referred to as "SG" W.L. Gore & Associates in the following referred to as "Gore" SG BunkerTM System with GORE® Cover Shown below: 12 SG BunkerTM System with 9 Gore® Covers, Upper Marlboro, MD 2018 F CONFIDENTIAL INFORMATION 1 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 1. General: 1.1. Input Materials and Volumes': Input Materials I Source Separated Organics, Yard Waste, Green Waste 8-Week Process Quantity Input tons/year includes Bulking Agent) 1,500 Specific Weight lbs./ ard3 : 925 1 Data provided to SG by CUSTOMER for the purpose of an agreed upon system sizing. 1.2. Number of windrows Item Description Option #1 Option #2 Phase 1 —Active Composting Covered 2 2 Phase 2 — Maturation Covered 0 1 Phase 3 — Finishing Uncovered 0 1 Total 2 4 1.3. Bunker Design Throughput and Windrow Dimensions Item Opt* n #1 O tion #2 Configuration Heap Bunker Heap Bunker Throughput Volume: Cubic Yards per Year 3999 5185 3999 5185 Throughput tons per year 925 lbs./ ' 1850 2398 1850 2398 Throughput tons per year 800 lbs./ ' 1600 2074 1600 2074 Heap / Bunker Length ft. 50 50 50 50 Heap / Bunker Width ft. 20 20 20 20 Sidewall Height ft. 0 to 4 0 to 4 0 to 4 0 to 4 Pushwall Height ft. 4 to 8 4 to 8 4 to 8 4 to 8 Heap Height ft. 8 8 8 8 Distance behind pushwall for Bunker box ft. 10 10 10 10 Distance between Bunkers ft. 7 7 7 7 Driving Space Alley Width ft. 40 40 40 40 CONFIDENTIAL INFORMATION 2 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 1.4. Foot Print: Recommended Minimum Surface Area Including Driving Space' Item Option #1 Option #2 Compost Pad Width ft. 60 61 Compost Pad Length ft. 70 62 Compost Pad Area ft' 4200 3752 Driving Space ft.Z 1 3500 1 2460 Total Compost Pad It.' 7700 1 6212 'Layout, configuration and driving space shall be confirmed by the CUSTOMER'S professional design engineer and according to local codes and regulations. 1.5. Cover Handling Method (OPTIONAL) Item Quantity Quantity Description Cover Winder Machine CWM 1 Portable cover winder for use with GORE® Cover CONFIDENTIAL INFORMATION 3 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 2. SG HeapTM / Bunkefm System using GORE® Covers Scope of Supply includes the following: Diagram below is for illustrative purposes only. rn Z�Cover 1 Control system 2 K 3 Rim weight 4 Temperature sensor S Oxygen sensor 6 Cover handling device 7 Aeration fan 8 GORE* Cover 9 Aeration and leachate system 10 Water trap 11 Leachate pipe 02017•. L Gme•Asssdlses 6abl.G000ad de 1VM& k0Whdrl. Lfim O.A.sscvles 2.1. Installation Guide, which includes Specifications and Drawings for the Design Team: Layout and drawings provided by SG are for the purpose of guiding the design configuration and are not to be used for construction. BUYER must consult with a professional engineer and design according to local code and regulations. • Basic Site Layout for the Phase I, Phase II and Phase III areas of the composting pad • Drawings and Specifications for the cover winding system provided. • Drawings and Specifications for the In -Ground Aeration System • Drawings and Specifications for Cover Fastening System • Basic wiring diagrams and power/electrical system drawing to be finalized according to local standards and regulations by a qualified and/or locally certified electrician. 2.2. GORE® Cover Item Option #1 Options #2 Description GORE® Covers 2 3 Phase 1 Cover Tie Down Straps Included Phase 1 and 2 Specified dimensions to fit the heap dimensions as described in Section 1.3. Design and fabrication of each GORE® Cover for use with the winding system provided. CONFIDENTIAL INFORMATION Q Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 2.3. SG BunkerTM System Aeration System with Leachate Collection Above Ground Components: ITEM Option #1 Options #2 SG Heap/ Bunker Box Unit- Plug & Play Design 2 4 Aeration Blower 2 4 Junction box for 480v, 3-phase power termination 2 4 Cat 6 Network connection termination point 2 4 Y-tubes/T-tubes 2 4 Flexible Pipe, couplers, and Hose Clamps 2 sets 4 sets In Ground Components: Item Option #1 Options #2 In -Ground Trench System 2 sets 4 sets Water Traps 2 4 PVC Pipe and Fittings Set 2 sets 4 sets Note: Contractors hired by BUYER have to meet the system specifications for the SG BunkerTM System and will carry out installation of aeration system, including all relevant parts such as trenches, individual blowers and water traps, pipe, and fittings. 2.4. Compost Control System (CCS) Item Option #1 Option #2 Process Control Unit (PCU) 2 4 Oxygen Probes (Phase 1 & 2) 2 3 Temperature Probes 2 4 Probe Cabling Sets 2 4 CCS Server 1 1 Network Switch 1 1 CCS PCU Software Licenses 2 4 CCS Server Licenses 1 1 Computer Laptop or Smart Device Laptop or Smart Device Process Control Software Installed Installed Service Platform Software Installed Installed CONFIDENTIAL INFORMATION 5 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a Compost Control System is a plug and play solution and will include the following features: • A Process Control Unit (PCU) for each windrow • Main power supply hook-up • Network Connection hookup • Emergency stop • Green control light for power on • Red control light for blower fail • Low Volt transformer • Programmable and Manual Modes Control System • 5-point temperature probe • First year Software Licenses included Note: Requires Public Dedicated Static IP Address — supplied by Buyer 2.5. Cover Fastening System for Bunker design only Item Options #1 Options #2 Rounded Sidewall Cap 2 bunker sets 4 bunker sets Stainless Steele Carabiners Phase 1 & 2 2 bunker sets 3 bunker sets Bungee Cords Phase 1 & 2 2 bunker sets 3 bunker sets Bunker Toe end fastening system Phase 1 & 2 2 bunker sets 3 bunker sets 2.6. Operations Manuals • Installation Manual for SG BunkerTM System • Operation Manual on GORE® Cover including safe handling guidelines • Standard operation manual on the Cover Winder machine. • All documents will be provided in English on paper 2.7. Spare Parts: Item Option #1 Options #2 Probe Cable 4 7 Oxygen Probe 2 3 Temperature Probe 2 4 Repair Kit for GORE® Cover including laminate 1 1 2.8. Cover Winding Machine CWM Portable Tow Behind Cover Winding Machine (OPTIONAL) • Cover Winding Machine for deploying and removing cover. • For use with GORE® Cover and SG BunkerTM design • Self -Propelled unit able to deploy or remove GORE® Cover in under 15 minutes CONFIDENTIAL INFORMATION Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 3. SG SmartStartTM Service Package Scope of Supply includes: 3.1. Technical Meetings, Site Supervision, Installation Guidance, Start -Up and Commissioning Meeting Description Pre -Design Included Pre -Construction Included Pre -Installation Included Operator Training (1, 2, and 3) Included Start Up and Commissioning Included Service Platform: Technical Support Training Included 3.2. Training Training for Operators Reference Plant Duration (Days) Participants Training Unit 11 US Reference Site 3 2-3 people Training Unit 22 Customer Site 3 na Training Unit 33 Customer Site 2 na 1 Training 1 will be held at US reference site during construction phase. BUYER responsible for their travel and lodging expenses. 2 Training 2 will be held during final installation of equipment and during start up/ commissioning. 'Training 3 will be held between two (2) months after start up and no later than six (6) months after start up. CONFIDENTIAL INFORMATION J Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 3.3. Technical Support Remote Support Services Internet and Service Platform Support- 24 hr. Response Time • No Charge Annual Support Contract Annual Service Contract • Interacts, Phone, and Service Platform Support- 4 hr. Response Time. • Remote Diagnostics • Annual On -site Service Check and Report • Remote Data Backup • First 12 months beginning at Commissioning/Startup- No Charge • $12,000.00 per year after first 12 months 3.4. Consultancy Consultancy On -Site Support $1200.00 USD per day per person plus travel /expenses BUYER will allow SG or SG Partner to access the plant after reasonable prior notice. 3.5. Software Licenses CCS Software Licenses Sustainable Generation Software as a Service Subscription Appendix B Includes Software Updates 2 or 4 PCU Licenses Includes Software New Features/Enhancements 1 Server Licenses First 12 months beginning at Startup/Commissioning- Included/No Charge Annual User Fee: • $1000 per PCU • $2000 per Server 3.6. Service Platform Web based service platform unique to the BUYER with the following capabilities: + Inventory all components and tracks the warranty • Online ordering for technical support, component repairs and spare parts • 24/7 technical support with 24-hour response time • Tracking tool for technical support CONFIDENTIAL INFORMATION $ Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a Warranties and Guarantees. 4.1. Sustainable Generation (SG) warrants that the system as specified in this quotation is designed to process a minimum amount of feedstock as specified in Section 1.1 for a period of 4 years, provided that SG BunkerTM System with GORE® Covers was operated in accordance with all Operation Manuals, Trainings and all other relevant instructions or information provided by SG. Warranty will start from date of commissioning or at the latest 6 months after shipment. In the event of claims to this warranty CUSTOMER shall provide access to all available process data. 4.2. GORE® Cover Manufacturer's Warranty: Each GORE® Cover will be delivered free from defects in materials and workmanship. This Warranty shall be valid for a period of 4 years from date of arrival on CUSTOMER's project site for each new GORE® Cover. For any claim under this Warranty arising within the first 24 months after the defect GORE® Cover of arrival on CUSTOMER's project site, Gore shall repair or replace the GORE® Cover, at Gore's option and expense. For any claim under this Warranty arising within months 25 through 48 of this Warranty, at CUSTOMER's request Gore shall sell to CUSTOMER a new GORE® Cover at the then current price with an allowance deducted from the price for the warranty period which has already passed according to the following formula: Price to be paid by CUSTOMER = Full Price multiplied by (months of warranty coverage passed divided by 48). This Warranty does not apply for defects resulting of natural wear and tear, or if the GORE® Cover is punctured or torn by a sharp object, or otherwise damaged due to exterior influences, such as rodents, birds, mechanical impact such as inadmissible strong tie down, etc., or if the GORE® Cover was not operated in accordance relevant instructions or information provided by Gore. In the event of claims to this Warranty, CUSTOMER shall provide access to all available data related to the operation of the defect GORE® Cover and, if necessary, access to the site where the defect GORE® Cover has been operated. The CUSTOMER has to inspect the GORE® Cover immediately following delivery for the absence of defects and for completeness and to notify any defects thus discovered to SG in writing within 14 calendar days. If the CUSTOMER fails to perform the inspection or to notify the defects in good time, the goods supplied are deemed to be approved, unless the defect could not be identified at the time of the inspection. CUSTOMER remains entirely responsible for following the guidelines about handling of the GORE® Cover with the winding device and to provide proper training to its operators. 4.3. Sustainable Generation Software as a Service, is provided subject to the exclusive warranty set forth in the SaaS Subscription Agreement, and attached SLA, Appendix B. 4.4. For other equipment supply of the SG BunkerTM System from Sustainable Generation (SG) the warranty period shall be valid for 12 months from the date of commissioning of the facility or six months after shipment, whichever date is earliest. This equipment supply is the aeration blowers, trenches systems with water traps, and the cover handling device. The Compost Control System components (CCS), and communications network are subjects to a warranty period of 12 months. Sensors, sensor cables and connectors are subject to a warranty period of 6 months. The Warranty is limited to defects which cannot be attributed to natural wear or improper use or treatment. For all other parts, we only act as a reseller of such as the Laptop or PC computer and printer, and hereby assign the manufacturer's warranties and representations, to the extent assignable. CONFIDENTIAL INFORMATION g Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 4.5. Any parts and equipment which are subject to claim shall be returned to SG free of freight and customs and excise duty, in so far as no other express agreement has been reached to the contrary. Claims must be sent in writing and by registered letter. If such claims are recognized by SG, we shall repair the relevant items as quickly as possible or replace them at our discretion. Freight and packaging costs shall be SG responsibility. Parts which are replaced shall remain SG property. 4.6. Any liability as set forth in this section is in each case limited to the value of the specific component product in connection with which the damaging event has occurred. 4.7. As a precondition to any of the warranties offered under this Agreement, (i) BUYER is responsible for operating the SG BunkerTM System with GORE® Covers in accordance with all Operation Manuals, Training, and all other relevant instructions or information provided by SG; if parties other than SG have modified or changed the SG products or Service deliverable; the claim arises out of the use of the SG Products or service with products or services not provided or approved by SG 4.8. BUYER is solely responsible to operate SG BunkerTM System and GORE® Cover in compliance with applicable law. 4.9. All limited warranties on the SG Products and Services are granted only to Buyer and are non- transferable. THESE WARRANTIES REPRESENT BUYER EXCLSUIVE REMEDY AND SG'S EXCLSUIVE LIABILITY FOR ANY WARRANTY DEFECTS. SG MAKES NO OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE: EXCEPT AS STATE ABOVE, SG SHALL HAVE NO OBLIGATION OR LIABILITIES TO BUYER OR ANY OTHER PERSON FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR INCIDENTIAL DAMAGES, ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE USE OR PERFORMANCE OF GOODS AND SERVICES PROVIDED UNDER THIS AGREEMENT, OR IN ANY OTHER MANNER. CONFIDENTIAL INFORMATION 10 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 5. BUYER Responsibilities: 5.1. BUYER is responsible for construction and installation. BUYER agrees to consult with a professional engineer and design according to local code and regulations. 5.2. Installation Supply: • Provide a staging area for shipping containers and unloading the equipment into a secure and dry area (housing for the control system, space for the other parts). • Provide workspace and lay -down area for the partner companies including communication (telephone, fax and internet). • Provide access to standard hand tools (wrenches, hammers, screwdrivers, drill etc.) and temporary power. • Provide front-end loader, forklift, crane and trained equipment operators. • Note: The Container holding the cover winder machine has to be unloaded to the ground without being opened or any parts removed. Container shall only be opened by SG or SG partner. 5.3. Site Construction, Installations, and Parts provided by BUYER: • Site preparation as per permit requirements adapted to local specifications. • All concrete, mechanical, electrical work for construction and installation of compost pad, Bunkers, push walls, leachate collection from water traps, and electrical power. • Installation of aeration system, including all relevant parts such as trenches, individual blowers and water traps, pipe, and fittings. • Facility shall have adequate space for reception, storage, pre-treatment, mixing, screening and storage of the finished compost. • Impervious Surface for Compost Pad. Concrete, asphalt, or other SG approved surface. 5.4. Electrical Installations provided by BUYER: • All electrical and network installations like electrical conduit, network conduit, wiring, Cat6, Fiber Optic Cable, junction boxes, disconnects and final power and network hook-ups to the SG Mobil&m4leapTM/Bunkefm System to be provided and installed by BUYER by a qualified and/or locally certified electrician. 5.5. Process Supply by BUYER: • Feedstock as specified for the start-up and the process. • Provide machinery such as front-end loader, grinder, screen, turner and water supply. • A site supervisor and a main contact person to be provided by BUYER, being knowledgeable about and held accountable for the operations being in compliance with all applicable safety and environmental regulations. 5.6. Network Connection provided by BUYER. • Public Dedicated Static IP address CONFIDENTIAL INFORMATION 11 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 6. Terms 6.1. Confidentiality "Confidential Information" means any information one party discloses to the other under this Agreement which is identified as confidential or proprietary. By way of example but not limitation, the content of this quotation and all other information in conjunction with SG Bunker System with GORE® Covers and its system components, which has been disclosed or will be disclosed by SG, is confidential. BUYER may not communicate Confidential Information to third parties. BUYER confirms to disclose Confidential Information to no more than those employees and contractors to whom disclosure is reasonably necessary for the operation of the Facility or for the evaluation of this quotation. Confidential Information does not include information which: is rightfully obtained by the recipient without breaching any confidentiality obligations; is or becomes known to the public through no act or omission of the recipient; the recipient develops independently without using Confidential Information; or is disclosed in response to a valid court or governmental order if the recipient notifies the disclosing party and assists in any objections. The recipient may use Confidential Information only for the purposes for which it was provided under this Agreement, and shall treat it with the same degree of care as it does its own similar information, but with no less than reasonable care. The signing of this contract does not affect any existing confidentiality agreement. 6.2. Payment Terms Requirement Rate Action/ Deliverable Invoiced Payment #1 5% Design/ Installation Guide Upon Agreement Signing Payment #2 40% Notice to Proceed/ Production/ Ship Production of Components Payment #3 50% Shipment to Site/Installation Arrival on Site Payment #4 5% Start Up/CommissioningUp/Commissioning Commissioning All payments received past the payment due date will be charged a late payment fee of 1.5% per month in addition to any collection costs or expenses incurred, including court costs and reasonable attorney fees. 6.3. Time schedule: • SG and BUYER will set a specific time schedule for: when, what, in which way Action Items/ Deliverables will be received after this contract is signed. • Delivery date to be determined. BUYER will issue to SG a Notice to Proceed/ Production; thereafter BUYER should allow 16r20-week lead-time for the shipment to arrive on -site after receiving Payment #2. Delivery lead-time for Cover Winder Machine may be longer, see SG for further information. 6.4. General terms and conditions • The Terms and Conditions of Sustainable Generation (Appendix A) shall apply. In the event of any inconsistency between the terms and conditions of this Quotation and the Terms and Conditions of SG, the Terms and Conditions of the Quotation will prevail. • All other terms are expressly rejected. CONFIDENTIAL INFORMATION 12 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 6.5. Pricing ➢ Duty and Shipping included. ➢ All other applicable Taxes not included and are payable by BUYER. ➢ Tariffs not included, if any, and are payable by BUYER. Option #1 111W Con oration Pricing $USD SG HeapTM System 2 SG Heap/BunkerTM Systems with 2 GORE® Covers Included SG BunkerTM System Standard Bunker Design Compost Control System Aeration System with In -ground trenching Heap Cover Fastening System SG SmartStartTM Installation Guide, Pre-Design/Construction/Installation Included Service Package Meetings, Commissioning & Start-up Services, Training TOTAL $250,000.00 Extra Items Configuration Pricing $USD SG BunkerTM Bunker Cover Fastening System $15,000.00 Cover Winding Machine Portable Tow Behind Configuration $98,000.00 Option #2 Configuration Pricing $USD SG HeapTM System 4 SG Heap/ BunkerTM Systems with 3 GORE® Covers Included SG BunkerTM System Standard Bunker Design Compost Control System Aeration System with In -ground trenching Heap Cover Fastening System SG SmartStartTM Installation Guide, Pre-Design/Construction/Installation Included Service Package Meetings, Commissioning & Start-up Services, Training TOTAL $400,000.00 Extra Items Configuration Pricing $USD SG BunkerTM Bunker Cover Fastening System $26,000.00 Cover Winding Machine Portable Tow Behind Configuration $98,000.00 CONFIDENTIAL INFORMATION 13 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a 6.6 Cancellation BUYER may reschedule, terminate or cancel the Order by written notice to SG prior to SG Shipment. Orders cancelled prior to the issuance of a Notice to Proceed for production and shipment and will be subject to a cancellation charge based on the percentage of work completed. The cancellation charge may not exceed an amount of $200,000.00 USD (Two Thousand United States Dollars) in total. Rescheduling shall be limited to once per order and remains subject to mutual agreement of the Parties. In the event the rescheduling creates an additional expense the parties may treat the rescheduling request as a change order where that change remains subject to compensation for those incremental expenses actually incurred as a condition for rescheduling. Orders terminated or cancelled by BUYER after the issuance of a Notice to Proceed for production and shipment will be subject to the Sustainable Generation LLC Terms and Conditions attached to this quote. 