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cp08-27-24A CITY ON PURPOSE. CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, August 27, 2024 4:00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, August 27, 2024, at 4:00 p.m. in the Council Chambers at the Hutchinson City Center, 1 I I Hassan Street SE, Hutchinson, Minnesota for the following purpose: • Budget Workshop — Preliminary Capital Improvement Plan 1 Matthew Jaun' , City Admiii` ator DATED: August 23, 2024 POSTED: City Center HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, AUGUST 27, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Church of Jesus Christ of Latter Day Saints (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 stafj) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Proclamation — Barry Anderson Day 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 e recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 13, 2024 CONSENT AGENDA 77- (I' e items listedor 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 I (a) Affirmation of Board Appointments I . Reappointment of Troy Pullis to Airport Commission to September 2029 2. Appointment of Matt Wherley to Airport Commission to September 2029 3. Appointment of Bryce Rusch to Airport Commission to September 2029 4. Appointment of Amy Parsons to Sustainability Advisory Board to May 2027 (b) Consideration for Approval of Chip and Fog Seal (c) Consideration for Approval of Asphalt Overlay for Water Department Back Parking Lot (d) Consideration for Approval of Reconstruction of Wastewater Plant Entrance CITY COUNCIL AGENDA —August 27, 2024 (e) Consideration for Approval of Birdie Circle Pond Site Grading and Improvements (f) Consideration for Approval of Tandem Truck Purchase (g) Consideration for Approval of Resolution No. 15761 — Authorization to Execute MnDOT Agency Agreement for Federal Airport Expenses Reimbursement (h) Consideration for Approval of Subdivision Agreement with Top 10 Options (i) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — NONE COMMUNICATIONS RE UESTS AND PETITIONS (Thep urpose o this portion oi the agenda is to provi e the ounci with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) 9. DISCUSSION ON CANNABIS REGULATION UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY RESOLUTION NO. 15760 — RESOLUTION AUTHORIZING THE SALE OF GENERAL OBLIGATION BONDS, SERIES 2024A 11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 24-848 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING DRAINAGE AND UTILITY EASEMENT LOCATED IN SECOND ADDITION TO THE MEADOWS GOVERNANCE ('The purpose of this 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) 12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson Housing & Redevelopment Authority Board Minutes from July 16, 2024, and August 15, 2023 (Annual Meeting) (b) City of Hutchinson Financial Report and Investment Report for July 2024 2 CITY COUNCIL AGENDA — August 27,2024 MISCELLANEOUS 13. STAFF UPDATES 14. COUNCIL/MAYOR UPDATE ADJOURNMENT u HUTCHINSON A CITY ON PURPOSE. PROCLAMATION WHEREAS, on May 10, 2024, Barry Anderson retired as an associate justice of the Minnesota Supreme Court after serving nearly 10 years in the position after being appointed by Governor Tim Pawlenty on October 13, 2004; and WHEREAS, Barry previously had served as a member of the Minnesota Court of Appeals from 1998 to 2004; and WHEREAS, Barry served with distinction as the city attorney for the city of Hutchinson from 1987 to 1998; and WHEREAS, Barry's service to the Hutchinson community goes beyond serving as the city attorney. Barry's service includes time as the chairman of the Board of Directors of the Hutchinson Community Video Network and two terms as President of the Hutchinson Rotary Club along with various other community activities; and WHEREAS, Barry is also a frequent contributor to continuing legal education efforts on many levels, including serving as a national judge of the "We the People" high school civics competition and moderating Pioneer PBS's "Your Legislators" for over 20 years. NOW, THEREFORE, I, Gary Forcier, Mayor of the City of Hutchinson do hereby proclaim Tuesday, September 10, 2024 as: ""Barry Anderson Day" in the City of Hutchinson, Minnesota in recognition of Barry's contribution to the rule of law as a Judge on the Minnesota Court of Appeals and the Minnesota Supreme Court, and for Barry's service as city attorney and time spent on the various boards, committees and community activities throughout the city of Hutchinson. IN WITNESS WHEREOF, I have hereunto set my hand this 271" day of August, 2024. Gary T. Forcier, Mayor City of Hutchinson, Minnesota HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 13, 2024 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 Tim Burley, Dave Sebesta, Pat May and Chad Czmowski. Also 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 May, second by Sebesta, to approve agenda as presented. Motion carried unanimously. 2. INVOCATION — Faith Lutheran 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 or, 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) Proclamation —Welcoming Week Mayor Forcier read a proclamation proclaiming September 13-20, 2024 as "Welcoming Week". (b) Resolution No. 15758 — Resolution Accepting $3000.00 Donation from Crow River Sno Pros for Equipment Purchases at Hutchinson Fire Department Motion by Czmowski, second by Burley, to approve Resolution No. 15 75 8. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members qf 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 July 23, 2024 (b) Strategic Planning Session of July 23, 2024 Motion by May, second by Sebesta to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA CITY COUNCIL MINUTES — August 13, 2024 (The items listed for consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Resolution No. 15756 — Resolution to Sell at Auction Found Bicycles (b) Consideration for Approval of Resolution No. 15757 — Resolution to Sell at Auction Unclaimed Property (c) Consideration for Approval of Resolution No. 15759 — Resolution to Appropriate Unclaimed Property to Hutchinson Police Department Use (d) Consideration for Approval of Closing 200 Block of Hassan Street on September 6, 2024, for Customer Appreciation Event (e) Consideration for Approval of Issuing Parade Permit to Hutchinson High School Student Council on September 13, 2024, for Homecoming Parade (f) Consideration for Approval of Issuing Temporary Liquor License to Bobbing Bobber Brewing Company on September 28, 2024 (g) Consideration for Approval of Premises Permit Application for Hutchinson Hockey Association, Inc. at Buffalo Wild Wings Located at 1040 Hwy 15 South (h) Consideration for Approval of Letter of Support to McLeod County SWCD for Accelerated Implementation Grant (i) Consideration for Approval of MNDOT Aeronautics Airport Improvement Grants 1. Drainage Ditch Outlet Cleaning 2. Runway Safety Area Grading Improvements 3. Runway Obstruction Removal 4. Clear Zone Acquisition Plan (j) Consideration for Approval of Micro Surface Asphalt Treatment (k) Claims, Appropriations and Contract Payments — Register A Motion by Czmowski, second by Burley, to approve Consent Agenda L Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Czmowski, second by Burley, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS — NONE 2 CITY COUNCIL MINUTES — August 13, 2024 MMUNICATIONS RE UESTS AND PETITIONS purpose o this portion oj the agenda is to provide the ounci with information necessary to craft wise policy. rdes items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY LEASE AGREEMENT WITH DEROCK CAPITAL GROUP AT 44 WASHINGTON AVENUE WEST Matt Jaunich, City Administrator, noted that at the last meeting, the City Council approved the ordinance officially selling the old EOC building to the DeRock Capital Group. As was shared at the meeting, there was an issue with the deed for the property. It was discovered that the City had purchased the EOC building in 1956 through a contract for deed. However, the deed transferring the property to the City was never formally recorded. The City now has to go through the quiet title action process which will delay the closing with DeRock Capital Group. Due to this delay, the City has worked with the buyer in drafting a lease agreement allowing them access to the building now to begin demolition/remodeling work. Motion by May, second by Burley, to approve lease agreement with DeRock Capital Group at 44 Washington Avenue West. Motion carried unanimously. 10. APPROVE/DENY SETTING COUNCIL BUDGET WORKSHOPS (a) August 27, 2024, at 4:00 p.m. to Review Preliminary Capital Improvement Plan (b) September 10, 2024, at 4:00 p.m. to Review Preliminary Budget and Tax Levy Motion by Czmowski, second by Burley, to approve setting budget workshops for August 27, 2024, and September 10, 2024. Motion carried unanimously. GOVERNANCE (The purpose of this 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) Nuisance Vegetation Report Through July 2024 MISCELLANEOUS 12. STAFF UPDATES Matt Jaunich — Mr. Jaunich noted that the aquatic center closes this Friday August 16, 2024 due to staffing. The primary election is today so he encouraged people to vote. He noted that work has begun CITY COUNCIL MINUTES — August 13, 2024 on the VMF grandstand project. He lastly noted that he and staff members would like to work on putting a meeting together with state legislators before the 2025 session begins to discuss several projects and they may ask for council members' assistance in reaching out to them to get that scheduled. 13. COUNCIL/MAYOR UPDATE Tim Burley — Council Member Burley noted that the The Wall That Heals will be displayed on Benjamin Avenue near the EDA's office/building from August 22 — August 25, 2024. He noted that it is open and displayed 24 hours a day during that time frame. He also noted that there are volunteer opportunities available as well while the project is in town. Gary Forcier — Mayor Forcier read a letter he received noting that the League of Minnesota Cities has recognized one of Hutchinson's local legislators, Dawn Gillman, as a 2024 Legislator of Distinction. Chosen legislators are honored for specific actions that aided efforts of Minnesota cities during the past year's state legislative session. Mayor Forcier also commended city staff on assisting with all of the community festivals that are held throughout the year that really boosts the economy of Hutchinson. ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 4:20 p.m. Motion carried unanimously. 4 H UTCH I HSO H A CITY ON PURPOSE. BOARDS/COMMISSION INTEREST FORM www.ci.hutchinson.mn.us Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN Name: Address: Fax # (320) 234-4240 Phone # (320)587-5151 0 Home Phone #: Work Phone #: �� Cell Phone #: 7-0 - S -3�c( Email Address: (� 4 Z 6' (?.k4<�• eft occupation: Gk;h Place of Employment: --- Educational Background:. TESr, J-�4 Z^✓ Number of years as Hutchinson Resident: I am interested in serving on the following City Board or Commission: o Airport Commission (5 yr. term) ❑ Bicycle/Pedestrian Advisory Committee (3 yr. term) ❑ Charter Commission (4 yr. term) ❑ HRA Board (5 yr. term) ❑ EDA Board (6 yr. term) ❑ Library Board (3 yr. term) ❑ Park/Rec/Comm Ed Board (3 yr. term) ❑ Planning Commission (5 yr. term) ❑ Police Civil Service Commission (3 yr. term) ❑ Public Arts Commission (3 yr. term) ❑ Senior Advisory Board (3 yr. term) ❑ Sustainability Advisory Board (3 yr. term) ❑ Utilities Commission (5 yr. term) -OVER- Explain why you are interested in this board/commission: t q ivy co,*tesoyt5�v Please describe any prior/current experience that may relate to serving on this board/commission: Please List Other Municipal Boards and/or Commission you may have served. Years Served 1.) .to. 2.) to 3.) to 4.) to Please return completed form to Melissa Starke at City Center, ill Hassan Street SE, if you are interested in serving on any of the above boards/commissions. We thank you for your interest. This form will be placed on file and we will refer to the file as openings occur. HUTCHINSOV A CITY ON PURPOSE. BOARDS/COMMISSION INTEREST FORM l www.ci.hutchinson.w.us Fax # (320) 234-4240 II I Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN Phone # (320) 587-5151 Name: Address: lacuZ57 1S� f !' —,S7?SZ) - Home Phone #: N 14 Work Phone #: q4 Cell Phone #: Email Address: Occupation:.; Ss.v�► f« �k4 Place of Employment: Educational Background: 14Yv, ncav Number of years as Hutchinson Resident: a-7 36 I am interested in serving on the following City Board or Commission: Airport Commission (5 yr. term) ❑ Bicycle/Pedestrian Advisory Committee (3 yr. term) ❑ Charter Commission (4 yr. term) ❑ HRA Board (5 yr. term) ❑ EDA Board (6 yr. term) ❑ Library Board (3 yr. term) ❑ Park/Rec/Comm Ed Board (3 yr. term) ❑ Planning Commission (5 yr. term) ❑ Police Civil Service Commission (3 yr. term) ❑ Public Arts Commission (3 yr. term) ❑ Senior Advisory Board (3 yr. term) ❑ Sustainability Advisory Board (3 yr. term) ❑ Utilities Commission (5 yr. term) -OVER- Explain why you are interested in this board/commission: <. -\,r- Please describe any prior/c�yrr nt experience that may relate to serving on this board/commission: I� f Please List Other Municipal Boards and/or Commission you may have served. j Years Served 1.) to T 2) to 3.) to 4.) to Please return completed form to Melissa Starke at City Center, 111 Hassan Street SE, if you are interested in serving on any of the above boards/commissions. We thank you for your interest. This form will be placed on file and we will refer to the file as openings occur. P - i, HUTCHINSON A GI1`Y.ON PURPOSE.. .. BOARDS/COMMISSION INTEREST FORM www.ci.hutchinson.mn.us Fax # (320) 234-4240 Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN Phone # (320) 587-5151 Name: Amy Parsons Address: 486 Connecticut St NW, Hutchinson, MN 5535.0 Home Phone #: 9103152028 Work Phone #: 3205872151 Cell Phone #: 9103152028 Email Address: Occupation: Teacher Place of Employment: Hutchinson_ High h School Educational Background: Includes a Masters degree and more grad work Number of years as Hutchinson Resident: 6 I am interested in serving on the following City Board or Commission: ❑ Airport Commission (5 yr. term) v Bicycle/,Pedestrian. Advisory Committee (3 yr. term) ❑ Charter Commission (4 yr. term) ❑ HRA Board (5 yr. term) ❑ EDA Board (6 yr. term) o Library Board (3 yr. term) ❑ Park/Rec/Comm Ed Board '(3 yr. term) ❑ Planning Commission (5 yr. term) ❑ Police Civil Service Commission (3 yr. term) ❑ Public Arts Commission (3 yr. term) VS enior Advisory Board (3 yr. term) ustainability Advisory Board (3 yr. term) ❑ Utilities Commission (5 yr. term) -OVER- Explain why you are interested in this board/commission:I had long been interested in environmental concerns and have tried to live an environmentally -conscious life. I would like to be on this committee because _I think I can help promote sustainable initiatives here in McLeod County. Please describe any prior/current experience that may relate to serving on this board/commission: I sadly have no prior experience serving on a board 'of.this type. I've served.bn various school --related committees but no governmental boards and nothing related to sustainability. Please List Other Municipal Boards and/or Commission you may have served. Years Served 1.) to z.) to 3.) 4.) to Please return completed form to Melissa Starke at City Center, 111 Hassan Street SE, if you are interested in serving on any of the above boards/commissions. We thank you for your interest. This form will be placed on file and we will refer to the file as openings occur. HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Purchase Order - Chip and Fog Seal of Century Ave, School Rd NW, and 5th Ave Agenda Item: SW Department: Public Works LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Chip and Fog seal is a recognized maintenance treatment for asphalt before it deteriorates. Two of the sections of road receiving treatment are newer construction that we wish to preserve. The 3rd section is a portion of road that is 12 years old but has held up remarkably well, enough so that we wish to prolong its already excellent performance. Purchase Order 90 BOARD ACTION REQUESTED: Approval of Purchase Order Fiscal Impact: $ 91,990.80 Funding Source: Miscellaneous infrastructure fund FTE Impact: Budget Change: New Bu Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 91,990.80 Total City Cost: $ 91,990.80 Funding Source: Miscellaneous infrastructure fund Remaining Cost: $ 0.00 Funding Source: N/A 11079 Lamont Avenue N.E. — Hanover, AAN 55341 Phone: (763) 391-6622 -- Fax: (763) 391-6627 ATTENTION: Donovan Schuette PHONE #: 320-234-4219 FAX #: 320-583.8982 Call JOB LOCATION: Hutchinson ADDRESS: 1400 Adams St SE Hutchinson DATE: July 29, 2024 WE HEREBY SUBMIT SPECIFICATIONS AND ESTIMATES FOR: ( 41,814 ) APPROX. SQUARE YARDS OF BITUMINOUS SEAL COATING. .eRE-SEAL: Area to be swept by Pearson taros., Inc. LIQUID APPLICATION: Pearson Bros., Inc. will furnish and install CRS-2P Liquid Asphalt at .25 gallons per square yard. AGGREGATE COVER: Pearson Bros.. Inc. will fumish and install 118" Trap Rock 13-16 ibs per square yard. ROLLING: Entire area shall be rolled with (2) Eleven (11) Wheel Pneumatic Tire Rakers. PIK- UP SWf EF Excess rock shall be picked up by and disposed of by Pearson Bros., Inc. START DATE: No earlier than: May 15, 2024 COMPLETION DATE: No later than: Sep 15th, 2024 Proposed znd Labor — Complete in Accordance; the Sum of: T91,41Q0 (41,814 sq yards @ $2.20 per sq yard) Payment Due Upon Completion AUTHORIZED SIGNATURE: - '_` TODD 8ARTELS PEARSON BROS., INC. ACCEPTANCE OF PROPOSAL — The above prices, SIGNATURE: specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the DATE: work as specified. Payment will be made as outlined above. Proposal good for 30 days. Please read and initial disclaimer- Bottom right fob PROPOSAL I CONTRACT Job. No. CORPORATE OFFICE 2800 Mecca Drive • Plover, VVI 64467 phone 715.341,2868 • toll-free800.332.3360 fax 715.341.1054 751 N Biuemound Drive - Appleton, WI 54914 phone 920.759.1008 • fax 920.759.1019 6615 US Highway 12 W • Eau Claire, WI 54703 phone 715.874,6070 + fax 715,874.6717 FAHRNER asphalt sealersm. T'avernent rifaintentence Contractors Contact Name: Donovan Schuette PURCHASER: CITY OF HUTCHINSON ADDRESS: 111 HASSAN STREET S.E. HUTCHINSON, MN 55350 EOE, including disabilityfvets Date: August 0% 2024 914 Commercial Court + Onalaska, W! 64660 phone 608.779.6641 + fax 608.779.6813 316 Raemisch Road • Waunakee, WI 63597 phone 608.849.6466 • fax 608.849.6470 111 Anderson Road + iron River, MI 49936 phone 906-265.6770 • fax 906.265.5719 2224 Veterans Memorial Pkwy • Saginaw, MI 48601 phone 989.752.9200 + fax 989.752.9205 Contract Price $98,402.00 TELEPHONE: (320) 583-8982 DESCRIPTION OF PROPERTY: 2024 Chipseal Project 111 HASSAN STREET S.E. HUTCHINSON, MN 55350 1. FAHRNER Asphalt Sealers, L.L.C. (CONTRACTOR) and PURCHASER agree that, CONTRACTOR shall furnish the labor and materials to complete certain construction in accordance with the following specifications: Area included with this proposal: - School Rd NW (from hwy 7 to county read 12) - Century Ave (from hwy 15 to Jefferson St SE) - 5th Ave SW (from Lynn Rd SW to Main St S) *Areas shown on the attached maps provided by Donovan Schuette Chipseal: Thoroughly clean the existing surface with a self propelled broom. Apply 170 degree emulsified asphalt by full -width spray distributor. Apply cover aggregate (1/41, Quartz) and spread uniformly over surface with full -width self propelled chip spreader. Roll with pneumatic -tired roller. Fogseal: Sweep with a mechanical pick up sweeper. Apply CSSlH-D1L by full -width spray distributor. *Traffic Control and flaggers as needed is included with this proposal *Work may not be completed until the 2025 chipseal season. This proposal maybe withdrawn if not accepted and received by CONTRACTOR within 30 days of the date above and/ or at any time before performance of the work hereunder upon CONTRACTOR'S determination that the PURCHASER Is not creditworthy. 2, if proposal is accepted please sign, retain one copy and forward a copy to our office. 3. The undersigned ("PURCHASER") agrees to pay CONTRACTOR the total price of ..�_{ ; � W. +� — and/or the unit prices specified above for the labor and materials specified above which payment shall be due upon completion of each stage of work. PURCHASER acknowledges that the specifications, conditions and price quotes specified above are satisfactory and hereby accepted. Acceptance of this Proposal includes acceptance of all the terms and conditions on back. CONTRACTOR: Fahrner Asphalt Sealers, LLC:763-482-9640 lucas.chapman a@fahrnerasphalt.com Lucas Cha; man (PRINT OR TYPE NAME) By: (CONTRACTOR REPRESENTATIVE) PURCHASER: I have read and understand the terms and conditions on both sides of this contract. By: (PRINT OR TYPE NAME) (PURCHASER AUTHORIZED REPRESENTATIVE) Date: August 09, 2024 Date of acceptance: 46 4 -.'fir^'�'�r _ ••�,'a"-��. -t it ru w ON. wswit 1 A 11. 12 11; M. . . 1 C-:. IT" R,�'�'� ' ` - ; . �� l _ ;.. ,,. �_ r sue' P AC cool Road northwest from hwy 7 to county road 12/north high drive 24,357 yards SW V ar %f#eY A Elks P., SW ntury ave between hwy 15 south and Jefferson st se 11,822 yards ILMRA �___ ��Mw 430 44� 3W 339 239 212 7 k 74! 146 LN -V Wp "pow . in V1- J6 : 4340 730 316 ave sw between lynn road sw and main st south 5635 yards HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Puchase Order - Asphalt Overlay of Water Department Back Parking Lot Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Donovan Schuette Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The asphalt parking lot at the water plant is in need of an overlay. We have a time and materials bid from Bertram asphalt not to exceed $60,000 that will provide for a 1.5" overlay of almost the entire back lot. Purchase Order 87 BOARD ACTION REQUESTED: Approval of Puchase Order Fiscal Impact: $ 60,000.00 Funding Source: Water Department FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 60,000.00 Total City Cost: $ 60,000.00 Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A ge-C-4a Street Patching & Repair Work ons Conditi Price Quotes Due - 04/14/2024 1. Contractor is responsible for traffic control/warning devices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured pavement. 2. Bituminous edges to be saw cut or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material may be kept or be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat, minimum of 3 inches or as specified, of 41/31 Bituminous Mix (PG 58-28) or equivalent. S. Compact aggregate base material prior to patching. Compact pavement following patch to assure a smooth transition between existing and new pavement. 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable after the City issues a work order. Contractor must notify City if repairs will be delayed more than two weeks. 8. Work to be Invoiced to the City using time and materials. Invoices are to provide detail for each work request. 9. Mill at least 36" away from curb edge and at least 18" away from utility structure prior to maintenance overlay. City may do this or specify contractor to mill. Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials, invoices are to provide detail for each individual location. 2. Aggregate and bituminous materials pricing does not include trucking. Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to Include operator and fuel. 4. Prices below are for the year. Prices maybe subject to significant changes in fuel or bituminous prices. Modified pricing agreed upon before work. 5. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%. The subcontractor's name, contact information & copy of invoiceto he included. DESCRIPTION UNIT PRICE DESCRIPTION UNIT PRICE Hourl+g,Labor Rates" FOREMAN $/hr $ mA_ $ LABOR - GENERAL $/hr $ $ LABOR -TRAFFIC CONTROL $/hr $ $ Material pricing* SELECT GRANULAR BORROW Ton $ 14.00 RECYCLED BITUMINOUS/CONCRETE Ton $ 19.00 CLASS 5100% CRUSHED LIMESTONE Ton $ 30.00 LV3/LV4 BITUMINOUS MIX (PG 58-28) Ton $ 76.25 $ TACK OIL Gal $ m5 $ TOPSOIL, SCREENED CY $ 35.00 Hourly Eaufoment Rates BACKHOE, CAT 320 OR EQUIVALENT SF $ BACKHOE, CAT 336 OR EQUIVALENT SF $ BACKHOE, TRACTOR -LOADER (small) SF $ DOZER, CAT D4 OR EQUIVALENT $/hr $_ DOZER, CAT DS OR EQUIVALENT $/hr $_ DOZER, CAT D6 OR EQUIVALENT $/hr Mau fly Equipment Rates MOTOR GRADER $/hr $ 175.00 LOADER, CAT 966 OR EQUIVALENT $/hr $ LOADER, CAT 970 OR EQUIVALENT $/hr $ LOADER, CAT 980 OR EQUIVALENT $/hr $ SKIDSTEER LOADER -MILL, HAMMER, BROOM* $/hr $ 195.00 $ SKIDSTEER LOADER* $/hr $ 165.00 $ DUMP TRUCK, SINGLE -AXLE $/hr DUMP TRUCK, TANDEM OR TRI AXLE* $/hr $ 142.00 $ DUMP TRUCK, QUAD OR QUINT AXLE* $/hr $ 163.00 $ PAVER, LEEBOY 8515 OR EQUIVALENT* $/hr $ 331.00 S PAVER, CAT AP600D OR EQUIVALENT $/hr $ PAVER, CAT AP1000D OR EQUIVALENT $/hr $__ ROLLER, STEEL WHEEL* $/hr $ 147.00 S STREET SWEEPER, PICK UP TYPE $/hr $ TRAILER, LOW BOY- $/hr $ 205,00 $ $1reet Patching ,&, Repair Work Conditions Price Quotes Due - 04/14/2024 1. Contractor is responsible for traffic controllwaming devices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured 2. Bituminous edges to be saw cut or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material may be kept or be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat, minimum of 3 inches or as specified, of 41/31 Bituminous Mix (PG 58-28) or equivalent. 5. Compact aggregate base material prior to patching. Compact pavement following patch to assure a smooth transition between existing and new 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable after the City issues a work order, Contractor must notify City if repairs will be delayed more than two 8. Work to be invoiced to the City using time and materials. Invoices are to provide detail for each work request. 9. Mill at least 36' away from curb edge and at least 18" away from utility structure prior to maintenance overlay. City may do this or specify contractor to Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials. Invoices are to provide detail for each individual 2. Aggregate and bituminous materials pricing does not include trucking. Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to include operator and fuel. 4. Prices below are for the year. Prices may be subject to significant changes in fuel or bituminous prices. Modified pricing agreed upon before work. 5. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%, The subcontractor's name, contact information & copy of invoiceto be DESCRIPTION UNIT PRICE Ttow- UNIT 'PRICE tJ9Wrly Labor. Rates' Hourly Equipment Rates FOREMAN S/hr $ .10$1)0 LOADER, CAT 966 OR EQUIVALENT $1hr 195,00 LABOR - GENERAL $R3r $ lip Zn i++ LOADER, CAT 970 OR EQUIVALENT $1hr 220.00 LABOR - TRAFFIC CONTROL S/hr $ 1 3`(! t](F i LOADER, CAT 980 OR EQUIVALENT $/hr 230.00 Material Pricing SKiDSTEER LOADER -MILL, HAMMER, BROOM' $1hr 1$ 95.00 SKIDSTEER LOADER` $1hr 180.00 SELECT GRANULAR BORROW Ton $ 5.50 RECYCLED BITUMINOUSICONCRETE Ton $ 12.50 DUMP TRUCK, SINGLE -AXLE $/hr 1$ 30.00 CLASS 5 100% CRUSHED LIMESTONE Ton $ 14.50 DUMP TRUCK, TANDEM OR TRI AXLE' $/hr 140.00 LV3/LV4 BITUMINOUS MIX (PG 58-28) Ton $ 70.00 DUMP TRUCK, QUAD OR QUINT AXLE- $/hr 145,00 TACK OIL Gal $ 5.00 TOPSOIL, SCREENED CY $ 14.50 PAVER, LE£BOY 8515 OR EQUIVALENT* $/hr 370.00 PAVER, CAT AP600D OR EQUIVALENT $/hr 450.00 Hourly Eaulpment Rates PAVER, CAT AP1000D OR EQUIVALENT $/hr 500.00 BACKHOE, CAT 320 OR EQUIVALENT SF 195.00 ROLLER, STEEL WHEEL' $!hr S 195.00 BACKHOE, CAT 336 OR EQUIVALENT SF 230.00 RUBBER TIRE ROLLER Slhr 185.00 BACKHOE, TRACTOR -LOADER (small) SF $ 190.00 STREET SWEEPER, PICK UP TYPE $1hr 240.0 DOZER, CAT D4 OR EQUIVALENT $/hr $ 190.00 SELF PROPELLED BROOM $/hr 180.00 DOZER, CAT D5 OR EQUIVALENT $1hr 190.00 TRAILER, LOW BOY" $1hr 220.00 DOZER, CAT D8 OR EQUIVALENT $/hr 225.00 DISTRIBUTOR $/hr 255.00 WATER TRUCK $/hr 145.00 MOTOR GRADER $1hr 200,00 Brian proege Wm. Mueller & Sons, inc. 831 Park Ave, - P.O. Box 247 Hamburg, MN 55339 Wm. Mueller & Sons, Inc Contacts Cory Hoetnamann Brian Droege 612-581-1712 612.554-5738 coryh(gwmmuelier.com bdand@wmmueller.com Tr HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Purchase Order - Reconstruction of Wastewater Plant Entrance Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Donovan Schuette Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The entrance to the wastewater plant has deteriorated to the point where an asphalt overlay will be insufficient as a maintenance option. We have a time and materials quote from Bertram Asphalt to remove and replace the existing asphalt entrance and replace it with a 5" asphalt mat that will be suitable for the heavy truck traffic that travels in and out of that facility. The extent of the repair is included with this form. Purchase Order 88 BOARD ACTION REQUESTED: Approval of Purchase Order Fiscal Impact: $ 60,000.00 Funding Source: Wastewater FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 60,000.00 Total City Cost: $ 60,000.00 Funding Source: Wastewater Remaining Cost: $ 0.00 Funding Source: N/A ge-C-4a Street Patching & Repair Work ons Conditi Price Quotes Due - 04/14/2024 1. Contractor is responsible for traffic control/warning devices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured pavement. 2. Bituminous edges to be saw cut or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material may be kept or be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat, minimum of 3 inches or as specified, of 41/31 Bituminous Mix (PG 58-28) or equivalent. S. Compact aggregate base material prior to patching. Compact pavement following patch to assure a smooth transition between existing and new pavement. 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable after the City issues a work order. Contractor must notify City if repairs will be delayed more than two weeks. 8. Work to be Invoiced to the City using time and materials. Invoices are to provide detail for each work request. 9. Mill at least 36" away from curb edge and at least 18" away from utility structure prior to maintenance overlay. City may do this or specify contractor to mill. Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials, invoices are to provide detail for each individual location. 2. Aggregate and bituminous materials pricing does not include trucking. Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to Include operator and fuel. 4. Prices below are for the year. Prices maybe subject to significant changes in fuel or bituminous prices. Modified pricing agreed upon before work. 5. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%. The subcontractor's name, contact information & copy of invoiceto he included. DESCRIPTION UNIT PRICE DESCRIPTION UNIT PRICE Hourl+g,Labor Rates" FOREMAN $/hr $ mA_ $ LABOR - GENERAL $/hr $ $ LABOR -TRAFFIC CONTROL $/hr $ $ Material pricing* SELECT GRANULAR BORROW Ton $ 14.00 RECYCLED BITUMINOUS/CONCRETE Ton $ 19.00 CLASS 5100% CRUSHED LIMESTONE Ton $ 30.00 LV3/LV4 BITUMINOUS MIX (PG 58-28) Ton $ 76.25 $ TACK OIL Gal $ m5 $ TOPSOIL, SCREENED CY $ 35.00 Hourly Eaufoment Rates BACKHOE, CAT 320 OR EQUIVALENT SF $ BACKHOE, CAT 336 OR EQUIVALENT SF $ BACKHOE, TRACTOR -LOADER (small) SF $ DOZER, CAT D4 OR EQUIVALENT $/hr $_ DOZER, CAT DS OR EQUIVALENT $/hr $_ DOZER, CAT D6 OR EQUIVALENT $/hr Mau fly Equipment Rates MOTOR GRADER $/hr $ 175.00 LOADER, CAT 966 OR EQUIVALENT $/hr $ LOADER, CAT 970 OR EQUIVALENT $/hr $ LOADER, CAT 980 OR EQUIVALENT $/hr $ SKIDSTEER LOADER -MILL, HAMMER, BROOM* $/hr $ 195.00 $ SKIDSTEER LOADER* $/hr $ 165.00 $ DUMP TRUCK, SINGLE -AXLE $/hr DUMP TRUCK, TANDEM OR TRI AXLE* $/hr $ 142.00 $ DUMP TRUCK, QUAD OR QUINT AXLE* $/hr $ 163.00 $ PAVER, LEEBOY 8515 OR EQUIVALENT* $/hr $ 331.00 S PAVER, CAT AP600D OR EQUIVALENT $/hr $ PAVER, CAT AP1000D OR EQUIVALENT $/hr $__ ROLLER, STEEL WHEEL* $/hr $ 147.00 S STREET SWEEPER, PICK UP TYPE $/hr $ TRAILER, LOW BOY- $/hr $ 205,00 $ $1reet Patching ,&, Repair Work Conditions Price Quotes Due - 04/14/2024 1. Contractor is responsible for traffic controllwaming devices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured 2. Bituminous edges to be saw cut or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material may be kept or be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat, minimum of 3 inches or as specified, of 41/31 Bituminous Mix (PG 58-28) or equivalent. 5. Compact aggregate base material prior to patching. Compact pavement following patch to assure a smooth transition between existing and new 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable after the City issues a work order, Contractor must notify City if repairs will be delayed more than two 8. Work to be invoiced to the City using time and materials. Invoices are to provide detail for each work request. 9. Mill at least 36' away from curb edge and at least 18" away from utility structure prior to maintenance overlay. City may do this or specify contractor to Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials. Invoices are to provide detail for each individual 2. Aggregate and bituminous materials pricing does not include trucking. Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to include operator and fuel. 4. Prices below are for the year. Prices may be subject to significant changes in fuel or bituminous prices. Modified pricing agreed upon before work. 5. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%, The subcontractor's name, contact information & copy of invoiceto be DESCRIPTION UNIT PRICE Ttow- UNIT 'PRICE tJ9Wrly Labor. Rates' Hourly Equipment Rates FOREMAN S/hr $ .10$1)0 LOADER, CAT 966 OR EQUIVALENT $1hr 195,00 LABOR - GENERAL $R3r $ lip Zn i++ LOADER, CAT 970 OR EQUIVALENT $1hr 220.00 LABOR - TRAFFIC CONTROL S/hr $ 1 3`(! t](F i LOADER, CAT 980 OR EQUIVALENT $/hr 230.00 Material Pricing SKiDSTEER LOADER -MILL, HAMMER, BROOM' $1hr 1$ 95.00 SKIDSTEER LOADER` $1hr 180.00 SELECT GRANULAR BORROW Ton $ 5.50 RECYCLED BITUMINOUSICONCRETE Ton $ 12.50 DUMP TRUCK, SINGLE -AXLE $/hr 1$ 30.00 CLASS 5 100% CRUSHED LIMESTONE Ton $ 14.50 DUMP TRUCK, TANDEM OR TRI AXLE' $/hr 140.00 LV3/LV4 BITUMINOUS MIX (PG 58-28) Ton $ 70.00 DUMP TRUCK, QUAD OR QUINT AXLE- $/hr 145,00 TACK OIL Gal $ 5.00 TOPSOIL, SCREENED CY $ 14.50 PAVER, LE£BOY 8515 OR EQUIVALENT* $/hr 370.00 PAVER, CAT AP600D OR EQUIVALENT $/hr 450.00 Hourly Eaulpment Rates PAVER, CAT AP1000D OR EQUIVALENT $/hr 500.00 BACKHOE, CAT 320 OR EQUIVALENT SF 195.00 ROLLER, STEEL WHEEL' $!hr S 195.00 BACKHOE, CAT 336 OR EQUIVALENT SF 230.00 RUBBER TIRE ROLLER Slhr 185.00 BACKHOE, TRACTOR -LOADER (small) SF $ 190.00 STREET SWEEPER, PICK UP TYPE $1hr 240.0 DOZER, CAT D4 OR EQUIVALENT $/hr $ 190.00 SELF PROPELLED BROOM $/hr 180.00 DOZER, CAT D5 OR EQUIVALENT $1hr 190.00 TRAILER, LOW BOY" $1hr 220.00 DOZER, CAT D8 OR EQUIVALENT $/hr 225.00 DISTRIBUTOR $/hr 255.00 WATER TRUCK $/hr 145.00 MOTOR GRADER $1hr 200,00 Brian proege Wm. Mueller & Sons, inc. 831 Park Ave, - P.O. Box 247 Hamburg, MN 55339 Wm. Mueller & Sons, Inc Contacts Cory Hoetnamann Brian Droege 612-581-1712 612.554-5738 coryh(gwmmuelier.com bdand@wmmueller.com 149.7 ft 1,168 sq ft >+"Y� G 9oft HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Purchase Order - Birdie Circle Pond Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: A project has been designed to address a longstanding stormwater issue in the Fairway Estates development (Birdie Circle). Quotes have been received with a low bid of $94,359 from Hjerpe Contracting to reconstruct a stormwater pond. Construction is anticipated in Fall 2024. Purchase Order No. 100 BOARD ACTION REQUESTED: Approval of Purchase Order Fiscal Impact: $ 94,359.00 Funding Source: Stormwater FTE Impact: Budget Change: New Bu Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 94,359.00 Total City Cost: $ 94,359.00 Funding Source: stormwater Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209 BID TABULATION - CITY OF HUTCHINSON Birdie Circle Pond Proposals Due: 08/20/2024 @ 03:00 PM ENGINEER'S ESTIMATE $92,047.00 COMPLETION DATE: 10/31/2024 z i w ITEM DESCRIPTION - - � Q Engineer's Estim ate Hjerpe Contracting, Inc. PO Box 517 Hutchinson, MN 55350 320-234-8305 Juul Contracting Co. 1 PO Box 189 Hutchinson, MN 55350 320-587-2989 juulcont@hutch[el.net R & R Excavating, Inc. Brent Reiner 1149 Hwy 22 South Hutchinson, MN 55350 phone 320-587-5918 michelle@rrexcavating.net BID PRICE I BID TOTAL BID PRICE I BID TOTAL BID PRICE I BID TOTAL BID PRICE I BID TOTAL BASE BID $92,047.00 $94,359.00 $95,215.00 $114,212.84 DBE GOAL 0.00% 0.00% 0.00% 0.00% BASE BID UNIT QUANTITY BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL 1 MOBILIZATION LUMP SUM 1.00 $2,500.00 $2,500.00 $6,500.00 $6,500.00 $3,000.00 $3,000.00 $8,003.62 $8,003.62 2 CLEAR AND GRUB TREE EACH 1.00 $500.00 $500.00 $250.00 $250.00 $1,000.00 $1,000.00 $365.98 $365.98 3 SITE GRADING (INCLUDES ALL COMMON EX, COMMON BORROW AND TOPSOIL) LUMP SUM 1.00 $50,000.00 $50,000.00 $44,000.00 $44,000.00 $48,810.00 $48,810.00 $65,553.01 $65,553.01 4 RANDOM RIP RAP CLASS 2 (QUARRIED ROCK, NO LIMESTONE, NO FIELD STONE) TON 15.00 $120.00 $1,800.00 $95.00 $1,425.00 $160.00 $2,400.00 $161.85 $2,427.75 5 1 ISILT FENCE LIN FT 818.00 $2.00 $1,636.00 $2.00 $1,636.001 $3.00 $2,454.00 $2.00 $1,636.00 6 EROSION CONTROL BLANKET, CATEGORY 3 (NATURAL NETTING) SQ YD 1089.00 $2.00 $2,178.00 $2.00 $2,178.00 $3.00 $3,267.00 $2.00 $2,178.00 7 TURF RESTORATION (DISK ANCHORED) SQ YD 1089.00 $3.00 $3,267.00 $1.00 $1,089.00 $1.75 $1,905.75 $1.00 $1,089.00 8 TURF RESTORATION (HYDROSEED) SQ YD 728.00 $2.00 $1,456.00 $2.00 $1,456.00 $3.00 $2,184.00 $2.00 $1,456.00 9 REMOVE PIPE SEWER (STORM) LIN FT 80.00 $10.00 $800.00 $10.00 $800.00 $15.00 $1,200.00 $10.52 $841.60 10 REMOVE MANHOLE EACH 1.00 $2,000.00 $2,000.00 $500.00 $500.00 $500.00 $500.00 $505.39 $505.39 11 15" RC PIPE APRON WITH GRATE EACH 1.00 $2,000.00 $2,000.00 $2,400.00 $2,400.00 $1,700.00 $1,700.00 $2,906.28 $2,906.28 12 15" RC PIPE SEWER LIN FT 1 145.00 $100.001 $14,500.00 $100.001 $14,500.00 $97.651 $14,159.25 $93.51 $13,558.95 13 1 ICONNECT TO EXISTING STORM SEWER EACH 2.00 $1,500.00 $3,000.00 $1,850.00 $3,700.00 $850.00 $1,700.00 $1,543.74 $3,087.48 14 CASTING ASSEMBLY, NEENAH R-4342 EACH 1.00 $800.00 $800.00 $425.00 $425.00 $895.00 $895.00 $857.03 $857.03 15 CONSTRUCT DRAINAGE STRUCTURE DESIGN 72-4020 LIN FT 5.30 $1,000.00 $5,300.00 $2,500.00 $13,250.00 $1,800.00 $9,540.00 $1,791.84 $9,496.75 16 STORM DRAIN INLET PROTECTION EACH 2.00 $155.00 $310.00 $125.00 $250.00 $250.00 $500.00 $125.00 $250.00 TOTAL - Birdie Pond $92,047.00 $94,359.00 $95,215.00 $114,212.84 Pagel of 1 QUOTEFORM STATEMENT OF ESTIMATED QUANTITIES LINE NO. ITEM DESCRIPTION UNIT BIRDIE CIRCLE POND UNIT PRICE EST QTY AMOUNT 1 MOBILIZATION LUMP SUM $6,500.00 1 $6,500.00 2 CLEAR AND GRUB TREE EACH $250.00 1 $250.00 3 SITE GRADING (INCLUDES ALL COMMON EX, COMMON BORROW AND TOPSOIL LUMP SUM $44,000.00 1 $44,000.00 4 RANDON RIP RAP CLASS 2 (QUARRIED ROCK, NO LIMESTONE, NO FIELD STONE TON $95.00 15 $1,425.00 5 SILT FENCE TYPE LIN FT $2.00 818 $1,636.00 6 EROSION CONTROL BLANKET, CATEGORY 3 (NATURAL NETTING) SQ YD $2.00 1089 $2,178.00 7 TURF RESTORATION SQ YD $1.00 1089 $1,089.00 8 TURF RESTORATION (HYDROSEED) SQ YD $2.00 728 $1,456.00 9 REMOVE PIPE SEWER (STORM) LIN FT $10.00 80 $800.00 10 REMOVE MANHOLE EACH $500.00 1 $500.00 11 15" RC PIPE APRON WITH GRATE EACH $2,400.00 1 $2,400.00 12 15" RC PIPE SEWER LIN FT $100.00 145 $14,500.00 13 CONNECT TO EXISTING STORM SEWER EACH $1,850.00 2 $3,700.00 14 CASTING ASSEMBLY, NEENAH R-4342 EACH $425.00 1 $425.00 15 CONSTRUCT DRAINAGE STRUCTURE DESIGN 72-4020 LIN FT $2,500.00 5.3 $13,250.00 16 STORM DRAIN INLET PROTECTION EACH $125.00 2 $250.00 TOTAL ESTIMATED COST $94,359.05 HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Authorization to purchase a Tandem Truck on Auction Agenda Item: Department: Public Works/Engineering LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike tifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Staff is seeking authorization to spend up to $125,000 for a used Tandem Truck at auction. Recent attempts at $70,000 have not yielded results and the purchase of a used truck from the County continues to be impeded by supply chain issues affecting the County's ability to replace trucks on schedule. With higher than expected proceeds obtained from the recent sale of the Jetter truck, staff are recommending to use $55,000 from it, in addition to the original $70,000 from Fleet, for a total amount not to exceed $125,000. Recent auction comparables have had trucks in the $110,000-$125,000 range. BOARD ACTION REQUESTED: Council authorization to purchase a Tandem Truck on Auction Fiscal Impact: $ 125,000.00 Funding Source: Fleet ($70K) and WWTF ($55K) FTE Impact: 0.00 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 HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. MNDOT Aeronautics Agreement for FAA ARPA Grant Reimbursement Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In November 2021, the Federal Aviation Administration (FAA) informed us that Hutchinson Municipal Airport was eligible for reimbursement of up to $32,000 of funds under the American Rescue Plan Act (ARPA). On 7/23/2024 a mass email was sent from a MnDOT rep that ARPA state agreements will be expiring on 9/30/24. After further review of both the FAA and State agreements and the guidance from MnDOT legal, the ARPA State agreement that had previously been signed, had the wrong expiration date. The expiration date for the ARPA should have been 2/3/2026. As a result, an amendment to the state agreement has to be done. Funds will be distributed through the Airport Rescue Grant Program (ARGP). Accepting the ARGP grant does not affect the City's ability to receive Airport Improvement Program grants. Funds may be used for operations, personnel, cleaning, sanitizing, janitorial, combating the spread of pathogens at the airport, some development and debt service payments. The Minnesota Department of Transportation, Office of Aeronautics, has provided the attached resolution and the attached agreement so they can assist the City with applications for reimbursement under the grant. Request is to adopt the attached resolution and enter into Amended MNDOT Agreement 1050361; State Project No. A4304-C3. Signatories for this agreement should be Mayor Forcier and City Administrator Jaunich. BOARD ACTION REQUESTED: Approval of Resolution No. 15761 and MNDOT Aeronautics Agreement 1050361 Fiscal Impact: Funding Source: Federal Aviation Administration FTE Impact: Budget Change: New Bu Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Rev. 5/2021 RESOLUTION NO. 15761 AUTHORIZATION TO EXECUTE MINNESOTA DEPARTMENT OF TRANSPORTATION AGENCY AGREEMENT FOR FEDERAL AIRPORT EXPENSES REIMBURSEMENT It is resolved by the City of Hutchinson as follows: 1. That the state of Minnesota Agreement No. 1050361, "Grant Agreement for Federal Airport Expenses Reimbursement," for State Project No. A4304-C3 at the Hutchinson Municipal -Butler Field is accepted. 2. That the Mayor and City Administrator (Title) (Title) authorized to execute this Agreement and any amendments on behalf of the City of Hutchinson. CERTIFICATION STATE OF MINNESOTA COUNTY OF McLeod are I certify that the above Resolution is a true and correct copy of the Resolution adopted by the of Hutchinson at an authorized meeting held on the (Name of the Recipient) 28th day of August 12024 as shown by the minutes of the meeting in my possession. Signature: (Clerk or Equivalent) CORPORATE SEAL /OR/ NOTARY PUBLIC My Commission Expires: Rev. 4/13 MnDOT Agreement No. 1050361 AMENDMENT # A01 TO MnDOT GRANT AGREEMENT # 1050361 This Amendment is by and between the state of Minnesota, through its Commissioner of Transportation ("State"), and the City of Hutchinson ("Grantee") Recitals The State has an agreement with the Grantee identified as MnDOT Agreement Number 1050361 ("Original Agreement"), to provide for ARPA Grant. 2. The Original Agreement is being amended to additional time to complete credit applications and to add additional lan2ua2e for federal amendment and the termination clause not included in the original agreement. The State and the Recipient are willing to amend the Original Agreement as stated below. Agreement Amendment In this Amendment deleted agreement terms will be stpdek otit and the added agreement terms will be underlined. REVISON 1. Section 1.2. Expiration Date, is amended as follows: 1.2. Expiration Date: This agreement will expire on September- 30 2024 February 3, 2026. REVISION 2. Section 7.2. Amendments, is amended as follows: 7.2 Amendment- Any amendments to this agreement must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original agreement, or their successors in office. Notwithstanding the fore2oin2, when FAA issues a Letter Amendment on a federal grant agreement that results in an increase in federal funds bevond the total amount in this grant agreement (i.e., federal amendment), MnDOT's receipt of the Letter Amendment from FAA has the effect of amending the total amount in this grant agreement. REVISION 3. Section 13. Termination for Cause, is amended as follows: 13. Termination for Cause. MnDOT- The State or Commissioner of Administration may terminate this agreement if Local Government fails to observe or perform any of the terms, conditions, or covenants required to be observed or performed by it pursuant to this agreement and such failure continues for a period of 30 calendar days after MnDOT has given written notice to Local Government Page 1 of 3 of such default or, in the event that such default shall be incapable of cure with reasonable diligence during said 30 day period, shall have failed to commence to cure said default within 30 days of the date of said notice and to diligently pursue the same to completion. The terms of the Original Agreement are expressly reaffirmed and are incorporated by reference. Except as amended herein, the terms and conditions of the Original Agreement and all previous amendments remain in full force and effect. THE BALANCE OF THIS PA GE HAS BEEN INTENTIONALL Y LEFT BLANK. Page 2 of 3 State Encumbrance Verification Individual certifies that funds have been encumbered as required by Minn. Stat. §§ 16A.15 and 16C.05. Lo Date SWIFT Purchase Order No: Grantee Grantee certifies that the appropriate person(s) have executed the Agreement on behalf of the Grantee as required by applicable resolutions, charter provisions or ordinances. By: Title: Mayor Date: By: Title: City Administrator Date: Commissioner, Minnesota Department of Transportation By: Director, Office of Aeronautics Date Page 3 of 3 c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Top 10 Options of Hutchinson Subdivision Agreement Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Please see subdivision agreement attached for the development of the Top 10 Options of Hutchinson Development. Please let me know if there are any questions. BOARD ACTION REQUESTED: Approval of Development Agreement 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 SUBDIVISION AGREEMENT Top 10 Options of Hutchinson CITY OF HUTCHINSON, MINNESOTA THIS AGREEMENT, made and entered into the day and year set forth hereinafter by and between Lotus Holdings, LLC, hereinafter called the "Developer"; and the City of Hutchinson, a Municipal Corporation in the County of McLeod, State of Minnesota, hereinafter called the "City"; WITNESSETH: WHEREAS, the Developer is the owner and developer of property situated in the City of Hutchinson, County of McLeod, State of Minnesota, which has been identified with a legal description of Lots 1 through 13 Block 1, Top 10 Options of Hutchinson, according to the recorded plat thereof, McLeod County, Minnesota WHEREAS, City Ordinance No. 464 and 466 requires the Developer to make certain improvements in the development; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. SITE IMPROVEMENTS AND UTILITY INSTALLATIONS It is agreed and understood that the Developer shall be responsible for all work associated with site improvements and utility installations within the above described property. All work shall conform to the City approved site, utility and building plans. 2. The Developer shall complete all work as noted within the below section II (paragraph no. 1) and provide a written verification and as -built drawings from a professional engineer and/or surveyor stating that all utility work satisfies the intentions of the plans and this agreement. This work must be approved by City staff. Any costs associated with meeting these requirements shall be the responsibility of the Developer. 3. The Developer shall provide all turf establishment and erosion control measures necessary to protect the utility installations and street disturbance areas on the entire site and within adjacent City street right-of- ways. The Developer shall also provide all erosion control during site grading and improvement work necessary to meet local, state and federal requirements. Any subdivision disturbing one acre or more of land needs to obtain an NPDES/SDS (National Pollutant Discharge Elimination System/State Disposal Top 10 Options of Hutchinson/Page 1 — 8/27/2024 System) permit through the MPCA (Minnesota Pollution Control Agency). Information regarding the permitting process can be accessed at www.pca.state.mn.us/water/stortnwater/stormwater-c.html or by calling the City's Environmental Specialist at (320) 234-5682. A copy of the submitted permit and associated Stormwater Pollution Prevention Plan (SWPPP) must be provided to the Environmental Specialist prior to construction commencing within the site. All disturbed areas shall be seeded, mulched, and disc anchored with MNDOT seed mix 250GR or other City -approved method within 48 hours after final grading is completed or within one week after rough grading is completed. Any areas disturbed adjacent to a stormwater pond, drainage ditch or existing wetland shall be seeded with MNDOT seed mixture 310 or other City -approved method and covered with erosion control blanket. Any corrective measures to address erosion control and turf establishment are at the expense of the Developer. In the case of the SWPPP not being administered appropriately, the City shall notify the Developer in writing of work needing completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer. 4. A grading and erosion control permit will be required prior to construction starting on the project. The 5. It is understood and agreed that it shall be the Developer's responsibility to provide survey control points for all infrastructure and site construction. 6. It is understood and agreed that the Developer shall be responsible for maintaining the condition of the infrastructure, mowing, weed control and other site maintenance issues during site and building construction. The Developer shall be required to maintain and clean the roadways and storm sewers/ponds on a regular basis, and shall repair or replace any street, storm sewer/ponds, sanitary sewer or watermain infrastructure damaged by operations related to site and building construction. The City shall notify the Developer in writing of necessary work requiring completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer for the associated costs. IL FUNDING AND DEDICATIONS The Developer hereby agrees to fund and construct all necessary utility installations/relocations and appurtenances to serve the entire development. All work shall be completed by forces employed by the Developer, and the work shall meet all applicable local, state and federal regulations and construction standards. The City shall approve all construction documents and shall provide minimal construction overview with final approval of all infrastructure connections to existing public facilities. All roadway and utility improvements shall be considered public infrastructure with all associated maintenance activities including but not limited to pavement/curbing repairs, pavement surface treatments, snow removals, sweeping, water/sewer services, storm water system/drainage maintenance, pond/wetland maintenance, etc. being the responsibility of the Developer. III.OTHER FEES, CHARGES AND EXPENDITURES It is understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements as outlined in a handbook dated December 31, 2023. Electric service is provided at no charge other than requirements as outlined in the policy handbook. Natural gas service is provided and installed by the Hutchinson Utilities Commission. Commercial and industrial service lines are installed and billed on a time and material basis. All costs shall be billed to the Developer. It is also understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements, Top 10 Options of Hutchinson/Page 2 — 8/27/2024 for natural gas service, as outlined in the handbook dated December 31, 2023. 