HomeMy WebLinkAboutcp12-23-25HUTCHINSON CITY COUNCIL
MEETING AGENDA
TUESDAY, DECEMBER 23, 2025
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: Ciiypolicy andpractices, inputfrom constituents,
and other questions or information that has not yet been presented or discusseddregarding 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 —
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
PUBLIC COMMENTS
(This 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 ifnot apublic 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) Truth in Taxation Hearing of December 4, 2025
(b) Special Meeting of December 9, 2025
(c) Regular Meeting of December 9, 2025
CONSENT AGENDA
(The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
7. APPROVAL OF CONSENT AGENDA
(a) Consideration for Approval of 2026 License Renewals
(b) Consideration for Approval of 2026 Invocation Schedule
(c) Consideration for Approval of Board Appointments/Reappointments
1. Reappointment of Troy Pullis to Hutchinson Utilities Commission to December 2030
2. Appointment of Fred Haffley to Senior Advisory Board to January 2029
3. Appointment of Tom Wiprud to Senior Advisory Board to January 2029
(d) Consideration for Approval of Resolution No. 15969 — Resolution in Support for Greater
Minnesota Transportation Alternatives Grant
CITY COUNCIL AGENDA —December 23, 2025
(e) Consideration for Approval of Resolution No. 15971— Resolution Approving State Airport Fund
Grant Agreement With MNDOT for Snow Removal Equipment Building Project
(f) Consideration for Approval of Engineering Services Agreement with Apex Engineering Group
for School Road SW and McLeod County CSAH 7 Corridor Study Phase 1
(g) Consideration for Approval of Joint Powers Agreement With McLeod County for Reclamite
Road Treatment Project at McLeod County Fairgrounds
(h) Consideration for Approval of Airport South Hangar and Taxiway Repair
(i) Consideration for Approval of Update to Exhibit A of Employee Uniform & Clothing Policy
0) Claims, Appropriations and Contract Payments
PUBLIC HEARINGS — 5:30 P.M. - NONE
COMMUNICATIONS REQUESTS AND PETITIONS
(T e purpose o t is portion o the agenda is to provide the ounci with information necessary to craft wise policy.
Includes items like monthly or annual reports and communications from other entities.)
8. PRESENTATION OF MNDOT MERIT AWARD FOR OUTSTANDING PERFORMANCE ON THE
DALE STREET SW PROJECT
9. REVIEW OF COUNCIL MEMBER APPOINTMENTS TO CITY BOARDS AND COMMISSIONS
UNFINISHED BUSINESS
10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-868 — AN
ORDINANCE TO REZONE PROPERTY AT 552,554 and 564 JEFFERSON STREET SE WITH
FAVORABLE PLANNING COMMISSION RECOMMENDATION
NEW BUSINESS
11. APPROVE/DENY COMMUNITY SOLAR PROJECTS
12. APPROVE/DENY RESOLUTION NO. 15966 — RESOLUTION ACCEPTING QUOTE AND
AWARDING CONTRACTS FOR ROBERTS PARK LIGHTING PROJECT UNDERGROUND
ELECTRICAL INSTALLATION
13. APPROVE/DENY RESOLUTION NO. 15970 — RESOLUTION RATIFYING ACTION TAKEN
BY THE CITY ADMINISTRATOR PERTAINING TO PFAS CHEMICALS
14. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-870 — AN ORDINANCE
AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO KASAL HOLDINGS LLC
2
CITY COUNCIL AGENDA —December 23, 2025
15. APPROVE/DENY RESOLUTION NO. 15968 - RESOLUTION ADOPTING ATTACHMENT E
OF THE CITY OF HUTCHINSON EMPLOYEE HANDBOOK — PERSONNEL POLICY
CREATING THE MINNESOTA PAID LEAVE POLICY
16. APPROVE/DENY 2026 ENTERPRISE FUND BUDGETS
a) Resolution No.
15952
— Resolution Approving 2026 Liquor Fund Budget
b) Resolution No.
15953
—Resolution Approving 2026 Water Fund Budget
Resolution No.
15954
— Resolution Approving 2026 Wastewater Fund Budget
d) Resolution No.
15955
— Resolution Approving 2026 Stormwater Fund Budget
ic)
e) Resolution No.
15956
— Resolution Approving 2026 Refuse Fund Budget
f) Resolution No.
15957
— Resolution Approving 2026 Compost Fund Budget
17. APPROVE/DENY RESOLUTION NO. 15958 — RESOLUTION ADOPTING 2026 GENERAL
FUND BUDGET
18. APPROVE/DENY RESOLUTION NO. 15959 — RESOLUTION ADOPTING THE 2026
GENERAL FUND AND DEBT SERVICE FINAL TAX LEVIES
19. APPROVE/DENY RESOLUTION NO. 15963 - RESOLUTION ADOPTING 2026
COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID
20. APPROVE/DENY RESOLUTION NO. 15964 - RESOLUTION ADOPTING 2026 SEASONAL/
TEMPORARY/PART-TIME COMPENSATION PLAN, PAY LEVEL TABLE AND PAY
SCHEDULE
21. APPROVE/DENY RESOLUTION NO. 15965 — RESOLUTION AMENDING PAID ON -CALL
FIREFIGHTER COMPENSATION PLAN
22. APPROVE/DENY RESOLUTION NO. 15967 — ADOPTING THE 2026 CITY OF HUTCHINSON
FEE SCHEDULE
23. APPROVE/DENY RESOLUTION NO. 15960 — RESOLUTION ADOPTING 2026 HRA FINAL
TAX LEVY
24. APPROVE/DENY RESOLUTION NO. 15961 — RESOLUTION ADOPTING 2026 EDA FINAL
TAX LEVY
25. APPROVE/DENY FIVE YEAR CAPITAL IMPROVEMENT PLAN
26. APPROVE/DENY ESTABLISHMENT OF MASONIC WEST RIVER CAMPGROUND HOST
PROGRAM
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)
27. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
a) City of Hutchinson Financial Report and Investment Report for November 2025
b) PRCE Board Minutes from November 3 and December 1, 2025
c) Hutchinson Utilities Commission Minutes from October 29 and November 26, 2025
CITY COUNCIL AGENDA —December 23, 2025
MISCELLANEOUS
28. STAFF UPDATES
29. COUNCIL/MAYOR UPDATE
ADJOURNMENT
MINUTES
CITY COUNCIL
TRUTH IN TAXATION HEARING
DECEMBER 4, 2025
CALL TO ORDER — 6:00 P.M.
Members Present: Mayor Gary Forcier, Pat May, Tim Burley, Dave Sebesta and
Chad Czmowski.
Others present: Matt Jaunich, City Administrator and Andy Reid, Finance Director.
TRUTH IN TAXATION HEARING
Mayor Forcier opened the hearing at 6:00 p.m.
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich
explained the budget process the City has used to date. Four work sessions have been
held over the past seven months. The Council adopted the preliminary budget and tax
levy in September and recently truth in taxation notices were mailed to all City
property owners. Mr. Jaunich explained the purpose for tonight's hearing is to
enhance public participation in the property tax system by allowing a public forum to
discuss the budget, discuss the proposed tax levy, explain the budget and tax levy
increases and hear public comments and questions on the budget and tax levy. If the
hearing needs to be continued it will be continued at the next Council meeting on
December 9, 2025, and the final budget and tax levy is expected to be adopted by the
Council on December 23, 2025. Mr. Jaunich noted that at tonight's hearing the
Council discusses the City's share of citizens' total 2026 proposed tax bill, not
property valuations. Mr. Jaunich explained that property valuation open book
meetings are held in May/June by McLeod County. Mr. Jaunich briefly explained
valuations and noted that the market value of a property is determined by January 2 of
the year prior to the year in which taxes on that property are due. Therefore, market
values for taxes payable in 2026 were set in January 2025. Property values on
statements recently received are based off of home sales from October of 2023 to
September of 2024. Property owners will receive new notices of market values from
the assessor in March/April of 2026. Questions on valuations should be addressed in
May/June with the County Assessor/County Board.
Mr. Jaunich explained that the preliminary tax levy set in September showed a City
tax increase of 9.2% and included a balanced budget. The revised budget has reduced
the tax levy increase to 6.9% while maintaining a balanced budget. The City has
adjusted its revenue and expense projections and eliminated roughly $214,243 in
taxes since its preliminary budget was adopted in September.
Hutchinson's 2025 average City tax rate ranked the second lowest in McLeod
County, however ranked in the average range amongst other outstate regional centers.
The state-wide city average tax rate is 62.59% and Hutchinson is at 56.53%.
Hutchinson is the fourth lowest of all outstate regional centers for the poverty level,
P highest of all outstate regional centers for median household income, 5 b highest of
all outstate regional centers for median home value and is the third lowest of all
outstate regional centers in LGA payments. The 2026 state-wide proposed property
tax increase of cities is 8.7% and the 2026 state-wide proposed property tax increase
for all taxing agencies is 6.9%. Mr. Jaunich provided data on the price of government
for the City of Hutchinson related to enterprise funds and governmental funds.
Mr. Jaunich noted that there are 14 reasons property taxes vary from year to year.
These include: the market value of property may change; the market value of other
properties in the taxing district may change, shifting taxes from one property to
another; the State general property tax may change; the city budget and levy may
change; the Township budget and levy may change; the County budget and levy may
change; the School District's budget and levy may change; a Special District's budget
and levy may change; special assessments may be added to a property tax bill; voters
may have approved a school, city/township, county or special district referendum,
federal and state mandates have changed; aid and revenue from the state and federal
governments may have changed; the state legislature may have changed the portion of
the tax base paid by different types of properties; and other state law change may
adjust the tax base. Mr. Jaunich also reviewed Minnesota's property tax system and
how it is based off of five components, those being: local property tax levies (city,
school district, county, etc.), property tax classification rates (ranges from 0.25% to
2.0% - set by the state) property value (based off of property sales and is set by the
county assessor), tax credits (only certain properties get this) and state general tax (set
by the state and assigned to mainly commercial/industrial properties). Hutchinson's
property tax rate is set by taking the city's tax levy and dividing it by its total tax
capacity. Tax capacity is determined by multiplying a property's market value by its
classification rate. Each property rate is assigned a classification rate depending on
its use by the State Legislature. Properties associated with income production
(commercial & industrial) have a higher classification weight than other properties.
The City's total tax capacity is an accumulation of all parcels within the city, minus
adjustments. Mr. Jaunich also explained how the City's portion of a proposed tax bill
is determined.
Mr. Jaunich shared four options that the Council is considering for the tax levy that
range from a 0% increase to a 6.9% increase. Mr. Jaunich noted that with the
proposed 6.9% levy increase that means a $60.00/year increase on a home valued at
$275,000. Again, this is the City's portion of the tax statement. Mr. Jaunich also
explained the homestead exclusion and market value history. He noted that the State
adjusted the Homestead Market Value Exclusion amounts upwards to address rising
residential property values. The increased MVHE will result in a lower Net Tax
Capacity and ultimately a higher tax rate than under the prior HMVE. Mr. Jaunich
shared information on market value growth since 2017 with the commercial/industrial
type seeing the biggest change. Mr. Jaunich reviewed the entities that share a
Hutchinson tax bill those being the County, the School (operating), the School (debt),
the City, the EDA, the HRA and Region 6E.
Mr. Jaunich then reviewed the City's mission statement and seven core areas of
focus, which include public safety; health & recreation; transportation; economic
development; environment, good government and housing.
Mr. Jaunich reviewed the proposed tax levies for 2026 which includes a 6.9%
increase for the City's portion and a 1.7% increase for the EDA levy and a 1.8%
increase for the HRA levy, for a total tax impact increase of 6.7%. The statewide
preliminary average levy for cities is at an 8.7% increase and the overall preliminary
statewide increase is at 6.9%. Mr. Jaunich reviewed the 2026 debt levy and the tax
levy comparison since 2018. The proposed 2026 tax levy includes the eleventh
straight year of an increase in the general fund portion of the levy. The proposed
2026 tax levy includes the fifth straight year of an increase to the debt fund portion of
the levy (2.5%). Compared to 2016, the City's total tax levy has increased by 46.5%.
The average annual tax levy increase since 2016 has been 3.9%. The 2026 total tax
levy accounts for a per capita tax of $696, which is up from $656 in 2025.
Mr. Jaunich provided additional information on the City's tax rate such as: 1.) The
City's growth in tax capacity (2.7%) has slowed down, increasing the pressure on tax
rates; 2.) This will be the third time that the tax levy (6.9%) outpaces the tax capacity
in 11 years, resulting in a likely increased city tax rate; 3.) The median home value
would see a $60 city tax bill increase, based on their home value remaining steady at
$275,000 (aproperty possibly might not see a city tax increase if its value does not
increase at the same rate as the median home value or its value decreases). A
property valued at $275,000 in 2025 with the same value in 2026 would see a $60
increase in its city tax bill. Mr. Jaunich also provided data on the 10-year tax rate
trend.
Mr. Jaunich reviewed the general fund revenues and expenses. Mr. Jaunich explained
Oat the general fund revenues include property taxes, other taxes, licenses & permits,
intergovernmental revenue, charges for service, fines & forfeitures, miscellaneous
revenue, and transfers -in. He noted additional facts on general fund revenues which
include: general fund revenues include an 8.6% tax levy increase ($579,872);
property taxes account for approximately 44% of the General Fund Revenues; there
will be no increase in the PILOT payment from HUC for 2026 but there will be an
increase in reimbursement rates for Legal and IT services; there is a minimal increase
in LGA and the Fire & Police Pension Aid; includes a slight increase in building
permit fees ($32,000); $200,914 increase in charges for services (various park and rec
user fee increases, school liaison program, etc.); increase contribution to the general
fund from Water/Sewer/Compost funds of $50,000; transfer -ins account for
$2,862,628 and is equivalent of a 42% tax levy increase (Liquor Fund, Water/Sewer,
Creekside and HUC); and a 1% tax levy increase to the general fund is equivalent to
$67,290. Total general fund expenses are comprised of wages & benefits, supplies,
services & charges, miscellaneous expenses, transfers -out and capital outlay. Public
safety accounts for 33.9% of general fund, 26.1% is general government, 23.6% is
culture and recreation, 13.9% is streets and highway and 2.6% is miscellaneous. Mr.
Jaunich noted the following: wages & benefits increased 6.4% for 2026 which
includes costs for general performance increases, union impacts and staff
timing/allocation changes & minor shifts; 14% increase to health insurance, increase
of $30,501 to account for MN Paid Family Medical Leave; new IT full-time
employee; Waterpark/Recreation Building Manager position that was inadvertently
left out of the 2025 budget, but approved in the 2024 budget; Engineering/Public
Works staffing changes; wages and benefits account for 68% of general fund
expenses; increase in operating supplies to replace outdated equipment at Park & Rec;
increase in contractual R&M for aquatic center/ice rink; additional $25,000 for fleet
funding; and the 2026 budgeted expenses are balanced with revenues. Mr. Jaunich
provided information on the tax levy allocation for each department and the
percentage of expenses covered by fees/taxes/LGA-other.
Mr. Jaunich then reviewed the enterprise funds — consisting of the liquor, compost,
garbage, water, wastewater and stormwater funds. No tax dollars are used to support
any of these funds. Mr. Jaunich noted that the Liquor Hutch and Creekside continue
to do well and will contribute $675,000 to the general fund in 2026. There will be a
5% increase in garbage rates which is the third of probably five straight increases
since 2008. All enterprise funds continue to have healthy fund balances. There will
be a rate increase to stormwater rates of 8%. Transfers to the general fund from the
enterprise funds will be at $920,000 in 2026. Total enterprise money is $2,862,628
when HUC money is included. Mr. Jaunich noted that capital needs are due to the
age of all of the facilities continuing to be a factor.
Mr. Jaunich reviewed the 2026-2030 capital improvement plan. The capital
improvement plan is made up of infrastructure, enterprise funds, public safety, public
works, Park & Recreation, and general government and is approximatelyy $73 million.
The approximate breakdown of distribution of the funds is as follows: $23.11 million
to infrastructure; $2.68 million to public safety; $22.97 million to Enterprise Funds;
$13.89 million to Public Works; $7.26 million to Park & Rec and $2.64 million to
General Government. Funds for the CIP come from new debt, enterprise funds,
taxes, special assessments, aids/grants/donations, special funds/reserves and unfunded
(no current funding sources). Major capital items included in the capital plan are:
liquor store improvements, Creekside equipment, Water/Wastewater improvements
and equipment, water meters, storm water improvements, Edmonton Avenue, 2026
street improvements, sealcoating, airport, cemetery, vehicles/equipment, pool
repairs/features playygrounds, campground expansion outdoor basketball courts fire
truck, sqquad car/police robot and City Center improvements. The splash pad and
picklebalI courts have been removed from the capital improvement plan. Mr. Jaunich
reviewed the debt management plan. The big impact was the new police station.
2022 was the first increase in the debt levy since 2016. The 2026 increase is set at
2.5%. Increased interest rates have/will impact future debt decisions. The debt levy
has not kept up with inflation and special assessment rates still need to be reviewed.
Mr. Jaunich reviewed that staff is recommending a 5.7% increase in general fund
revenue/expenses which means an 8.6% increase in the total general fund and a 2.5%
increase in the debt tax levy with an overall tax levy increase of 6.9%. With the EDA
tax levy proposed to increase 1.7% and the HRA tax levy proposed to increase 1.8%
the total tax impact is 6.7%. One of the biggest factors behind the levy increase is the
general wage and benefit increases along with a couple of additional positions that are
expected to cost the City an additional $676,219 in 2026.
Mr. Jaunich reviewed additional information to note: The 2026 budget includes an
additional IT staff position, Waterpark/Recreation Building Position and
Engineering/Public Works staffing changes — no other significant increases or cuts in
staffing or changes in service; the budget includes a 14% increase in health insurance
costs and new costs for the MN Paid Family Medical Leave; staffing costs and capital
needs are the biggest driver of the budget; major capital improvements are needed at
the pool and ice arena; fund balances continue to remain high and the fiscal condition
of the City is healthy; the State's budget forecasts aren't great and could have an
impact in future years; home values continue to increase and the city is continuing to
see growth at all levels; and inflation and supply chain issues continue to impact the
City as well.
Mr. Jaunich noted that there will be significant changes within the police department
in 2026 due to retirements and resignations.
The final budgets and levy will be adopted at the December 23, 2025, City Council
meeting.
ADJOURN
Motion by Czmowski, second by Burley, to adjourn at 7:00 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
MINUTES
HEARING
DETERMINATION OF NUISANCE CONDITIONS AT 317 ALAN STREET SW
TUESDAY, DECEMBER 9, 2025, 4:00 P.M.
1. CALL TO ORDER — 4:00 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Pat May, Chad Czmowski
and Dave Sebesta. Member absent was Tim Burley. Also present were Matt Jaunich, City
Administrator and Marc Sebora, City Attorney.
2. HEARING
Mayor Forcier called the hearing to order.
Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that this hearing is
for the Council to determine whether or not nuisance conditions exist at 317 Alan Street SW. Mr.
Sebora noted that he had provided both the Council and the property occupant, Randall Lade, with
information pertaining to the reported nuisance conditions.
Mr. Sebora invited neighbors to the property to come forward and describe the nuisances they have
observed at 317 Alan Street SW.
Don Walser, 320 Circle Drive, presented before the Council. Mr. Walser explained that his view of
Mr. Lade's backyard is very unpleasant and has received comments from the condition of the
property by guests at his home. He also noted that a realtor had informed him that the conditions of
317 Alan Street SW could affect the re -sale of his home and reduce the asking/selling price of his
home by $5,000-$15,000. Mr. Walser also spoke on behalf of his neighbor who is in her 90s. This
neighbor also has a view same as Mr. Walser's and it is unpleasant to her.
Mr. Sebora showed pictures of 317 Alan Street SW that Mr. Walser had taken from his property.
Jared Martig, 324_Circle Drive, was present and stated that his backyard abuts the Lade property.
Mr. Marti g stated that his view of the property is not too bad as he has trees and a fence that blocks
the view, but he does have concerns that the fence may be down within the next couple of years due
to deterioration.
Officer Brad Hemling of the Hutchinson Police Department presented before the Council. Officer
Hemling stated that he acts as the property nuisance officer in addition to his patrol duties. Officer
Hemling explained that he has been in contact with Randall Lade, and his father, Eldor prior to his
passing, regarding the condition of the property over the years. Officer Hemling stated that they
both have always been pleasant and respectful to work with. Officer Hemling stated that both Eldor
and Randall engage in scrapping, as in collecting items to sell at scrapyards which at times has them
accumulating large amounts of items. Officer Hemling stated that he has taken several photos over
the course of the year and felt that the property is a nuisance condition. Officer Hemling noted that
he has had several conversations with the Lades over the years and at times progress is made but
then the property will revert to having nuisance conditions.
Marc Sebora showed photographs that Officer Hemling had taken over the course of the year of the
property which shows that a nuisance condition still exists. Officer Hemling noted that the condition
of the front of the house has improved over the years, however the backyard has not.
Randall Lade presented before the Council.
Mr. Lade stated that he has been working very hard on cleaning up his property. He noted that he
fixes bicycles and donates them and sells them. He also noted that since his father died a little over a
year ago, it has been difficult to go through all of his things. Mr. Lade requested more time to keep
working on cleaning up the property because he is the only one to do it and it takes a lot of work and
time.
Mayor Forcier asked Mr. Lade if six months would allow him time to clean up the property. Mr.
Lade asked for clarification on what exactly needs to be accomplished. Mr. Lade's main concern
was all of the bicycles that he makes profit on and earns a living on.
The Council stated that the outside area needs to be completely cleaned up within a six month time
frame or by June 9, 2026. City staff will conduct verification inspections following the deadline. If
clean up is not accomplished by June 9, 2026, the Council will direct the City Attorney to petition
the District Court for an order permitting the City to enter the property and abate the nuisance and
seek authority for the City to recover all cleanup, disposal, and administrative costs and to assess
such costs to the property in accordance with Minnesota Statutes and the Hutchinson City Code.
Motion by May, second by Czmowski, to approve Resolution No. 15962 with a compliance deadline
of June 9, 2026. Motion carried unanimously.
3. ADJOURN
With no further business to discuss, motion by May, second by Czmowski, to adjourn the hearing at
4:35 p.m. Motion carried unanimously.
HUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, DECEMBER 9, 2025
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: Ciiypolicy andpractices, inputfrom constituents,
and other questions or information that has not yet been presented or discusseddregarding an agenda item)
1. CALL MEETING TO ORDER — 5:30 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Pat May, Chad
Czmowski and Dave Sebesta. 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 Burley, second by Sebesta, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION — A moment of silence was held in lieu of an invocation.
(The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 15947 — Resolution Accepting $500.00 Donation from American Legion Post 96
for Police Department Shop With a Cop Event
(b) Resolution No. 15949 — Resolution Accepting $900.00 Donation from Linell and Steven
Loncorich for Cemetery Maintenance and Operations
Motion by May, second by Czmowski, to approve Resolution Nos. 15947 and 15949. Motion
carried unanimously.
PUBLIC COMMENTS
(This 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 ifnot apublic 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 November 25, 2025
Motion by Czmowski, second by May, to approve minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
(The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
CITY COUNCIL MINUTES — December 9, 2025
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Approval of 2026 License Renewals
(b) Consideration for Approval of Items for Water Treatment Plant Reverse Osmosis Membrane
Replacements (Letting No. 3, Project No. 26-03)
1. Resolution No. 15945 — Resolution Ordering Preparation of Report on Improvement
2. Resolution No. 15946 — Resolution Receiving Report and Calling Hearing on Improvement
(c) Consideration for Approval of Resolution No. 15950 — Resolution Approving State Airport Fund
Grant Agreement With MnDOT
(d) Claims, Appropriations and Contract Payments — Register A
Motion by Czmowski, second by Burley, to approve Consent Agenda L Motion carried
unanimously.
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 — 5:30 P.M.
9. BUSINESS SUBSIDY FOR 10 MAIN STREET LLC — JORGENSEN HOTEL PROJECT
(a) Approve/Deny Resolution No. 15948 — Resolution Authorizing Execution of an Amended and
Restated Development Agreement and Approval of a Business Subsidy
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that in
October the City Council authorized the establishment of TIF District No. 4-25 in the principle
amount of $792,000 plus interest for 15 years. Since then, the developer has provided additional
documentation to justify a higher principle TIF amount of $1,174,522 plus interest. This utilizes
all the tax increment generated by the TIF District over its entire 26-year life. An analysis was
completed by the City's TIF consultant and they have verified that the project will need this
amount of public assistance to be financially feasible. Mr. Seppelt explained how a TIF District
works and why this method is needed for this specific project. Mr. Seppelt then described the
proposed subsidy which is a redevelopment TIF district in the amount of $1,174,522 plus
interest. Mr. Seppelt explained the purpose of the subsidy, the goals, the financial obligation of
the developer, the need for the subsidy, and the additional grant that was obtained for the
demolition of this project. 10 Main Street LLC is proposing to construct an approximate 40-unit
hotel on the site of the current Jorgensen Hotel and Kock Jewelry buildings. The new building is
proposed to be a boutique hotel and include up to 3000 square feet of ground floor commercial
space. Demolition of the existing buildings would take place this winter with construction
2
CITY COUNCIL MINUTES — December 9, 2025
timing of the new building contingent upon economic conditions. A revised development
agreement has been drafted for the Council's approval.
Council Member Burley clarified that no direct property tax dollars are being used for this
project. Council Member Burley also asked if this assistance wasn't made available and the
project didn't occur, what would become of the property. Mr. Seppelt noted that would be
unknown.
No public comments were received.
Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously.
Motion by Burley, second by Czmowski, to approve Resolution No. 15948. Motion carried
unanimously.
10. EDMONTON AVENUE SE PROJECT (LETTING NO. 1, PROJECT NO. 26-01)
(a) Approve/Deny Resolution No. 15941 — Resolution Ordering Improvement and Preparation of
Plans and Specifications
(b) Approve/Deny Resolution No. 15942 — Resolution Approving Plans and Specifications and
Ordering Advertisement for Bids
Brandon Braithwaite, Assistant Public Works Director/City Engineer, presented before the
Council. Mr. Braithwaite provided a brief project overview of the Edmonton Avenue SE project.
The proposed project is to complete construction of Edmonton Avenue with a full depth
reclamation between Montreal Street SE and Jefferson Street SE. The project cost estimate is
$1,059,534 which includes amounts for construction, engineering, administration and
geotechnical testing. Funding for this project would be a combination of municipal state aid
funds, City utility funds, funds from issuing an improvement bond and funds from special
assessment to abutting properties.
Candy Stowell, 365 Ottawa Avenue SE, presented before the Council. Ms. Stowell asked about
irrigation systems that property owners have on the backside of their properties that abut
Edmonton Avenue. Mr. Braithwaite explained that as the construction time gets closer, staff will
reach out to property owners to discuss any specific property issues.
Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously.
Motion by Czmowski, second by Burley, to approve Resolution Nos. 15941 and 15942. Motion
carried unanimously.
11. 2026 STREET IMPROVEMENTS PROJECTS (LETTING NO. 2, PROJECT NO. 26-02)
(a) Approve/Deny Resolution No. 15943 — Resolution Ordering Improvement and Preparation of
Plans and Specifications
(b) Approve/Deny Resolution No. 15944 — Resolution Approving Plans and Specifications and
Ordering Advertisement for Bids
CITY COUNCIL MINUTES — December 9, 2025
Brandon Braithwaite, Assistant Public Works Director/City Engineer, presented before the
Council. Mr. Braithwaite provided a brief project overview of the streets included in the 2026
Street Improvement Projects. The main streets affected include Boulder Circle, Boulder Street,
Larson Street, Sherwood Street, Elks Drive, Orchard Avenue, Bradford Street and Randall Road.
The improvements being proposed are full depth reclamations. The project cost estimate is
$2,944,455 which includes amounts for construction, engineering, administration, geotechnical
testing and street lighting materials. Funding for this project would be a combination of City
utility funds, funds from issuing an improvement bond and funds from special assessment to
abutting properties. Mr. Braithwaite explained the proposed assessment rates.
William Murphy, 413 Boulder Street, presented before the Council. Mr. Murphy inquired if a
sidewalk is part of the project. Mr. Braithwaite noted that a sidewalk is not part of the Boulder
Street project.
Kevin Remus, 110 Orchard Avenue SE, asked if valves are going in or pipes. Mr. Braithwaite
noted that there are valves scheduled to be repaired/replaced but pipe installation is not part of
the project. Mr. Remus also posed questions related to sump pumps.
Kathy Grant, 140 Orchard Avenue SE, posed questions about sump pumps as well. Ms. Grant
inquired about connecting into an underground line for her property's sump pump due to tree
root issues. Mr. Braithwaite noted that staff will communicate with her as the project gets closer
to determine options available. Ms. Grant also raised concerns about access to her driveway
during construction, along with mailbox access and garbage pick-up. Mr. Braithwaite noted that
as the schedule is developed communication will be had with property owners.
Motion by Czmowski, second by Sebesta, to close public hearing. Motion carried unanimously.
Motion by Czmowski, second by Burley, to approve Resolution Nos. 15943 and 15944. Motion
carried unanimously.
NVgUNICATIONS RE UESTS AND PETITIONS
purpose oJ this portion oJ the agenda is to provi e the ounci with information necessary to craft wise policy.
ides items like monthly or annual reports and communications from other entities.)
12. REVIEW OF TRUTH IN TAXATION HEARING
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that the annual
Truth in Taxation hearing was held last Thursday December 4, 2025. Mr. Jaunich asked the Council
if there was a desire to change anything in regard to the 2026 budget and/or tax levy. He also noted
that due to some changes in the police department, there will be a reduction in wages for 2026, so
the proposed levy increase is 6.5%, which is a slight reduction from what was presented at the truth
in taxation hearing.
UNFINISHED BUSINESS
13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-867 — AN
ORDINANCE TO REZONE PROPERTY AT 155 GLEN STREET NW
.19
CITY COUNCIL MINUTES — December 9, 2025
Matt Jaunich, City Administrator, presented before the Council. He noted the first reading of this
ordinance was held at the last City Council meeting and no changes have been made to it. He explained
that during the processing of building permits for The Landing Project, staff found information from
2021 that the east side of the subject property had been zoned Mixed Use to potentially accommodate a
project from a different developer. Staff realized the zoning map had not been updated to show the
rezoning to Mixed Use in 2021 and the map showed the property was zoned C-3 Commercial. This led
staff to assume the property was zoned C-3 when in fact it was zoned Mixed Use. Because of this the
property needs to be rezoned back to C-3 which was the zoning designation prior to 2021. This does not
change anything related to the project, just simply fixing an internal error.
Motion by Burley, second by May, to approve second reading and adoption of Ordinance No. 25-867.
Motion carried unanimously.
14. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-869 — AN
ORDINANCE AMENDING SECTION 153.072 - PUBLIC SITES, OPEN SPACES AND BICYCLE
AND PEDESTRIAN PATHS
Matt Jaunich, City Administrator, presented before the Council. He noted the first reading of this
ordinance was held at the last City Council meeting and no changes have been made to it. He explained
that in section 153.072 of the City's subdivision ordinance, there are fees that are noted within the
ordinance. It is uncommon to have actual fees noted in ordinances and more common to note that there
are fees that are subject to the City's fee schedule. Staff is recommending to remove the fees from the
ordinance so that it doesn't need to be amended each time fees are revised.
Motion by Czmowski, second by May, to approve second reading and adoption of Ordinance No. 25
869. Motion carried unanimously.
NEW BUSINESS
15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-868 - AN ORDINANCE TO
REZONE PROPERTY AT 552,554 and 564 JEFFERSON STREET SE WITH FAVORABLE
PLANNING COMMISSION RECOMMENDATION
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that a rezoning
application has been submitted for properties located at 552, 554 and 564 Jefferson Street SE. These
properties are currently zoned R-2 Medium Density Residential, however these properties had been used
as a commercial use prior to afire in the late 2010s. If rezoning is approved, the applicant is looking at
constructing a building for a construction business. No concerns were brought up at the Planning
Commission meeting.
Motion by May, second by Sebesta, to approve first reading of Ordinance No. 25-868. Motion
carried unanimously.
16. APPROVE/DENY AMENDING ATTACHMENT A OF THE HUTCHINSON FIRE RELIEF
ASSOCIATION BYLAWS — INCREASING BENEFIT AMOUNT TO MEMBERS
5
CITY COUNCIL MINUTES — December 9, 2025
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that at the
November Fire Relief Association meeting, the Hutchinson Fire Relief Association approved an
amendment to their bylaws increasing their benefit amount to Relief Association members. The
increase would move the monthly benefit amount from $17.00 to $19.00 and the lump sum benefit
amount increase from $3660 to $4460. The increases would go into effect on January 1, 2026. An
actuarial study was completed that shows justification for this request.
Motion by May, second by Sebesta, to approve amending Attachment A of the Hutchinson Fire
Relief Association Bylaws. 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)
17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Library Board Minutes from October 27, 2025
MISCELLANEOUS
18. STAFF UPDATES
19. COUNCIL/MAYOR UPDATE
Chad Czmowski — Council Member Czmowski provided an update from the PRCE Board noting that
the Kiwanis warming house (Rocket Hill) will be opening soon and the outdoor ice rinks at Park
Elementary and Northwoods Park are being flooded and will be ready soon.
Gary Forcier— Mayor Forcier encouraged residents to "adopt a hydrant" and remove snow from around
fire hydrants in their neighborhoods.
ADJOURNMENT
Motion by Czmwoski, second by May, to adjourn at 6:20 p.m. Motion carried unanimously.
on
To:
Mayor and City Council
From:
Stephanie Nelson, HR/Admin Technician
Date:
December 23, 2025
Subject:
2026 License Renewals
The following establishments have applied for 2026 license renewals. The appropriate paperwork has been submitted. Please
approve the following licenses:
Massage Services On -Sale Intoxicating On -Sale Sunday
Genesis Salon & Enso Spa River House Kitchen + Drinks, LLP River House Kitchen + Drinks, LLP
Caterer License Taxi
River House Kitchen + Drinks, LLP ACC Midwest Transportation, Inc
To:
Mayor and City Council
From:
Stephanie Nelson, HR/Admin Technician
Date:
December 23, 2025
Subject:
2026 License Renewals
The following establishments have applied for 2026 license renewals. The appropriate paperwork has been submitted. Please
approve the following licenses:
Massa a Services On -Sale Intoxicating On -Sale Sunday
Genesis Salon & Enso Spa River House Kitchen + Drinks, LLP River House Kitchen + Drinks, LLP
Caterer License
River House Kitchen + Drinks, LLP
Flank Bar & Char
Taxi
Acc Midwest Transportation, Inc
Flank Bar & Char
?",\ s�� 9 La-)
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve 2026 Invocation Schedule
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff
Consent Agenda
Time Requested (Minutes): 1
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Back in June of 2018, the City Council approved a new invocation policy that gave staff
guidelines on establishing a schedule on who gives the invocation at council meetings for the
upcoming year. In mid -October, an invitation was sent out to all of the churches/religious
institutions within city limits and on file seeking volunteers to deliver the invocation for the
upcoming year. The schedule includes those that responded. Please note that our policy notes
that no one should give the invocation more than twice within a year.
Attached is the proposed schedule for 2026 for your consideration. Our invocation policy notes
that the City Council will approve the invocation schedule for the upcoming year.
Please note that our policy states that any spots left vacant may be filled by the City Council by a
council member invite, left vacant to be filled at a later time, or simply left open and unfilled
(meaning no invocation will be given). Any last minute -changes to the schedule will be noted at
the meeting on Tuesday. Any requests that come in after the schedule is approved will be
brought forth to the Council for consideration in adding to the calendar or will be added
administratively.
BOARD ACTION REQUESTED:
Approve 2026 Invocation Schedule (as attached)
Fiscal Impact: $ 0.00 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
Invocation Schedule 2026
City Council Meeting Date
Church/Organization
January 13, 2026
Faith Lutheran Church
January 27, 2026
February 10, 2026
River of Hope
February 24, 2026
CrossPoint Church
March 10, 2026
The River Church
March 24, 2026
Bethlehem United Methodist Church
April 14, 2026
Riverside Church
April 28, 2026
May 12, 2026
May 26, 2026
June 9, 2026
Riverside Church
June 23, 2026
July 14, 2026
Faith Lutheran Church
July 28, 2026
August 11, 2026
August 25, 2026
September 8, 2026
September 22, 2026
The River Church
October 13, 2026
October 27, 2026
CrossPoint Church
November 10, 2026
River of Hope
November 24, 2026
Christ the Kin
December 8, 2026
December 22, 2026
Bethlehem United Methodist Church
Fa
HUTCHINSON
A CITY ON PURPOSE.
BOARDS/COMMISSION INTEREST FORM
www.ci.hutchinson.mn.us
Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN
Name:
Address:'
Home Phone #:
Cell Phone #:
Occupation: _&-g
Place of Employment:
Educational Background:
Number of years as Hutchinson Resident: l�
Fax # (320) 234-4240
Phone # (320) 587-5151
Work Phone #:
Email Address:
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)
o Library Board (3 yr. term)
❑ Park/Rec/Comm Ed Board (3 yr. term)
❑ Planning Commission (5 yr. term)
o Police Civil Service Commission (3 yr. term)
❑ Public Arts Commission (3 yr. term)
Nr 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:
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, 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.
u
HUTCHINSON
A CITY ON PURPOSE.