6.7 Applicable Law; Jurisdiction • This Quotation is governed by the substantive law of the State of Delaware, without regard to its principles regarding the conflict of laws. The United Nations Convention for the international sale of goods shall not apply. The parties agree to the jurisdiction of the United States District Court for the District of Delaware and the courts of the State of Delaware for the resolution of any litigation relating to this Agreement. CONFIDENTIAL INFORMATION 14 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved al a Contract partner and seller is Sustainable Generation, LLC of Wilmington, Delaware. Validity of this Quotation is 60 Days from Date of Offer. Quotation acceptance subject to SG Confirmation SG reserves the right to correct any errors and omissions in this Quotation. Please return approved quotation by: • Scan/email to: brett.hoyt@sustainable-generation.com • Mail two (2) originals to: Sustainable Generation, LLC 110 South Poplar Street, Suite 400 Wilmington, DE 19801 Offered: January 31, 2022 Quotation Accepted: Sustainable Generation, Inc. BUYER Brett Hoyt VP Sales — North America Sustainable Generation LLC 110 South Poplar St., Suite 400 Wilmington, DE 19801 Signature: Print Name: Title: Company: Date: CONFIDENTIAL INFORMATION 15 Copyright ©2022, Sustainable Generation, LLC. All Rights Reserved 16 APPENDIX A: Sustainable Generation's Terms and Conditions (Page intentionally left blank) SG T&C's February 2019 TERMS AND CONDITIONS of Sustainable Generation, LLC 1. AMOUNT AND TYPE OF GOODS: Seller agrees to sell and Buyer agrees to buy the quantity and type of products and/or services (the "Products") which are described in this Agreement. 2. ENTIRE AGREEMENT: This Agreement together with any SOW or any software licenses or SaaS Subscription Agreements incorporated by reference represents the entire integrated agreement between Buyer and Seller and supersedes all prior negotiations, representations or agreements, either written or oral. These terms may be amended only by a written instrument signed by both Buyer and Seller. 3. INSPECTION, CLAIMS FOR DEFECTS OR LATE DELIVERY: Buyer shall have the right to inspect the Products after delivery. Buyer shall give Seller prompt written notice of any damaged, defective or non -conforming Products and shall make all rejected Products available to Seller for inspection. Services are deemed accepted upon delivery; unless Buyer rejects those services as defective in writing within 2 business days. Failure of Buyer to give written notice of Product rejection to Seller within sixty (60) days from the date of delivery constitutes Buyer's irrevocable acceptance of the Products. Buyer is entitled to inspect the Products at any stage of manufacturing, but Seller reserves the right to restrict access to certain machinery, processes, and information that Seller deems proprietary. Seller shall have no obligation to replace or provide credit for Products claimed to be defective unless Seller receives representative samples of the Products and an opportunity to examine the Products at a place convenient to the Seller. In the event that Buyer elects to accept a part of a delivery, it is agreed that the portion of Products rejected shall be returned to Seller within thirty (30) days following Seller's authorization. For rejected service, Seller will promptly provide Buyer with a like amount of replacement services their own cost and expense. 4. DELIVERIES: The delivery of the Products shall be made, in a single or in multiple lots, as specified in the Agreement, or within a reasonable time thereafter. The delivery schedule shall be considered extended by a period of time equal to the time lost due to any delay for causes beyond Seller's reasonable control. Seller's failure to make delivery of any item or to meet any delivery date shall not affect future deliveries or excuse Buyer from paying any installment when due. Buyer's failure to pay any installment when due shall excuse Seller from making further deliveries. Buyer shall confirm the suitability of Seller's standard manufacturing lead times prior to placing orders. Seller reserves the right to charge expediting fees for deliveries requested in advance of Seller's standard lead-time. With respect to each delivery obligation contained in this Agreement: (i) Tender of a shipment to any licensed carrier shall constitute delivery to Buyer; (ii) Seller shall use its best efforts to deliver in accord with the schedule specified in this Agreement. Any delivery not in dispute shall be paid for in accordance with that order's terms by Buyer, regardless of any dispute as to other delivered or undelivered goods. Seller is not obligated to package goods for outside storage. Deliveries of up to ten percent (10%) above or below quantities specified in the order shall be accepted by Buyer and the invoice price will be adjusted accordingly. Unless otherwise specified by Seller, delivery terms are to be Ex Works (Incoterms 2000) Seller's manufacturing site. 5. TITLE; RISK OF LOSS: Unless otherwise agreed by the parties, risk of loss or damage to the Products shall pass to the Buyer upon delivery. Buyer shall receive title to the Products upon Seller's receipt of payment in full for the Products delivered. Buyer remains separately responsible for expense incurred in the transportation, handling and insurance in transit. Buyer will reimburse Seller for these expenses and where Buyer fails to designate a carrier, Buyer will make that designation and the transportation company will not be considered an agent of Seller. 6. PRICING OF BULK PURCHASE ORDERS: Unless otherwise agreed by the parties, installment deliveries extending over six months from the original order date will be invoiced at Seller's then -prevailing unit price.7. WARRANTY: Seller warrants that at the time of delivery, the Products are free from defects in materials and workmanship and conform to Seller's specifications, and, if applicable, acceptance criteria to which Seller has agreed in writing. Buyer retains sole responsibility for determining whether the Products are fit for the intended use, and for suitability of qualification and acceptance criteria. Claims for defects must be received by Seller within one (1) year from delivery of the Product on which the claim is based. Buyer's remedy will be limited to repair, replacement or refund for those Products which Seller verifies are defective. This warranty is conditioned upon (a) proper storage, installation, use, operation, and maintenance of the Products, (b) Buyer keeping accurate and complete records of operation and maintenance during the warranty period and providing Seller access to those records, and (c) modification or repair of the Projects only as authorized by Seller. Failure to meet any such conditions renders the warranty null and void. Seller is not responsible for normal wear and tear. As a precondition to any of the warranties offered under this Agreement, (i) Buyer is responsible for operating the Products in accordance with all Operation Manuals, Training, and all other relevant instructions or information provided by Seller; and (ii) operations of the Products in compliance with applicable law including any safety, security or data privacy regulations. This warranty excludes claims based upon Products that have been modified or changed; as well as any claim that arise out of the use of the Products or service with products or services not provided or approved by SG. All limited warranties on the SG Products and services are granted only to Buyer and are non -transferable. THESE WARRANTIES REPRESENT BUYER's EXCLSUIVE REMEDY AND SELLER'S EXCLSUIVE LIABILITY FOR ANY WARRANTY DEFECTS. SELLER MAKES NO OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE: EXCEPT AS STATE ABOVE, SELLER SHALL HAVE NO OBLIGATION OR LIABILITIES TO BUYER OR ANY OTHER PERSON FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR INCIDENTIAL DAMAGES, ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE USE OR PERFORMANCE OF GOODS AND SERVICES PROVIDED UNDER THIS AGREEMENT, OR IN ANY OTHER MANNER. 8. INDEMNITY AGAINST INFRINGEMENT: Seller will, at its expense, defend Buyer against any claim by a third party that the products delivered hereunder infringe any intellectual property right and will pay all costs, damages, and attorney's fees that a court finally awards as a result of such claim. To qualify for such defense and payment, Buyer must give Seller prompt written notice of such claim and allow Seller to control, and fully cooperate with Seller in, the defense and all related settlement negotiations. Seller shall have no obligation with respect to any claim of direct or contributory infringement based upon modification of the products famished by Seller or their combination, operation, or use. Seller shall have no obligation with respect to any claim of direct or contributory infringement based upon use of the Products or services in a manner for which the Products were not designed Buyer shall hold Seller harmless against any such claim arising out of compliance with specifications furnished by Buyer. This Article 8 states Seller's entire obligation to Buyer regarding claims of infringement, whether direct or contributory, involving intellectual property rights of third parties. Neither party shall have the obligations set forth in this Article 8 if an infringement claim is brought against a party protected from such a claim pursuant to government regulations. 9. CHANGES: Either party may at any time propose changes to the specification or scope of Products. All changes to the specification or delivery schedule will require a written agreement between the parties which will, at minimum, include the changes in the scope, delivery schedule and resulting change in price. Seller reserves the right to improve and make changes to Products sold hereunder without notice or approval of Buyer, except for changes that materially modify the form, fit or function of the Product contained the specifications. 17 SG T&C's February 2019 10. CANCELLATION OR RESCHEDULING: Except as otherwise provided in the Agreement, orders cancelled by Buyer other than for default of Seller will be subject to a cancellation charge based on the percentage of work completed as a percentage of the contract price or such other reasonable charge as Seller may apply. Buyer will be entitled to receive any Products for which Seller has received payment in full. Seller, in its sole discretion may waive its claim for the value of work in progress. Buyer's cancellation request(s) must be in writing. Rescheduling shall be limited to once per order and remains subject to mutual agreement of the Parties. In the event the rescheduling creates an additional expense the parties may treat the rescheduling request as a change order where that change remains subject to compensation for those incremental expenses actually incurred as a condition for rescheduling. 11. TECHNICAL DATA AND PROPRIETARY INFORMATION: Seller has no obligation to provide technical data other than its standard finished Product inspection data. Seller has no obligation to perform, and this is not an Agreement for, research, developmental or experimental work. Seller has no obligation to disclose, convey rights or allow access to technical, financial, or other information protected by it as proprietary or to indemnify Buyer for such refusal to disclose. 12. PAYMENT: Buyer shall pay Seller for the Products by paying all invoiced amounts in U.S. Dollars, without set-off, reduction or adjustment within thirty (30) days from the invoice date. For each calendar month, or fraction thereof, that payment is late, Buyer shall pay interest computed at the rate of 1.5% per month, or the maximum rate permitted bylaw, on the overdue balance. If it is necessary for Seller to enforce any provision of this Agreement, Buyer agrees to reimburse Seller for all legal and other reasonable costs related thereto, including attorneys' fees, court costs, administrative time, and other collection costs, whether or not Seller initiates court proceedings. Buyer shall also pay all costs, attorney's fees, filing fees, and/or administrative fees in the event Buyer appeals any decision or order from a judicial proceeding against Seller. Seller reserves the right to alter Buyer's credit limit, if any, at any time, or to require payment in full for any order or prior order before delivery. If Buyer fails to pay any invoices when due, Seller may terminate this Agreement and cancel or delay all future deliveries without otherwise affecting Seller's rights hereunder. As partial payment of sums due hereunder, Seller may accept any check or other tender of payment without entering into an accord and satisfaction and without prejudice to the Seller's right to the remainder due or to become due hereunder notwithstanding any terms or conditions endorsed on or stated in any communication related to such check or other tender. Seller may apply any amounts tendered by Buyer as Seller determines, in its sole discretion, whether under this Agreement or otherwise. All prices quoted are exclusive of taxes. 13. FORCE MAJEURE: Seller shall not be liable for any delay in delivery or for non -delivery, in whole or in part caused by the occurrence of any contingency beyond the control either of Seller or suppliers to Seller, including but not limited to war (declared or not), sabotage, insurrection, rebellion, riot or other act of civil disobedience, act of public enemy, failure or delay in transportation, act of any government or any agency or subdivision thereof, judicial action, labor dispute, fire, accident, explosion, epidemic, quarantine restrictions, storm, flood, earthquake, shortage of labor, fuel, raw material or machinery or technical failure, where Seller has exercised ordinary care in the prevention thereof. If any contingency occurs, Seller may allocate production and deliveries among Seller's BUYERS. 14. REPRESENTATIONS AND CERTIFICATIONS: Seller makes no representations or certifications in connection with this Agreement except those which are expressly contained within these Terms of Sale and, if any, those provided separately which are signed and dated by the Seller and made exclusively applicable to this Agreement. 15. CONFIDENTIALITY: "Confidential Information" means any information one party discloses to the other under this Agreement which is identified as confidential or proprietary. By way of example but not limitation, the content of this quotation and all other information in conjunction with Products including the SG Bunker System with GORE® Covers and its system components, which has been disclosed or will be disclosed by SG, is confidential. BUYER may not communicate Confidential Information to third parties. BUYER confirms to disclose Confidential Information to no more than those employees and contractors to whom disclosure is reasonably necessary for the operation of the Facility or for the evaluation of this quotation. Confidential Information does not include information which: is rightfully obtained by the recipient without breaching any confidentiality obligations; is or becomes known to the public through no act or omission of the recipient; the recipient develops independently without using Confidential Information; or is disclosed in response to a valid court or governmental order if the recipient notifies the disclosing party and assists in any objections. The recipient may use Confidential Information only for the purposes for which it was provided under this Agreement, and shall treat it with the same degree of care as it does its own similar information, but with no less than reasonable care. The signing of this contract does not affect any existing confidentiality agreement. . The terms of this Paragraph shall survive termination of the Agreement for any reason. 16. LIMITATION OF LIABILITY: The total liability of Seller for call claims of any kind arising from or related to the formation, performance or breach of this Agreement, or any Products or Services, shall not exceed the lesser of (i) $100,000, or (ii) if Buyer places multiple order(s), the price of each particular order for all claims arising from or related to that order. 17. INDEMNIFY AND HOLD HARMLESS: The BUYER agrees to Indemnify and Hold Harmless Seller, its agents, servants, authorized partners, and employees, from any and all loss, damage, liability or expense, including attorneys' fees, including but not limited to all claims for damages on account of or by reason of bodily injury, including death, which may be sustained or claimed to be sustained by any person, and all damages to property, caused by or in connection with BUYER'S use, possession, ownership, or future sale/disposal of the equipment. 18. SAVINGS CLAUSE: If any provision of this Agreement is found to be void or unenforceable, the remainder of the Agreement shall not be affected. The parties will endeavor to replace any such void or unenforceable provision with a new provision that achieves substantially the same practical and economic effect and is valid and enforceable. 19. COUNTERPARTS: This Agreement may be executed in multiple counterparts that together shall constitute one Agreement. 20. APPLICABLE LAW; JURISDICTION: This Agreement is governed by the substantive law of the State of Delaware, without regard to its principles regarding the conflict of laws. The United Nations Convention for the international sale of goods shall not apply. The parties agree that the US District Court for the District of Delaware or the Courts of the State of Delaware have exclusive jurisdiction over the resolution of disputes arising under this Agreement. The parties hereby expressly agree to personal jurisdiction within the State of Delaware. 