2. It is understood and agreed that the City shall collect a lump sum fee for services provided to the Subdivider. It is agreed that the Subdivider will have a consultant, Otto Associates, complete the following at his own expense: project design (including plans and specifications), construction staking, general project administration, construction observation, and detailed as -built drawings in AutoCAD. The City shall complete the following at the noted percent of construction cost. It is agreed and understood that these costs will be paid prior to construction, and that rates are in consideration of work to be furnished and completed by the Subdivider's consultant. HRA Affordable Housing Fund 1.0% Design Review/Preliminary Layout 3.0% Administrative/Prelim. Development 1.0% Comprehensive Planning 2.0% TOTAL CITY EXPENSE RATE 7.0%* *The expense rate shall be applied against the total construction cost, excluding mass grading. The amount is based upon the actual bid received. Thus, the lump sum fee shall be 7% of actual bid amount. 3. It is understood and agreed that the builder of each lot shall pay the Trunk Sanitary Sewer and Water Main Availability Charges. This fee will compensate the City for improvements required to provide trunk sanitary sewer and water main access to this development. Per City staff's calculations utilizing current MCES criteria/guidance, the total charge for each respective single-family unit will be $4,050. This payment will be made with the building permit for each lot. 4. It is understood and agreed that a Parks and Playground Contribution shall be made in the form of the established lot rate (currently $215/lot) at the time of the building permit acquisition. 5. If applicable, any assessments need to be paid prior to the issuance of any building permits. 6. There is a portion of work within the project that is related to the City upgrading storm sewer in the area. The developer's Engineer has included the design for this work in the construction plans the developer has completed. It is understood that the developer did not include the City storm sewer work in the bids received from contractors for the site and utility work for the project. The City agrees to work directly with the selected contractor to get a quote for the City storm sewer work and will reimburse the contractor directly for this work. In the event the contractor is unwilling or unable to work with the City directly to contract for this work, the City would reimburse the developer for the portion of the City work completed. In this instance, the City and Developer shall review the quote for the City work to be completed and the City will provide written agreement on the price and scope of work to be completed. IV. GENERAL 1. It is understood and agreed that no building certificates of occupancy will be issued prior to the public roadway/utility connections (including the City and City right-of-way disturbance areas being completely addressed and/or accepted by the City. 2. Any damage to surrounding private property or City infrastructure that occurs due to development construction shall be the responsibility of the Developer to correct. Top 10 Options of Hutchinson/Page 3 — 8/27/2024 3. It is understood and agreed that all local, state and federal permits required to be obtained for the development shall be the responsibility of the Developer. 4. This agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. 5. It is understood and agreed that the Developer shall record this agreement at the McLeod County Recorder's Office or McLeod County Registrar of Titles Office, and that no building permits will be issued until said Agreement is recorded and a certified copy of this agreement is provided to the City. The Developer shall pay all costs associated with said recording. Top 10 Options of Hutchinson/Page 4 — 8/27/2024 • MARK HEDGE (Developer): Signature STATE OF MINNESOTA COUNTY OF SIGNATURES Printed Name & Title The foregoing instrument was acknowledged before me this day of 12024, by (name) (title) Of Lotus Holdings, LLC, a Minnesota Corporation. Notary Public, County, Minnesota My Commission Expires APPROVED BY THE HUTCHINSON CITY COUNCIL THE 25TH DAY OF JUNE, 2024. • CITY OF HUTCHINSON (City): GARY FORCIER, MAYOR STATE OF MINNESOTA COUNTY OF MCLEOD THIS INSTRUMENT WAS DRAFTED BY: Dan Jochum, AICP Planning Director Hutchinson City Center I I I Hassan Street SE Hutchinson, MN 55350 MATT JAUNICH, CITY ADMINISTRATOR The foregoing instrument was acknowledged before me this day of 2024, by Gary Forcier, Mayor and Matt Jaunich, City Administrator of the City of Hutchinson. Notary Public, My Commission Expires Top 10 Options of Hutchinson/Page 5 — 8/27/2024 County, Minnesota SUBDIVISION AGREEMENT Top 10 Options of Hutchinson CITY OF HUTCHINSON, MINNESOTA THIS AGREEMENT, made and entered into the day and year set forth hereinafter by and between Lotus Holdings, LLC, hereinafter called the "Developer"; and the City of Hutchinson, a Municipal Corporation in the County of McLeod, State of Minnesota, hereinafter called the "City"; WITNESSETH: WHEREAS, the Developer is the owner and developer of property situated in the City of Hutchinson, County of McLeod, State of Minnesota, which has been identified with a legal description of Lots l through 13 Block 1, Top 10 Options of Hutchinson, according to the recorded plat thereof, McLeod County, Minnesota WHEREAS, City Ordinance No. 464 and 466 requires the Developer to make certain improvements in the development; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: I. SITE IMPROVEMENTS AND UTILITY INSTALLATIONS 1. It is agreed and understood that the Developer shall be responsible for all work associated with site improvements and utility installations within the above described property. All work shall conform to the City approved site, utility and building plans, 2. The Developer shall complete all work as noted within the below section II (paragraph no. 1) and provide a written verification and as -built drawings from a professional engineer and/or surveyor stating that all utility work satisfies the intentions of the plans and this agreement. This work must be approved by City staff. Any costs associated with meeting these requirements shall be the responsibility of the Developer. 3. The Developer shall provide all turf establishment and erosion control measures necessary to protect the utility installations and; street disturbance areas on the entire site and within adjacent City street right-of- ways. The Developer shall also provide all erosion control during site grading and improvement work necessary to meet local, state and federal requirements. Any subdivision disturbing one acre or more of land needs to obtain an NPDES/SDS (National Pollutant Discharge Elimination System/State Disposal Top 10 Options of Hutchinson/Page l — 8/27/2024 System) permit through the MPCA (Minnesota Pollution Control Agency). Information regarding the permitting process can be accessed at www.pca.state.mn.us/water/storrnwater/storrnwater-e.htm] or by calling the City's Environmental Specialist at (320) 234-5682. A copy of the submitted permit and associated Stormwater Pollution Prevention Plan (SWPPP) must be provided to the Environmental Specialist prior to construction commencing within the site. All disturbed areas shall be seeded, mulched, and disc anchored with MNDOT seed mix 250GR or other City -approved method within 48 hours after final grading is completed or within one week after rough grading is completed. Any areas disturbed adjacent to a stormwater pond, drainage ditch or existing wetland shall be seeded with MNDOT seed mixture 310 or other City -approved method and covered with erosion control blanket. Any corrective measures to address erosion control and turf establishment are at the expense of the Developer. In the case of the SWPPP not being administered appropriately, the City shall notify the Developer in writing of work needing completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer. 4. A grading and erosion control permit will be required prior to construction starting on the project. 5. It is understood and agreed that it shall be the Developer's responsibility to provide survey control points for all infrastructure and site construction. 6. It is understood and agreed that the Developer shall be responsible for maintaining the condition of the infrastructure, mowing, weed control and other site maintenance issues during site and building construction. The Developer shall be required to maintain and clean the roadways and storm sewers/ponds on a regular basis, and shall repair or replace any street, storm sewer/ponds, sanitary sewer or watermain infrastructure damaged by operations related to site and building construction. The City shall notify the Developer in writing of necessary work requiring completion. If no action is taken by the Developer within 10 days or sooner if determined necessary, the City reserves the right to complete this work and invoice or assess the Developer for the associated costs. The developer/development is allowed to utilize the stormwater pond located to the south of the development for the purposes of stormwater drainage and ponding requirements for this development. II. FUNDING AND DEDICATIONS I. The Developer hereby agrees to fund and construct all necessary utility installations/relocations and appurtenances to serve the entire development. All work shall be completed by forces employed by the Developer, and the work shall meet all applicable local, state and federal regulations and construction standards. The City shall approve all construction documents and shall provide minimal construction overview with final approval of all infrastructure connections to existing public facilities. All roadway and utility improvements shall be considered public infrastructure once the project is completed and the City accepts the project. Once the City accepts the project it will be responsible for all maintenance and repair. III.OTHE_R FEES, CHARGES AND EXPENDITURES 1. It is understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements as outlined in a handbook dated December 31, 2023. Electric service is provided at no charge other than requirements as outlined in the policy handbook. Natural gas service is provided and installed by the Hutchinson Utilities Commission. Commercial and industrial service lines are installed Top 10 Options of Hutchinson/Page 2 8/27/2024 and billed on a time and material basis. All costs shall be billed to the Developer. It is also understood and agreed that the Developer shall follow the Hutchinson Utilities Commission policy and requirements, for natural gas service, as outlined in the handbook dated December 31, 2023. 2. It is understood and agreed that the City shall collect a lump sum fee for services provided to the Subdivider. It is agreed that the Subdivider will have a consultant, Otto Associates, complete the following at his own expense: project design (including plans and specifications), construction staking, general project administration, construction observation, and detailed as-�built drawings in AutoCAD. The City shall complete the following at the noted percent of construction cost. It is agreed and understood that these costs will be paid prior to construction, and that rates are in consideration of work to be furnished and completed by the Subdivider's consultant. HRA Affordable Housing Fund 1.0% Design Review/Preliminary Layout 3.0% Administrative/Prelim. Development 1.0% Comprehensive Planning 2.0% TOTAL CITY EXPENSE RATE 7.0%* *The expense rate shall be applied against the total construction cost, excluding mass grading. The amount is based upon the actual bid received. Thus, the lump sum fee shall be 7% of actual bid amount. 3. It is understood and agreed that the builder of each lot shall pay the Trunk Sanitary Sewer and Water Main Availability Charges. This fee will compensate the City for improvements required to provide trunk sanitary sewer and water main access to this development. Per City staffs calculations utilizing current MCES criteria/guidance, the total charge for each respective single-family unit will be $4,050. This payment will be made with the building permit for each lot. 4. It is understood and agreed that a Parks and Playground Contribution shall be made in the form of the established lot rate (currently $215/lot) at the time of the building permit acquisition. 5. If applicable, any assessments need to be paid prior to the issuance of any building permits. 6. There is a portion of work within the project that is related to the City upgrading storm sewer in the area. The developer's Engineer has included the design for this work in the construction plans the developer has completed. The Developer is completing this work and City agrees to reimburse Developer $33,000 plus or minus any quantity adjustments from the contractor performing the work. The City will reimburse the Developer for this work after the project has been completed and the City has signed -off on the work and Developer has obtained a full and final lien release from the contractor performing the work. IV. GENERAL I. It is understood and agreed that no building certificates of occupancy will be issued prior to the public roadway/utility connections (including the City and City right-of-way disturbance areas being completely addressed and/or accepted by the City. 2. Any damage to surrounding private property or City infrastructure that occurs due to development construction shall be the responsibility of the Developer to correct. Top 10 Options of Hutchinson/Page 3 — 8/27/2024 3. It is understood and agreed that all local, state and federal permits 'required to be obtained for the development shall be the responsibility of the Developer. 4. This agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. 5. It is understood and agreed that the Developer shall record this agreement at the McLeod County Recorder's Office or McLeod County Registrar of Titles Office, and that no building permits will be issued until said Agreement is recorded and a certified copy of this agreement is provided to the City. The Developer shall pay all costs associated with said recording. Top 10 Options of Hutchinson/Page 4 — 8/27/2024 • MARK HEDGE (Developer): Signature STATE OF MINNESOTA COUNTY OF SIGNATURES Printed Name & Title The foregoing instrument was acknowledged before me this day of , 2024, by (name) (title) Of Lotus Holdings, LLC, a Minnesota Corporation, Notary Public, County, Minnesota My Commission Expires APPROVED BY THE HUTCHINSON CITY COUNCIL THE 25TH DAY OF DUNE, 2024. a CITY OF HUTCHINSON (City): GARY FORCIER, MAYOR STATE OF MINNESOTA COUNTY OF MCLEOD THIS INSTRUMENT WAS DRAFTED BY: Dan Jochum, AICP Planning Director Hutchinson City Center I I I Hassan Street SE Hutchinson, MN 55350 MATT JAUNICH, CITY ADMINISTRATOR - The foregoing instrument was acknowledged before me this day of 2024, by Gary Forcier, Mayor and Matt Jaunich, City Administrator of the City of Hutchinson. Notary Public, County, Minnesota My Commission Expires Top I0 Options of Hutchinson/Page 5 — 8/27/2024 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 8/27/24 Check Date Check# Name Description Amount 8/9/2024 EFT EFTPS Payroll Report 7/21/24 - 8/3/24 86,771.87 8/9/2024 EFT MN Dept of Revenue Payroll Report 7/21/24 - 8/3/24 17,066.03 8/9/2024 EFT MNDCP Payroll Report 7/21/24 - 8/3/24 325.00 8/9/2024 EFT Child Support Payroll Report 7/21/24 - 8/3/24 1,079.82 8/9/2024 EFT UNUM Voluntary Insurance Payroll Report 7/21/24 - 8/3/24 341.77 8/9/2024 EFT PERA Payroll Report 7/21/24 - 8/3/24 62,278.79 8/9/2024 EFT Further HSA Payroll Report 7/21/24 - 8/3/24 16,642.08 8/9/2024 EFT Mission Square Payroll Report 7/21/24 - 8/3/24 5,049.87 8/9/2024 EFT VOYA Payroll Report 7/21/24 - 8/3/24 260.00 8/9/2024 116915 Manual Employee Check Payroll Report 7/21/24 - 8/3/24 901.21 8/9/2024 116916 Manual Employee Check Payroll Report 7/21/24 - 8/3/24 193.33 8/9/2024 116917 HART Payroll Report 7/21/24 - 8/3/24 499.02 8/9/2024 116918 NCPERS Payroll Report 7/21/24 - 8/3/24 192.00 8/12/2024 116919 POSTMASTER POSTAGE FOR FALL BROCHURES - REC 1,705.28 8/27/2024 116920 AARP AARP INSTRUCTION - SR CENTER 430.00 8/27/2024 116921 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,003.35 8/27/2024 116922 ACE HARDWARE - 1825 LOCKS, VELCRO - POLICE 54.50 8/27/2024 116923 AEM MECHANICAL SERVICES INC TIF: ERIC & MARY WANGEN - HRA 7,218.23 8/27/2024 116924 ALLEGION ACCESS TECHNOLOGIES LLC INSTALL ADA PUSH BUTTON - DMV 1,295.50 8/27/2024 116925 ALTERNATIVE BUSINESS FURNITURE CHAIR - FINANCE 477.48 8/27/2024 116926 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 928.62 8/27/2024 116927 ANIMAL MEDICAL CENTER ON CROW RIVER ANIMAL IMPOUNDS - POLICE 410.00 8/27/2024 116928 APEX ENGINEERING GROUP INC WATER PLANT STUDY 2,898.72 8/27/2024 116929 ARTHUR 1 GALLAGHER RISK OPERATORS LIABILITY INSURANCE - AIRPORT 8,532.00 8/27/2024 116930 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 676.45 8/27/2024 116931 B & C PLUMBING & HEATING INC RPR WATER LINE - 805 GROVE ST SW - WATER 250.45 8/27/2024 116932 BARTON, STEVEN REFUND: LOAN PAYOFF OVERPYMT - EDA 83.39 8/27/2024 116933 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 1,624.21 8/27/2024 116934 BENEFIT EXTRAS INC COBRA ADMIN FEES 41.25 8/27/2024 116935 BERNICK'S CONCESSIONS, COGS - MULTIPLE DEPTS 1,200.50 8/27/2024 116936 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 326.72 8/27/2024 116937 BOLTON & MENK INC RUNWAY LIGHTING - AIRPORT 4,500.00 8/27/2024 116938 BORDER STATES INDUSTRIES INC WELDING SUPPLIES - HATS 185.95 8/27/2024 116939 BRANDON TIRE CO TIRE REPAIRS - PARKS 210.00 8/27/2024 116940 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 22,973.59 8/27/2024 116941 BRINKMANN, JOEL REIMB: CABLE LOCKS - POLICE 193.81 8/27/2024 116942 BSN SPORTS LLC OPERATING SUPPLIES - REC 1,185.00 8/27/2024 116943 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 35,824.90 8/27/2024 116944 CARS ON PATROL SHOP LLC VEHICLE REPAIRS - POLICE 2,190.02 8/27/2024 116945 CENTRAL HYDRAULICS COUPLERS, REPAIRS- PARKS 282.09 8/27/2024 116946 CHAPPELL CENTRAL INC ACCU 2 REPAIR - WATER 1,402.57 8/27/2024 116947 CHERRYROAD MEDIA INC JUNE ADVERTISING - LIQUOR HUTCH 1,297.00 8/27/2024 116948 CHOSEN VALLEY TESTING INC CASP SYSTEM EXCAVATION TESTING - CREEKSIDE 1,150.00 8/27/2024 116949 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 387.25 8/27/2024 116950 CIT SEWER SOLUTIONS FORCE MAIN REPAIR -SCHOOL RD - WWTP 22,777.74 8/27/2024 116951 CODE PACK LLC LABELS AND RIBBON FOR BAGGING - CREEKSIDE 1,995.36 8/27/2024 116952 COLDSPRING NICHE PLAQUE - BACKEN - CEMETERY 352.00 8/27/2024 116953 COOL AIR MECHANICAL INC WATER PUMP REPAIR - ARENA 555.00 8/27/2024 116954 CRESTED RIVER COST OF GOODS SOLD - LIQUOR HUTCH 952.00 8/27/2024 116955 CROW RIVER AUTO REPAIR OIL CHANGE - PARKS 72.82 8/27/2024 116957 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 62,153.64 8/27/2024 116958 DESIGN ELECTRIC INC REPLACE E LIGHT BALLAST- CITY CENTER 166.50 8/27/2024 116959 E2 ELECTRICAL SERVICES INC ELECTRICAL WORK - MULTIPLE DEPTS 2,878.48 8/27/2024 116960 ECOLAB PEST ELIMINATION PEST CONTROL- MULTIPLE DEPTS 320.61 8/27/2024 116961 EHLERS & ASSOCIATES INC 2024 CONTINUING DISCLOSURE REPORTING TO COUNTY 4,500.00 8/27/2024 116962 FARM -RITE EQUIPMENT HOSE FOR SKID - PARKS 71.05 8/27/2024 116963 FASTENAL COMPANY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 145.60 8/27/2024 116964 FENSKE'S STUMP REMOVAL STUMP REMOVALS - STREETS 4,475.00 8/27/2024 116965 FINNLY TECH INC FINNLYSCHEDULINGSOFTWARE - ARENA 2,975.00 8/27/2024 116966 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 102.32 8/27/2024 116967 FURTHER HSA/FSAADM FEES 342.50 8/27/2024 116968 GALLS LLC PISTOL MAG POUCH, BASE SHIRT - POLICE 142.90 8/27/2024 116969 GAVIN, JANSSEN, STABENOW & MOLDAN LTD PROSECUTIONS - LEGAL 3,700.00 8/27/2024 116970 GRACE LUTHERAN CHURCH RENTAL CANCELLED - WATERPARK 525.00 8/27/2024 116971 GRAINGER REPAIR &MAINT SUPPLIES - MULTIPLEDEPTS 1,453.15 8/27/2024 116972 GREEN EARTH LAWN CARE INC LAWN CARE - MULTIPLE DEPTS 1,520.90 8/27/2024 116973 HANSEN GRAVEL INC ROCK, PAVER BASE - MULTIPLE DEPTS 169.00 8/27/2024 116974 HAUAN, JOLYNN REIMB: SAFETY FOOTWEAR - PARKS 174.99 8/27/2024 116975 HAWKINS INC CHEMICALS- MULTIPLE DEPTS 16,315.51 8/27/2024 116976 HEALTHPARTNERSINC MEDICAL INSURANCE 152,889.71 8/27/2024 116977 HEART OF MINNESOTA ANIMAL SHELTER ANIMAL BOARDING - POLICE 6,397.50 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 8/27/24 Check Date Check# Name Description Amount 8/27/2024 116978 HERALD JOURNAL PUBLISHING JULY ADVERTISING - MULTIPLE DEPTS 1,540.00 8/27/2024 116979 HILLYARD / HUTCHINSON OPERATING SUPPLIES - REC BLDG 459.18 8/27/2024 116980 HOFFMAN ELECTRIC MN LLC CAMPGROUND SERVICE CALL- PARKS 167.50 8/27/2024 116981 HOLT-PETERSON BUS SEPT 2024 SR TOUR - TAYLORS FALLS BOAT CRUISE 1,307.00 8/27/2024 116982 HOME CITY ICE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 816.59 8/27/2024 116983 HUTCHINSON CO-OP FUEL & SUPPLIES - MULTIPLE DEPTS 29,645.18 8/27/2024 116984 HUTCHINSON HEALTH PRE-EMPLOYM ENT TESTING - WWTP 151.00 8/27/2024 116985 HUTCHINSON HRA TIFS - HRA 1,221.82 8/27/2024 116986 HUTCHINSON UTILITIES UTILITIES - MULTIPLE DEPTS 87,760.92 8/27/2024 116987 HUTCHINSON WHOLESALE #1550 EQUIPMENT PARTS - MULTIPLE DEPTS 214.21 8/27/2024 116988 HUTCHINSON WHOLESALE #1551 COUPLING FOR WLK FLR TRL 028 - CREEKSIDE 31.76 8/27/2024 116989 HUTCHINSON WHOLESALE #1552 EQUIPMENT PARTS - MULTIPLE DEPTS 280.68 8/27/2024 116990 HUTCHINSON, CITY OF WATER BILL- MULTIPLE DEPTS 7,510.41 8/27/2024 116991 JAUNICH, MATT REIMB: COMPASS PEER GROUP MTG - ADMIN 56.95 8/27/2024 116992 JOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 32,153.59 8/27/2024 116993 JOHNSON CONTROLS FIRE PROTECTION LP JOHNSON CONTROLS CONTRACT- EV CTR 202.34 8/27/2024 116994 KENNEDY & GRAVEN, CHARTERED STATE GRANT EV CTR - LEGAL 154.00 8/27/2024 116995 KOHLS SWEEPING SERVICE STRIPING, PILING CONCRETE - MULTIPLE DEPTS 13,802.25 8/27/2024 116996 KRIS ENGINEERING CUTTING EDGES FOR LOADERS - CREEKSIDE 1,457.92 8/27/2024 116997 KRUGER, HANNAH REIMB: SAFETY FOOTWEAR - STREETS 224.99 8/27/2024 116998 KWIKTRIP CONCESSIONS -AQUATIC CENTER 2,886.30 8/27/2024 116999 L & P SUPPLY CO WEED WHIP PARTS - PARKS 36.29 8/27/2024 117000 LEAGUE OF MN CITIES -INS TRUST PROPERTY/CASUALTY COVERAGE PREMIUMS 18,051.00 8/27/2024 117001 LITCHFIELD BUILDING CENTER NEW GARAGE DOORS FOR KIWANIS SHELTER - PARKS 3,048.00 8/27/2024 117002 LYNDE & MCLEOD INC COMPOST BULK 203.88 8/27/2024 117003 MARCO TECHNOLOGIES LLC NW 7128 PRINTING, SHREDDING - MULTIPLE DEPTS 5,380.30 8/27/2024 117004 MAVERICK WINE COST OF GOODS SOLD - LIQUOR HUTCH 2,310.00 8/27/2024 117005 MCLEOD COUNTY HHW BREAKROOM TV MONITOR RECYCLING - CREEKSIDE 10.00 8/27/2024 117006 MCLEOD FOR TOMORROW MCLEOD FOR TOMORROW - WWTP 600.00 8/27/2024 117007 MEEKER WASHED SAND & GRAVEL MISC DIRT FOR PROJECTS - PARKS 422.72 8/27/2024 117008 MENARDS HUTCHINSON REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 1,440.80 8/27/2024 117009 MINI BIFF TOILET RENTALS - MULTIPLE DEPTS 469.20 8/27/2024 117010 MINNESOTA DEPT OF LABOR & INDUSTRY INSPECTIONS - MULTIPLE DEPTS 100.00 8/27/2024 117011 MINNESOTA PETROLEUM SERVICE RPL BELL INTERSTITIAL SENSOR - AIRPORT 700.00 8/27/2024 117012 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 783.20 8/27/2024 117013 MOMENTUM TRUCK GROUP EQUIPMENT PARTS - MULTIPLE DEPTS 817.31 8/27/2024 117014 MUNICIPAL EMERGENCY SERVICES INC REVOLVE AIR FILL STATION - FIRE 23,481.05 8/27/2024 117015 NORTH AMERICAN SAFETY INC SAFETY GLOVES - PARKS 38.97 8/27/2024 117016 NOTHING BUT HEMP COST OF GOODS SOLD - LIQUOR HUTCH 729.00 8/27/2024 117017 ODP BUSINESS SOLUTIONS LLC OFFICE SUPPLIES - MULTIPLE DEPTS 131.68 8/27/2024 117018 O'REILLY AUTO PARTS BRAKECLEANER- AIRPORT 11.18 8/27/2024 117019 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 2,871.50 8/27/2024 117020 PEAT INC SPHAGNUM PEAT BULK - CREEKSIDE 10,170.00 8/27/2024 117021 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 4,739.20 8/27/2024 117022 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 23,445.10 8/27/2024 117023 POSTMASTER SEPT 2024 NEWSLETTER - SR CTR 146.00 8/27/2024 117024 POSTMASTER POSTAGE - UB BILLS 1,780.00 8/27/2024 117025 PRO AUTO MN INC 2023 FORD INTERCEPTOR OIL CHANGE - FIRE 50.81 8/27/2024 117026 PROFILE PRODUCTS LLC HYDRAFIBER TOWERS - CREEKSIDE 13,663.75 8/27/2024 117027 QUEST ENGINEERING RO SKID LOW PRESSURE SWITCH - WATER 950.84 8/27/2024 117028 QUILL CORP COPY PAPER, CLOROX WIPES - POLICE 108.65 8/27/2024 117029 R & R EXCAVATING LS REHAB - WWTP 113,647.46 8/27/2024 117030 RAMBOW INC UNIFORMS -AQUATIC CENTER 427.52 8/27/2024 117031 RED BULL DISTRIBUTION COMPANY INC COST OF GOODS SOLD - LIQUOR HUTCH 222.88 8/27/2024 117032 REDEEMING ACRES LLC EAST RIVER PARK- GOAT GRAZING - PARKS 2,759.00 8/27/2024 117033 REINER ENTERPRISES INC ST. CLOUD COMPOST HAULING - CREEKSIDE 9,600.00 8/27/2024 117034 REVIER WELDING MS613T REPAIR - STREETS 2,384.14 8/27/2024 117035 RICHARD LARSON BUILDERS TIF: TROY PETERSEN - HRA 5,000.00 8/27/2024 117036 ROSE TRUCKING INC REPLACE MUD FLAPS AND FENDERS SEMI 475 - CREEKSIDE 2,588.08 8/27/2024 117037 RUNNING'S SUPPLY REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 65.98 8/27/2024 117038 S&STRUCKING LLC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 2,200.00 8/27/2024 117039 SCHERER & SONS TRUCKING INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 575.00 8/27/2024 117040 SCHWICKERT'S TECTA AMERICA LLC ROOF REPAIR CITY CENTER 2,200.00 8/27/2024 117041 SHAW, KAREN PILATES/ YOGA INSTRUCTION - SR CTR 120.00 8/27/2024 117042 SMALL LOT WINE AND SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 1,204.64 8/27/2024 117043 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 11,790.96 8/27/2024 117044 ST. CLOUD REFRIGERATION INC HVAC REPAIR - ARENA 722.08 8/27/2024 117045 STANDARD PRINTING-N-MAILING SUPPLIES, POSTAGE - MULTIPLE DEPTS 494.09 8/27/2024 117046 STAPLES ADVANTAGE OFFICE SUPPLIES- MULTIPLE DEPTS 533.82 8/27/2024 117047 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 4,265.00 8/27/2024 117048 SVL SERVICE CORPORATION #30 HVAC PART INSTALL - WWTP 2,659.78 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 8/27/24 Check Date Check# Name Description Amount 8/27/2024 117049 SYSCO WESTERN MN CONCESSIONS -AQUATIC CENTER 1,820.32 8/27/2024 117050 