BOARDS/COMMISSION INTEREST FORM
www.ci.hutchinson.mn.us
Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN
Fax # (320) 234-4240
Phone # (320) 587-5151
Name:_ -Tt \i4r UL8
Address: i 3 Q h C, 0- SQL
Home Phone #: Work Phone #:
Cell Phone #: 3ao- 5Sa— i Email Address:ia,.vJ'�ar�da�rnc�Ii. com
Occupation: Red 1 r z,A
Place of Employment:
Educational Background: g5 �v_;'��SeSS W1,n:N ra. i an — Mo,hka.. o S7- L. IQ
Number of years as Hutchinson Resident: 6
I am interested in serving on the following City Board or Commission:
❑ Airport Commission (5 yr. term)
❑ Bicycle/Pedestrian Advisory Committee (3 yr. term)
o Charter Commission (4 yr. term)
o HRA Board (5 yr. term)
o 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/co issi r
� ca,
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, 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.
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Resolution of Support for 8th Ave Multi -Use Trail Greater MN Transportation
Agenda Item: Alternatives Grant
Department: PCRE/Public Works
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Brandon Braithwaite
Agenda Item Type:
Presenter: Brandon Braithwaite
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The Resource Allocation Committee, Public Works and PRCE staff have identified a potential
need for a multi -use trail extending from 8th Avenue to join the School Campus trail system. This
trail would finalize the trail system around the school campus and support the 2016 Safe Routes
to School plan. This is a joint project between the City of Hutchinson and Hutchinson Public
Schools.
A portion of the project will be on city property while the other portion of the project will be on the
school campus. Local monetary contribution for this grant will be shared between the City of
Hutchinson and Hutchinson Public Schools.
The Greater Minnesota Transportation Alternatives announced grant money availability this fall
for eligible projects for 2030 funding, with a chance for expediting. Staff have reviewed the 8th
Avenue Multi -Use Trail and feel this particular project would be a good candidate for eligibility.
As part of the grant application a Resolution of Support is required. Full Grant Applications are
due Friday, January 9, 2026.
BOARD ACTION REQUESTED:
Approve Resolution for Support for the Greater Minnesota Transportation Alternatives Grant
Application.
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 265,000.00
Total City Cost: $ 26,500.00 Funding Source: Misc Infrastructure Fund
Remaining Cost: $ 238,500.00 Funding Source: TA Grant/School District
RESOLUTION NO. 15969
GREATER NHNNESOTA TRANSPORTATION ALTERNATIVES GRANT
SUPPORT FOR GRANT APPLICATION
WHEREAS, the City of Hutchinson is committed to the development and maintenance of a
comprehensive trail system that contributes to the well-being of our community; and
WHEREAS, the Greater Minnesota Transportation Alternatives Grant presents a valuable
opportunity to secure funding for the improvement and expansion of our city's trail network; and
WHEREAS, the City of Hutchinson has thoroughly reviewed the requirements and objectives of
the Greater Minnesota Transportation Alternatives Grant and is committed to fulfilling the
necessary obligations to ensure the successful implementation of the 8 h Avenue Trail Project;
and
WHEREAS, the City of Hutchinson, Minnesota is making an application for funding under the
2025/26 Greater Minnesota Transportation Alternatives grant in the amount of up to $265,000.00
for funding in year 2030; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON,
NHNNESOTA:
The City of Hutchinson agrees to act as a sponsoring agency for the project identified as 8th
Avenue Trail Project seeking up to $265,000.00 and has reviewed and approved the project as
proposed. Sponsorship includes a willingness to secure and guarantee the local share of costs
associated with this project and responsibility for seeing this project through to its completion,
with compliance of all applicable laws, rules and regulations.
Mike Stifter and Lynn Neumann are hereby authorized to act as agent on behalf of this
sponsoring agency.
The City of Hutchinson and Hutchinson Public Schools take full responsibility for the operations
and maintenance of the 8th Avenue Trail Project related to the aforementioned transportation
alternatives project. City of Hutchinson will be responsible for the portion on city property and
Hutchinson Public Schools will be responsible for the trail sections on the school campus.
Approved and adopted this 23rd day of December, 2025.
Gary Forcier, Mayor
Matthew Jaunich, City Administrator
KA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A MTV ON P(1RP0SP
MNDOT Grant to Fund the Professional Services Agreement with Bolton and Menk
Agenda Item: for Snow Removal Equipment Building at the Airport
Department: Public Works
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Consent Agenda
Time Requested (Minutes): 1
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The airport was awarded a 70/30 grant to build a snow removal equipment shed at the airport,
leading to entering into a design and construction management agreement with Bolton and
Menk, our airport consultant covered under this grant. These design services will also be a
70/30 split with the state.
BOARD ACTION REQUESTED:
Approval of MNDOT Grant Agreement and Resolution
Fiscal Impact: $ 12,750.00 Funding Source: Miscellaneous Infrastructure Account
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 42,500.00
Total City Cost: $ 12,750.00 Funding Source: Miscellaneous Infrastructure Account
Remaining Cost: $ 29,750.00 Funding Source: MNDOT aeronautics
M DEPARTMENT OF MnDOT Contract No. 1061953
TRANSPORTATION
STATE OF MINNESOTA
STATE AIRPORTS FUND
GRANT AGREEMENT
This agreement is between the State of Minnesota, acting through its Commissioner of Transportation ("State"), and the
City of Hutchinson, III HASSAN ST SE, HUTCHINSON, MN, 55350 ("Grantee").
RECITALS
1. Minnesota Statutes Chapter 360 authorizes State to provide financial assistance to eligible airport sponsors for the
acquisition, construction, improvement, marketing, maintenance, or operation of airports and other air navigation
facilities.
2. Grantee owns, operates, controls, or desires to own an airport ("Airport") in the state system, and Grantee desires
financial assistance from the State for an airport improvement project (State Project 94304-53) ("Project").
3. Grantee represents that it is duly qualified and agrees to perform all services described in this agreement to the
satisfaction of the State. Pursuant to Minn.Stat.§ 1613.98, Subd. 1, Grantee agrees to minimize administrative costs as a
condition of this Agreement.
AGREEMENT TERMS
1. Term of Agreement, Survival of Terms, Project Plans, and Incorporation of Exhibits
1.1 Effective Date. This Agreement will be effective on the date the State obtains all required signatures under Minn.
Stat.§16B.98, Subd. 5. As required by Minn.Stat.§16B.98 Subd. 7, no payments will be made to Grantee until this
Agreement is fully executed. Grantee must not begin work under this Agreement until it is fully executed and
Grantee has been notified by the State to begin the work.
1.2 Expiration Date. This Agreement will expire on June 30'h, 2030, or when all obligations have been
satisfactorily fulfilled, whichever occurs first.
1.3 Survival of Terms. All clauses which impose obligations continuing in their nature and which must survive in
order to give effect to their meaning will survive the expiration or termination of this Agreement, including,
without limitation, the following clauses: Airport Operations, Maintenance and Conveyance; Transfer of Interest;
Indemnification; State Audits; Government Data Practices and Intellectual Property; Workers Compensation;
Publicity and Endorsement; Governing Law, Jurisdiction and Venue; and Data Disclosure.
1.4 Project Plans, Specifications, Descriptions. Grantee has provided the State with the plans, specifications, and a
detailed description of the Project which are on file with the State's Office of Aeronautics and are incorporated
into this Agreement by reference.
1.5 Exhibits. Exhibit(s) A through B are attached and incorporated into this Agreement.
2. Grantee's Duties
2.1 Project Completion and Changes. Grantee will complete the Project in accordance with the plans,
specifications, and detailed description of the Project. Grantee will notify State's Authorized Representative in
advance of any meetings taking place relating to the Project. Any changes to the plans or specifications of the
Project after the effective date of this Agreement will be valid only if made by written amendment signed by the
same parties who executed the original agreement, or their successors in office.
2.2 Registered Engineer Designation. If the Project involves construction, Grantee will designate a registered
engineer to oversee the Project work. If, with the State's approval, Grantee elects not to have such services
performed by a registered engineer, then Grantee will designate another responsible person to oversee such work.
2.3 Policy Compliance. Grantee will comply with all the required grants management policies and procedures of
Minn.Stat.§16B.97, Subd.4(a)(1).
2.4 Publication of Grantee Contact Information. Under Minnesota Statute § 1613.98, if a grantee has a website, the
names and contact information for the grant administrator(s) and organization's leadership must be clearly
published.
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT Contract #: 1061953
2.5 Asset Monitoring. If Grantee uses funds obtained through this Agreement to acquire a capital asset, the Grantee
is required to use that asset for a public aeronautical purpose for the normal useful life of the asset. Grantee may
not sell or change the purpose of use for the capital asset(s) obtained with grant funds under this Agreement
without prior written consent of the State and an amendment to this Agreement executed and approved by the
same parties who executed and approved this Agreement, or their successors in office.
2,6 Airport Operations, Maintenance, and Conveyance. Pursuant to Minnesota Statutes §360.305, subd. 4(d)(1),
Grantee must operate the Airport as a licensed, municipally -owned public airport at all times of the year for a
period of 20 years from the date Grantee receives final reimbursement under this Agreement. The Airport must be
maintained in a safe, serviceable manner for public aeronautical purposes only.
2.7 Transfer of Interest. Without prior written approval from the State, Grantee will not transfer, convey, encumber,
assign, or abandon its interest in the Airport or in any real or personal property purchased or improved under this
Agreement. If the State approves such a transfer or change in use, the State may impose, at its sole discretion,
conditions and/or restrictions on such transfer, with which Grantee must comply.
3. Time. Grantee must comply with all the time requirements described in this Agreement. In the performance of this
Agreement, time is of the essence.
4. Cost Participation and Payment
4,1 Cost Participation. Costs for the Project will be proportionate and allocated accordingly between the federal
government, the State, and Grantee as described in Exhibit B.
4.1.1 Federal Funding. No federal funds are authorized for the Project. In the event federal reimbursement
becomes available for the Project, the State will be entitled to recover from such federal funds an amount not
to exceed the state funds advanced for this Project. No more than 95% of the amount due under this
Agreement will be paid by the State until the State determines that Grantee has complied with all terms of this
Agreement and furnished all necessary records.
4.2 Sufficiency of Funds. Pursuant to Minnesota Rule 8800.2500, Grantee certifies that: (1) it presently has sufficient
unencumbered funds available to pay for its share of the Project; (2) it has the legal authority to engage in the
Project as proposed; and (3) the Project will be completed without undue delay.
4.3 Total Obligation. The State's total obligation for all compensation and reimbursements to Grantee under this
Agreement will not exceed $29,750.00.
4.4 Payment
4.4.1 Invoices. Grantee will submit invoices for payment by credit application via email. The form Grantee will
use to submit invoices can be found on the Airport development forms website:
hl ps://www.dot.state.mn.us/aero/ailportdevelopment/forms.html. The State's Authorized Representative,
as named in this Agreement, will review each invoice against the approved grant budget and grant
expenditures to -date before approving payment. The State will promptly pay Grantee after Grantee presents
an itemized invoice for the services actually performed and the State's Authorized Representative accepts
the invoiced services. Invoices must be submitted timely and according to the following schedule: Upon
completion of the services.
4.4.2 All Invoices Subject to Audit. All invoices are subject to audit, at the State's discretion.
4.4.3 Expiration of Reimbursement. Grantee must submit all final invoices for reimbursement no later than
ninety (90) calendar days after the expiration date of this Agreement. Any invoices received after this 90-
day period will not be eligible for payment.
4.4.4 State's Payment Requirements. The State will promptly pay all valid obligations under this Agreement as
required by Minnesota Statutes § 16A.124. The State will make undisputed payments no later than thirty
(30) days after receiving Grantee's invoices for services performed. If an invoice is incorrect, defective or
otherwise improper, the State will notify Grantee within ten (10) days of discovering the error. After the
State receives the corrected invoice, the State will pay Grantee within thirty (30) days of receipt of such
invoice.
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT Contract #: 1061953
4.4.5 Grantee Payment Requirements. Grantee must pay all Project contractors promptly. Grantee will make
undisputed payments no later than thirty (30) days after receiving an invoice. If an invoice is incorrect,
defective, or otherwise improper, Grantee will notify the contractor within ten (10) days of discovering the
error. After Grantee receives the corrected invoice, Grantee will pay the contractor within thirty (30) days
of receipt of such invoice.
4.4.6 Grant Monitoring Visit and Financial Reconciliation. If the State's total obligation is greater than
$50,000.00, the State will conduct at least one monitoring visit and financial reconciliation of Grantee's
expenditures. If the State's total obligation is greater than $250,000.00, the State will conduct annual
monitoring visits and financial reconciliations of Grantee's expenditures.
4.4.6.1 The State's Authorized Representative will notify Grantee's Authorized Representative where and
when any monitoring visit and financial reconciliation will take place, which state employees
and/or contractors will participate, and which Grantee staff members should be present. Grantee
will be provided notice prior to any monitoring visit or financial reconciliation.
4.4.6.2 Following a monitoring visit or financial reconciliation, Grantee will take timely and appropriate
action on all deficiencies identified by the State.
4.4.6.3 At least one monitoring visit and one financial reconciliation must be completed prior to final
payment being made to Grantee.
4.4.7 Closeout. The State will determine, at its sole discretion, whether a closeout audit is required prior to final
payment approval. If a closeout audit is required, final payment will be held until the audit has been
completed. Monitoring of any capital assets acquired with grant funds will continue following grant
closeout.
4.4.8 Closeout Deliverables. At the close of the Project, Grantee must provide the following deliverables to the
State before the final payment will be released by the State:
4.4.8.1 Electronic files of construction plans as both PDF and MicroStation compatible formats.
4.4.8.2 Electronic files of as-builts as both PDF and MicroStation compatible formats.
4.4.8.3 Electronic files of planning documents, including without limitation, airport layout plans and
airport zoning plans, as PDF, MicroStation and GIS compatible formats.
4,5 Contracting and Bidding Requirements. Prior to publication, Grantee will submit to the State all solicitations
for work to be funded by this Agreement. Prior to execution, Grantee will submit to the State all contracts and
subcontracts between Grantee and third parties to be funded by this Agreement. The State's Authorized
Representative has the sole right to approve, disapprove, or modify any solicitation, contract, or subcontract
submitted by Grantee. All contracts and subcontracts between Grantee and third parties must contain all
applicable provisions of this Agreement. The State's Authorized Representative will respond to a solicitation,
contract, or subcontract submitted by Grantee within ten (10) business days.
Conditions of Payment. All services provided by Grantee under this Agreement must be performed to the State's
satisfaction, as determined at the sole discretion of the State's Authorized Representative and in accordance with all
applicable federal, state, and local laws, ordinances, rules, and regulations. Grantee will not receive payment for work
found by the State to be unsatisfactory or performed in violation of federal, state, or local law. No more than 95% of
the amount due to Grantee under this Agreement will be paid by the State until it determines that Grantee has
complied with all terms and conditions of this Agreement and has furnished all necessary records. In the event the
Airport fails to pass any periodic inspection conducted by a representative of the State's Office of Aeronautics,
Grantee will not receive payment under this Agreement until all deficiencies identified by any such inspection have
been rectified to the Office of Aeronautics' satisfaction.
6. Authorized Representatives
6,1 The State's Authorized Representative is:
Jason Radde, Senior Engineer - Central, 395 JOHN IRELAND BOULEVARD, MS 410
ST. PAUL, MINNESOTA 55155-1800, 612-718-9158, jason.radde@state.mn.us, or their successor. The
State's Authorized Representative, or their designee, is responsible for monitoring Grantee's performance and is
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT Contract #: 1061953
authorized to accept the services provided under this Agreement. If the services are satisfactory, the State's
Authorized Representative will certify acceptance on each invoice submitted for payment.
6.2 Grantee's Authorized Representative is:
Matt Jaunich, City Administrator,111 HASSAN ST SE, HUTCHINSON, MN, 55350, 320-234-5650,
miaunich(a,hutchinsommn.2ov, or their successor. If Grantee's Authorized Representative changes at anytime
during the term of this agreement, Grantee must immediately notify the State.
7. Assignment; Amendments; Waiver; Agreement Complete; Electronic Records; Certification
7.1 Assignment. Grantee may neither assign nor transfer any rights or obligations under this Agreement without the
prior written consent of the State and a fully executed Assignment Agreement, executed and approved by the
same parties who executed and approved this Agreement, or their successors in office.
7.2 Amendments. Any amendment 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.
7.3 Waiver. If the State fails to enforce any provision of this Agreement, that failure does not waive the provision or
the State's right to subsequently enforce it.
7.4 Agreement Complete. This Agreement contains all negotiations and agreements between the State and Grantee.
No other understanding regarding this Agreement, whether written or oral, may be used to bind either party.
7.5 Electronic Records and Signatures. The parties agree to contract by electronic means. This includes using
electronic signatures and converting original documents to electronic records.
T6 Certification. By signing this Agreement, Grantee certifies that it is not suspended or debarred from receiving
federal or state awards.
Liability and Indemnification. Each party is responsible for its own acts, omissions, and the results thereof to the
extent authorized by law and will not be responsible for the acts or omissions of others, or the results thereof.
Minnesota Statutes § 3.736 and other applicable law govern liability of the State. Minnesota Statutes Chapter 466 and
other applicable law govern liability of Grantee. Notwithstanding the foregoing, Grantee will indemnify, hold
harmless, and defend (to the extent permitted by the Minnesota Attorney General) the State against any claims, causes
of actions, damages, costs (including reasonable attorneys' fees), and expenses arising in connection with the services
performed under this Agreement, asserted by, or resulting from the acts or omissions of, Grantee's contractors,
consultants, agents or other third parties under the direct control of Grantee.
State Audits. Under Minn. Stat. § 1613.98 Subd. 8, the books, records, documents, and accounting procedures and
practices of Grantee, or those of any other party relevant to this Agreement, or transactions resulting from this
Agreement, are subject to examination by the State and/or the State Auditor, Legislative Auditor, or Attorney General
as appropriate, for a minimum of six (6) years from: (1) the expiration or termination of this Agreement, (2) the
receipt and approval of all final reports, or (3) the period of time required to satisfy all state and program retention
requirements (available at: https://edocs-
public.dot.state.mn.us/edocs public/DMResultSet/download?docId=10358099), whichever is later. Grantee will take
timely and appropriate action on all deficiencies identified by an audit.
10. Government Data Practices and Intellectual Property Rights
10.1 Government Data Practices. Grantee and the State must comply with the Minnesota Government Data
Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this Agreement, and as it
applies to all data created, collected, received, stored, used, maintained, or disseminated by Grantee under this
Agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by
either Grantee or the State. If Grantee receives a request to release the data referred to herein, Grantee must
immediately notify the State and consult with the State as to how Grantee should respond to the request.
Grantee's response to the request must comply with applicable law.
10.2 Intellectual Property Rights.
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) 4
MnDOT Contract #: 1061953
10.2.1 Ownership. The State owns all rights, title and interest in all of the intellectual property rights,
including copyrights, patents, trade secrets, trademarks and service marks in the Works and Documents
created and paid for under this Agreement. "Works" means all inventions, improvements, discoveries
(whether or not patentable), databases, computer programs, reports, notes, studies, photographs,
negatives, designs, drawings, specifications, materials, tapes and disks conceived, reduced to practice,
created or originated by Grantee, its employees, agents and subcontractors, either individually or jointly
with others in the performance of this Agreement. Works includes Documents. "Documents" are the
originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs,
drawings, specifications, materials, tapes, disks or other materials, whether in tangible or electronic
forms, prepared by Grantee, its employees, agents or subcontractors, in the performance of this
Agreement. The Documents will be the State's exclusive property, and Grantee must immediately
return all such Documents to the State upon completion or cancellation of this Agreement. To the extent
possible, those Works eligible for copyright protection under the United States Copyright Act will be
deemed to be "works made for hire." Grantee assigns all right, title and interest it may have in the
Works and the Documents to the State. Grantee must, at the request of the State, execute all papers and
perform all other acts necessary to transfer or record the State's ownership interest in the Works and
Documents.
10.2.2 Obligations
10.2.2.1 Notification. Whenever any invention, improvement or discovery (whether or not patentable)
is made or conceived for the first time or actually or constructively reduced to practice by Grantee,
including its employees and subcontractors, in the performance of this Agreement, Grantee will
immediately give the State's Authorized Representative written notice thereof and must promptly
furnish the State's Authorized Representative with complete information and/or disclosure thereon.
10.2.2.2 Representation. Grantee must perform all acts and take all steps necessary to ensure that all
intellectual property rights in the Works and Documents are the sole property of the State and that
neither Grantee nor its employees, agents or subcontractors retain any interest in and to the Works and
Documents. Grantee represents and warrants that the Works and Documents do not and will not
infringe upon any intellectual property rights of other persons or entities. Other indemnification
obligations of this Agreement notwithstanding, Grantee will indemnify, defend, to the extent permitted
by the Attorney General, and hold harmless the State from any action or claim brought against the State
to the extent such action is based on a claim that all or part of the Works or Documents infringe upon
the intellectual property rights of others. Grantee will be responsible for payment of any and all such
claims, demands, obligations, liabilities, costs and damages, including but not limited to, attorneys'
fees. If such a claim or action arises, or in either party's opinion is likely to arise, Grantee, at the State's
discretion, must either: (1) procure for the State the right or license to use the intellectual property rights
at issue, or (2) replace or modify the allegedly infringing Works or Documents as necessary and
appropriate to obviate the infringement claim. This remedy of State will be in addition to and not
exclusive of other remedies provided by law.
11. Workers' Compensation. Grantee certifies that it is in compliance with Minn. Stat. § 176.181 subd. 2, pertaining to
workers' compensation insurance coverage. Grantee's employees and agents will not be considered State employees.
Any claims that may arise under the Minnesota Workers' Compensation Act on behalf of Grantee's employees, as
well as any claims made by any third party as a consequence of any act or omission on the part of Grantee's
employees are in no way the State's obligation or responsibility.
12. Publicity and Endorsement
12.1 Publicity. Any publicity regarding the subject matter of this Agreement must identify the State as the
sponsoring agency and must not be released without prior written approval from the State's Authorized
Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press
releases, research, reports, signs, and similar public notices prepared by or for Grantee individually or jointly
with others, or any subcontractors, with respect to the program, publications, or services provided resulting
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT Contract #: 1061953
from this Agreement. All projects primarily funded by state grant appropriation must publicly credit the State of
Minnesota, including on Grantee's website when practicable.
12.2 Endorsement. Grantee must not claim that the State endorses its products or services.
13. Governing Law, Jurisdiction, and Venue. Minnesota law, without regard to its choice -of -law provisions, governs
this Agreement. Venue for all legal proceedings arising out of this Agreement, or its breach, must be in the
appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota.
14. Termination; Suspension
14.1 Termination. The State or Commissioner of Administration may unilaterally terminate this Agreement at any
time, with or without cause, upon written notice to Grantee. Upon termination, Grantee will be entitled to
payment, determined on a pro rata basis, for services satisfactorily performed.
14.2 Termination for Cause. The State may immediately terminate this Agreement if the State finds that there has
been a failure to comply with the provisions of this Agreement, that reasonable progress has not been made, that
fraudulent or wasteful activity has occurred, that Grantee has been convicted of a criminal offense relating to a
state grant agreement, or that the purposes for which the funds were granted have not been or will not be
fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to
disburse additional funds and requiring the return of all or part of the funds already disbursed.
14.3 Termination for Insufficient Funding. The State may immediately terminate this Agreement i£
14.3.1 It does not obtain funding from the Minnesota Legislature; or
14.3.2 If funding cannot be continued at a level sufficient to pay for the services contracted for under this
Agreement. Termination must be by written or fax notice to Grantee. The State is not obligated to pay
for any services that are performed after notice and effective date of termination. However, Grantee
will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the
extent that funds are available. The State will not be assessed any penalty if the Agreement is
terminated because of the decision of the Minnesota Legislature, or other funding source, not to
appropriate funds. The State will provide Grantee notice of the lack of funding within a reasonable
time of the State's receiving that notice.
14.4 Suspension. The State may immediately suspend this Agreement:
14.4.1 In the event of a total or partial government shutdown due to its failure to pass an approved budget by
the legal deadline. Asset Acquisitions completed by the Grantee during a period of suspension will be
deemed unauthorized and undertaken at risk of non-payment; or
14.4.2 If funding is canceled, withdrawn, or terminated, the State may suspend its performance until funding
is restored. Suspension of performance under these circumstances will be temporary until funds
become available again and does not release the State from its obligations under this Agreement.
15. Data Disclosure. Under Minn. Stat. 270C.65 subd. 3, and other applicable law, Grantee consents to disclosure of its
social security number, federal employer tax identification number, and/or Minnesota tax identification number,
already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state
obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could
result in action requiring Grantee to file state tax returns and pay delinquent state tax liabilities, if any.
16. Fund Use Prohibited. Grantee will not utilize any funds received pursuant to this Agreement to compensate, either
directly or indirectly, any contractor, corporation, partnership, or business, however organized, which is disqualified
or debarred from entering into or receiving a state contract. This restriction applies regardless of whether the
disqualified or debarred party acts in the capacity of a general contractor, a subcontractor, or as an equipment or
material supplier. This restriction does not prevent Grantee from utilizing these funds to pay any party who might be
disqualified or debarred after Grantee has been awarded funds for the Project. For a list of disqualified or debarred
vendors, see www.mmd.admin.state.mn.us/debarredreport.asp.
17. Discrimination Prohibited by Minnesota Statutes §181.59. Grantee will comply with the provisions of Minnesota
Statutes § 181.59 which requires that every contract for or on behalf of the State, or any county, city, town, township,
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025) 6
MnDOT Contract #: 1061953
school, school district or any other district in the state, for materials, supplies or construction will contain provisions
by which Grantee agrees that:
17.1 In the hiring of common or skilled labor for the performance of any work under any contract, or any
subcontract, no Grantee, material supplier or vendor, will, by reason of race, creed or color, discriminate
against the person or persons who are citizens of the United States or resident aliens who are qualified and
available to perform the work to which the employment relates;
17.2 No Grantee, material supplier, or vendor, will, in any manner, discriminate against, or intimidate, or prevent
the employment of any person or persons identified herein, or on being hired, prevent or conspire to prevent,
the person or persons from the performance of work under any contract on account of race, creed or color;
17.3 A violation of this Section is a misdemeanor; and
17.4 This Agreement may be canceled or terminated by the State, or any county, city, town, township, school,
school district or any other person authorized to enter into agreements for employment, and all money due, or
to become due under said agreements, may be forfeited for a second or any subsequent violation of the terms
or conditions of this Agreement.
18. Limitation. Under this Agreement, the State is only responsible for receiving and disbursing funds. Nothing in this
Agreement will be construed to make the State a principal, co -principal, partner, or joint venturer with respect to the
Project(s) covered herein. The State may provide technical advice and assistance as requested by Grantee, however,
Grantee will remain responsible for providing direction to its contractors and consultants and for administering its
contracts with such entities. Grantee's consultants and contractors are not intended to be third party beneficiaries of
this Agreement.
19. Telecommunications Certification. By signing this Agreement, Grantee certifies that, consistent with Section 889 of
the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. 115-232 (Aug. 13, 2018), and 2
CFR 200.216, Grantee will not use funding covered by this Agreement to procure or obtain, or to extend, renew, or
enter into any contract to procure or obtain, any equipment, system, or service that uses "covered telecommunications
equipment or services" (as that term is defined in Section 889 of the Act) as a substantial or essential component of
any system or as critical technology as part of any system. Grantee will include this certification as a flow down
clause in any contract related to this Agreement.
20. Title VI/Non-discrimination Assurances. Grantee agrees to comply with all applicable US DOT Standard Title
VI/Non-Discrimination Assurances contained in DOT Order No. 1050.2A, and in particular Appendices A and E,
which can be found at: https://edocs-public.dot.state.mn.us/edocs public/DMResultSet/download?docld=11149035.
Grantee will ensure the appendices and solicitation language within the assurances are inserted into contracts as
required. The State may conduct a review of Grantee's compliance with this provision. Grantee must cooperate with
the State throughout the review process by supplying all requested information and documentation to the State,
making Grantee staff and officials available for meetings as requested, and correcting any areas of non-compliance as
determined by the State.
21. Additional Provisions
[Intentionally left blank.]
[The remainder of this page has intentionally been left blank.]
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT ENCUMBRANCE VERIFICATION
The individual certifies funds have been encumbered as
required by Minn. Stat. 16A.15 and 16C.05.
By:
Date:
SWIFT Contract #
SWIFT Purchase Order #
GRANTEE
Grantee certifies that the appropriate person(s) have
executed the Agreement on behalf of Grantee as required
by applicable articles, bylaws, resolutions, or ordinances.
By:
Title
Date:
Un
Title:
Date
Aero/CM State Airports Fund Grant Agreement (Updated 09/10/2025)
MnDOT Contract #: 1061953
COMMISSIONER OF TRANSPORTATION
as delegated
Lo
Date:
MnDOT CONTRACT MANAGEMENT
Date:
Docusign Envelope ID: CCAOOAFA-OA62-4D6B-B7AE-D997229BFB5E EXHIBIT A
u
HUTCHINSON
PUBLIC WORKS AND ENGINEERING
December 1, 2025
Mr. Jason Radde
Airport Regional Engineer
MnDOT Office of Aeronautics
395 John Ireland Boulevard
St. Paul, MN 55155
RE: Grant Application
Hutchinson Municipal Airport (HCD)
Snow Removal Equipment Building
Dear Mr. Radde:
Please find enclosed the agreement for professional services for aforementioned project to be
completed at the Hutchinson Municipal Airport located in Hutchinson, Minnesota:
The project is construction of a snow removal equipment building.
The city of Hutchinson requests a State grant agreement in the amount of $29,750.00 for the
aforementioned project. Once bids for construction are obtained, the city will request a grant
amendment. If you need any further information or documentation, please feel welcome to contact me
at dschuette(@hutchinsommn.gov or (320) 583-8982.
Sincerely,
Signed by: � �''''
06V,bvccun, S JUX&,
IND mo va rpSchuette
Public Works Manager
cc: Travis Haskell, MnDOT Aeronautics
Arika Johnson, MnDOT Aeronautics
Silas Parmar, Bolton & Menk, Inc.
Enclosures:
• Professional Service Agreement
• MnDOT Cost Split
EXHIBIT B
Airport: Hutchinson Municipal Airport
(dent: HCD
Sponsor: City of Hutchinson, MN
State Project: A4304-53
State Agreement a: 1061953
Description: Snow Removal Equipment Building
Version Date: 12/5/2025
Construction
Description
Total
State Funding Rate
State
Local
$
70%
$
$
$
70%
$
$
$
70%
$
$
CONSTRUCTION SUBTOTAL $
-
$
-
$ -
Engineering
Description
Total
State
Local
Engineering - Bolton&Menk, Inc.
$
42,000.00
70%
$
29,400.00
$ 12,600.00
$
-
70%
$
-
$ -
$
-
70%
$
-
$ -
ENGINEERING SUBTOTAL $
42,000.00
$
29,400.00
$ 12,600.00
Administration
Description
Total
State
Local
Bid Advertising
$
500.00
70%
$
350.00
$ 150.00
$
-
70%
$
-
$ -
$
-
70%
$
-
$ -
ADMINISTRATION SUBTOTAL $
500.00
$
350.00
$ 150.00
Grant Amounts $
42,500.00
$
29,750.00
$ 12,750.00
Grant Percentages
100.00%
70.00%
30.00%
RESOLUTION NO. 15971
APPROVING STATE AIRPORT FUND GRANT AGREEMENT
WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION
It is resolved by the City of Hutchinson as follows:
• That it has applied for and been awarded a State Airport Fund grant by the Minnesota Department of
Transportation, Agreement Number 1061953 ("Agreement");
• That it hereby agrees to the terms and conditions of the Agreement; and
• That the proper signing officers are hereby authorized to execute the above -referenced Agreement and any
amendments thereto on behalf of the City of hutchinson.
Adopted by the City of Hutchinson on this 23rd day of December , _2025
[GRANTEE NAME]
Print Name:
Title/Date :
ATTESTATION:
(different authorized signer than above)
LM
Print Name:
Title/Date :
Resolution Approving Grant (Updated 9.30.2025)
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Consideration of Approval of Engineering Services Agreement with Apex
Agenda Item: Engineering Group for School Road SW Corridor Study Phase 1
Department: Public Works / Engineering
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Brandon Braithwaite
Agenda Item Type:
Presenter: Brandon Braithwaite
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City of Hutchinson's School Road SW has a half mile corridor between Roberts Rd and
South Grade Road that serves attendees of an early childhood family education center; two
Elementary Schools; the Middle School; the High School; an alternate public academy high
school; three churches; and a residential neighborhood. This corridor is extremely congested
during school start and end times, can be better designed for all forms of transportation, and the
roadway is in current need of repairs. Repairs are currently slated for 2030 in the Capital
Improvement plan and School Road is State Aid Eligible.
This is Phase 1 of a possible 2 phased study in 2026 and 2027 to solicit input from City, School,
Stakeholders, and Community. This Phase 1 study aims to understand current issues, analyze
the corridor, and ultimately sketch two potential design concepts that meet state aid
requirements along with final report that will guide future decision making.
Depending on the results of Phase 1, the City may feel comfortable proceeding directly into
design services. If not, a possible Phase 2 of additional input solicitation and alternative
refinement might be needed. Design for this project is assumed during 2028 and 2029 with
construction anticipated for the 2030 season.
BOARD ACTION REQUESTED:
Approval of Engineering Services Agreement with Apex Engineering Group for School Road SW
Corridor Study Phase 1
Fiscal Impact: $ 56,266.00 Funding Source: 446-4300-90530
FTE Impact: Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost: $ 56,266.00
Total City Cost: $ 56,266.00 Funding Source: 446-4300-90530
Remaining Cost: $ 0.00 Funding Source: N/A
A x=
Engineering Group
Water I Transportation I Municipal
December 16, 2025
Mike Stifter
City of Hutchinson
Public Works Director
111 Hassan Street SE
Hutchinson, MN 55350
RE: Letter of Agreement for School Road SW Corridor Study Phase 1
Dear Mr. Stifter:
12900 Whitewater Drive
Suite #325
Minnetonka, MN 55343
On behalf of Apex Engineering Group (Apex), I welcome the opportunity to provide you with
the following scope of services and associated fee approach relative to studying an existing
segment of the School Road SW corridor (South Grade Road to Roberts Road). From our
perspective, this transportation study effort should be administered in a phased approach to
allow for deliberate engagement and cognizant project development with appropriate
decision -making thresholds. This should ensure that City of Hutchinson and McLeod County
representatives along with other stakeholders have sufficient opportunities and timeframes
to provide valuable input and relative considerations throughout the study process.
Please note that this letter's contents have been composed to address aspects of Phase 1 of
a corridor study's typical activities. Looking forward, if the City elects to continue the
development of this study and related infrastructure improvements, we currently foresee
that Phase 2 will consist of some or all of the below noted efforts/items:
• Topographic survey
• Traffic counts
• Intersection control evaluations (ICE reports)
• Additional stakeholder meetings/outreach
• Feasibility/alternatives analysis
• Geometric layouts
• Preliminary design
• Construction cost estimations
At this time, it is our understanding that City Public Works leadership anticipate forthcoming
improvements to the above referenced corridor and its intersections with other roadways.
Thus, initiating a comprehensive analysis of corridor traffic/user dynamics and potential
safety improvements seems to definitely be in the City's overall best interest as the
development of corresponding projects begins. Based on the scope of services below, Apex
leadership is confident that the components of this study effort can be completed on or
before July 31, 2026 (contingent on the timely approval of this agreement).
Scope of Services
Task 1— Information Gathering & Site Visit
1.1 Compilation of relative adjacent parcel information, applicable GIS files, and past
roadway/utility construction plans (City assistance).
1.2 Administer a Gopher State One Call to identify existing private utilities and their
approximate locations.
1.3 Possibly capture drone aerial footage of the corridor if desired and deemed viable
by City staff (actual cost to be approved at that time).
1.4 Apex staff (3 individuals) site visit to review corridor features, traffic/user dynamics,
utility locates, and other analysis considerations.
1.5 Information gathering and site visit follow-up discussion with City staff (Teams
meeting).
Task 2 — Agency/Stakeholder Engagement & Involvement
2.1 City staff (including Hutchinson Police Department) outreach to identify specific user
needs, functionality expectations, traffic operations, crash data, etc. (in -person
meeting).
2.2 School District representatives outreach to identify specific observations, site traffic
issues (ingress/egress), general concerns, etc. (in -person meeting).
2.3 McLeod County Engineer outreach to review viable and justifiable improvements at
the intersection of School Road and South Grade Road along with any general traffic
flow/safety input (in -person meeting).
2.4 Administer public informational meeting to gather feedback from adjacent property
owners and interested parties ("open house" style).
Task 3 — Formalization of Project Understanding & Goals/Objectives
3.1 Draft project understanding criteria and anticipated goals/objectives ("needs and
purpose") along with summarizations of the results of Tasks 1 and 2.
3.2 Provide the initial project understanding and goals/objectives to City staff, School
District representatives, and the McLeod County Engineer for their review and
input.
3.3 Formal documentation of overarching project understanding and goals/objectives
with supporting information (Technical Memorandum #1 submittal).
Task 4 — Corridor Analysis & Concepts Development (School Road SW - South Grade Road
to Roberts Road)
4.1 Per the City -provided information (see above), create corridor base mapping
(AutoCAD Civil 3D) and graphical basis.