18 SG T&C's February 2019 APPENDIX A: SG Software as a Service Subscription Agreement (Page intentionally left blank) SG SaaS Subscription Agreement SG Software as a Service Subscription Agreement SG Software Product (the "Software Product") provides the functionality as specified in the printed SG software product documentation, Attachment A. The Software Product including any included data and accompanying documentation are the proprietary property of Sustainable Generation, Inc. ("SG"). DEFINITIONS: These terms when referenced in this Agreement have the following meaning: a) "SG Cloud Services Environment' refers to the combination of hardware, software and Software Product owned, licensed, subscribed to, or managed by SG to which SG grants the Licensee and Users access to portion of the SG Cloud Service Environment as part of the SG Cloud Services that are described in the SG Sales Quote. b) "SG Software Service Description" is the formal SG description of the commercial service offering defining the scope and coverage of the service, referenced in the SG Sales Quote and attached to this Agreement as Attachment A. c) "SG Sales Quote" is a formal SG offer for the sale of specified products and services pursuant to this Agreement, which shall be effective upon Licensee's execution thereof d) "Licensee Data" means " means any data, content, code, video, images, questionnaires or other materials of any type that Licensee uploads, submits or otherwise transmits to or through the Software; (ii) reports and documents generated by SG or the Software Product from such data, content, code, video, images questionnaires or other materials submitted by or on behalf of Licensee. e) "Users" means those employees, contractors, and end users, as applicable, authorized by the Licensee to use the Software in accordance with this Agreement. For Software that are specifically designed to allow the Licensee's customers, suppliers or other third parties to access the Software to interact with the Licensee, such third parties will be considered "Users" subject to the terms of this Agreement. Acceptance YOU ("LICENSEE") BY YOUR USE OF HE SOFTWARE ACCEPTS AND AGREES TO BE BOUND BY THE TERMS OF THIS AGREEMENT, LICENSEE FURTHER ACKNOWLEDGESTHIS FACT BY SELECTING THE "ACCEPT" OPTION AFTER LOGGING IN TO THE SOFTWARE PRODUCT WITH A REGISTERED USER ID. LICENSEE MUST AGREE TO ALL OF THE TERMS OF THIS AGREEMENT BEFORE LICENSEE WILL BE PERMITTED LAWFUL ACCESS TO THE SOFTWARE PRODUCT. IF LICENSEE DOES NOT AGREE TO ALL OF THE TERMS OF THIS AGREEMENT, LICENSEE MUST SELECT "DECLINE"; AND LICENSEE MUST NOT ACCESS OR OTHERWISE USE THE SOFTWARE PRODUCT. SG reserves the right to require Licensee to periodically renew its acceptance and agreement to the terms of this Agreement by requiring Licensee to select the "Accept" option after logging in to the Software Product with a registered user ID and password, including, without limitation, in the event SG provides an enhancement, improvement or modification to the Software Product or if SG amends or modifies the terms of this Agreement. However regardless of any such renewal, Licensee acknowledges that the terms of this license continue to govern Licensee's use of the Software Product, as well as any modifications or additions provided by SG or through Licensee's access to the SG Cloud Services Environment. License Grant SG SaaS Subscription Agreement Subject to Licensee's compliance with the terms and conditions of this Agreement, SG grants to Licensee a terminable, non-exclusive, non -transferable license to use Software Product solely in Licensee's internal business operations. Licensee's rights to use the Software Product shall be limited to those expressly granted in this Software as a Service Subscription License Agreement ("Agreement"). All rights not expressly granted to Licensee are retained by SG. The Software Product is protected by copyright laws, trade secret, as well as laws and any applicable regulations an/or treaties related to other forms of intellectual property. SG owns all intellectual property rights in the Software Product and derivatives thereof The license granted by this Agreement shall apply only for the number of user id's and capacity limitations as set forth in the associated SG Sales Order under this Agreement, and shall only be valid for such time as the Subscription Agreement remains in full force and effect. Licensee shall take appropriate steps, including limiting access to user IDs and passwords, to limit access to the Software Product to those Users from its employees who are authorized to use the Software Product and to agree to the terms of this Agreement on behalf of Licensee. Restrictions on Transfer, Use, Alteration and Copying Licensee may not, without SG's prior written consent, conduct, cause or permit the: (i) use, copying, modification, rental, lease, sublease, sublicense, or transfer of the Software Product except as expressly provided in this Agreement; (ii) creation of any derivative works based on the Software Product or its accompanying documentation including but not limited to translations, (iii) alteration of any files or libraries in any portion of the Software Product, or reproduction of any tables or reports relating; (iv) reverse engineering, disassembly, or decompiling of the Software Product; (v) use of the Software Product in connection with service bureau, facility management, timeshare, service provider or like activity whereby Licensee operates or uses the Software Product for the benefit of a third party; or (vi) use of the Software Product by any party other than Licensee its subcontractors and agents acting on Licensee's behalf and subject to the terms of this license. Any violation of this section shall result in immediate termination of this Agreement, which termination shall not be exclusive of other remedies available to SG. Except for the purposes of training, translation, Licensee's internal backup, operational support or internal distribution, Licensee may not copy or allow others to copy any part of the user documentation or other printed material provided with the Software Product. Hosting Licensee shall bear sole responsibility for any information uploaded or supplied by Licensee in connection with use of the Software Product. Licensee represents and warrants to SG that it has the rights, permission and consents necessary to lawfully use any information uploaded or supplied by Licensee in connection with use of the Software Product. Licensee shall maintain copies of any information uploaded or supplied in connection with use of the Software Product. IN NO EVENT SHALL SG BEAR ANY LIABILITY FOR THE USE OR LOSS OF ANY INFORMATION UPLOADED OR SUPPLIED BY LICENSEE IN CONNECTION WITH USE OF THE SOFTWARE PRODUCT. Limited Warranty SG represents and warrants to Licensee that the Licensee's use of the Software Product will in substantial compliance with the printed product information for a period during the term of SG Software Product license term; in the event a term is not stated the license term will be presumed to be one year and the warranty will expire along with your right to use the SG Software Product. In the event of a breach, Licensee will promptly notify SG of the non -conformity in writing and SG will use reasonable commercial efforts to repair the Software Product to operate in compliance with its written description. SG does not warrant against uninterrupted operation or for any data SG SaaS Subscription Agreement loss. All warranties cover only defects arising under normal use and do not include malfunctions or failure resulting from misuse, abuse, neglect, alteration, problems with electrical power, acts of nature, unusual temperatures or humidity, improper installation, or damage determined by SG to have been caused by Licensee. All limited warranties on the Software Product are granted only to Licensee and are non -transferable. Licensee agrees to indemnify and hold SG harmless from all claims, judgments, liabilities, expenses, or costs arising from Licensee's breach of this Agreement and/or acts or omissions. This remedy represents SG's exclusive duty and Licensee's sole remedy even in the event that the remedy should fail in its essential purpose. Disclaimer of Additional Warranties and Limitation of Liability EXCEPT AS EXPLICITLY PROVIDED IN THIS AGREEMENT OR OTHERWISE AGREED TO IN WRITING BY SG, SG MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN FACT OR IN LAW, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OTHER THAN AS SET FORTH IN THIS AGREEMENT. SG WILL NOT, UNDER ANY CIRCUMSTANCES, BE RESPONSIBLE OR LIABLE FOR THE INTERUPTIONS IN OPERATIONS OF THE SOFTWARE PRODUCT OR FOR ANY LOSS OF DATA ON ANY COMPUTER OR INFORMATION STORAGE DEVICE. TO THE EXTENT THAT THE APPLICABLE JURISDICTION LIMITS SG'S ABILITY TO DISCLAIM ANY IMPLIED WARRANTIES, THIS DISCLAIMER SHALL BE EFFECTIVE TO THE MAXIMUM EXTENT PERMITTED. IN NO EVENT WILL SG'S LIABILITY FOR ANY DAMAGES TO LICENSEE EXCEED THE SUBSCRIPTION FEES PAID BY LICENSEE PURSUANT TO THE SUBSCRIPTION AGREEMENT. Indemnification Licensee shall defend, indemnify and hold harmless SG from any demand, suit, cause of action, judgment, liability, cost or expense (including court costs and reasonable attorney's fees) ("Claims") arising out of or in connection with (i) a breach of this Agreement by Licensee, (ii) any information uploaded or supplied by Licensee in connection with use of the Software Product or (iii) any act, error or omission of Licensee or any of its officers, directors, agents, employees or subcontractors. SG shall defend Licensee, at SG's expense, against any Claims, excluding actions based upon Licensee submitted data or public domain data, made or brought against Licensee by a third party alleging that the use of the Software Product as contemplated hereunder, infringe a patent, copyright, trademark, or other intellectual property right of a third party or misappropriates such third party's trade secrets. Further, SG shall indemnify and hold Licensee harmless against all costs (including reasonable attorneys' fees) to the extent arising out of or in connection with such Claims. Upon receiving notice of a Claim, Licensee shall (a) give SG prompt written notice of the Claim; (b) give SG sole control of the defense and settlement of the Claim (provided that SG may not settle or defend any claim unless it unconditionally releases Licensee of all liability and does not attribute any blame or contributory fault to Licensee); and (c) provide to SG, all reasonable assistance in the defense or settlement of such Claim. In addition to SG's obligations above, SG may, at its expense: (a) secure the right for Licensee to continue to use the Software, (b) modify the Software so as to make it non -infringing, or (c) provide Licensee with a functional non - infringing replacement. If none of these alternatives is commercially practicable, Licensee will have the option to return the Software Product to SG, and SG will refund a pro -rated amount of the fees paid for the current subscription term, using straight line depreciation. This Section states SG's entire liability, and Licensee's exclusive remedy, for any claim of intellectual property infringement under this Agreement. Equitable Relief Licensee acknowledges that any use or disclosure of the Software Product in a manner inconsistent with the terms of this Agreement may cause SG irreparable damage for which other remedies may be inadequate, and Licensee SG SaaS Subscription Agreement agrees not to oppose any request to a court of competent jurisdiction by SG for injunctive or other equitable relief seeking to restrain such use or disclosure. Licensee waive any right it may have to require SG post a bond or other form of security as a precondition to any such injunctive relief Where SG processes PII as that term is defined in General Data Protection Regulation EU 2016/679 or as may be applicable under associated State law ("PII"), SG will be a processor and shall acting on behalf of Licensee as controller and will, in addition to compliance with the obligations set out in this PII Supplement: (A) ensure that any of its employees, agents or independent contractors with access to PII are subject to a contractual or statutory obligation to keep PII confidential; (B) promptly notify Licensee: (1) if SG is legally required to process PII otherwise than as instructed by Licensee before such processing occurs, unless the law requiring such processing prohibits SG from doing so on an important ground of public interest; and (2) of any instruction given by Licensee in relation to PII which, in SG's opinion, infringes applicable law; (C) assist Licensee: (1) in ensuring compliance with Licensee's obligation to respond to requests for exercising data subject's rights under European Data Protection Law or applicable State law; and (2) in relation to any data protection impact assessment, notification or regulatory consultation that Licensee is legally required to make in respect of European or State law for known or suspected Security incidents involving thee PII; (D) not subcontract any of its processing operations under the relevant Purchase Agreement or Purchase Order unless SG has: (A) obtained specific prior written consent of Licensee to do so; or (B) obtained general written authorization of Licensee to do so and has notified Licensee of any intended changes concerning the addition or replacement of service providers, giving Licensee the opportunity to object to such changes; (E) not export any European PII which is processed within the European Economic Area without the prior written permission of Licensee and, where permission is granted, taking such steps as Licensee may reasonably require in order to ensure such export is carried out in accordance with European Data Protection Law. Legal Compliance. Licensee must ensure that Licensee's use of Software and all Licensee Data is at all times compliant with applicable local, state, federal and international laws and regulations ("Laws") provided, however, that Licensee's failure to do so shall not be deemed a breach of the foregoing to the extent caused by the Software itself or SG. Licensee represents and warrants that: (i) Licensee has obtained all necessary rights, releases and permissions to provide all Licensee Data to SG and to grant the rights granted to SG in this Agreement and (ii) Licensee Data and its transfer to and use by SG as authorized by Licensee under this Agreement do not violate any Laws (including without limitation those relating to export control and electronic communications) or rights of any third party, including without limitation any intellectual property rights, rights of privacy, or rights of publicity, and any use, collection and disclosure authorized herein is not inconsistent with the terms of any applicable privacy policies. Other than its security and confidentiality related obligations set forth in this Agreement or in the SG Privacy Policy its negligence or willful misconduct, SG assumes no responsibility or liability for Licensee Data, and Licensee shall be solely responsible for Licensee Data and the consequences of using, disclosing, storing, or transmitting it. Governing Law, Jurisdiction and Costs SG SaaS Subscription Agreement This Agreement is governed by the laws of Delaware, without regard to Delaware's conflict or choice of law provisions. All disputes arising under this Agreement must be heard in State or Federal courts located in the State of Delaware. Headings Headings of sections in this Agreement are inserted for convenience only, and are in no way intended to limit or define the scope and/or interpretation of this Agreement. Amendments SG may amend this agreement at any time. Such amendments shall be effective as of the date of notice to Licensee. Notice to Licensee shall include requiring Licensee to renew its acceptance and agreement to the terms of this Agreement by selecting the "Accept" option after logging in to the Software Product with a registered user ID and password. Severability If any provision of this Agreement shall be held to be invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect. To the extent any express or implied restrictions are not permitted by applicable laws, these express or implied restrictions shall remain in force and effect to the maximum extent permitted by such applicable laws. IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above. Sustainable Generation, Inc. Licensee: BUYER Name BY: (Signature) (Name) (Date) BY: (Signature) (Name) (Date) SG SaaS Subscription Agreement Attachment A SG Software Product Description Compost Control System (CCS) Software • Controls the CCS hardware stack which consists of CPU's, micro controllers, sensors, and relays. o For use with SG BunkerTM System with GORE® Covers o For use with positive aeration o Internet enabled control system with continuous monitoring and logging o Programmable and manual operation modes selected via user interface ■ Programmable Mode- User sets operating times for blower -on and blow -off ■ Manual Mode- User can turn blower on or off manually via software ■ Backup - Automatic based on time or manual (backup any time) • Compost Server Software o Controls the data acquisition and storage for the CCS o Management Framework for data ■ Provides data storage through a local stored database. ■ Custom network protocol for communications between control system and CCS. ■ Remote access for service for patching and firmware updates both server and control systems. ■ Control systems (Bunker) ■ Backup and restore services for all collected data ■ Reporting facility to generate regulatory reports. o End user access to data through User Interface o Basic reporting ability ■ One report for each day for: Record date, heap ID, bunker location, 5 temperature values, average temperature, blower state Temperatures, phase of heap, Regulatory reporting for PFRP. Reports are non-editable PDF format o Basic monitoring of compost process ■ Near real time reporting of. date, time, temperature, location, operating mode o Controls network for PCU' S o Provides remote ability for servicing the environment o Remote delivered software updates when they are made generally available by SG such as flashing micro controllers and software patches. • Process Control Unit (PCU) Software o Acquires 5 point temperature sensor data from Temperature Probe o Acquires Oxygen sensor data from Oz Probe o Sends and receives data to server through CCS network SG SaaS Subscription Agreement CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 2/9/22 - 2/22/22 Check Date ------------------ 02/11/2022 Check -------------------------- EFT1636 Vendor Name -------------------------------------------------------- EFTPS Description - Payroll 1/23/22 --2/5/------------------------------------------ Payroll 1/23/22 - 2/5/22 Amount ------------6,78 .94 66,781.94 02/11/2022 EFT1637 Child Support Payroll 1/23/22 - 2/5/22 415.78 02/11/2022 EFT1638 MN Dept of Revenue Payroll 1/23/22 - 2/5/22 13,035.23 02/11/2022 EFT1639 Provident Life Payroll 1/23/22 - 2/5/22 501.36 02/11/2022 EFT1640 PERA Payroll 1/23/22 - 2/5/22 56,950.93 02/11/2022 EFT1641 Further HSA Payroll 1/23/22 - 2/5/22 14,473.03 02/11/2022 EFT1642 Mission Square Payroll 1/23/22 - 2/5/22 3,647.36 02/11/2022 EFT1643 VOYA Payroll 1/23/22 - 2/5/22 460.00 02/11/2022 EFT1644 MNDCP Payroll 1/23/22 - 2/5/22 350.00 02/11/2022 102459 Manual Employee Check Payroll 1/23/22 - 2/5/22 310.71 02/11/2022 102460 Manual Employee Check Payroll 1/23/22 - 2/5/22 170.05 02/11/2022 102461 Life Ins - NCPERS Payroll 1/23/22 - 2/5/22 288.00 02/11/2022 102462 HART Payroll 1/23/22 - 2/5/22 298.50 02/14/2022 102463 MINNESOTA DEPTOF HEALTH JUSTIN RUSCH OP EXAM APP- WATER 32.00 02/14/2022 102464 MINNESOTA POLLUTION CONTROL AGENCY GEOFFREY HANSEN WW CERT EXAM - WWTP 55.00 02/22/2022 102465 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 914.39 02/22/2022 102466 ACE HARDWARE - 1790 KEYS, CUT-OFFS, BLADES - FIRE 33.50 02/22/2022 102467 ACOMA ACORNS 4H CLUB BIO BAG DISTRIBUTION - REFUSE 500.00 02/22/2022 102468 ACTIVE NETWORK LLC PRCE SOFTWARE 28,467.50 02/22/2022 102469 ADVANCED ENGINEERING & ENVIRONMENTA JAN WWTF & WTP SCADA DESIGN 6,977.36 02/22/2022 102470 ALLIED ELECTRONICS INC ORION FANS - WWTP 57.22 02/22/2022 102471 ALLIED PRODUCTS NYLON FLAGS - POLICE 32.34 02/22/2022 102472 ALLINA HEALTH SYSTEM FIRST RESPONDER TRAINING CLASS - FIRE 889.91 02/22/2022 102473 ALPHA TRAINING&TACTICS LLC TACTICAL ARMOR, POUCHES - POLICE 5,939.53 02/22/2022 102474 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 196.76 02/22/2022 102475 AMERICAN PUMP COMPANY REPAIR LABOR & MATERIALS - WWTP 2,646.28 02/22/2022 102476 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING/BOARDING FEES - POLICE 479.00 02/22/2022 102477 ARAMARK 2/7 SUPPLIES & SERVICE - LIQUOR HUTCH 196.09 02/22/2022 102478 ARROW BUILDING CENTER 2 X 10 LUMBER FOR PICNIC TABLES- PARKS 1,450.44 02/22/2022 102479 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,072.35 02/22/2022 102480 ASPEN EQUIPMENT CO RESCUE 8 UTILITY BOX- FIRE 19,843.00 02/22/2022 102481 ATLAS BUSINESS SOLUTIONS SCHEDULEANYWHERE LICENSE - POLICE 928.80 02/22/2022 102482 AUTO VALUE - GLENCOE EQUIPMENT PARTS - HATS 386.72 02/22/2022 102483 BALDWIN SUPPLY COMPANY BAGGER #22 OPEN END BELTINGS - CREEKSIDE 450.43 02/22/2022 102484 BECKER ARENA PRODUCTS POLYCARBONATE - ARENA 1,344.40 02/22/2022 102485 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 2,199.04 02/22/2022 102486 BENEFIT EXTRAS INC JAN COBRA/RETIREE BILLING 43.50 02/22/2022 102487 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 393.24 02/22/2022 102488 BRANDON TIRE CO SLIDER MOWER REPAIR - PARKS 388.46 02/22/2022 102489 BRAUN INTERTEC CORP ARENA & POLICE FACILITY PROJECTS 2,982.80 02/22/2022 102490 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 18,713.30 02/22/2022 102491 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 36,629.57 02/22/2022 102492 CARD SERVICES MISC SUPPLIES - POLICE 183.14 02/22/2022 102493 CARS ON PATROL SHOP LLC VEHICLE REPAIRS & TOWS - POLICE 1,145.20 02/22/2022 102494 CARTER, DEACON REIMB: SAFETY FOOTWEAR - PARKS 94.99 02/22/2022 102495 CENTRAL HYDRAULICS REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,572.37 02/22/2022 102496 CENTRAL MCGOWAN ACETYLENE, HIGH PRESSURE - MULTIPLE DEPTS 185.54 02/22/2022 102497 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 324.70 02/22/2022 102498 COKER COMPOSTING AND CONSULTING SUPPORT TO CASP IMPLEMENTATION - CREEKSIDE 900.00 02/22/2022 102499 COLORBIOTICS LLC MULCH -COMPOST 16,187.00 02/22/2022 102500 CONTEGRITY GROUP NEW POLICE FACILITY THRU 2/1/22 28,829.30 02/22/2022 102501 COREMARK METALS HR STEEL FLAT, TUBES, ANGLES, CHANNELS - HATS 1,625.65 02/22/2022 102502 CROW RIVER PRESS INC HFD ANNUAL REPORT- FIRE 90.16 02/22/2022 102503 CULLIGAN WATER NEW POLICE FACILITY THRU 2/1/22 34.55 02/22/2022 102504 CUSTOM INSTALLATIONS TILE REPAIR - WATERPARK 3,271.66 02/22/2022 102505 CUSTOMIZED FIRE RESCUE TRAINING INC 145 HR COURSE - FIRE 5,480.00 02/22/2022 102506 DALBOL FLOWERS & GIFTS PLANT FOR FUNERAL 49.99 02/22/2022 102507 DOG -ON -IT -PARKS BAGS - PARKS 184.00 02/22/2022 102508 DRIVERS LICENSE GUIDE CO 2022 ID CHECKING GUIDE - MV 31.95 02/22/2022 102509 DVS RENEWAL TAB RENEWALS - MULTIPLE DEPTS 1,102.50 02/22/2022 102510 VOID VOIDED CHECK - 02/22/2022 102511 VOID VOIDED CHECK 02/22/2022 102512 VOID VOIDED CHECK - 02/22/2022 102513 E.G. RUD & SONS INC. NEW POLICE FACILITY THRU 2/1/22 580.50 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 2/9/22 - 2/22/22 Check Date ------------------ 02/22/2022 Check -------------------------- 102514 Vendor Name -----------R,ICA---------------------------------------- E2 ELECTRICAL SERVICES INC Description VARI------REPAIRS-------TIPL---------------------------------- VARIOUS REPAIRS -MULTIPLE DEPTS Amount --------------707. 