TALL SALES COMPANY JULY COMMISSIONS - CREEKSIDE 1,557.47 8/27/2024 117051 THOMSON REUTERS-WEST SUPPLIES - MULTIPLE DEPTS 1,466.12 8/27/2024 117052 TIDY TIGHTWADS/HUTCHFIELD SERVICES HATS JANITORIAL SERVICE 1,485.75 8/27/2024 117053 TITLE MARK LLC SOUTHFORK RIDGE OUTLOTA, O&E REPORT- LEGAL 200.00 8/27/2024 117054 TRI COUNTY WATER BOTTLE WATER & DELIVERY - MULTIPLE DEPTS 133.53 8/27/2024 117055 TRUSTED COACHES YOUTH COACH - BACKGROUND CHECKS & TRAINING - REC 1,025.00 8/27/2024 117056 UNITED PACKAGING & DESIGN SLIP SHEETS - CREEKSIDE 1,726.40 8/27/2024 117057 UNUM LIFE INSURANCE CO OFAMERICA INSURANCE 3,200.13 8/27/2024 117058 USA BLUE BOOK PVC BALL VALVE - WWTP 154.48 8/27/2024 117059 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 8,698.10 8/27/2024 117060 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 307.15 8/27/2024 117061 VIKING SIGNS & GRAPHICS INC SIGN - STREET PROJECT 100.00 8/27/2024 117062 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 2,127.92 8/27/2024 117063 VOS CONSTRUCTION INC CASP SYSTEM PROGRESS BILLING - CREEKSIDE 145,207.50 8/27/2024 117064 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 11,515.88 8/27/2024 117065 WEST CENTRAL SANITATION INC RESIDENTIAL REFUSE 57,977.12 8/27/2024 117066 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 6,304.46 8/27/2024 117067 WM MUELLER & SONS 1/4 VIRGIN SAND BLACKTOP - STREETS 348.87 8/27/2024 117068 FLANK STEAKHOUSE UB REFUND 2.51 8/27/2024 117069 JOHNSON, HEIDI UB REFUND 53.93 8/27/2024 1117070 PLATH, JOEL jUB REFUND 1 39.39 8/27/2024 1117071 SHAMLA, BRAD & LAURIE JUB REFUND 110.00 Total - Check Register A: I $ 1,096,820.59 Department Purchasing Card Activity - July 2024 Date Department Vendor Name Description Amount 7/26/2024 ADMIN MINNESOTA SAFETY COUNCIL 2 Safety Trainings for Kellie 380.00 7/29/2024 ADMIN SOCIETYFORHUMANRESOURCE Annual SHRM Membership 264.00 7/12/2024 CITY OF HUTCHINSON CIVIC SYSTEMS PAYMENT Software Training Sessions 250.00 7/12/2024 CITY OF HUTCHINSON GLACIER CANYON LLC Software Training Sessions 308.66 7/1/2024 CREEKSIDE MAILCHIMP Monthly subscription for email marketing; newsletter 20.00 7/7/2024 CREEKSIDE AMAZON Compostable supplies for Director's Picnic 55.98 7/9/2024 CREEKSIDE ILTOLLWAY Illinois toll fees for May 2024 trip 7.30 7/11/2024 CREEKSIDE US EQUIPMENT SALES RENTAL Screener #163 bearings 214.40 7/11/2024 CREEKSIDE SPSCOMMERCE June 2024 SPS fees; U H 192.50 7/16/2024 CREEKSIDE TARGET Breakroom TV/Info monitor 161.80 7/24/2024 CREEKSIDE SKILLPATH / NATIONAL BKobow seminar; Sales Training Bootcamp 101 181.47 7/3/2024 EDA FACEBOOK FB ads for incubator/childcare 125.10 7/3/2024 EDA FACEBOOK FB ads for incubator/childcare 10.13 7/16/2024 EDA COUNTRY INN & SUITES Mid -America EDC conference 464.82 7/17/2024 EDA ODE TO FOOD AND DRINKS Lunch @ conference 19.78 7/17/2024 EDA JIMMY'S PIZZA HUTCHINSON Lunch for Finance Team meeting 99.47 7/21/2024 EDA FACEBOOK FB ads for incubator/childcare 175.00 7/22/2024 EDA PRO AUTO Van repair 544.54 7/24/2024 EDA JIMMYJOHNS Lunch for EDA Board 128.65 7/27/2024 EDA GO TO MEETING Video conference subscription 155.34 7/1/2024 FINANCE AMAZON City Center- Pencils and Pens 25.24 7/2/2024 FINANCE AMAZON City Center- Pens 37.54 7/3/2024 FINANCE AMAZON Director's Picnic supplies 116.86 7/9/2024 FINANCE WAL-MART City Center- Soda for vending machine 73.16 7/9/2024 FINANCE WAL-MART Director's Picnic supplies 179.55 7/9/2024 FINANCE CASH WISE FOODS Director's Picnic supplies 467.16 7/25/2024 FINANCE AMAZON Finance - Office supplies 31.65 7/29/2024 FINANCE ALDI City Center- Soda for vending machine 63.48 7/29/2024 FINANCE WAL-MART City Center- Soda for vending machine 94.32 7/30/2024 FINANCE MN GOVT FINANCE OFFICER MNGFOA conference - J.Juergensen 250.00 7/31/2024 FINANCE EZBUSINESS FEE Credit Card Service Fee 15.00 7/22/2024 FIRE CASH WISE FOODS Ice bags and bottled water 71.47 7/30/2024 FIRE PARMAN ENERGY CORP Water soluable oil for trucks 180.45 7/7/2024 IT AMAZON Phone case Dhalquist 13.49 7/10/2024 IT MENARDS HUTCHINSON Picnic Coolers 215.73 7/11/2024 IT FLEETMATE Fleetmate Software 2,157.45 7/15/2024 IT AMAZON Mic cable for Soft Interview 29.00 7/17/2024 IT U.S. CAD Bluebeam Software 2,145.00 7/17/2024 IT HERMAN MILLER Office Cha ire Jbeck 1,493.00 7/18/2024 IT WM SUPERCENTER Mistake in purchase refund to city by check 25.10 7/22/2024 IT TARGET USB drive for BSA data 43.14 7/22/2024 IT AMAZON Media Converters Solar Array 213.55 7/23/2024 IT AMAZON Printer for Airport 349.00 7/27/2024 IT WEB*NETWORKSOLUTIONS Domain name protection 33.98 7/28/2024 IT AMAZON Tool to replace keyboard Mduenow 9.99 7/28/2024 IT AMAZON Keyboard for Mduenow 25.69 6/30/2024 LIQUOR HUTCH MENARDS HUTCHINSON Landscaping needs 23.31 6/30/2024 LIQUOR HUTCH FACEBOOK FB advertising 144.34 6/30/2024 LIQUOR HUTCH HUTCHINSON ACE Landscaping needs 8.19 7/1/2024 LIQUOR HUTCH CITY HIVE Website/online ordering 100.53 7/3/2024 LIQUOR HUTCH HUTCHINSON ACE Stocking cart maintenance 4.59 7/9/2024 LIQUOR HUTCH MENARDS HUTCHINSON Shelf /smoke stack needs 11.10 7/10/2024 LIQUOR HUTCH AMAZON Rubber bands 21.04 7/15/2024 LIQUOR HUTCH AMAZON Rebate table 64.44 7/15/2024 LIQUOR HUTCH RITE Monthly POS CR fee 268.44 7/17/2024 LIQUOR HUTCH MENARDS HUTCHINSON Event crackers and water 25.53 7/17/2024 LIQUOR HUTCH DOLLAR TREE Event table covers 6.74 7/19/2024 LIQUOR HUTCH AMAZON Pallet jack repair 43.10 7/19/2024 LIQUOR HUTCH AMAZON Misc supplies 350.73 7/21/2024 LIQUOR HUTCH AMAZON White board supplies 32.86 7/24/2024 LIQUOR HUTCH AMAZON Shelftag backer 75.46 7/24/2024 LIQUOR HUTCH AMAZON HVAC unit belts 34.50 6/30/2024 PARK & REC AMAZON Concession Supplies - Cleaning Powder, Brush Cleaning Kit 59.93 7/1/2024 PARK & REC PADELFORD PACKET BOAT CO Senior Trips - Lunch and Lock Group Tickets - 50 2,007.37 7/1/2024 PARK & REC WHEN I WORK INC Employee Scheduling Software 440.00 7/8/2024 PARK & REC ONCOURT OFFCOURT LTD Pickleball Paddle Holder 505.95 7/10/2024 PARK & REC AMAZON Concession Stand Timers 39.96 7/10/2024 PARK & REC AMAZON Swim Diapers and Sunscreen for Admissions to Sell 60.43 7/11/2024 PARK & REC SP POOLWEB COM Replacement Tubes for the Aquatic Center - 20 999.80 7/13/2024 PARK & REC WAL-MART Roberts Concession -Buns, Bubblr, Ketchup, Gatorade, Candy 262.38 7/16/2024 PARK & REC AMAZON Chemical Pour Measuring Cup 78.78 7/17/2024 PARK & REC HUTCHSTATION Cherry Road Newspaper Subscription - Rec Center 76.00 Department Purchasing Card Activity - July 2024 Date Department Vendor Name Description Amount 7/21/2024 PARK & REC AMAZON Sunflower Seeds -3 34.77 7/21/2024 PARK & REC AMAZON Slushie Mix - 3 76.68 7/24/2024 PARK & REC AMAZON Printer Paper 105.15 7/24/2024 PARK & REC AMAZON Roberts Concessions 27.87 7/26/2024 PARK & REC WM SUPERCENTER Roberts Concessions- Sharpie, Gatorade, Utensils 19.82 7/29/2024 PARK & REC AMAZON Printer Paper 189.45 7/29/2024 PARK & REC USPS Mailing Permit Application Fee - PRCE Brochure Bulk Mailing 350.00 7/29/2024 PARK & REC USPS Market Mailing Permit - PRCE Brochure Bulk Mailing 350.00 7/1/2024 PLANNING DEPARTMENT OF LABOR Building official license 85.00 7/8/2024 POLICE STATE OF MN POST BOARD Litzau License 90.00 7/8/2024 POLICE POST BOARD SERVICE FEE Service Fee 1.94 7/9/2024 POLICE AMAZON Papertowels 110.48 7/13/2024 POLICE AMAZON Lift belts 299.88 7/18/2024 POLICE RUBBER FLOORING Wrestling Mats, Mat Tape for PD 2,801.83 7/22/2024 POLICE AMAZON Earpieces 474.95 7/22/2024 POLICE AMAZON Earpieces 84.99 7/23/2024 POLICE AMAZON Windowcleaning 47.45 7/24/2024 POLICE VISTAPRINT Printing magnets 484.97 7/25/2024 POLICE AMAZON Gloves 66.75 7/1/2024 PUBLIC WORKS KEYSTONE PEST SOLUTIONS Herbicides 1,077.39 7/2/2024 PUBLIC WORKS FINEST EMERGENCY LIGHTING Truck Lights for CM 234.99 7/2/2024 PUBLIC WORKS CUSTOMER ELATION Monthly Dispatch Services 79.00 7/2/2024 PUBLIC WORKS CUSTOMER ELATION Monthly Dispatch Services 79.00 7/3/2024 PUBLIC WORKS SAFEBASEMENTS OF MINN WTP Front Step Foam Jacking 1,215.00 7/8/2024 PUBLIC WORKS BORDER STATES INDUSTRIES Lights 3,383.26 7/10/2024 PUBLIC WORKS AMAZON Basic WW Operator Training Manuals 29.98 7/11/2024 PUBLIC WORKS AMAZON Compostable Trash Bags 54.17 7/11/2024 PUBLIC WORKS MN POLLUTION CONTROL AGENCY Type 40 Refresher & MPCA 195.00 7/11/2024 PUBLIC WORKS MN POLLUTION CONTROL SERVICE FEE Service Fee 4.19 7/18/2024 PUBLIC WORKS SAFEBASEMENTS OF MINN Down Payment on WTP Front Step 150.00 7/19/2024 PUBLIC WORKS HUSQVARNA PROFESSIONAL Chainsaw, Battery, and Charger 1,477.87 7/27/2024 PUBLIC WORKS TIMBERLAKE LODGE & HOTEL Hotel for MWOA Annual Conference for TG 686.08 7/30/2024 PUBLIC WORKS PRYOR TOOLS Drop Manhole Bridge 253.00 7/30/2024 PUBLIC WORKS CETRIX STORE M & L Exam Gloves 104.00 7/30/2024 PUBLIC WORKS MINNESOTA RWA MN 1N Rural Water Assocaition Training 150.00 Total P-Cards: $ 32,739.35 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE 8/27/24 Check Date ICheck# Name Description Amount 8/27/2024 1116956 CROW RIVER SIGNS CSO SQUAD MAGNETS 65.00 Total - Check Register B: $ 65.00 c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Discussion on Cannabis Regulation Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� Communications, Requests 0 Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City Staff would like to have a discussion on cannabis regulation here in town. With some licenses potentially being issued by the end of the year and the retail business likely to take off in 2025, staff wants to have a discussion with the Council on whether or not we want to regulate anything related to cannabis within the community. Staff has included a document with some discussion points along with the Office of Cannabis Management's "Guide for Local Governments" on Cannabis use and regulation. Most of the regulation will be handled by the State, but there are some items that should be discussed locally. We should have some discussions on the following: -- Are we going to regulate where businesses can go? -- Are we going to prohibit sale hours? -- Are we going to limit the number of retailers within the community? -- Are we going to charge a fee for "Registrations" Please remember that the County has already prohibited the use of cannabis in any public area. There may be other regulations we want to touch on as well. If there is a desire to address some of these items, staff would put together an ordinance for future consideration. BOARD ACTION REQUESTED: No action at this time. Discussion only. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 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 CANNABIS REGULATION STAFF/COUNCIL DISCUSSION Chapter 342 is the State Law • OCM = Office of Cannabis Management 1. LICENSING 13 Different Types (page 5) Licenses are governed by the State (Page 8) • Certain licenses allow for multiple retail locations under a single license (Page 11) • Only responsibility of the City is to issue a "Retail Registration" (Page 16) o Can charge an initial and renewal registration fees o Fees can be up to $1,000 o Cannot charge an application fee o Need to put together a "Registration" Form o Do we want to add fees to our Fee Schedule? 2. ZONING AND LAND USE REGULATIONS (page 12-14) • Can regulate where businesses go (zoning designation) — Should we? Can prohibit the operation of a cannabis business within 1,000 ft of a school or 500 ft of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields — Should we? We do not for tobacco or Liquor. • City has to certify that local cannabis businesses are in compliance with local zoning ordinances within 30 days of the request by the OCM • State has advertising regulations in place • City zoning is required to sign off on a business • Do we want to add anything to our land use and zoning code in regards to cannabis businesses? 3. ORDINANCE REGULATIONS • State has identified most of the rules in regards to cannabis use throughout the state • Can prohibit retails sales between the hours of 8 a.m. and 10 a.m. Monday — Saturday, and 9 p.m. and 2 a.m. the following day — Do we want to? Can prohibit consumption in public places — So far we have chosen not too, but the County has • Can limit the number of retailers and microbusiness/mezzobusinesses with retail endorsements within the community. At a minimum we have to allow one. If we do limit the number, we have to come up with a process for selecting the business if the applications exceed our minimum amount. (Page 16) • Do we want to limit the amount of businesses in town? • Do we need to update any of our ordinances or do we feel we need to development a new stand -along cannabis ordinance? 4. INSPECTIONS AND COMPLIANCE CHECKS (Page 18) • We are required to conduct at least one compliance check per year for cannabis and hemp businesses holding retail registrations. • Compliance checks are to verify compliance with age verification and any applicable local ordinances. S. LOCAL APPROVAL PROCESS (page 15-17) • First vetted by the State • Once vetted by the State and selected, we need to certify that the business is compliance with all zoning ordinances. • The business will then have a valid license or receive license preapproval by the OCM • Then the City registers the business (with potential registration/renewal fees) o To be registered, it must be in compliance with all local ordinances o To be registered, the business needs to be current on all property taxes and assessments for the proposed retail location • Will have to renew in the future • We can suspend the local retail registration • There is a process for us to file complaints 6. OTHER ITEMS • Municipal Cannabis Store • County Impact • Tax Impact • Model Local Ordinance rYi MINNeSOTA OFFICE OF CANNABIS MANAGEMENT A Abr I-%- -WNW Version 1.3 Updated July 11, 2024 Table of Contents Introduction............................................................... 3 AboutOCM............................................................... 4 CannabisLicense Types ............................................. 5 Adult- Use Cannabis Law ........................................... 7 CannabisLicensing Process ........................................ 8 GeneralAuthorities .................................................. 10 Zoningand Landse................................................ 12 LocalApproval Process ............................................. 15 Inspections and Compliance Checks ........................ 18 MunicipalCannabis Cores ...................................... 19 Creating Your Local 20 AdditionalResources ................................................ 21 Introduction This guide serves as a general overview of Minnesota's new adult -use cannabis law, and how local governments can expect to be involved. The guide also provides important information about Minnesota's new Office of Cannabis Management (OCM), and the office's structure, roles, and responsibilities. While medical cannabis continues to play an important role in the state's cannabis environment, this guide is primarily focused on the adult -use cannabis law and marketplace. The following pages outline the variety of cannabis business licenses that will be issued, provide a broad summary of important aspects of the adult -use cannabis law, and cover a wide range of expectations and authorities that relate to local governments. This guide also provides best practices and important requirements for developing a local cannabis ordinance. Chapter 342 of Minnesota law was established by the State Legislature in 2023 and was updated in 2024. Mentions of "adult -use cannabis law" or "the law" throughout this guide refer to Chapter 342 and the changes made to it. As of this guide's date of publication, state regulations governing the adult -use cannabis market have not yet been published this document will be updated when such regulations become effective. This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and municipal officials seeking legal advice should consult an attorney. About OCM Minnesota's Office of Cannabis Management is the state regulatory office created to oversee the implementation and regulation of the adult -use cannabis market, the medical cannabis market, and the consumer hemp industry. Housed within OCM are the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. MINN@SOYA OFFICE OF CANNABIS MANAGEMENT OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated to: • Promote public health and welfare. • Protect public safety. • Eliminate the illicit market for cannabis flower and cannabis products. • Meet the market demand for cannabis flower and cannabis products. • Promote a craft industry for cannabis flower and cannabis products. • Prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition. OCM governs the application and licensing process for cannabis and hemp businesses, specific requirements for each type of license and their respective business activities, and conducts enforcement and inspection activities across the Minnesota cannabis and hemp industries. License Types Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role in the cannabis and hemp supply chain. In addition to license types below, OCM will also issue endorsements to license holders to engage in specific activities, including producing, manufacturing, and sale of medical cannabis for patients. Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location. Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations. Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business. Manufacturer Manufacturers may manufacture cannabis products and hemp products, and package such products for sale to a licensed cannabis retailer. Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients. Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp -derived consumer products and lower -potency hemp edibles. License Types (continued) Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses. Testing Facility Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis businesses. Event Organizer Event organizers may organize a temporary cannabis event lasting no more than four days. Delivery Service Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery to customers. Medical Cannabis Combination Business Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district. Lower -Potency Hemp Edible Manufacturer Lower -potency hemp edible manufacturers may manufacture and package lower -potency hemp edibles for consumer sale, and sell hemp concentrate and lower -potency hemp edibles to other cannabis and hemp businesses. Lower -Potency Hemp Edible Retailer Lower -potency hemp edible retailers may sell lower -potency hemp edibles to customers. Each license is subject to further restrictions on allowable activities. Maximum cultivation area and manufacturing allowances vary by license type. Allowable product purchase, transfer, and sale between licensees are subject to restrictions in the law. The Adultm Use Cannabis Law Minnesota's new adult -use cannabis law permits the personal use, possession, and transportation of cannabis by those 21 years of age and older, and allows licensed businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis and cannabis products. For Individuals • Possession limits: o Flower - 2 oz. in public, 2 lbs. in private residence • Concentrate - 8 g o Edibles (including lower -potency hemp) - 800 mg THC • Consumption only allowed on private property or at licensed businesses with on -site consumption endorsements. Consumption not allowed in public. • Gifting cannabis to another individual over 21 years old is allowed, subject to possession limits. • Home cultivation is limited to four mature and four immature plants (eight total) in a single residence. Plants must be in an enclosed and locked space. • Home extraction using volatile substances (e.g., butane, ethanol) is not allowed. • Unlicensed sales are not allowed. For Businesses • Advertising: o May not include or appeal to those under 21 years old. o Must include proper warning statements. o May not include misleading claims or false statements. o Billboards are not allowed. • The flow of all products through the supply chain must be tracked by the state -authorized tracking system. • All products sold to consumers and patients must be tested for contaminants. • Home delivery is allowed by licensed businesses. V The Cannabis Licensing Process An applicant will take the following steps to proceed from application to active licensure. As described, processes vary depending on social equity status and/or whether the type of icense being sought is capped or uncapped in the general licensing process. License Preapproval: Early Mover Process for Social Equity Applicants The license preapproval process is a one-time application process available for verified social equity applicants. State law requires OCM to open the application window on July 24, 2024, and close the window on August 12, 2024. The preapproval process is available for the following license types, and all are capped in this process: microbusiness, mezzobusiness, cultivator, retailer, wholesaler, transporter, testing facility, and delivery service. Preapproval steps: 1. Applicant's social equity applicant (SEA) status verified. 2. Complete application and submit application fees. 3. Application vetted for minimum requirements by OCM. 4. Application (if qualified) entered into lottery drawing. 5. If selected in lottery, OCM completes background check of selected applicant and issues license preapproval. 6. Applicant with license preapproval* submits business location and amends application accordingly. 7. OCM forwards completed application to local government. 8. Local government completes certification of zoning compliance. 9. OCM conducts site inspection. 10. When regulations are adopted, license becomes active, operations may commence. *For social equity applicants with license preapproval for microbusiness, mezzobusiness, or a cultivator license, they may begin growing cannabis plants prior to the adoption of rules if OCM receives approval from local governments in a form and manner determined by the office. This is only applicable to cultivation and does not authorize retail sales or other endorsed activities of the licenses prior to the adoption of rules. The Cannabis Licensing Process (cont.) The general licensing process will align with the adoption of rules and OCM will share more information about the timing of general licensing process. The general licensing process includes social equity applicants and non-social equity applicants. General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness 1. Complete application and submit application fees. 2. Application vetted for minimum requirements by OCM. 3. Application (if qualified) entered into lottery drawing. 4. If selected in lottery, OCM completes background check of selected applicant and issues preliminary approval. 5. Applicant with preliminary approval submits business location and amends application accordingly. 6. OCM forwards completed application to local government. 7. Local government completes certification of zoning compliance. 8. OCM conducts site inspection. 9. License becomes active, operations may commence.* General Licensing: Microbusiness, Wholesaler, Transporter, Testing Facility, Event Organizer 1. Complete application and submit application fees. 2. Application vetted for minimum requirements by OCM. 3. For qualified applicants, OCM completes background check of vetted applicant and issues preliminary approval. 4. Selected applicant submits business location and amends application accordingly. 5. OCM forwards completed application to local government. 6. Local government completes certification of zoning compliance. 7. OCM conducts site inspection. 8. License becomes active, operations may commence.* *For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 16 for information on the local retail registration process. General Authorities Local governments in Minnesota have various means of oversight over the cannabis market, as provided by the adult -use cannabis law. Local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by state law. Cannabis Retail Restrictions (342.13) Local governments may limit the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality, as long as there is at least one retail location per 12,500 residents. Local units of government are not obligated to seek out a business to register as cannabis business if they have not been approached by any potentia applicants, but cannot prohibit the establishment of a business if this population requirement is not met. Local units of government may also issue more than the minimum number of registrations. Per statutory direction, a municipal cannabis store (Page 19) cannot be included in the minimum number of registrations required. For population counts, the state demographer estimates will likely be utilized. Tribal Governments (342.13) OCM is prohibited from and will not issue state licenses to businesses in Indian Country without consent from a tribal nation. Tribal nations hold the authority to license tribal cannabis businesses on tribal lands — this process is separate than OCM's licensing process and authority. Subject to compacting, Tribal nations may operate cannabis businesses off tribal lands. There will be more information available once the compacting processes are complete. Taxes (295.81; 295.82) Retail sales of taxable cannabis products are subject to the state and local sales and use tax and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows: 20% to the local government cannabis aid account and 80% to the state general fund. Local taxes imposed solely on sale of cannabis products are prohibited. Cannabis retailers will be subject to the same real property tax classification as all other retail businesses. Real property used for raising, cultivating, processing, or storing cannabis plants, cannabis flower, or cannabis products for sale will be classified as commercial and industrial property. General Authorities (cont.) Retail Timing Restrictions (342.13) Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and 10 a.m. Monday -Saturday, and 9 p.m. and 2 a.m. the following day. Operating Multiple Locations with One License Certain cannabis licenses allow for multiple retail locations to be operated under a single license, with the following limitations: • Retailers: up to five retail locations. • Mezzobusinesses: up to three retail locations. • Microbusinesses: up to one retail location. • Medical cannabis combination businesses: one retail location per congressional district. Additionally, medical cannabis combination businesses may cultivate at more than one location within other limitations on cultivation. For all other license types, one license permits the operation of one location. Each retail location requires local certification and/or registration. Zoning and Land Use Buffer Guidelines (342.13) State law does not restrict how a local government conducts its zoning designations for cannabis businesses, except that they may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields. Zoning Guidelines While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite, and are also required to have plans to prevent the visibility of cannabis and hemp -derived products to individuals outside the retail location. Industrial hemp is an agricultural product, and should be zoned as such. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. Note that certain types of licenses may be able to perform multiple activities which may have different zoning analogues. In the same way municipalities may zone a microbrewery that predominately sells directly to onsite consumers differently than a microbrewery that sells packaged beer to retailers and restaurants, so too might a municipality wish to zone two microbusinesses based on the actual activities that each business is undertaking. Table 1, included on Pages 13 and 14, explains the types of activities that cannabis businesses might undertake, as well as, some recommended existing zoning categories. Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities Odor "Cultivation" means any Indoor: Potential need for Cultivator activity involving the Planting, Industrial, transportation from Mezzobusiness growing, harvesting, drying, Commercial facility Cultivation Microbusiness curing, grading, or trimming Production Medical Cannabis of cannabis plants, cannabis Waste, water, and Combination flower, hemp plants, or hemp Outdoor: plant parts. Agricultural energy usage Security Odor Manufacturer This group of endorsed Potential need for Cannabis activities turn raw, dried transportation from Manufacturing Mezzobusiness cannabis and cannabis partsfacility Industrial, Processing Microbusiness into other types of cannabis Commercial, Extraction Medical Cannabis products, e.g. edibles or Production Waste, water, and Combination topicals. energy usage Security Lower- Potency Industrial Odor Hemp Hemp Edible These business convert hemp Commercial, Waste, water, and Manufacturing (LPHE) into LPHE edible prodcuts. Manufacturing Production energy Wholesale This activity and license type Cultivator allows a business to purchase Need for Manufacturer from a business growing or Industrial, transportation from Wholesale Mezzobusiness manufacturing cannabis or Commercial, facility Microbusiness cannabis products and sell to Production Medical Cannabis a cannabis business engaged Security Combination in retail. Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities (continued) Type DescriptionLicense Endorsed Actiyity Eligible to Do Endorsed Actiyity Actiyity Districts Considerations Micros may offer Retail This endorsed Neighborhood onsite consumption, Retailer activity and license Shopping Distracts, similar to breweries. Mezzobusiness types allow a business Light Industrial Cannabis Retail Microbusiness to sell cannabis and Micros and Mezzos Medical Cannabis cannabis products Existing districts may include multiple Combination directly to where off -sale liquor activities: cultivation, consumers. or tobacco sales are manufacture, and/or allowed. retail. Fleet based business This license type that will own multiple Cannabis allows a company to vehicles, but not Transportation Transporter transport products necessarily hold a from one license substantial amount type to another. of cannabis or cannabis products. Fleet based business This license type that will own multiple allows for vehicles, but not Delivery Cannabis Delivery necessarily hold a transportation to the substantial amount end consumer. of cannabis or cannabis products. This license entitles Anywhere that the On site license holder to city permits events consumption. Events Event Organizer organizer a to occur, subject to Retail sales by a temporary event other restrictions licensed endorsed lasting no more than related to cannabis four days. use. retail business possible. Local Approval Process Local governments play a critical role in the licensing process, serving as a near -final approval check on cannabis businesses nearing the awarding of a state license for operations. Once an applicant has been vetted by OCM and is selected for proceeding in the verification process, they are then required to receive the local government's certification of zoning compliance and/or local retail registration before operations may commence. Local Certification of Zoning Compliance (342.13; 342.14) Following OCM's vetting process, local governments must certify that the applicant with preliminary approval has achieved compliance with local zoning ordinances prior to the licensee receiving final approval from OCM to commence operations. During the application and licensing process for cannabis businesses, OCM will notify a local government when an applicant intends to operate within theirjurisdiction and request a certification as to whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. According to Minnesota's cannabis law, a local unit of government has 30 days to respond to this request for certification of compliance. If a local government does not respond to OCM's request for certification of compliance within the 30 days, the cannabis law allows OCM to issue a license. OCM may not issue the final approval for a license if the local government has indicated they are not in compliance. OCM will work with local governments to access the licensing software system to complete this zoning certification process. Local Approval Process (cont.) Local Retail Registration Process (342.22) Once the licensing process begins, local government registration applies to cannabis retailers or other cannabis/hemp businesses seeking a retail endorsement. Local governments must issue a retail registration after verifying that: • The business has a valid license or license preapproval issued by OCM. • The business has paid a registration fee or renewal fee to the local government; o Initial registration fees collected by a local government may be $500 or half the amount of the applicable initial license fee, whichever is less, and renewal registration fees may be $1,000 or half the amount of the applicable renewal license fee, whichever is less. • The business is found to be in compliance with Chapter 342 and local ordinances. • If applicable, the business is current on all property taxes and assessments for the proposed retail location. Local registrations may also be issued by counties if the respective local government transfers such authorities to the county. Determining a Process for Limiting Retail Registrations If a local government wishes to place a limitation on the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality (as long as there is at least one retail location per 12,500 residents, see Page 10), state law does not define the process for a local government's selection if there are more applicants than registrations available. A few options for this process include the use of a lottery, a first- come/first-serve model, a rolling basis, and others. Local governments should work with an attorney to determine their specific process for selection if they wish to limit the number of licensed cannabis retailers per 342.13. Local governments are not required to imit the number of licensed cannabis retailers. Local Approval Process (cont.) Local governments are permitted specific authorities for registration refusal and registration suspension, in addition to —and not in conflict with—OCM authorities. Registration and Renewal Refusals Local governments may refuse the registration and/or certification of a license renewal if the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal fee, or has been found in noncompliance in connection with a preliminary or renewal compliance check. Local Registration Suspension (342.22) Local governments may suspend the local retail registration of a cannabis business or hemp business if the business is determined to not be operating in compliance with a local ordinance authorized by 342.13 or if the operation of the business poses an immediate threat to the health and safety of the public. The local government must immediately notify OCM of the suspension if it occurs. OCM will review the suspension and may reinstate the registration or take enforcement action. Expedited Complaint Process (342.13) Per state law, OCM will establish an expedited complaint process during the rulemaking process to receive, review, read, and respond to complaints made by a local unit of government about a cannabis business. Upon promulgation of rules, OCM will publish the complaint process. At a minimum, the expedited complaint process shall require the office to provide an initial response to the complaint within seven days and perform any necessary inspections within 30 days. Within this process, if a local government notifies OCM that a cannabis business poses an immediate threat to the health or safety of the public, the office must respond within one business day. Inspections & Compliance Checks Local governments are permitted specific business inspection and compliance check authorities, in addition to —and not in conflict with—OCM authorities. Inspections and Compliance Checks (342.22) Local governments must conduct compliance checks for cannabis and hemp businesses holding retail registration at least once per Ah calendar year. These compliance checks must verify compliance with age verification 1W procedures and compliance with any applicable local ordinance established pursuant to 342.13. OCM maintains inspection authorities for all cannabis licenses to verify compliance with operation requirements, product limits, and other applicable requirements of Chapter 342. ii//%/11111111\\\ �1 M. W Is M-M-P-Ad.s�J!JJl/fl Municipal Cannabis Stores As authorized in Chapter 342.32, local governments are permitted to apply for a cannabis retail license to establish and operate a municipal cannabis store. State law requires OCM issue a license to a city or county seeking to operate a single municipal cannabis store if the city or county: ((IIIIIIII • Submits required application information to OCM, • Meets minimum requirements for licensure, and • Pays applicable application and license fee. A municipal cannabis store will not be included in the total count of retail licenses issued by the state under Chapter 342. A municipal cannabis store cannot be counted as retail registration for purposes of determining whether a municipality's cap on retail registrations imposed by ordinance. Creating Your Local Ordinance As authorized in 342.13, a local government may adopt a local ordinance regarding cannabis businesses. Establishing local governments' ordinances on cannabis businesses in a timely manner is critical for the ability for local cities or towns to establish local control as described in the law, and is necessary for the success of the statewide industry and the ability of local governments to protect public health and safety. The cannabis market's potential to createJobs, generate revenue, and contribute to economic development at the local and state level is supported through local ordinance work. The issuance of local certifications and registrations to prospective cannabis businesses is also dependent on local ordinances. • Local governments may not prohibit the possession, transportation, or use of cannabis, or the establishment or operation of a cannabis business licensed under state law. • Local governments may adopt reasonable restrictions on the time, place, and manner of cannabis business operations (see Page 11). • Local governments may adopt interim ordinances to protect public safety and welfare, as any studies and/or further considerations on local cannabis activities are being conducted, until January 1, 2025. A public hearing O must be held prior to adoption of an interim ordinance. 000 •� • If your local government wishes to operate a municipal O cannabis store, the establishment and operation of such •� a facility must be considered in a local ordinance. Model Ordinance For additional guidance regarding the creation of a cannabis related ordinance, please reference the addendum in this packet. Additional Resources OCM Toolkit for Local Partners Please visit OCM webpage (mn.gov/ocm/local-governments/) for additional information, including a toolkit of resources developed specifically for local government partners. The webpage will be updated as additional information becomes available and as state regulations are adopted. These resources are also included in the addendum of this packet. Toolkit resources include: • Appendix A: Model Ordinance • Appendix B: Hemp Flower and Hemp -Derived Cannabinoid Product Checklist • Appendix C: Enforcement Notice from the Office of Cannabis Management • Appendix D: Notice to Unlawful Cannabis Sellers Local Organizations There are several organizations who also have developed resources to support local governments regarding the cannabis industry. Please feel free to contact the following for additional resources: • League of Minnesota Cities • Association of Minnesota Counties • Minnesota Public Health Law Center Appendix A,o Model Ordinance Cannabis Model Ordinance The following model ordinance is meant to be used as a resource for cities, counties, and townships within Minnesota. The italicized text in red is meant to provide commentary and notes to jurisdictions considering using this ordinance and should be removed from any ordinance formally adopted by said jurisdiction. Certain items are not required to be included in the adopted ordinance: 'OR' and (optional) are placed throughout for areas where a jurisdiction may want to consider one or more choices on language. Section 1 Administration Section 2 Registration of Cannabis Business Section 3 Requirements for a Cannabis Business (Time, Place, Manner) Section 4 Temporary Cannabis Events Section 5 Lower Potency Hemp Edibles Section 6 Local Government as a Retailer Section 7 Use of Cannabis in Public AN ORDINANCE OF THE (CITY/COUNTY OF ) TO REGULATE CANNABIS BUSINESSES The (city council/town board/county board) of (city/town/county) hereby ordains: Section 1. Administration 1.1 Findings and Purpose (insert local authority) makes the following legislative findings: The purpose of this ordinance is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes (insert local authority) to protect the public health, safety, welfare of (insert local here) residents by regulating cannabis businesses within the legal boundaries of (insert local here). (insert local authority) finds and concludes that the proposed provisions are appropriate and lawful land use regulations for (insert local here), that the proposed amendments will promote the community's interest in reasonable stability in zoning for now and in the future, and that the proposed provisions are in the public interest and for the public good. 1.2 Authority & Jurisdiction A county can adopt an ordinance that applies to unincorporated areas and cities that have delegated authority to impose local zoning controls. (insert local authority) has the authority to adopt this ordinance pursuant to: a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. b) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state -licensed cannabis retail businesses and lower -potency hemp edible retail businesses. c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places. d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning ordinances. Ordinance shall be applicable to the legal boundaries of (insert local here). (Optional) (insert city here) has delegated cannabis retail registration authority to (insert county here). However, (insert city here) may adopt ordinances under Sections (2.6, 3 and 4) if (insert county here) has not adopted conflicting provisions. 1.3 Severability If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby. 1.4 Enforcement The elected body of a jurisdiction can choose to designate an official to administer and enforce this ordinance. The (insert name of local government or designated official) is responsible for the administration and enforcement of this ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. 1.5 Definitions 1. Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this ordinance. 2. Cannabis Cultivation: A cannabis business licensed to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant. harvest cannabis flower from mature plant, package and label immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the office. 3. Cannabis Retail Businesses: A retail location and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, (and/excluding) lower -potency hemp edible retailers. 4. Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. 5. Daycare: A location licensed with the Minnesota Department of Human Services to provide the care of a child in a residence outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day. 6. Lower -potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50. 7. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to as "OCM" in this ordinance. 8. Place of Public Accommodation: A business, accommodation, refreshment, entertainment, recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the public. 9. Preliminary License Approval: OCM pre -approval for a cannabis business license for applicants who qualify under Minn. Stat. 342.17. 10. Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment buildings, and other places of public accommodation. 11. Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23. 12. Retail Registration: An approved registration issued by the (insert local here) to a state - licensed cannabis retail business. 13. School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet the reporting requirements under Minn. Stat. 120A.24. 14. State License: An approved license issued by the State of Minnesota's Office of Cannabis Management to a cannabis retail business. Section 2. Registration of Cannabis Businesses A city or town can delegate authority for registration to the County. A city or town can still adopt specific requirement regarding zoning, buffers, and use in public places, provided said requirements are not in conflict with an ordinance adopted under the delegated authority granted to the County. 2.1 Consent to registering of Cannabis Businesses No individual or entity may operate a state -licensed cannabis retail business within (insert local here) without first registering with (insert local here). Any state -licensed cannabis retail business that sells to a customer or patient without valid retail registration shall incur a civil penalty of (up to $2,000) for each violation. Notwithstanding the foregoing provisions, the state shall not issue a license to any cannabis business to operate in Indian country, as defined in United States Code, title 18, section 1151, of a Minnesota Tribal government without the consent of the Tribal government. 2.2 Compliance Checks Prior to Retail Registration A jurisdiction can choose to conduct a preliminary compliance check prior to issuance of retail registration. Prior to issuance of a cannabis retail business registration, (insert local here) (shall/shall not) conduct a preliminary compliance check to ensure compliance with local ordinances. Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application from OCM, (insert local here) shall certify on a form provided by OCM whether a proposed cannabis retail business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the state fire code and building code. 2.3 Registration & Application Procedure 2.3.1 Fees. (insert local here) shall not charge an application fee. A registration fee, as established in (insert local here)'s fee schedule, shall be charged to applicants depending on the type of retail business license applied for. An initial retail registration fee shall not exceed $500 or half the amount of an initial state license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee. Any renewal retail registration fee imposed by (insert local here) shall be charged at the time of the second renewal and each subsequent renewal thereafter. A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal state license fee under Minn. Stat. 342.11, whichever is less. A medical combination business operating an adult -use retail location may only be charged a single registration fee, not to exceed the lesser of a single retail registration fee, defined under this section, of the adult -use retail business. 2.3.2 Applicotion Submittol. The (insert local here) shall issue a retail registration to a state -licensed cannabis retail business that adheres to the requirements of Minn. Stat. 342.22. (A) An applicant for a retail registration shall fill out an application form, as provided by the (insert local here). Said form shall include, but is not limited to: i. Full name of the property owner and applicant; ii. Address, email address, and telephone number of the applicant; iii. The address and parcel ID for the property which the retail registration is sought; iv. Certification that the applicant complies with the requirements of local ordinances established pursuant to Minn. Stat. 342.13. V. (Insert additional standards here) (B) The applicant shall include with the form: i. the application fee as required in [Section 2.3.1]; ii. a copy of a valid state license or written notice of OCM license p rea p p rova I; iii. (Insert additional standards here) (C) Once an application is considered complete, the (insert local government designee) shall inform the applicant as such, process the application fees, and forward the application to the (insert staff/department, or elected body that will approve or deny the request) for approval or denial. (D) The application fee shall be non-refundable once processed. 2.3.3 Application Approval (A) (Optional) A state -licensed cannabis retail business application shall not be approved if the cannabis retail business would exceed the maximum number of registered cannabis retail businesses permitted under Section 2.6. (B) A state -licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this ordinance. (C) A state -licensed cannabis retail business application that meets the requirements of this ordinance shall be approved. 2.3.4 Annual Compliance Checks. The (insert local here) shall complete at minimum one compliance check per calendar year of every cannabis business to assess if the business meets age verification requirements, as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24] and this/these [chapter/section/ordinances]. The (insert local here) shall conduct at minimum one unannounced age verification compliance check at least once per calendar year. Age verification compliance checks shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult -use cannabis flower, adult -use cannabis products, lower -potency hemp edibles, or hemp -derived consumer products under the direct supervision of a law enforcement officer or an employee of the local unit of government. Any failures under this section must be reported to the Office of Cannabis Management. 2.3.5 Location Change A jurisdiction may decide to treat location changes as a new registration, or alternatively treat a location change as allowable subject to compliance with the rest of the registration process. A state -licensed cannabis retail business shall be required to submit a new application for registration under Section 2.3.2 if it seeks to move to a new location still within the legal boundaries of (insert local here). or If a state -licensed cannabis retail business seeks to move to a new location still within the legal boundaries of (insert local here), it shall notify (insert local here) of the proposed location change, and submit necessary information to meet all the criteria in this paragraph. 2.4 Renewal of Registration The (insert local here) shall renew an annual registration of a state -licensed cannabis retail business at the same time OCM renews the cannabis retail business' license. A state -licensed cannabis retail business shall apply to renew registration on a form established by (insert local here). A cannabis retail registration issued under this ordinance shall not be transferred. 2.4.1 Renewal Fees. The (insert local here) may charge a renewal fee for the registration starting at the second renewal, as established in (insert local here)'s fee schedule. 2.4.2 Rene wol Application. The application for renewal of a retail registration shall include, but is not limited to: • Items required under Section 2.3.2 of this Ordinance. • Insert additional items here 2.5 Suspension of Registration 2.5.1 When Suspension is Warranted. The (insert local here) may suspend a cannabis retail business's registration if it violates the ordinance of (insert local here) or poses an immediate threat to the health or safety of the public. The (insert local here) shall immediately notify the cannabis retail business in writing the grounds for the suspension. 2.5.2 Notification to OCM. The (insert local here) shall immediately notify the OCM in writing the grounds for the suspension. OCM will provide (insert local here) and cannabis business retailer a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days. 2.5.3 Length of Suspension. A jurisdiction can wait for a determination from the OCM before reinstating a registration. The suspension of a cannabis retail business registration may be for up to 30 calendar days, unless OCM suspends the license for a longer period. The business may not make sales to customers if their registration is suspended. The (insert local here) may reinstate a registration if it determines that the violations have been resolved. The (insert local here) shall reinstate a registration if OCM determines that the violation(s) have been resolved. 2.5.4 Civil Penalties. Subject to Minn. Stat. 342.22, subd. 5(e) the (insert local here) may impose a civil penalty, as specified in the (insert local here)'s Fee Schedule, for registration violations, not to exceed $2,000. 