4.2 Per established understandings and goals/objectives, analyze the corridor in a
comprehensive manner that accounts for the variety of users and traffic dynamics.
4.3 Develop two roadway corridor concepts (preliminary geometric graphics per
Minnesota State Aid Standards) that implement appropriate intersection
improvements and sufficient pedestrian/bicycle facilities.
4.4 Administer concepts review meeting with City staff (Teams meeting).
4.5 Compile initial corridor analysis and concept development information along with
supporting materials (Technical Memorandum #2 submittal).
Page 2 of 6
Task 5 — Final Review & Documentation
5.1 Review TM #2 (South Grade Road to Roberts Road) with City staff, School District
representatives, and the McLeod County Engineer (in -person meeting).
5.2 Present the contents of TM #2 with supporting materials, such as layouts, graphics,
handouts, etc., at a public informational meeting ("open house" style).
5.3 Document open house comments and address per City staff's guidance.
5.4 Compile the relative contents of TM #1 and #2 along with recent input, potential
considerations, final recommendations, and possibly references to McLeod County's
parallel corridor study efforts (CSAH 7 — CSAH 115 to South Grade Road) into a draft
Final Report submittal.
5.5 Administer a corridor study overview with City policymakers during a Council
meeting in June of 2026 (document associated questions and input).
5.6 Completed Final Report to be provided to City staff for their review and acceptance.
Fee Approach
The total estimated fee amount for the City of Hutchinson is $56,266.00 (not -to -exceed
without formal approvals). Please note that this includes all labor, materials, and
reimbursable expenses necessary to complete the previously described Scope of Services. If
necessary, Apex leadership will advise when additional services are deemed appropriate and
will not proceed unless approved by City of Hutchinson representatives in writing. Potential
additional scope amendments would be billed per Apex's Standard Hourly Rates as they
exist at the time services are rendered.
Page 3 of 6
General Terms & Conditions
1.01 Payment Procedures
A. Invoices: Engineer shall prepare invoices in accordance with its standard invoicing practices and
submit the invoices to Owner on a monthly basis. Invoices are due and payable within 30 days of
receipt. If Owner fails to make any payment due Engineer forservices and expenses within 30 days
after receipt of Engineer's invoice, then the amounts due Engineer will be increased at the rate of
1.0% per month (or the maximum rate of interest permitted by law, if less) from said thirtieth day.
In addition, Engineer may, after giving seven days written notice to Owner, suspend services under
this Agreement until Engineer has been paid in full all amounts due for services, expenses, and
other related charges. Owner waives any and all claims against Engineer for any such suspension.
Payments will be credited first to interest and then to principal.
2.01 Termination
A. The obligation to continue performance under this Agreement may be terminated:
1. For cause,
a. By either party upon 30 days written notice in the event of substantial failure by
the other party to perform in accordance with the Agreement's terms through no
fault of the terminating party. Failure to pay Engineer for its services is a
substantial failure to perform and a basis for termination.
b. By Engineer:
1) upon seven days written notice if Owner demands that Engineer furnish or
perform services contrary to Engineer's responsibilities as a licensed
professional; or
2) upon seven days written notice if the Engineer's services for the Project are
delayed for more than 90 days for reasons beyond Engineer's control.
Engineer shall have no liability to Owner on account of a termination by Engineer
under Paragraph 3.01.A.1.b.
Notwithstanding the foregoing, this Agreement will not terminate as a result of a
substantial failure under Paragraph 3.01.A.1.a if the party receiving such notice
begins, within seven days of receipt of such notice, to correct its substantial failure
to perform and proceeds diligently to cure such failure within no more than 30 days
of receipt of notice; provided, however, that if and to the extent such substantial
failure cannot be reasonably cured within such 30 day period, and if such party has
diligently attempted to cure the some and thereafter continues diligently to cure
the some, then the cure period provided for herein shall extend up to, but in no case
more than, 60 days after the date of receipt of the notice.
2. For convenience, by Owner effective upon Engineer's receipt of written notice from
Owner.
B. The terminating party under Paragraph 3.01.A may set the effective date of termination at a
time up to 30 days later than otherwise provided to allow Engineer to complete tasks whose
value would otherwise be lost, to prepare notes as to the status of completed and uncompleted
tasks, and to assemble Project materials in orderly files.
Page 4 of 6
C. In the event of any termination under Paragraph 3.01, Engineer will be entitled to invoice Owner
and to receive full payment for all services performed or furnished in accordance with this
Agreement and all reimbursable expenses incurred through the effective date of termination.
3.01 General Considerations:
A. The standard of care for all professional engineering and related services performed or furnished
by Engineer under this Agreement will be the care and skill ordinarily used by members of the
subject profession practicing under similar circumstances at the some time and in the some locality.
Engineer makes no warranties, express or implied, under this Agreement or otherwise, in
connection with Engineer's services. Subject to the foregoing standard of care, Engineer and its
consultants may use or rely upon design elements and information ordinarily or customarily
furnished by others, including, but not limited to, specialty contractors, manufacturers, suppliers,
and the publishers of technical standards.
B. This Agreement is to be governed by the law of the state or jurisdiction in which the Project is
located.
C. All documents prepared or furnished by Engineer are instruments of service, and Engineer retains
an ownership and property interest (including the copyright and the right of reuse) in such
documents, whether or not the Project is completed. Owner may make and retain copies of
Documents for information and reference in connection with use on the Project by Owner. Owner
shall have a limited license to use the documents on the Project, extensions of the Project, and for
related uses of the Owner, subject to receipt by Engineer of full payment for all services relating to
preparation of the documents and subject to the following limitations: (1) Owner acknowledges
that such documents are not intended or represented to be suitable for use on the Project unless
completed by Engineer, or for use or reuse by Owner or others on extensions of the Project, on any
other project, or for any other use or purpose, without written verification or adaptation by
Engineer; (2) any such use or reuse, or any modification of the documents, without written
verification, completion, or adaptation by Engineer, as appropriate for the specific purpose
intended, will be at Owner's sole risk and without liability or legal exposure to Engineer or to its
officers, directors, members, partners, agents, employees, and consultants; (3) Owner shall
indemnify and hold harmless Engineer and its officers, directors, members, partners, agents,
employees, and consultants from all claims, damages, losses, and expenses, including attorneys'
fees, arising out of or resulting from any use, reuse, or modification of the documents without
written verification, completion, or adaptation by Engineer; and (4) such limited license to Owner
shall not create any rights in third parties.
D. To the fullest extent permitted by law, Owner and Engineer (1) waive against each other, and the
other's employees, officers, directors, agents, insurers, partners, and consultants, any and all
claims for or entitlement to special, incidental, indirect, or consequential damages arising out of,
resulting from, or in any way related to the Project.
4.01 Total Agreement:
A. This agreement (including any expressly incorporated attachments), constitutes the entire
agreement between Owner/Client and Engineer and supersedes all prior written or oral
understandings. This Agreement may only be amended, supplemented, modified, or canceled by
a duly executed written instrument.
Page 5 of 6
Authorization to Proceed
If you agree to the information presented in this Letter of Agreement including the Scope of
Services, Fee Approach, and General Terms & Conditions we would appreciate a signed
electronic copy of this document.
Sincerely,
Apex Engineering G/roup, Inc.
Josh Olson, PE
Vice President
Approval: City of Hutchinson
Signature:
Name:
Title:
Date:
Page 6 of 6
P.
Summary of Estimate Fees and Expenses (12/16/25)
Englneering Group Hutchinson School Road SW Corridor Study Phase 1
Job Classification:
Senior
Engineer II
Senior
Engineer I
DesignEn
gineer
Senior
En gi .,e,ff a g
Technicuan
Graduate
Engineer
Task Code
$245.00 $232.00 $188.00 $166.00 $153.00
Description
1
Information Gathering & Site Visit
1.1
Compilation ofCity-provided parcel information, applicable GIS files, and past roadway/utility plans.
1
2
$ 494.00
1.2
Administer GSOC and coordinate gathering/establishing location info (City topo survey)
1
2
$ 494.00
1.3
Possibly capture drone aerial footage ifCity desires (actual cost to be approved at that time).
$ -
1.4
Apex staff(3 individuals) site visit and observations documentation
4
6
6
$ 2,974.00
1.5
Meeting with City staffto review Task 1 efforts and determine follow-up (Teams meeting)
2
2
4
$ 1,706.00
Subtotal:
2
6
12
10 $ 5,668.00
2
A en /Stakeholder Engagement & Involvement
2.1
Ci Staff include Hutchinson Police Department) outreach and documentation in meeting)
2
2
6
$ 2,082.00
2.2
School District Representatives outreach and documentation in meetin
2
2
6
$ 2,082.00
2.3
McLeod Cow En in outreach and documentation in meetin
2
2
6
$ 2,082.00
2.3
Administer nblic informational meetin with adjacent property owners and interested parties.
2
2
6
$ 2,082.00
$ 8,328.00
Subtotal:
8
8
24
3
Formalization of Pr ject Understanding & Goals/Objectives
3.1
Draft project understanding criteria and anticipated goals/objectives
1
2
8
$ 1,213.00
3.2
Provide project understanding and goals/objectives to stakeholders for their review and input
1
2
4
$ 1,461.00
3.3
Formal documentation ofresults with supporting iuf lion (Technical Memorandum lil)
1
2
12
$ 2,965.00
Subtotal:
3
6
24
$ 6,639.00
4
School Road Corridor Analysis & Concepts Development (South Grade Road to Roberts Road)
4.1
Per the City -provided information, create corridor base mapping and graphical basis.
2
16
$ 3,032.00
4.2
Comprehensive corridor analysis to account for the variety ofusers and traffic dynamics
4
12
8
$ 4,408.00
4.3
Develop preliminary roadway and intersection concepts (2) with pedestrian/bicycle facilities
2
4
12
24
$ 7,346.00
4.4
Administer a concepts review meeting with City staff (Teams meeting)
1
1
4
2
2
12
2
8
36
16
32
$ 1,085.00
$ 2,213.00
$ 18,084.00
4.5
Formal documentation ofresults with supporting materials (Technical Memorandum 72)
Subtotal:
5
Final Review & Documentation
Review TM N2 (South Grade Road to Roberts Road) with direct stakeholders (in -person meeting) 2
$ 2,458.00
$ 31850.00
$ 2,440.00
5.1
2
8
2
8
8
4
8
5.2
Present the contents ofTM 42 with supporting materials at a public meeting ("open house, style)
2
5.3
Address open house and City staffcomments
5.4
Compile the relative contents ofTM Nl and 42 along with possible references to McLeod County's parallel
corridor study efforts (CSAH 7 -CSAH 115 to SGR) into a draft Final Report submittal.
1
2
8
10
$ 3,743.00
5.5
Administer a study overview with City policymakers during a Council meeting in June of2026
1
2
6
$ 1,837.00
5.6
Completed Final Report to be provided to City stafffor their review and acceptsoce.
1
2
4
6
$ 2,379.00
Subtotal:
7
18
38
24
$ 16,707.00
Diced Labor Totals 24 50 134 16 66 1 290
$ 55,426.00
Diced Expenses
Mileage (Approximately 12 individual trips x 100 miles round trip x $0.70/mile) $ 840.00
City of HatchiDsoD
Total Engineering Services Costs $ 56,266.00
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Joint Powers Agreement with Mcleod County on a Reclamite Road Treatment
Agenda Item:
Project
Department: Public Works
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Donovan Schuette
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The Public Works department has a reclamite road preservative application plan for next year. In
order to get better pricing, Mcleod County has requested to add the new asphalt surface at the
fairgrounds to the project. Their portion of the project would be 8,187 square yards which they
would pay back to the city at the per square yard project rate.
BOARD ACTION REQUESTED:
Consent to enter into JPA with Mcleod County on our 2026 reclamite project
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 9,169.44
Total City Cost: Funding Source: N/A
Remaining Cost: $ 9,169.44 Funding Source: Mcleod County
JOINT POWERS AGREEMENT
FOR CONSTRUCTION IN THE MCLEOD COUNTY FAIRGROUNDS
(840 CENTURY AVE SW, HUTCHINSON, MN 55350)
THIS JOINT POWERS AGREEMENT FOR CONSTRUCTION IN THE MCLEOD COUNTY
FAIRGROUNDS, ("Agreement") is made and entered into as of the day of 12025,
by and between the City of Hutchinson ("City"), and the County of McLeod ("County") (each sometimes
hereinafter called "party" and both sometimes collectively "parties") the parties being governmental and
political subdivisions of the State of Minnesota.
WITNESSETH:
WHEREAS, each of the parties has the authority to construct, maintain, repair, and improve public
streets within their respective jurisdictions; and
WHEREAS, the McLeod County Fairgrounds are located in part within the Corporation limits of
City; and
WHEREAS, the parties desire to undertake a joint roadway improvement project involving,
reclamite asphalt treatment, and other incidentals, and to share the costs of such improvement as herein
provided; and
WHEREAS, the City will be the lead agency for the project and will prepare construction plans,
specifications with an estimate of cost for the reclamite asphalt treatment portion of the projects.
WHEREAS, the County will prepare through its County Engineer, Andrew Engel, construction
inspection, for the McLeod County Fairgrounds reclamite asphalt treatment portion of the project.
WHEREAS, the authority of the parties to enter into this Agreement is provided by Minnesota
Statutes, sections 471.59.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other
contained in this Agreement and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do covenant and agree as follows:
ARTICLE I
THE AGREEMENT
Section 1.01. Purposes. The purpose of this Agreement is to define the rights and obligations of
the City and the County with respect to the Project and the sharing of the costs of the Project.
Section 1.02. Cooperation. The City and the County shall cooperate and use their best efforts to
ensure the most expeditious implementation of the various provisions of this Agreement. The parties agree
in good faith to undertake resolution of disputes, if any, in an equitable and timely manner.
Section 1.03. Relationship To Other Contracts. The City and the County acknowledge that
Contract Documents will be entered into by the City on behalf of the parties with respect to the Project, and
that Change Orders or other documents may be entered into by the parties, or by the City on behalf of the
parties, with respect to the Project. This Agreement shall be construed so as to give the fullest effect to its
provisions, consistent with the provisions of the other contracts and documents referred to above.
Page 1 of 6 JPA Hutchinson.docx
Section 1.04. Term. The term of this Agreement shall be for a period commencing on the date
hereof and terminating on the date the Project is completed, accepted by the parties and all amounts owed
by one parry to the other have been paid in full.
Section 1.05. Recitals. The above recitals are true and correct as of the date hereof and constitute
a part of this Agreement.
Section 1.06. Enabling Authority. Minnesota Statutes, Section 471.59, authorizes two or more
governmental units to jointly exercise any power common to the contracting Parties.
ARTICLE II
DEFINITIONS
Section 2.01. Definitions. In this Agreement the following terms shall have the following meanings
unless the context requires otherwise:
a) Agreement: this Agreement, as it maybe amended, supplemented, or restated from time to time.
b) Change Order: a written order to the Contractor approved by both parties hereto and signed by
the City Representative on behalf of the parties authorizing a change in the work included within
the Contract Documents and/or an adjustment in the price and/or an adjustment in the construction
schedule, issued after execution of the contract for the construction of the Project.
c) Contract Documents: drawings; specifications; general and special conditions; addenda, if any;
Change Orders; and the construction contract for the Project; approved by the parties, or their
respective representatives.
d) Contractor: the person or entity which is awarded the contract for the construction of the Project.
e) City: the City of Hutchinson.
f) City Representative: Mike Stifter, Public Works Director.
g) County: McLeod County.
h) County Representative: Andrew Engel, McLeod County Engineer/Public Works Director.
i) Project: reclamite asphalt treatment, and other incidentals required to rehabilitate roadways in the
McLeod County Fairgrounds.
j) Construction Costs: costs paid to the prime contractor for actual work performed based on the
awarded bid prices.
k) Project Costs: all other costs for and associated with the construction of the Project, including but
not limited to; design, geotechnical analysis, construction inspection/engineering, contract
administration, topographic surveying, construction staking, materials testing, bidding/advertising,
and permitting.
1) Right of Way Acquisition: the process of obtaining Right of Way (ROW), including but not
limited to: surveying property, drawing parcel maps, researching titles, appraising parcels,
Page 2 of 6 JPA Hutchinson.docx
negotiating with property owners, purchasing parcels, working with potential relocation,
condemnation proceedings, and other incidentals.
m) Uncontrollable Circumstances: the occurrence or non-occurrence of acts or events beyond the
reasonable control of the party relying thereon, and not the result of willful or negligent action or
inaction of the party claiming the event as an Uncontrollable Circumstance, that materially
adversely affects the performance of the party claiming the event as an Uncontrollable
Circumstance including but not limited to the following:
1. Acts of God, including, but not limited to floods, ice storms, blizzards, tornadoes,
landslides, lighting and earthquakes (but not including reasonably anticipated weather
conditions for the geographic area), riots insurrections, war or civil disorder affecting the
performance of work, blockades, power or other utility failure, and fires or explosions.
2. The adoption of or change in any federal, state, or local laws, rules, regulations, ordinances,
permits, or licenses, or changes in the interpretation of such laws, rules, regulations,
ordinances, permits, or licenses by a court or public agency having appropriate jurisdiction
after the date of the execution of this Agreement.
3. A suspension, termination, interruption, denial, or failure of renewal of any permit, license,
consent, authorization, or approval essential to the construction of the Project.
4. Orders and/or judgment of any federal, state, or local court, administrative agency, or
governmental body, provided, however, that the contesting in good faith by such party of
any such order and/or judgment shall not constitute or be construed to constitute a willful
or negligent action or inaction of such party.
5. Strikes or other such labor disputes shall not be considered an Uncontrollable
Circumstance, unless such strike or labor dispute involves persons with whom the parties
have no employment relationship and the parties, or either of them, cannot, using best
efforts, obtain substitute performance.
ARTICLE III
CONSTRUCTION
Section 3.01. Contract Award. In accordance with the applicable provisions of Minnesota Statutes
Ch. 160, City will cause bids to be received by it for the construction of the Project shall award the contract
for the construction of the Project to the lowest responsible bidder.
Section 3.02. Proiect Construction. Subject to Uncontrollable Circumstances, City shall cause
the Project to be constructed in accordance with the Contract Documents.
Section 3.03. Construction Administration. City shall perform appropriate Project construction
administration services, including but not limited to processing Change Orders and Contractor pay requests.
Section 3.04. Construction Inspection.
a) County shall perform appropriate surveying and Project construction inspection services for all
construction activities associated with the reclamite asphalt treatment, and other incidentals on the
McLeod County Fairgrounds roadways.
Page 3 of 6 JPA Hutchinson.docx
b) City shall perform appropriate surveying and Project construction inspection services for all other
construction activities associate with the project.
c) Construction Inspection shall include materials testing.
d) Construction inspection services shall include, without limitation, representation of the parties
hereto with regard to activities of the Contractor at the construction site, periodic observations of
the work at the construction site, and initiate appropriate action to present or have corrected as
appropriate, any work observed not to be in accordance with the Contract Documents. Parties shall
not be responsible for the acts or omissions of the Contractor nor shall the Parties be responsible
for construction means, methods, techniques, sequences, procedures or safety precautions at the
construction site.
ARTICLE IV
PROJECT COSTS
Section 4.01. Allocation.
a) The Project Costs shall be allocated between the parties in accordance with Exhibit 1. The costs
shown in this agreement are not actual costs but are estimated costs only. The costs to be paid by
each party are actual costs of the Project based on final Project quantities and the awarded bid
prices.
b) The County agrees to pay for, and/or provide, and/or commit to the following:
1. Reclamite Asphalt Treatment in the McLeod County Fairgrounds.
Section 4.02. Payments to Contractor. City shall make progress payments to the Contractor and,
upon approval of both parties hereto, the final payment to the Contractor in accordance with the Contract
Documents.
Section 4.03. Reimbursement. The County shall pay to City the City's share of the construction
costs and Project Costs. The reimbursement schedule shall be as follows:
a) During each month of the term for the construction project, City will bill the County for its share
of the construction costs. The County shall reimburse the City within thirty (30) days after receipt
by County of each itemized written invoice therefore from the City.
b) The City shall request reimbursement from the County in writing.
ARTICLE V
GENERAL PROVISIONS
Section 5.01. Notices. All notices or communications required or permitted pursuant to this
Agreement shall be either hand delivered or mailed, return -receipt requested, to the following addresses:
City: Mike Stifter County: Andrew Engel
Public Works Director County Engineer/Public Works Director
City of Hutchinson McLeod County Public Works
I I I Hassan St SE 1400 Adams Street SE
Hutchinson, MN 55350 Hutchinson, MN 55350
Page 4 of 6 JPA Hutchinson.docx
Either party may change its address or authorized representative by written notice delivered to the other
party pursuant to this Section 5.01.
Section 5.02. Counterparts. This Agreement may be executed in more than one counterpart, each
of which shall be deemed to be an original but all of which taken together shall be deemed a single
instrument.
Section 5.03. Survival of Representations and Warranties. The representations, warranties,
covenants, and agreements of the parties under this Agreement, and the remedies of either party for the
breach of such representations, warranties, covenants, and agreements by the other party shall survive the
execution and termination of this Agreement.
Section 5.04. Non -Assignability. Neither the County nor the City shall assign any interest in this
Agreement nor shall transfer any interest in the same, whether by subcontract, assignment or novation,
without the prior written consent of the other party. Such consent shall not be unreasonably withheld.
Section 5.05. Alteration. Any alteration, variation, modification or waiver of the provisions of the
Agreement shall be valid only after it has been reduced to writing and duly signed by all parties.
Section 5.06. Waiver. The waiver of any of the rights and/or remedies arising under the terms of
this Agreement on any one occasion by any party hereto shall not constitute a waiver or any rights and/or
remedies in respect to any subsequent breach or default of the terms of this Agreement. The rights and
remedies provided or referred to under the terms of this Agreement are cumulative and not mutually
exclusive.
Section 5.07. Severability. The provisions of this Agreement are severable. If any paragraph,
section, subdivision, sentence, clause or phrase of this Agreement is for any reason held to be contrary to
law, or contrary to any rule or regulation having the force and effect of law, such decision shall not affect
the remaining portions of this Agreement.
Section 5.08. Interpretation According to Minnesota Law. This Agreement shall be interpreted
and construed according to the laws of the State of Minnesota.
Section 5.09. Entire Agreement. This Agreement shall constitute the entire agreement between
the parties and shall supersede all prior oral or written negotiations.
Section 5.10. Final Payment. Before final payment is made by the City to the Contractor, the
Contractor shall provide to City a certificate of compliance from the Commissioner of Revenue certifying
that the Contractor and any out-of-state subcontractors have complied with the provisions of Minnesota
Statutes, Section 290.92.
Section 5.11. Headings. The headings to the various sections of this Agreement are inserted only
for convenience of reference and are not intended, nor shall they be construed, to modify, define, limit, or
expand the intent of the parties as expressed in this Agreement.
Section 5.12. Further Actions. The parties agree to execute such further documents and take
such further actions as may reasonably be required or expedient to carry out the provisions and intentions
of this Agreement, or any agreement or document relating hereto or entered into in connection herewith.
Section 5.13. Default and Withdrawal. Default in this Agreement may occur when a Party fails
to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the
performance of the Agreement. Unless the Party's default is excused by the other non -defaulting Party, the
Page 5 of 6 JPA Hutchinson.docx
non -defaulting Party may, upon written notice to the defaulting Parry representative list herein, cancel this
Agreement in its entirety as indicated below.
Each Party to this agreement reserves the right to withdraw from and cancel this agreement within 30 days
from the opening of bids for the project in the event either or both Parties consider any or all bids
unsatisfactory; the withdrawal form or cancellation of the agreement to be accomplished by either or both
Parties within 30 days of opening of bids by serving a written notice thereof upon the other, unless this right
is waved by both parties in writing.
Section 5.13. Parties in Interest. This Agreement shall be binding upon and insure solely to the
benefit of the parties hereto and their permitted assigns, and nothing in this Agreement, express or implied,
is intended to confer upon any other person any rights or remedies of any nature under or by reason of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written.
Attest:
By:
Name:
Title:
CITY OF HUTCHINSON
By:
Name:
Title:
Date:
McLEOD COUNTY
0
By:
Name: Z JX. , o (/�� 4ar
Title: C�.} r-
Date: / o l
By:
Name: S kM 6n�
Title: QY1 "ri 1 +t)r
Date:
Page 6 of 6
JPA Hutchinson.docx
EXHIBIT 1
Entity
Unit
Quantity
Unit Price
Total
City of Hutchinson (Various Roads)
Sq Yds
100000
$1.12
$112,000.00
McLeod County Fairgrounds
Sq Yds
8187
$1.12
$9,169.44
Total
1 $121,169.44
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Purchase Order for Airport South Hangar and Taxiway Repair
Agenda Item:
Department: Public Works
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff ❑
Consent Agenda 0
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Consent for purchase order of $159,500 for mill and asphalt overlay of south hangar and taxiway
area at the airport to Hanson Paving. Bids were solicited from area paving companies and
Hanson was the low bid.
This project is supported by a recently approved MnDOT Aeronautics grant.
See project map for areas affected.
BOARD ACTION REQUESTED:
Approval of purchase order
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 159,500.00
Total City Cost: $ 44,850.00 Funding Source: Miscellaneous Infrastructure Fund
Remaining Cost: $ 114,650.00 Funding Source: Mndot Aeronautics
Quote
HANSON PAVING
3636 QUAIL RD NE
SAUK RAPIDS, MN 56379
(320) 259-7874
Hutchinson Public Works
Attn: Donovan Schuette
If you have any questions
please contact Jeff at
320-249-1290
1 HANSON
-U- PAVING
Customer Phone
Description
320-583-8982
Paving Project for Hutchinson MN Airport
Approximately 12,520 Sq yards
Price includes: Mill 1.5 inches of existing asphalt
Sweep, Tac, and Pave 1.5 inches of new asphalt overlay
Improvement - No Sales Tax Chargeable
Date Estimate #
11/4/2025 17592
Member Since 2007
Quote good for 30 days
Cash, check, credit card accepted. Please note a 2% processing fee
will be applied to any credit card transactions.
Qty I Cost I Total
159,500.00 1 159,500.00
0.00% 1 0.00
**It can take up to 2 years for asphalt to fully cure hard
**New asphalt may be parked on after 14 days but be careful on sunny days as the asphalt when curing will get soft.
**Do NOT put tables and chairs on newly laid asphalt. **New asphalt may be driven ACROSS after 2 to 3 days but not parked on.
** After Seal Coat application wait 2 full days before using the driveway
**OWNER RESPONSIBLE FOR ALL SPRINKLER HEADS AND PRIVATE UTILITIES
**NO BLACK DIRT, SEED, OR SOD INCLUDED
**SOME JOBS MAY REQUIRE DRAINAGE CORRECTION INTO GRASS/LAWN AREA
**CANNOT GUARANTEE COMPLETE DRAINAGE WITHOUT A 2% SLOPE
**PERMITS NOT INCLUDED
**NOT RESPONSIBLE FOR DAMAGE TO EXISTING ASPHALT/CONCRETE THAT WE MAY HAVE TO CROSS
HANSON PAVING ASPHALT WARRANTY
B signing this quote you are accepting the payment terms (including an 5 year warranty on major deterioration of asphalt
y g g q y p g p y li y 1 year warranty on spider cracking
accrued finance charges) and agreeing to be personally liable for the obligations Within the first year it is possible for the asphalt to get relief
Signature & Date cracks - these are not warrantied. Relief cracks may occur due
to freezing during winter.
Seal coat applications are not warrantied.
Bertram Asphalt Company Cell: 320-292-1311
P.Q. Box 162 Email: bertramas halt mail.com
Paynesville, MN 56362
Proposal
Company Name: Hutchinson City Airport Date: November 18th, 2025
Billing Address: 1400 Adams Street S.E.
Hutchinson, MN 55350
Contact Person: Donovan Schuette (Public Works Manager)
Cell: 320-583-8982 E n iL dschuette@hutchinsommn.gov
Office: 320-234-4473 Department: 320-234-4219
Project Address: Hutchinson Airport @ 1700 Butler Field Drive Hutchinson, MN 55350 — as per attached map
Project Type: Mill and Overlay Paving @ 1.5" thickness
We hereby submit specifications and auotations for the followina:
Description of work to be Performed Unit Price
Mill and Overlay Paving @ 1.5" thick: S.F. 112,680 $184,965.00
Mill existing asphalt as needed to integrate with adjacent areas. Surface is swept clean.
CSS1H Tack material is applied to create a bond with the prepared surface.
Pave an average of a _1.5"_ asphalt mat. Paving will be done in one lift.
Compact asphalt mat.
Striping: (Not Included)
Note: Project pricing assumes that we get the entire project and we are able to do the entire project in one phase and one mobility.
Note: Project pricing assumes non modified hot mix asphalt.
Note: Project measurements are based off of city measurements of 12,520 square yards (112,680 square feet).
Note: "No parking" designation by the customer. Customer is responsible for removing cars and obstructions before we arrive on site.
Note: The overlay is figured on doing the whole parking lot at one time and shutting down the parking lot when we are there.
Note: Irrigation must be off 24 hours and obstructions moved prior to construction.
Note. Additional Mobilization charges may apply if stopped for irrigation, vehicles, or obstructions.
Note: Quote assumes one mobilization.
Note: This proposal does Not include any shouldering.
Note: There will be an extra charge for any base or base work that is needed.
Note: Fuel surcharge of 1% of contract price for every $0.25 increase at pump price over $5.00 for diesel fuel.
Note: Contracted prices are subject to repricing if the WTI oil pricing exceeds $125I13arrel at time of delivery.
Escalation Clause: This contract has been based an material costs at current market rates. Due to uncertain market conditions that are beyond our control and in the event
of future material price increases the responsible party agrees to pay for the escalations of material without a change order. This paragraph applies only to materials.
Exclusions: Bonds, permits, fees, surveying, staking, engineering, testing, soil corrections, sub grade corrections, shouldering or turf restoration, Irrigation systems, damage
to irrigation systems, location or relocation of underground lines, cables, or utilities, rock excavation, dewatering, traffic control, utility or structural sheeting, repair, or
adjustments, underpinning, buried debris, drain tile, footing insulation or waterproofing, separation fabrics, geotextife fabric removal, disposal, or installation, vapor barriers,
drainage layers, class V base materials other than listed above, hazardous materials, removal of contaminated soils, haul road or crane road construction, erosion control
other than listed above, gas, mechanical, electrical, or electrical excavation, lighting, curb, concrete, site fence, evening, night or weekend work, winter conditions.
We propose to furnish material and labor, complete in accordance with the above specifications, for the total lump sum of:
Total on All: $184,965.00
Note: See Bertram As halt Company Warranty Terms Qualifications and Construction Specifications,
By signing this contract, you are agreeing to the Bertram Asphalt Company Warranty Terms, Qualifications, and Construction Specifications.
Payment terms are 30% down and net 10 days on the remaining. Unpaid balances will accrue a late fee of 10% per month untV paid in full and shall be charged
on any balance 30 days past due_ Note: this proposal may be withdrawn if not accepted within 10 days- Any alteration or deviation from the above specifrcations
involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. The owner/ general contractor,
by acceptance of this proposal, agrees to pay all cost of collections, including reasonable attorney's fees incurred, in order to recover any amounts due or to
become due herein. All agreements are contingent upon strikes, accidents, weather or other delays beyond our control. Contractor to carry proper insurance
including Workers Compensation.
Authorized Signature:
Bill Bertram
Acceptance of Proposal: The above prices, specifications, conditions, and attached warranty qualifications are satisfactory and are hereby accepted.
You are authorized to do the work as specified. Payment will be made as outlined above.
Date of Acceptance: Signature:
Please take note: Any person or company supplying labor or materials for this improvement to your property may file a lien against your
property if that person or company is not paid for the contributions. Under Minnesota law you have the right to pay persons who supplied
labor and materials for the improvement directly and deduct the amount from the contract price, or withhold the amounts due them from
us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor or
materials for the improvement and who gave you timely notice.
a
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve/Deny Update to Exhibit A of Employee Uniform & Clothing Policy
Agenda Item:
Department: Admin
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Kellie Wendland
Agenda Item Type:
Presenter: Kellie Wendland
Reviewed by Staff ❑
Consent Agenda
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Current policy for Employee Uniform & Clothing was approved in June 2022, and this request is
to update Exhibit A only. No other updates need to be made to the policy, at this time.
Exhibit A has been updated with the following:
-Title changes to positions over the years
-Added positions for 2026 (IT, Engineering)
-Positions that had previously be omitted
A redlined version of Exhibit A is included to illustrate changes. In addition, a copy of the
Employee Uniform & Clothing Policy with the updated Exhibit A is included.
BOARD ACTION REQUESTED:
Approve/Deny Update to Exhibit A of Employee Uniform & Clothing Policy
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
Exhibit A
Clothing Allowance Categories
Cateaory I: Field Services — Phvsical Work
Compost Operations Supervisor GeeFd+nater
Compost Equipment Operator
Compost Forklift Operator
Compost Laborer
Engineering Specialist
Equipment Mechanic
Facilities Manager
Wastewater Maintenance Operator
Maintenance Lead Operator (PW)
Parks Maintenance Equipment Operator
Parks Maintenance Lead Speoial+st Operator
Parks Manager Superviser
Public Works Maintenance Operator
PT Compost Facility Maintenance Asst
Senior Engineering Specialist
Senior Public Works Maintenance Specialist
Senior Wastewater Operator
Senior Water Plant Operator
Vegetation Management Specialist
Wastewater Laboratory Specialist
Wastewater Maintenance Specialist
Water Plant Operator
Wastewater Plant Operator
\/�/�4or/\/�/�c4onro4or Torhnini�n
Cateaory II: Field Services — Public Contact/Less Intensive Phvsical Work
Aquatics & Rec Programmer DrniontIER1 iirn n m o n tal'4Reg lateF„ MaRa e
Building Inspector PT PRCE Custodian — Eye.pt ron+or
Building Official Public Outreach & Education Coordinator
Compost Operations Specialist Public Works Manager
Inspector Wastewater Manager
Police Officers Water Manager
PT- Ronro;;40nn PRCE Facility Maint Technician
PRCE U;mpt Fac. Oper. Specialist
Cateaory III: Office/Administrative
Administrative Secretary - Public Works
Build. and Plan. Admin. Spec. Permit To^"ni^ian
City Administrator
City Attorney
City Clerk/Paralegal E es sst4-l2aralegal
City Engineer/Asst PW Director
Compost Manager
Economic Development Director
=1'l�Re��A�R�-��o Tonhnininn
€MergeRDTspatGher F=T- 8-, PT -
Engineering Administrative Specialist
Event Center/Senior Center Programmer Geed
Finance Director
Human Resources Director
Human Resources/Admin Technician
Information Technology Director
Information Technology Technician Spes+al+st
Lead Police Administrative Specialist
Licensing Clerk/Tech FT/PT
Liquor Sales Manager
Motor Vehicle Deputy Registrar
Planning Director
Police Data Release Coordinator
Police Investigations Specialist
Police Supplemental Services Specialist
PT Compost Scale Operator
PT Liquor Sales Clerk
Public Works Director/Gity Cnninoor
PRCE R, LQr-reatfon Facilities Maint. OperatieRs Manager
PRCE Office Specialist
Recreation Manager cor„ir+oc (`nnrrlin�4nr
Sales & Marketing Specialist
Senior Accounting Specialist
Senior Liquor Sales Clerk
Parks/Recreation/Community Ed Director
Payroll/Benefits Specialist
Server/Network Technician
Sr Network Administrator
Utility Billing Specialist
Uniform Service
Fire Chief
Fire Inspector/Fire Fighter
I espital SeG irity G iard CT/PT
Police Cadet
Police Officer FT/PT
Exhibit Amended April 2024 December 2025
Police Sergeant
Police Lieutenant
Police Chief/Emergency Management Director
PT Community Service Officer (CSO)
EMPLOYEE UNIFORM & CLOTHING POLICY
POLICY OVERVIEW
The City of Hutchinson recognizes the need to provide clothing and/or uniforms to some employees in order to
prevent damage to personal items as a result of the work required for certain jobs as well as to help promote
identification in the field.
The purpose of this policy is to identify which clothing items should be provided to employees and to provide
guidance for the appropriate acquisition of, or compensation for, such clothing.
Personal Protective Equipment (PPE) is not considered as a uniform or clothing, as defined in this policy, and is
separately addressed within city policy number 3.18. PPE will be provided by the City and is not a taxable benefit
to the employee.
INTERNAL REVENUE SERVICE (IRS)
When an employer provides uniforms/clothing or pays uniform/clothing allowances, Federal tax laws, rulings and
regulations stipulate that in order to be excludable from an employee's wages, the uniforms/clothing must be
require by the employer and cannot be adaptable for general use. If both these conditions are not met, the
value of the uniforms/clothing, or the amount of any allowance paid, must be recognized as compensation to the
employee and subject to federal and state taxes.
UNIFORMS
Uniforms are excluded from taxes if covered by an accountable plan, as defined by the IRS, and are specifically
required as a condition of employment. They cannot be worn or adaptable to general usage as ordinary clothing.
The value and upkeep of uniforms provided to law enforcement officers and firefighters are not taxable to the
employee. For the purpose of this policy, clothing with the official Police or Fire badge shall be considered an
excludable uniform if it is required to be worn for work duties and is prohibited for wear outside of work. Those
departments shall have separate policies addressing the issuance and maintenance of its uniforms.