7 4,707.47 02/22/2022 102515 ECOLAB PEST ELIMINATION PEST CONTROL- POLICE 64.93 02/22/2022 102516 EMERGENCY AUTOMOTIVE TECH SQUAD CAR EMERGENCY EQUIPMENT 2,675.30 02/22/2022 102517 EVOQUA WATER TECHNOLOGIES, LLC SHEAR PINS - WATER 61.32 02/22/2022 102518 FALCON MECHANICAL NEW POLICE FACILITY THRU 2/1/22 PAY#4 68,306.01 02/22/2022 102519 FARM -RITE EQUIPMENT COUPLERS - PARKS 182.10 02/22/2022 102520 FASTENALCOMPANY REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 859.89 02/22/2022 102521 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 476.74 02/22/2022 102522 FOBBE ELECTRIC NEW POLICE FACILITY THRU 2/1/22 PAY#4 11,637.50 02/22/2022 102523 FOSTER MECHANICAL INSTALLATION & SERVICE - MULTIPLE DEPTS 1,374.74 02/22/2022 102524 FURTHER February 2022 HSA/FSA Adm. Fees 403.00 02/22/2022 102525 GRAHAM TIRE & SERVICE TRUCK #7 TIRES - FIRE 2,990.08 02/22/2022 102526 GRAINGER REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 590.35 02/22/2022 102527 HACH COMPANY CHEMICALS - WWTP 879.76 02/22/2022 102528 HANSEN GRAVEL INC. SNOW REMOVAL- STREETS 3,768.00 02/22/2022 102529 HEATER RENTAL SERVICES LLC NEW POLICE FACILITY THRU 2/1/22 1,928.00 02/22/2022 102530 HILLYARD / HUTCHINSON SUPPLIES & REPAIR - MULTIPLE DEPTS 828.46 02/22/2022 102531 HOISINGTON KOEGLER GROUP INC JAN GROWTH AREA PLANNING/SPLASH PAD DESIGN 7,273.75 02/22/2022 102532 HOLT MOTORS INC 2018 EXPLORER REPAIR - POLICE 390.58 02/22/2022 102533 HOLT-PETERSON BUS 3/16 CHANHASSEN - SR TRIP 660.00 02/22/2022 102534 HUTCHINSON CO-OP JAN FUEL & PROPANE FOR NEW PD - MULTIPLE DEPTS 15,619.35 02/22/2022 102535 HUTCHINSON HEALTH TESTING -COMPOST 349.00 02/22/2022 102536 HUTCHINSON HRA TIF: ASHLEY RAMIREZ 435.00 02/22/2022 102537 HUTCHINSON LEADER JAN ADVERTISING - MULTIPLE DEPTS 1,108.45 02/22/2022 102538 HUTCHINSON UTILITIES UTILITIES 1/1 - 2/1-22 118,386.65 02/22/2022 102539 HUTCHINSON WHOLESALE #1550 EQUIPMENT PARTS - MULTIPLE DEPTS 480.92 02/22/2022 102540 HUTCHINSON WHOLESALE #1552 EQUIPMENT PARTS - PARKS 495.97 02/22/2022 102541 HUTCHINSON WHOLESALE #2520 EQUIPMENT PARTS - FIRE 107.88 02/22/2022 102542 HUTCHINSON, CITY OF JAN 2022 STORM DRAINAGE 5,744.90 02/22/2022 102543 1 & S GROUP, INC. REC CENTER IMPRV: SERVICES THRU 1/31/22 334.40 02/22/2022 102544 ICE SPORTS INDUSTRY SHOW/EXHIBITION -ARENA 25.00 02/22/2022 102545 IDEAL SERVICE INC SOUTH PRESS VFD REPAIR - WWTP 532.50 02/22/2022 102546 IDEXX LABORATORIES COLILERT, QUANTI-TRAYS - WWTP 1,184.52 02/22/2022 102547 INGSTAD BROADCASTING KDUZ: JAN ADV - LIQUOR HUTCH 375.00 02/22/2022 102548 INNOVATIVE OFFICE SOLUTIONS LLC PAPER, TOWELS - LIQUOR HUTCH 224.50 02/22/2022 102549 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES - HATS 505.80 02/22/2022 102550 INTERSTATE DISTRIBUTION & MFG EQUIPMENT PARTS FOR COMPOST BAGGER 1,346.64 02/22/2022 102551 JACK'S UNIFORMS & EQUIPMENT DUTY BELTS, PANTS, SHIRTS - POLICE 1,309.97 02/22/2022 102552 JAY MALONE MOTORS PARTS & REPAIRS - MULTIPLE DEPTS 1,011.95 02/22/2022 102553 JEPSEN, SARA UB refund for account: 2-620-5050-6-01 47.93 02/22/2022 102554 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 26,306.78 02/22/2022 102555 JUUL CONTRACTING CO PERMIT REFUND - BLDG 51.00 02/22/2022 102556 KJOHNSON CONSTRUCTION INC NEW POLICE FACILITYTHRU 2/1/22 PAY#5 9,076.29 02/22/2022 102557 KENNEDY SCALES INC SERVICE CALL & REPAIR - REFUSE 2,685.11 02/22/2022 102558 KENT,JOHN REIMB:BIOSOLIDSTRAINING -WWTP 133.24 02/22/2022 102559 KERI'S CLEANING & HANDYMAN SERVICES FIRE DEPT WINDOW CLEANING -CC 225.00 02/22/2022 102560 KEVITT EXCAVATING LLC NEW POLICE FACILITY THRU 2/1/22 PAY #5 73,150.00 02/22/2022 102561 KOHLS SWEEPING SERVICE PILING CONCRETE - CREEKSIDE 195.00 02/22/2022 102562 KRANZ LAWN & POWER CLEARING SAW - STREETS 1,299.97 02/22/2022 102563 L & P SUPPLY CO CLUTCH DRUM ASSY KIT, CHARGER - STREETS 99.98 02/22/2022 102564 LING, CALEB UB refund for account: 3-730-4200-3-03 3.54 02/22/2022 102565 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 30,019.15 02/22/2022 102566 LOGIS FEB SUP-GIS BASE & SERV - MULTIPLE DEPTS 8,722.75 02/22/2022 102567 LYNDE & MCLEOD INC. JAN YARDWASTE ACTIVITY - COMPOST 4,240.14 02/22/2022 102568 MADDEN GALANTER HANSEN LLP JAN LABOR RELATION SERVICES 171.00 02/22/2022 102569 MAHONEY, PATRICK & TERESA UB refund for account: 1-295-0320-4-00 26.52 02/22/2022 102570 MARCO TECHNOLOGIES, LLC JAN PRINTING CONTRACTS -MULTIPLE DEPTS 561.16 02/22/2022 102571 MARCO TECHNOLOGIES, LLC JAN PRINTING CONTRACTS -MULTIPLE DEPTS 249.15 02/22/2022 102572 MARTIN-MCALLISTER PUBLIC SAFETY ASST: B LIETZAU - POLICE 600.00 02/22/2022 102573 MATHESON TRI-GAS INC HIGH PRESSURE - WWTP 28.37 02/22/2022 102574 MAVERICK WINE COST OF GOODS SOLD - LIQUOR HUTCH 2,126.02 02/22/2022 102575 MCLEOD COUNTY FAIRGROUNDS DEC COURT RENTAL- REC 120.00 02/22/2022 102576 MCLEOD COUNTY RECORDER RELEASE OF MORTGAGES - EDA 184.00 02/22/2022 102577 MEDICA MARCH MEDICAL INSURANCE 143,252.59 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 2/9/22 - 2/22/22 Check Date ------------------ 02/22/2022 Check -------------------------- 102578 Vendor Name -------------------------------------------------------- MEI TOTAL ELEVATOR SOLUTIONS Description FEB-MAR --------------------------------------- FEB-MAR SERVICE -LIBRARY Amount --------------208. 7 208.17 02/22/2022 102579 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 535.25 02/22/2022 102580 MESSNER, SANDRA PATCHES, BUTTONS REPAIR - POLICE 25.00 02/22/2022 102581 MINI BIFF RENTALS -MULTIPLE DEPTS 341.45 02/22/2022 102582 MINNESOTA DEPT OF COMMERCE 1/31 INSPECTION -CREEKSIDE 331.50 02/22/2022 102583 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - WWTP 1,090.30 02/22/2022 102584 MOHAWK LIFTS LLC TIRE CHANGER/BALANCER, LIFTS, TOOLS - HATS 20,654.33 02/22/2022 102585 MTI DISTIBUTING, INC. FILTERS, BLADES, OIL, SERVICE - PARKS 1,664.33 02/22/2022 102586 NILES, JIM REIMB: MAINT SUPPLIES - LIQUOR HUTCH 73.30 02/22/2022 102587 NORTHERN SAFETY TECHNOLOGY SUPER -LED BEACON -AIRPORT 104.40 02/22/2022 102588 NORTHERN STATES SUPPLY INC EQUIPMENT PARTS - HATS 582.21 02/22/2022 102589 NSF - MSF TOURNAMENT FEE - REC 55.00 02/22/2022 102590 NUVERA FEB PHONE SERVICES - MULTIPLE DEPTS 5,846.28 02/22/2022 102591 O'REILLYAUTO PARTS MUSCLE MAGIC, PRIMER, ACTIVATOR- PARKS 143.76 02/22/2022 102592 OFFICE DEPOT OFFICE SUPPLIES - MULTIPLE DEPTS 56.43 02/22/2022 102593 PAAPE DISTRIBUTING COMPANY NEW POLICE FACILITY THRU 2/1/22 PAY#1 12,092.41 02/22/2022 102594 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,831.00 02/22/2022 102595 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 3,217.15 02/22/2022 102596 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 32,132.55 02/22/2022 102597 PIETSCH CONSTRUCTION INC NEW POLICE FACILITY THRU 2/1/22 PAY#3 22,800.00 02/22/2022 102598 PLUMBING & HEATING BYCRAIG TIF: ASHLEY RAMIREZ- HRA 4,350.00 02/22/2022 102599 PLUNKETTS PEST CONTROL PEST CONTROL - ARENA 115.60 02/22/2022 102600 POSTMASTER MAR SR NEWSLETTER 116.00 02/22/2022 102601 PREMIUM WATERS 5 GALLONS - PARKS 27.00 02/22/2022 102602 PRO AUTO MN INC OIL CHANGE,MUDGUARDS - COMPOST TRUCK 268.14 02/22/2022 102603 QUADE ELECTRIC EQUIPMENT PARTS - MULTIPLE DEPTS 670.85 02/22/2022 102604 QUILLCORP OFFICE SUPPLIES - MULTIPLEDEPTS 545.81 02/22/2022 102605 REINER ENTERPRISES INC 1/31 MAPLE GROVE TO CREEKSIDE 280.00 02/22/2022 102606 REVIER WELDING STEEL BAR, DOM - STREETS 276.20 02/22/2022 102607 ROLLING FORKS VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 154.32 02/22/2022 102608 ROYAL WASH HOUSE 1/4 SERVICES - EVENT CENTER 68.93 02/22/2022 102609 RUNNING'SSUPPLY BELT - HATS 13.79 02/22/2022 102610 SAFEASSURE CONSULTANTS INC 2022 SAFETY TRAINING 8,959.75 02/22/2022 102611 SANDSTEDE, ROBERT/VALEN, JANET UB refund for account: 1-680-0350-4-03 41.83 02/22/2022 102612 SCHRUPP, SCOTT UB refund for account: 3-330-3440-0-00 58.68 02/22/2022 102613 SIMONSON APPRAISALS 1ST HALF APPRAISAL REPORT FEES 4,750.00 02/22/2022 102614 SNAP -ON INDUSTRIAL SCAN TOOL SOFTWARE SUBSCRIPTION - HATS 1,201.64 02/22/2022 102615 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 10,901.31 02/22/2022 102616 SPARTAN STEEL ERECTORS INC NEW POLICE FACILITY THRU 2/1/22 PAY #2 4,522.00 02/22/2022 102617 SRF CONSULTING GROUP S GRADE RD @ DALE ST IMPRV - ENG 1,485.13 02/22/2022 102618 STANDARD PRINTING-N-MAILING POSTAGE, SUPPLIES -MULTIPLE DEPTS 2,640.84 02/22/2022 102619 STAPLES ADVANTAGE OFFICE SUPPLIES - MULTIPLE DEPTS 619.93 02/22/2022 102620 STREICH TRUCKING 1/31 - 2/9 CREEKSIDE FREIGHT 1,400.00 02/22/2022 102621 SUN LIFE FINANCIAL JANUARY DENTAL CLAIMS 11,745.90 02/22/2022 102622 TALL SALES COMPANY JAN CREEKSIDE COMMISSIONS 7,442.72 02/22/2022 102623 THOMPSON, MITCHELL REIMB: SAFETY FOOTWEAR -STREETS 175.00 02/22/2022 102624 THOMSON REUTERS-WEST JAN ONLINE/SOFTWARE SUBS - POLICE 149.90 02/22/2022 102625 TITAN MACHINERY REPAIRACCIDENT DAMAGE FORAIRPORTTRACTOR 15,644.86 02/22/2022 102626 TRI COUNTY WATER BOTTLE WATER DELIVERY- MULTIPLE DEPTS 280.90 02/22/2022 102627 TRUE BRANDS COST OF GOODS SOLD - LIQUOR HUTCH 92.16 02/22/2022 102628 UNITED PACKAGING & DESIGN SLIP SHEETS - COMPOST 10,955.00 02/22/2022 102629 USA BLUE BOOK STRAP WRENCH - WATER 108.82 02/22/2022 102630 VALLEY SALES OF HUTCHINSON UTILITY 5: LAMP - FIRE 35.02 02/22/2022 102631 VERIZON WIRELESS DEC 24 -JAN 23 PHONE SERVICES 3,823.08 02/22/2022 102632 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 12,401.60 02/22/2022 102633 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 364.30 02/22/2022 102634 VIVID IMAGE UPDATE LINKS, PLUGINS - IT 422.50 02/22/2022 102635 VOS CONSTRUCTION INC NEW POLICE FACILITY THRU 2/1/22 S,193.50 02/22/2022 102636 WASTE MANAGEMENT OF WI -MN REFUSE DISPOSAL FEES TO LANDFILL 6,024.99 02/22/2022 102637 WATER CONSERVATION SERVICE INC JAN LEAK LOCATE - WATER 488.55 02/22/2022 102638 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 147.30 02/22/2022 102639 WELCOME NEIGHBOR NEW RESIDENT VISITS - LIQUOR HUTCH 60.00 02/22/2022 102640 WELLS FARGO BANKS FINAL ACCOUNT ANALYSIS FEES 8,508.39 02/22/2022 102641 WEST CENTRAL SANITATION INC. JAN REFUSE - MULTIPLE DEPTS 50,249.61 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 2/9/22 - 2/22/22 Check Date ------------------ 02/22/2022 Check -------------------------- 102642 Vendor Name -------------- PA N--Y-,--T-H--E WINE COMPANY, THE Description ---------------------OLD--LIQU---------------------------------- COST OF GOODS SOLD -LIQUOR HUTCH Amount ------------1,04 .15 1,046.15 02/22/2022 102643 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 2,093.66 02/22/2022 102644 WOLD ARCHITECTS & ENGINEERS NEW POLICE FACILITY THRU 1/31/22 5,361.77 02/22/2022 102645 ZOLL MEDICAL CORPORATION AED BATTERY- FIRE 398.00 Total - Check Disbursements: $ 1,209,476.34 Department Purchasing Card Activity - January 2022 Date Department Vendor Name Description Amount 01/14/2022 CREEKSIDE DEPT KWIKTRIP B Kobow lunch MNLA show 1/12/22 $11.26 01/12/2022 CREEKSIDE DEPT CASEY'S Employee error, used wrong card, pd cash to correct $5.38 01/12/2022 CREEKSIDE DEPT SPOTHERO MNLA show parking 1/13/22 $5.75 01/12/2022 CREEKSIDE DEPT SPOTHERO MNLA show parking 1/12/22 $5.75 01/07/2022 CREEKSIDE DEPT SPS COMMERCE Dec 2020 SPS fees; UH & Bomgaars $256.00 01/28/2022 EDA DEPT MUDDY COW HUTCHINSON Lunches for EDA Board $146.34 01/27/2022 EDA DEPT CASH WISE FOODS Condiments for meetings $3.79 01/21/2022 EDA DEPT MID-AMERICA ECONOMIC DVLP Annual Membership $300.00 01/21/2022 EDA DEPT INBIA Book "Best Practices in Rural Business Incubation" $45.00 01/20/2022 EDA DEPT SUBWAY Lunches for Finance Team meeting $84.94 01/19/2022 EDA DEPT CASH WISE FOODS Beverages for board meetings $12.97 01/11/2022 EDA DEPT ECONOMIC DEVELOPMENT ASSN OF MN EDAM winter conference $315.00 01/07/2022 EDA DEPT DEED MN TRADE OFFICE MN Marketing Partnership annual membership $700.00 01/07/2022 EDA DEPT JIMMYS PIZZA Lunches for EDA Board $80.32 01/31/2022 FINANCE DEPT EZBUSINESS FEE Credit Card Service Fee $15.00 01/23/2022 FINANCE DEPT AMAZON Civic Arena - lighting supplies $124.25 01/20/2022 FINANCE DEPT AMAZON Finance - Check endorsement stamp $13.99 01/20/2022 FINANCE DEPT AMAZON UB - Check endorsement stamp $13.99 01/18/2022 FINANCE DEPT AMAZON Liquor - 40 LED light tubes $227.80 01/16/2022 FINANCE DEPT AMAZON Finance - power strip $29.99 01/10/2022 FINANCE DEPT AMAZON City Center - paper, folders & tape $58.15 01/07/2022 FINANCE DEPT WAL-MART City Center - soda for vending machine $42.78 01/07/2022 FINANCE DEPT AMAZON City Center - pens $12.11 01/06/2022 FINANCE DEPT AMAZON City Center - pens $41.49 01/06/2022 FINANCE DEPT AMAZON City Center -writing pads $8.99 01/05/2022 FINANCE DEPT AMAZON Admin - self inking rubber stamp $15.25 01/04/2022 FINANCE DEPT AMAZON City Center - sticky notes $8.31 01/04/2022 FINANCE DEPT AMAZON DMV - envelopes for license plates $42.00 01/21/2022 FIRE DEPT USPS Shipping for leather helmet front $9.45 01/16/2022 FIRE DEPT AUTOMATIONDIRECT.COM Air fittings for station air supply for trucks $33.98 01/07/2022 FIRE DEPT PIER B RESORT Room reservations in Duluth for fire officer school $179.98 01/07/2022 FIRE DEPT PIER B RESORT Room reservations in Duluth for fire officer school $179.98 01/07/2022 FIRE DEPT PIER B RESORT Room reservations in Duluth for fire officer school $179.98 01/07/2022 FIRE DEPT PIER B RESORT Room reservations in Duluth for fire officer school $179.58 01/05/2022 FIRE DEPT DEE S FLORAL AND IGNS Flowers -Abelson mother funeral $75.16 01/02/2022 FIRE DEPT KWIK TRIP Fuel -from trip to bloomington for rescue 8 box install $11.00 01/28/2022 IT DEPT AMAZON Scanner Stand $19.99 01/25/2022 IT DEPT AMAZON USB Extention Cables $35.34 01/20/2022 IT DEPT AMAZON Ergonomic Keyboard $59.99 01/14/2022 IT DEPT AMAZON Gaffing Tape $43.99 01/13/2022 IT DEPT AMAZON Gaffing Tape $82.97 01/11/2022 IT DEPT AMAZON Wireless Keyboard $24.99 01/10/2022 IT DEPT AMAZON Wireless Keyboard $24.99 01/10/2022 IT DEPT AMAZON Wireless Network Adapters $59.97 01/09/2022 IT DEPT AMAZON Uplift desk Chad $229.99 01/07/2022 IT DEPT AMAZON TV Wallmount Creekside $25.19 01/05/2022 IT DEPT BESTBUY TV Creekside $199.99 01/05/2022 IT DEPT BESTBUY Web Cam Mike Schumann $69.99 01/05/2022 IT DEPT FLAGSHIP TECHNOLOGIES Tape Drive Magazine $405.02 01/05/2022 IT DEPT AMAZON Scanner $832.04 01/02/2022 IT DEPT AMAZON MiniPC $229.99 01/02/2022 LIQUOR HUTCH DEPT FACEBOOK Facebook advertising 2021 expense $234.33 01/23/2022 PARK & REC DEPT RIVERSIDE INN Senior Tours - Luncheon Concert Ticket (42 participants) $1,890.00 01/21/2022 PARK & REC DEPT NRPA OPERATING Lynn Neumann CPRP Renewal $75.00 01/11/2022 PARK & REC DEPT WHENIWORK.COM Staff Scheduling Software $84.00 Department Purchasing Card Activity-12knuary 2022 Date DepsMrn t Vmidor Name DewilWon Amount 01/07007.2 FIRE DEPT PIER B RESORT Room reservations in Duluth for fire officer school �119.A 01/05M22 FIRE DEPT DEE S FLORAL AND IGNS Flowers -Abelson mother funeral $75.16 01(WN22 FIRE DEPT KWIK TRIP Fuel - from trip to bfoonlington for rescue 8 box install $11.00 01/NnO22 IT DEPT AMAZON AMA70N (AMAZON 5mnmrStand $19.99 01/2512022 IT DEPT USB Extention Cables $35.34 0112012022 IT DEPT Ergonomic Keyboard $59.99 OV14M22 IT DEPT AMAWN Gaffing Tape $43.99 01/13M22 IT DEPT AMAZON raffing Tape $82.97 01JU/,2022 IT DEPT AMAZON Wrrela5s Keyboard $24.99 01/101Z022 IT DEPT AMAZON Wlmless Keyboard $24.99 0111012022 IT DEPT AMAZON Wifeless Network Ada r5 $59.97 010/2022 IT DEPT AMAZON Upllftdesk Chad $229.99 01,/07M22 IT DEPT AMAZON TV Wallmount Creekside $25.19 01/0512022 IT DEPT BESTBUY TV Creekside $199.99 411W,W.22 IT DEPT BESTBUY Web Cam Mike Schumann $69.99 OVW2022 IT DEPT FLAGSHIP TECHNOLOGIES Tope Drive MagazM6 $405.02 OV0512022 IT DEPT MAMN: Scanner $832.04 OV0212022 IT DEPT AMAZON MiniPC $229.99 OV02M22 LIQUOR HUTCH DEPT FACEBOOK Facebook aduertlsin92021 expense $234.33 01/2312022 PARK & REC DEPT RIVERSIDE INN Senior Tours- Luncheon Concert Ticket 142 partiripantsi $1,890.00 01/2112022 PARK & REC DEPT NRPA OPERATING Lyrm Neumann CPRP Renewal $75.00 01/11/7922 PARK & REC DEPT WHENIW0FXC0M Staff 5thedultngSoftware $84.00 01/W2022 PARK & REC DEPT AMAZON MW Chair $98.99 01/159f,W22 PARK & REC DEPT AMAZON Disposable Face Masks $74.95 GV07M22 PARK & REC DEPT MN RECREATION AND PARK ASSOC Lyryrr Neumann 118&tratGbn for MRPA Annual Meeting $55.00 0110712022 PARK & REC DEPT MN RECREATION AND PARK ASSOC Sara Witte Registration for MRPA Annual Mftting $55.00 (11104/2022 PARK & REC DEPT AMAZON Pickleballs $60.58 01/16{1p22 PLANNING DEPT SEARS Filter for W igerator drtnkrng water $59.99 01,/26M22 POLICE DEPT AMAZON File folders $18.99 0106/2022 POLICE DEPT AMAZON File labels $14.95 01J107I2022 POLICE DEPT IAMAWN Car-ndar $11.48 01IW2022 POLICE DEPT IMINNESOTA SHERIFFS' ASSOCIATION Training $150.00 01/0 12022 POLICE DEPT MINNESOTA SHERIFFS' ASSOCIATION Tralriing $450.00 01/07/2022 POLICE DEPT AMA2.ON Caiendat $7.39 01/2312022 PUBLIC WORKS DEPT NATIONAL PEN CO LLC Pens & Tools to give away r at tours & from promotion $263.92 01{2 /IM2.2 PUBLIC WORKS DEPT NATIONAL PEN CO LLC Pens & Tools to glVe away at tours & from PfUfn0tlDn $157.22 01,/14M22 PUBLIC WORKS DEPT MINNESOTA POLLUTION CONTROL AGENCY lype 40' License Refresher $2.49 01/1612022 PUBLIC WORKS DEPT MINNESOTA POLLUTION CONTROL AGENCY Type 40' License Refresher $100.00 0111412022 PUBLIC WORKS DEPT EBAY 2 insertion rnagrnetersto meter Ferazur 1 & 2 flows $1,684.00 0111IM22 PUBLIC WORKS DEPT AMA20N 2 Confined 5paceA&Afeer Clhnhingharnesses $381.96 01/0912022 PUBLIC WORKS DEPT ATTSA Cx"ffr,!je Hansen & Josh Alnes ATSSA traffic safety conf $330.00 01/0912022 PUBLIC WORKS DEPT RODEWAY INN OF FARGO GnefFreV Hansen & Josh Alnes ATSSA traffic safety conf $110.82 0VW;,922 IPUBLIC WORKS DEPT 1EBAY Flame Ampld#ler Module for #90 Boiler - used $74.99 01/0#{2U22 IPUBLIC WORKS DEPT JEBAY Compf to Burner control for #90 Boiler - used $935.00 Total- P-Cards: 1 1 $13,201,20 cR HUTCHINSON CITY COUNCIL V"' ITCHINSON Request for Board Action A CITY ON PURPOSE. 2021 Planning, Zoning, Building Department Annual Update Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Communications, Requests Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: I will be giving a presentation regarding the 2021 Planning, Zoning and Building Annual Report at the Council Meeting. I have attached some key information from the annual report for your review. Please let me know if you have questions. Thank you, Dan BOARD ACTION REQUESTED: None. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A ADDENDA CITY OF HUTCHINSON COUNT OF B UILDINGIPL UMBINGIMECHANICAL PERMITS ISSUED AND VALUATION 2021 Total Number Inspections ' Building Permits Issued by Type 2,099 _ Year to Date Number Permits & Valuation Commercial new 6 - $6,365,988 Commercial Additions/ Remodels 69 - $14,249,704 Industrial new 0 - $0 Industrial Additions/Remodels 5 - $4,837,424 Fire Sprinkling 25 - $572,036 Total New Residential Units (Single Family, twins, townhomes 35 - $7,397,267 Residential misc. additions, repairs, remodels, etc 117- $924,504 Set fee permits reside, reroof, window replacement, misc.