2.6 Limiting of Registrations A jurisdiction may choose to set a limit on the number of retail registrations within its boundaries. The jurisdiction may not however, limit the number of registrations to fewer than one per 12,500 residents. (Optional) The (insert local here) shall limit the number of cannabis retail businesses to no fewer than one registration for every 12,500 residents within (insert local legal boundaries here). (Optional) If (insert county here) has one active cannabis retail businesses registration for every 12,500 residents, the (insert local here) shall not be required to register additional state -licensed cannabis retail businesses. (Optional) The (insert local here) shall limit the number of cannabis retail businesses to (insert number <= minimum required). Section 3. Requirements for Cannabis Businesses State Statutes note that jurisdictions may "adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business."A jurisdiction considering other siting requirements (such as a buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis to adopt such restrictions. 3.1 Minimum Buffer Requirements A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis business within a certain distance of schools, daycares, residential treatment facilities, or from an attraction within a public park that is regularly used by minors, including a playground or athletic field. Buffer requirements are optional. A jurisdiction cannot adopt larger buffer requirements than the requirements here in Section 3.1. A jurisdiction should use a measuring system consistent with the rest of its ordinances, e.g. from lot line or center point of lot. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-1,000] feet of a school. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of a day care. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of a residential treatment facility. (Optional) The (insert local here) shall prohibit the operation of a cannabis business within [0-500] feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field. (Optional) The (insert local here) shall prohibit the operation of a cannabis retail business within [X] feet of another cannabis retail business. Pursuant to Minn. Stat. 462.367 subd. 14, nothing in Section 3.1 shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a (school/daycare/residential treatment facility/attraction within a public park that is regularly used by minors) moves within the minimum buffer zone. 3.2 Zoning and Land Use For jurisdictions with zoning, said jurisdiction can limit what zone(s) Cannabis businesses can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot outright prohibit a cannabis business. A jurisdiction should amend their Zoning Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they are permitted, conditional, or interim uses. While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite and are also required to have plans to prevent the visibility of cannabis and hemp -derived products to individuals outside the retail location. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. 3.2.1. Cultivotion. Cannabis businesses licensed or endorsed for cultivation are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Manufacturer. Cannabis businesses licensed or endorsed for cannabis manufacturer are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Hemp Manufacturer. Businesses licensed or endorsed for low -potency hemp edible manufacturers permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Wholesale. Cannabis businesses licensed or endorsed for wholesale are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Retail. Cannabis businesses licensed or endorsed for cannabis retail are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Transportation. Cannabis businesses licensed or endorsed for transportation are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.2.1. Cannabis Delivery. Cannabis businesses licensed or endorsed for delivery are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 3.3 Hours of Operation A jurisdiction may adopt an ordinance limiting hours of operation to the hours between 10 a.m. and 9 p.m., seven days a week. State statute prohibits the sale of cannabis between 2 a.m. and 8 a.m., Monday through Saturday, and between 2 a.m. and 10 a.m. on Sundays. (Optional) Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products between the hours of (insert time here) and (insert time here). 3.4 (Optional) Advertising Cannabis businesses are permitted to erect up to two fixed signs on the exterior of the building or property of the business, unless otherwise limited by (insert local here)'s sign ordinances. Section 4. Temporary Cannabis Events Any individual or business seeking to obtain a cannabis event license must provide OCM information about the time, location, layout, number of business participants, and hours of operation. A cannabis event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government before holding a cannabis event. 4.1 License or Permit Required for Temporary Cannabis Events 4.1.1 License Required. A cannabis event organizer license entitles the license holder to organize a temporary cannabis event lasting no more than four days. A jurisdiction should determine what type of approval is consistent with their existing ordinances for events. A license or permit is required to be issued and approved by (insert local here) prior to holding a Temporary Cannabis Event. 4.1.2 Registration & Application Procedure A registration fee, as established in (insert local here)'s fee schedule, shall be charged to applicants for Temporary Cannabis Events. 4.1.3 Application Submittal & Review. The (insert local here) shall require an application for Temporary Cannabis Events. (A) An applicant for a retail registration shall fill out an application form, as provided by the (insert local here). Said form shall include, but is not limited to: i. Full name of the property owner and applicant; ii. Address, email address, and telephone number of the applicant; iii. (Insert additional standards here) (B) The applicant shall include with the form: the application fee as required in (Section 4.1.2); a copy ofthe OCM cannabis event license application, submitted pursuant to 342.39 subd. 2. The application shall be submitted to the (insert local authority), or other designee for review. If the designee determines that a submitted application is incomplete, they shall return the application to the applicant with the notice of deficiencies. (C) Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the (insert staff/department, or elected body that will approve or deny the request) for approval or denial. (D) The application fee shall be non-refundable once processed. (E) The application for a license for a Temporary Cannabis Event shall meet the following standards: A jurisdiction may establish standards for Temporary cannabis events which the event organizer must meet, including restricting or prohibiting any on -site consumption. If there are public health, safety, or welfare concerns associated with a proposed cannabis event, a jurisdiction would presumably be authorized to deny approval of that event. • Insert standards here (G) A request for a Temporary Cannabis Event that meets the requirements of this Section shall be approved. (H) A request for a Temporary Cannabis Event that does not meet the requirements of this Section shall be denied. The (insert city/town/county) shall notify the applicant of the standards not met and basis for denial. (Optional) Temporary cannabis events shall only be held at (insert local place). (Optional) Temporary cannabis events shall only be held between the hours of (insert start time) and (insert stop time). Section 5. (Optional) Lower -Potency Hemp Edibles A jurisdiction can establish different standards or requirements regarding Low -Potency Edibles. A jurisdiction can consider including the following section and subsections in their cannabis ordinance. 5.1 Sale of Low -Potency Hemp Edibles The sale of Low -Potency Edibles is permitted, subject to the conditions within this Section. 5.2 Zoning Districts If sales are permitted, a jurisdiction can limit what zone(s) the sales of Low -Potency Edibles can take place in. A jurisdiction can also determine if such activity requires a Conditional or Interim Use permit. Low -Potency Edibles businesses are permitted as a (type of use) in the following zoning districts: • (Insert zoning districts use is permitted in here) • (Insert zoning districts use is permitted in here) 5.3 (Optional) Additional Standards 5.3.1 Sales within Municipal Liquor Store. A jurisdiction that already operates a Municipal Liquor Store may sell Low -Potency Edibles within the some store. The sale of Low -Potency Edibles is permitted in a Municipal Liquor Store. 5.3.2 Age Requirements. A jurisdiction is able to restrict the sale of Low -Potency Edibles to locations such as bars. The sale of Low -Potency Edibles is permitted only in places that admit persons 21 years of age or older. 5.3.3 Beverages. The sale of Low -Potency Hemp Beverages is permitted in places that meet requirements of this Section. 5.3.4 Storage of Product. A jurisdiction is able to set requirements on storage and sales of Low -Potency Edibles. Low -Potency Edibles shall be sold behind a counter, and stored in a locked case. Section 6. (Optional) Local Government as a Cannabis Retailer (insert local here) may establish, own, and operate one municipal cannabis retail business subject to the restrictions in this chapter. The municipal cannabis retail store shall not be included in any limitation of the number of registered cannabis retail businesses under Section 2.6. (insert local here) shall be subject to all same rental license requirements and procedures applicable to all other applicants. Section 7 Use in Public Places No person shall use cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products in a public place or a place of public accommodation unless the premises is an establishment or an event licensed to permit on -site consumption of adult -use. Appendix 8: Hemp Flower and Hemp - Derived Cannabinoid Product Checklist M MINNeSOTA Office of Cannabis Management Department of Health Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Minnesota Statute 18K.02, Definitions Minnesota Statute 152.0264, Cannabis Sale Crimes Minnesota Statute 152.01, Subdivision 9 Minnesota Statute 342.09, Personal Adult Use of Cannabis Minnesota Statute 151.72, Sale of Certain Cannabinoid Products Question Yes No Comments Additional Information Business License and Registration Compliance Is the business registered with All businesses selling hemp -derived cannabinoid products must the Minnesota Department of be registered. See Hemp -Derived Cannabinoid Products Health? (www.health.state.mn.us/people/cannabis/edibles/index.html) If the business offers on -site Local authorities issue on -site consumption licenses. These are consumption, do they have a required for all businesses permitting on -site consumption of liquor license? THC. Product Compliance — All Products Does the business ensure that all Only persons 21 years of age or older may purchase hemp - sales are made to persons 21 derived cannabinoid products, with the exception of topicals. years old or older? These products may be sold to anyone. Does the business have all edible Businesses must ensure all edible cannabinoid products are cannabinoid products, except secure and inaccessible to customers. beverages, behind the counter or in a locked cabinet? Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Question Yes No Comments Additional Information Only delta-8 and delta-9 are MDH has identified products containing many different allowed for human consumption. intoxicating cannabinoids, such as HHC, THC-O, THC-P, PHC, Does the business sell edibles or delta-10, delta-11, delta-8p, delta-9p, etc. The product must beverages with any other contain only delta-8 and/or delta-9. intoxicating cannabinoids? Does the business sell any edible Edible products that appear similar to candy or snacks products that are similar to a marketed toward or consumed by children are not allowed. product marketed to or consumed by children? Does the label on the edible or All products must include the warning label "Keep out of reach beverage state "Keep out of of children." reach of children"? Is the manufacturer's name, If not, the product is not in compliance. address, website, and contact phone number included on the label or provided through a QR code? Does the QR code on the product All products must be tested by batch in an independent, bring the user to a Certificate of accredited laboratory. The results must include the Analysis on the website, which cannabinoid profile. includes the name of the independent testing laboratory, cannabinoid profile, and product batch number? Does the label on the product The label must indicate the potency by individual serving as indicate the cannabinoids by well as in total. serving and in total? Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Question Yes No Comments Additional Information Does the label on the product Health claims are not permitted on hemp or cannabis products make any claim the product unless approved by the FDA. At this time, there is not an offers any kind of health benefit? approved statement. Does the label on the product The manufacturer cannot claim the product will provide any state that the product does not health benefit unless the product has been formally approved claim to diagnose, treat, cure or by the FDA. prevent any disease? Does the business sell CBD (or Non -intoxicating cannabinoids may only be sold in the form of other forms of cannabidiol) in an edible, beverage, or topical. Therefore, softgels and tablets the form of a softgel, tablet, or cannot be sold. Tinctures must be labeled as either an edible or tincture? beverage and comply with the edible or beverage requirements. Product Compliance — Edibles Does the edible product contain Edibles may not exceed 5 mg delta-8 and/or delta-9 per more than 5 mg delta-8 and/or serving. delta-9 per serving? Does the edible product Edibles may not exceed 50 mg total delta-8 or delta-9 per package/container contain more package. The edible cannot contain any other form of THC or than 50 mg total THC (delta-8 intoxicating cannabinoid. and/or delta-9)? Are all the edible product's Edible product servings must be clearly distinguished on the servings clearly marked, product. Bulk products that require the consumer to measure wrapped, or scored on the are not allowed. product? Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Question Yes No Comments Additional Information Does the business sell any edible Edibles in shapes that appeal to children are not allowed. products in the shape of bears, worms, fruits, rings, ribbons? Is the edible product in a child- All edibles must be in a container that is child -resistant and proof, tamper -evident, opaque tamper evident. If the container is clear, the business must container? place the edible into an opaque bag at the point of sale. Clear bags are not allowed. Product Compliance - Beverages Does the beverage product Beverages may not exceed 5 mg delta-8 and/or delta-9 per contain more than 5 mg delta-8 serving. or delta-9 per serving? Does the beverage product Beverages cannot exceed two servings, regardless of the THC contain more than 2 servings? potency. Is the beverage product in an If the beverage is in a clear container, the business must place opaque container? the beverage in an opaque bag at the point of sale. Product Compliance — Smokables (non -flower) Does the business sell vapes, pre- A product's certificate of analysis will show the concentration rolls, dabs, or other smokable of THC the product contains. The certificate typically is found products which contain more through the QR code on the product package. In MDH's than 0.3% THC? experience, most vapes contain 50% - 90%+ THC. Pre -rolls may consist of raw hemp flower. These products are not regulated by 151.72. However, if a pre -roll is labeled as "infused" or "coated" have additional cannabinoids applied to the material, of which the product typically exceeds the 0.3% THC limit. Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Question Yes No Comments Additional Information Does the business sell vapes, pre- MN Statutes do not allow any cannabinoid, other than delta-8 rolls, dabs, or other smokeable or delta-9, to be sold if the cannabinoid is intended to alter the products that contain other structure or function of the body. HHC is a cannabinoid known intoxicating cannabinoids, such to have potency greater than THC. as HHC? Does the business sell vapes, pre- Non -intoxicating cannabinoids cannot be smoked, vaped, or rolls, dabs, or other smokable inhaled. products which contain CBD? Product Compliance — Flower Does the business sell raw hemp Raw hemp flower must contain 0.3% or less of delta-9 on a dry flower? weight basis. Products exceeding 0.3% delta-9 dry weight are marijuana, and are illegal for sale. THC-A is the non psychoactive precursor to delta-9. Once heated THC-A converts to delta-9. In that process some amount of THC-A is lost. To determine whether, once heated, the hemp flower will exceed the allowable 0.3% of delta-9, one can use a decarboxylation formula which takes into account the conversion of THC-A into delta-9. That formula is as follows: Total THC = (0.877 X THC-A) + d-9 THC) Raw flower must include a certificate of analysis to show testing below 0.3% delta-9. A lack of a certificate of analysis would constitute an illegal sale. Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Question Yes No Comments Additional Information A certificate of analysis showing that under the decarboxylation formula that delta-9 would exceed the 0.3%threshold would also indicate the flower is cannabis and not hemp and therefore being sold illegally. Product Compliance — On -Site Consumption If the business offers on -site The business may not pour out or remove an edible from its consumption, do they serve the original packaging. edible or beverage in its original packaging? If the business offers on -site The business may not mix cannabis -infused products with consumption, do they mix a alcohol. cannabis -infused beverage with alcohol? If the business offers on -site Products which have been removed from their original consumption, do they permit packaging cannot be removed from the premises by the customers to remove from the customer. premises products which have been removed from their original packaging? NOTE: If a person suspects that a hemp -derived cannabinoid product is being sold in violation of Minnesota law, they can use the complaint form at Submitting Hemp -Derived Cannabinoid Product Complaints (www.health.state.mn.us/people/cannabis/edibles/complaints.html). Hemp Flower and Hemp -Derived Cannabinoid Product Checklist Appendix C: Enforcement Notice from the Office of Cannabis Management nri MINNeSOTA OFFICE OF CANNABIS MANAGEMENT Enforcement Notice from the Office of Cannabis Management Dear Registered Hemp Derived Cannabinoid Business: The Office of Cannabis Management (OCM), established in 2023, is charged with developing and implementing the operational and regulatory systems to oversee the cannabis industry in Minnesota as provided in Minnesota Statutes Chapter 342. When Minnesota legalized the sale of adult -use of cannabis flower, cannabis products, and lower -potency hemp edibles/ hemp -derived consumer products, the Minnesota Legislature included statutory provisions, Minnesota Statutes, chapter 152.0264, making the sale of cannabis illegal until a business is licensed by OCM. The Office of Cannabis Management has not yet issued licenses for the cultivation, manufacture, wholesale, transportation or retail sale of cannabis, therefore any retail sales of cannabis products, including cannabis flower, are illegal. The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM, inspectors from MDH will begin to examine any flower products being sold during their regular inspections to determine whether they are indeed hemp flower or cannabis flower. In distinguishing between hemp and cannabis flower, OCM, consistent with federal rules and regulations related to hemp under 7 CFR 990.1, will consider the total concentration of THC post- decarboxylation, which is the process by which THC-A is converted into Delta-9 to produce an intoxicating effect. The examination of raw flower products will include reviewing the certificate of analysis for compliance in several areas, including: Compliance with the requirement that raw flower listed for sale includes a Certificate of Analysis (COA). Products for sale without a COA will constitute an illegal sale. A COA that affirms concentrations of 0.3% or less of Delta-9 on a dry weight basis. Products exceeding 0.3% Delta-9 dry weight are considered marijuana and are therefore illegal to sell. A COA that confirms that the total levels of Delta-9 and THC-A after the decarboxylation process do not exceed 0.3%. A COA that indicates the raw flower will exceed 0.3 percent Delta-9 post-decarboxylation, or a subsequent test conducted by an independent laboratory utilized by OCM that confirms Delta-9 in excess of 0.3 percent will be considered illegal. Minnesota Statutes, Chapter 342 governs Minnesota's cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 prohibits the retail sale of cannabis flower and cannabis products "without a license issued under this chapter that authorizes the sale." Enforcement Notice To date, the Office of Cannabis Management has not issued any cannabis licenses, applications for licenses are expected to be available in the first half of 2025. As such, selling cannabis is a clear violation of law. Be aware that under Minnesota Statutes, 342.09, subdivision 6, OCM may assess fines in excess of a $1 million for violations of this law. Likewise, under Minnesota Statutes, chapter 342.19, OCM is empowered to embargo any product that it has "probable cause to believe ... is being distributed in violation of this chapter or rules adopted under this chapter[.]" Furthermore, violations of law may be considered in future licensing decisions made by OCM. As inspectors enter the field, we encourage you to review the products you are currently selling to ensure they fall within the thresholds outlined above. If you have any questions related to the products you are selling, please send an email to cannabis.info@state.mn.us. Thank you for your attention to this matter. Charlene Briner Interim Director Office of Cannabis Management Enforcement Notice Appendix D: Notice to Unlawful Cannabis Sellers nri MINNeSOTA OFFICE OF CANNABIS MANAGEMENT Notice to Unlawful Cannabis Sellers This notice is to inform you that your current course of action may run afoul of Minnesota law, and continuing this course of action may result in civil actions and potential criminal prosecution. To avoid such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of cannabis and cannabis products. Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota's cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter 342.09, subdivision 4 (www. revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale of cannabis flower and cannabis products "without a license issued under this chapter that authorizes the sale." To date the Office of Cannabis Management has not issued any retail, or other, cannabis licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a $1,000,000 for violations of this law. Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM is empowered to embargo any product that it has "probable cause to believe ... is being distributed in violation of this chapter or rules adopted under this chapter[.]" It is believed that products attempted to be sold at your retail location might be distributed in violation of the law, and would therefore be subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2 (www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM "shall release the cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower -potency hemp edible, or hemp -derived consumer product when this chapter and rules adopted under this chapter have been complied with or the item is found not to be in violation of this chapter or rules adopted under this chapter." While Minnesota has legalized the sale of adult -use of cannabis flower, cannabis products, lower -potency hemp edibles, or hemp -derived consumer products, the legislature did add new statutory provisions, Minnesota Statutes, chapter 152.0264 (www. revisor.mn.gov/statutes/cite/152.0264), making illegal the unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation, manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of the limits in 152.0264 is illegal. If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that the sale of those products is consistent with Minnesota Statutes, chapter 151.72 (www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your business be registered with the Commissioner of Health, and that all products are in compliance with the relevant statutes. Finally, in addition to the state laws outlined above, please be aware that any retail location must be in compliance with local government ordinances and zoning requirements. OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to ensure a safe and legal cannabis market. In order to avoid the above -described actions, all attempts to open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased. c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Authorizing Resolution 15760 for the Sale of General Obligation Bonds, Series Agenda Item: 2024A Department: Finance LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Nick Anhut from Ehlers will present the 2024 pre -sale report for the issuance of General Obligation bonds with a total estimated par value of $2,265,000. The bonds will fund the following roadway and infrastructure improvement projects: 1) Franklin Street (5th Avenue to Washington Avenue) 2) Oakland Avenue SE (Echo Drive to Jefferson Street) 3) Washington Avenue (Lynn Road to Franklin Street) 4) Michael's Court The first step in this process is for council to authorize a resolution to move forward with providing a bond issuance to finance the improvement costs. Once the resolution is approved, Ehlers, who is the City's financial advisor, will initiate the process. Ehlers will compile documents with city staff assistance, coordinate a bond rating call with city staff and solicit competitive bids on behalf of the City. The proposed Debt Issuance Schedule is provided within the Pre -Sale Report which accompanies this board action form. The bond sale will be awarded to the winning bidder at the September 24 council meeting and the bond proceeds are expected to be received in late October. The debt will be repaid by the City's debt tax levy and special assessments levied against benefiting property owners. BOARD ACTION REQUESTED: Approve Resolution 15760 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 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 CERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on August 27, 2024, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. _15760_ RESOLUTION PROVIDING FOR THE SALE OF GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 27th day of August, 2024. (SEAL) Matt Jaunich City Administrator 4856-2325-9095\2 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. _15760_ RESOLUTION PROVIDING FOR THE SALE OF GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A A. WHEREAS, the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue the City's General Obligation Street Reconstruction and Improvement Bonds, Series 2024A (the "Bonds"), in the approximate principal amount of $2,265,000, pursuant to Minnesota Statutes, Chapters 429 and 475 and Section 475.58, subdivision 3b, to finance various public improvement and street reconstruction projects and to pay costs of issuance of the Bonds; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the Bonds in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9). NOW, THEREFORE, BE IT RESOLVED by the Council of the City, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to assist the City in the sale of the Bonds. 