Administrative employees, or any other employees within the Police and Fire departments who are not required
to wear an excludable uniform shall be subject to the Clothing section of this policy.
CLOTHING
The IRS mandates that clothing which can be adaptable for general use as ordinary clothing must be included
as a taxable benefit to the employee. Simply having a City logo will not avoid the taxable benefit. Clothing
necessary for employees to perform their duties will be divided into two categories, which are both taxable to the
employee:
Clothing with City Logo
a. City departments will purchase the clothing and the employee will pay only the taxable benefit
based on the value of the clothing received.
b. Shall include the following logoed clothing:
i. Shirts, sweatshirts and jackets
ii. Hats or caps
c. Purchases must be made for exact quantities to be distributed to identified employees.
d. Each City department must coordinate clothing purchases with the Finance Department so that
employees receiving the clothing can be taxed appropriately.
e. Departments are not allowed to maintain an inventory of logoed clothing.
f. One shirt provided to an employee is considered by the IRS to be a de minimis benefit and
therefore exempt from taxes.
g. Safety wear items with the City logo and any clothing with the official Police or Fire logos are
excluded from this policy.
2. Clothing without City Logo
a. To be purchased by the employee using the employee's personal funds.
b. Shall include the following non-logoed clothing
i. Jeans and pants
ii. Shirts, sweatshirts, hats and caps
iii. Socks, belts and other miscellaneous personal items
iv. Footwear not identified as PPE
c. City purchasing powers shall not be used, including direct invoice, department purchasing cards
and house accounts at local retailers.
d. Employees will be reimbursed by a taxable clothing allowance as defined below.
EMPLOYEE CATEGORIES:
City employees will be classified in one of the following three categories when determining if a clothing allowance
is necessary. See ExhibitA for a listing of employee positions within each category.
1. Category I: Field Services — Physical Work
Includes positions that require the employee to spend most of his/her time in the field or in more industrial -
type settings, performing physical work. As a result, the wear and tear on clothing is more significant
than for other positions. There is also a need for recognition as a city employee (with a city logo) when
in public.
2. Category II: Field Services — Public Contact/Less Intensive Physical Work
Includes positions that require the employee to spend time in the field where public contact often occurs
and/or performing work where some wear and tear on clothing is expected, but where the physicality of
the role is not intense. For example, this may include engineers, laboratory employees, and building
inspectors/officials. There may be occasional needs for recognition as a city employee (with a city logo)
when in public.
3. Category III: Office/Administrative
Includes positions that require employees to spend the majority of their time in an office setting. There
may be occasional opportunities when recognition as a city employee (with a city logo) in public is helpful.
CLOTHING ALLOWANCE
From an administrative perspective, the least complicated method for obtaining such clothing and withholding
applicable taxes is the payment of a clothing allowance to each eligible employee through the payroll function.
The annual allowance amounts for each employee category are as follows:
Full -Time
• Category I: $300
• Category II: $180
• Category III: None
Part -Time Temp/Seasonal
$150 None
$90 None
None None
The clothing allowance rates identified above, which may be amended from time to time, shall be the maximum
amount the City will provide to an employee in one calendar year for clothing. If employees need to spend
beyond the allowance amounts for additional items, then the purchases will need to be made with personal funds
or they can wait for the next allowance to be issued.
ALLOWANCE PAYMENT
Clothing allowance checks will be issued two times during the budget year, in the months of January and July,
with each check at 50% of the allowance total. The check in January is intended to reimburse the cost of clothing
purchases made between July 1 and December 31. The check issued in July is intended to reimburse the cost
of clothing purchases made between January 1 and June 30.
Allowances will be prorated for new employees with start dates that occur within the six-month allowance period.
The proration will be based on the number of days employed within the six-month period.
An employee changing City positions that affects the clothing allowance category shall receive a prorated
allowance for the six-month period in which the transfer occurs. The proration will be based on the total number
of days employed in each position during the six-month period.
A clothing allowance shall be forfeited if an employee leaves employment with the City prior to the designated
dates of June 30 or December 31. There will be no prorated distribution of the allowance.
In the event of an employee retirement or death, a prorated allowance shall be paid. The proration will be based
on the number of days calculated to the last day worked during the six-month period.
EMPLOYEE RESPONSIBILITIES
• Employees must purchase their clothing on personal time outside of working hours.
• Employees shall be responsible for proper care, cleaning, alterations and repair of their clothing.
• Taxable clothing items are considered property of the employee and may be kept after employment has
ended.
• The City will not track items purchased with the clothing allowance. Rather, the City is compensating the
employee for assumed costs associated with his/her job, and the employee is responsible for purchasing
clothing necessary to perform City work duties.
• The employee may keep any unspent allowance as compensation.
• Employees shall abide by the City's Personnel Policy regarding appearance when purchasing clothing.
Policy approved by City Council, April 23, 2019
Revised, June 14, 2022
Exhibit A
Clothing Allowance Categories
Category I: Field Services — Physical Work
Compost Operations Supervisor
Compost Equipment Operator
Compost Forklift Operator
Compost Laborer
Engineering Specialist
Equipment Mechanic
Facilities Manager
Wastewater Maintenance Operator
Maintenance Lead Operator (PW)
Parks Maintenance Equipment Operator
Parks Maintenance Lead Operator
Parks Manager
Public Works Maintenance Operator
PT Compost Facility Maintenance Asst
Senior Engineering Specialist
Senior Public Works Maintenance Specialist
Senior Wastewater Operator
Senior Water Plant Operator
Vegetation Management Specialist
Wastewater Laboratory Specialist
Wastewater Maintenance Specialist
Water Plant Operator
Wastewater Plant Operator
Cateaory II: Field Services — Public Contact/Less Intensive Phvsical Work
Aquatics & Rec Programmer PRCE Facility Operations Specialist
Building Inspector PT PRCE Custodian
Building Official Public Outreach & Education Coordinator
Compost Operations Specialist Public Works Manager
Inspector Wastewater Manager
Police Officers Water Manager
PRCE Facility Maintenance Technician
Category III: Office/Administrative
Administrative Secretary - Public Works
Assistant Finance Director
Building and Planning Admin. Specialist
City Administrator
City Attorney
City Clerk/Paralegal
City Engineer/Asst PW Director
Compost Manager
Economic Development Director
Engineering Administrative Specialist
Event Center/Senior Center Programmer
Finance Director
Human Resources Director
Human Resources/Admin Technician
Information Technology Director
Information Technology Technician
Lead Police Administrative Specialist
Licensing Clerk/Tech FT/PT
Liquor Sales Manager
Motor Vehicle Deputy Registrar
Uniform Service
Fire Chief
Fire Inspector/Fire Fighter
Police Cadet
Police Officer FT/PT
Planning Director
Police Data Release Coordinator
Police Investigations Specialist
Police Supplemental Services Specialist
PT Compost Scale Operator
PT Liquor Sales Clerk
Public Works Director
PRCE Facilities Maintenance Manager
PRCE Office Specialist
Recreation Manager
Sales & Marketing Specialist
Senior Accounting Specialist
Senior Liquor Sales Clerk
Parks/Recreation/Community Ed Director
Payroll/Benefits Specialist
Server/Network Technician
Senior Network Administrator
Utility Billing Specialist
Police Sergeant
Police Lieutenant
Police Chief/Emergency Management Director
PT Community Service Officer (CSO)
Exhibit Amended December 2025
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 12/10/25 - 12/23/25
Check Date
Check #
Name
Description
Amount
12/12/2025
EFT
EFTPS
Payroll Report 11/23/25 - 12/6/25
89,389.41
12/12/2025
EFT
MN Dept of Revenue
Payroll Report 11/23/25 - 12/6/25
19,305.74
12/12/2025
EFT
VOYA (Hutch City of)
Payroll Report 11/23/25 - 12/6/25
300.00
12/12/2025
EFT
Child Support
Payroll Report 11/23/25 - 12/6/25
276.88
12/12/2025
EFT
UNUM Voluntary Insurance
Payroll Report 11/23/25 - 12/6/25
317.07
12/12/2025
EFT
PERA
Payroll Report 11/23/25 - 12/6/25
87,905.36
12/12/2025
EFT
Health Equity
Payroll Report 11/23/25 - 12/6/25
18,312.31
12/12/2025
EFT
Mission Square
Payroll Report 11/23/25 - 12/6/25
3,773.30
12/12/2025
EFT
VOYA (CITY OF HUTCH)
Payroll Report 11/23/25 - 12/6/25
250.00
12/12/2025
303918
Manual Employee Check
Payroll Report 11/23/25 - 12/6/25
68.30
12/12/2025
303919
HART
Payroll Report 11/23/25 - 12/6/25
521.53
12/12/2025
303920
NCPERS
Payroll Report 11/23/25 - 12/6/25
208.00
12/23/2025
303921
VOIDED CHECK
VOID
-
12/23/2025
303922
VOIDED CHECK
VOID
12/23/2025
303923
VOIDED CHECK
VOID
12/23/2025
303924
VOIDED CHECK
VOID
-
12/23/2025
303925
ACKLAND, MARLENE
UB REFUND
87.38
12/23/2025
303926
BURICH,JORDAN
UB REFUND
110.91
12/23/2025
303927
DOSTAL,JAKE
UB REFUND
35.00
12/23/2025
303928
SCHWECKE, JUSTIN & BRITTANY
UB REFUND
102.20
12/23/2025
303929
SPORTS CLIPS
UB REFUND
53.96
12/23/2025
303930
STIRAS, LARRY
UB REFUND
108.30
12/23/2025
303931
VERDECK, DUANE
UB REFUND
45.84
12/23/2025
303932
A R ENGH HEATING & AIR CONDITIONING
DRAIN CLEAN OUT APP BAY - FIRE
320.00
12/23/2025
303933
ACE HARDWARE - 1315
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1,937.68
12/23/2025
303934
ACE HARDWARE - 1790
SHIPPING, BATTERIES -FIRE
58.17
12/23/2025
303935
ACE HARDWARE - 1825
DOUBLE SIDED KEY - POLICE
6.49
12/23/2025
303936
ALL MIGHTY MOVERS
MOVE ELIPTICAL - FIRE
250.00
12/23/2025
303937
AMERICAN WELDING & GAS
FIRE EXTINGUISHER MAINTENCE - CITY CTR
97.78
12/23/2025
303938
ANIMAL MEDICAL CENTER ON CROW RIVER
ANIMAL IMPOUNDS - POLICE
1,316.25
12/23/2025
303939
APEX ENGINEERING GROUP INC
ENVIRONMENTAL TRANSITION - JP/WW
158.00
12/23/2025
303940
ARROW ENERGY INC
AIRPORT FUEL
30,822.65
12/23/2025
303941
ARTISAN BEER COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
746.80
12/23/2025
303942
AUTO VALUE - GLENCOE
WASHER FLUID/FLARE/FITTINGS - HATS
294.71
12/23/2025
303943
AUTO-CHLOR SYSTEM
DISHWASHER SERVICE - SR DINING
93.71
12/23/2025
303944
B & C PLUMBING & HEATING INC
EMERG REPAIR GRANT- HRA
5,000.00
12/23/2025
303945
BELLBOY CORPORATION
COST OF GOODS SOLD - LIQUOR HUTCH
2,498.35
12/23/2025
303946
BENEFIT EXTRAS INC
COBRA ADMIN FEES
72.50
12/23/2025
303947
BENTZ, ANDREW
REIMB: WINTER BOOTS & SAFETY FOOTWEAR - PARKS
356.45
12/23/2025
303948
BERNICK'S
COST OF GOODS SOLD - LIQUOR HUTCH
462.40
12/23/2025
303949
BERTRAM ASPHALT COMPANY INC
KIMBERLY PARK TRAIL - STREETS
9,049.50
12/23/2025
303950
BOBBING BOBBER BREWING CO
COST OF GOODS SOLD - LIQUOR HUTCH
263.02
12/23/2025
303951
BOLTON & MENK INC
RSA GRADING, PLAN DOLLARS
4,550.00
12/23/2025
303952
BREAKTHRU BEVERAGE MN WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
14,200.27
12/23/2025
303953
BUREAU OF CRIMINAL APPREHENSION
CJDN ACCESS FEE - POLICE
1,560.00
12/23/2025
303954
C & L DISTRIBUTING
COST OF GOODS SOLD - LIQUOR HUTCH
39,729.10
12/23/2025
303955
CARS ON PATROL SHOP LLC
OIL CHANGES - POLICE
138.08
12/23/2025
303956
CENTRAL HYDRAULICS
EQUIPMENT PARTS - MULTIPLE DEPTS
2,261.65
12/23/2025
303957
CINTAS CORPORATION
SUPPLIES & SERVICE - MULTIPLE DEPTS
484.72
12/23/2025
303958
CITIZENS BANK & TRUST CO
2ND HALF 2025 TIF PAYMENT
22,211.57
12/23/2025
303959
CM2 SUPPLY
EQUIPMENT RENTAL, SUPPLIES - MULTIPLE DEPTS
236.20
12/23/2025
303960
CM2 SUPPLY
HATS WELDING SUPPLIES
532.36
12/23/2025
303961
CREAM CITY PALLET PARTNERS LLC
BAGGING PALLETS - CREEKSIDE
2,850.00
12/23/2025
303962
CROW RIVER WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
688.80
12/23/2025
303963
DAHLHEIMER BEVERAGE
COST OF GOODS SOLD- LIQUOR HUTCH
27,532.57
12/23/2025
303964
DELEGARD TOOL CO
BACK BUDDY/ADAPTER - HATS
2,591.22
12/23/2025
303965
DESIGN ELECTRIC INC
LIGHT REPAIRS - MULTIPLE DEPTS
1,640.88
12/23/2025
303966
ECOLAB PEST ELIMINATION
PEST CONTROL - POLICE
108.00
12/23/2025
303967
ELK RIVER COMPOSTING INC
REED SEDGE PEAT BULK -CREEKSIDE
24,537.40
12/23/2025
303968
FARM -RITE EQUIPMENT
MS592T HVAC 3 SPD FAN -STREETS
513.26
12/23/2025
303969
FASTENAL COMPANY
HEX NUTS - HATS
143.20
12/23/2025
303970
FISHER SCIENTIFIC
D.O PROBE FOR LAB - WWTP
737.00
12/23/2025
303971
FORUM COMMUNICATIONS PRINTING
WINTER/SPRING BROCHURE 2025-2026 - PRCE
2,899.83
12/23/2025
303972
FOSTER MECHANICAL
HVAC REPAIRS- MULTIPLE DEPTS
2,152.81
12/23/2025
1303973
1 FRANDLE, BRUCE
REIMB: WINTER BOOTS -WWTP
1 147.99
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 12/10/25 - 12/23/25
Check Date
Check #
Name
Description
Amount
12/23/2025
303974
FUZE LOGISTICS SERVICES USA INC
CREEKSIDE BAGGED FREIGHT
1,700.00
12/23/2025
303975
GALLS LLC
TROUSERS - POLICE
144.95
12/23/2025
303976
GAVIN, JANSSEN, STABENOW, & MOLDAN LTD
PROSECUTIONS - LEGAL
3,700.00
12/23/2025
303977
GRAINGER
EQUIPMENT PARTS- MULTIPLE DEPTS
2,042.77
12/23/2025
303978
GROUNDED GARDENS
SIGN & AWNING GRANT- EDA
640.00
12/23/2025
303979
HAGER JEWELRY INC
RETIREMENT GIFT - POLICE
148.00
12/23/2025
303980
HANSEN TRUCK SERVICE
TANKER 6 SERVICE/REPAIRS - FIRE
1,331.45
12/23/2025
303981
HARTFORD,THE
INLAND MARINE POLICY -SOLAR ARRAY -WWTP
8,719.00
12/23/2025
303982
HAWKINS INC
CITRIC ACID AND CHLORINE -WWTP
3,056.55
12/23/2025
303983
HERALD JOURNAL PUBLISHING
ADVERTISING - MULTIPLE DEPTS
1,057.00
12/23/2025
303984
HIGHFIELD APARTMENTS OF HUTCHINSON
2ND HALF 2025 TIF PAYMENT
61,684.97
12/23/2025
303985
HILLYARD/HUTCHINSON
NEW FLOOR SCRUBBER -REC, MISCSUPPLIES
26,936.90
12/23/2025
303986
HODSON, LINDSEY
REIMB: AFO CLASS - WATERPARK
242.53
12/23/2025
303987
HOFF, RANDY
FRESH MEMORIAL WREATH - POLICE
40.00
12/23/2025
303988
HOLT MOTORS INC
MS170T USED HARNESS - STREETS
50.00
12/23/2025
303989
HUTCHINSON CO-OP
FUEL & SUPPLIES - MULTIPLE DEPTS
32,880.57
12/23/2025
303990
HUTCHINSON FARMERS MARKET
GRANT FOR FARMERS MARKET
5,000.00
12/23/2025
303991
HUTCHINSON HRA
EMERG REPAIR GRANT- HRA
500.00
12/23/2025
303992
HUTCHINSON UTILITIES
UTILITIES
82,997.17
12/23/2025
303993
HUTCHINSON UTILITIES
GIS SERVICES, ST LIGHT DAMAGE
20,494.55
12/23/2025
303994
HUTCHINSON WHOLESALE #1550
EQUIPMENT PARTS - MULTIPLE DEPTS
278.44
12/23/2025
303995
HUTCHINSON WHOLESALE#1551
WINDSHIELD WASHER FLUID-CREEKSIDE
25.14
12/23/2025
303996
HUTCHINSON WHOLESALE #1552
SNOW PARTS, SUPPLIES, BATTERY - PARKS
69.39
12/23/2025
303997
HUTCHINSON, CITY OF
CONTRACTED PRAIRIE BURNS CONDUCTED BY HFD
3,535.00
12/23/2025
303998
HUTCHINSON, CITY OF
WATER BILLS
7,776.50
12/23/2025
303999
IMS-INDUSTRIAL MAINTENANCE SUPPLIES
SHOP SUPPLIES - WWTP
293.22
12/23/2025
304000
INTERSTATE BATTERY SYSTEM OF MPLS
HATS BATTERY STOCK
412.80
12/23/2025
304001
INTEX CORPORATION
CRUSH STOCKPILE, BREAKING, MOBIL -CREEKSIDE
93,233.27
12/23/2025
304002
JEFFERSON FIRE & SAFETY INC
HONEYWELL FIRE COAT/PANTS- FIRE
6,965.64
12/23/2025
304003
JOHNSON BROTHERS LIQUOR CO
COST OF GOODS SOLD - LIQUOR HUTCH
23,949.29
12/23/2025
304004
KOHLS SWEEPING SERVICE
PILING CONCRETE AND ASPHALT- CREEKSIDE
600.00
12/23/2025
304005
KOSEK, JEFFREY
CONTRACTED SNOW REMOVAL - STREETS
1,950.00
12/23/2025
304006
KRANZ LAWN & POWER
TIRES, OIL, FILTERS- PARKS
1,717.59
12/23/2025
304007
L & P SUPPLY OF HUTCHINSON INC
BACK PACK BLOWER, HARNESS - MULTIPLE DEPTS
778.67
12/23/2025
304008
LAWSON PRODUCTS INC
NUTS/WASHERS/SCREWS - HATS
742.63
12/23/2025
304009
LDF
LEGAL DEFENSE FUND DUES - POLICE
304.00
12/23/2025
304010
LITCHFIELD BUILDING CENTER
TRAINING SITE CONCRETE PAD - FIRE
1,500.00
12/23/2025
304011
LITZAU FARM DRAINAGE INC
AIRPORT DRAINAGE PROJECT
15,154.26
12/23/2025
304012
MACQUEEN
SCBA REPAIRS - FIRE
144.81
12/23/2025
304013
MARCO TECHNOLOGIES LLC
PRINTING CONTRACTS - MULTIPLE DEPTS
3,031.19
12/23/2025
304014
MARCO TECHNOLOGIES LLC NW 7128
PRINTING CONTRACT- EDA
109.70
12/23/2025
304015
MCLEOD COUNTY RECORDER
RESOLUTIONS, RECORDING FEES - MULTIPLE DEPTS
276.00
12/23/2025
304016
MEI TOTAL ELEVATOR SOLUTIONS
ELEVATOR CONTRACT - LIBRARY
248.24
12/23/2025
304017
MENARDS HUTCHINSON
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
725.47
12/23/2025
304018
MICHIGAN DEPARTMENT OF AGRICULTURE
LICENSE & REGISTRATION RENEWAL-CREEKSIDE
125.00
12/23/2025
304019
MIDWEST MACHINERY CO
BALL FOR BLOW, TRACTOR OIL - PARKS
392.99
12/23/2025
304020
MILK AND HONEY CIDERS
COST OF GOODS SOLD - LIQUOR HUTCH
273.00
12/23/2025
304021
MINI BIFF
PORTATOILETRENTALS- MULTIPLEDEPTS
311.61
12/23/2025
304022
MINNCOR INDUSTRIES
TITLE STOCK - MV
35.00
12/23/2025
304023
MIN NESOTA DEPT OF AGRICULTU RE
PRODUCT RENEWAL - CREEKSIDE
1,500.00
12/23/2025
304024
MINNESOTA VALLEY TESTING LAB
LAB SAMPLE TESTING - WWTP
538.40
12/23/2025
304025
MJB SERVICES LLC
CONTRACTOR SNOW HAULING+RETAINER - STREETS
1,450.00
12/23/2025
304026
MN DEPT OF TRANSPORTATION
MATERIALS TESTING - ENG
404.20
12/23/2025
304027
MOMENTUM TRUCK GROUP
MS574T MOTOR BLOWER/MOTOR -STREETS
166.12
12/23/2025
304028
MPPOA
MPPOA DUES- POLICE
140.00
12/23/2025
304029
NEO ELECTRICAL SOLUTIONS
TROUBLESHOOT WARNING LIGHTS -AIRPORT
1,022.74
12/23/2025
304030
NERO ENGINEERING LLC
BNR STUDY, SOLIDS IMPV - WWTP
73,886.80
12/23/2025
304031
NORTH AMERICAN SAFETY INC
WINTER SAFETY GLOVES, VESTS, SWEATSHIRTS - PARKS
386.46
12/23/2025
304032
NUVERA
PHONE SERVICES
5,426.55
12/23/2025
304033
OFFICE DEPOT
TAPE/POSTITS - STREETS
30.99
12/23/2025
304034
PALLET SERVICE CORPORATION
BAGGING PALLETS - CREEKSIDE
2,132.00
12/23/2025
304035
PEOPLEREADY INC
CREEKSIDE TEMP STAFFING
1,541.37
12/23/2025
304036
PHILLIPS WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
9,212.84
12/23/2025
304037
PLUNKETTS PEST CONTROL
PEST CONTROL - ARENA
86.52
12/23/2025
1304038
1 POSTMASTER
POSTAGE - UB BILLING
1 2,070.00
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATES 12/10/25 - 12/23/25
Check Date
Check #
Name
Description
Amount
12/23/2025
304039
PREMIUM WATERS
BREAKROOM WATER- PARKS
33.24
12/23/2025
304040
PRO AUTO MN INC
REPAIRS - FIRE
2,435.48
12/23/2025
304041
RAHN PAINTING & CONTRACTING LLC
CONTRACTED SNOW REMOVAL- MULTIPLE DEPTS
5,750.00
12/23/2025
304042
RAM BUILDINGS INC
HANGAR 2 RE -SKIN AND RE -ROOF
94,268.00
12/23/2025
304043
RD MACHINE
2ND HALF TIF PAYMENT
8,307.94
12/23/2025
304044
RED BULL DISTRIBUTION COMPANY INC
COST OF GOODS SOLD - LIQUOR HUTCH
54.70
12/23/2025
304045
REFLECTIVE APPAREL FACTORY INC
HI-VIS STOCK - STREETS
1,080.91
12/23/2025
304046
REINER ENTERPRISES INC
ST. CLOUD YARDWASTE HAULING - CREEKSIDE
6,342.64
12/23/2025
304047
RICE COMPANIES
HANGAR 3 STORM DAMAGE REPAIR
146,087.06
12/23/2025
304048
ROSENBAUER MINNESOTA LLC
FIRE LADDER TRUCK CHASSIS
577,568.00
12/23/2025
304049
RUNNING'S SUPPLY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
322.02
12/23/2025
304050
S&STRUCKING LLC
ST. CLOUD HAULING -CREEKSIDE
27,882.66
12/23/2025
304051
SALERNO PACKAGING INC
GARDEN SOIL, TOPSOIL FILMS -CREEKSIDE
30,170.22
12/23/2025
304052
SCHAUER TRUCKING LLC
CONTRACT SNOW REMOVAL+RETAINER - STREETS
1,450.00
12/23/2025
304053
SCHERMANN, SHANNON
REIMB: MAPET CONF - POLICE
181.46
12/23/2025
304054
SHAW, KAREN
PILATES/ YOGA INSTRUCTION - SR CTR
150.00
12/23/2025
304055
SHORT-ELLIOT-HENDRICKSON INC
ENG SERVICES - CITY SERVICES, MISC PROJECTS
13,717.00
12/23/2025
304056
SIMONSON LUMBER CO
PICNIC TABLES BOARDS - PARKS
2,402.99
12/23/2025
304057
SKYVIEW DAIRY INC
MANUREYARDS- CREEKSIDE
8,996.40
12/23/2025
304058
SOIL CONTROL LAB
FINISHED COMPOST-CREEKSIDE
1,244.00
12/23/2025
304059
SOUTHERN GLAZER'S WINE AND SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
22,775.92
12/23/2025
304060
STANDARD PRINTING-N-MAILING
ENVELOPES - CITY CTR
658.00
12/23/2025
304061
STAPLES ADVANTAGE
OFFICE SUPPLIES - MULTIPLEDEPTS
1,135.71
12/23/2025
304062
STATE CHEMICAL SOLUTIONS
ENZYME FOR CLEANING RESTROOMS - PARKS
256.50
12/23/2025
304063
TALL SALES COMPANY
NOV COMMISSIONS - CREEKSIDE
3,768.26
12/23/2025
304064
TERMINAL SUPPLY CO
TAPE/CONNECTORS/HOLDERS- HATS
211.25
12/23/2025
304065
THOMSON REUTERS-WEST
OPERATING SUPPLIES - MULTIPLE DEPTS
1,625.47
12/23/2025
304066
TIDY TIGHTWADS
CONTRACTED JANITORIAL - HATS
1,485.75
12/23/2025
304067
TITAN MACHINERY
500 HOUR SERVICE - LOADER #789 - CREEKSIDE
1,452.08
12/23/2025
304068
T-MOBILE
PHONE SERVICES
2,343.20
12/23/2025
304069
TRI COUNTY WATER
BOTTLE WATER AND DEL- PRCE
60.80
12/23/2025
304070
TRUE BRANDS
COST OF GOODS SOLD - LIQUOR HUTCH
367.74
12/23/2025
304071
UPONOR INC
TAX ABATEMENT- 2ND HALF 2025
11,236.50
12/23/2025
304072
VERIZON WIRELESS
PHONE SERVICES
658.12
12/23/2025
304073
VIKING BEER
COST OF GOODS SOLD - LIQUOR HUTCH
12,270.95
12/23/2025
304074
VIKING COCA COLA
COST OF GOODS SOLD - LIQUOR HUTCH
720.45
12/23/2025
304075
VINOCOPIA INC
COST OF GOODS SOLD - LIQUOR HUTCH
510.75
12/23/2025
304076
VIVID IMAGE
WEB PAGE REWRITE - PRCE
3,250.00
12/23/2025
304077
VOS CONSTRUCTION INC
ROOF REPAIRS -ARENA
450.00
12/23/2025
304078
WASTE MANAGEMENT OF WI -MN
REFUSE TAKEN TO LANDFILL
8,680.09
12/23/2025
304079
WEST CENTRAL SANITATION INC
RESIDENTIAL REFUSE, CITY REFUSE - MULTIPLE DEPTS
58,802.10
12/23/2025
304080
WESTWOOD PROFESSIONAL SERVICES INC
THE LANDING CONSTRUCTION MGMNT SERVICES
4,672.50
12/23/2025
304081
WINE COMPANY, THE
COST OF GOODS SOLD - LIQUOR HUTCH
1,440.77
12/23/2025
304082
WINE MERCHANTS INC
COST OF GOODS SOLD - LIQUOR HUTCH
1,867.13
12/23/2025
304083
WINEBOW FINE WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
447.00
12/23/2025
304084
WOOD & RUE PLLP
DOG CASE REVIEW - LEGAL
663.40
12/23/2025
304085
YOUR HOME IMPROVEMENT CO
PERMIT REFUND - BLDG
324.16
12/23/2025
304086
ZARNOTH BRUSH WORKS INC
MW496X BROOM REFILL - STORMWATER
576.00
12/23/2025
1304087
KGB CORNERSTONE COMMONS LLC
2ND HALF TIF PAYMENT
1 17,045.34
Total - Check Register A:
$ 2,033,943.77
Department Purchasing Card Activity - November 2025
Date
Department
Vendor Name
Description
Amount
11/4/2025
ADMIN
MINNESOTA PAID LEAVE
Minnesota Paid Leave
500.00
11/4/2025
ADMIN
MINNESOTA PAID LEAVE FEE
Minnesota Paid Leave Fee
10.75
11/23/2025
ADMIN
USPS
First Class Mail for Lawsuit (Utilities)
23.20
11/2/2025
CREEKSIDE
Mailchimp
Email marketing, monthly newsletter
33.00
11/5/2025
CREEKSIDE
CASH WISE FOODS
Breakroom coffee
44.97
11/5/2025
CREEKSIDE
CASH WISE FOODS
Office coffee
53.59
11/7/2025
CREEKSIDE
SPS COMMERCE
Oct 2025 SPS fees; UH/Do it Best
287.53
11/9/2025
CREEKSIDE
APPLE.COM/BILL
iCloud storgage; Akosek
0.99
11/23/2025
CREEKSIDE
AMAZON
Packing slip envelopes
98.97
11/6/2025
EDA
WM SUPERCENTER
Bottled water for board meetings
6.98
11/9/2025
EDA
SECRETARY OF STATE
UCC-1 Recording fee
20.00
11/9/2025
EDA
OPENAI *CHATGPT SUBSCR
Subscription to Open Al
60.00
11/20/2025
EDA
JIMMYJOHNS
Finance Team lunch
118.19
11/27/2025
EDA
CASH WISE FOODS
Paper plates, etc.
12.92
11/28/2025
EDA
JIMMYS PIZZA HUTCHINSON
EDA Board lunch
101.89
11/5/2025
FINANCE
AMAZON
Fire - (2) spine board immobilizers for head
91.18
11/27/2025
FINANCE
AMAZON
Utility Billing - replacement ink pad
8.95
11/4/2025
FIRE
WM SUPERCENTER
Charging cords and 12v adapters for Ipads
50.05
11/6/2025
FIRE
DOMINO'S
Food for FF -Multi hour house fire over the lunch hour
30.16
11/20/2025
FIRE
CASH WISE FOODS
Bottled drinking water, coffee
129.87
11/20/2025
FIRE
WAL-MART
USB-C cable for charging Ipads
9.88
11/20/2025
FIRE
WM SUPERCENTER
12v car charger adapters
44.94
11/2/2025
IT
AMAZON
Microphone
49.95
11/3/2025
IT
AMAZON
iPad cases for Fire
239.97
11/4/2025
IT
AMAZON
Dell laptop chargers
48.42
11/9/2025
IT
U.S. CAD
Blue Beam software
50.00
11/13/2025
IT
AMAZON
iPad case for Water Dept
23.99
11/16/2025
IT
AMAZON
Toner
126.89
11/18/2025
IT
AMAZON
Amanda computer speakers
16.19
11/18/2025
IT
AMAZON
Hard drive for video system at PD
222.72
11/21/2025
IT
DUO*COM
Duo license renewals
1,440.00
11/21/2025
IT
AMAZON
UPS Batteries
79.99
11/25/2025
IT
NETWORKSOLUTIONS
E-mail service Public Arts
2.25
11/2/2025
LIQUOR HUTCH
AMAZON
Bathroom tissue
49.59
11/2/2025
LIQUOR HUTCH
FACEBOOK
FB marketing
183.73
11/2/2025
LIQUOR HUTCH
AMAZON
Garbage bags
60.40
11/2/2025
LIQUOR HUTCH
City Hive Inc
Monthly fee for online ordering and website
99.27
11/2/2025
LIQUOR HUTCH
MENARDS HUTCHINSON MN
Toliet repair and garbage bags
20.99
11/13/2025
LIQUOR HUTCH
RITE
10 hours of service time purchased
1,390.51
11/16/2025
LIQUOR HUTCH
RITE
Monthly POS Cloud Retailer fee
268.44
11/20/2025
LIQUOR HUTCH
AMAZON
Gift card stand
17.25
11/20/2025
LIQUOR HUTCH
AMAZON
Sign holders 8.5x11
24.80
11/23/2025
LIQUOR HUTCH
AMAZON
Pricing gun labels
25.88
11/23/2025
LIQUOR HUTCH
AMAZON
Replacement motor for loading dock heater
259.35
11/23/2025
LIQUOR HUTCH
AMAZON
Pricing gun labels
25.88
11/23/2025
LIQUOR HUTCH
AMAZON
Microphones for FB/Instagram reels
20.32
11/26/2025
LIQUOR HUTCH
AMAZON
Cash register receipt tape
129.92
11/26/2025
LIQUOR HUTCH
CHATGPT SUBSCR
Monthly fee for marketing images etc
20.00
11/27/2025
LIQUOR HUTCH
AMAZON
Sign holders 5x7
17.25
11/28/2025
LIQUOR HUTCH
JIMMY JOHNS
Staff lunch/dinner for Nov 26th
228.58
11/30/2025
LIQUOR HUTCH
MENARDS HUTCHINSON MN
Ice melt and packaging tape
49.58
11/19/2025
MOTORVEHICLE
MENARDS HUTCHINSON MN
Humidifier for office
94.92
11/26/2025
MOTOR VEHICLE
MENARDS HUTCHINSON MN
Batteries & swifer cleaning pads
19.59
11/2/2025
PARK & REC
OLIVE GARDEN
Senior Trips - Meal during Trip including tip
837.16
11/2/2025
PARK & REC
WHEN I WORK
Employee Scheduling Software
150.00
11/4/2025
PARK & REC
MAPLEWOOD ACADEMY
Senior Trips - Maplewood Academy
710.00
11/12/2025
PARK & REC
AMAZON
Calendar and Pens
37.14
11/14/2025
PARK & REC
OUTDOOR MOTION BIKE SHOP
Bike Fleet Repairs - Reimbursed through HHF Grant
1,137.00
11/17/2025
PARK & REC
AMAZON
Indoor Pickleballs
21.94
11/19/2025
PARK & REC
MN RECREATION AND PARK
MASS Renewal Membership - Jenni Behrendt
40.00
11/20/2025
PARK & REC
Prime Video
Senior Movies - "My Penguin Friend"
4.30
11/21/2025
PARK & REC
PAYPAL *KIWANISHOLI
Senior Trips - Kiwanis Holiday Lights Tour
99.00
11/23/2025
PARK & REC
PAYPAL *KIWANISHOLI
Senior Trips - Kiwanis Holiday Lights Tour
1.00
11/30/2025
PARK & REC
AMAZON
Bike Fleet Supplies - Bike Brake cables, Bike Tubes
49.71
11/2/2025
POLICE
AMAZON
Compostable plates and towels
44.02
11/4/2025
1 POLICE
IGLOCK PROFESSIONAL INC
ITraining
1 300.00
Department Purchasing Card Activity - November 2025
Date
Department
Vendor Name
Description
Amount
11/4/2025
ADMIN
MINNESOTA PAID LEAVE
Minnesota Paid Leave
500.00
11/4/2025
POLICE
BCA TRAINING EDUCATION
Training
75.00
11/4/2025
POLICE
BCA TRAINING EDUCATION
Training
75.00
11/4/2025
POLICE
BCA TRAINING EDUCATION
Training
75.00
11/4/2025
POLICE
AMAZON
Disposable dinnerware
41.26
11/4/2025
POLICE
AMAZON
Flashlight battery
58.59
11/4/2025
POLICE
AMAZON
Gloves
45.79
11/5/2025
POLICE
NU CTR PUBLIC SAFETY
Training
50.00
11/5/2025
POLICE
NU CTR PUBLIC SAFETY
Training
50.00
11/5/2025
POLICE
AMAZON
Toilet tissue
68.99
11/13/2025
POLICE
AMAZON
Replaced citizen cell phone
199.49
11/13/2025
POLICE
AMAZON
Paper towels
47.38
11/18/2025
POLICE
AMAZON
Soap
51.11
11/25/2025
POLICE
AMAZON
Dry erase board
53.31
11/5/2025
PUBLIC WORKS
MINNESOTA STATE COLLEGES
Bridge Safety Class for CM & CK
300.00
11/6/2025
PUBLIC WORKS
AMAZON
Vacuum Bags
26.95
11/9/2025
PUBLIC WORKS
2025 APWA-MN Fall Conf
APWA Fall Conference for MS, DS & BB
1,288.13
11/11/2025
PUBLIC WORKS
AMAZON
Bluetooth Wireless Headphones for Streets
86.29
11/19/2025
PUBLIC WORKS
LIBERTY TIRE SERVICES LLC
Tire Recycling
1,191.15
11/19/2025
PUBLIC WORKS
CUSTOMER ELATION
Monthly Dispatch Services
91.00
11/19/2025
PUBLIC WORKS
CUSTOMER ELATION
Monthly Dispatch Services
91.00
11/19/2025
PUBLIC WORKS
DEMCO INC
Bone Folder
14.37
11/23/2025
PUBLIC WORKS
MINNESOTA NURSERY AND LAN
Northern Green Expo Registration
365.00
11/23/2025
PUBLIC WORKS
FILTER KING
8 Air Filters (Furnance)
180.21
11/23/2025
PUBLIC WORKS
HUTCHSTATION
Station Subscription for Streets Dept
6.99
11/27/2025
PUBLIC WORKS
AMAZON
2026 Calendars
68.98
Total P-Cards:
$ 15,076.89
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Review of Council Member Appointments to City Boards and Commissions
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff
Communications, Requests 0
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As we prepare for our organizational meeting on January 13, the council should have a
discussion on appointments for the upcoming year. Please see the attached memo in regards to
this agenda item.