* 456 HRA Building Permits 2- $0 Waived Fees 0- $0 Subtotal Buildinp Permits: 715 - $34,346,923 Mechanical 196 - $5,418,155 HRA Mechanical 0 - $0 Plumbing* 148 HRA Plumbing 0 Total Permits issued and valuation 1060 - $39,765,078 *Set fees not included in valuation Year -End Report — 2021 Planning/Zoning/Building Department - Page 11 Yearly Permit and Valuation Totals YEAR TOTAL NO. OF PERMITS TOTAL VALUATION 2021 Building 715 $34,346,923 Mechanical 197 $ 5,418,155 Plumbing 148 $ $39,765,078 2020 Building 839 $38,937,108 Mechanical 178 $ 2,495,764 Plumbing 137 $ $41,432,872 2019 Building 747 $42,560,147 Mechanical 198 $ 3,955,457 Plumbing 92 $ $46,515,604 2018 Building 1075 $40,161,512 Mechanical 239 $ 4,147,765 Plumbing 110 $ $44,309,277 2017 Building 1962 $60,949,672 Mechanical 232 $ 6,912,447 Plumbing 97 $ $67,862,119 2016 Building 788 $18,429,091 Mechanical 206 $ 1,000,062 Plumbing 94 $ $19,429,153 2015 Building 865 $13,690,216 Mechanical 166 $ 1,247,905 Plumbing 78 $ $14,938,121 2014 Building 779 $12,378,612 Mechanical 219 $ 1,821,629 Pluming 83 $ $14,200,241 2013 Building 879 $14,099,677 Mechanical 190 $ 898,781 Plumbing 70 $ $14,998,458 2012 Building 946 $ 6,670,152 Mechanical 168 $ 1,183,714 Plumbing 68 $ $ 7,854,157 2011 Building 919 $ 6,438,050 Mechanical 175 $ 2,240,584 Plumbing 55 $ $ 8,678,634 • Special permits are fixed fee permits for residential reshingle, resides, window replacements, and excavations, signs, manufactured homes, fences, moving, demolitions, decks, residential sheds, and fire sprinkler permits. Year -End Report — 2021 Planning/Zoning/Building Department - Page 12 New Residential Construction YEAR HOUSING TYPE BUILDINGS UNITS CONSTRUCTION COST 2021 Single Family Dwelling 35 35 $ 7,397,267 2020 Single Family Dwelling 36 36 $ 7,582,886 2019 Single Family Dwelling 23 23 $ 5,027,559 2018 Single family Dwelling 34 34 $ 6,486,684 2017 Single Family Dwelling 25 25 $ 4,972,795 Twinhomes 1 2 373,104 $ 5,234,899 2016 Single Family Dwelling 24 24 $ 4,722,278 Twin homes 3 6 895,100 $ 5,617,378 2015 Single Family Dwellings 20 20 $ 3,623,304 2014 Single Family Dwellings 23 23 $ 4,770,652 2013 Single Family Dwellings 12 12 $ 2,378,254 2012 Single Family Dwellings 5 5 $ 935,140 2011 Single Family Dwellings 4 4 $ 852,053 Year -End Report — 2021 Planning/Zoning/Building Department - Page 13 2021 Construction Activity NEW CONSTRUCTION STARTS Valuation New Homes $ 7,397,267 900 Cleveland Ave SW (bldg. 5) 1,720,666 880 Cleveland Ave SW (bldg. 6) 1,720,666 860 Cleveland Ave SW (bldg. 7) 1,720,666 250 Hackbarth St SE (solar array) 976,967 1100 Adams St SE (shooting range garage) 43,023 Detached Garages 581 Brown St SW 9,197 985 Jefferson St SE 16,177 557 Adams St SE 5,109 534 Juul Rd SW 20,438 559 Hassan St SE 20,174 615 Hassan St SE 19,885 36 5ch Ave NE 18,622 605 2"d Ave SW 12,415 Total New Construction $13,701,272 COMMERCIAL AND INDUSTRIAL ADDITION AND REMODELS Police Facility 5,055,074 Uponor remodel 4,000,000 Riteway Addition 1,563,624 WWTF improvement 1,340,586 River Oaks Addition 1,178,057 River House Food & Drink 1,044,497 St. Anastasia Church remodel 570,000 Integrations Wellness W 500,000 Liquor Hutch separation 400,000 Resonetics remodel 335,000 McDonalds remodel 300,000 Goebel Fixture solar array 187,000 Walmart reroof 166,000 Integrations Wellness E 150,000 Total Addition and Remodel Work $16,789,838 All Other Commercial/Industrial Work 2,481,290 All Other Residential Work 802,487 Mechanical 5,418,155 Plumbing 0 Fire Sprinkler 572,036 Total Construction Valuation $ 39,765,078 Year -End Report — 2021 Planning/Zoning/Building Department - Page 14 City of Hutchinson New Housing Starts 2021 Site Address Sub Type Owner Name Valuation Contractor Issued Date 1587 9th Ave SW Single Family Castle Gate Construction Inc $341,160 Castle Gate Construction 01/08/2021 995 Texas Cir NW Single Family Bruce Naustdal $168,968 Bruce Naustdal 03/10/2021 1335 Southfork Dr SE Single Family Castle Gate Construction Inc. $227,011 Castle Gate Construction 03/15/2021 905 Texas Cir NW Single Family Bruce Naustdal $168,968 Bruce Naustdal 03/16/2021 472 Grant Ave SE Single Family Bonneville Land & Cattle $199,790 Utecht Construction 03/16/2021 468 Grant Ave SE Single Family Bonneville Land & Cattle $199,790 Utecht Construction 03/16/2021 165 Denver Ave SW Single Family Betker Builders, LLC $234,632 Betker Builders, LLC 04/06/2021 1419 Southfork Dr SE Single Family Wendroth Homes LLC $287,694 Wendroth Homes LLC 04/12/2021 850 Lakewood Dr SW Single Family Betker Homes Construction, LLC $335,483 Betker Homes Construction, LLC 04/20/2021 1323 Southfork Dr SE Single Family Castle Gate Construction Inc. $227,011 Castle Gate Construction Inc. 04/21/2021 412 Grant Ave SE Single Family Castle Gate Construction Inc. $231,700 Castle Gate Construction Inc. 04/29/2021 150 Detroit Ave SE Single Family Bruce Naustdal $212,095 Bruce Naustdal 05/07/2021 524 Southfork Cir SE Single Family Bonneville Land & Cattle $202,112 Utecht Construction 07/14/2021 1364 Southfork Dr SE Single Family Castle Gate Construction Inc $195,843 Castle Gate Construction Inc 08/03/2021 522 Southfork Cir SE Single Family Bonneville Land & Cattle $158,446 Utecht Construction 08/09/2021 433 Grant Ave SE Single Family Castle Gate Construction Inc $207,650 Castle Gate Construction Inc 08/23/2021 449 Grant Ave SE Single Family Castle Gate Construction Inc $213,938 Castle Gate Construction Inc 08/26/2021 520 Southfork Cir SE Single Family Bonneville Land & Cattle $176,973 Utecht Construction 08/30/2021 518 Southfork Cir SE Single Family Bonneville Land & Cattle $165,291 Utecht Construction 08/30/2021 416 Huron St SE Single Family Lifestyle Homes Litchfield $92,800 Lifestyle Homes Litchfield 09/07/2021 514 Southfork Cir SE Single Family Bonneville Land & Cattle $176,793 Utecht Construction 09/10/2021 516 Southfork Cir SE Single Family Bonneville Land & Cattle $208,884 Utecht Construction 09/10/2021 512 Southfork Cir SE Single Family Bonneville Land & Cattle $165,291 Utecht Construction 09/10/2021 116 Denver Ave SE Single Family Betker Builders LLC $214,448 Betker Builders LLC 09/14/2021 157 Denver Ave SE Single Family Betker Homes Construction LLC $234,068 Betker Homes Construction LLC 09/15/2021 400 Grant Ave SE Single Family Castle Gate Construction Inc $231,464 Castle Gate Construction Inc 09/17/2021 508 Southfork Cir SE Single Family Bonneville Land & Cattle $208,885 Utecht Constrution 10/21/2021 510 Southfork Cir SE Single Family Bonneville Land & Cattle $208,885 Utecht Constrution 10/21/2021 182 Eau Claire Ave SE Single Family Betker Homes Construction LLC $237,201 Betker Homes Construction LLC 10/28/2021 502 Southfork Cir SE Single Family Bonneville Land & Cattle $208,885 Utecht Constrution 11/03/2021 504 Southfork Cir SE Single Family Bonneville Land & Cattle $208,885 Utecht Constrution 11/03/2021 506 Southfork Cir SE Single Family Bonneville Land & Cattle $208,885 Utecht Constrution 11/03/2021 165 Eau Claire Ave SE Single Family First Class Builders Inc $202,189 First Class Builders Inc. 11/15/2021 124 Denver Ave SE Single Family Betker Builders, LLC $204,045 Bctker Builders, LLC 11/01/2021 105 Summerset Ln SE Single Family First Class Builders Inc $219,375 First Class Builders Inc 11/15/2021 New Construction Count 35 Total Valuation $7,397,267 Year -End Report - 2021 Planning/Zoning/Building Department - Page 15 Vacant Lots - January, 2021 Addition Zoning Year Availability Fairway Estates Addition R - 1 - PD 1999 5 Lots Park Meadows Addition R - 3 2005 0 Lots Bridgewater Estates Addition R - 1 2000 12 Lots Island View Heights Addition R - 2 - PD 2004 10 Lots Ravenwood West Addition R - 2 2005 3 Lots Summerset Addition R - 2, R - 3 2005 _ 36 Lots Southwind Addition R - 2 2003 0 Lots Southfork Addition R - 3 - PD 2004 19 Lots Kottke Court Replat to RiverPointe Villas R - 2 - PD 2008 10 Lots Santelman's Addition R - 3 - PD 1993 0 Lots Stearnwood Addition R - 1 2004 3 Lots Ravenwood R - 3 1999 0 Lot Hunter's Ridge Addition R - 2 2004 0 Lot Fraser Subdivision Addition R - 2 2005 1 Lot Excelsior Addition R - 2 2007 3 Lots Hellands Sixth Addition R - 2 1984 5 Lots White Hawk Village R - 3 2014 0 Lots Total 107 Lots Year -End Report — 2021 Planning/Zoning/Budding Department - Page 16 cR HUTCHINSON CITY COUNCIL H UT%4W"Wb H INS(: N Request for Board Action A CITY ON PURPOSE. Approval and Authorization to Sign Purchase Agreement on a portion of the Agenda Item: property at 205 Jefferson Street SE Department: Administration LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff has been in negotiations for the last couple of months with the owner of the property at 205 Jefferson Street SE (Breanna Chapman) for a portion of their back parking lot. This lot was identified in the 2017 Needs Assessment Facility Report on the Fire Station as a lot the City should consider for a future purchase to provide flexibity to the City for any potential future expansion of the Fire Station and/or to meet parking needs. The Fire Department's plan for this lot is to development it into a parking lot at this time to provide parking options for staff. The additional land will also provide flexibility for the future in case there is a desire to expand the current fire station. Staff is recommending approval of the purchase agreement. If approved, the montion should include authorization for the City Administrator to sign the purchase agreement and any future paperwork in relation to the purchase of this property. BOARD ACTION REQUESTED: Approve/Deny Purchase Agreement Fiscal Impact: $ 65,340.00 Funding Source: Capital Projects Fund FTE Impact: Budget Change: Yes 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REAL ESTATE PURCHASE AGREEMENT Parties. This Purchase Agreement is made and effective on the last date executed below by and between Breanna Chapman, an individual, "Seller", and the City of Hutchinson, a Minnesota municipal corporation, "Buyer". Offer/Acceptance. Seller agrees to convey real property (the "Property") in McLeod County, Minnesota, as indicated by the legal description described hereto: Lot 8 and the South 33 feet of the West Half of Lot 9, Block 25, South Half, Hutchinson Purchase Price and Terms. The purchase price for the property shall be sixty-five thousand three hundred forty and 00/100 dollars ($65,340.00) which the Buyer agrees to pay in cash or by certified check or bank draft on the date of the closing and upon delivery of the deed as hereinafter provided Closing Date and Contingencies. For a period of time up to the closing of this purchase agreement, Buyer shall have an opportunity to conduct investigations of the property as described below. Tile obligation of the Buyer to complete the transaction contemplated under this purchase agreement is specifically contingent on and the Buyer satisfying itself that there are no significant environmental or other problems affecting the property. The Buyer shall be the sole judge of the fitness of the condition of the property. The closing of this transaction shall take place within on or before March 31, 2022. Deed. At closing, Seller shall execute and deliver a Warranty Deed conveying title of record, subject to building and zoning laws, ordinances, state and federal regulations, exceptions to title which constitute encumbrances, restrictions or easements of record. Prior to closing, seller shall have removed any mortgages, financing or other monetary liens against the property. Assessments. Seller shall pay on the date of closing any deferred real estate taxes (including "green acres" taxes) under Minnesota Statute §273.1.11 or special assessments payment of which is required as a result of the closing of this sale. Real estate taxes due and payable in the year in which this transaction is closed shall be prorated between the Buyer and Seller. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. Seller's Lien Warrants. Seller warrants that there have been no labor or material furnished to the property for which payment has not been made. Condition of Property. Seller shall remove all debris and all personal property not included in this sale from the property before possession date. Seller has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the property. Upon execution of this purchase agreement, Seller will deliver to the Buyer true and correct copies of all records effecting the property and its ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in the Seller's possession or immediately available to Seiler. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the property by any person in violation of any law, nor of any underground storage tanks having been located on the property at any time. Notwithstanding Buyer's environmental investigations of the property, Seller does not warrant and represent to Buyer that there have been no acts or occurrences upon the property that have caused or could cause hazardous substances or petroleum products to be released or discharged into the subsoil or ground water of the property or other property in the area. Seller does not represent and warrant to Buyer that the property is free of hazardous substances and is not subject to any "superfund" type liens or claims by governmental regulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the property. Seller knows of no wetlands, flood plain, or shoreland on or affecting the property. Seller's warranties and representations contained in this section shall survive the delivery of the deed provided that any notice of a defect or claim of breach of warranty must be in writing. Any such notice with respect to matters referred to in this section must be given by the Buyer to the Seller within one year of the date of closing or they will be deemed waived. The conditions of the conveyance of this property set forth in the Price and Terms section of this agreement shall also survive the delivery of the deeds. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the property inspected. Other than the representations made in this paragraph, and by any contingencies, the property is being sold "AS IS" with no express or implied representations or warranties by the Seller as to physical conditions or fitness for any particular purpose. Disclosure of Notices. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. Should Seller receive notice of annexation proceedings, Seller agrees to cooperate with Buyer to annex the above -described land into the City of Hutchinson. Access Prior to Closing. By this purchase agreement, Buyer does not acquire any right of possession of the property, license, or easement. However, during the period from the date of the Purchase Agreement to the Closing Date, Buyer and its agents shall have access to the Property for completing such tests, studies, evaluations and other investigations as Buyer deems necessary. This right of entry shall also include the Buyer's agents, surveyors, engineers, and site evaluators for the purposes of testing, measuring and evaluating the condition of the parcel. Buyer shall indemnify and hold Seller harmless from any and all liens, claims, liabilities or charges incurred or caused by Buyer's contracts with surveyors, engineers, and site evaluators, which indemnity shall include any costs and disbursements incurred by Seller in any defense thereof. Possession. Seller shall deliver possession of the property not later than March 31, 2022 or the date of closing. Closing Costs and Prorations. Seller shall pay any state deed tax due and payable with respect to the Warranty Deed conveying the property. Real estate taxes, if any, due and payable for the Property the year in which the Closing occurs shall be prorated between Seller and Buyer as of the Closing Date. Buyer shall pay the costs of recording the conveyance instruments and the premium for any policy of title insurance which Buyer elects to purchase. All other costs and expenses with respect to the property shall be prorated between the Seller and Buyer as is customary as of the closing date. .each party shall pay its respective attorney's fees and professional costs with respect to the negotiation and closing of the purehasc. Seller shall pay any commission or fee payable to Seller's broker or agent if any. Records. Upon the execution of the Purchase Agreement, Seller will deliver to Buyer true and correct copies of all records (the "Records") affecting the Property and their ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in Seller's possession or immediately available to Seller. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. Well Disclosure. Seller certifies that Seller does not know of any wells on the property. Closing. Buyer and seller shall coordinate with each other to select a closing company to close this transaction as well as the date and time of the closing. Breach of Contract. The parties herein agree that the ordinary remedies available for breach of contract, including but not limited to rights of specific performance, shall apply to this transaction, notwithstanding the payment of any earnest money by Buyer. Miscellaneous. The buyer plans on using the property as a parking facility to serve primarily the Hutchinson Fire Department. The buyer shall construct a paved parking lot. Use of the northernmost parking stalls of the parking lot shall be made available for use by seller's employees. In addition there is currently a cement block wall on a portion of the property that is the subject of this agreement as well as seller's retraining property. Buyer agrees to remove the wall from both parcels at buyer's expense and buyer further agrees to assume all liability for any claims brought by any person or entity through the removal of the wall. BUYER CITY OF HUTCHINSON Gary `f. Forcier, Mayor Matthew Jaunich, City Administrator Date: SELLER 200�r�� Breanna Chapman Date: a/Q cR HUTCHINSON CITY COUNCIL F.`i` '!0<19 '1-` Request for Board Action A CITY ON PURPOSE. Approval and Authorization to Sign Purchase Agreement on a portion of the Agenda Item: property at 222 2nd Avenue SE Department: Administration LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff has been in negotiations for the last couple of months with the owner of the property at 222 2nd Avenue SE (Wildflower Properties, LLC) for a portion of their back parking lot. This lot was identified in the 2017 Needs Assessment Facility Report on the Fire Station as a lot the City should consider for a future purchase to provide flexibity to the City for any potential future expansion of the Fire Station and/or to meet parking needs. The Fire Department's plan for this lot is to development it into a parking lot at this time to provide parking options for staff. The additional land will also provide flexibility for the future in case there is a desire to expand the current fire station. Staff is recommending approval of the purchase agreement. If approved, the montion should include authorization for the City Administrator to sign the purchase agreement and any future paperwork in relation to the purchase of this property. BOARD ACTION REQUESTED: Approve/Deny Purchase Agreement Fiscal Impact: $ 13,068.00 Funding Source: Capital Projects Fund FTE Impact: Budget Change: Yes 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REAL ESTATE PURCHASE AGREEMENT Parties. This Purchase Agreement is made and effective on the last date executed below by and between Wildflower Properties LLC, a limited liability corporation under the laws of the State of Minnesota, "Seller", and the City of Hutchinson, a Minnesota municipal corporation, "Buyer". Offer/Acceptance. Seller agrees to convey real property (the "Property") in McLeod County, Minnesota, as indicated by the legal description described hereto: The South 33 feet of the East Half of Lot 9, Block 25, South Half Hutchinson Purchase Price and Terms. The purchase price for the property shall be thirteen thousand sixty-eight dollars and 00/100 dollars ($13,068.00) which the Buyer agrees to pay in cash or by certified check or bank draft on the date of the closing and upon delivery of the deed as hereinafter provided. Closing Date and Contingencies. For a period of time up to the closing of this purchase agreement, Buyer shall have an opportunity to conduct investigations of the property as described below. The obligation of the Buyer to comple a the transaction contemplated under this purchase agreement is specifically contingent on and the Buyer satisfying itself at there are no significant environmental or other problems affecting the property. The Buyer shall be the sole judge of t ie fitness of the condition of the property. The closing of this transaction shall take place no later than on or before March 31, 2022 or as otherwise mutually agreed by and between the parties. Deed. At closing, Seller shall execute and deliver a Warranty Deed conveying title of record, subject to builing and zoning laws, ordinances, state and federal regulations, exceptions to title which constitute encumbrances, restrictions or easements of record. Prior to closing, seller shall have removed any mortgages, financing or other monetary liens against 6 e property. Assessments. Seller shall pay on the date of closing any deferred real estate taxes (including "green acr s" taxes) under Minnesota Statute §273.1.11 and all special assessments that have been levied against the property. Real state taxes due and payable in the year in which this transaction is closed shall be prorated between the Buyer and Seller. uyer shall pay real estate taxes due and payable in the year following closing and thereafter. Seller makes no representa ion concerning the amount of future real estate taxes or of future special assessments. I Seller's Lien Warrants. Seller warrants that there have been no labor or material furnished to the property for which payment has not been made. Condition of Property. Seller shall remove all debris and all personal property not included in this sale from the property before possession date. Seller has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the property. I Upon execution of this purchase agreement, Seller will deliver to the Buyer true and correct copies of Il records effecting the property and its ownership, condition and use including, without limitation, copies of all urveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in the Seller's possession or immediately available to Seller. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the property by any person in violation of any law, nor of any underground storage tanks having been located o!n the property at any time. Notwithstanding Buyer's environmental investigations of the property, Seller does not warrant and represent to Buyer that there have been no acts or occurrences upon the property that have caused or could cause hazardous substances or petroleum products to be released or discharged into the subsoil or ground water of the property or other property in the area. Seller does not represent and warrant to Buyer that the property is free of hazardous substances a d is not subject to any "superfund" type liens or claims by governmental regulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the property. Seller knows of no wetlands, flood plain, or shoreland on or affecting the property. Seller's warranties and representations contained in this section shall survive the delivery of the deed provided that any notice of a defect or claim of breach of warranty must be in writing. Any such notice with respect to matters referred to in this section must be given by the Buyer to the Seller within one year of the date of closing or they will be deemed waived. The conditions of the conveyance of this property set forth in the Price and Terms section of T is agreement shall also survive the delivery of the deeds. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the property inspected. Other than the representations made in this paragraph, and by any contingencies, the property is being sold "AS IS" with no express or implied representations or warranties by the Seller as to physical conditions or fitness for any particular purpose. Disclosure of Notices. Seller has not received any notice from any governmental authority as to violati n of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any n tice from any person as to a breach of the covenants. Seller has not received any notice from any governmental authorl'ty concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. Should Seller reeive notice of annexation proceedings, Seller agrees to cooperate with Buyer to annex the above -described land in the City of Hutchinson. Access Prior to Closing. By this purchase agreement, Buyer does not acquire any right of possession of the roperty, license, or easement. However, during the period from the date of the Purchase Agreement to the Closing Pate, Buyer and its agents shall have access to the Property for completing such tests, studies, evaluations and other investigations and site as Buyer deems necessary. This right of entry shall also include the Buyer's agents, surveyors, engineers, evaluators for the purposes of testing, measuring and evaluating the condition of the parcel. Buyer shall indemnify and hold Seller harmless from any and all liens, claims, liabilities or charges incurIsts d or caused by Buyer's contracts with surveyors, engineers, and site evaluators, which indemnity shall include any c and disbursements incurred by Seller in any defense thereof. 1. Possession. Seller shall deliver possession of the property not later than March 31, 2022 or the date of Closing Costs and Prorations. Seller shall pay any state deed tax due and payable with respect to the Warranty Deed conveying the property. Real estate taxes, if any, due and payable for the Property the year in which the Closi Ig occurs shall be prorated between Seller and Buyer as of the Closing Date. Buyer shall pay the costs of recording the conveyance instruments and the premium for any policy of title insurance which Buyer elects to purchase. All other costs! and expenses with respect to the property shall be prorated between the Seller and Buyer as is customary as of the closing da e. Each party shall pay its respective attorney's fees and professional costs with respect to the negotiation and closing of the purchase. Seller shall pay any commission or fee payable to Seller's broker or agent if any. Records. Upon the execution of the Purchase Agreement, Seller will deliver to Buyer true and correct copieslof all records (the "Records") affecting the Property and their ownership, condition and use including, without limitation,, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in Seller's possession or immediately available to Seller. I Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. Well Disclosure. Seller certifies that Seller does not know of any wells on the property. Closing. Buyer and seller shall coordinate with each other to select a closing company to close this transaction as well as the date and time of the closing. Breach of Contract. The pat -ties herein agree that the ordinary remedies available for breach of contract, including but not limited to rights of specific performance, shall apply to this transaction, notwithstanding the payment of any earnest money by Buyer. Miscellaneous. The buyer and seller will enter into a separate memorandum of understanding concerning improvements to the drainage of seller's remaining property on lots 9 and 10 in Block 25 as well as paving a portion of the alleyway that intersects Block 25 BUYER CITY OF HUTCHINSON Gary T. Forcier, Mayor Matthew Jaunich, City Administrator SELLER VVi flower Properties LLC By: Its: Owner Labels Owner Labels w/PiD — City Limits j ! Urban Boundary Addresses Airport — Lot —Easements Lot Lines © Parks Parcels Lakes Street Names Private Roads t,erials 2018 ® Red: Band-1 Green: Band-2 Blue: Band-3 City of Hutchinson 4 Iv-.--='�Y 66 1 �222 vn �l G re Co s1 +►aa, -' JF MM*r.. s7rees: Esri, HERE, Gannin, USGS, METI, Esri China (Hong Kong), Esri K 2Wtdhutors, and the GIS User Gpmm 132' _ sr 4 � f- I'I-, yy��,,,:a n, ESriJdi1�•j OpenStreetM cR HUTCHINSON CITY COUNCIL K J 1"t N4 Request for Board Action A CITY ON PURPOSE. Approval and Authorization to Sign Purchase Agreement on the property at 145 Agenda Item: 2nd Avenue SE Department: Administration LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff has been in negotiations for the last couple of months with the owner of the property at 145 2nd Avenue SE (Scott Rech). City staff was approached by the new owner on our potential interest in purchasing the lot. City staff has identified this property as an opportunity and is recommending that the Council consider the purchase. The lot is located directly behind City Center and provides a couple of benefits: 1) Provides an opportunity to the City to eliminate a blighted property in town 2) Opens up a lot in the downtown area for future development 3) Provides future flexibility to the City when it comes to the future expansion (if any) of the City Center grounds (parking, garage, etc.) If approved, the montion should include authorization for the City Administrator to sign the purchase agreement and any future paperwork in relation to the purchase of this property. BOARD ACTION REQUESTED: Approve/Deny Purchase Agreement Fiscal Impact: $ 107,500.00 Funding Source: Capital Projects Fund FTE Impact: Budget Change: Yes 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REAL ESTATE PURCHASE AGREEMENT Parties. This Purchase Agreement is made and effective on the last date executed below by and between Scott Rech, an individual, "Seller", and the City of Hutchinson, a Minnesota municipal corporation, "Buyer". Offer/Acceptance. Seller agrees to convey real property (the "Property") in McLeod County, Minnesota, as indicated by the legal description described hereto: That part of Lots 4 and 5 in Block 14 in the Townsite of Hutchinson, South Half, McLeod County, Minnesota, described as follows, to -wit: Beginning at the southeast corner of said Lot 5; thence West, along the South line of said Lot 5, 77 feet; thence North on a line parallel with the East line of said Lots 5 and 4, 99 feet; thence East, on a line parallel with the South line of said Lot 5, 77 feet, to the East line of said Lot 4, and thence South, along said East line of Lots 4 and 5, 99 feet to the point of beginning. Purchase Price and Terms. The purchase price for the property shall be one hundred seven thousand five hundred and 00/100 dollars ($107,500.00) which the Buyer agrees to pay in cash or by certified check or bank draft on the date of the closing and upon delivery of the deed as hereinafter provided. Closing Date and Contingencies. For a period of time up to the closing of this purchase agreement, Buyer shall have an opportunity to conduct investigations of the property as described below. The obligation ofthe Buyer to complete the transaction contemplated under this purchase agreement is specifically contingent on and the Buyer satisfying itself that there are no significant environmental or other problems affecting the property. The Buyer shall be the sole judge of the fitness of the condition of the property. The closing of this transaction shall take place within on or before March 31, 2022. Deed. At closing, Seller shall execute and deliver a Warranty Deed conveying title of record, subject to building and zoning laws, ordinances, state and federal regulations, exceptions to title which constitute encumbrances, restrictions or easements of record. Assessments. Seller shall pay on the date of closing any deferred real estate taxes (including "green acres" taxes) under Minnesota Statute §273.1.1 1 or special assessments payment of which is required as a result of the closing of this sale. Real estate taxes due and payable in the year in which this transaction is closed shall be prorated between the Buyer and Seller. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. Seller's Lien Warrants. Seller warrants that there have been no labor or material furnished to the property for which payment has not been made. Condition of Property. Seller shall remove all debris and all personal property not included in this sale from the property before possession date. Seller has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the property. Upon execution of this purchase agreement, Seller will deliver to the Buyer true and correct copies of all records effecting the property and its ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in the Seller's possession or immediately available to Seller. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the property by any person in violation of any law, nor of any underground storage tanks having been located on the property at any time. Notwithstanding Buyer's environmental investigations of the property, Seller does not warrant and represent to Buyer that there have been no acts or occurrences upon the property that have caused or could cause hazardous substances or petroleum products to be released or discharged into the subsoil or ground water of the property or other property in the area. Seller does not represent and warrant to Buyer that the property is free of hazardous substances and is not subject to any "superfund" type liens or claims by governmental regulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the property. Seller knows of no wetlands, flood plain, or shoreland on or affecting the property. Seller's warranties and representations contained in this section shall survive the delivery of the deed provided that any notice of a defect or claim of breach of warranty must be in writing. Any such notice with respect to matters referred to in this section must be given by the Buyer to the Seller within one year of the date of closing or they will be deemed waived. The conditions of the conveyance of this property set forth in the Price and Terms section of this agreement shall also survive the delivery of the deeds. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless required by local ordinance or lending regulations, Seller does not plan to have the property inspected. Other than the representations made in this paragraph, and by any contingencies, the property is being sold "AS IS" with no express or implied representations or warranties by the Seller as to physical conditions or fitness for any particular purpose. Disclosure of Notices. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. Should Seller receive notice of annexation proceedings, Seller agrees to cooperate with Buyer to annex the above -described land into the City of Hutchinson. Access Prior to Closing By this purchase agreement, Buyer does not acquire any right of possession of the property, license, or easement. However, during the period from the date of the Purchase Agreement to the Closing Date, Buyer and its agents shall have access to the Property for completing such tests, studies, evaluations and other investigations as Buyer deems necessary. This right of entry shall also include the Buyer's agents, surveyors, engineers, and site evaluators for the purposes of testing, measuring and evaluating the condition of the parcel. Buyer shall indemnify and hold Seller harmless from any and all liens, claims, liabilities or charges incurred or caused by Buyer's contracts with surveyors, engineers, and site evaluators, which indemnity shall include any costs and disbursements incurred by Seller in any defense thereof. Possession. Seller shall deliver possession of the property not later than March 31, 2022, or the date of closing. Closine Costs and Prorations. Seller shall pay any state deed tax due and payable with respect to the Warranty Deed conveying the property. Real estate taxes, if any, due and payable for the Property the year in which the Closing occurs shall be prorated between Seller and Buyer as of the Closing Date. Buyer shall pay the costs of recording the conveyance instruments and the premium for any policy of title insurance which Buyer elects to purchase. All other costs and expenses with respect to the property shall be prorated between the Seller and Buyer as is customary as of the closing date. Each party shall pay its respective attorney's fees and professional costs with respect to the negotiation and closing of the purchase. Seller shall pay any commission or fee payable to Seller's broker or agent if any. Records. Upon the execution of the Purchase Agreement, Seller will deliver to Buyer true and correct copies of all records (the "Records") affecting the Property and their ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental pen -nits and correspondence either in Seller's possession or immediately available to Seller. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. Well Disclosure. Seller certifies that Seller does not know of any wells on the property. Closing. Buyer and seller shall coordinate with each other to select a closing company to close this transaction as well as the date and time of the closing. Breach of Contract. The parties herein agree that the ordinary remedies available for breach of contract, including but not limited to rights of specific performance, shall apply to this transaction, notwithstanding the payment of any earnest money by Buyer. BUYER SELLE CITY OF HUTCHINSON Gary T. Forcier, Mayor Scott Rcch Matthew Jaunich, City Administrator i Date: Dater 2- J 50-1 361 ZjOl C% Owner Labels City of Hutchinson r Owner Labels w/PID _ r 10 City Limits t Urban Boundary $ Addresses "' — Airport q r ❑ Parks — Pa reels Lakes 120 Street NamesAft Private Roads ~ ;� r Z Aerials 2018 z Red: Band 1 ❑ Green: Band-2 i45 . W U. U. � '� �^ , LU Blue: Band_3 a' 125 1 ar 2ND AVE 5E Sources: Esri, HERE, Garmin, USGS, Inte"ap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, an GIS User ommu ity LOGIS. McLeod_ Co I r'IG/20E1. 1:52:; PN. Iinch=47 feet Public Arts Commission Jan 12 2022 Zoom - 5:30 PM MINUTES In attendance: Justin Beck, Morgan Baum, Jackie Fuchs, Patrick Hiltner, Pat May, Jeri -Jo Redman, Lynn Neuman (ex-officio) Not in attendance: Kay Johnson, Dan Jochum (ex-officio) • Call To Order at 5:35pm • Approve Minutes, motion by Pat, second by Jeri -Jo • Financial Report o Year end December report from Lynn o Upcoming expenses ■ Restoration, pull from seed funds ■ Maintenance, pull from seed funds ■ Other upcoming expenses? $11 K for 2022-2023 ■ Buy more brochures upfront ■ January 1, we'll have another $15K coming • Sculpture Stroll Updates o Call for Art Updates ■ We have received some submissions - 5 have come in to date ■ Jackie will make "reminder" posts on social media regarding the call for art. o Justin will contact Connie Lambert regarding the Citizens Bank selection process o February Meeting/Selection Process ■ Justin emailed Andrew Nordin and did not get a response. ■ Once we have the sculpture candidates we'll reach out to Matt Feuerborn and Andrew Nordin. o Judge's Award ■ We will want to start thinking about who to involve with this process as far as judges. • Invite: o Steve Cook o Molly Rivera o Brainstorm who else can fill the third role o Justin will contact Steve about his ideas o Work Installation/Removal schedule ■ See attached proposal and discuss. ■ Justin will handle the logistics of this process and may ask for help if needed. o Parks can help create a survey monkey submission to help collect 1 vote per person for People's Choice. o Nameplates ■ The nameplates are all over the map as far as materials, who made them, etc. We can discuss changes if needed. ■ Ideally we can do permanent collection uniform and nice ■ For the rotating pieces we can use the ones that are not as expensive • Gateway Park Mural Update o Any new info on costs? Should we wait to research until the weather warms up/after the 2022 selection process? • Open Discussion/New Business o We are able to use Darwin to restore Tall Friend/Old Friend • Adjourned at 6:15pm f . HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Teleconference Call (GoToMeeting) Tuesday, January 18, 2022, 7:00 AM Minutes CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order virtually in GoToMeeting. Members Present: Robin Kashuba, Kimberly Merwin and Steve Jensen virtually in GoToMeeting, Gary Forcier in person. Staff Present: Judy Flemming and Jocelyn Jacobson. a. Approve the Hutchinson HRA Regular Board Meeting agenda and any agenda additions and/or corrections. Gary Forcier moved to approve the agenda as presented and Kimberly Merwin seconded. Roll Call: Kotlarz — Aye; Kashuba — Aye; Merwin — Aye; Forcier — Aye; & Jensen — Aye. The motion carried unanimously. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON DECEMBER 21, 2021 Steve Jensen moved to approve the Minutes of the regular board meeting and Gary Forcier seconded. Roll Call: Kotlarz — Aye; Kashuba — Aye; Merwin — Aye; Forcier — Aye; & Jensen — Aye. The motion carried unanimously. 3. FINANCIAL REPORTS Gary Forcier moved to approve the: a. City Center General Fund payments of $24,496.99 for checks 9234 to 9235 b. December 2021 City Center — pre -adjustment financial statements c. Park Towers operating account payments of $40,636.96 for checks 15579 to 15599 d. November 30, 2021 Park Towers financial statements Robin Kashuba seconded. Roll Call: Kotlarz — Aye; Kashuba — Aye; Merwin — Aye; Forcier — Aye; & Jensen — Aye. The motion carried unanimously. 4. CONSIDERATION OF RESOLUTION 2022-1 ADOPTING 2022 HRA COMPENSATION PLAN Steve Jensen moved to approve the Resolution 2022-1 Adopting 2022 HRA Compensation Plan and Kimberly Merwin seconded. Roll Call: Kodarz — Aye; Kashuba — Aye; Merwin — Aye; Forcier — Aye; & Jensen — Aye. The motion carried unanimously. 5. PARK TOWERS - FYI a. Park Towers Vacancy Report b. Management Update 6. COMMUNICATIONS a. Term Life Insurance b. Will be moving forward with the Maxfield Housing Study 7. ADJOURNMENT January 18, 2022 Minutes Page 1 of 2 Steve Jensen moved to adjourn and Robin Kashuba seconded. Roll Call: Kotlarz — Aye; Kashuba — Aye; Merwin — Aye; Forcier — Aye; & Jensen — Aye. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. PERFORMANCE REVIEW FOR DIRECTOR Recorded by Judy Flemming, HRA Executive Director Gary Fc cier, Secretary/Treasurer January 18, 2022 Minutes Page 2 of 2 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, January 18, 2022 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The January 18th, 2022 Planning Commission meeting was called to order by Vice Chairman Hacker at 5:32 p.m. Members in bold were present Chairman Lofdahl, Vice Chairman Hacker, Commissioner Garberg, Commissioner Wirt, Commissioner Sebesta, Commissioner Hantge, and Commissioner Janssen. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, John Olson, City Public Works, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney, Andrea Schwartz, City of Hutchinson Permit Technician and Madison Newcomb, City of Hutchinson Planning and Building Assistant. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED September 21, 2021. Motion by Commissioner Wirt to approve September 21, 2021 meeting minutes. Second by Commissioner Garberg. Motion approved. 4. PUBLIC HEARINGS A. CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A TATTOO ESTABLISHMENT IN THE MAIN STREET AREA DISTRICT LOCATED AT 18 MAIN ST S. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Wirt inquired if there were any inspections required for a tattoo parlor. Douglas Moulton (owner of tattoo parlor) - explained that the State issues a temporary license and then they come in and inspect. If you pass they issue a license, if not you have 90 days to correct any concerns. Commissioner Wirt asked if the City receives a report from the State with the findings from their inspection. Dan Jochum responded that the City does not receive a report but will be in correspondence with the inspector if there are any questions. The applicant will receive a certificate or license from the State to show Minutes Hutchinson Planning Commission January 18, 2022 Page 2 they're in compliance. He also noted that we haven't had any problems with these kind of establishments in regards to State inspections and compliance. Motion by Commissioner Janssen, second by Commissioner Sebesta close hearing at 5:39 p.m. Motion by Commissioner Wirt to approve with 5 staff recommendations. Second by Commissioner Sebesta. Item will be on City Council consent agenda on 01 /25/2022. B. CONSIDERATION OF A CONDITIONAL USE PERMIT TO MOVE A STRUCTURE LARGER THAN 200 SQUARE FEET FROM 135 FRANKLIN ST N TO 225 WASHINGTON AVE W. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Sebesta inquired how long the permit is good for. Dan Jochum said once the conditional use permit is issued they have one year to move it. The additional moving permit is a separate matter, but the intent is for it to get placed and set on the new foundation. Commissioner Sebesta asked if Jim Fahey will be setting that in front of the Harrington Merrill house temporarily while the foundation is being done. Jim Fahey, 446 Main St S - informed the Commission that the barn will be staged off the southwest corner of the carriage house. It will sit there from the 3rd week in February until May. After the frost comes out, the outdoor classroom will be relocated and a slab will be installed for the barn. The interior of the barn will be demoed to hopefully determine the orientation of it. Commissioner Hacker asked if the whole building is the barn. Jim Fahey explained that the barn is 28' X 28'. The entryway and north wing are additions, they will be torn off before it is moved. Historic Hutch is working with a contractor hired by the EDA to demo the property. Commissioner Wirt asked about the neighborhood and if there is anything being done that would disturb them. Jim Fahey responded that on behalf of Historic Hutch he personally reached out to all neighbors on Washington Ave and the neighbor who faces to the north in case they had questions. They were at ease when they found out what the use would be. Dan Jochum noted the location of the outdoor classroom. Jim Fahey explained that it is very close to the original location of the barn but they will seek guidance from City Staff and the Parks Department to determine where exactly to place it. Dan Jochum also informed the Commission that there is no requirement to notify Minutes Hutchinson Planning Commission January 18, 2022 Page 3 neighbors other than for this public hearing. There have been no concerns brought forth from neighbors. Commissioner Hacker noted that the City owns that building. Dan Jochum confirmed that the EDA currently owns the building and City owns the lot the building is being moved to. Commissioner Janssen is abstaining from the vote due to him being an officer on Historic Hutch. Motion by Commissioner Sebesta, second by Commissioner Wirt close hearing at 5:52 p.m. Motion by Commissioner Garberg to approve with 4 staff recommendations. Second by Commissioner Wirt. Item will be on City Council consent agenda on 01 /25/2022. 5. NEW BUSINESS A. NONE 6. UNFINISHED BUSINESS A. NONE 7. COMMUNICATION FROM STAFF A. UPCOMING MEETINGS — possible CUP in February. B. This was an outstanding year with building and valuation. In 2020 there were 36 new residential houses, this year we had 35. Construction valuation was around $40 million this year which is one of the top 5 years Hutchinson has had. With all the uncertainty there is still activity. 2021 was a strong year with development. C. Still continuing to work through the growth planning study. Have some concepts that we'll bring forth to this group to show the preliminary findings. Currently working on cost estimates for infrastructure. Most of our lots, if not all of them, are spoken for. This is why the growth planning study is so important. 8. ADJOURNMENT Motion was made by Commissioner Janssen to adjourn the meeting, second by Commissioner Sebesta. Meeting was adjourned at 5:59 p.m. V c3HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. January 2022 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 2/22/2022 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff M Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For Council review, attached are the January Financial Reports for the general fund and enterprise funds. Also attached is the January Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: Govern, Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022 2021 2022 ACTUALS 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - - 5,617,556 5,617,556 - 5,442,779 Other Taxes 8,464 8,464 320,000 311,536 2.6 - 305,000 - Licenses & Permits 92,364 92,364 443,600 351,236 20.8 46,846 380,300 12.3 Intergovernmental Revenue - - 1,744,821 1,744,821 - - 1,716,788 - Charges for Services 209,742 209,742 2,816,325 2,606,583 7.4 184,161 2,786,834 6.6 Miscellaneous Revenues 28,019 28,019 256,500 228,481 10.9 16,135 246,250 6.6 Transfers -In 466,798 466,798 2,710,191 2,243,393 17.2 - 2,723,191 - Fines & Forfeitures 3,365 3,365 55,000 51,635 6.1 55,000 Capital Contributions - - - - - 40,000 TOTAL REVENUES 808,752 808,752 13,963,993 13,155,241 5.8 247,142 13,696,142 1.8 Wages & Benefits 580,251 580,251 9,443,650 8,863,399 6.1 548,929 9,240,778 5.9 Supplies 37,567 37,567 934,515 896,948 4.0 19,568 882,622 2.2 Services & Charges 133,385 133,385 2,756,429 2,623,044 4.8 151,603 2,760,282 5.5 Miscellaneous Expenses 13,881 13,881 714,086 700,205 1.9 8,120 684,310 1.2 Transfers -Out - - 110,313 110,313 - - 108,150 - CapitalOutlay 44 44 5,000 4,956 0.9 - 20,000 - TOTAL EXPENDITURES 765,129 765,129 13,963,993 13,198,864 5.5 728,220 13,696,142 5.3 NET REVENUE 43,623 43,623 - (43,623) (481,078) - REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022ACTUALS JANUARY General Fund Expense by Department YTD 2022 2021 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 2,126 2,126 50,077 47,951 4.2 2,302 50,099 4.6 City Administrator 30,291 30,291 482,617 452,326 6.3 30,914 491,611 6.3 Elections 10 10 18,700 18,690 0.1 - - - Finance Department 21,388 21,388 404,170 382,782 5.3 20,135 382,169 5.3 Motor Vehicle 17,868 17,868 296,160 278,292 6.0 17,446 251,241 6.9 Assessing - - 61,205 61,205 - - 61,152 - Legal 17,022 17,022 328,734 311,712 5.2 22,044 321,917 6.8 Planning 9,624 9,624 170,514 160,890 5.6 9,995 164,302 6.1 Information Services 54,175 54,175 598,135 543,960 9.1 44,812 587,903 7.6 City Hall Building 8,928 8,928 193,849 184,921 4.6 9,845 190,079 5.2 Police Department 216,014 216,014 3,497,529 3,281,515 6.2 219,556 3,607,758 6.1 Hospital Security 18,847 18,847 361,679 342,832 5.2 20,141 328,598 6.1 Emergency Management - - 16,980 16,980 - 4,372 17,280 25.3 Safety Committee 580 580 11,370 10,790 5.1 9,364 11,210 83.5 Fire Department 18,918 18,918 411,094 392,176 4.6 16,612 369,510 4.5 Protective Inspections 18,911 18,911 334,179 315,268 5.7 18,388 326,560 5.6 Engineering 30,509 30,509 441,310 410,801 6.9 31,302 465,890 6.7 Streets & Alleys 72,222 72,222 1,630,466 1,558,244 4.4 71,739 1,588,741 4.5 Park/Recreation Administration 14,619 14,619 249,716 235,097 5.9 20,527 316,616 6.5 Recreation 9,209 9,209 278,533 269,324 3.3 10,295 260,435 4.0 Senior Citizen Center 4,978 4,978 96,796 91,818 5.1 2,841 93,715 3.0 Civic Arena 16,072 16,072 411,332 395,260 3.9 10,248 373,185 2.7 Park Department 42,276 42,276 1,072,754 1,030,478 3.9 40,014 994,819 4.0 Recreation Building 12,657 12,657 265,600 252,943 4.8 11,368 248,129 4.6 Events Center 15,703 15,703 261,357 245,654 6.0 14,858 275,259 5.4 Evergreen Building 1,380 1,380 31,375 29,995 4.4 1,010 30,725 3.3 Library 2,819 2,819 230,492 227,673 1.2 1,440 222,820 0.6 Waterpark 2,087 2,087 396,659 394,572 0.5 943 355,833 0.3 Cemetery 7,453 7,453 145,838 138,385 5.1 9,163 138,320 6.6 Airport 2,184 2,184 145,123 142,939 1.5 2,526 131,541 1.9 Unallocated General Expense 96,260 96,260 1,069,650 973,390 9.0 54,020 1,038,725 5.2 TOTAL EXPENDITURES 765,129 765,129 13,963,993 13,198,864 5.5 728,220 13,696,142 5.3 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022 2021 2022 ACTUALS 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 456,209 456,209 7,424,000 6,967,791 6.1 522,038 6,809,000 7.7 Miscellaneous Revenues 77 77 3,000 2,923 2.6 64 2,500 2.5 TOTAL REVENUES 456,286 456,286 7,427,000 6,970,714 6.1 522,102 6,811,500 7.7 Cost of Sales 329,709 329,709 5,666,000 5,336,291 5.8 405,321 5,159,602 7.9 Wages & Benefits 48,462 48,462 812,108 763,646 6.0 46,495 757,179 6.1 Supplies 1,157 1,157 21,100 19,943 5.5 369 22,600 1.6 Services & Charges 22,710 22,710 285,550 262,840 8.0 25,667 259,365 9.9 Miscellaneous Expenses - - 6,700 6,700 - - 6,700 - Transfers -Out 550,000 550,000 550,000 Capital Outlay 15,000 15,000 15,000 Depreciation Expense - - 70,700 70,700 - - 77,000 - TOTAL EXPENDITURES 402,038 402,038 7,427,158 7,025,120 5.4 477,852 6,847,446 7.0 NET REVENUE 54,249 54,249 (158) (54,407) 44,250 (35,946) Year to Date Sales January Sales Comments 2022 2021 Change 2022 2021 Change Liquor Sales Revenue: Liquor 180,618 199,317 -9.4% 180,618 199,317 -9.4% Beer 200,560 232,240 -13.6% 200,560 232,240 -13.6% Wine 65,105 79,350 -18.0% 65,105 79,350 -18.0% Other 9,925 11,132 -10.8% 9,925 11,132 -10.8% Total Sales 456,209 522,038 -12.6% 456,209 522,038 -12.6% Gross Profit $126,500 $116,717 $126,500 $116,717 Gross Margin on Sales 27.7% 22.4% 27.7% 22.4% Customer Count 16,298 18,376 -11.3% 16,298 18,376 -11.3% Average Sale per Customer $27.99 $28.41 -1.5% $27.99 $28.41 -1.5% Labor to Sales Ratio 10.6% 8.9% 10.6% 8.9% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022 2021 2022 ACTUALS 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Water Fund Sales 130,883 130,883 1,715,000 1,584,117 7.6 123,787 1,715,000 7.2 Sales - Other 50,773 50,773 549,950 499,177 9.2 49,615 549,950 9.0 Local Sales Tax 1,230 1,230 812,000 810,770 0.2 - 737,000 - Charges for Services 35,380 35,380 71,685 36,305 49.4 34,225 65,700 52.1 Miscellaneous Revenues 2,816 2,816 42,000 39,184 6.7 2,410 47,000 5.1 TOTAL REVENUES 221,083 221,083 3,190,635 2,969,552 6.9 210,037 3,114,650 6.7 Wages & Benefits 34,287 34,287 579,241 544,954 5.9 35,408 546,882 6.5 Supplies 8,188 8,188 168,150 159,962 4.9 12,330 140,150 8.8 Services & Charges 20,940 20,940 507,750 486,810 4.1 18,983 500,950 3.8 Miscellaneous Expenses - - 13,500 13,500 - - 15,000 - Transfers -Out 70,000 70,000 70,000 Capital Outlay 998,450 998,450 865,219 Depreciation Expense - - 1,132,000 1,132,000 - - 1,160,000 - Debt Service 153,075 153,075 1,465,433 1,312,358 10.4 137,978 1,465,215 9.4 TOTAL EXPENDITURES 216,490 216,490 4,934,524 4,718,034 4.4 204,698 4,763,416 4.3 NET of REVENUES & EXPENDITURES 4,593 4,593 (1,743,889) (1,748,482) 5,339 (1,648,766) Year to Date Wafer Sales Comments 2022 2021 Change Water Sales Revenue: Residential 90,179 90,034 0.2% Commercial 25,782 19,210 34.2% Industrial 14,923 14,543 2.6% Water Sales 130,883 123,787 5.7% Base Charge 36,704 36,386 0.9% WAC Charge 3,500 5,828 -39.9% Other 10,569 7,401 42.8% Other Sales 50,773 49,615 2.3% Wastewater Fund Sales Sales - Other Local Sales Tax Licenses & Permits Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022ACTUALS JANUARY YTD 2022 2021 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 296,584 296,584 2,755,000 2,458,416 10.8 222,809 2,782,000 8.0 38,024 38,024 559,300 521,276 6.8 39,617 568,150 7.0 1,230 1,230 812,000 810,770 0.2 - 737,000 - 6,000 6,000 6,500 500 92.3 6,000 6,500 92.3 640 640 7,500 6,860 8.5 650 7,500 8.7 7,695 7,695 90,000 82,305 8.5 5,116 97,500 5.2 350,173 350,173 4,230,300 3,880,127 8.3 274,193 4,198,650 6.5 46,619 46,619 776,934 730,315 6.0 47,999 752,715 6.4 12,695 12,695 246,500 233,805 5.2 6,949 225,000 3.1 24,398 24,398 769,000 744,602 3.2 34,819 762,200 4.6 4,595 4,595 40,000 35,405 11.5 123 40,000 0.3 - - 80,000 80,000 - - 80,000 - 680,662 680,662 984,400 303,738 69.1 2,358,219 - - 1,182,000 1,182,000 - - 1,125,000 - 348,734 348,734 1,526,311 1,177,577 22.8 366,466 1,389,965 26.4 TOTAL EXPENDITURES 1,117,702 1,117,702 5,605,145 4,487,443 19.9 456,357 6,733,099 6.8 NET of REVENUES & EXPENDITURES (767,529) (767,529) (1,374,845) (607,316) (182,164) (2,534,"9) Year to Date Sewer Sales Comments 2022 2021 Change Wastewater Sales Revenue: Residential 130,880 132,993 -1.63T. Commercial 33,945 39,149 -13.3% Industrial - Flow 40,210 27,865 44.3% Industrial - Violation Surcharges 91,550 22,802 301.5% Sewer Sales 296,584 222,809 33.1 % Base Charge 31,710 31,458 0.8% SAC Charge 4,600 7,659 -39.9% Other 1,715 500 242.9% Other Sales 38,024 39,617 -4.0% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022 2021 2022 ACTUALS 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 105,692 105,692 1,267,000 1,161,308 8.3 102,651 1,220,000 8.4 Sales - Other 3,606 3,606 44,800 41,194 8.0 3,452 49,600 7.0 Intergovernmental Revenue - - 12,500 12,500 - - 12,500 - Miscellaneous Revenues 1,483 1,483 15,000 13,517 9.9 1,517 20,000 7.6 TOTAL REVENUES 110,781 110,781 1,339,300 1,228,519 8.3 107,620 1,302,100 8.3 Wages & Benefits 10,951 10,951 259,732 248,781 4.2 11,499 225,933 5.1 Supplies 7,534 7,534 59,900 52,366 12.6 164 64,400 0.3 Services & Charges 10,033 10,033 848,350 838,317 1.2 8,580 817,220 1.0 Miscellaneous Expenses - - 1,000 1,000 - - 1,000 - Transfers -Out 55,000 55,000 55,000 Capital Outlay 1,207,500 1,207,500 865,500 Depreciation Expense - - 169,000 169,000 - - 162,000 - TOTAL EXPENDITURES 28,519 28,519 2,600,482 2,571,963 1.1 20,242 2,191,053 0.9 NET of REVENUES & EXPENDITURES 82,262 82,262 (1,261,182) (1,343,444) 87,378 (888,953) Comments Capital Outlay The new Source Separated process improvement project has been deferred from 2021 to 2022 due to delays from the MPCA over permitting issues. This results in a significant budgetary savings for 2021. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 Comaost Fund Sales Intergovernmental Revenue Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2022ACTUALS JANUARY YTD 2022 2021 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 151,788 151,788 2,706,000 2,554,212 5.6 159,852 2,289,000 7.0 - - 87,000 87,000 - 2,750 70,000 3.9 1,638 1,638 32,000 30,362 5.1 2,892 32,000 9.0 153,425 153,425 2,825,000 2,671,575 5.4 165,495 2,391,000 6.9 92,753 92,753 1,837,000 1,744,247 5.0 90,084 1,582,500 5.7 (31,065) (31,065) (712,500) (681,435) 4.4 (43,748) (674,000) 6.5 46,542 46,542 808,198 761,656 5.8 49,381 798,104 6.2 2,739 2,739 129,000 126,261 2.1 4,000 123,500 3.2 16,222 16,222 304,850 288,628 5.3 15,689 259,000 6.1 15 15 11,000 10,985 0.1 1,625 11,000 14.8 - - 120,000 120,000 - - 110,000 - 5,085 5,085 221,000 215,915 2.3 376,500 - - 278,000 278,000 - 282,500 (5,470) (5,470) 73,808 79,278 (7.4) (7,719) 161,642 (4.8) 126,820 126,820 3,070,356 2,943,536 4.1 109,313 3,030,746 3.6 26,605 26,605 (245,356) (271,961) 56,182 (639,746) Year to Date Sales Comments 2022 2021 Change Compost Sales Bagged 146,336 154,206 -5.1% Bulk 5,452 787 592.8% Other (Freight) - 4,859 -100.0% Total Sales 151,788 159,852 -5.0% Gross Profit 59,035 69,768 Gross Margin 38.9% 43.6% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2022 2022 2021 2022 ACTUALS 2022 AVAILABLE % BDGT 2021 YTD 2021 % BDGT JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 83,161 83,161 1,033,000 949,839 8.1 81,025 1,000,000 8.1 Sales - Other 461 461 3,500 3,039 13.2 - 3,500 - Licenses & Permits 400 400 4,800 4,400 8.3 135 4,800 2.8 Charges for Services - - - - - - - - Miscellaneous Revenues 679 679 14,350 13,671 4.7 667 15,350 4.3 TOTAL REVENUES 84,701 84,701 1,055,650 970,949 8.0 81,827 1,023,650 8.0 Wages & Benefits 17,328 17,328 290,084 272,756 6.0 17,077 276,724 6.2 Supplies 100 100 51,325 51,225 0.2 146 35,425 0.4 Services & Charges 2,050 2,050 212,150 210,100 1.0 5,782 196,350 2.9 Miscellaneous Expenses - - 18,000 18,000 - - 18,000 - Transfers -Out - - - CapitalOutlay 746,600 746,600 739,000 Depreciation Expense - - 254,000 254,000 - - 240,000 - Debt Service 143,761 143,761 221,589 77,828 93.5 144,111 225,789 70.2 TOTAL EXPENDITURES 163,239 163,239 1,793,748 1,630,509 9.1 167,117 1,731,288 9.7 NET of REVENUES & EXPENDITURES (78,538) (78,538) (738,098) (659,560) (85,290) (707,638) Oppenheimer & Co. Inc. 85 Broad street STATEMENT OF EPENHEIMEP, New York, NY 10004 (212) 668-8000 ACCOUNT M,�74 Transacts Business on All Principal Exchanges Assets maturing during the next 60 days appear at the end of this statement. Special Message This statement has been provided to you through electronic delivery. Thank you for helping us 'Go Green'! Portfolio Summary This Previous Estimated Period Period Annual Income 01/31/22 12131/21 Advantage Bank Deposits' $0.00 $664.52 $0.00 Mutual Funds 5,230,363.18 5,202,597.21 1,333.74 Government Agency Bonds 492,655.00 497,290.00 5,900.00 Municipal Bonds 9,024,686.40 9,094,283.45 215,044.90 Certificates of Deposit 5,996,718.30 6,034,837.56 140,553.50 C Sh A*WMnI IM*ft 1,47TJa 41,5115 Total Asset Value $20,74S.Nd-26 y20,036p&9 90 '#3 II3214 Account Number: D25-5019707 Tax ED Number: ON FILE For the Period: 01/01/22 - 01/31/22 Last Statement: 12/31/21 Page 1 of 12 Financial Professional SULLIVAN,C/FAY,J 5HX (800)258-3387 CITY OF HUTCHINSON MINNESOTA III HASSAN ST SE HUTCHINSON MN 55350-2522 Net Value of Accrued Interest $104,994.59 $98,775.43 Internet Address: www.opco.com Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Eligible for FDIC insurance up to standard maximum insurance amounts; Not SIPC insured. Income Summary Office Serving Your Account 100 SOUTH 5TH ST SUITE 2200 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Corporate Interest $15,064.00 $15,064.00 Municipal Interest 9,461.76 9,461.76 Dividends 113.55 113.55 ToW RaaarUMs 124A3L31 $24A3911 Non -Reportable Corporate Accrued Int Paid $-20.14 $-20.14 TOW Wo-g4p rtab1t► 14 m PPENHEIMEK Executive Summary CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Summary Totals Original Face $15,362,000 Current Face (Par) $15,362,000 Market Principal $15,514,060 Accrued Interest $82,492 Cash & Cash Alternatives $0 Fixed Income Funds $0 Equity Balance $0 Total Portfolio Value $15,596,552 Next 12mo Cpn Cash Flow $301,049 Generic Annual Cpn Cash Flow $361,498 Weighted Averages Coupon* 2.353 % Maturity 1.89 yrs Duration 1.77 Yield to Worst 1.432 % Yield to Maturity 1.460 % Market Price' 100.990 Tax Lots Holdings Included 45 of 45 'Par-Wld, an else Mkt-wtd. * Avg lire used Ior principal paydowns, and perpetual securities are assigned a 40 year maturity. 40% . Muni- 58.2% CD- 38.7% Agy- 3.2% 20% o% I 01'01�O 01'01'O�'01'01�O O�O�O�O�O�yO O�^O O�ObObO�'Ob0�0�'ObO�'O�'O�'Oy00�~�'�a\ Qe Moody's S&P 0 Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Subj to AMT UST/AGY/CD - PR/ETM Aaa $60,000 40% AAA As AA A A $40,000 Bea BBB Be 20% BB $20,000 -Be 111- <BB $0 1 1. NR None NR ' I None 0�'{)' y�e{;' �{'{% 0% 20% 40% 60% 80% 100% Q e� P'� �' el' ". 6" F O'10'l0"�OPOy060'�0000,tiO,ti'1,ti'y,ti",tiP,tiy,ti6,ti',ti0,ti0.yO,t'r,y'y,y"�,t,P,yy,y6,t'�,y0.y0.�00x 00'Oti0'YO'iOPOy'Oro'O'�'0009',tiO;titi,ti'V.ti'i;tiP,tiy,tiH,ti'1;ti0,ti9'ryOryti.t'Y.l'il,P.ty.lro'.1'�:t0'.19 'i Includes coupon cash flows for the next 12 months, from 021012022 to 01/31/2023. Includes all tax lot holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Includes coupon cash flows for the next 12 months, Bom 02/012022 to 01/312023. Projected Principal Paydowns for CMOs are produced by applying current pool speeds which are updated weekly. Assuming similar market conditions going forward, Projected Principal Paydowns for Pass-7hru securities are produced by celculating and applying concurrent historical speeds to future paydown schedules. Page 3 of 23 PPENFMWM R Totals & Averages @ Current Market CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $15,362,000 $15,362,000 45 0 45 Valid Tax Lot Holdings' includes all tax lot holdings with recognized CUSIP and quantity. Priced Original Face Value $15,362,000 Priced Current Face Value $15,362,000 Tax Lot Holdings Included 45 of 45 Priced Market Principal $15,514,060 Average Coupon 2.353% Average Market Price 100.990 Includes all tax lot holdings with recognized CUSIP, quantity and market price on reporting date. Average coupon and market price weighted by market principal. Portfolio Totals Original Face Value Current Face Value Market Principal Value Accrued Interest Total Market Value Cash & Cash Alternatives Fixed Income Funds Equity Balance Total Portfolio Value Next 12mo Cpn Cash Flow Generic Annual Cpn Cash Flow Tax Lot Holdings Included $15,362,000 $15,362,000 $15,514,060 $82,492 $15,596,552 $0 $0 $0 $15,596,552 $301,049 $361,498 45 of 45 Portfolio Averages Coupon Maturity Duration Convexity Current Yield Yield to Worst Yield to Maturity After Tax YTW Taxable Equivalent YTW After Tax YTM Taxable Equivalent YTM Market Price 2.353% 1.89 yrs 1.77 0.057 2.330% 1.432% 1.460% 1.432% 1.432% 1.460% 1.460% 100.990 Includes all tax lot holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Portfolio average values are market -weighted, unless otherwise rioted. Coupon and market price are par -weighted. All prices have been normalized to par. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Includes coupon cash flows for the next 12 months, from 0210112022 to 0113112023. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.00%, a State of WA, and a State Tax rate of WA. Generic Annual Cpn Cash Flow is simply coupon rate times current face value, and does not consider acquisition date, redemption dates, lorg'Mort first coupons, ex -dividend dates, payment delays, etc. Duration and convexity figures represent modified duration to worst. Page 4 of 23 PPENHEIMEK Totals & Averages @ Acquisition CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $15,362,000 Portfolio Totals Portfolio Averages $15,362,000 Original Face Value $15,362,000 Yield to Worst (cost) 2.017% 45 Face Value at Acquisition $15,362,000 Yield to Worst (mkt) 1.432% 0 Original Principal Cost $15,480,663 Yield to Maturity (cost) 2.017% 45 Adjusted Principal Cost $15,365,750 Yield to Maturity (mkt) 1.460% Current Market Principal $15,514,060 Original Acquisition Price 100.772 Estimated Gain/(Loss) $148,309 Adjusted Cost Price 100.024 Tax Lot Holdings Included 45 of 45 Current Market Price 100.990 Valid Tax Lot Holdings' Includes all tax lot holdings with recognized CUSIP and quantity. Original Face Value $15,362,000 Face Value at Acquisition $15,362,000 Tax Lot Holdings Included 45 of 45 Original Principal Cost $15,480,663 Average Acquisition Price 100.772 Includes all tax lot holdings with recognized CUSIP, quantity, acquisition date/price, full analytical calculations at acquisition, market price, and full analytical calculations on reporting date. Average values Qa cost are weighted by respective original total acquisition costs. Includes all tax lot holdings with recognized CUSIP, quantity, and acquisition date/price. All prices have been normalized to par. Average acquisition price is weighted by original principal cost. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Page 5 of 23 PPENHEIMEK Position Details CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 081383Q87 430 xxxxxx9707 Al/AA BEMIDJI MINN 5.000% 100.000 Maturity 02/01/2022 4.879%(w) 4.879% 4.879% 03/18/2020 $430,039 $430,000 ($39) Muni 2-80% Held (A IF) 02/01/2022 0.00 Cuff Yield - 5.000% 106.61811.400% 100.009 $10,690 (0.0%) S&P Outlook Stable I General Obligation I Recreation I AGMC Insured I Semi -Annual Pay 264474GV3 1,000 xxxxxx9707 WRA DULUTH MINN INDPT SCH DIST 5.000% 100.000 Maturity 02/01/2022 4.879% (w) 4.879% 4.879% 03126/2020 $1,000,060 $1,000,000 ($60) Muni 6.51% Held (cow-) N0709 CTFS PARTN 02/012022 0.00 Cuff Yield - 5.000% 104.29712.600% 100.006 $24,861 (0.0%) Material Events I Certificate of Participation I Education I Semi -Annual Pay 38148PGX9 247 xxxxxx9707 4- GOLDMAN SACHS BK USA 2.300% 100.220 Maturity 03/08/2022 -0.132% (w) -0.132% -0.132% 05/09/2017 $247,000 $247,543 8v CD 1.61% Held FDIC Cart A, 33124 03/082022 0.09 Cuff Yield - 2.295% 100.000 / 2.299% 100.000 $2,304 Death Put I GS I Semi -Annual Pay 87164XPZ3 245 xxxxxx9707 -/- SYNCHRONYBANK 2.400% 100.421 Maturity 04/07/2022 -0.039%(w) -0.039% -0.039% 05/09/2017 $245,000 $246,031 $1,031 CD 1.59% Held FDIC Cart A, 27314 04/072022 0.17 Curr Yield - 2.390% 100.000 / 2.400% 100.000 $1,917 0.4% Death Put I SYF I Semi -Annual Pay I Restricted States: TX 574446GV6 500 xxxxxx9707 Aa1/- MARYSVILLE MICH PUB SCHS DIST 2.317% 100.441 Maturity 05/01/2022 0.508% (w) 0.508% 0.508% 05/09/2017 $494,230 $502,205 $7,975 Muni 3.25% Held (A3-) 05/01/2022 0.24 Cuff Yield - 2.307% 98.846 / 2.565 % 98.846 $2,961 1.6% Material Events I Federally Taxable I General Obligation I Education I Semi -Annual Pay 64971WJ35 500 xxxxxx9707 Aal/AAA NEWYORK NY CITY TRANSITIONAL 1.650% 100.316 Maturity 05/01/2022 0.355% (w) 0.355% 0.355% 05/09/2017 $497,125 $501,580 $4,455 Muni 3.25% Held (Aa1/-) FIN AUTH REV 05/01/2022 0.24 Cuff Yield - 1.645% 99.425 / 1.771% 99.425 $2,108 0.9% Material Events I Federally Taxable I S&P Outlook Stable I Make Whole Call I Revenue I Government I Semi -Annual Pay 977100GU4 500 xxxxxx9707 Aa2l- WISCONSIN ST GEN FD ANNUAL 1.720% 100.356 Maturity 05/01/2022 0.262% (w) 0.262% 0.262% 08/26/2020 $501,605 $501,780 $175 Muni 3.25% Held (Aa2/--) APPROPRIATION REV 05/01/2022 0.24 Cuff Yield - 1.714% 102.208 / 0.400% 100.321 $2,198 0.0% Material Events I Federally Taxable I State Taxable I Make Whole Call I Pro -Rats I Revenue I Government I Semi -Annual Pay 13281 NYX4 205 xxxxxx9707 Aat/AA CAMDEN CNTY N J IMPTAUTH REV- 0.591% 99.978 Maturity 07/15/2022 0.640% (w) 0.640% 0.640% 09/10/2020 $205,174 $204,955 ($219) Muni 1.33% Held (Aa1/-) CROSSROADS REDEV PROJ 07115QO22 0.45 Cuff Yield - 0.591% 100.35110.400% 100.085 $61 (0.1%) Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay 15721UCT4 245 xxxxxx9707 -/- CFBANK FAIRLAWN OH 3.250% 101.436 Maturity 07/19/2022 0.092% (w) 0.092% 0.092% 12119/2018 $245,000 $248,518 $3,518 CD 1.59% Held FDIC Cart A, 28263 0711912022 0.46 Cuff Yield - 3.204 % 100.000 / 3.250% 100.000 $327 1.4% Death Put I CFBK I Monthly Pay I Restricted States: CA,PR,TN,TX Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (Y7M9. Duration figure represents modified duration to worst. ATY(TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 6 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield 02587DV47 245 xxxxxx9707 -I- AMERICAN EXPRESS CENTURIAN BK 2.350% 101.114 Maturity 08/08/2022 0.162% (w) CD 1.59% Held CTF DEP PROGRAM BOOK ENTRY 08/08/2022 0.51 Cuff Yield - 2.324% FDIC Cart A, 27471 Death Put I AXP I Semi -Annual Puy I Restricted States: OH, TX 01748DAY2 245 xxboac9707 -/- ALLEGIANCE BK TEX HOUSTON 2.200% 101.394 Maturity 11/03/2022 0.334% (w) CD 1.59% Held FDIC Cert A, 56629 11/03/2022 0.74 Cuff Yield - 2.170% Death Put I ABTX I Monthly Pay I Restricted States: TX 254672WU8 245 xxxxxx9707 4- DISCOVER BK 2.450% 101.643 Maturity 11/18/2022 0.362%(w) CD 1.59% Held FDIC Cert A, 5649 11/18/2022 0.78 Cuff Yield - 2.410% Death Put I DFS I Semi -Annual Pay 214201GK5 150 xxxxxx9707 A2/- COOK CNTY ILL SCH DIST NO 0.000% 97.875 Maturity 12/01/2022 2.612% (w) Muni 0.98% Held (-/-) 089MAYWOOD 12/012022 0.82 Cuff Yield - 0.000% Material Events I Federally Taxable I State Taxable I General Obligation I Education I AGMC Insured 949495AQ8 245 xxxxxx9707 d- WELLS FARGO NATL BK WEST LAS V 1.900% 101.367 Maturity 01/17/2023 0.463% (w) CD 1.59% Held FDIC Cert A, 27389 01/17/2023 0.95 Curr Yield - 1.874% Death Put I WFC I Monthly Pay Acq Date Tot Adj Cost Mkt Principal Unreal GIL ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 0.162% 0.162% 08/08/2017 $245,000 $247,729 $2,729 100.000 / 2.350% 100.000 $2,824 1.1% 0.334% 0.334% 11/03/2017 $245,000 $248,415 $3,415 100.000 / 2.200% 100.000 $0 1.4% 0.362% 0.362 % 05/09/2017 $245,000 $249,025 $4,025 100.00012.450% 100.000 $1,266 1.6% 2.612% 2.612% 10/27/2020 $148,977 $146,812 ($2,164) 98.341 / 0.800 % 99.318 $0 (1.5%) 0.463% 0.463% 01/17/2020 $245,000 $248,349 $3,349 100.000 / 1.900% 100.000 $217 1.4% 58404DDMO 245 xxxxxx9707 -/- MEDALLION BK UTAH 2.850% 102.526 Maturity 03/06/2023 0.515%(w) 0.515% 0.515% 03/05/2019 CD 1.59% Held FDIC Cert A, 57449 03/062023 1.07 Cuff Yield - 2.780% 100.000 / 2.850% Death Put I MEDBNK I Monthly Pay I Restricted States: AL,OH,TX 149159MQ5 245 xxxxxx9707 d- CATHAY BK LOS ANGEL CALIF 3.150 % 103.333 Maturity 06/08/2023 0.652% (w) 0.652% 0.652% 06/08/2018 CD 1.59% Held FDIC Cert A, 18503 06/082023 1.32 Cuff Yield - 3.048% 100.000 / 3.150 % Death Put I CATY I Semi -Annual Pay I Restricted States: CA, NY 856425AR4 245 xx)0=9707 -/- STATE BANK OF LISMORE LISMORE 3.100% 103.361 Maturity 06/27/2023 0.678% (w) 0.678% 0.678% 06/27/2018 CD 1.59% Held MN 06272023 1.37 Cuff Yield - 2.999% 100.00013.100% FDIC Cert #: 8190 Death Put I SBKLIS I Monthly Pay 45581 EAX9 245 xxxxxx9707 -/- INDUSTRIAL & COML BK CHINA USA 3.300% 103.656 Maturity 06/30/2023 0.680% (w) 0.680% 0.680 % 08/30/2018 CD 1.59% Held FDIC Cert A, 24387 06/302023 1.37 Cuff Yield - 3.184% 100.000 / 3.300% Death Put I INDCMB I Monthly Pay I Restricted States: NON-USACCOUNTS Includes all tax lot holdings with recognized CUSIP. Far preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (Y7M9. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 7 of 23 $245,000 $251,189 $6,189 100.000 $555 2.5% $245,000 $253,166 $8,166 100.000 $1,205 3.3% $245,000 $253,234 $8,234 100.000 $146 3.4% $245,000 $253,957 $8,957 100.000 $89 3.7% PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Position Details CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 75472RAW1 245 xxxxxx9707 -/- RAYMOND JAMES BK NATL ASSN 1.700% 101.424 Maturity 08/14/2023 0.760%(w) 0.760% 0.760% 02/14/2020 $245,000 $248,489 12,49) CD 1.59% Held FDIC Cert A, 33893 08/142023 1.50 Cuff Yield - 1.676 % 100.000 / 1.700% 100.000 $1,974 t Death Put I RJF I Semi -Annual Pay 59833LAF9 245 xxxxxx9707 -/- MIDWEST INDPT BK MO 3.150% 103.787 Maturity 09/18/2023 0.799% (w) 0.799% 0.799% 09/17/2018 $245,000 $254,278 $9,278 CD 1.59% Held FDIC Cert A, 25849 09/18/2023 1.58 Cuff Yield - 3.035 % 100.000 / 3.150% 100.000 $359 Death Put I MIDINB I Monthly Pay 61760ARSO 245 xxxxxx9707 4- MORGAN STANLEY PRIVATE BK 3.550% 104.541 Maturity 11/08/2023 0.944% (w) 0.944% 0.944% 11/08/2018 $245,000 $256,125 "'' 11 CD 1.59% Held NATL 11/082023 1.70 Cuff Yield - 3.396% 100.00013.550% 100.000 $2,073 - FDIC Cert A, 34221 Death Put I MS I Semi -Annual Pay 538036CZ5 245 xxxxxx9707 -/- LIVE OAK BANKING COMPANY 2.500% 102.903 Maturity 12/13/2023 0.923% (w) 0.923% 0.923% 12/13/2017 $245,000 $252,112 $7,112 CD 1.59% Held WILMINGTON NC 12/13/2023 1.81 Cuff Yield - 2.429% 100.00012.500% 100.000 $34 2.9% FDIC Cert A, 58665 Death Put I LIVOAK I Monthly Pay 03784JSL9 245 xxxxxx9707 -/- APPLE BANK FOR SAVINGS 0.600% 99.243 Maturity 01/22/2024 0.989% (w) 0.989% 0.989% 01/26/2022 $243,456 $243,145 ($311) CD 1.59% Held FDIC Cert A, 16068 01222024 1.94 Cuff Yield - 0.605% 99.370 / 0.920% 99.370 $52 (0.1%) Death Put I APPBNK I Semi -Annual Pay I Restricted States: TX 06251AV80 245 xxxxxx9707 -/- BANK HAPOALIM B M NEW YORK 3.200% 104.326 Maturity 01/23/2024 0.977% (w) 0.977% 0.977% 01/23/2019 $245,000 $255,599 $10,599 CD 1.59% Held FDIC Cert A, 33686 0123/2024 1.91 Cuff Yield - 3.067 % 100.000 / 3.200% 100.000 $236 4.3% Death Put I Foreign I Emerging I HAPOAL I Semi -Annual Pay I Restricted States: MT,TX 20033AP91 245 xxxxxx9707 -/- COMENITY CAP BK UTAH 3.100% 104.223 Maturity 02/15/2024 1.001% (w) 1.001% 1.001 % 02/15/2019 $245,000 $255,346 $10,346 CD 1.59% Held FDIC Cart A, 57570 0211WO24 1.97 Cuff Yield - 2.974 % 100.000 / 3.100% 100.000 $395 4.2% Death Put I ADS I Monthly Pay I Restricted Stales: OH,TX 057864AZ3 485 xxxxxx9707 Aa2/AA BALDWIN CNTY ALA PUB BLDG AUTH 3.000% 103.775 Maturity 03/01/2024 1.156% (w) 1.156% 1.156% 03/20/2020 $489,874 $503,309 $13,435 Muni 3.16% Held (A221--) BLDG REV - JAIL PROJ 03/01/2024 2.00 Cuff Yield - 2.891 % 101.867 / 2.500% 101.005 $6,143 2.7%% Material Events I S&P Outlook Stable I Extraordinary Calls I Revenue I Government I Semi -Annual Pay 65621XAN9 580 xxxxxx9707 -/AA+ NORMANDY SCHS COLLABORATIVE 0.550% 98.129 Maturity 03/01/2024 1.468% (w) 1.468% 1.468% 12/07/2021 $577,048 $569,148 ($7,900) Muni 3.78% Held (-/A-) MO JT EXECUTIVE GOVERNING BRD 03/01/2024 2.05 Cuff Yield - 0.560% 99.491 / 0.780% 99.491 $2,198 (1.4%) ST LOUIS CNN Federally Taxable I Stale Taxable I S&P Outlook Stable I Long First Coupon I General Obligation I Education I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTM9. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 8 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 90348JJQ4 245 xxxxxx9707 -/- UBS BK USA SALT LAKE CITY UT 2.900% 104.001 Maturity 04/03/2024 1.030 % (w) 1.030 % 1.030% 04/03/2019 $245,000 $254,802 $9,802 Co 1.59% Held FDIC Cert A, 57565 04/03/2024 2.10 Cuff Yield - 2.788 % 100.000 / 2.900% 100.000 $0 4.0% Death Put I UBS I Monthly Pay 20056UAV6 500 xxxxxx9707 -/AA COMMERCE CALIF CMNTY DEV 3.000% 103.281 Maturity 08/01/2024 1.652% (w) 1.652% 1.652% 05/09/2017 $509,660 $516,405 $6,745 Muni 3.25% Held (-IA) COMMN SUCCESSOR AGY TAX 08/012024 2.40 Cuff Yield - 2.905 % 105.319 / 2.200% 101.932 $83 1.3% ALLOCATION Federally Taxable I S&P Outlook Stable I DID I Revenue I Government I AGMC Insured I Semi -Annual Pay 438687KT1 1,000 xxxxxx9707 Aa1/- HONOLULU HAWAII CITY & CNTY 1.832% 100.827 Maturity 08/01/2024 1.493% (w) 1.493% 1.493% 10/30/2019 $996,000 $1,008,270 $12,270 Muni 8.51 % Held (As 1/--) 08/012024 2.43 Cuff Yield - 1.817 % 99.600 / 1.920 % 99.600 $102 1.2% Material Events I Federally Taxable I Make Whole Call I General Obligation I Government I Semi -Annual Pay 20772,13,19 570 xxxxxx9707 Aa3/A+ CONNECTICUTST 2.400% 102.279 Maturity 08/15/2024 1.480% (w) 1.480% 1.480% 07/11/2019 $568,906 $582,990 $14,085 Muni 3.71% Held (Aa3/-) 0811WO24 2.43 Cuff Yield - 2.347% 99.808/2.440% 99.808 $6,384 2.5% Material Events I Federally Taxable I S&P Outlook Stable I General Obligation I Government I Semi -Annual Pay 64971QJ38 500 xxxxxx9707 Aal/AAA NEWYORK NY CITY TRANSITIONAL 2.600% 100.882 Next Call 11/01/2022 1.403% (w) 1.403% 1.403% 05/09/2017 $486,750 $504,410 $17,660 Muni 3.25% Held (As 1/-) FIN AUTH REV 11/012024 0.73 Maturity 11/01/2024 2.266% 2.266% 2.266% 97.35012.998% 97.350 $3,322 3.6% Cuff Yield - 2.577% Material Events I Federally Taxable I S&P Outlook Stable I Callable I Revenue I Government I Semi -Annual Pay 795451 BAO 245 xxxxxx9707 -/- SALLIE MAE BK MURRAY UTAH 1.000% 99.445 Maturity 12/16/2024 1.197% (w) 1.197% 1.197% 12/15/2021 $245,000 $243,640 ($1,360) CD 1.59% Held FDIC Cert A, 58177 12/162024 2.81 Cuff Yield - 1.006% 100.000 / 1.000% 100.000 $336 (0.6%) Death Put I SALLMA I Semi -Annual Pay I Restricted States: OH,TX 287299MR9 150 xxxxxx9707 -/AA+ ELK GROVE VILLAGE ILL 1.000% 98.147 Maturity 01/01/2025 1.655% (w) 1.655% 1.655% 11/01/2021 $150,000 $147,220 ($2,779) Muni 0.98% Held (49 01/01/2025 2.85 Cuff Yield - 1.019 % 100.000 / 1.000% 100.000 $133 (1.9%) Federally Taxable I Stale Taxable I S&P Outlook Stable I Short First Coupon I General Obligation I Government I Semi -Annual Pay 696583GV9 460 xxxxxx9707 Aal/AAA PALM BEACH FLA REV 2.500% 102.598 Maturity 01/01/2025 1.583% (w) 1.583% 1.583% 01/08/2020 $465,814 $471,951 $6,136 Muni 2.99% Held (As 1/-) 01/01/2025 2.80 Cuff Yield - 2.437% 102.12012.050% 101.264 $1,022 1.3% Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay 59013KFJO 245 xxxxxx9707 -/- MERRICK BK SOUTH JORDAN UTAH 1.800% 101.693 Maturity 01/31/2025 1.224% (w) 1.224% 1.224% 01/31/2020 $245,000 $249,148 $4,148 CD 1.59% Held FDIC Cert A, 34519 01/31/2025 2.91 Cuff Yield - 1.770 % 100.000 / 1.800% 100.000 $36 1.7% Death Put I MERICK I Monthly Pay I Restricted States: OH,TX Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW. Duration figure represents modified duration to worst. ATY(TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 9 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 16166NCL7 300 xxxxxx9707 -/AA- CHASKA MINN ECONOMIC DEV 3.430% 103.766 Maturity 02/01/2025 2.125%(w) 2A25% 2.125% 02/03/2020 $314,190 $311,298 ($2,892) Muni 1.95% Held (-/-) AUTHLEASE REV 02/01/2025 2.84 Cuff Yield - 3.306% 107.752 / 1.800% 104.730 $57 (0.91%) Material Events I Federally Taxable I State Taxable I S&P Outlook Negative I Revenue I Industrial I Semi -Annual Pay 05465DAE8 246 xxxxxx9707 -/- AXOS BK SAN DIEGO CALIF 1.650% 101.211 Maturity 03/26/2025 1.257%(.) 1.257% 1.257% 03/26/2020 $245,000 $247,967 $2,967 CD 1.59% Held FDIC Cert A, 35546 03/262025 3.06 Cuff Yield - 1.630% 100.000 / 1.650% 100.000 $89 1.2% Death Put I BOR I Monthly Pay 59334PJA6 375 xxxxxx9707 -/AA MIAMI-DADE CNTY FLA TRAN SYS 0.900% 97.412 Maturity 07/01/2025 1.684% (w) 1.684% 1.684% 11/23/2021 $373,012 $365,295 ($7,717) Muni 2.44% Held (a) SALES SURTAX REV 07/012025 3.34 Cuff Yield - 0.924% 99.470 / 1.050% 99.470 $300 (2.1%) Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay 29278TMJ6 245 xxxxxx9707 -/- ENERBANK USA UT 2.000% 102.216 Maturity 10/31/2025 1.392% (w) 1.392% 1.392% 10/31/2019 $245,000 $250,429 $5,429 CD 1.59% Held FDIC Cert A, 57293 10/312025 3.60 Cuff Yield - 1.957 % 100.000 / 2.000% 100.000 $40 2.2% Death Put I CMS I Monthly Pay I Restricted Stales: OH,TX 032879UV8 500 xxxxxx9707 -/AA ANCHOR BAY MICH SCH DIST 1.250% 97.843 Matunly 05/01/2026 1.780% (w) 1.780% 1.780% 07/16/2020 $502,680 $489,215 ($13,465) Muni 325% Held (-/-) 05/01/2026 4.10 Cuff Yield - 1.278% 100.726/1.120% 100.536 $1,597 (2.7%) Material Events I Federally Taxable I S&P Outlook Stable I General Obligation I Education I Semi -Annual Pay 71884AH28 135 xxxxxx9707 Aa2/AAA PHOENIX ARIZ CIVIC IMPT CORP 1.157% 97.215 Maturity 07/01/2026 1.817% (w) 1.817% 1,817% 12/14/2021 Muni 0.88% Held (Aa2/--) EXCISE TAX REV 07/01/2026 4.27 Cuff Yield - 1.190% 99.370 / 1.300% Material Events I Federally Taxable I S&P Outlook Stable I Make Whole Call I Revenue I Government I Semi -Annual Pay 89235MLD1 245 xxxxxx9707 -/- TOYOTA FINL SVGS BK HEND NV 0.950% 97.338 Maturity 07/22/2026 1.569% (w) 1.569% 1.569% 07/22/2021 CD 1.59% Held FDIC Cert A, 57542 07/22/2026 4.34 Cuff Yield - 0.976% 100.000 / 0.950% Death Put I TOYFBN I Semi -Annual Pay I Restricted States: OH,TX 798306WO5 140 xxxxxx9707 Aa2/- SAN JUAN CALIF UNI SCH DIST 1.201% 97.573 Maturity 08/01/2026 1.765% (w) 1.765% 1.765% 11/12/2021 Muni 0-91% Held (A821--) 08/012026 4.35 Cuff Yield - 1.231% 100.000/1.201% Federally Taxable I Make Whole Call I General Obligation I Education I Semi -Annual Pay 3130APC45 500 xxxxxx9707 Aaa/AA+ FEDERAL HOME LOAN BANKS 1.180% 98.531 Next Call 02/26/2022 23.486% 23.486% 23.486% 10/26/2021 Agy 3.25% Held 10262026 4.57 Maturity Cuff Yield 10/26/2026 - 1.503% (w) 1.198% 1.503% 1.503% 100.000 / 1.180% Moody's Outlook Stable I S&P Outlook Stable I FHLB I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTM9. Duration figure represents modified duration to worst. ATY(TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 10 of 23 $134,150 $131,240 ($2,909) 99.370 $139 (2.2%) $245,000 $238,478 ($6,522) 100.000 $77 (2.7%) $140,000 $136,602 ($3,398) 100.000 $9 (2.4%) $500,000 $492,655 ($7,345) 100.000 $1,573 (1.5%) r ppENHEIMEk Coupon Cash Flow - Year 1 CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Coupon Cash Flowby •' Time Period: 0210112022 - 0113112023 Feb'22 Mar22 Apr'22 May'22 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb,23 Total %Tot Agency $2,950 $2,950 $5,900 2.0 Agency Pass-Thru - - - - Asset -Backed - - - - - - - CD $11,894 $9,272 $9,919 $14,101 $12,057 $12,583 $11,257 $6,311 $6,157 $13,721 $10,812 $11,745 $129,827 43.1 CMO - - - - - - - - - - - - - - Corporate - - - - - - - - - - Muni: Fed Tax $29,486 $2,446 $23,842 $9,574 $29,486 $1,595 $9,625 $8,968 I $115,022 38.2% Muni: Tax -Exempt $35,750 $7,275 - - - $7,275 - - $50,300 16.7% Muni: Subj AMT - - - :i - - Pfd: Fed Tax Pfd: Tax -Exempt Pfd: Cap Gains Treasury Total $77,129 $18,992 $12,869 $37,944 $12,057 $22,157 $40,742 $15,181 $9,107 $23,346 $10,812 $20,713 I $301,049100.0% Fed Tax -Exempt + $35,750 $7,275 - - - - - $7,275 - - - - $50,300 16.7 Fed Taxable I $41,379 $11,717 $12,869 $37,944 $12,057 $22,157 $40,742 $7,906 $9,107 $23,346 $10,812 $20,713 $250,749 83.3% Subj to Cap Gains Subj to AMT Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Subj to AMT $60,000 $40,000 $0 Feb'22 Mar'22 Apr22 May'22 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'22 Dec'22 Jari Feb'23 Includes all tax holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Includes coupon cash Mows for the next 12 months, from 0210112022 to 0113112023. Totals are the sum of rounded displayed values. The cash flows displayed are only estimates. Your actual interest and principal payments may be higher or lower than these estimates. Projected Principal Paydowns for CMOs are produced by applying current pool speeds which are updated weekly. Assuming similar market conditions going forward, Projected Principal Paydowns for Pass-Thru securities are produced by calculating and applying concurrent historical speeds to future paydown schedules. Page 11 of 23 PPENHEIMEK Maturity & Duration - All CITY OF HUTCHINSON report as of 0210112022 XXXXXX9707 Year Curr Face % Mkt Principal % Range 40% 2022 $4,757,000 30.97% $4,774,595 30.78% 00-01 2023 $2,205,000 14.35% $2,270,900 14.64% 01-02 0 2024 $4,860,000 31.64% $4,937,065 31.82% 02-03 2025 $2,020,000 13.15% $2,043,308 13.17% 03-04 2026 $1,520,000 9.89% $1,486,191 9.59% 04-05 20% 2027 O5-O6 2028 06-07 � N 2029 07-08 0 2030 OB-09 2031 09-10 2032 10-11 0% oryt,oryn�oryporyyorytooti�oti0otioro,Soo,S.yobt,o�n�o,,po,,yo,,too,5A0,50o,5oioaooayobI,obn�oapoayoatooa�oa0oaoroyooyyry fie\ 2033 11-12 2034 12-13 Qe 2035 13-14 2036 14-15 • 2037 15-16 2038 16-17 2039 17-18 0 2040 18-19 40% 2041 19-20 2042 20-21 c m 2043 21-22 a 2044 22-23 2045 23-24 20% 2046 24-25 2047 25-26 2048 26-27 of 2049 27-28 2050 28-29 ' 2051 29-30 0% 2052+ 30+ Perpetual Displays represent % ufmarket principal for all tax lot holdings with a recognized CUSIP, quantity, current market price and full analytical tabulations A"mge life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Duration figure represents modified duration to worst. Page 12 of 23 Curr Face % Mkt Principal $5,502,000 35.82% $5,527,355 35.63% $3,180,000 20.70% $3,279,950 21.14% $4,295,000 27.96% $4,354,873 28.07% $865,000 5.63% $863,691 5.57% $1,520,000 9.89% $1,488,191 9.59%