2. Meeting, Proposal Opening. The City Council shall meet at 5:30 p.m. on September 24, 2024, or on such other date and time as the Council deems appropriate, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. 4. Staff Authorizations. City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution. 4856-2325-9095\2 Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. City Administrator 4856-2325-9095\2 August 27, 2024 PRE -SALE REPORT FOR City of Hutchinson, Minnesota $2,265,000 General Obligation Street Reconstruction and Improvement Bonds, Series 2024A EHL E RS PUBLIC FINANCE ADVISORS Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, MN 55113 Advisors: Nick Anhut, Senior Municipal Advisor Bruce Kimmel, Senior Municipal Advisor BUILDING COMMUNITIES. IT'S WHAT WE DO. BUILDING COMMUNITIES. IT'S WHAT WE DO. infoa,ehlers-inc.com 1 (800) 552-1171 www.ehiers-inc.com Proposed Issue: $2,265,000 General Obligation Street Reconstruction and Improvement Bonds, Series 2024A (the "Bonds") Purposes: The proposed issue includes tax-exempt, fixed-rate financing for the city's various 2024 street improvement projects net of utility and municipal state aid contributions. Inclusive of estimated financing costs, the Bonds sizing will be allocated as follows: • $1,090,000 Improvement Bonds Portion. Debt service will be paid from a combination of special assessments and taxes. • $1,175,000 Street Reconstruction Plan Bonds Portion. Debt service will also be paid from a combination of special assessments and taxes. Authority: The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. The Bonds are being issued pursuant to Minnesota Statutes, Chapters: • 429 (Improvement Bonds) • 475.58, subd. 3b (Street Reconstruction Plan Bonds) Under the provisions of M.S. Chapter 429, because the City is assessing at least 20% of the improvement project costs, the Bonds can be a general obligation without a referendum and will not count against the City's debt limit. Under M.S. Section 475.58, the City may issue Street Reconstruction Plan Bond for designated projects after approval at a public hearing and 30-day petition period. The City Council held the hearing March 26, 2024 and no petition was filed. The Street Reconstruction Portion of the Bonds will count against the City's Statutory Net Debt Limit which is equivalent to 3.0% of the estimated market value of taxable property in the City. Including this issue, the City will have $10.2 million of outstanding debt subject to the limit, leaving $34.9 million in debt limit capacity remaining. Term/Call Feature: The Bonds are being issued for a term of 15 years, four months. Principal on the Bonds will be due on February 1 in the years 2026 through 2040. Interest will be due every six months beginning August 1, 2025. The Bonds will be offered with a call provision allowing for prepayment at the discretion of the City starting February 1, 2033 or any date thereafter. Presale Report August 27, 2024 City of Hutchinson, Minnesota Page 1 Bank Qualification: Because the City is expecting to issue no more than $10,000,000 in tax exempt debt during the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. Bank qualified status broadens the market, which can result in lower interest rates. Rating: The City's most recent bond issues were rated by S&P Global Ratings. The current rating on those bonds is "AA-". The City will request a new evaluation to apply that rating to the Bonds. If the winning bidder on the Bonds elects to purchase bond insurance within the parameters of their bid, the rating for the issue may be higher than the City's bond rating in the event that the credit rating of the insurer is higher than that of the City. Method of Sale/Placement: We are recommending the Bonds be issued as municipal securities and offered through a competitive underwriting process. The process will solicit competitive bids, which we will compile on your behalf, for the purchase of the Bonds from underwriters and banks. An allowance for discount bidding will be incorporated in the terms of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Bonds are purchased at a price greater than the minimum bid amount (maximum discount), the unused allowance may be used to reduce the final borrowing amount. Premium Pricing: In some cases, investors in municipal bonds prefer "premium" pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the investor, requiring a price paid that is greater than the face value of the bonds. The sum of the amounts paid in excess of face value is considered "reoffering premium." The underwriter of the bonds will retain a portion of this reoffering premium as their compensation (the "discount" mentioned above) but will pay the remainder of the premium to the City in the form of additional bond proceeds for the projects. The amount of the premium varies, but it is not uncommon to see premiums for new issues in the range of 2.00% to 10.00% of the face amount of the issue. This means that an issuer with a $2,000,000 offering may receive bids that result in proceeds of $2,040,000 to $2,200,000. Ehlers will identify appropriate premium restrictions for the Bonds intended to achieve the City's objectives for this financing. For this issue of Bonds we have been directed to use the any net premium to reduce the size of the issue to correspond with the funding needs of the projects. The resulting adjustments may slightly change the calculation of the true interest cost of the final issue amount, but will not change the pricing of the original bid. Presale Report August 27, 2024 City of Hutchinson, Minnesota Page 2 Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no viable refunding opportunities to consider adding to the bond issue at this time. We will continue to monitor the market and the call dates for the City's outstanding debt and will alert you to any future refunding opportunities as they arise. Continuing Disclosure: The City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually, as well as providing notices of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board (the "MSRB"), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds and uses Ehlers to prepare and file the reports. Arbitrage Monitoring: The City must ensure compliance with certain sections of the Internal Revenue Code and Treasury Regulations ("Arbitrage Rules") throughout the life of the issue to maintain the tax- exempt status of the Bonds. Arbitrage Rules apply to amounts held in construction, reserve, debt service account(s), etc., along with related investment income on each fund/account. IRS audits will verify compliance with rebate, yield restriction and records retention requirements within the Arbitrage Rules. The City's specific arbitrage responsibilities will be detailed in the Signature, No -Litigation, Arbitrage Certificate and Purchase Price Receipt (the "Tax Compliance Document") prepared by your Bond Attorney and provided at closing. The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1) small issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4) investments yield restrictions, or 5) de minimis rules. An Ehlers arbitrage expert will contact the City within 30 days after the sale date to review the City's specific responsibilities within the Tax Compliance Document for the Bonds. Investment of Bond Proceeds: Subject to the Arbitrage Rules and Tax Compliance Document mentioned above, the City may maximize the funding opportunity for its projects by temporarily investing the proceeds until the funds are needed to pay for construction expenditures. The City expects to utilize its designated investment advisor under the objectives of the City's investments practices. As a Registered Investment Advisor, Ehlers will be standing by and available to assist the City in developing a strategy if needed. Risk Factors: Special Assessments: The initial sizing assumes the city will levy $384,355 of special assessments for collection starting in 2025. If the City receives a significant amount of pre- paid assessments or subsequently changes the amount, it may need to adjust the debt service levy to make up for changes to the expected amount of assessment revenues. Presale Report August 27, 2024 City of Hutchinson, Minnesota Page 3 Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. Fees charged by these service providers will be paid from proceeds of the obligation, unless you notify us that you wish to pay them from other sources. Our pre -sale bond sizing includes a good faith estimate of these fees, but the final fees may vary. If you have any questions pertaining to the identified service providers or would like to use a different service provider for any of the listed services please contact us. Bond Counsel: Dorsey & Whitney LLP Paying Agent: Bond Trust Services Corporation Rating Agency: S&P Global Ratings (S&P) Basis for Recommendation: Based on our advisory relationship and the City's communicated objectives, financial situation, experience with the issuance of municipal securities, financial capacity, the tax status considerations related to the Bonds and the structure, timing and other similar matters related to the Bonds, we are recommending the issuance of Bonds as a suitable option to fund the City's 2024 street improvement projects. Summary: The decisions to be made by the City Council are to accept or modify the finance assumptions described in this report in consideration of a resolution provided by the City's bond counsel to schedule a competitive sale to be awarded at the September 24, 2024 city council meeting. Presale Report August 27, 2024 City of Hutchinson, Minnesota Page 4 Pre -Sale Review by City Council: August 27, 2024 Due Diligence Call to Review Official Statement: Week of September 9, 2024 Conference with Rating Agency: September 10, 2024 Distribute Official Statement: By September 13, 2024 City Council Meeting to Award Sale of the Bonds: September 24, 2024 Estimated Closing Date: October 17, 2024 Attachments Estimated Sources and Uses of Funds Estimated Debt Service Schedule and Levy Calculations Nick Anhut, Senior Municipal Advisor (651) 697-8507 Bruce Kimmel, Senior Municipal Advisor (651) 697-8572 Silvia Johnson, Lead Public Finance Analyst (651) 697-8580 Alicia Gage, Senior Financial Analyst (651) 697-8551 Presale Report August 27, 2024 City of Hutchinson, Minnesota Page 5 Hutchinson, Minnesota $2,265,000 GO Street Reconstruction & Improvement Bonds, Series 2024A Issue Summary Assumes Current Market BQ AA- Rates plus 50bps Total Issue Sources And Uses Dated 10/17/2024 1 Delivered 10/17/2024 Street Issue Reconstruction Improvements Summary Sources Of Funds Par Amount of Bonds $1,175,000.00 $1,090,000.00 $2,265,000.00 Total Sources $1,175,000.00 $1,090,000.00 $2,265,000.00 Uses Of Funds Total Underwriter's Discount (1.200%) 14,100.00 13,080.00 27,180.00 Costs of Issuance 31,644.60 29,355.40 61,000.00 Deposit to Project Construction Fund 1,127,480.00 1,044,345.00 2,171,825.00 Deposit to Project Fund 1,775.40 3,219.60 4,995.00 Total Uses $1,175,000.00 $1,090,000.00 $2,265,000.00 2024A GO Bonds - PreSale I Issue Summary 1 8/19/2024 1 11:55 AM *-EHLERS Hutchinson, Minnesota $2,265,000 GO Street Reconstruction & Improvement Bonds, Series 2024A Issue Summary Assumes Current Market BQ AA- Rates plus 50bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 10/17/2024 - - 08/01/2025 - - 63,251.14 63,251.14 - 02/01/2026 115,000.00 3.250% 40,088.75 155,088.75 218,339.89 08/01/2026 - - 38,220.00 38,220.00 - 02/01/2027 145,000.00 3.250% 38,220.00 183,220.00 221,440.00 08/01/2027 - - 35,863.75 35,863.75 - 02/01/2028 150,000.00 3.250% 35,863.75 185,863.75 221,727.50 08/01/2028 - - 33,426.25 33,426.25 - 02/01/2029 150,000.00 3.200% 33,426.25 183,426.25 216,852.50 08/01/2029 - - 31,026.25 31,026.25 02/01/2030 150,000.00 3.200% 31,026.25 181,026.25 212,052.50 08/01/2030 - - 28,626.25 28,626.25 - 02/01/2031 155,000.00 3.250% 28,626.25 183,626.25 212,252.50 08/01/2031 - - 26,107.50 26,107.50 - 02/01/2032 160,000.00 3.450% 26,107.50 186,107.50 212,215.00 08/01/2032 - - 23,347.50 23,347.50 - 02/01/2033 160,000.00 3.450% 23,347.50 183,347.50 206,695.00 08/01/2033 - - 20,587.50 20,587.50 - 02/01/2034 165,000.00 3.500% 20,587.50 185,587.50 206,175.00 08/01/2034 - - 17,700.00 17,700.00 - 02/01/2035 170,000.00 3.650% 17,700.00 187,700.00 205,400.00 08/01/2035 - - 14,597.50 14,597.50 - 02/01/2036 135,000.00 3.700% 14,597.50 149,597.50 164,195.00 08/01/2036 - - 12,100.00 12,100.00 - 02/01/2037 145,000.00 3.800% 12,100.00 157,100.00 169,200.00 08/01/2037 - - 9,345.00 9,345.00 - 02/01/2038 150,000.00 3.900% 9,345.00 159,345.00 168,690.00 08/01/2038 - - 6,420.00 6,420.00 - 02/01/2039 155,000.00 4.000% 6,420.00 161,420.00 167,840.00 08/01/2039 - - 3,320.00 3,320.00 - 02/01/2040 160,000.00 4.150% 3,320.00 163,320.00 166,640.00 Total $2,265,000.00 - $704,714.89 $2,969,714.89 - Yield Statistics Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS Form 8038 $19,119.33 8.441 Years 3.6858758% 3.8280356% 3.8380272% 3.6652027% 4.2370016% Net Interest Cost 3.6858758% Weighted Average Maturity 2024A GO Bonds - PreSale I Issue Summary 1 8/19/2024 1 11:55 AM 8.441 Years i%4EHLERS N PUBLIC FINANCE ADVISORS Hutchinson, Minnesota $1,175,000 GO Street Reconstruction & Improvement Bonds, Series 2024A Street Reconstruction Portion Debt Service Schedule and Levy Calculation Less: Date Principal Coupon Interest Total P+I 105% of Total Assessments Net Levy 02/01/2025 - - - - - - - 02/01/2026 55,000.00 3.250% 53,827.22 108,827.22 114,268.58 19,122.05 95,146.53 02/01/2027 70,000.00 3.250% 39,975.00 109,975.00 115,473.75 18,497.52 96,976.23 02/01/2028 75,000.00 3.250% 37,700.00 112,700.00 118,335.00 17,873.00 100,462.00 02/01/2029 75,000.00 3.200% 35,262.50 110,262.50 115,775.63 17,248.48 98,527.15 02/01/2030 75,000.00 3.200% 32,862.50 107,862.50 113,255.63 16,623.94 96,631.69 02/01/2031 80,000.00 3.250% 30,462.50 110,462.50 115,985.63 15,999.42 99,986.21 02/01/2032 80,000.00 3.450% 27,862.50 107,862.50 113,255.63 15,374.90 97,880.73 02/01/2033 80,000.00 3.450% 25,102.50 105,102.50 110,357.63 14,750.38 95,607.25 02/01/2034 85,000.00 3.500% 22,342.50 107,342.50 112,709.63 14,125.84 98,583.79 02/01/2035 85,000.00 3.650% 19,367.50 104,367.50 109,585.88 13,501.32 96,084.56 02/01/2036 75,000.00 3.700% 16,265.00 91,265.00 95,828.25 - 95,828.25 02/01/2037 80,000.00 3.800% 13,490.00 93,490.00 98,164.50 98,164.50 02/01/2038 85,000.00 3.900% 10,450.00 95,450.00 100,222.50 100,222.50 02/01/2039 85,000.00 4.000% 7,135.00 92,135.00 96,741.75 96,741.75 02/01/2040 90,000.00 4.150% 3,735.00 93,735.00 98,421.75 98,421.75 Total $1,175,000.00 - $375,839.72 $1,550,839.72 $1,628,381.71 $163,116.85 $1,465,264.86 Significant Dates Dated 10/17/2024 First Coupon Date 8/01/2025 Yield Statistics Bond Year Dollars $10,159.44 Average Life 8.646 Years Average Coupon 3.6994121% Net Interest Cost (NIC) 3.8381992% True Interest Cost (TIC) 3.8481876% Bond Yield for Arbitrage Purposes 3.6652027% All Inclusive Cost (AIC) 4.2390112% 2024A GO Bonds - PreSale I Street Reconstruction 1 8/19/2024 1 11:55 AM EHLERS ft PUBLIC FINANCE ADVISORS Hutchinson, Minnesota $128,768 Street Reconstruction Assessments TIC plus 1.00% - Equal Principal Assessments Revenue Date Principal Coupon Interest Total P+I 12/31/2025 12,876.80 4.850% 6,245.25 19,122.05 12/31/2026 12,876.80 4.850% 5,620.72 18,497.52 12/31/2027 12,876.80 4.850% 4,996.20 17,873.00 12/31/2028 12,876.80 4.850% 4,371.68 17,248.48 12/31/2029 12,876.80 4.850% 3,747.14 16,623.94 12/31/2030 12,876.80 4.850% 3,122.62 15,999.42 12/31/2031 12,876.80 4.850% 2,498.10 15,374.90 12/31 /2032 12,876.80 4.850% 1,873.58 14,75038 12/31/2033 12,876.80 4.850% 1,249.04 14,125.84 12/31/2034 12,876.80 4.850% 624.52 13,501.32 Total $128,768.00 - $34,348.85 $163,116.85 Significant Dates Filing Date Fast Payment Date 2024A GO Bonds - Assessme I Street Reconstruction 1 8/19/2024 1 11:54 AM 1/01/2O25 12/31/2025 IiA'EHLERS PUBLIC FINANCE ADVISORS Hutchinson, Minnesota $1,090,000 GO Street Reconstruction & Improvement Bonds, Series 2024A Improvements Portion Debt Service Schedule and Levy Calculation Less: Date Principal Coupon Interest Total P+I 105% of Total Assessments Net Levy 02/01/2025 - - - - - - - 02/01/2026 60,000.00 3.250% 49,512.67 109,512.67 114,988.30 37,954.67 77,033.63 02/01/2027 75,000.00 3.250% 36,465.00 111,465.00 117,038.25 36,715.08 80,323.17 02/01/2028 75,000.00 3.250% 34,027.50 109,027.50 114,478.88 35,475.48 79,003.40 02/01/2029 75,000.00 3.200% 31,590.00 106,590.00 111,919.50 34,235.88 77,683.62 02/01/2030 75,000.00 3.200% 29,190.00 104,190.00 109,399.50 32,996.28 76,403.22 02/01/2031 75,000.00 3.250% 26,790.00 101,790.00 106,879.50 31,756.68 75,122.82 02/01/2032 80,000.00 3.450% 24,352.50 104,352.50 109,570.13 30,517.08 79,053.05 02/01/2033 80,000.00 3.450% 21,592.50 101,592.50 106,672.13 29,277.50 77,394.63 02/01/2034 80,000.00 3.500% 18,832.50 98,832.50 103,774.13 28,037.90 75,736.23 02/01/2035 85,000.00 3.650% 16,032.50 101,032.50 106,084.13 26,798.30 79,285.83 02/01/2036 60,000.00 3.700% 12,930.00 72,930.00 76,576.50 - 76,576.50 02/01/2037 65,000.00 3.800% 10,710.00 75,710.00 79,495.50 79,495.50 02/01/2038 65,000.00 3.900% 8,240.00 73,240.00 76,902.00 76,902.00 02/01/2039 70,000.00 4.000% 5,705.00 75,705.00 79,490.25 79,490.25 02/01/2040 70,000.00 4.150% 2,905.00 72,905.00 76,550.25 76,550.25 Total $1,090,000.00 - $328,875.17 $1,418,875.17 $1,489,818.93 $323,764.85 $1,166,054.08 Significant Dates Dated 10/17/2024 First Coupon Date 8/01/2025 Yield Statistics Bond Year Dollars $8,959.89 Average Life 8.220 Years Average Coupon 3.6705273% Net Interest Cost (NIC) 3.8165113% True Interest Cost (TIC) 3.8265791% Bond Yield for Arbitrage Purposes 3.6652027% All Inclusive Cost (AIC) 4.2347382% 2024A GO Bonds - PreSale I Improvements 18/19/2024 1 11:55 AM EHLERS ft PUBLIC FINANCE ADVISORS Hutchinson, Minnesota $255,587 Improvements Portion Assessments TIC plus 1.00% - Equal Principal Assessments Revenue Date Principal Coupon Interest Total P+I 12/31/2025 25,558.70 4.850% 12,395.97 37,954.67 12/31/2026 25,558.70 4.850% 11,156.38 36,715.08 12/31/2027 25,558.70 4.850% 9,916.78 35,475.48 12/31/2028 25,558.70 4.850% 8,677.18 34,235.88 12/31/2029 25,558.70 4.850% 7,437.58 32,996.28 12/31/2030 25,558.70 4.850% 6,197.98 31,756.68 12/31/2031 25,558.70 4.850% 4,958.38 30,517.08 12/31 /2032 25,558.70 4.850% 3,718.80 29,277.50 12/31/2033 25,558.70 4.850% 2,479.20 28,037.90 12/31/2034 25,558.70 4.850% 1,239.60 26,798.30 Total $255,587.00 - $68,177.85 $323,764.85 Significant Dates Filing Date Fast Payment Date 2024A GO Bonds - Assessme I Improvements 1 8/19/2024 1 11:54 AM 1/01/2O25 12/31/2025 4EHLERS PUBLIC FINANCE ADVISORS c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. First Reading - Ordinance to Vacate Easement - Second Addition to the Meadows Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The purpose of this request is to vacate a drainage and utility easement located along the interior property line of lots 1 & 2, Block 3 of Second Addition to the Meadows. The proposed structure is a duplex, so an easement isn't needed on the interior property line, as the duplex will be built up to the interior property line on each side of the duplex. Additionally, a structure cannot be built on an easement. Nobody from the public spoke regarding this request. There were no comments or questions from the Planning Commission. The Planning Commission voted unanimously (4-0) to recommend approval of the vacation of easement. BOARD ACTION REQUESTED: Approve first reading of vacation of easement for Second Addition to the Meadows. 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 PUBLICATION NO. 8553 ORDINANCE NO. 24-848 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING DRAINAGE AND UTILITY EASEMENT LOCATED IN SECOND ADDITION TO THE MEADOWS THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to vacate drainage and utility easements located in the Second Addition to the Meadows, located at Lots 1 and 2, Block 3. Section 2. That the drainage and utility easements to be vacated are described as follows: The 6 foot wide drainage and utility easements along the east line of Lot 1 and the west line of Lot 2, Block 3, SECOND ADDITION TO THE MEADOWS, according to the record plat thereof, McLeod County, Minnesota. Section 3. This ordinance shall take effect from and after passage and publication. Release of the easement is contingent upon the project occurring. Adopted by the City Council this loth day of September, 2024. ATTEST: Matt Jaunich Gary T. Forcier City Administrator Mayor -for- Bonneville Land b Cattle, LLC .aerze -of- Lots 2 & 3, Block 3, SECOND ADDITION TO THE MEADOWS, McLeod County, Minnesota. LEGEND • DENOTEs IRON MONUMENT FOUND O DENOTES IRON MONUMENT SET 800A DENOTES PROPOSED ELEVATION a,1011.2 DENOTES EXISTING ELEVATION DENOTES DIRECTION OF DRAINAGE DENOTES METAL SPIKE AT OFFSET NOTED DENOTES EXISTING CONTOURS DENOTES PROPOSED CONTOURS * BuRDER TO VERIFY HOUSE DIMENSIONS, SEWER DEPTH AND FOUNDATION DEPTH. .;etas F/ _xaone * DRIVEWAYS ARE SHOWN FOR GRAPHIC PURPOSES ONLY. FINAL DRIVEWAY DESIGN AND LOCATION TO BE DETERMINED BY CONTRACTOR - FINISHED GRADE A03ACENT TO HOME SHALL BE 0.5 FEET BELOW TOP OF BLACK EXCEPT AT DRIVEWAY AND PATIO. Eig ;j NOTES - Feld survey was completed by E.G. Rud and Sons, Inc. on 07/09/24. - Bearings shown are on an assumed datum. - Utilities labeled "PROPOSED UTILITIES" are per Wan by Otto Associates signed 5-31-24. - Curb shots are taken at the top and back of curb. NORTH -"n7 .mn3 l0'1„• r.: y ' .10BY.9 / � \ \� �' ieti0 io 16 w/ ate+iii.i r rr r / s/ �'4 /LOT 1 -'t-`•_..�6 b- / (24,571 2Z/'L. t3 ( / J Jat!iwa 'Pip / / ! I ,iwtsc % > 7A BLOCKRit/ % 3 Y _ LOT 2 I �m B BITUMINOUS I SIDEWALK 'O 7.2395 ........... El DIAL: 70.00 X 78.00 = 104.80 (SLAB ON GRADE) PROPOSED ELEVATIONS TOP OF BLOCK = 1079.6 GARAGE FLOOR = 1079.6 LOWEST FLOOR = 1079.6 TOP OF FOOTING = 1076.1 SPIKIff=91075,.fi5t 1.95 FFE/ IV 21,850 SQ. FT.INV I :/ iO139Ti �'/ y / .aotae I i" DROP�PATIO I . o �O/ i / / 'a I hereby certify that this plan, survey or report was Prepared by DATUM: me or under my direct supervision and that I am a duty Licensed Land Surveyor under the laws of the State of Minnesota. 1f. Minneso nsee No. 45356 Dated 9th day of 3uhVr 2024. Jp�6s i PAINTED OSPOT ON CURB j �S� 1/PUKE-1078.03 i-�LL-1.57 FFE "IN'1 / IL iota.;• = Oy /'Fit .�:•.-� o %•.....___..,. 4 16 FL sunwa I NO.24.0752 REVISIONS SCALE: 1" = 30 DATE: 7 2024 professional 92M 5th Ave DRAWN BY: KDN Hutchinson, TOL 02a) 697-2025 DeskRtPDDN Iin CREW: TBD wr-49n — L-B h HRA 111 Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com HUTCHINSON HOUSING REDEVELOPMENT AUTHORITY (320) 234-4251 e (320) 234-4240 Fax Hutchinson HRA Regular Board Meeting July 16, 2024 Minutes 1. CALL TO ORDER Vice Chair Robin Kashuba called the meeting to order. Members Present: Gary Forcier and Dan Masog. Staff Present: Judy Flemming, Alyssa Summerfield a. Gary Forcier moved to approve the agenda as presented. Dan Masog seconded and the motion carried unanimously. 2. PUBLIC COMMENTS No citizens addressed the HHRA Board of Commissioners. 3. MINUTES OF THE REGULAR BOARD MEETING ON June 18th, 2024 Gary Forcier moved to approve the minutes of he regular board meeting as presented. Dan Masog seconded and the motion carried unanimously. 4. FINANCIAL REPORTS Dan Masog moved to approve the following: a. City Center: 1) Consideration of City Center General Fund payments of $9,879.38 for checks 9435 to 9442 2) Consideration of City Center June 30, 2024 Financial Statements b. Park Towers: 1) Consideration of Park Towers Operating Account payments of $52,552.89 for checks 16411 to16435 and 7/11/2024 Visa Bill 2) Consideration of Park Towers June 30, 2024 Financial Statements Gary Forcier seconded and the motion carried unanimously. 5. PARK TOWERS a. Park Towers July Newsletter b. Park Towers Vacancy Report c. Gary Forcier moved to approve the following: Consideration of Updated VAWA Package and Staff Policy. Dan Masog seconded and the motion carried unanimously. d. Operation Update Judy Flemming gave the board an update on the following: 1) Gary Forcier moved to approve the following: Consideration of awarding detached garage replacement project to TLB Construction LLC. Dan Masog seconded and the motion carried unanimously. 