BOARD ACTION REQUESTED:
No action required. 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
FRO
HUTCHINSON
A CITY ON PURPOSE,
Memo
Office of the City Administrator
111 Hassan Street SE
Hutchinson, MN 55350-2522
320-234-4241/Fax 320-234-4240
To: Mayor Forcier and City Council Members
From: Matt Jaunich, City Administrator
Date: 12/23/25
Re: 2026 Board/Committee/Commission Appointments
As we prepare for the organizational meeting on Tuesday, January 13 at 5:30 p.m.,
below is the current standing and temporary board/committee/commission
appointments assigned to city council members. In preparation for the organizational
meeting, we have had a discussion in past Decembers about appointments for the
upcoming year and I would like to do that again this year. Procedurally wise, it is up to
the mayor to bring forth the recommended appointments with the City Council giving
the final approval. This discussion will assist the mayor in bringing forth those
recommendations in January.
If there are any desires to add any new committees, that should be discussed at this
meeting as well.
STANDING
1. AIRPORT COMMISSION — Gary Forcier
2. HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY (EDA) — Chad Czmowski
and Pat May
3. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY (HRA) — Gary Forcier
4. JOINT PLANNING BOARD — Dave Sebesta
5. LIBRARY BOARD — Tim Burley
6. MID-MINNESOTA DEVELOPMENT COMMISSION — Dave Sebesta
7. PARKS, RECREATION, COMMUNITY EDUCATION ADVISORY BOARD — Chad
Czmowski
8. PLANNING COMMISSION — Dave Sebesta
9. PUBLIC ARTS COMMISSION — Pat May
10. BICYCLE -PEDESTRIAN ADVISORY COMMITTEE — Pat May
11. HUTCHINSON DOWNTOWN ASSOCIATION (Not Active) — Gary Forcier
12. FIRE RELIEF ASSOCIATION — Fire Chief Mike Schumann, City Administrator
Matthew Jaunich, Mayor Gary Forcier
13. RESOURCE ALLOCATION COMMITTEE — Gary Forcier and Chad Czmowski
14. WAGE COMMITTEE — Pat May and Chad Czmowski
15. LABOR UNION NEGOTIATION COMMITTEE — Gary Forcier and Tim Burley
16. SUSTAINABILITY BOARD — Tim Burley
17. MARKETING AND BRANDING COMMITTEE — Tim Burley and Pat May
TEMPORARY
1. LAKES/RIVER BASIN STUDY TECHNICAL ADVISORY PANEL (TAP) — Gary Forcier
and Chad Czmowski
OTHER
Council Vice President — Chad Czmowski
POTENTIAL NEW ONE
Joint HUC/EDA/City Council Committee — 2 Members??
I have also included a breakdown of past appointments with this memo.
Matt
2
Hutchinson Boards, Committees, and Commissions
Council Representatives to Boards & Commissions
2021
2022
2023
2024
2025
Airport Commission
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
EDA Board
Chad & Mary
Chad & Mary
Chad & Pat
Chad & Pat
Chad & Pat
HRA Board
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
Library Board
Mary Christensen
Mary Christensen
Tim Burley
Tim Burley
Tim Burley
Parks, Rec., Comm. ED Advisory Board
Chad Czmowski
Chad Czmowski
Chad Czmowski
Chad Czmowski
Chad Czmowski
Planning Commission
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Public Arts Commission
Brandon Begnaud
Pat May
Pat May
Pat May
Pat May
Bicycle/Pedestrian Advisory Committee
Brandon Begnaud
Pat May
Pat May
Pat May
Pat May
Sustainability Board
Brandon Begnaud
Pat May
Tim Burley
Tim Burley
Tim Burley
Council Representatives to other Committees
2021
2022
2023
2024
2025
Mid -Minnesota Development Commission
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Hutchinson Downtown Association
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
Gary Forcier
Fire Chief, Mayor,
Fire Chief,
Fire Chief,
Fire Chief,
Fire Chief,
Fire Relief Association
Admin
Mayor, Admin
Mayor, Admin
Mayor, Admin
Mayor, Admin
Joint Planning Board
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Dave Sebesta
Resource Allocation Committee
Gary & Chad
Gary & Chad
Gary & Chad
Gary & Chad
Gary & Chad
Wage Committee
Brandon & Dave
Pat & Dave
Pat & Dave
Pat & Chad
Pat & Chad
Labor Union Negotiation Committee
Gary & Mary
Gary & Mary
Gary & Tim
Gary & Tim
Gary & Tim
Regional Radio Board
Dave Sebesta
NA
NA
NA
NA
Marketing & Branding Committee
Brandon & Mary
Pat & Mary
Tim & Pat
Tim & Pat
Tim & Pat
Other City -Related Committees, Commissions, and Boards (No Council Representation)
Charter Commission Senior Advisory Board Fleet Committee
Regional Library Board Facility Committee
Council Representatives on Temporary Committees
Hutchinson Boards, Committees, and Commissions
2021 2022 2023 2024 2025
New Police Facility Core Planning Group Gary & Mary Gary & Mary NA NA NA
Lakes/River Basin Study Technical
Advisory Panel (TAP Gary & Chad Gary & Chad Gary & Chad Gary & Chad Gary & Chad
Council Vice President Chad Cz nowski Chad Cz nowski Chad Cz nowski Chad Cz nowski Chad Cz nowski
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Second Reading - Consideration of a Rezoning properties from R-2 to C-4 located
Agenda Item: at 552, 554 and 564 Jefferson St SE.
Department: Planning
LICENSE SECTION
Meeting Date: 12/9/2025
Application Complete N/A
Contact: Dan Jochum
Agenda Item Type:
Presenter: Dan Jochum
Reviewed by Staff
Unfinished Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Jon Betker has submitted a rezoning application for the properties located at 552, 554, 564
Jefferson St SE. The properties are currently zoned R-2 Medium Density Residential; however,
these properties had been used as a commercial use prior to a fire in the late 2010s. If the
re -zoning application were to be approved the applicant is looking at constructing a building for
his construction business.
Two neighbors spoke regarding this item. One asked about the property line and who was
responsible for maintaining the shrubs on the line. Another just wanted it in the public record
that he attended the meeting.
The Planning Commission voted unanimously (6-0) to recommend approval of the rezoning to
change the zoning from R-2 to C-4.
BOARD ACTION REQUESTED:
Approval of land rezoning.
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.8607
ORDINANCE NO. 25-868
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 552,
554 and 564 JEFFERSON ST SE.
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 interest of the City to rezone the property
from R-2 to C-4.
Section 2. That the property to be rezoned to C-4 is the following address and legal description:
552 Jefferson St SE — Lot 1, Block 1, Subdivision of Block 16, Bonniwell's 2nd Addition
554 Jefferson St SE - Lot 2, Block 1, Subdivision of Block 16, Bonniwell's 2nd Addition
564 Jefferson St SE - Lot 3 (except the S 25'), Block 1, Subdivision of Block 16, Bonniwell's 2nd
Addition
Section 3. This ordinance shall take effect from and after passage and publication.
Adopted by the City Council this 23rd day of December, 2025.
ATTEST:
Matthew Jaunich, City Administrator Gary T. Forcier, Mayor
FIR
HUTCHINSON
A CITY ON PURPOSE.
DIRECTORS REPORT - PLANNING DEPARTMENT
To: Hutchinson Planning Commission
From: Dan Jochum, AICP
Date: November 18, 2025
Application: Consideration of Rezoning a property from R-2 to C-4 at 552, 554 and
564 Jefferson St SE.
Applicant: Jon Betker
Owner: B & C Hutchinson, LLC
Comprehensive Plan Amendment and Rezoning
Jon Betker has submitted a rezoning application for the properties located at 552, 554, 564
Jefferson St SE. The properties are currently zoned R-2 Medium Density Residential; however,
these properties had been used as a commercial use prior to a fire in the late 2010s. If the re-
zoning application were to be approved the applicant is looking at constructing a building for his
construction business.
Indicates property described in this notice
552 1
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�C
552
564 O
w
GENERAL INFORMATION
Existing Zoning:
R-2 Medium Density Residential
Property Location:
552, 554 , 564 Jefferson St SE
Existing Land Use:
Outdoor storage
Adjacent Land Use:
Residential and Commercial
Adjacent Zoning:
R-2 and C-4 Commercial
Comprehensive Plan:
Medium Density Residential
Zoning History:
Was a car dealership/auto shop for many years and
was more recently an electric motor shop prior to
the fire that happened about 6-7 years ago.
Applicable Regulations:
Sections 154.173 of City Code
Comprehensive Plan Amendment and Rezoning:
The property is currently zoned R-2 Medium Density Residential. Although this parcel had been
zoned residential it has never been a residential property. It most recently was a commercial
structure that housed the electric motor shop. Since the fire destroyed the building and it was
demolished the site has been used for storage by 6&C Plumbing and Heating.
The property across the street owned by Pro Auto is zoned C-4 commercial. Since there is
property adjacent to the subject lots zoned commercial and the property has always been used
as a commercial property there is solid finding of fact that would support the property being
guided commercial on the Comprehensive Plan Future Land Use Map. Additionally, there would
be solid findings to rezone the property to C-4 Commercial based on the Comprehensive Plan
amendment.
Figure 1. Existing Zoning
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Project Process
The following steps are required in order for this project to move forward.
• Rezoning Request — Under Consideration October 2025
• Building Permit Submittal
• Building Permit Approval
Recommendation:
Staff recommends approval of the rezoning with the following items to be addressed with the
following findings:
1. Amend Comprehensive Plan future land use designation to Commercial for the subject
parcel due to the parcels being adjacent to commercially zoned property and the fact
that the property has been used as a commercial property for past 100 or so years.
2. Rezone property to C-4 Fringe Commercial as it is consistent with Comprehensive Plan
amendment approved in conjunction with the rezoning.
c: HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE
IIIIIIII
Review and Approve/Deny Community Solar Projects
Agenda Item:
Department: Various
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff
New Business 0
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes 0
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Hutchinson Utilities and City Staff met with an electrical engineer in early Fall to review a State and Federal solar
program that would cover up to 100% (70% State/30% Federal) of funding for community solar projects. Nearly two
(2) dozen sites were reviewed around the City, both roof top as well as ground -mount opportunities.
After months of documentation sharing and review, staff learned on Monday, December 15th that we were awarded
21 projects (17 City and 4 HUC). After City review of those awarded, 4 have been initially declined by City staff due
to various factors, leaving 13 projects for consideration.
Current project parameters are the following:
-13 City projects + 4 HUC projects (see project list)
-70% project costs of labor and material paid by State
-30% project costs of labor and material paid by Federal
Not paid by the solar program:
-$7500/project for Engineering fees x 13 = $97,500 paid by City (30% refunded by Federal) *Final City cost of
$68,250.
City will front all monies with reimbursements to follow. A 10% holding fee is required by year-end to all contractors
along with signed contracts. The 10% covers the Federal Safe Harbor requirement and is to be reimbursed if for
some reason the projects don't advance.
City staff will be on hand to present project parameters, locations, and funding.
BOARD ACTION REQUESTED:
Review and Approve/Deny Community Solar Projects and associated contracts.
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 2,063,576.00
Total City Cost: $ 68,250.00 Funding Source: ??????
Remaining Cost: $ 1,995,326.00 Funding Source: state - 70%/Federal - 30%
City of Hutchinson So[aron Public Buildings Project 12fl62G25 Heh d 12/16/2025
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Changes
Cityef Hutchinson
CM1ecks 0u a before 12/3]/25
Apatlana
Ziegler
61,161
Cetlar Creek
�,]CC
City of Hufthinson
Utilities Commission
Total
f84,665
Hufthinson
Amount Seto—d in lT/2o2b
55,399
NOTE:) Aefuntletl by State in 36Oaysor
126,265
H-hi.son Utilities Commission
CM1ecks Due before 1&3]/26
Apatlana 3,—
Ziegler 2B,944
Cetlar Creek 14,5CC
Total 47,366
AM— --d in lT/2o2b U216
NOTE: Jo96Aefuntletlby Statein360aysor 33,376
EM,WM., V—MSOWtiuns Manage.M Fee
EMS Wit charge $7,56U per -for engineering antl mangement of all sRes.
Energy�comparetl to Market�$Savetl
$ 5,916,J95
W
fi964
kWM1 �30 years)
35,0U2,242
U.$—d
$ SJ5,U41
Capacity 45a-
$ 496,9J3
COMMERCE
DEPARTMENT
Minnesota Department of Commerce
85 7th Place East, Suite 280
Saint Paul, MN 55101
December 15, 2025
Dave Hunstad
Electric Distribution Manager
City of Hutchinson
225 Michigan St SE
Hutchinson, MN 55350
Dear Dave,
Thank you for your applications to the Minnesota Statewide Solar on Public Buildings Program. We are pleased
to inform you that your applications have been approved. The projects and award totals are noted below:
• City of Hutchinson - City Center. Award total: $87,985.00
• City of Hutchinson - 177 Inventory. Award total: $27,596.80
• City of Hutchinson - 1300 Adams Lift Station. Award total: $95,690.00
• City of Hutchinson - Compost Site. Award total: $97,944.00
• City of Hutchinson - Creekside Soils. Award total: $94,248.00
• City of Hutchinson - Forestry Building. Award total: $31,015 60
• City of Hutchinson - EDA Building. Award total: $34,280.40
• City of Hutchinson - Golf Course Rd Water Tower. Award total: $51,420.60
• City of Hutchinson - HATS Office. Award total: $101,500.00
• City of Hutchinson - HUC Office. Award total: $100,435.30
• City of Hutchinson - Fire Station. Award total: $99,400.00
• City of Hutchinson - Liquor Store. Award total: $100,435.30
• City of Hutchinson - Ice Arena. Award total: $100,435.30
• City of Hutchinson - WWTP. Award total: $101,302.60 C'4 )
• City of Hutchinson - Police Station. Award total: $100,435.30
• City of Hutchinson - Power Plant 1. Award total: $101,302.60
• City of Hutchinson - Power Plant 2. Award total: $101,302.60
CO M M-SP B04_20250731 1
apadana
C�%I ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Buyer and Property Informatiorr- -. -1 J!11111=11111111�
Buyer City of Hutchinson
Address for Solar Install 1500 Adams St, Hutchinson, MN 55350 (Composite)
Contact iL Mike Stifter
Phone 320-234-4212
Email mstifter@hutchinsommn.gov
Project Information low
Project Size in kW 52.8 kW DC
Project Price Per Watt $2.65
Total Project Price F $139,920.00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 1
apadana
C�%I ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
Commitment Fee for
Engineering and Permitting
3,992.00 1 10% for Engineering and Permits
Material Procurement and $69,960.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion 48,972.00 35% of Project Fee to be paid when Apadana completes
solar project installation of panels, inverters, and optimizers.
Commissioning Retainer $6,996.00 Final 5% balance due when utility has commissioned the
system.
TOTALS 139,920.00 Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 2
apadana
%�%I ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 3
apadana
%�%I ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $1,000,000 per occurrence.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
BUYER:
Authorized Signature:
Authorized Signature:
Name(printed) Lev Buslovich, President
Name rinted
Date: 12/8/2025
Date:
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Buyer and Property Informatio
if Hutchinson
Address for Solar Install 1500 Adams St, Hutchinson, MN 55350 (Creekside)
Contact iL Mike Stifter
Phone 320-234-4212
Email mstifter@hutchinsommn.gov
Project Size in kW 1 52.8 kW DC
Project Price Per Watt 1$2.55/watt
Total Project Price
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
Commitment Fee for
Engineering and Permitting
3,464.00 1 10% for Engineering and Permits
Material Procurement and $67,320.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion �$47,124.00 35% of Project Fee to be paid when Apadana completes
solar project installation of panels, inverters, and optimizers.
Commissioning Retainer $6,732.00 Final 5% balance due when utility has commissioned the
system.
TOTALS 134,640.00 Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $1,000,000 per occurrence.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
BUYER:
Authorized Signature:
Authorized Signature:
Name(printed) Lev Buslovich, President
Name rinted
Date: 12/8/2025
Date:
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Buyer
City of Hutchinson
Address for Solar Install City Forestry Bldg, 1100 Adams St SE, Hutchinson, MN 55350
Contact Mike Stifter
Phone 320-234-4212
Email mstifter@hutchinsommn.gov
Project Size in kW I 16.72kW DC
Project Price Per Watt $2.65/watt
Total Project Price $44,308.00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
Commitment Fee for
Engineering and Permitting
.80 1 10% for Engineering and Permits
Material Procurement and $22,154.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion �$15,507.80 35% of Project Fee to be paid when Apadana completes
solar project installation of panels, inverters, and optimizers.
Commissioning Retainer $2,215.40 Final 5% balance due when utility has commissioned the
system.
TOTALS 44,308.00 Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $1,000,000 per occurrence.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
BUYER:
Authorized Signature:
Authorized Signature:
Name(printed) Lev Buslovich, President
Name rinted
Date: 12/8/2025
Date:
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Buyer and Property Informatiorr- -.1
Buyer I City of Hutchinson
Address for Solar Install EDA Building, 1164 Benjamin Ave SE, Hutchinson, MN 55350
Contact Mike Stifter
Phone 320-234-4212
Email mstifter@hutchinsommn.gov
Project Information low
Project Size in kW 18.48 kW DC
Project Price Per Watt $2.65/watt
Total Project Price F $48,972.00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
Commitment Fee for
Engineering and Permitting
.20 1 10% for Engineering and Permits
Material Procurement and $24,486.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion �$17,140.20 35% of Project Fee to be paid when Apadana completes
solar project installation of panels, inverters, and optimizers.
Commissioning Retainer $2,448.60 Final 5% balance due when utility has commissioned the
system.
TOTALS 48,972.00 Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $1,000,000 per occurrence.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
BUYER:
Authorized Signature:
Authorized Signature:
Name(printed) Lev Buslovich, President
Name rinted
Date: 12/8/2025
Date:
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EXHIBIT A
Specifications
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 9
::-7 CEORR CREEK
evLergl/
Commercial Solar Agreement
City of Hutchinson
City Center
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 111
Hassan St SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts
with Customer to provide labor and materials to improve the Property, as outlined in
Section 2 of this Agreement (the "Work"). Customer agrees to all terms contained this
Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
3. (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
4. (2) CPS SCA25KTL-DO/US-208 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
::-7 CEORR CREEK
evLergl/
Commercial Solar Agreement
City of Hutchinson
Fire Station
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 205 3rd
Ave SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts with
Customer to provide labor and materials to improve the Property, as outlined in Section 2
of this Agreement (the "Work"). Customer agrees to all terms contained this Agreement,
and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 51 kilowatt (DC) solar array:
3. (88) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
4. (2) CPS SCA25KTL-DO/US-208 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $142,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,200.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
::-7 CEURR CREEK
evLergl/
Commercial Solar Agreement
City of Hutchinson
HATS Office
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 1400
Adams St SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts
with Customer to provide labor and materials to improve the Property, as outlined in
Section 2 of this Agreement (the "Work"). Customer agrees to all terms contained this
Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
3. (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
4. (1) CPS SCA50KTL-DO/US-480 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
::-7 CEORR CREEK
evLergl/
Commercial Solar Agreement
City of Hutchinson
Ice Arena
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 950
Harrington St SW, Hutchinson, MN 55350 (the "Property"). The Company hereby
contracts with Customer to provide labor and materials to improve the Property, as
outlined in Section 2 of this Agreement (the "Work"). Customer agrees to all terms
contained this Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
3. (120) Jinko EAGLE 78TR G4b JKM455-475M or Tier 1 Equivalent +/- 15W
4. (1) CPS SCA50KTL-DO/US-480 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
::-7 CEORR CREEK
emergz/
Commercial Solar Agreement
City of Hutchinson
Liquor Store
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 245
Washington Ave E, Hutchinson, MN 55350 (the "Property"). The Company hereby
contracts with Customer to provide labor and materials to improve the Property, as
outlined in Section 2 of this Agreement (the "Work"). Customer agrees to all terms
contained this Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
3. (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
4. (1) CPS SCA50KTL-DO/US-480 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
::-7 CEORR CREEK
evLergl/
Commercial Solar Agreement
City of Hutchinson
Police Station
as "Customer"
Dated as of December 9, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................11
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................6
10.
Modification/Waiver....................................................................7
It.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Parry, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 214 1st
Ave NE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts with
Customer to provide labor and materials to improve the Property, as outlined in Section 2
of this Agreement (the "Work"). Customer agrees to all terms contained this Agreement,
and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
3. (96) Jinko JKM580N-72HL-BDV or Tier 1 Equivalent +/- 15W
4. (2) CPS SCA25KTL-DO/US-208 Inverter
5. Roof Racking
6. Wire, Conduit, Disconnects, and Miscellaneous Materials
7. Building & Electrical Permits
8. Utility Interconnection
9. 5-year Workmanship Warranty'
10. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
10.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
CEDAR CREEK ENERGY
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
10.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
11. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
CEDAR CREEK ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
12. Change Orders
As used herein, "Change Order' shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
13. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
CEDAR CREEK ENERGY
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
14. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
15. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
16. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
CEDAR CREEK ENERGY
17. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
18. Indemnification / Limitation of Liability
18.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
18.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal incentives
nor shall the Company indemnify Customer for any lost incentives.
18.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
18.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
19. No Tax Advice
19.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
CEDAR CREEK ENERGY
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
19.2. Customer's Responsibility. Customer acknowledges and agrees that:
19.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
19.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
19.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
19.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
20. Binding Effect / Assignment
20.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
20.2. Except as detailed in this Section 19, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
20.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
20.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
21. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
CEDAR CREEK ENERGY
22. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
23. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
24. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104t' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob e,cedarcreekenergy com
25. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
26. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
CEDAR CREEK ENERGY
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR CREEK ENERGY 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CREEK ENERGY 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR CREEK ENERGY
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and
Ziegler Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may
be individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 1300 Adams St Hutchinson, MN
("Property"). The installation services ("Installation Services") to be provided by Seller are set forth in
Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance with applicable
laws, regulations and ordinances in effect as of the Effective Date and continuing throughout the duration
of the Installation Services until completed. At all times during the installation, Buyer shall remain the
operator of the Property as that term is used in applicable federal and state regulations. Buyer will use best
efforts to provide all Permits in a timely manner. To the extent that Buyer's internal safety requirements
differ from applicable laws and safety regulations and such difference requires Seller to incur additional
cost for personnel, labor or materials in excess than that required for compliance with applicable laws and
safety regulations, then the parties agree that the additional cost shall be added to the Purchase Price by
change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
,cc,,
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 1
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $136,700 USD ("Purchase Price"). The Purchase Price does not include applicable sales and
local taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional
cost to Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in
this agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. This contract is subject to the State Grant Award of 70%.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $13,670.00 USD,
shall be due and payable within 20 days from the date this Agreement is signed by Buyer.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $54,680.00 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $34,175.00 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $27,340.00 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $6,835.00 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 1300 Adams St Hutchinson, MN
• Initial Layout
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
• Installed capacity (e.g., 100 MW AC).
o 30kW AC/38.16kW DC
• Interconnection voltage.
o Pending Site Visit
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation
■ Electrical Installation
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
• Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array.
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
• Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver.4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT 9
Exhibit E — Warranties
Workmanship: 2 Year Ziegler Energy Solutions
Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and
Ziegler Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may
be individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 977 Golf Course Rd NW
Hutchinson, MN ("Property"). The installation services ("Installation Services") to be provided by Seller
are set forth in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance
with applicable laws, regulations and ordinances in effect as of the Effective Date and continuing
throughout the duration of the Installation Services until completed. At all times during the installation,
Buyer shall remain the operator of the Property as that term is used in applicable federal and state
regulations. Buyer will use best efforts to provide all Permits in a timely manner. To the extent that Buyer's
internal safety requirements differ from applicable laws and safety regulations and such difference requires
Seller to incur additional cost for personnel, labor or materials in excess than that required for compliance
with applicable laws and safety regulations, then the parties agree that the additional cost shall be added to
the Purchase Price by change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
,cc,,
1 (c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 1
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $73,458 USD ("Purchase Price"). The Purchase Price does not include applicable sales and local
taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional cost to
Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in this
agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. This contract is subject to the State Grant Award of 70%.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $7,345.80 USD,
shall be due and payable within 20 days from the date this Agreement is signed by Buyer.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $29,383.20 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $18,364.50 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $14,691.60 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $3,672.90 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 977 Golf Course Rd NW Hutchinson, MN
• Initial Layout
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
• Installed capacity (e.g., 100 MW AC).
o 12kW AC/I5.90kW DC
• Interconnection voltage.
o Pending Site Visit
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation
■ Electrical Installation
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
• Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array.
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
• Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver.4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT 9
Exhibit E — Warranties
Workmanship: 2 Year Ziegler Energy Solutions
Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and Ziegler
Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may be
individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 439 Prospect St NE Hutchinson,
MN ("Property"). The installation services ("Installation Services") to be provided by Seller are set forth
in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance with
applicable laws, regulations and ordinances in effect as of the Effective Date and continuing throughout the
duration of the Installation Services until completed. At all times during the installation, Buyer shall remain
the operator of the Property as that term is used in applicable federal and state regulations. Buyer will use
best efforts to provide all Permits in a timely manner. To the extent that Buyer's internal safety requirements
differ from applicable laws and safety regulations and such difference requires Seller to incur additional
cost for personnel, labor or materials in excess than that required for compliance with applicable laws and
safety regulations, then the parties agree that the additional cost shall be added to the Purchase Price by
change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
,cc,,
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 1
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $144,718 USD ("Purchase Price"). The Purchase Price does not include applicable sales and
local taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional
cost to Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in
this agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. This Contract is subject to the State Grant Approval of 70%.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $14,471.80 USD,
shall be due and payable within 20 days from the date this Agreement is signed by Buyer.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $57,887.20 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $36,179.50 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $28,943.60 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $7,235.90 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 439 Prospect St NE Hutchinson, MN
• Initial Layout
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Installed capacity (e.g., 100 MW AC).
o 38.4kW AC/50.88kW DC
• Interconnection voltage.
o Pending Site Visit
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation
■ Electrical Installation
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
• Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
• Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver.4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT 9
Exhibit E — Warranties
Workmanship: 2 Year Ziegler Energy Solutions
Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
KA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Review and Approve/Deny Community Solar Projects
Agenda Item:
Department: Various
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Mike Stifter
Agenda Item Type:
Presenter: Mike Stifter
Reviewed by Staff R]
New Business
Time Requested (Minutes): 10
1 License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Hutchinson Utilities and City Staff met with an electrical engineer in early Fall to review a State and Federal solar
program that would cover up to 100% (70% State/30% Federal) of funding for community solar projects. Nearly two
(2) dozen sites were reviewed around the City, both roof top as well as ground -mount opportunities.
After months of documentation sharing and review, staff learned on Monday, December 15th that we were awarded
24 projects (19 City and 5 HUC). After Citv review of those awarded, 5 have been initiallv declined by City staff due
to various factors, leaving 14 projects for consideration.
Current project parameters are the following:
-14 City projects + 4 HUC projects (see project list)
-70% project costs of labor and material paid by State
-30% project costs of labor and material paid by Federal
Not paid by the solar program:
-$7500/project for Engineering fees x 14 = $105,000 paid by City (30% refunded by Federal) *Final City cost of
$73,500.
City will front all monies with reimbursements to follow. A 10% holding fee is required by year-end to all contractors
along with signed contracts. The 10% covers the Federal Safe Harbor requirement and is to be reimbursed if for
some reason the projects don't advance.
City staff will be on hand to present project parameters, locations, and funding.
BOARD ACTION REQUESTED:
Review and Approve/Deny Community Solar Projects
Fiscal Impact: $ 0.00 Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: No
PROJECT SECTION:
Total Project Cost: $ 2,063,576.00
Total City Cost: $ 73,500.00 Funding Source: Enterprise Funds/Capital Projects
Remaining Cost: $ 1,990,076.00 Funding Source: State - 70%/Federal - 30%
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l ENERGY
SOLAR 1 EV CHARGING 1 BATTERY STORAGE
SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
,yer and Property Information
Bu City of Hutchinson
Address for Solar Install 225 Michigan St SE, Hutchinson, MN 55350 (Cold Storage)
v ontac
Phone
Project Informatio
Project Price Per Watt
Llatt Jaunlcn
320-583-9330
mjaunlch@hukchmsonmri go;
286
$2.65/w,
Total Project Price- $75.790 00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM
PAGE 1
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ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TERMS
Commitment Fee for $7.579,00 10% for Eng;-leel.rig and Permits
Engineering and Permitting
• r Im
Material Procurement and 07,895.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization I subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
i
installation Completion $26,526 50 351,/. of Project Fee to oe paid wnen Apadana cor7ii:�,letes
solar oro � ct insta`i=tlon of Daniels, Inverters. and or:tnrnlzers
Commissioning Retainer $3,789.50 i Final 5% balance due when utility has commissioned the
1 1 system.
TOTALS S75,780.00 Total Protect Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will Issue an
Invoice for additienai costs and Buyer will submit payment
upon receipt of such Invoice
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 2
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ENERGY
SOLAR I EV CHARGING I BATTERY STORAGE
3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from the grid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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SOLAR I EV CHARGING 1 BATTERY STORAGE
m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 4
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 5
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 6
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall nct be dccmcd a ..,a :er of any other term
of thisAgreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 7
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA BUYER:
Authorized Signature: Authorized Signature:
Name(printed) Lev Buslovich, President Name(printed)
Date: 12/8/2025 Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 9
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
.. U. Iities Cgniis8ipn
Address for Solar Install i177 Michigan St SE, Hutchinson, MN 55350 (Inventory)
Contact Mat', Jaunicr
Phone 320-583-9330
ITma i I m}aunich a@hutchinsonrnn gov
14 a8
Project Price Per Watt $2.80/watt
Total Project Price $3c 42==
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 1
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TERMS
Commitment Fee for
$3 942.40
10% for Engineering and Permits
Engineering and Permitting
am
Material Procurement and
19,712.00
50% of Project Fee shall be paid to Apadana by Buyer
Mobilization
subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion
- ' -98.40
35;%• of Project Fee to tie paid when Apadana completes
sofa, project installation of panels inverters, and optimizers
Commissioning Retainer
�i
$1,971.20
Final 5% balance due when utility has commissioned the
system.
TOTALS
$39.424.00
Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will Issue an
invoice for additional costs and Buyer will submit payment
upon receipt of SU& invoice
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third parry hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 4
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including W-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Dave Hunstad, Elec Dist./Transmission Mgr, Hutchinson Utilities, 225 Mich St. SE, Hutchinson, MN 55350
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 6
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 7
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA BUYER:
Authorized Signature:
Authorized Signature:-
Name(printed) Lev Buslovich Name (prin ed
Date: 12/9/25 Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Buyer and Property Information " Buyer of H wpon
Address for Solar Install Rec Center, 900 Harrington St SW, Hutchinson, MN 55350
Mike StlRer
Phone
6620-234-4212
hutchinsommn gov
8kWDC
Project Price Per Watt $2.38/watt
Total Project Price =125 664
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANA.LLC
PURCHASE ORDER — SOLAR PV SYSTEM
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TERMS
Commitment Fee for $12 566 40 10% for Engineering and Permits
Engineering and Permitting
Material Procurement and $62,832.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion $43,982.40 35140 of Project Fee to be paid when Apadaria completes
solar project installation of panels. Inverters, and optimizers-
E Commissioning Retainer $6,283.20 Final 5% balance due when utility has commissioned the
system.
TO ['ALL ;.1 5 Total Project Cost
Change Ofders padana will provide any additional or substitute materials
Er
required by an approved Change Order and will issue an
W� invoice for additional costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 6
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of thisAgreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
1) Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA BUYER:
Authorized Signature: Authorized Signature:
Name (printed) Lev Buslovich, President Name(printed)
Date: 12/8/2025 Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array")
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
Project Size in kW 52.8 kW DC
Project Price Per Watt $2.65
Total Project Price $139 920 00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TERMS
Commitment Fee for $13 992 00 10% for Engineering and Permits
Engineering and Permitting
Material Procurement and 669,960.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
i
material and scheduling of project mobilization.
Installation Completion $4F.3 972.DD 35% of Project Fee to be pale when Apadana completes
solar protect Instaliaticn of panels. Inverters, and optimizers
Commissioning Retainer '$6,996.00 Final 5% balance due when utility has commissioned the
j system.
i'OTAL.S $139.920.00 Total Project Cost
Change Orders Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
invoice for addlttenai costs and Buyer will submit payment
upon receipt of such invoice.
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 4
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of thisAgreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 7
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
Authorized Signature:
BUYER:
Authorized Signature:
Name forinted] Lev Buslovich. President I Name
Date: 12/8/2025
Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
City of Hutchinson
Address for Solar Install 1500 Adams St, Hutchinson, MN 55350 (Creekside)
c. - - R
Phone 320-234-4212
mstlfter-
Size in kW 52.8 kW DC
Project Price Per Watt $2.55/watt
Total Project Price $134,640,(.
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specification§, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TERMS
Commitment Fee for $13.464 00
Engineering and Permitting
r — r•--��
Material Procurement and $67,320.00
Mobilization
10% for Engineering and Permits
50% of Project Fee shall be paid to Apadana by Buyer
subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
}nstallation Completion W.' 24.0. 35,,. of Project Fee to be pain when Apadana complete=
solar protect installation of panels inverters, and optimize
Commissioning Retainer $6,732.00 Final 5% balance due when utility has commissioned the
system.
TOTALS 5134.64b Uu I
Total Project Cost '
Change Orders
Apadana will prai any addltal or substitute materials
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such involve
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including W-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (31) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 6
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of thisAgreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 7
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
Authorized Signature:
Name (printed) Lev B
Date: 12/8/2025
President
BUYER:
Authorized Signature:
Name [printed
Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 9
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
i Phone 320-234-4212
Email mstitter@hutchinsommn.gr. ,
Project Size in kW 16.72kW ❑C
Project Price Per Watt $2.65/watt
Total Project Price $44,308.00
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANIA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 1
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AND TER
Commitment Fee for $4.430.80 10% for Engineenng and Permits
Engineering and Permitting
Material Procurement and S22,154.00 50% of Project Fee shall be paid to Apadana by Buyer
Mobilization subsequent to utility approval for the purchase of solar
material and scheduling of project mobilization.
Installation Completion $1&507.80 35`: - of Project Fee to be paid when Apadana completes
solar project inst0ati!i---n of panels Inverters and optimizers
Commissioning Retainer $2,215.40 Final 5% balance due when utility has commissioned the
system.
TOTALS $44.308 00 Total Project Cost .
Change Orders 411Apadana will provide any additional or substitute materials
required by an approved Change Order and will issue an
tnvolce for additional costs and Buyer will submit payment
upon receipt of such invoice
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 2
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 3
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 4
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 6
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (31d) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 6
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of this Agreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
1) Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 7
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
Authorized Signature:
Lev Buslovich, President
Date: 12/8/2025
BUYER:
Authorized Signature:
Name
Date:
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 8
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EXHIBIT A
Specifications
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 9
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SOLAR PV SYSTEM - PURCHASE AGREEMENT
THIS AGREEMENT (the "Agreement") made the 8th day of December, 2025 (the "Effective Date") by and between
Apadana, L.L.C., and Apadana Energy LLC dba Apadana Solar Technologies together hereinafter "Apadana" and _City
of Hutchinson_ hereinafter "Buyer", collectively the "Parties".
WHEREAS Apadana is an engineering, procurement, and construction provider of solar PV systems ("solar array"),
and
WHEREAS Buyer seeks to purchase and install a new solar array at Buyer's facility, and
WHEREAS Buyer wishes to contract with Apadana to provide all necessary items, including labor and materials, to
install a Solar Array, as defined herein, to be operated at Buyer location, and
WHEREAS the Parties hereby agree that the terms and conditions contained herein shall be those which govern the
purchase and installation of the Solar Array and that in the even that Buyer issues its own purchase order and terms
contained in Buyer purchase order are in conflict with those contained herein, that the terms in this Agreement shall
govern,
NOW THEREFORE, the Parties hereby agree as follows:
1. Scope of Work
Apadana shall furnish the material, labor, equipment, tools, and supervision necessary to construct a solar PV system
described in the "Specifications" attached here to Exhibit A (the "Project"), which shall be delivered to and performed at
Buyer's property location identified below. In addition, Apadana shall obtain utility and city governmental approval of the
engineering plans and permits for construction of the project. The cost of engineering and electrical building permit(s) is
included in the lump sum amount. Any upgrades required for electrical code, electrical effectiveness and utility
transmission capacity will be paid for by Buyer. Apadana will work with Buyer and the local utility to secure the
interconnection agreement and bring the project through to commissioning.
ike OW
Project Size in kW 18 48 kW DC
Project Price Per Watt $2.65/watt
Total Project Price `V�� b�
NOTE: Following an engineering site visit, the project size and components contained in this Purchase Order may change with advance
notice to Buyer and Buyer agreement.
APADANA. LLC PURCHASE ORDER — SOLAR PV SYSTEM PAGE 1
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Project size in kilowatts and subsequent project price may change based on utility feedback and approval
parameters. Any alteration or deviation from the Specifications, including but not limited to any alteration or deviation
involving modifications to specified material or labor, will be executed only upon a written order signed by the Parties
(a "Change Order"). When a Change Order results in a price change, such a change will be incorporated into the
Specifications, updating the Project Price.
2. Payments
Buyer payment for services and materials included in the Specifications, which may be adjusted from time to time by a
Change Order will be made in accordance with the Payment Schedule below.
PAYMENT SCHEDULE AN13 TERMS
Commitment Fee for
Engineering and Permitting
Material Procurement and
Mobilization
installatio;� Comolelion
Commissioning Retainer
i
TOTALS
r 8, t 100/6 For Engineering and Permits
P24,486.00 50% of Project Fee shall be paid to Apadana by Buyer
subsequent to utility approval for the purchase of solar
I material and scheduling of project mobilization.
$17 140 C' 35-, of Project Fee to be pala when Apadana completes
solar project Installation of panels Inverters and optimizers
$2,448.60 Final 5% balance due when utility has commissioned the
system.
$48,972.00 Total Project Cost 0
Change Orders Apadana will provide any additional or substitute materiats
required by an approved Change Order and will issue an
invoice for additional costs and Buyer will submit payment
upon receipt of such invoice
a) Buyer checks should be made payable to Apadana, LLC
b) Buyer payment by Credit Card is subject to a 3.5% processing fee.
c) Buyer agrees that in the event of a Change Order where the project cost changes, then the payments due
per the above schedule will be updated and Buyer will submit additional payments when necessary to meet
the defined percent of total project cost.
d) The commitment fee for engineering and permitting is not refundable.
e) Any payment not received within five (5) days after commissioning of the project shall incur a late fee of $35
plus 1.5% monthly interest rate will be added for payments received after 5 days past the invoice due date.
f) Apadana participates in the Credit Trade Exchange Program, reporting both prompt and slow payments.
g) In the event that payment is not received as required, Apadana may suspend work on the project until such
time as all payments due have been made. A failure to make payment for a period in excess of 30 days
from the due date of the payment shall be deemed a material breach of this Agreement.
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3. General Working Provisions
a) All work delivered under this Agreement shall be completed in a workman -like manner and in compliance with
all building codes and other applicable laws.
b) Apadana shall furnish a plan and scale drawing showing the shape, size dimensions, and construction and
equipment specifications for property improvements, a description of the work to be done, and a description of
the materials to be installed.
c) Apadana may, at its sole discretion, engage qualified third -party subcontractors to perform any or all of the work
associated with this project, provided Apadana shall remain responsible for the performance of such third parties
and that such subcontractors shall be paid in full for their work.
d) Apadana shall furnish to Buyer appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due, if requested by Buyer.
e) All change orders shall be made in writing and signed both by Buyer and Apadana, and shall be incorporated
herein, and become a part of this Agreement.
f) Apadana shall at its own expense, unless noted in the Specifications, obtain all permits necessary for the work
to be performed.
g) Apadana shall remove all construction debris associated with this project and leave the property in pre-existing
condition.
h) Unless otherwise included in the Specification, Apadana will not be required to repair existing electrical wiring
issues or code violations identified on the Project property. Such items will be identified and brought to the
Buyer's attention to resolve or be treated as a Change Order.
i) Buyer will provide access to the property and roof for inspection or evaluation by local, state, or federal agencies,
electric utility representatives, and as needed for engineering, permitting, certification and/or inspection. Once
commissioned, certain solar energy equipment systems will be enabled to "net -meter" (i.e., to produce more
electricity than that which is being consumed, with the excess electricity transferred to the utility grid for a credit).
When consumption exceeds the PV system's production, electricity will be drawn from thegrid.
j) Apadana shall mount solar modules and racking to the building's roof, including any required electrical
equipment such as inverters, electrical panels, utility meters, disconnects, and monitoring equipment shall be
permanently mounted to the building's exterior wall near the existing electrical service equipment. If needed,
customer may install a fence around the wall -mounted panel and equipment to protect against vandalism.
k) Industry best practices advise against installation of solar systems on roofs over 15 years of age. Buyer
acknowledges that the entire existing roof is less than 15 years old and meets these requirements, and Buyer
assumes all future costs related to solar system modifications to accommodate roof repairs.
1) The estimated energy production of the solar photovoltaic (PV) system described in this Proposal (Agreement)
is based on system specifications, site conditions, and third -party modeling software, including but not limited
to Aurora Solar, which utilizes 44-year historical weather and solar irradiance data specific to the installation
location. These projections are intended solely for informational and planning purposes. Customer
understands and acknowledges that actual system performance and energy output may vary year to year from
these estimates due to numerous factors beyond Apadana's control, including but not limited to variations in
weather and climate patterns, changes in shading or environmental conditions, utility grid limitations,
equipment degradation, and other unforeseen circumstances. Installer does not guarantee or warrant specific
energy production levels or financial savings. Apadana expressly disclaims any liability for losses or
underperformance arising from deviations between estimated and actual system production attributable to
weather variability or other external factors not caused by Installer's negligence or breach of contract.
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m) Any financial models, return -on -investment (ROI) estimates, payback timelines, or related economic forecasts
provided by Apadana are based on assumptions including, but not limited to, estimated solar energy
production, current utility rates and rate structures, available tax incentives or rebates, and customer energy
usage patterns. These estimates are intended for illustrative purposes only and do not constitute a guarantee
of performance, savings, or financial return. Customer acknowledges that utility rates may change, tax
incentives may expire or become unavailable, and actual energy usage or system output may vary due to
weather, maintenance, or other factors outside Installer's control. As such, Installer makes no warranty or
representation regarding the accuracy of projected financial outcomes and shall not be held liable for any
difference between projected and actual savings, returns, or payback period.
n) Upon completion of the installation, Apadana will arrange for inspection of the system by the municipal inspector
and/or utility inspector. Upon successful completion of these inspections, the solar system will be turned on for
operation. Apadana has no control over the scheduling of these inspections and will make the best efforts to
expedite them when possible.
o) Buyer will make the property accessible and all electrical equipment available for maintenance and inspection
at any reasonable time. If Apadana performance of any obligation hereunder is delayed due to reasons beyond
Apadana control, the time for performance of such obligation will be postponed for a period equal to the number
of days of such delay. In no event will Apadana be liable for any damages or loss of production resulting from
any delay in the delivery or repair of the equipment or any delay in the performance of any maintenance outside
of Apadana's control.
p) All repairs, maintenance, and related solar system warranty work performed by any third party hired by the Buyer
without Apadana written approval shall nullify any existing solar system warranties.
q) Apadana is responsible for all shipping, tax, and delivery cost of all equipment and materials.
4. Prevailing Wage and Apprenticeship Compliance - Responsibility for Compliance with Federal Funding
Requirements
Buyer acknowledges that certain funding sources, including but not limited to federal tax credits under the Inflation
Reduction Act (IRA) or other government programs, may trigger compliance obligations under the Davis -Bacon Act
(DBA) or similar prevailing wage and apprenticeship mandates (collectively, "PWA Requirements"). Apadana shall not
be responsible for compliance with any PWA Requirements unless such obligations are expressly identified in writing
and agreed to by Apadana prior to the commencement of construction.
If Buyer elects to pursue funding, tax credits, or other benefits that impose PWA Requirements after execution of this
Agreement, Buyer shall:
a) Notify Apadana in writing of such election at least thirty (30) days prior to the commencement of construction;
b) Indemnify and hold harmless Apadana from any and all costs, penalties, liabilities, or obligations arising from
such compliance, including but not limited to wage adjustments, fringe benefit contributions, apprenticeship
participation, recordkeeping, and audit defense;
c) Amend this Agreement to reflect any changes in scope, cost, or schedule resulting from the imposition of PWA
Requirements, including equitable adjustments to the contract price and timeline;
d) Provide all necessary documentation and guidance to enable Apadana to comply with applicable PWA
Requirements, including wage determinations, apprenticeship program details, and reporting formats.
Failure by Buyer to comply with the obligations set forth in this clause shall relieve Apadana of any responsibility for
PWA compliance and shall constitute a material breach of this Agreement.
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5. Warranties
a) Apadana utilizes manufacturers' performance and production specifications to engineer the PV system and
disclaims any responsibility or guarantee for actual energy production achieved by the PV system which relies
significantly on local site conditions and other variable outside Apadana's control.
b) All warranties are subject to and contingent upon payment in full of all amounts as set forth in this agreement.
Manufacturer's warranties are passed through to the Buyer. The warranties herein do not apply to damage from
fire (except if it was directly caused by the solar installation), vandalism, extreme acts of nature, and other
conditions beyond control of Apadana.
c) Apadana workmanship warranties are solely limited to the proper installation of the solar system. Apadana
cannot promise total uninterrupted or error -free operation of the Solar PV equipment, which is dependent on
electrical components and other variables including Wi-Fi, internet, and utility transmission.
d) Apadana shall not be liable under any circumstances for limitations, depletion, interruptions, disruptions, or
fluctuations in the energy collection to or output from the solar panels or equipment caused by occurrences
beyond the control of Apadana.
e) All solar and electrical equipment is warranted by the manufacturers. Manufacturers provide 25 or 30-year
performance warranties for solar modules, and 10 to 20 years inverter warranties (depending on model) which
can be extended with the purchase of extended warranty coverage.
f) Installation and workmanship warranties are provided for 10 years and can be extended up to 25 years from the
date of commissioning of the solar system with the purchase of extended warranty coverage. Project -specific
warranties are listed in the Specifications.
g) Apadana shall not warranty occurrences of failure including, and without limitation, manufacturing defects;
design specifications of the equipment; pre-existing conditions of the roof, trees or obstacles impeding the solar
system, sunlight depletion, blockage or limitations; unintended or increased shading within or near the vicinity,
weather -related impacts, Buyer or third party tampering with the solar equipment or other electrical equipment,
including attempts to reposition equipment, walk on top of or hinder equipment, re -calibrate or reorient the
equipment or electrical flow, lightning, static electricity, temperature cycling and/or fluctuation, the collection on
or near the equipment of dust, leaves, debris or burying rodents or birds nesting and damaging equipment, hail
damage, water damage, or damage to the equipment caused by events beyond the control or foreseeability of
Apadana, such as, but not limited to, issues arising from plumbing, mechanical or electrical interfaces with the
solar equipment or solar system malfunctions due to manufacturing defects or deficiencies.
EXCEPT FOR THE WARRANTIES SET FORTH IN THIS AGREEMENT AND ANY
SPECIFICATION, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, INCLUDING WITHOUT LIMITATION TO ANY WARRANTY THAT DELIVERABLES
ARE ERROR -FREE, OR ARE COMPATIBLE WITH ALL HARDWARE AND SOFTWARE
CONFIGURATIONS, AND ANY AND ALL WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. DELIVERABLES, INTELLECTUAL PROPERTY,
TECHNICAL SUPPORT AND/OR SERVICES UNDER THIS AGREEMENT ARE PROVIDED "AS
IS".
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6. Indemnification
To the fullest extent permitted by law, Buyer shall indemnify, defend and hold harmless Apadana and its agents,
employees, and owners, from and against claims, damages, losses and expenses, including but not limited to attorney's
fees, arising out of or resulting from performance of the equipment or providing of materials to the extent caused in whole
or in part by negligent or wrongful acts or omissions of, or a breach of this agreement by, Apadana, a subcontractor,
anyone directly or indirectly employed by them or anyone whose acts they are responsible for legally.
7. Insurance
Apadana, and any subcontractor involved in this project, has purchased insurance and agrees that they will keep in force
for the duration of the performance of the work or for such longer term as may be required by this agreement, in a
company or companies lawfully authorized to do business in the State of Minnesota, such insurance as will protect the
Buyer and the owner of the real property, from claims for loss or injury, which might arise out of or result from Apadana's
performance hereunder.
Apadana represents and agrees that said insurance is written for and shall be maintained in an amount not less than
the limits of the liability specified below or required by law, whichever coverage is greater. Apadana certifies that
coverage written on a "claims made" form will be maintained without interruption from the commencement of work until
the expiration of all applicable statutes of limitation.
Worker's Compensation $500,000.
Comprehensive General Liability with limits of not less than $2,000,000.
Comprehensive Automobile Liability (owned, non -owned, hired) of $1,000,000 for each accident.
8. Lien Notice
This notice advises Buyer of their rights under state laws concerning property improvements. For example:
Any person or company supplying labor or materials for this solar project to Buyer property may file a lien against
this property if that person or company is not paid for their work.
Under [state] law, Buyer may pay persons, who supplied labor or material, for this project directly and deduct
this amount from the Contract Price (Project Fee) or withhold the amounts due Apadana until 120 days after
completion of the improvement unless Apadana provides Buyer a lien waiver signed by persons who supplied
the labor or material and provided timely notice.
9. Notices
Any notice to be given or document to be delivered to either the Buyer or Apadana pursuant to the Agreement will be
sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or
delivery of documents will have been given, made, and received on the day of delivery if delivered personally or on the
third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:
To Apadana: Lev Buslovich, President, Apadana, 3401 Nevada Avenue North, New Hope, MN 55427
To Buyer: Mike Stifter, Hutchinson Public Works Director, 111 Hassan St. SE, Hutchinson, MN 55350
(Buyer Representative, Title, Buyer Address)
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10. General Provisions:
a) Heading. Headings are inserted for the convenience only and are not to be considered when interpreting this
Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean
and include the feminine and vice versa.
b) Survival. Sections 2, 4 and 5 shall survive termination of this Agreement.
c) No Assignment. Neither Party may assign its right or delegate its performance hereunder without prior written
consent of the other party, and any attempted assignment or delegation without such consent will be void.
d) Modifications. This Agreement shall not be altered, amended, nor modified by oral representation made before
or after the execution of this Agreement. Any modifications to this Agreement must be in writing and duly
executed by all Parties. Any waiver of any requirement of this Agreement shall be limited to the circumstance or
event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term
of thisAgreement.
e) Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of
Minnesota, including the Minnesota Uniform Commercial Code and the Buyer and Apadana hereby attorn to the
jurisdiction of the Courts of the State of Minnesota.
f) Severability. The provisions of this Agreement are severable. If any portion, provision, or part of this Agreement
is held, determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for
any reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
g) Inurement of Agreement. This Agreement will inure to the benefit of and be binding upon the Buyer and
Apadana and their respective successors and assigns.
h) Agreement Timing. Time is of the essence in this Agreement. Both parties will use reasonable business efforts
to perform all tasks laid out in this Agreement.
i) Capacity to Sign. The individual whose signatures are affixed to this Agreement in a representative capacity
represent and warrant that they are authorized to execute the Agreement on behalf of and to bind the entity on
whose behalf the signature is affixed.
j) Costs for Collections. If Apadana takes actions to enforce this agreement, including collecting unpaid amounts
due from Buyer arising out of or in connection with this Agreement, Apadana shall be entitled to recover from
Buyer and Buyer agrees to pay Apadana's attorney's fees as well as related expenses incurred.
k) Buyer Right to Cancel Agreement. Buyer may cancel this purchase any time prior to midnight of the third
business day following purchase date. See attached notice of cancellation form for an explanation of this right.
Entire Agreement. This Agreement constitutes the entire agreement between the parties and there are no
further items or provision either oral or otherwise. Buyer acknowledges that it has not relied upon any
representations of Apadana as to prospective performance of any subject matter covered in this Agreement but
has relied upon its own inspection and investigation of the subject matter. This Agreement, along with the
Specifications, represent a single, integrated, written contract expressing the entire understanding and
agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements,
written or oral, relating thereto.
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IN WITNESS THEREOF, the parties by signing below agree to the terms and conditions as outlined within.
APADANA
Authorized Signature:
BUYER:
Authorized Signature:
Name (printed) Lev Buslovich. President I Name
Date: 12/8/2025
Date:
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EXHIBIT A
Specifications
APADANA. LLC PURCHASE ORDER - SOLAR PV SYSTEM PAGE 9
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson (`Buyer") and
Ziegler Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may
be individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 1300 Adams St SE, Hutchinson,
MN ("Property"). The installation services ("Installation Services") to be provided by Seller are set forth
in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance with
applicable laws, regulations and ordinances in effect as of the Effective Date and continuing throughout the
duration of the Installation Services until completed. At all times during the installation, Buyer shall remain
the operator of the Property as that term is used in applicable federal and state regulations. Buyer will use
best efforts to provide all Permits in a timely manner. To the extent that Buyer's internal safety requirements
differ from applicable laws and safety regulations and such difference requires Seller to incur additional
cost for personnel, labor or materials in excess than that required for compliance with applicable laws and
safety regulations, then the parties agree that the additional cost shall be added to the Purchase Price by
change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
«C„
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $136,700 USD ("Purchase Price"). The Purchase Price does not include applicable sales and
local taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional
cost to Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in
this agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. Pending state approval.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $13,670.00 USD,
shall be due and payable upon receipt of invoice.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $54,680.00 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $34,175.00 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $27,340.00 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $6,835.00 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
0 Site Address
o 1300 Adams St SE Hutchinson, MN
• Initial Layout
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
• Installed capacity (e.g., 100 MW AC).
o 30kW AC/38.16kW DC
• Interconnection voltage.
o 480
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation using prevailing wage
■ Electrical Installation using prevailing wage
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
Warranty
o Certificates
■ OEM and EPC warranties for equipment and workmanship.
• Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array.
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
• Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT 9
Exhibit E — Warranties
Workmanship: 2 Year Ziegler Energy Solutions
Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and
Ziegler Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may
be individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 977 Golf Course Rd NW
Hutchinson, MN ("Property"). The installation services ("Installation Services") to be provided by Seller
are set forth in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance
with applicable laws, regulations and ordinances in effect as of the Effective Date and continuing
throughout the duration of the Installation Services until completed. At all times during the installation,
Buyer shall remain the operator of the Property as that term is used in applicable federal and state
regulations. Buyer will use best efforts to provide all Permits in a timely manner. To the extent that Buyer's
internal safety requirements differ from applicable laws and safety regulations and such difference requires
Seller to incur additional cost for personnel, labor or materials in excess than that required for compliance
with applicable laws and safety regulations, then the parties agree that the additional cost shall be added to
the Purchase Price by change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
«C„
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 1
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $73,458 USD ("Purchase Price"). The Purchase Price does not include applicable sales and local
taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional cost to
Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in this
agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. Pending state approval.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $7,345.80 USD,
shall be due and payable upon receipt of invoice.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $29,383.20 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $18,364.50 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $14,691.60 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $3,672.90 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 977 Golf Course Rd NW Hutchinson, MN
• Initial Layout
ve r. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
• Installed capacity (e.g., 100 MW AC).
o 12kW AC/15.90kW DC
• Interconnection voltage.
o 480
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit S — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation using prevailing wage
■ Electrical Installation using prevailing wage
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
■ Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
■ Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
■ Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
• Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array.
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit E — Warranties
• Workmanship: 2 Year Ziegler Energy Solutions
• Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT 10
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and
Ziegler Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may
be individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 1400 Adams St SE, Hutchinson,
MN ("Property"). The installation services ("Installation Services") to be provided by Seller are set forth
in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance with
applicable laws, regulations and ordinances in effect as of the Effective Date and continuing throughout the
duration of the Installation Services until completed. At all times during the installation, Buyer shall remain
the operator of the Property as that term is used in applicable federal and state regulations. Buyer will use
best efforts to provide all Permits in a timely manner. To the extent that Buyer's internal safety requirements
differ from applicable laws and safety regulations and such difference requires Seller to incur additional
cost for personnel, labor or materials in excess than that required for compliance with applicable laws and
safety regulations, then the parties agree that the additional cost shall be added to the Purchase Price by
change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
«C„
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roads/highways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $144,718 USD ("Purchase Price"). The Purchase Price does not include applicable sales and
local taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional
cost to Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in
this agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. Pending state approval.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $14,471.80 USD,
shall be due and payable upon receipt of invoice.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $57,887.20 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $36,179.50 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $28,943.60 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $7,235.90 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 1400 Adams St SE Hutchinson, MN
• Initial Layout
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
• Installed capacity (e.g., 100 MW AC).
o 38.4kW AC/50.88kW DC
• Interconnection voltage.
o 480
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation using prevailing wage
■ Electrical Installation using prevailing wage
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
■ Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array.
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver_ 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit E — Warranties
• Workmanship: 2 Year Ziegler Energy Solutions
• Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver.4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
SOLAR PV EQUIPMENT AND INSTALLATION AGREEMENT
THIS EQUIPMENT AND INSTALLATION AGREEMENT ("Agreement") is made and entered
into on this day December 23, 2025 by and between City of Hutchinson ("Buyer") and Ziegler
Energy Solutions, LLC, a Minnesota Limited Liability Company ("Seller"). Seller and Buyer may be
individually referred to herein as a "Party" or collectively as the "Parties" as the context dictates.
FOR AND IN CONSIDERATION of the mutual promises, covenants, agreements and payments
set forth herein, the sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:
1. Sale of Goods. Subject to the terms and conditions specified herein, Seller shall sell to Buyer, and
Buyer shall purchase from Seller the Equipment set forth in Exhibit "A" attached hereto (collectively, the
"Equipment"). (Seller's work to be performed under this Agreement is sometimes hereafter referred to as
the "Scope of Work"). Upon completion, there may be variations in the details of design, fabrication,
arrangement or installation of any particular piece of Equipment that does not affect the ability of the
Equipment to operate as originally intended. Seller reserves the right to make such changes in details of
design, fabrication, arrangement or Equipment as shall in Seller's judgment constitute an improvement or
needed change, all with notice to Buyer. If changes are made which affect the Buyer's layout or schedule,
Seller will notify Buyer for concurrence with the change. Any changes made at Buyer's request that relate
to sizing of Equipment or integration of Equipment in a manner different than that designed by Seller shall
require a change order that may result in the increase of the Purchase Price. Buyer will use commercially
reasonable efforts to provide all permits ("Permits") not otherwise obtained by the Seller, to the extent
necessary for the Seller to perform the Scope of Work and comply with all applicable laws, regulations and
ordinances.
2. Installation.
(a) The Equipment shall be installed at Buyer's address located at 439 Prospect St NE Hutchinson,
MN ("Property"). The installation services ("Installation Services") to be provided by Seller are set forth
in Exhibit `B". The Equipment shall be installed in a workmanlike manner and in compliance with
applicable laws, regulations and ordinances in effect as of the Effective Date and continuing throughout the
duration of the Installation Services until completed. At all times during the installation, Buyer shall remain
the operator of the Property as that term is used in applicable federal and state regulations. Buyer will use
best efforts to provide all Permits in a timely manner. To the extent that Buyer's internal safety requirements
differ from applicable laws and safety regulations and such difference requires Seller to incur additional
cost for personnel, labor or materials in excess than that required for compliance with applicable laws and
safety regulations, then the parties agree that the additional cost shall be added to the Purchase Price by
change order signed by both Parties.
(b) The Installation Services shall begin on or around December 30, 2025 and continue thereafter
until completed. Seller estimates that installation of the Equipment will take approximately 295 calendar
days. In the event Buyer fails to timely obtain applicable Permits, then the parties will mutually agree on a
new date to begin the Installation Services. An informational project schedule is attached hereto as Exhibit
«C�,
(c) Buyer shall make the Property available to Seller during the pendency of Installation Services,
and keep the Property site free of obstructions or unusable /impassable road travel or structure for equipment
and material delivery and storage including but not limited to roadsihighways, bridges, canal/drainage
crossings, irrigation lines, and utility lines, unless previously identified in Buyer furnished documents. All
project impacts and costs associated with the discovery, rerouting, repair, improvement, renovation or
enhancement of or due to previously unidentified site access obstructions will be the responsibility of the
Buyer. The parties acknowledge that the installation of the Equipment may require the Property to be shut
down for its intended use for a period of time on multiple occasions. Buyer acknowledges that due to
unforeseen circumstances, shutdowns and/or an extension of the previously mentioned time may be
required.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(d) Seller will issue a "Certificate of Completion of Installation" upon the completion of the
installation of the Equipment at the Property. The Certificate of Completion of Installation shall be
countersigned by Buyer. Following the issuance of the Certificate of Completion of Installation, the
Equipment may be tested by the Buyer.
3. Purchase Price. The purchase price which Buyer shall pay to Seller for the Equipment and Installation
Services is $144,718 USD ("Purchase Price"). The Purchase Price does not include applicable sales and
local taxes, and all such applicable taxes will be Buyer's responsibility and will be billed as an additional
cost to Buyer to the extent that Seller is obligated to collect and remit such taxes. All pricing provided in
this agreement is preliminary and subject to change following the completion of an on -site assessment. If
conditions identified during the site visit require modifications to the design, equipment, or installation
process, the final price will be adjusted accordingly. Any changes will be communicated and approved in
writing prior to proceeding. Pending state approval.
4. Terms of Payment.
(a) Safe Harbor Down Payment - Ten percent (10%) of the Purchase Price, $14,471.80 USD,
shall be due and payable upon receipt of invoice.
(b) Equipment Procurement - Forty percent (40%) of the Purchase Price, $57,887.20 USD,
shall be due and payable upon a date as communicated to Buyer by Seller in advance to enable Seller to
purchase the Equipment as set forth in Exhibit A.
(c) Construction Begins— Twenty-five percent (25%) of the Purchase Price, $36,179.50 USD, shall
be due and payable prior to Installation Services commencement as communicated to Buyer by Seller in
advance.
(d) Substantial Completion - Twenty percent (20%) of the Purchase Price, $28,943.60 USD, shall
be due and payable upon receiving a notification of substantial completion on a date as communicated to
Buyer by Seller.
(e) Final Payment/Commissioning - Five percent (5%) of the Purchase Price, $7,235.90 USD, shall
be due and payable upon receipt of the executed Certificate of Completion of Installation.
Invoices shall be payable within twenty (20) calendar days of issuance by Seller. If Buyer fails or refuses
to pay Seller all or any part of the Purchase Price within twenty (20) calendar days following the date upon
which any payment is due, interest shall accrue and be paid by Buyer to Seller in addition to the unpaid
Purchase Price at the rate of eighteen percent (18%) per annum on the unpaid and undisputed amount, or
the highest interest rate allowed by law, whichever rate is less. In any action or proceedings arising out of
this Agreement in which Seller seeks collection of any portion of the Purchase Price not paid when due,
Seller shall be entitled to recovery of its reasonable attorneys' fees and costs.
5. Limited Warranty.
(a) The Seller shall assign to Buyer, or have issued in Buyer's name, all applicable pass -through
warranties from manufacturers, suppliers and installers ("Pass -through Warranties"). Except for the Pass -
Through Warranties, no other warranties are provided.
(b) Warranty Exclusions and Disclaimers. The following are not covered:
(i) Damage caused by use of the Equipment for purposes other than those for which it was
designed, and/or in violation of Seller's recommended operating procedures. Operating the Equipment at a
rate above the capacity at which it was designed will have an adverse effect on the Equipment and system
including mechanical components and emission performance. The Equipment is to be operated within the
guidelines of the operating procedures defined by Seller or the Equipment manufacturer provided to Buyer
by Seller. All operations outside these guidelines will be in violation of Seller's limited warranty and will
void such limited warranties.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
(ii) Damage caused by disasters such as fire, flood, tornado, wind, hail, and lightning or
other acts of God.
(iii) Damage or failure caused by improper maintenance, unauthorized attachments,
modifications.
(iv) Use in a manner not in accordance with any operation manual or recommended
operating procedure supplied by Seller or manufacturer (as such manual may be amended or supplemented
from time to time, with notice to Buyer).
(v) Any other abuse or misuse by Buyer or any other third party.
EXCEPT AS SPECIFICALLY STATED IN THIS AGREEMENT, SELLER DISCLAIMS ALL
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
6. Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO
ANY THIRD PARTY FOR ANY LOST PROFITS, LOST SAVINGS, PUNITIVE, EXEMPLARY OR
ENCHANCED DAMAGES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL
DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. SELLER SHALL NOT BE LIABLE FOR ANY CLAIM BY THE BUYER BASED UPON
ANY CLAIM BY ANY OTHER PARTY AGAINST THE BUYER. IN NO EVENT SHALL SELLER'S
TOTAL LIABILITY HEREUNDER EXCEED $2,000,000.
7. Insurance. Buyer shall procure at its own expense and maintain in full force and effect, while this
Agreement is in effect, comprehensive general liability insurance for bodily injury and property damage,
in an amount not less than one million dollars ($1,000,000) combined single limit to cover Buyer's
employees and equipment while on the Property.
8. Force Majeure. Except with respect to payment obligations, neither Party shall be responsible for any
failure to perform due to causes beyond a Party's reasonable control, including but not limited to labor
disputes, strikes, war or terrorism, civil unrest, acts of God, fire, floods, severe weather, explosion,
pandemics or public health emergencies including failure or delay related to Coronavirus/Covid-19,
executive orders, delays in transportation, interruption or failure of electricity or communications systems,
governmental actions, cyber-attacks, delays in manufacture, or supply shortages, including supplier or sub -
supplier or subcontractor delays caused by any of the above. Any delay beyond a Party's reasonable control
shall be excused and the period of performance extended as may be necessary to enable the Party to perform
after the cause of delay has been removed.
9. Indemnification. Subject to the limitations set forth in Section 6, each party agrees to indemnify and
save harmless the other party from and against any and all losses, liabilities, expenses (including, without
limitation, reasonable fees and disbursements of counsel), claims, liens, damages or other obligations
whatsoever (collectively, "Claims") that may actually and reasonably be payable by virtue of or which may
actually and reasonably result from the inaccuracy of any of their respective representations or the breach
of any of their respective warranties, covenants or agreements made in this Agreement or in any certificate,
schedule or other instrument delivered pursuant to this Agreement; provided, however, that no claim for
indemnity may be made hereunder if the facts giving rise to such Claim were in writing and known to the
party seeking indemnification hereunder, such facts constituted a breach of the party seeking
indemnification and the party seeking indemnification elected in any event to consummate the transactions
contemplated by this Agreement.
10. Use of Subcontractors. Buyer expressly agrees that Seller may use any subcontractor that it chooses
without prior approval for Installation Services, the Equipment or any other work related to the Scope of
Work.
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
11. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of Minnesota. Any legal proceeding
relating to this Agreement shall be brought exclusively in the Hennepin County District Court, or in the
United States District Court for the District of Minnesota, and both Parties hereto consent to the jurisdiction
of said courts.
(b) This Agreement shall become a legal and binding contract upon signature of the same by both
Parties. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
permitted successors and assigns.
(c) This Agreement may not be assigned to another party by either Party, either in whole or in part,
without the prior written consent of the other Party, and such consent shall not be unreasonably withheld.
(d) In the event any provision herein shall be judicially interpreted or held to be void or otherwise
unenforceable as written, it shall be deemed to be revised and modified to the extent necessary to make it
legally enforceable, and the remaining terms of this Agreement shall not be affected thereby.
(e) No waiver by any Party of a breach of any provision of this Agreement shall be construed as a
waiver of any subsequent or different breach, and no forbearance by a Party to seek a remedy for
noncompliance or breach by another Party shall be construed as a waiver of any right or remedy with respect
to such noncompliance or breach.
(f) Each of the parties hereto represents to the other that (i) it has full power, authority and legal
right to enter into and perform this Agreement, (ii) the execution delivery and performance of this
Agreement has been duly authorized by all necessary action on each party's part, does not require any
approvals or consents except such approvals and consents as have heretofore been duly obtained or which
are specifically enumerated herein to which this Agreement is subject, and (iii) this Agreement does not
contravene any law binding on either of the parties or contravene any agreement to which either of the
parties hereto is a party or by which it is bound, or any law, governmental rule, regulation or order. Upon
request, each of the parties will provide the other party with documentary evidence of its authority to enter
into this Agreement.
(g) All notices to be given in connection with this Agreement shall be in writing and delivered
personally, sent by e-mail, by a nationally recognized overnight courier service or by registered or certified
mail, return receipt requested, postage prepaid.
(h) This Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall constitute one Agreement. Delivery of an executed copy of this Agreement
by e-mail shall be deemed delivery of the executed original.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year
first above written.
BUYER:
City of Hutchinson
By:
Its:
SELLER:
Ziegler Energy Solutions, LLC
By:
Its:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit A — Site Address and Initial Layout
• Site Address
o 439 Prospect St NE Hutchinson, MN
• Initial Layout
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 5
Installed capacity (e.g., 100 MW AC).
o 38.4kW AC/50.88kW DC
• Interconnection voltage.
o 480
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit B — Project Scope
o General Obligations
■ Deliver a fully operational solar PV facility on a turnkey basis.
■ Comply with all applicable codes, standards, and regulations (NEC, IEEE, UL, NFPA, local
building codes).
■ Obtain all permits, licenses, interconnection applications and approvals required for
construction and commissioning.
o Procurement
■ PV Modules. Tier-1 modules meeting IEC/UL standards.
■ Inverters.
■ Balance of System (BOS)
■ Mounting structures, cabling, and connectors.
■ Data acquisition system and remote monitoring capability.
■ Warranties
o Construction
■ Site Preparation
■ Civil Work
■ Mechanical Installation using prevailing wage
■ Electrical Installation using prevailing wage
■ Grid Interconnection
■ Safety & Quality Control
o Commissioning & Testing
■ Pre -Commissioning Checks
• Insulation resistance, continuity, and torque checks.
■ Functional Testing
• Inverter start-up, monitoring integration, and protection relay testing.
■ Performance Testing
■ Grid Synchronization
• Coordination with utility for final energization.
o Documentation & Handover
■ As -Built Drawings
• Complete set of updated drawings and schematics.
■ Operation & Maintenance (O&M) Manuals
• Detailed procedures for preventive and corrective maintenance.
o Training
■ On -site training for organization staff.
o Warranty Certificates
■ OEM and EPC warranties for equipment and workmanship.
■ Engineering Scope
o Electrical design services including:
■ PE Stamped electrical drawings.
o Structural services including:
■ In the event that the structural engineering report determines the existing roof structure
cannot safely support the proposed solar array, the City shall bear full responsibility for the
cost of the structural engineering report.
o Deliverables:
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 7
Permit set documents and specifications.
Responses to review comments. One resubmittal set, when required.
60/90 drawings and construction set
• Exclusions
o Fencing around solar array
o Land acquisition and site security (unless specified).
o Long-term O&M beyond initial commissioning period
o Fiberoptic communications cabling
o Tax leadership (it is customer's responsibility to engage with a certified tax professional to obtain
ITC)
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit C — Construction Schedule / Milestone Payments
o Preliminary Construction Milestones. Dependent on receipt of payments, weather, and procurement
lead times
o Final contract and agreements executed
o Long lead time material and engineering begins 1 week after contract execution
o Permitting begins: 2 weeks after contract execution
0 60% Construction Documents: Completed 5 weeks after contract execution
o Equipment Procurement: Begins 6 weeks after contract execution
0 90% Construction Documents design plans complete: 12 weeks after contract and agreement
executed
o Final Construction Build Documents Complete: 18 weeks after contract
o Construction Begins 18 weeks after contract signing:
■ Site prep, civil, and grading (3 weeks)
■ Mechanical Construction (4 weeks)
■ Electrical Construction (7 weeks)
o Inspection and Commissioning: (2 weeks)
o Electrical Generation Begins (Permission to operate):
Milestone Payments:
o Safe Harbor Down Payment - Ten percent (10%)
o Equipment Procurement - Forty percent (40%)
o Construction Begins — Twenty-five percent (25%)
o Substantial Completion - Twenty percent (20%)
o Final Payment/Commissioning - Five percent (5%)
ver. 4.6.2021 ZES -EQUIPMENT AND INSTALLATION AGREEMENT
Exhibit E — Warranties
• Workmanship: 2 Year Ziegler Energy Solutions
• Factory (Major equipment)
o Solar Module: 15 Year Workmanship and 25 Year Linear Performance
Guarantee
o Inverters: 10 Year Product Warranty
o Racking: 20 Year Product Warranty
ver. 4.6.2021 ZES —EQUIPMENT AND INSTALLATION AGREEMENT 10
m.,W.4"M CEORR CREEK
Commercial Solar Agreement
City of Hutchinson
Fire Station
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
fable of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
Whereas owner is approving this contract subject to getting MN Solar on Public
Buildings state grant approval and final site inspection. Both will occur prior to 1/l/2026.