2) RentWise Train -the -Trainer 3) HUD Notice of Contract Administration Change 6. CONSIDERATION OF THE APPROVAL OF CITY HOME REPAIR PROGRAM GRANTS a. Gary Forcier moved to approve the City Rehab Grant: 736 Hassan Street SE. Dan Masog seconded and the motion carried unanimously. L�J HRA iii Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com HUTCHINSON HOUSING REDEVELOPMENT AUTHOR TDV (320) 234-4251 • (320) 234-4240 Fax 7. UPDATE ON ISLAND VIEW CIRCLE HOUSE PROJECT Judy Flemming gave an update on the following: fixing wall damage, hydroseeding, and insurance for the home. 8. COMMUNICATIONS a. FYI: City Strategic Planning Session- Transportation and Mobility b. FYI: May 2024 Hutchinson Housing Market Update c. FYI: MN Homeless Study, A project of the wilder research d. Gary Forcier moved to approve moving the date of September board meeting so HRA staff can attend the NAHRO conference. September board meeting will be moved to Thursday September 1911 at 7:00 a.m. Robin Kashuba seconded and the motion carried unanimously. 9. ADJOURNMENT Gary Forcier moved to adjourn and Dan Masog seconded. There being no other business, Vice Chair Robin Kashuba declared the meeting adjourned. Recorded by Judy Flemming, HRA Executive Director Gary Forc' r, Secretary/Treasurer L�J HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY City Center, I11 Hassan Street SE Hutchinson, MN 55350 Website Site: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax Hutchinson Housing & Redevelopment Authority Annual Board Meeting Tuesday, August 15, 2023 7:30 AM Minutes 1. CALL TO ORDER Members Present: Renee Lynn Johnson Kotlarz, Gary Forcier and Steve Jensen. Staff Present: Judy Flemming and JJ Morgan. Visitor: Dan Mosag. a. The Hutchinson HRA Annual Board Meeting agenda and any agenda additions and/or corrections. Steve Jensen moved to approve the agenda of the Annual Board Meeting as presented. Gary Forcier seconded. The motion carried unanimously. 2. MINUTES OF AUGUST 16, 2022 ANNUAL BOARD MEETING Steve Jensen moved to accept the minutes as written along with the correction of the spelling of Chair Renee's first name. Gary Forcier seconded. The motion carried unanimously. 3. ELECTION OF OFFICERS Steve Jensen moved to nominate Renee Lynn Johnson Kotlarz as Chair, Gary Forcier as Secretary/Treasurer and Robin Kashuba as the Vice Chairman of the HRA Board. Gary Forcier seconded. The motion carried unanimously. 4. 2023 HRA ANNUAL MEETING REPORT Steve Jensen moved to accept the 2023 HRA Annual Meeting Report as presented. Gary Forcier seconded. The motion carried unanimously. 5. ADJOURNMENT Steve Jensen moved to adjourn and Gary Forcier seconded. The motion carried unanimously. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Judy Flemming, HRA Executive Director Gary Forcier, ecretary/Treasurer 191 c. HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. July 2024 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 8/27/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For Council review, attached are the July Financial Reports for the general fund and enterprise funds. Also attached is the July 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 JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - 3,309,308 6,370,436 3,061,128 51.9 3,140,678 5,846,751 53.7 Other Taxes 63,267 147,173 330,000 182,827 44.6 157,733 330,000 47.8 Licenses & Permits 27,403 271,701 392,100 120,399 69.3 223,170 442,100 50.5 Intergovernmental Revenue 1,579,083 1,609,124 2,028,194 419,070 79.3 1,443,954 1,793,941 80.5 Charges for Services 286,938 1,477,787 2,547,142 1,069,355 58.0 1,586,434 2,872,308 55.2 Miscellaneous Revenues 68,101 271,719 353,900 82,181 76.8 271,438 289,800 93.7 Transfers -In 485,657 1,456,971 2,812,628 1,355,657 51.8 1,428,402 2,724,536 52.4 Fines & Forfeitures 2,887 29,117 55,000 25,883 52.9 29,746 55,000 54.1 TOTAL REVENUES 2,513,336 8,572,899 14,889,400 6,316,501 57.6 8,281,555 14,354,436 57.7 Wages & Benefits 935,401 5,450,672 10,050,414 4,599,742 54.2 5,372,800 9,672,602 55.5 Supplies 118,788 767,859 1,072,833 304,974 71.6 620,245 986,823 62.9 Services & Charges 463,804 1,843,897 2,867,722 1,023,825 64.3 1,532,740 2,827,889 54.2 Miscellaneous Expenses 59,922 200,321 381,400 181,079 52.5 188,789 373,500 50.5 Transfers -Out - 58,516 517,031 458,516 11.3 56,811 488,622 11.6 Capital Outlay - 838 - (838) - 24,718 5,000 494.4 TOTAL EXPENDITURES 1,577,915 8,322,103 14,889,400 6,567,297 55.9 7,796,103 14,354,436 54.3 NET REVENUE 935,420 250,797 - (250,797) 485,453 - Comments Charges for Services This revenue category is lower than last year due to the hospital security program being discontinued, resulting in $191,800 less revenue when comparing the two years. Supplies This expense category is higher due to the City taking over the airport FBO duties. With that, the City is purchasing fuel for resale at the airport. The fuel purchased to date totals $97,250 and was not budgeted. The revenue associated with the fuel sales shows up in the Charges for Services revenue category. Services & Charges This expense category is higher due Contract Repair & Maintenance costs running high in several departments but mainly for street repairs and waterpark repairs. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 ACTUALS JULY General Fund Expense by Department YTD 2024 2023 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 2,834 20,896 47,477 26,581 44.0 21,087 50,087 42.1 City Administrator 45,748 297,164 519,041 221,877 57.3 265,191 486,246 54.5 Elections 3,193 12,891 29,850 16,959 43.2 - - - Finance Department 36,774 282,482 427,823 145,341 66.0 247,982 406,320 61.0 Motor Vehicle 28,467 194,959 338,131 143,172 57.7 175,568 299,947 58.5 Assessing - - 61,499 61,499 - - 61,478 - Legal 24,774 165,941 329,055 163,114 50.4 162,485 325,697 49.9 Planning 14,594 100,630 181,040 80,410 55.6 93,378 170,925 54.6 Information Services 69,667 321,064 619,744 298,680 51.8 315,537 584,601 54.0 City Hall Building 20,497 115,916 202,295 86,379 57.3 108,435 201,625 53.8 Police Department 319,626 2,285,976 4,210,713 1,924,737 54.3 2,151,774 3,711,079 58.0 Hospital Security - - - - - 196,173 373,964 52.5 Emergency Management 2,324 18,236 13,500 (4,736) 135.1 10,479 16,980 61.7 Safety Committee - 10,807 13,950 3,143 77.5 11,813 12,000 98.4 Fire Department 61,116 227,917 447,485 219,568 50.9 254,273 410,444 62.0 Protective Inspections 31,251 246,357 397,864 151,507 61.9 188,751 359,241 52.5 Engineering 41,542 260,628 479,881 219,253 54.3 230,077 505,473 45.5 Streets & Alleys 268,357 1,157,959 1,777,633 619,674 65.1 984,363 1,677,692 58.7 Park/Recreation Administration 33,003 162,086 280,458 118,372 57.8 151,151 263,811 57.3 Recreation 19,317 139,392 225,861 86,469 61.7 132,647 232,197 57.1 Senior Citizen Center 4,981 44,283 79,564 35,281 55.7 34,313 84,861 40.4 Civic Arena 24,323 205,690 413,137 207,447 49.8 216,937 407,734 53.2 Park Department 122,714 687,017 1,187,993 500,976 57.8 663,008 1,145,736 57.9 Recreation Building 22,270 159,127 280,335 121,208 56.8 150,623 281,230 53.6 Events Center 14,109 90,451 151,082 60,631 59.9 89,724 171,156 52.4 Evergreen Building 3,516 18,445 35,080 16,636 52.6 17,210 34,880 49.3 Library 3,718 121,202 247,865 126,663 48.9 120,071 244,216 49.2 Waterpark 157,726 323,329 467,082 143,753 69.2 280,275 457,647 61.2 Cemetery 14,861 92,085 153,077 60,992 60.2 86,007 151,085 56.9 Airport 31,056 187,819 129,260 (58,559) 145.3 97,331 143,905 67.6 Unallocated General Expense 155,560 371,352 1,141,625 770,273 32.5 339,439 1,082,179 31.4 TOTAL EXPENDITURES 1,577,915 8,322,103 14,889,400 6,567,297 55.9 7,796,103 14,354,436 54.3 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 761,397 4,344,649 7,708,000 3,363,351 56.4 4,227,915 7,281,000 58.1 Miscellaneous Revenues 117 1,863 10,500 8,637 17.7 1,484 10,500 14.1 TOTAL REVENUES 761,514 4,346,512 7,718,500 3,371,988 56.3 4,229,399 7,291,500 58.0 Cost of Sales 575,452 3,277,465 5,852,000 2,574,535 56.0 3,206,226 5,504,000 58.3 Wages & Benefits 73,666 505,420 924,229 418,809 54.7 495,768 904,864 54.8 Supplies 8,611 18,163 25,500 7,337 71.2 15,653 25,500 61.4 Services & Charges 31,190 152,770 308,150 155,380 49.6 159,494 298,750 53.4 Miscellaneous Expenses 5,750 5,750 6,500 750 88.5 5,945 6,700 88.7 Transfers -Out - - 550,000 550,000 - - 550,000 - CapitalOutlay 6,797 81,965 100,000 18,035 82.0 8,204 15,000 54.7 Depreciation Expense - - 58,000 58,000 - - 61,000 - TOTAL EXPENDITURES 701,466 4,041,535 7,824,379 3,782,844 51.7 3,891,289 7,365,814 52.8 NET REVENUE 60,049 304,978 (105,879) (410,857) 338,110 (74,314) Year to Date Sales July Sales Comments 2024 2023 Change 2024 2023 Change Liquor Sales Revenue: Liquor 1,639,994 1,575,358 4.1% 272,877 256,046 6.6% Beer 1,985,001 2,001,796 -0.8% 356,892 350,402 1.9% Wine 534,873 531,600 0.6% 95,729 97,623 -1.9% THC Products 73,865 3,183 2220.7% 15,408 1,618 852.4% Other 110,916 115,978 -4.4% 20,491 20,785 -1.4% Total Sales 4,344,649 4,227,915 2.8% 761,397 726,474 4.8% Gross Profit $1,067,184 $1,021,689 $185,945 $198,048 Gross Margin on Sales 24.6% 24.2% 0.4% 24.4% 27.3% -2.8% Customer Count 139,011 137,020 1.5% 22,847 22,476 1.7% Average Sale per Customer $31.25 $30.86 1.3% $33.33 $32.32 3.1% Labor to Sales Ratio 11.6% 11.7% -0.1 % 9.7% 9.6% 0.1 % Capital Outlay The 2024 expenditures include budgeted upgrades to the cashier counters and cabinetry. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Water Fund Sales 121,208 752,082 1,675,000 922,918 44.9 870,730 1,840,000 47.3 Sales - Other 85,109 596,701 1,006,000 409,299 59.3 608,995 614,000 99.2 Local Sales Tax 89,665 442,953 1,057,000 614,047 41.9 495,567 1,012,000 49.0 Charges for Services 2,645 87,518 88,668 1,150 98.7 62,260 71,685 86.9 Miscellaneous Revenues 21,279 106,027 114,500 8,473 92.6 80,731 44,500 181.4 TOTAL REVENUES 319,906 1,985,281 3,941,168 1,955,887 50.4 2,118,284 3,582,185 59.1 Wages & Benefits 55,203 367,961 631,441 263,480 58.3 341,216 579,848 58.8 Supplies 95,408 351,649 244,225 (107,424) 144.0 119,796 185,800 64.5 Services & Charges 46,581 275,046 599,400 324,354 45.9 237,506 561,885 42.3 Miscellaneous Expenses 129 11,634 13,500 1,866 86.2 9,010 13,500 66.7 Transfers -Out - - 90,000 90,000 - - 70,000 - CapitalOutlay 40,880 113,513 982,310 868,797 11.6 169,690 902,876 18.8 Depreciation Expense - - 1,120,000 1,120,000 - - 1,090,000 - Debt Service 21,300 131,714 1,366,550 1,234,836 9.6 137,172 1,371,173 10.0 TOTAL EXPENDITURES 259,501 1,251,517 5,047,426 3,795,909 24.8 1,014,390 4,775,082 21.2 NET of REVENUES & EXPENDITURES 60,406 733,764 (1,106,258) (1,840,022) 1,103,894 (1,192,897) Year to Date Water Sales Comments 2024 2023 Change Water Sales Revenue: Residential 490,004 565,173 -13.3% Commercial 143,158 160,462 -10.8% Industrial 118,920 145,096 -18.0% Water Sales 752,082 870,730 -13.6% Base Charge 482,884 450,087 7.3% Water Connection Charge 35,840 40,250 -11.0% Other 77,977 118,658 -34.3% Other Sales 596,701 608,995 -2.0% Water usage is down in 2024 compared to 2023 due mainly to the wet summer and reduced demand for irrigation water. Local Sales Tax This revenue is lower than last year due to a change in the state's payment timing. We actually are trending up 6% but collecting the revenue a month later than previously received. Supplies The expense category has already exceeded the budget due to purchasing meters for the meter replacement project. The project was budgeted under Capital Outlay but more approriately expensed under Supplies. 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 JULY 31, 2024 2024 ACTUALS JULY YTD 2024 2023 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 229,692 1,591,745 2,875,000 1,283,255 55.4 1,715,963 2,750,000 62.4 85,730 642,131 1,031,500 389,369 62.3 589,427 549,000 107.4 69,034 341,135 815,000 473,865 41.9 398,325 810,000 49.2 - 5,600 6,000 400 93.3 5,800 6,000 96.7 4,561 10,116 7,500 (2,616) 134.9 2,130 7,500 28.4 31,172 160,193 176,000 15,807 91.0 127,731 93,500 136.6 420,188 2,750,919 4,911,000 2,160,081 56.0 2,839,376 4,216,000 67.3 70,307 466,384 892,971 426,587 52.2 443,914 813,235 54.6 16,222 140,442 297,600 157,158 47.2 127,018 279,200 45.5 111,631 580,137 840,650 260,513 69.0 355,088 855,920 41.5 5,500 21,296 36,000 14,704 59.2 19,155 36,000 53.2 - - 110,000 110,000 - - 80,000 - 606,124 755,867 2,410,249 1,654,382 31.4 567,116 1,638,085 34.6 - - 1,200,000 1,200,000 - - 1,136,000 - 58,000 616,681 1,609,355 992,675 38.3 560,006 1,557,895 35.9 TOTAL EXPENDITURES 867,784 2,580,808 7,396,825 4,816,017 34.9 2,072,297 6,396,335 32.4 NET of REVENUES & EXPENDITURES (447,595) 170,111 (2,485,825) (2,655,936) 767,078 (2,180,335) Year to Date Sewer Sales Comments 2024 2023 Change Wastewater Sales Revenue: Residential 911,171 975,297 -6.6% Commercial 275,392 289,786 -5.0% Industrial - Flow 225,938 247,880 -8.9% Industrial - Violation Surcharges 179,243 203,000 -11.7% Sewer Sales 1,591,745 1,715,963 -7.2% Base Charge 527,613 481,894 9.5% Sewer Connection Charge 47,104 50,600 -6.9% Other 67,414 56,932 18.4% Other Sales 642,131 589,427 8.9% Local Sales Tax This revenue is lower than last year due to a change in the state's payment timing. We actually are trending up 6% but collecting the revenue a month later than previously received. Services & Charges This expense category is trending higher than 2023, partially due to higher than expected Sewer Line Repairs for customers. The program expenses are severely exceeding the monthly revenue we collect of $1 per month per account. Expenses to date total $93,625 compared to $35,630 of revenues. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 116,584 799,360 1,352,000 552,640 59.1 755,052 1,285,000 58.8 Sales - Other 4,033 27,654 46,100 18,446 60.0 26,378 45,000 58.6 Intergovernmental Revenue 4,099 13,515 21,500 7,985 62.9 27,044 12,500 216.3 Miscellaneous Revenues 6,443 30,248 30,000 (248) 100.8 32,294 15,000 215.3 TOTAL REVENUES 131,159 870,776 1,449,600 578,824 60.1 840,767 1,357,500 61.9 Wages & Benefits 27,458 188,002 337,416 149,414 55.7 139,161 343,101 40.6 Supplies 1,597 32,222 60,750 28,528 53.0 23,854 62,850 38.0 Services & Charges 88,995 496,870 969,000 472,130 51.3 488,454 897,590 54.4 Miscellaneous Expenses 79 1,439 1,150 (289) 125.1 832 750 110.9 Transfers -Out - - 55,000 55,000 - - 55,000 - CapitalOutlay 3,653 126,301 817,500 691,199 15.4 6,538 1,018,482 0.6 Depreciation Expense - - 172,000 172,000 - - 172,000 - TOTAL EXPENDITURES 121,780 844,834 2,412,816 1,567,982 35.0 658,839 2,549,773 25.8 NET of REVENUES & EXPENDITURES 9,379 25,942 (963,216) (989,158) 181,928 (1,192,273) Comments Capital Outlay The 2024 capital expenditures are due to the Source Separate process improvement project. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund Sales 92,487 2,140,906 2,620,300 479,394 81.7 2,040,740 2,939,400 69.4 Charges for Services 1,204 7,233 95,500 88,267 7.6 895 97,000 0.9 Miscellaneous Revenues 11,298 40,800 52,000 11,200 78.5 47,269 32,000 147.7 TOTAL REVENUES 104,989 2,188,940 2,767,800 578,860 79.1 2,088,904 3,068,400 68.1 Cost of Sales 76,238 1,427,143 1,759,400 332,257 81.1 1,421,359 2,158,000 65.9 Inventory Cost Adjustment (62,638) (268,081) (703,528) (435,447) 38.1 (337,081) (657,750) 51.2 Wages & Benefits 59,384 441,584 888,535 446,951 49.7 437,370 838,147 52.2 Supplies 6,638 65,260 149,500 84,240 43.7 46,597 162,500 28.7 Services & Charges 9,212 83,807 287,500 203,693 29.2 139,882 304,980 45.9 Miscellaneous Expenses 2,734 7,928 13,500 5,572 58.7 6,030 11,000 54.8 Transfers -Out - - 120,000 120,000 - - 120,000 - CapitalOutlay 2,386 47,368 197,000 149,632 24.0 5,873 349,652 1.7 Depreciation Expense - - 290,000 290,000 - - 290,000 - Debt Service - 70,992 73,808 2,816 96.2 69,646 73,808 94.4 TOTAL EXPENDITURES 93,954 1,876,001 3,075,715 1,199,714 61.0 1,789,676 3,650,337 49.0 NET of REVENUES & EXPENDITURES 11,035 312,939 (307,915) (620,854) 299,229 (581,937) Year to Date Sales Comments 2024 2023 Change Compost Sales Bagged 1,778,944 1,804,210 -1.4% Bulk 226,800 107,107 111.7% Other (Freight) 135,163 129,423 4.4% Total Sales 2,140,906 2,040,740 4.9% Gross Profit 713,763 619,381 Gross Margin 33.3% 30.4% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JULY 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT JULY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 92,150 641,965 1,097,000 455,035 58.5 620,599 1,065,000 58.3 Sales - Other 674 4,207 3,500 (707) 120.2 2,730 3,500 78.0 Intergovernmental Revenue - 59,120 - (59,120) - - - - Licenses & Permits 600 3,015 5,500 2,485 54.8 5,356 5,500 97.4 Miscellaneous Revenues 5,211 23,062 26,300 3,238 87.7 23,707 15,300 154.9 TOTAL REVENUES 98,636 731,370 1,132,300 400,930 64.6 652,391 1,089,300 59.9 Wages & Benefits 24,059 167,022 311,298 144,276 53.7 159,032 308,906 51.5 Supplies 3,681 16,081 51,350 35,269 31.3 16,190 53,625 30.2 Services & Charges 18,244 110,461 223,375 112,914 49.5 139,830 208,535 67.1 Miscellaneous Expenses 2,259 4,725 6,000 1,275 78.7 2,292 10,000 22.9 Transfers -Out - - - - - - - - CapitalOutlay 467,145 467,145 247,293 Depreciation Expense - - 255,000 255,000 - - 275,000 - Debt Service 14,465 172,867 187,480 14,613 92.2 166,451 221,589 75.1 TOTAL EXPENDITURES 62,707 471,156 1,501,648 1,030,492 31.4 483,795 1,324,948 36.5 NET of REVENUES & EXPENDITURES 35,929 260,213 (369,348) (629,561) 168,596 (235,648) Comments Intergovernmental Revenue This revenue category includes MPCA grant monies related to the storm water resiliency project costs. City of Hutchinson Investment Report For the Month Ended July 31, 2024 Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturity Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnings CERTIFICATES OF DEPOSIT: American Express Natl Bank 08/04/2022 08/12/2024 3.350% Fixed $245,000 $245,000 $0 $244,853 -$147 $8,208 Manufacturers & Traders Trust 11/28/2022 12109/2024 4.900% Fixed 244,000 244,000 0 243,788 -212 11,956 Sallie Mae Bank/Salt Lake 12107/2021 12116/2024 1.000% Fixed 245,000 245,000 0 241,222 -3,778 2,450 Merrick Bank 01/23/2020 01/31/2025 1.800% Fixed 245,000 245,000 0 241,105 -3,896 4,410 Axos Bank San Diego 02/28/2020 03/26/2025 1.650% Fixed 245,000 245,000 0 239,740 -5,260 4,043 Forbright Bank 08/31/2022 09/16/2025 3.500% Fixed 245,000 245,000 0 241,585 -3,415 8,575 First Citizens Bk & Tr Co Raleigh 10/26/2022 10/25/2025 4.700% Fixed 244,000 244,000 0 243,805 -195 11,468 Regions Bank Birmingham AL 10/28/2019 10/31/2025 2.000% Fixed 245,000 245,000 0 236,910 -8,090 4,900 Flushing Bank Primary 10/26/2022 11/04/2025 4.700% Fixed 245,000 245,000 0 244,919 -81 11,515 Ally Bk Sandy Utah 11/02/2022 11/10/2025 4.800% Fixed 244,000 244,000 0 244,100 100 11,712 Toyota Financial Sgs Bk 07/14/2021 07/22/2026 0.950% Fixed 245,000 245,000 0 228,592 -16,408 2,328 Synchrony Bank 09/01/2022 09/09/2027 3.500% Fixed 245,000 245,000 0 238,537 -6,463 8,575 Discover Bank DE 11/16/2022 11/30/2027 4.900% Fixed 242,000 242,000 0 245,790 3,790 11,858 Morgan Stanley Bank NA 03/10/2023 03/16/2028 4.800% Fixed 244,000 244,000 0 247,665 3,665 11,712 Affinity Bank 03/15/2023 03/17/2028 4.900% Fixed 195,000 195,000 0 198,697 3,697 9,555 Customers Bank 06/07/2023 06/14/2028 4.500% Fixed 244,000 244,000 0 245,647 1,647 10,980 Thread Bank Rogers TN O6/07/2023 06/16/2028 4.400% Fixed 245,000 245,000 0 252,490 7,490 10,780 Univest Bank & Trust Co 06/02/2023 06/21/2028 4.500% Fixed 245,000 245,000 0 246,769 1,769 11,025 CIBC Bk USA O6/16/2023 06/30/2028 4.450% Fixed 244,000 244,000 0 250,939 6,939 10,858 Providence Bk Rocky Mt NC 08/03/2023 08/21/2028 4.400% Fixed 249,000 249,000 0 250,098 1,098 10,956 United Roosevelt Savings 09/06/2023 09/12/2028 4.500% Fixed 249,000 249,000 0 255,992 6,992 11,205 Central Fe S&L/Cicero IL 09/06/2023 09/14/2028 4.500% Fixed 249,000 249,000 0 251,072 2,072 11,205 Community Bk & Tr Waco TX 11/01/2023 11/10/2028 5.050% Fixed 243,000 243,000 0 250,181 7,181 12,272 Liberty First Credit Union 01/23/2024 01/30/2029 4.150% Fixed 249,000 249,000 0 247,825 -1,175 10,334 Morgan Stanley Private Bank 02/28/2024 03/06/2029 4.350% Fixed 244,000 244,000 0 244,761 761 10,614 Carter Bank & Trust 03/08/2024 03/20/2029 4.300% Fixed 245,000 245,000 0 245,372 372 10,535 Mizrahi Tefahot Bank/LA 03/26/2024 03/07/2030 4.500% Fixed 244,000 244,000 0 247,174 3,174 10,980 CBC Federal Credit Union 05/03/2024 05/14/2031 4.650% Fixed 249,000 249,000 0 255,514 6,514 11,579 Total CDs $6,817,000 $6,817,000 $0 $6,825,141 $8,141 $266,588 MUNICIPAL BONDS: Commerce Bank of Southwe 07/14/2016 08/01/2024 3.000% Fixed $500,000 $526,595 $26,595 $500,000 -$26,595 $15,000 Honolulu City & Cnty HI 10/28/2019 08/01/2024 1.832% Fixed 1,000,000 996,000 -4,000 1,000,000 4,000 18,320 Connecticut State 07/09/2019 08/15/2024 2.400% Fixed 570,000 568,906 -1,094 569,282 376 13,680 New York City Transition 11/10/2015 11/01/2024 2.600% Callable 500,000 486,750 -13,250 496,615 9,865 13,000 Elk Grove Village IL 10/28/2021 01/01/2025 1.000% Fixed 150,000 150,000 0 147,524 -2,477 1,500 Oregon St Hsg & Cmnty Svcs Dept 10/19/2022 01/01/2025 4.659% Callable 355,000 354,677 -323 354,386 -291 16,539 July 31, 2024 Palm Beach FL Revenue Chaska MN EDA Lease Revenue Virginia St Clg Bldg Authority Miami -Dade Cnty FL Transit Sales Austin TX Cmnty Clg Jobsohio Beverage Sys Stwd Oklahoma City OK Econ Dev Trust New York St Urban Dev Dorp Anchor Bay MI School Dist Phoenix Az Civic Impt Corp San Juan CA Unif Sch Dist District of Columbia Rev District of Columbia Rev Phoenix Az Civic Impt Corp Indiana St Fin Authority Rev NY Personal Income Tax Pima County AZ Revenue Wisconsin St Gen Fund Rev Pima County AZ Revenue New York NY City Transitional New York NY City Transitional Wisconsin St Gen Fund Rev Albertville AL Middlesex County NJ California St New York NY City Transitional Palm Beach Cnty Fla Connecticut State Palm Beach Cnty Fla Virginia Sts Pub Bldg Santa Clara Valley CA Total Municipal Bonds FEDERAL BONDS: Federal Home Loan Bank Total Federal Bonds MONEY MARKET FUNDS: Money Market - Citizens Bank Money Market - Oppenheimer Total Money Market Funds Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturity Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnings 12/06/2019 01/01/2025 2.500% Fixed $460,000 $469,752 $9,752 $454,705 -$15,047 $11,500 02/03/2020 02/01/2025 3.430% Fixed 300,000 323,256 23,256 297,495 -25,761 10,290 09/22/2022 02/01/2025 4.250% Fixed 570,000 570,000 0 567,355 -2,645 24,225 11/19/2021 07/01/2025 0.900% Fixed 375,000 373,013 -1,988 361,223 -11,790 3,375 04/27/2022 08/01/2025 0.992% Fixed 245,000 229,482 -15,518 235,445 5,963 2,430 04/27/2022 01/01/2026 2.034% Fixed 310,000 298,815 -11,185 298,152 -663 6,305 02/08/2022 03/01/2026 1.118% Fixed 300,000 292,833 -7,167 283,350 -9,483 3,354 08/26/2022 03/15/2026 3.170% Fixed 190,000 187,925 -2,075 185,265 -2,660 6,023 07/01/2020 05/01/2026 1.250% Fixed 500,000 503,630 3,630 470,755 -32,875 6,250 12/10/2021 07/01/2026 1.157% Fixed 135,000 134,150 -851 126,607 -7,542 1,562 11/09/2021 08/01/2026 1.201% Fixed 140,000 140,000 0 130,889 -9,111 1,681 01/18/2023 06/01/2027 4.232% Callable 350,000 349,734 -266 348,873 -861 14,812 02/14/2023 06/01/2027 4.232% Callable 400,000 397,684 -2,316 398,712 1,028 16,928 03/30/2022 07/01/2027 1.257% Fixed 175,000 161,088 -13,913 160,060 -1,027 2,200 01/27/2023 07/15/2027 4.109% Fixed 1,000,000 1,000,000 0 993,360 -6,640 41,090 12/09/2022 09/15/2027 5.051% Fixed 300,000 308,277 8,277 303,480 -4,797 15,153 11/09/2022 12/01/2027 5.382% Fixed 1,000,000 1,014,580 14,580 1,030,040 15,460 53,820 02/21/2023 05/01/2028 4.330% Fixed 500,000 497,905 -2,095 500,245 2,340 21,650 11/22/2023 12/01/2028 5.961% Fixed 175,000 183,171 8,171 185,743 2,573 10,432 07/05/2023 02/01/2029 4.750% Callable 385,000 385,920 920 390,336 4,416 18,288 02/14/2024 02/01/2029 4.430% Callable 375,000 375,000 0 375,349 349 16,613 03/13/2024 05/01/2029 4.346% Fixed 500,000 497,905 -2,095 501,035 3,130 21,730 01/19/2024 06/01/2029 4.900% Fixed 235,000 241,103 6,103 239,639 -1,464 11,515 09/13/2023 08/15/2029 4.603% Fixed 250,000 248,115 -1,885 252,723 4,608 11,508 10/24/2023 10/01/2029 5.100% Fixed 200,000 199,788 -212 206,918 7,130 10,200 12/05/2023 11/01/2029 5.050% Fixed 300,000 308,451 8,451 308,763 312 15,150 12/15/2023 12/01/2029 4.150% Fixed 265,000 263,614 -1,386 262,655 -959 10,998 04/12/2024 05/15/2030 4.657% Fixed 140,000 140,000 0 141,449 1,449 6,520 06/28/2024 06/01/2030 4.500% Fixed 740,000 740,000 0 748,910 8,910 33,300 05/24/2024 08/01/2030 4.830% Fixed 340,000 343,196 3,196 348,510 5,314 16,422 07/11/2024 06/01/2031 4.400% Fixed 300,000 299,103 -897 298,191 -912 13,200 $14,530,000 $14,560,416 $30,416 $14,474,037-$86,379 $516,563 09/28/2021 10/26/2026 1.180% Callable $500,000 $500,000 $0 $465,360-$34,640 $5,900 $500,000 $500,000 $0 $465,360-$34,640 $5,900 Current Rate: 4.850% N/A $16,757,414 $16,757,414 $0 $16,757,414 $0 $812,735 Current Rate: 5.090% N/A $41,103 $41,103 $0 $41,103 $0 $2,092 $16,798,517 $16,798,517 $0 $16,798,517 $0 $814,827 TOTALS $38,645,517 $38,675,933 $30,416 $38,563,055-$112,878 $1,603,878 City of Hutchinson Investment Report For the Month Ended July 31, 2024 CITY'S PORTFOLIO BY PRODUCT TYPE CITY'S MATURITY SCHEDULE Par Value Current Municipal Federal Total Total % of Total Value Year CD's Bonds Bonds Par Value % CDs $6,817,000 17.6% $6,825,141 2024 $734,000 $2,570,000 $0 $3,304,000 15.1% Municipal Bonds $14,530,000 37.6% $14,474,037 2025 $1,713,000 $2,455,000 $0 $4,168,000 19.1% Federal Bonds $500,000 1.3% $465,360 2026 $245,000 $1,575,000 $500,000 $2,320,000 10.6% Money Market $16,798,517 43.5% $16,798,517 2027 $487,000 $3,225,000 $0 $3,712,000 17.0% Total $38,645,517 100.0% $38,563,055 2028 $2,407,000 $675,000 $0 $3,082,000 14.1% Unrealized Gain/ -Loss -$112,878 2029 $738,000 $2,510,000 $0 $3,248,000 14.9% Prior Year Unrealized Gain / -Loss -$306,970 2030 $244,000 $1,220,000 $0 $1,464,000 6.7% Investment Gain / -Loss for 2024 $194,092 2031 $249,000 $300,000 $0 $549,000 2.5% Totals $6,817,000 $14,530,000 $500,000 $21,847,000 97.5% $5,000,000 Money Market ' $4,000,000 , $3,304,000 $4168 000 $3,712.000 $3,248,000 43.5% $3,082,000 Municipal Bonds $3,000,000 $2,320,000 37.6% $2,000,000 $1,000,000 Federal Bonds $0 1.3% 2024 2025 2026 2027 2028 2029 2030 2031 FINANCIAL INDICES: One -Year Comparison Treasury Yield Curve 7/31/2024 7/31/2023 Change Federal Lending Rate 5.50% 5.50% 0.00% 6.00% Prime Rate 8.50% 8.50% 0.00% 5.00% Treasury Rates: 1-Year 4.73% 5.37% -0.64% 4.00% • 2-Year 4.29% 4.88% -0.59% 3.00% 3-Year 4.10% 4.51% -0.41% 5-Year 3.97% 4.18% -0.21% 2.00% 10-Year 4.09% 3.97% 0.12% 1.00% 20-Year 4.44% 4.22% 0.22% 0.00% City's Average Coupon Rate 3.61% 2.99% 0.62% 1-Year 2-Year 3-Year 5-Year 10-Year 20-Year Average Yield to Maturity 4.43% 5.25% -0.82% t7/31/2024 t7/31/2023 (excluding Money Market funds)