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 205 3rd
Ave SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts with
Customer to provide labor and materials to improve the Property, as outlined in Section 2
of this Agreement (the "Work"). Customer agrees to all terms contained this Agreement,
and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 51 kilowatt (DC) solar array:
• (88) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
• (2) CPS SCA25KTL-DO/US-208 Inverter
• Prevailing wage labor and reporting included
• Roof Racking
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $142,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event Due Date Amount
Safe Harbor De iosit Upon execution $14,200.00
t E i ,ft c RLF1,1 1ANFRO)'
Initial Payment
(Interconnection Submittal)
Upon Notice of Submittal
40% of remainder
Mobilization
Up on notice of Mobilization
40% of remainder
Upon receipt of Inspection
Final Electrical Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
i k I! %it � I?! E h ENERGY
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Parry, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
t LIJAR I NERG1
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
8. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
[ f I roe CR> UK 1A-1=RG1
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
ID%P(REEK IPEEk�.1
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104'' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob( cedarcreekenergy.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.:[(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(# i i W r REEK EiNJ N? , Y
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
CEDAR( I'l I K I \I kc,Y 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Naive, Title]
Date
t 1:DAR CR�I:K I_NI RGN
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
CEDAR( P 1 1 F•: 1 \1 R1. i1 12
W
gll
Commercial Solar Agreement
City of Hutchinson
HATS Office
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................6
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................8
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at I I I
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 1400
Adams St SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts
with Customer to provide labor and materials to improve the Property, as outlined in
Section 2 of this Agreement (the "Work"). Customer agrees to all terms contained this
Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
• (1) CPS SCA50KTL-D0/US-480 Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
Initial Payment
Interconnection Submittal)
Upon Notice of Submittal
40% of remainder
1!! 1.: ( , : I i. I NERD ,
Mobilization Upon notice of Mobilization 40% of remainder
Upon receipt of Inspection
Final Electrical Ins -)ection approval 20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
. : i _. LNI ,.. .
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Maj cure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
8. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
CREE t -IRC,
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
1 i ).\i, s Id I K ENERGY
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 100 Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob &cedarcreekenergy.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.:[(xxx) xxx-xxxx]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
( EDAR , R1:1.. L 1-R6N,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME..]
[Name, Title] Date
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
12
WPM CEURR CREEK
Commercial Solar Agreement
City of Hutchinson
Liquor Store
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................9
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at I I I
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 245
Washington Ave E, Hutchinson, MN 55350 (the "Property"). The Company hereby
contracts with Customer to provide labor and materials to improve the Property, as
outlined in Section 2 of this Agreement (the "Work"). Customer agrees to all terms
contained this Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
• (1) CPS SCA50KTL-DO/US-480 Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
( . ' . . .. I . ..%
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Due Date
Amount
Safe Harbor De osit
Upon execution
$14,500.00
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
U on notice of Mobilization
40% of remainder
Final Electrical Inspection
Upon receipt of Inspection
approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
CEDAR E P I K I'',;I I;E ,
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Parry is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
( i i c,;< CREL i. I NERGN
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
S. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
c I W.P C'REEK + '•:I Pirl
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
C:FDAR + I: i 1 K ENFRGI
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104a` Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob@cedarcreekenergy.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
I I I Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.:[(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
CEDAR t €' i L;K
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
4 1 I -.!' ; i' I I I. ENERM 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
M UREt.h 1.N1~ RG % 11
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
12
11rM CEORR CREEK
ev"911
Commercial Solar Agreement
City of Hutchinson
Ice Arena
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
7
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................8
13.
Entire Agreement..........................................................................9
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................10
18.
Mechanics' Lien Notice...............................................................
10
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at I I I
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 950
Harrington St SW, Hutchinson, MN 55350 (the "Property"). The Company hereby
contracts with Customer to provide labor and materials to improve the Property, as
outlined in Section 2 of this Agreement (the "Work"). Customer agrees to all terms
contained this Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (120) Jinko EAGLE 78TR G4b JKM455-475M or Tier 1 Equivalent +/- 15W
• (1) CPS SCA50KTL-DO/US-480 Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
Event
Safe Harbor Deposit
Due Date
Amount
Upon execution
$14,500.00
Initial Payment
(Interconnection Submittal)
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Final Electrical Inspection
Upon receipt of Inspection
I approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
8. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
( I O.',P t }r i 1 K ENERGY
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
( 1--'OAR I i, i i ; RG',
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
CEDAR . V I ! J, ENERUTY
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
I I i • t, , , ( e. I JQ'RC; ,
CEDAR CREEK
efLergy
If to Company:
Cedar Creek Energy
3155 104th Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: r�rycedarcreekenMy.com
18. Capacity to Sign
If to Customer:
[Name]
111 Hassan St SE
Hutchinson, MN 55350
Attn. [Name]
Tel.: [(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
f00596762 }
[Author] 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
CEDAR CRI -Ik 1---N7 ROT
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
c 111 %A1 CREEK I ',d W1 � 12
MMI
M CEORR CREEK
&te,4109,I/
Commercial Solar Agreement
City of Hutchinson
Police Station
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................9
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 214 1 st
Ave NE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts with
Customer to provide labor and materials to improve the Property, as outlined in Section 2
of this Agreement (the "Work"). Customer agrees to all terms contained this Agreement,
and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (96) Jinko JKM58ON-72HL-BDV or Tier 1 Equivalent +/- 15W
• (2) CPS SCA25KTL-D0/US-208 Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
( REEK t. V
Event
Due Date
Amount
Safe Harbor Deposit
U on execution
$14,500.00
Initial Payment
Interconnection Submittal
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Final Electrical Inspection
Upon receipt of Inspection
a roval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
C i. RH k I T\
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
S. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
i NJ
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or, substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104th Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: robacedarcreekenergy.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Naive]
Tel.:[(XXX) .?CXX.-X:XXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
CLIJAR CREEK 1, '1 i•:•
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
[! i i' !: s R i i K ENERCJI' 10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
(I (R( ! k 1 NERDY
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
12
IW4"M EEORR CREEK
&tergv
Commercial Solar Agreement
City of Hutchinson
City Center
as "Customer"
Dated as of December 19, 2025
CEDAR CREEK ENERGY
Table of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty ............. :.......................................................... 5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
[ I P CREEK 11:I k [
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350. Company and Customer are sometimes referred
to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fo the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at I I I
Hassan St SE, Hutchinson, MN 55350 (the "Property"). The Company hereby contracts
with Customer to provide labor and materials to improve the Property, as outlined in
Section 2 of this Agreement (the "Work"). Customer agrees to all terms contained this
Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
• (2) CPS SCA25KTL-DO/US-208 Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
CRI-:
Event
Due Date
Amount
Safe Harbor De )osit
Upon execution
$14,500.00
Initial Payment
( Interconnection Submittal)
Upon Notice of Submittal
40% of remainder
Mobilization
Upon notice of Mobilization
40% of remainder
Final Electrical Inspection
Upon receipt of Inspection
a roval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
CEDAR 1 ],'i 1 1% ENERGY
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
CEDAR c Et H k I :',i i
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
8. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104a' Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob(a--)cedarcreekenergy.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.:[(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
( FD NR - , K LIB RU
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
[Name, Title]
Date
( EDAR ('REEK I '\ I R � ,1
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
i 1 1) \r: CE,i i K FNFROY 12
C E 0 R R C R E I K
9l/
Commercial Solar Agreement
City of Hutchinson
HUC Office
as "Customer"
Dated as of December 23, 2025
CEDAR CREEK ENERGY
'able of Contents
1.
General Agreement......................................................................3
2.
Scope of Work............................................................................3
3.
Payment & Contract Price.............................................................3
4.
Proposed Project Schedule..............................................................4
5.
Change Orders...........................................................................5
6.
Limited Warranty........................................................................5
7.
Subcontractors............................................................................6
8.
Utility, Authority Access................................................................6
9.
Insurance..................................................................................
6
10.
Modification/Waiver....................................................................7
11.
Indemnification/Limitation of Liability.............................................7
12.
Binding Effect/Assignment.............................................................7
13.
Entire Agreement..........................................................................8
14.
Severability................................................................................9
15.
Applicable Law............................................................................9
16.
Notices.......................................................................................9
17.
Capacity to Sign.........................................................................9
18.
Mechanics' Lien Notice...............................................................
9
This Commercial Solar Agreement (this "Agreement") is entered into as of December
9, 2025 (the "Effective Date"), between Cedar Creek Energy Corporation ("Company"),
whose principal place of business is located at 3155 104th Ln NE, Blaine, MN 55449,
and City of Hutchinson ("Customer"), whose principal place of business is located at 111
Hassan St SE, Hutchinson, MN 55350, USA. Company and Customer are sometimes
referred to herein as a "Party" or collectively as the "Parties".
NOW, THEREFORE, in consideration fa the commitments, obligations,
representations and warranties contained herein, together with other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each Party, it is
HEREBY AGREED as follows:
1. General Agreement
Customer hereby certifies that they are the owner(s) of the real property at 225
Michigan St SE Boiler Rm, Hutchinson, MN 55350 (the "Property"). The Company
hereby contracts with Customer to provide labor and materials to improve the Property,
as outlined in Section 2 of this Agreement (the "Work"). Customer agrees to all terms
contained this Agreement, and as detailed below.
2. Scope of Work
The Company shall provide all labor and materials to install and commission the solar array(s)
as detailed below The Company will provide the following labor and materials to install and
commission a 55.68 kilowatt (DC) solar array:
• (96) Jinko JKM580N-72-HL4-BDV or Tier 1 Equivalent +/- 15W
• (2) CPS SCA50KTL-DO/US-208V Inverter
• Roof Racking
• Prevailing wage labor and reporting included
• Wire, Conduit, Disconnects, and Miscellaneous Materials
• Building & Electrical Permits
• Utility Interconnection
• 5-year Workmanship Warranty'
3. Payment & Contract Price
Customer agrees to pay Company the sum of $145,000.00 ("Contract Price") in
accordance with Payment Schedule and Terms specified herein. Invoices not paid when
due shall be subject a 5% penalty after 30 days and shall accrue interest at the rate of the
eight percent (8%) per annum thereafter.
3.1. Payment Schedule & Terms
The Contract Price shall be paid to the Company according to the following schedule
and terms (the "Payment Schedule and Terms"):
( 1 1)%11. Rt.t=K FM kL '
Event
Due Date
Amount
Safe Harbor Deposit
Upon execution
$14,500.00
Initial Payment
Interconnection Submittal)
Upon Notice of Submittal
40% of remainder
Mobilization
U on notice of Mobilization
40% of remainder
Final Electrical Inspection
Upon receipt of Inspection
I approval
20% of remainder
Company shall be responsible for obtaining any and all required permits, permissions,
authorizations, or other approvals for proceeding with the Work.
If Customer fails to pay Company any payment(s) due under this Agreement, the
Company may suspend its Work following notice to Customer of such non-payment.
Upon any suspension of Work by Company for nonpayment by Customer, Customer
shall remain liable to Company for payment in full for all Work performed up to the time
that Work is suspended (whether or not such Work has been fully invoiced at such time),
and for all losses or damages sustained or suffered by Company, including any costs to
suspend or de -mobilize Work. Company shall restart Work only upon payment by
Customer for all Work completed to date, including any losses or damages, whether
direct or consequential, sustained or suffered by Company. If Work remains suspended
for a period of 14 days due to nonpayment by Customer, such non-paymeht shall
constitute a material breach of this Agreement, at whjich time Company may pursue all
available remedies and damages.
Customer represents and warrants that it is neither aware of any pending or threatened
litigation, action, or administrative proceeding against it with respect the Property, nor is
Customer aware of any basis or grounds for any such litigation, action, or proceeding
against them or the Property. No unpaid work, labor, or materials have been supplied to
the Property upon which anyone could base a mechanics' lien, equitable lien, or any other
type of lien against the Property.
3.2. Costs of Collection
If Company takes action to enforce or defend this Agreement or collect monies owed
arising out of or in connection with this Agreement, Company shall be entitled to recover
from Customer all of Company's reasonable attorney's fees, costs, and disbursements
incurred, including pre judgment interest.
4. Proposed Project Schedule
Company shall commence the Work within 180 days of Utility Interconnection
Approval, assuming no delays in permitting and/or interconnection exist, and all Work
shall be substantially complete within 90 days after commencement of Work.
"Substantial Completion" shall mean completion of all Work with the exception of any
final punch list items. Work shall not commence until interconnection approval by the
applicable utility has been received.
Customer agrees that Company is not responsible for delays in completion of the
Work due to the following events or occurrences ("Excusable Events"): (i) Force Majeure
Events, or (ii) any other causes beyond Company's control, including but not limited to
any delays caused by Customer, Customer's failure to make any payment to Company
when due, or interference by Customer's employees, contractors, agents, representatives,
or guests, or any other persons, parties, or causes not under Company's control. As used
herein, "Force Majeure Event" means an event or circumstance which wholly or partly
prevents one Party from performing its obligations, which event or circumstance is not
within the reasonable control of, or the result of the negligence of, the claiming Party, and
which, by the exercise of due diligence, the claiming Party is unable to overcome or
avoid or cause to be avoided. So long as the requirements of the preceding sentence are
met, a Force Majeure Event may include, but shall not be limited to, flood, drought,
earthquake, fire, lightning, extreme weather, epidemic, war, terrorism or riot, strikes,
changes in applicable codes or applicable law (including (A) any impositions of
conditions on the issuance or renewal of any permits after the Effective Date, and (B)
changes in import tax, duties, tariffs, or fees relating to the importation of any component
of the proposed project), or acts or omissions of any governmental authority.
In the event of any such delay, Company's time to achieve Substantial Completion
shall be extended by a period equal to the time lost by reason of such delay, plus any
reasonable time for re -mobilizing if work teams have been de -mobilized during the event.
However, if Work remains suspended for a period of 30 consecutive days due to a Force
Majeure event and the Company determines that such event is likely to persist, Company
may, at its option, treat this Agreement as having been cancelled, at which time payment
for all Work completed to date shall be invoiced by Company and payable by Customer.
Following such payment, neither Party shall have further obligation to the other
hereunder.
5. Change Orders
As used herein, "Change Order" shall mean a written document signed by both
Company and Customer that authorizes Company to perform a change to the Scope of
Work. The Change Order shall modify the Scope of Work and shall identify: (i) the
change to the Scope of Work, (ii) any additional compensation or reduction in
compensation to be paid to Company to perform such change, and (iii) any extensions of
time to the Project Schedule to perform such change.
Either Party may request a change in Scope of Work, provided that Company shall
not be obligated to proceed with such change until the value of such Change Order and its
effect on the time of performance or on warranties has been agreed upon, and a Change
Order has been signed by Customer and Company.
If an Excusable Event occurs that results in (a) an actual, substantiated delay in
Company's ability to perform the Work or timely achieve any component of the Project
Schedule, Company shall be entitled to a Change Order allowing an equitable extension
of such date to the extent of such actual, substantiated delay; or (b) actual, substantiated
increase in Company's costs for the Work, Company shall be entitled to a Change Order
allowing an increase in the Contract Price to the extent of such actual, substantiated
increase in cost.
In the event that tariffs or similar costs imnposed by government are imposed
following execution of the contract, Company shall issue a Change Order specifying the
increase in cost caused by such tariffs or costs.
i F:DAR CREFX ENF'RG`,
6. Limited Warranty
Company warrants that all Work shall be completed in a good and workmanlike
manner and in compliance with all codes and applicable building standards and practices.
Company shall promptly correct any material deficiency in the Work, provided that
Customer gives Company timely written notice thereof. Company's warranty shall
extend to and cover all Work furnished by subcontractors and suppliers of Company, and
shall be in addition to any other rights of Customer; provided, however, that Company
does not warrant manufacturer's defects occurring in the equipment covered by an
applicable manufacturer's warranty, nor work necessary to correct such defects such as
installation of replacement equipment.
To the extent that the Work constitutes a major structural change or addition to a
residential building, the statutory warranties of Minnesota Statutes Section 327A.02 shall
apply. Company shall have no liability for (i) any roof damage, roof leaking, or
deterioration not caused by the negligence of Company, (ii) breach of this Agreement by
Company, nor (iii) any consequential damages or loss to the building or its contents as a
result of such damages or breach detailed in clause "(i)" or "(ii)" or from any Force
Majeure event that affects the building or its contents.
Company's liability shall be limited to warranty claims occurring within five (5)
years of the completion of Company's Work. Company uses industry -standard
production modelling software, along with manufacturers specifications, to estimate
anticipated energy production. While this is the industry standard, many factors can affect
energy production, and the Company does not warrant or guarantee specific energy
production.
Manufacturer warranties for components incorporated into the Work shall be assigned
by Company to Customer as of Substantial Completion, unless the warranties are directly
in favor of Customer.
7. Subcontractors
Company may, at its discretion, engage subcontractors to perform the Work under
this Agreement, but Company shall remain responsible for proper completion of this
Agreement.
8. Utility, Authority Access
Customer agrees to comply with all applicable requirements of permitting authorities,
utilities, and other governmental bodies, including but not limited to: unrestricted utility /
first responder access to system disconnecting means so that utility/ first responder
personnel may disconnect the system for safety and emergency situations. Company shall
at its expense comply with all applicable federal, state and local laws, ordinances, rules,
and regulations in the performance of the Work by Company and its employees,
subcontractors, and suppliers, including, without limitation, all applicable requirements
relating to workplace and worker safety and the treatment of hazardous substances.
9. Insurance
Customer agrees, upon request of Company prior to commencement of the Work, to
provide Company with a copy of Customer's property insurance policy showing
coverage for property damage and liability claims.
Company agrees to maintain adequate insurance to comply with any requirements of
statute or law and in accordance with the standards set forth in Attachment A hereto.
The Company recommends that Customer obtain adequate insurance coverage for the
solar array starting at the time of Mobilization of work by the Company.
10. Modification / Waiver
This Agreement shall not be altered, amended, or modified by oral representation
made before or after the execution of this Agreement. Any modifications to this
Agreement must be in writing and duly executed by the Parties. Any waiver of any
requirement of this Agreement must be in writing and shall be limited to the circumstance
or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Agreement. For the avoidance of doubt, Customer
acknowledges that no Company personnel working on any jobsite has the authority to
alter any terms of this Agreement.
11. Indemnification / Limitation of Liability
11.1. Customer's Indemnity. Except as otherwise detailed in this Agreement or to
the extent caused by Company's or its agents' gross negligence or willful misconduct,
Customer shall indemnify, defend, and hold harmless Company and its respective
subsidiaries, affiliates, officers, directors, agents and employees from any claims,
damages, losses, or expenses, including reasonable attorneys' fees, arising from physical
damage to property or injury to persons, including death, to the extent resulting directly
from negligence, willful misconduct or breach of this Agreement by Customer or its
agents.
11.2. Company's Indemnity. Except to the extent caused by Customer's or its
agents' gross negligence or willful misconduct, Company shall indemnify, defend and
hold harmless Customer and its respective subsidiaries, affiliates, officers, directors,
agents and employees from all claims, damages, losses, and expenses, including
reasonable attorney's fees, arising out of or resulting from the performance of the Work
or any failure by Company to comply with the terms of this Agreement. The Company
makes no representation regarding the availability of state, local or federal invicentives
nor shall the Company indemnify Customer for any lost incentives.
11.3. Company's total liability (including, without limitation, damages,
indemnification, default, and termination) for all damages under this Contract shall be
limited to extent of applicable insurance coverage carried or required to be carried by the
Company.
11.4. Except as detailed in this Agreement, neither Party shall be liable to the other
Party for any consequential, incidental, indirect, special, exemplary or punitive damages,
loss of actual or anticipated profits, revenues or product; increased expense of borrowing
or financing; or increased cost of capital arising out of this Agreement, whether any such
claim arises out of breach of contract, guarantee or warranty, tort, product liability,
indemnity, contribution, strict liability, or any other legal theory.
12. No Tax Advice
12.1. General Information Only. The Company may, from time to time, provide
general information regarding potential federal, state, or local tax incentives,
credits, or other benefits that may be available in connection with the purchase,
t EDAR � V- I: I K I ti i i
ownership, or operation of the solar energy system (the "System"). Any such
information is provided solely as a general description of Company's
understanding of currently available programs and does not constitute legal,
accounting, or tax advice. The Company has used good faith efforts to represent
the available tax incentives for the proposed solar system. Customer's
specification tax situation may impact its ability to benefit from these incentives.
12.2. Customer's Responsibility. Customer acknowledges and agrees that:
12.2.1. Customer is solely responsible for consulting with its own tax advisors
regarding the availability and effect of any tax incentives, credits,
depreciation, or other benefits;
12.2.2. Customer will not rely on any information, statement, or representation
made by the Company or its agents as tax advice; and
12.2.3. The Company shall have no liability, obligation, or responsibility for the
Customer's failure to qualify for or obtain any tax benefit or incentive.
12.3. No Guarantee. The Company expressly disclaims any guarantee or assurance
that any specific tax incentive, credit, or benefit will be available to Customer or
that any particular tax treatment will apply.
13. Binding Effect / Assignment
13.1. This Agreement shall be binding on and shall inure to the benefit of the
Parties and their respective heirs, executors, administrators, agents, representatives,
successors, and assignees.
13.2. Except as detailed in this Section 12, this Agreement may only be assigned by
the Parties only upon the prior written consent of the other Party, which consent shall not
be unreasonably withheld, conditioned, or delayed.
13.2.1. Notwithstanding the forgoing, Customer may, without the need for
consent from Company, (i) transfer, pledge, or assign this Agreement to an affiliate or as
security for any financing and/or to an affiliated special purpose entity created for
financing or tax credit purposes with regards to the project contemplated by this
Agreement (a "Financing Assignment"); or (ii) transfer or assign this Agreement to any
person or entity succeeding to all or substantially all of the assets of Customer or a
successor entity in a merger or acquisition transaction; provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and provided further,
that in the case of a Financing Assignment, the Customer shall guarantee the performance
of the Agreement by the Assignee.
13.2.2. Notwithstanding the forgoing, Company may transfer, pledge, or
assign all of its rights, title, and interest in this Agreement and delegate all (but not less
than all) of its duties, assign any part of the Work to (i) any successor by merger to, or
any purchaser of all or substantially all of the assets of, Company or (ii) any affiliate of
Company; provided that (1) any such successor or affiliate shall possess the technical and
financial resources and experience necessary to perform Company's obligations under
this Agreement, and (2) any such successor or affiliate assumes all of Company's
obligations hereunder.
14. Entire Agreement
This Agreement, along with any amendments and Change Orders hereto, represents a
single, integrated, written contract expressing the entire understanding and agreement
between the Parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, relating thereto.
15. Severability
The provisions of this Agreement are severable. If any portion, provision, or part of
this Agreement is held, determined, or adjudicated by a court of competent jurisdiction to
be invalid, unenforceable or void for any reason whatsoever, each such portion, provision
or part shall be severed from the remaining portions, provisions or parts of this
Agreement and shall not affect the validity or enforceability of any remaining portions,
provisions or parts, which remaining portions, provisions or parts shall be enforced as
amended.
16. Applicable Law
This Agreement is and shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law principles thereof. Customer and Company each
consent to jurisdiction and venue in the state and federal courts of Hennepin County in
the State of Minnesota. No Party shall object to such venue as being an inconvenient
forum.
17. Notices
Any notices required to be sent or provided under this Agreement shall be mailed,
sent or delivered to the parties at the addresses given below. Notices shall be deemed as
delivered three business days after deposit in first class mail or upon delivery by any
nationally recognized courier service or if delivered by hand. Electronic mail shall be
used for convenience between Company and Customer only and shall in no case be
considered formal notice hereunder, regardless of whether receipt has been specifically
acknowlegded.
If to Company:
Cedar Creek Energy
3155 104`" Ln NE
Blaine, MN 55449
Attn: Rob Appelhof
Tel.: (763) 432-5261
Email: rob u)cedarcreekener v.com
18. Capacity to Sign
If to Customer:
City of Hutchinson
111 Hassan St SE
Hutchinson, MN 55350
Attn.: [Name]
Tel.:[(XXX) XXX-XXXX]
[Email Address]
The individuals whose signatures are affixed to this Agreement in a representative
capacity represent and warrant that they are authorized to execute the Agreement on
behalf of and to bind the entity on whose behalf the signature is affixed.
19. Mechanics Lien Notice
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the
owner for the improvement of real property and who has contracted or shall contract with
any subcontractors or material suppliers to provide labor, skill, or materials for the
improvement shall include in any written contract with the owner the following notice,
and shall provide the owner with a copy of the written contract:
t I E) P. CRII K LNERGI
"(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR
THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE
CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS
WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE,
OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A
LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY
NOTICE."
(signatures to follow)
10
IN WITNESS THEREOF, the Parties hereto have executed the document by their
authorized representatives on the date first above written.
CEDAR CREEK ENERGY CORPORATION
Rob Appelhof, President & CEO Date
ACKNOWLEDGED and AGREED by:
[COUNTERPARTY NAME]
Matt Jaunich
Date
t 1_DAR i f+1.I }. I N.I kt Pi
Attachment A
Company Minimum Insurance Coverage
Company shall carry the following minimum coverages, and prior to any Work, Company
shall provide Customer proof of such coverage:
a. Commercial general liability insurance, including, without limitation, coverage for
bodily injury, property damage, personal injury, contractual liability (applying to
this Agreement), and products -completed operations liability, having a combined
single limit of not less than $1,000,000 per occurrence. Such policy shall not
contain explosion, collapse and/or underground exclusions.
Each Occurrence
Damage to Rented Premises
Personal & Adv Injury
General Aggregate
Products — Comp/Op Agg
$ 1,000,000.00
$ 100,000.00
$ 1,000,000.00
$ 2,000,000.00
$ 2,000,000.00.
b. Comprehensive automobile liability insurance, including hired and non -owned
vehicles, with a combined single limit of not less than $ 1,000,000 per occurrence.
c. Worker's Compensation as required by law.
d. Employer's Liability with limits of $500,000.
e. Excess/Umbrella Liability, each occurrence, of $10,000,000.00, and aggregate of
$10,000,000.00.
f. Professional Liability Insurance of $5,000,000.
g. Installation Builder's Risk of $2,000,000.
h. Pollution coverage of $5,000,000.
(. € 1) 1R t k1 I .K ENERCIY 12
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve/Deny - Resolution 15966 - Resolution Accepting Quote and Awarding
Agenda Item:
Contracts for Roberts Park Lighting Project Underground Electrical Installation
Department: PRCE
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Lynn Neumann/JJ Verhey
Agenda Item Type:
Presenter: Lynn Neumann/JJ Verhey
Reviewed by Staff
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
City staff have been collaborating with the Sports Lighting Authority (SLA) and Starry Electric on the Roberts Park Lighting Project, which was previously approved by
the City Council. During the initial stages of the project, it was discovered that the underground wiring was over 40 years old and nearing the end of its useful life. The
installation of new underground wiring was not included in the original project bid. Afterthis was discovered, the city hired an external electrical contractor to test the
underground wiring's suitability forthe new lighting system being installed at the park. Upon review, deficiencies in the underground wiring were identified.
Knowing this, city staff, in conjunction with SLA, rebid the underground electrical circuits based on the specifications required for the new equipment. Quote requests
were sent out to electrical contractors for materials and installation to provide electrical circuits in conduit from outside the park building to 16 light -pole locations, as per
the specifications. The quote requests and specifications are attached.
Quotes for the electrical underground installation were opened on Thursday, December 11th, at 1:00 PM. For details, please see the attached quote tabulation form and
quotes received from contractors.
The Quote Summary is as follows:
Killmer Electric: $119,650.00
Design Electric: $121,077.00
Starry Electric: $134,650.00
E2 Electric: $160,000.00
The quotes are currently being reviewed and qualified by the Sports Lighting Authority (SLA). City staff believe that this approach is the best for ensuring the longevity of
both the lights and the underground wiring at the park.
Since Starry Electric did not receive the low bid, Killmer Electric and Starry Electric will work together on the installation of the new lighting system at Roberts Park.
Starry Electric will proceed with the installation of the new equipment, while Killmer Electric will handle the installation of the new underground wiring. The two
companies will collaborate to ensure that the project is successfully completed.
A couple of important points to note:
- The original contract approved for Starry Electric was $106,885 for the installation of the new equipment. Due to the changes in underground wiring, there will be
deductions of $23,200.00 from their original contract, making Starry Electric's new contract amount $83,685.00.
- With these deductions and the new quote for electrical underground wiring, the total cost for installation and electrical work will be $203,335.00.
-The cost for equipment was $467,900.00.
-The total project cost will now be $671,235.00. This total is still under the original estimate provided by the Sports Lighting Authority.
City staff are requesting the approval of a resolution to award the project to Killmer Electric. Lynn Neumann will be present at the council meeting to answer any
questions.
BOARD ACTION REQUESTED:
Approve Resolution 15966 - Resolution accepting the quote and authorizing the signing of contracts for
Roberts Park Lighting Project Underground Electrical Installation
Fiscal Impact: $ 119,650.00 Funding Source: Capital Projects Fund
FTE Impact: Budget Change: Yes
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
RESOLUTION NO. 15966
RESOLUTION ACCEPTING QUOTES AND AWARDING CONTRACTS ON THE
ROBERTS PARK COMPLEX LIGHTING PROJECT — UNDERGROUND
ELECTRICAL INSTALLATION
WHEREAS, pursuant to an advertisement for quotes for the furnishing of labor and material for
the improvements of the following:
Materials and installation of electrical circuits in conduit from outside of the park building to
(16) light -pole locations per specifications.
Quotes were received, opened, and tabulated according to law, and the following bids were
received, complying with the advertisement:
(Please see attached bid tabulation sheet)
WHEREAS, it appears the low quote was Killmer Electric, as shown on the attached quote
tabulation sheet, and they are the lowest and most responsible bidder; and
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA:
The mayor and city administrator are hereby authorized and directed to enter into
contracts with the Killmer Electric in the amount of their bids in accordance with the bid
tabulation sheet in the name of the City of Hutchinson for the work to be done in
accordance with the plans and specifications for this project as approved by the City
Council and on file in the office of the city administrator.
Adopted by the Hutchinson City Council on this 23rd day of December 2025.
Gary Forcier, Mayor
Matthew Jaunich, City Administrator
�aU
� 121 1 0-1-7, 00
t 11 or 01) .0 0
QUOTE FORM
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
The signed quote shall be In compliance with the specifications, drawings, and manufacturer's
information for the Roberts Park softball wagon wheel lighting upgrade installation. The quote Is for the
electrical underground circuits in conduit with connections at all pole location to operate the new
lighting through the Control Link cabinet location on exterior of building wall. By signing, all specification
requirements have been met. Quotes shall remain good for 45 days after opening regarding contracts.
Quote Amount; Installation of the Electrical Underground Circuits with connections at Light Poles as
specified $ 119,650.00
CONTRACTOR Killmer Electric Co,./ Inc. PHONE 763-425-2525
SIGNATURE �..-� -' DATE December 11, 2025
—z
CONTACT NAME Brian Palmer EMAIL ADDRESS bpalmer(Mkillmerelectric.com
1
QUOTE FORM
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
The signed quote shall be in compliance with the specifications, drawings, and manufacturer's
information for the Roberts Park softball wagon wheel lighting upgrade installation. The quote is for the
electrical underground circuits in conduit with connections at all pole location to operate the new
lighting through the Control Link cabinet location on exterior of building wall. By signing, all specification
requirements have been met. Quotes shall remain good for 45 days after opening regarding contracts.
Quote Amount: Installation of the Electrical Underground Circuits with Connections at Light Poles as
Specified $ 121, 0 7 7.00
CONTRACTOR DESIGN ELECTRIC INC
SIGNATURE ��'► y,�._ __���-�-s1_
PHONE 320-252-1658
DATE 12/11/2025
CONTACT NAME ORLYNN MUELLER EMAIL ADDRESS OMUELLER@DES IGNELECT . COM
QUOTE FORM
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
The signed quote shall be in compliance with the specifications, drawings, and manufacturer's
information for the Roberts Park softball wagon wheel lighting upgrade installation. The quote is for the
electrical underground circuits in conduit with connections at all pole location to operate the new
lighting through the Control Link cabinet location on exterior of building wall. By signing, all specification
requirements have been met. Quotes shall remain good for 45 days after opening regarding contracts.
Quote Amount: Installation of the Electrical Underground Circuits with Connections at Light Poles as
Specified $ I �M 1 &
CONTRACTOR .C) f74 r'r
SIGNATURE
CONTACT NAME K11 114i( -.92 V 1
PHONE 3 � 3 �% 30D 3
DATE
EMAIL ADDRESS; Sit, r/ uc lee hl<_
QUOTE FORM
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
The signed quote shall be in compliance with the specifications, drawings, and manufacturer's
information for the Roberts Park softball wagon wheel lighting upgrade installation. The quote is for the
electrical underground circuits in conduit with connections at all pole location to operate the new
lighting through the Control Link cabinet location on exterior of building wall. By signing, all specification
requirements have been met. Quotes shall remain good for 45 days after opening regarding contracts.
Quote Amount: Installation of the Electrical Underground Circuits with Connections at Light Poles as
Specified $ 160,000.00
CONTRACTOR E2 Electrical Services INC PHONE 320-234-8330
SIGNATURE 6A DATE 12/11/2025
CONTACT NAME Kyle Rewerts EMAIL ADDRESS kyle@e2electrical.com
Z Electrical Services Inc
15895 Hwy 7 E
Hutchinsun. MN 55350
320.234-8330
12/11/2025
Lynn Neumann
Hutchinson Parks and Recreation
900 Harrington St.
Hutchinson, MN 55305
PROJECT: Quotes for Robert Park Softball Lighting Electrical Underground Installation
Specific Scope Items:
1) Permits and Inspections have been included.
2) We have figured electrical per scope provided.
3) We have excluded patching of concrete/asphalt.
We will supply and install all materials, labor, and equipment for the total amount of $ 160,000.00.
Payment Terms
Terms and Conditions
1) All applicable taxes are included in our submission.
2) Electrical shall be installed to standards of the National Electric Code and is guaranteed free from short circuits for one year. No other warranties are expressed or
implied.
3) Electric Contractor shall make holes in the building to gain access for routing cables and conduits and shall not be held liable in any way for labor or costs incurred
for painting, texturing, repairing walls or ceilings.
4) Time and materials work shall be charged $110 an hour plus materials. Service calls shall be charged $110 for the fast half-hour, then $110 per hour. $110 is
minimum charge.
5) Change orders: Any alteration or deviation from the above specifications involving extra costs will be made only upon written agreement, and will become an
extra charge above the contract price to be paid immediately.
6) Delay: Electric Contractor will be excused for any delay beyond our control. These delays may include, but are not limited to acts of God, labor disputes,
inclement weather, acts of owner or public authority, product shortages, or other unforeseen contingencies.
7) Right to stop work: If any payment under this contract is not made when due, Electric Contractor may stop suspend work until all payments have been made.
8) Any failure to make payments to Electric Contractor is subject to a claim against the property in accordance with applicable lien laws.
9) It is agreed that payments to Electric Contractor shall not be withheld due to any delay or failed payments to the part this proposal is submitted to.
10) Malicious mischief and vandalism on the job is the responsibility of the part this proposal is submitted to. Electric Contractor shall not be responsible for any
damage resulting therefrom. Party submitted to shall carry needed insurance.
11) Overdue accounts will be charged a late charge at the rate of 1.5% per month plus a monthly administrative fee of $20.00 or the maximum rate permitted by
law.
12) In the event any party to this contract commences any action, legal or otherwise, to collect the contract price, the prevailing party shall be entitled to recover
attorneys fees and all other costs incurred in connection with the action.
13) This proposal shall be effective for thirty days from the date set forth above, if this proposal is not accepted within this time it shall be expired. This proposal
may be withdrawn any time before acceptance.
14) The language of all parts of this contract shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the
parties. No provision shall be deemed dependant upon any others.
15) If any provision of this contract is held by an arbitrator or court to be unenforceable, invalid or illegal, said provision shall be deemed to be deleted and shall not
affect the validity of the remaining provisions of this contract.
16) Party submitted to shall give written notice of a back charge to Electric Contractor within ten days of the act giving rise to a back charge. If no such notice is
given within the ten day period the back charge shall not be allowed.
17) Unless included in this proposal, all bonding and/or special insurance requirements are supplied at additional cost.
Accepted by
Client
QUOTE REQUEST
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
Quotes for the softball electrical underground installation for the new lighting will be received by the
City of Hutchinson until 1:00 pm Thursday, December 11th at the Hutchinson Recreation Center or can
be sent by email.
Materials and installation quotes will be received from electrical contractors to provide electrical circuits
in conduit from outside of park building to (16) light -pole locations per specifications
Quotes shall be submitted by email or in person and must state on the outside cover, "Quotes for
Robert Park Softball Lighting Electrical Underground Installation."
Send Quotes to the attention of:
Lynn Neumann
Hutchinson Parks and Recreation
900 Harrington St.
Hutchinson, MN 55305
LNeumann@hutchinsommn.gov
Any questions regarding specifications shall be addressed to the sports -lighting consultant...
Craig Gallop
Sports Lighting Authority
cgaIlop@SportsLightingAuthoritV.com
0 763-525-0070
C 612-226-3288
SPECIFICATIONS
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
A. Installation Timing:
1. The contractor can start the project upon owner's approval of the electrical design/build.
2. Completion date of March 25th, 2026 (unless there is significant ground frost).
B. Site Related Information:
1. Restoration for damage caused by trucks and equipment shall be the responsibility of the
installing contractor (unless otherwise approved by owner).
2. Locates for underground public utilities shall be the responsibility of the installing
contractor.
3. Private locates shall be the responsibility of the owner and accepts responsibility for damage
to such facilities that are not properly located.
4. Owner is responsible for marking sprinkler heads and areas to avoid (contractor to use
caution in these areas to avoid damage.
5. Contractor is responsible for viewing the site prior to bidding and shall contact Sports
Lighting Authority with questions or concerns a minimum of 3 days prior to quote date.
C. Electrical System Requirements:
1. The electrical underground system shall be design/build in accord with these specifications.
2. Existing service voltage for field lighting is 480V single phase.
3. Maximum voltage drop shall not exceed 3% throughout system.
4. The electrical underground system design/build shall be based on the attached lighting
layout and electrical load informational sheet showing the KW load for each pole.
5. The electrical underground system shall be installed and completed no later than March
25th, 2026 (unless there is significant ground frost that would hinder installation).
6. Contracts and purchase agreements shall be in compliance with the specification
requirements.
D. Electrical System Design:
1. Metering base and enclosure, existing main service panel and 208/120 V panel board
provided by others under a separate contract
2. New circuits to each pole shall be designed and sized for the 30 amp breakers as shown in
Musco's Control Summary (breakers provided and installed by other under separate
contract).
3. The Musco Control Link Cabinet will be provided and mounted by other under a separate
contract on building exterior located at the NW outside wall near the existing electrical
equipment located inside the building.
4. Provide and mount sufficient wiring and conduit going up the NE outside building wall at
future location of the Musco Control Link Cabinet which will be installed by other at later
date.
5. Provide new conduit and wire to field lighting, walkway lighting, pole mounted receptacle,
(4) scoreboards, security camera, and WIFI system.
6. Coordinate A2 Pole WIFI and security camera systems wiring requirements with owner.
7. Electrical contractor shall review and comply with the additional information provided by
the lighting manufacturer.
8. Contractor shall provide in -ground junction boxes only at locations approved by owner and
sports lighting consultants.
9. The service shall meet state and national electrical code (NEC) requirements and be
designed to meet the electrical loads of the new lighting system.
10. Provide XHHW-2 insulated copper conductors and Install from the Musco Control -Link
location on NW corner of the exterior of the building to the safety disconnects on each pole
located in the remote electrical component encloser at 10' on each light pole.
11. All new underground wiring shall be in SCH 40 PVC conduit meeting NEC code requirements.
12. The electrical contractor shall bring the conductors up the inside of each pole to the
disconnect located in the remote electrical component enclosure at a 10' height. All
connections in the remote electrical component enclosure will be by other under separate
contract.
13. Grounding conductors and grounding methods shall meet NEC and State requirements and
be located at the service entrance panel board, contactor enclosure, and remote electrical
component enclosure located on each pole.
14. Underground wiring shall be copper and shall be buried a minimum 24" below grade in
accordance with NEC and State Code.
15. Wire and conduit can be trenched except as noted in areas where borings will be required.
16. Boring shall be used when new wiring crosses: pathways, underground utilities, marked
irrigation lines, or goes beneath the building (if needed).
17. "As -built" drawings shall be provided by the electrical contractor to the owner upon
completion of the project.
18. Contractor and any subcontractors shall provide insurance including Workman's
Compensation, Contractor's Public Liability and Property Damage, and Automobile Public
and Property Damage in accord with the owner's requirements.
19. The electrical contractor shall upon completion of the project protect the owner against
defective materials or faulty workmanship for a period of 2 years on wiring, materials, and
labor for all electrical provided under this contract.
E. Quote Requirements:
1. Quotes shall remain good for 45 days after opening for contractual purposes.
2. Any permits shall be the responsibility of the installing contractor.
3. Owner reserves the right to reject any or all proposals, waive any bidding formalities, and to
award the lowest bidder that owner finds to their best advantage.
4. No voluntary alternates will be accepted.
5. Contractor is responsible for contacting the owner's representative Sports Lighting Authority
prior to the quote date with any questions or concerns regarding specifications, drawings, or
installation requirements.
Craig Gallop
Sports Lighting Authority
cgallop@sportslightingauthority.com
c 612-226-3288
o 763-525-070
F. Undisclosed Installation Problem:
1. It is the responsibility of the installing contractor to notify the owner's representative Sports
Lighting Authority if any undisclosed issues arise.
2. Sports Lighting Authority will work on behalf of the owner to rectify the problem in a timely
manner.
New Pole Locations:
'A' Poles 35' down foul lines and 42' away from foul lines. m Control Link Cabinet Location
'6' Pales 160' down foul lines and 42' away from foul lines.
'C' Poles 90' in from foul poles and 4' behind outfield fence.
QUOTEFORM
LIGHTING SYSTEM ELECTRICAL UNDERGROUND INSTALLATION
ROBERTS PARK WAGON WHEEL SOFTBALL
HUTCHINSON, MN
The signed quote shall be in compliance with the specifications, drawings, and manufacturer's
information for the Roberts Park softball wagon wheel lighting upgrade installation. The quote is for the
electrical underground circuits in conduit with connections at all pole location to operate the new
lighting through the Control Link cabinet location on exterior of building wall. By signing, all specification
requirements have been met. Quotes shall remain good for 45 days after opening regarding contracts.
Quote Amount: Installation of the Electrical Underground Circuits with Connections at Light Poles as
Specified $
CONTRACTOR
PHONE
SIGNATURE DATE
CONTACT NAME EMAIL ADDRESS
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Agenda Item: Resolution Ratifying Action Regarding Opt -Out of PFAS Class Action Suits
Department: Legal
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Marc Sebora
Agenda Item Type:
Presenter: Marc Sebora
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
In September of 2023, the City received notice of nation-wide class action lawsuits against Dupont and 3M to resolve
claims for PFAS contamination in municipal water supplies across the country. As part of the lawsuits, cities were
given the option to participate in the class action settlement of the lawsuits and receive settlements of various
amounts depending on the degree to which PFAS chemicals were found in their respective water supplies or not.
Cities also could participate in the settlements even if no PFAS chemicals were found in their water but would receive
a nominal settlement and be barred forever from making a claim in the future if PFAS chemicals were detected.
However, cities were also given the option to "opt out" of the class action lawsuits if their water supplies did not
contain any PFAS chemicals and, if they "opted out" of these settlements, they would be preserving their rights to
bring future claims against 3M and Dupont if in the future PFAS chemicals were detected in their municipal water
supplies.
The City of Hutchinson undergoes regular testing of its water supply and to date no detectable amount of PFAS
chemicals have been found. So, in consideration of this and in discussion with my office and the public works
department, in December 2023 the city administrator sent notices to the class action lawsuit administrators for the
cases involving 3M and Dupont that the City of Hutchinson would be "opting out" of those lawsuits in order to preserve
its right to bring claims in the future if PFAS chemicals were ever detected in our municipal water supply. Under state
law and the city charter, the City administrator has the authority to take actions of this kind on behalf of the City.
The city administrator and I were recently discussing this matter and we thought it would be prudent for us to create a
formal record of the City's "opt out" of these lawsuits so that if in the future PFAS chemicals are detected in
Hutchinson's water supply it was documented that the City Council was aware of the city administrator's action and
approved of it. Therefore, I am asking that the City Council approve this Resolution ratifying the city administrator's
actions regarding "opting out" of these lawsuits.
BOARD ACTION REQUESTED:
Approve Resolution No. 15970 - Resolution Ratifying Action Regarding Opt -Out of PFAS Class Action Suits
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source:
RESOLUTION NO. 15970
City of Hutchinson, Minnesota
A Resolution Ratifying Action Taken by the City Administrator Pertaining to
Per- And Poly-Fluoroalkyl (PFAS) Chemicals
WHEREAS, in September 2023 the City of Hutchinson was informed of its right to
participate in class action lawsuits against Dupont and 3M relating to possible PFAS
contamination of municipal water supplies, specifically: In Re: Aqueous Film -Forming Foams
Products Liability Litigation, MDL No. 2:18-mn-2873 (D.S.C.) City of Camden, et al. a 3M
Company, Case No. 2:23-cv-03147-RMG and City of Camden, et al. a E.I. DuPont De Nemours
and Company (n/k/a EIDP, Inc.), et al., 2:23-cv-03230-RMG; (the lawsuits); and,
WHEREAS, the water supply for the City of Hutchinson does not and never has
contained any detectable amount of PFAS contamination; and,
WHEREAS, the lawsuits allowed the City to either participate in the lawsuits, receive a
nominal payment and waive all future claims against 3M and DuPont, or, to opt out of
participation in the lawsuits in order to preserve future claims against 3M and Dupont should
PFAS chemicals be detected in the city's water supply in the future; and,
WHEREAS, in December of 2023 the City Administrator, Matthew Jaunich, after
consultation with the City Attorney, did notify the law firms representing 3M and DuPont that
the City of Hutchinson was opting out of those lawsuits in order to preserve the right to bring
claims in the future should PFAS chemicals ever be detected in the city's water system by
sending the notices attached hereto as Exhibits A and B to those law firms, and,
WHEREAS, the City Administrator is responsible for managing the administrative affairs
of the City of Hutchinson (City); and,
WHEREAS, the City Administrator is authorized under Minnesota Statutes Chapter 412
and the Hutchinson City Charter to enter into and sign contracts and other documents on behalf
of the City of Hutchinson; and,
WHEREAS, the City Council has reviewed the circumstances and documentation
surrounding the Administrator's action and found it to be in the best interests of the Cty; and,
WHEREAS, Minnesota law permits the City Council to ratify actions taken on behalf of
the City by its officers or administrators when such actions are taken to protect the public interest
and when ratification serves the best interests of the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF HUTCHINSON, AS FOLLOWS:
1. The City Council finds that the City Administrator, Matthew Jaunich, in submitting the
notices in Exhibits A and B, acted within the scope of his administrative authority and
that such actions are consistent with the City's Charter, ordinances, and Minnesota law.
2. The action taken by the City Administrator in December of 2023 concerning PFAS
litigation against DuPont and 3M as shown in Exhibits A and B hereto is hereby in all
respects ratified, approved, and confirmed by the City Council and adopted by the City
Council as if they were the City Council's own action.
3. The City Council intends that this Resolution shall have retroactive effect to the date on
which the opt -out notices were submitted and that the City Administrator's actions are
deemed to be the actions of the City Council for all legal purposes.
4. The proper city officials are hereby authorized and directed to take all steps necessary to
formalize this action and ensure all records reflect the City Council's approval.
Adopted by the City Council of the City of Hutchinson, Minnesota this 23d day of December,
2025.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator
1,
v
A CITY ON PURPOSE.
December 1, 2023
In re: Aqueous Film -Forming Foams Products Liability Litigation
c/o DuPont Notice Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Via Overnight Delivery
RE: Request for Exclusion from Settlement Agreement in In re: Aqueous Film -Forming
Foams Products Liability Litigation, MDL No. 2-18-mn-2873-RMG. This request relates
to City of Camden, et al. a E.I. DuPont De Nemours and Company (n/k/a EIDP, Inc.), et
al., 2:23-cv-03230-RMG
Dear DuPont Notice Administrator:
The City of Hutchinson, Minnesota ("System") hereby formally requests to be excluded from the
Settlement Agreement between Public Water Systems and the E.I. DuPont De Nemours and
Company (n/k/a EIDP, Inc.), et al., in the above -referenced matter. The attached affidavit
establishes System's standing, including the name, address, telephone and facsimile number, and
email address if available of the System as well as my name, address, telephone and facsimile
number, and email address if available. It also establishes that I have the authority to make this
request of behalf of System.
By this request, System understands that it will be waiving the ability to participate in the
settlement of the above -referenced case, and all benefits and obligations contained therein. If
System desires to receive payment from E.I. DuPont De Nemours and Company (n/k/a EIDP, Inc.),
et al., for any damages related to PFAS contamination, it must do so via separate litigation.
If you have any questions about this request for exclusion, please contact the System's attorney:
Marc A. Sebora, 320-234-5662, mseboraAhutchinsommn.gov .
Sincerely,
Matthew Ja 'c
Attachment: Affidavit in support of request for exclusion
&ti,bh- PT
cc (via First Class Mail as required by FRCP 5):
Jeffrey M. Wintner
Graham W. Meli
Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, NY 10019
Kevin T. Van Wart
Kirkland & Ellis LLP
300 North LaSalle
Chicago, IL 60654
Michael T. Reynolds
Cravath, Swaine & Moore LLP
825 Eighth Avenue
New York, NY 10019
Scott Summy
Baron & Budd, P.C.
3102 Oak Lawn Ave., Ste. 1100
Dallas, Texas 75219
Michael A. London
Douglas & London
59 Maiden Lane, 6th Floor
New York, NY 10038
Paul J. Napoli
Napoli Shkolnik
1302 Ponce de Leon
San Juan, Puerto Rico 00907
Elizabeth A. Fegan
Fegan Scott LLC
150 S. Wacker Drive, 24th Floor
Chicago, IL 60606
Joseph F. Rice
Motley Rice
28 Bridgeside Blvd.
Mount Pleasant, SC 29464
Affidavit in support of request for exclusion from settlement agreement in
In re: Aqueous Film -Forming Foams Products Liability Litigation, MDL No. 2-18-
mn-2873-RMG;
City of Camden, et al. v E.I. DuPont De Nemours and Company (nikla EIDP, Inc.), et
al.,
2:23-cv-03230-RMG.
1. I am the City Administrator of the City of Hutchinson, Minnesota ("System"). In this
role, I have authority over the supervision, management and control of the System,
including provision of drinking water to individuals and businesses in Hutchinson,
Minnesota in the United States of America. This includes authority to oversee operations
at the System.
2. The proposed Settlement Class in the above -referenced matter is defined as, "(a) All
Public Water Systems in the United States of America that draw or otherwise collect
from any Water Source that, on or before the Settlement Date, was tested or otherwise
analyzed for PFAS and found to contain any PFAS at any level; and (b) All Public Water
Systems in the United States of America that, as of the Settlement Date, are (i) subject to
the monitoring rules set forth in UCMR 5 (i.e., "large" systems serving more than
10,000 people and "small" systems serving between 3,300 and 10,000 people), or (ii)
required under applicable federal or state law to test or otherwise analyze any of their
Water Sources or the water they provide for PFAS before the UCMR 5." (Settlement
Agreement at paragraph 5.1.1.)
3. Check one:
The System has one or more PFAS-impacted water sources, as the [name of
impacted water source] provides it with water. As such, the System is a member of the
above -referenced proposed Settlement Class under the Settlement Class definition,
subsection (a).
OR
The System is subject to the monitoring rules set forth in UCMR 5. As such,
System is a member of the proposed Settlement Class under the Settlement Class
definition, subsection (b)(i).
X The System serves 14,599 people with drinking water. As such, it is a member of the
above -referenced proposed Settlement Class under the Settlement Class definition,
subsection (b)(ii).
4. Check one:
The System is listed on Exhibit I of the Settlement Agreement as a municipally -
owned public water system that would be excluded from the Settlement Agreement if it
could not sue or be sued in its own name. (Settlement Agreement paragraph 5,1.2,
subsection (b). The System has the ability to sue and be sued in its own name. As such,
it meets none of the exclusion criteria set forth in the Settlement Agreement at Paragraph
5.1.2.
OR
X The System is a municipally owned public water system, but is not listed on Exhibit
I of the Settlement Agreement as a state—owned public water system that would be
excluded from the Settlement Agreement if it could not sue or be sued in its own name.
(Settlement Agreement paragraph 5.1.2, subsection (b). The System has the ability to
sue and be sued in its own name. As such, it meets none of the exclusion criteria set
forth in the Settlement Agreement at Paragraph 5.1.2.
My address is 111 Hassan Street SE., Hutchinson, Minnesota, 55350 . My telephone
number is 320-234-4241 and the facsimile number is 320-234-4240. My email is
mi aunichnhutchinsommn.gov.
6. The address of System is Ill Hassan Street SE., Hutchinson, Minnesota, 55350. The
telephone number is 320-234-4241 and the facsimile number is 320-234- 4240. The
email address for the System is iaunich.c �,hutchinsommri. og_v.
7. As City Administrator of the System, I have authority to make decisions on legal matters
involving it, pursuant to the City Charter of the City of Hutchinson, Minnesota. I am,
therefore, legally authorized to request to exclude System as a Settlement Class Member,
from the Settlement Agreement. At this time, I am formally requesting that the System
be excluded from the E.I. DuPont De Nemours and Company (n/k/a EIDP, Inc.), et al
Settlement Agreement in the case of In re: Aqueous Film -Forming Foams Products
Liability Litigation, MDL No. 2-18-mn-2873-RMG. This request relates to City of
Camden, et al. a E.I. DuPont De Nemours and Company(n/k/a EIDP, Inc.), et al., 2:23-
cv-03230-RMG
I declare under penalty of perjury under the laws of the United States of America that the
foregoing is true and correct.
Executed this 30"' day of November, 2023, at Hutchinson,
Matthew Ja ch �
On behalf of City of Hut Con,
Its:
City Administrator
'It .
A CITY ON PURPOSE.
December 4, 2023
In re: Aqueous Film -Forming Foams Products Liability Litigation
c/o 3M Notice Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103 Fla US Mail
RE: Request for Exclusion from Settlement Agreement in In re: Aqueous Film -Forming
Foams Products Liability Litigation, MDL No. 2-18-mn-2873-RMG. This request relates
to City of Camden, et al. a 3M Company, Case No. 2:23-cv-03147-RMG
Dear 3M Notice Administrator:
The City of Hutchinson, Minnesota ("System") hereby formally requests to be excluded from the
Settlement Agreement between Public Water Systems and 3M Company in the above -referenced
matter. The attached affidavit establishes System's standing, including the name, address,
telephone and facsimile numbers, and email address (if available) of the System as well as my
name, address, telephone and facsimile number, and email address (if available). It also establishes
that I have the authority to make this request on behalf of System.
By this request, System understands that it will be waiving the ability to participate in the
settlement of the above -referenced case, and all benefits and obligations contained therein. If
System desires to receive payment from 3M for any damages from 3M related to PFAS
contamination, it must do so via separate litigation.
If you have any questions about this request for exclusion, please contact the System's attorney:
Marc Sebora, 320-234-5662, mseboranhutchinsommn. ov .
Sincerely,
Matthew Ja ich
Attachment: Affidavit in support of request for exclusion
cc (served as required by FRCP 5):
Special Master Matthew Garretson
Wolf/Garretson LLC
P.O. Box 2806
Park City, UT 84060
AFFF Public Water System Claims
P.O. Box 4466
Baton Rouge, LA 70821
Kevin H. Rhodes
Executive Vice President and Chief
Legal Affairs Officer
Legal Affairs Department
3M Company
3M Center, 220-9E-01
St. Paul, MN 55144-1000
Thomas J. Perrelli
Jenner & Block LLP
1099 New York Avenue, N.W.,
Suite 900
Washington, DC 20001-4412
Richard F. Bulger
Mayer Brown LLP
71 South Wacker Drive
Chicago, Illinois 60606
Scott Summy
Baron & Budd, P.C.
3102 Oak Lawn Ave, Ste. 1100
Dallas, Texas 75219
Michael A. London
Douglas & London
59 Maiden Lane, 6th Floor
New York, NY 1003 8
Paul J. Napoli
Napoli Shkolnik
1302 Av. Ponce de Leon
San Juan, Puerto Rico 00907
Elizabeth A. Fegan
Fegan Scott LLC
150 S. Wacker Dr, 24th floor
Chicago, Il 60606
Joseph F. Rice
Motley Rice
28 Bridgeside Blvd.
Mount Pleasant, SC 29464
Affidavit in Support of Request for Exclusion from Settlement Agreement in
In re: Aqueous Film -Forming Foams Products Liability Litigation, MDL No. 2-18-mn-2873-
RMG
and specifically City of Camden, et al. v 3M Company, Case No. 2:23-cv-03147-RMG.
l . I am the City Administrator of the City of Hutchinson, Minnesota Public Water System
("System"). In this role, I have authority over the supervision, management and control
of the System, including provision of drinking water to individuals and businesses in City
of Hutchinson, Minnesota in the United States of America. This includes authority to
oversee operations at the System.
2. The proposed Settlement Class, for settlement purposes only, is defined as, "[e]very
Active Public Water System in the United States of America that —(a) has one or more
Impacted Water Sources as of the Settlement Date (June 22, 2023); or (b) does not have
one or more Impacted Water Sources as of the Settlement Date, and (i) is required to test
for certain PFAS under UCMR-5, or (ii) serves more than 3,300 people, according to
SDWIS." (Dkt. No. 3620-1 ¶ 5.1.)
3. Check one:
The System has one or more impacted sources as of the Settlement Date (June 22,
2023) and is a Phase I eligible public water system. It [ is/is not j listed in Exhibit E of
the Settlement Agreement. The impacted water source is [name of impacted water
source]. As such, the System is a member of the above -referenced proposed Settlement
Class under the Settlement Class definition subsection (a).
W,
_ The System does not have one or more impacted water sources, but is required to
test for certain PFAS under UCMR-5, and is a Phase II eligible public water system. It [
is/is not I listed in Exhibit F of the Settlement Agreement. It is a member of the above -
referenced proposed Settlement Class under the proposed Settlement Class definition
subsection (b)(i).
X_ The System does not have one or more impacted water sources, but serves 14,499
people with drinking water and is a Phase II eligible public water system. It is listed in
Exhibit F of the Settlement Agreement. It is a member of the above -referenced proposed
Settlement Class under the proposed Settlement Class definition subsection (b)(ii).
4. Check one:
_ The System is listed on Exhibit H of the Settlement Agreement as a state-owned
public water system that would be excluded from the Settlement Agreement if it could
not sue or be sued in its own name. System has the ability to sue and be sued in its own
name. As such, it meets none of the exclusion criteria set forth in the Settlement
Agreement at Paragraph 5.1
OR if the public water system is not listed on Exhibit H, use the following:
X The System is a municipally system, but it is not listed on Exhibit H of the Settlement
Agreement as a public water system that would be excluded from the Settlement
Agreement if it could not sue or be sued in its own name. However, the System has the
ability to sue and be sued in its own name. As such, it meets none of the exclusion criteria
set forth in the Settlement Agreement at Paragraph 5.1
My address is Matthew Jaunich. My telephone number is 320-234-5662 and the
facsimile number is 320-234-4240. My email is miaunichc&hutchinsommn.gov
6. The address of System is I I I Hassan Street SE., Hutchinson, MN 55350. The telephone
number is 320-234-4241 and the facsimile number is 320-234-4240. The email address
for the System is miaunicK4.hutchinsoninn.gov
As Administrator of the System, I have authority to make decisions on legal matters
involving it, pursuant to the City of Hutchinson, Minnesota City Charter. I am,
therefore, legally authorized to request to exclude System as a Settlement Class Member,
from the 3M Settlement Agreement. At this time, I am formally requesting that the
System be excluded from the 3M Settlement Agreement in the case of In re: Aqueous
Film -Forming Foams Products Liability Litigation, MDL No. 2-18-mn-2873-RMG. This
request relates to City of Camden, et al. a 3M Company, Case No. 2:23-cv-03147-RMG.
I declare under penalty of perjury under the laws of the United States of America that the
foregoing is true and correct.
t
Executed this day of rpC 2 �Se , 2023, at Hutchinson, Minnesota.
jAffiant's Si nature]
e
Matthew Jaun'
On behalf of the City of Hutchinson, Minnesota
Its: City Administrator
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Agenda Item: Ordinance No. 25-870 - Sale of Municipally -Owned Land to Kasal Holdings LLC
Department: Legal
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Marc Sebora
Agenda Item Type:
Presenter: Marc Sebora
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City of Hutchinson has been approached by Kasal Holdings, LLC, the corporate owner of MITGI, about acquiring
a small unbuildable lot that adjoins the MITGI building on its south side. In exchange, MITGI would give the City
parking spaces for access to Fireman's Park as well as other drainage and utility easements through the MITGI
parking lot and around the MITGI building.
Attached for your consideration is a land conveyance agreement. As part of the agreement, the City would transfer
ownership of the lot on the south side of the MITGI building (Lot 2 of the Redevelopment Plat). In exchange for the
City conveying Kasal Holdings LLC the lot, they would agree to enter into a separate easement agreement to provide
17 sparking spaces in its parking lot adjacent to Fireman's Park for public use as well as preserve drainage and utility
easements through the middle of its parking lot and a 25 foot easement for utilities purposes on the south side of its
building. Kasal Holdings LLC will take the lot being conveyed to them in "as is" condition.
The easement agreement will be included in the January 13, 2026, Council packet once the second reading of the
ordinance conveying this property has been approved by the City Council.
The lot is unbuildable due to the underground infrastructure on the lot and it would be one last lot for the City to have
to maintain.
All dispositions of City -owned property must be done by ordinance and, therefore, I ask that you approve the first
reading of this ordinance.
BOARD ACTION REQUESTED:
Approve first reading of Ordinance No. 25-870 and land conveyance agreement with Kasal Holdings LLC.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: No
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source:
ORDINANCE NO. 25-870
PUBLICATION NO.
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF
MUNICIPALLY OWNED REAL PROPERTY
THE CITY OF HUTCHINSON ORDAINS:
Section 1. That the municipally owned real property legally described as follows:
Lot 2, Block 1, Hutchinson Downtown Redevelopment Plat, McLeod County, Minnesota
for good and valuable consideration is hereby transferred and conveyed to Kasal Holdings LLC or its
successor or assigns as agreed upon in the purchase agreement.
Section 2. The City Administrator, Matthew Jaunich, or his designee is authorized to sign any
and all documents on behalf of the City to effectuate the closing of this transaction.
Section 3. This ordinance shall take effect upon its adoption and publication.
Adopted by the City Council this 13th day of January, 2026.
Gary T. Forcier
Mayor
ATTEST:
Matthew Jaunich
City Administrator
LAND CONVEYANCE AGREEMENT
This LAND CONVEYANCE AGREEMENT ("Agreement") is made and entered into as
of this day of , 2025 ("Effective Date"), by and between the CITY OF
HUTCHINSON, a Minnesota municipal corporation (the "City"), and KASAL HOLDINGS, LLC,
a Minnesota limited liability company ( "Kasal").
RECITALS
WHEREAS, the City owns Lot 2, Block 1, ("Lot 2") Hutchinson Downtown Redevelopment
Plat, McLeod County, Minnesota (the "Plat");
WHEREAS, Kasal owns Lot 1 Block 1, except the North 200 feet of the West 200 feet
thereof, Hutchinson Downtown Redevelopment Plat, McLeod County, Minnesota ("Lot 1");
WHEREAS, Citizens Bank & Trust Co., Hutchinson, Minnesota (the "Mortgagee") holds a
Mortgage dated March 16, 2022, recorded March 17, 2022 as Document No A458153; as modified
by that certain Modification of Mortgage dated March 22, 2023, recorded March 22, 2023 as
Document No. A463120; as modified by that certain Modification of Mortgage dated September 18,
2024, recorded September 18, 2024 as Document No. A469485 in the office of the County Recorder
of McLeod county, Minnesota (the "Mortgage");
WHEREAS, the City desires to transfer ownership of Lot 2 to Kasal;
WHEREAS, in exchange for the City's transfer of ownership of Lot 2, and for other good
and valuable consideration, Kasal will record an Amended and Restated Cross Easement Agreement
(defined below) providing for certain easements more fully described below, all as depicted on
Exhibit A, attached hereto;
WHEREAS, the City and Kasal have determined that the value of Lot 2 and the value of the
easements pursuant to the Amended and Restated Cross Easement Agreement are of substantially the
same value and each party waives any right or claim to payment for the difference in value between
the two interests; and
WHEREAS, the Mortgagee wishes to consent to the acquisition of the property and granting
of the easements pursuant to the Amended and Restated Cross Easement Agreement.
NOW, THEREFORE, in consideration of the promises and of the payments and mutual
covenants contained herein, the receipt, value, and sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:
Consideration for the Easements. In and for the consideration of a sum of Ten
and No/100 Dollars ($10.00) and the transfer of ownership of Lot 2 from the City to Kasal, Kasal
agrees to grant the following easements to the City pursuant to an Amended and Restated Cross
Easement Agreement ("A&R Agreement"):
(i) A 15.00 foot utility easement over, under and across that part of Lot 1 lying
7.50 feet on each side of the centerline (as defined therein), and under and
across the South 27,50 feet of the North 110.00 feet of the East 81.00 feet of
the West 281.00 feet of Lot 1, as more fully depicted on Exhibit A, attached
hereto and incorporated herein (the "Utility Easement");
(ii) A 25.00 foot drainage and utility easement over and across the South 25.00
feet of Lot 2, as more fully depicted on Exhibit A, attached hereto and
incorporated herein (the "Drainage and Utility Easement"); and
(iii) An easement for ingress and egress to and the non-exclusive right to utilize,
17 parking spaces located on the North property line of Lot 1, directly adjacent
to Fireman's Park, as more fully depicted on Exhibit A (the "Parking and
Access Easement", and together with the Utility Easement and Drainage and
Utility Easement, the "Easements").
2. Closing. Upon approval from both parties to the A&R Agreement, and
confirmation that all contingencies set forth herein have been satisfied or waived by the parties, the
closing of this transaction shall occur fifteen (15) days after the City's approval by ordinance of the
transfer the ownership of Lot 2 to Kasal, (the "Closing" or "Date of Closing") or at such other time,
or by such other means, as the parties may agree in writing. Closing shall be conducted via escrow
with all documents being delivered to Heather Haars, Sr. Escrow Officer at Old Republic National
Title Insurance Company, NCS, 11055 Wayzata Boulevard, Suite 250, Minnetonka, MN 55305 (the
"Title Company")
3. Representations and Warranties of City. The City does hereby covenant,
warrant and represent to Kasal as follows:
A. The City has good, marketable, insurable title to Lot 2, free and clear of all
liens, encumbrances, leases, claims, and charges; all material easements, rights -of -way, covenants,
conditions and restrictions; and any other matters affecting title thereto, except for such matters as are
approved or waived by Kasal.
B. To the best of the City's knowledge and belief, the conveyance of Lot 2
pursuant hereto will not violate any applicable statute, ordinance, governmental restriction or
regulation, or any private restriction or agreement.
C. To the best of the City's knowledge and belief, there is no litigation pending,
or to the best of the City's knowledge, investigation, condemnation or proceeding of any kind
threatened against the City, which may have a material adverse effect upon Lot 2.
D. There are no hazardous materials, hazardous wastes, toxic substances or other
regulated substances on Lot 2 as those terms may be defined in state and federal statutes and rules
and regulations, and shall include asbestos and petroleum based products (collectively, the
"Hazardous Material") on Lot 2 whether placed by spill, release, discharge, disposal or storage; nor
2
has any Hazardous Material penetrated any waters on or underlying Lot 2.
E. The City has not received a notice of any kind whether preliminary, warning
or merely informative, regarding potential environmental violations, spills or claims which are
currently existing or may in the future result from actions occurring during the City's ownership of
Lot 2.
4. Examination of Lot 2.
A. The parties hereto acknowledge and agree that Kasal has had the opportunity
to inspect the physical condition of Lot 2 and that Kasal is taking Lot 2 in its "AS -IS WHERE -IS"
condition.
B. Kasal hereby agrees to hold the City harmless from liabilities that may arise
out of Kasal's presence on Lot 2 prior to the Effective Date.
5. Conditions Precedent to Closing by Kasal. The obligation of Kasal to Close this
transaction, at the option of Kasal, shall be subject to each of the following conditions precedent:
A. All of the representations and warranties by the City contained herein shall be
true and correct as of the Date of Closing and the City shall have fully complied with and performed
the conditions and agreements required to be performed by the City under this Agreement.
B. Kasal shall have determined that title is in accordance with this Agreement,
free from all encumbrances, and that a survey of Lot 2 reveals no encroachments or other defect.
C. The parties shall negotiate and agree in writing to the A&R Agreement.
Kasal shall have the right to unilaterally waive any condition herein set forth and proceed to Close.
6. Taxes and Prorations. On the Date of Closing the following prorations shall
be made:
A. On or before the Date of Closing, the City shall pay all real estate taxes and
installments of assessments payable in all years prior to the year of Closing.
B. All real estate taxes and assessments for the year of Closing shall be prorated
as of the Date of Closing.
7. Obligations of City at Closing. At Closing, the City shall do the following:
A. Deliver to Kasal a Warranty Deed duly executed and acknowledged by the
City, in recordable form, conveying to Kasal good and marketable title to Lot 2 free and clear of all
liens, encumbrances, covenants, conditions, restrictions, rights -of -way, claims of tenants, occupants
and possessory rights and any other matters affecting title.
B. Deliver to Kasal fully executed counterparts to the A&R Agreement.
3
C. Deliver to Kasal its affidavit, duly executed and acknowledged by the City, in
customary form, relative to judgments, federal tax liens, mechanic's liens and outstanding interests in
Lot 2, and a FIRPTA certificate.
D. Deliver to the Title Company any and all documentation required by the terms
of this Agreement and such other documents customarily and reasonably required so that the Title
Company may issue a title policy to Kasal.
E. Deliver any other documents contemplated by the terms of this Agreement.
8. Obligations of Kasal at Closing. Subject to the full, complete and timely
performance by the City of its obligations hereunder, at Closing, Kasal shall do the following:
A. Deliver fully executed counterparts to the A&R Agreement.
B. Deliver any other document contemplated by the terms of this Agreement.
C. Deliver to the Title Company any and all documentation required by the terms
of this Agreement and such other documents customarily and reasonably required so that the Title
Company may issue a title policy to Kasal.
9. Remedies. In the event the City shall fail to consummate the transfer of Lot 2 for
any reason except the default of Kasal, Kasal may enforce specific performance of this Agreement or
may bring suit for damages against the City.
10. Notices. All notices requests, demands and other communications hereunder
shall be in writing and deemed to be duly given, (a) when delivered by hand, with a record of receipt,
(b) the fourth (4th) day after mailing, if mailed by certified or registered mail, return receipt requested
with postage prepaid, (c) the day delivered by a nationally recognized overnight courier, with a record
of receipt, to the parties at the following addresses (or to such other address as a party may have
specified by the notice given to the other party pursuant to this provision) or (d) the date sent by
facsimile transmission or email (in the case of facsimile transaction, if electronically confirmed, or,
in the case of email, so long as sender does not receive an automatic email from the applicable email
server indicating delivery failure):
If to the City: City of Hutchinson
c/o City Administrator
I I I Hassan Street SE
Hutchinson, MN 55350
Fax: (320) 234-4240
Email:
If to Kasal: Kasal Holdings, LLC
45 W. Highland Park Drive NE
PO Box 549
Hutchinson, MN 55350
Fax:
4
Email:
Or to such other addresses as either party may provide to the other in writing. Any notices hereunder
may be given either by a party or by such parry's attorney.
11. Assignment. The rights and obligations of Kasal hereunder may be assigned by
Kasal, without the City's consent, to a limited liability company or other entity formed by Kasal for
the purpose of acquiring Lot 2, and Kasal shall provide the City with notice of the assignment at least
two (2) days prior to the Date of Closing. Such assignment shall not relieve Kasal of its obligations
to perform hereunder.
12. Miscellaneous.
A. The recitals above are hereby incorporated into this agreement as though they
were contained herein.
B. This Agreement shall inure to the benefit of, and be binding upon, the
administrators, successors and assigns of the parties hereto.
C. This Agreement shall not be construed more strictly against one party than
against the other, merely by virtue of the fact that it may have been drafted or prepared by counsel for
one of the parties, it being recognized that both Kasal and the City have contributed substantially and
materially to the preparation of this Agreement.
D. The parties agree to execute mutually and deliver to each other, at Closing,
such other and further documents as may be reasonable required by counsel for the parties or title
insurer, to carry into effect the purposes and intents of this Agreement.
E. Any amendments or alterations to this Agreement shall be made in writing
and appended hereto. No statement, promise, representation or inducement relating hereto that is not
a part hereof shall be binding on the parties.
F. This Agreement may be executed in any number of counterparts, each of
which shall be considered an original.
G. The City and Kasal shall be solely responsible for compensating their
respective brokers, if any, and shall hold each other harmless from claims by the other's broker or any
other broker claiming through the other party.
H. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY, AND ALL CLAIMS AND DEFENSES ARISING OUT OF OR RELATING TO ANY
SUCH TRANSACTION OR THIS AGREEMENT OR THE FORMATION, BREACH,
TERMINATION OR VALIDITY OF ANY PART OF THIS AGREEMENT, SHALL IN ALL
RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF MINNESOTA.
5
[Signatures on following pages]
IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the
day and year first above written.
CITY:
THE CITY OF HUTCHINSON,
a Minnesota municipal corporation
By: _
Name:
Title:
ACKNOWLEDGMENTS
STATE OF MINNESOTA )
) ss.
COUNTY OF
The foregoing instrument was acknowledged before me
, 2025, by , the
Hutchinson, a Minnesota municipal corporation, on behalf of the corporation.
Notary Public
this
day of
of the City of
Signature page for the City of Hutchinson to the Land Conveyance Agreement
7
IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the day and
year first above written.
KASAL:
KASAL HOLDINGS, LLC,
a Minnesota limited liability company
By: _
Name:
Title:
ACKNOWLEDGMENTS
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged
2025, by ,
Holdings, LLC, on behalf of the limited liability company.
before me this day of
the of a Kasal
Notary Public
Signature page for Kasal Holdings, LLC, a Minnesota limited liability company
to the Land Conveyance Agreement
IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the day and
year first above written.
MORTGAGEE
CITIZENS BANK & TRUST CO.,
Hutchinson, Minnesota
By: _
Name:
Title:
ACKNOWLEDGMENTS
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2025, by , the of a Citizens Bank
& Trust Co., Hutchinson, Minnesota, on behalf of the Mortgagee.
Notary Public
This Instrument Drafted By:
MONROE MOXNESS BERG, P.A. (RSB)
7760 France Avenue S., Suite 700
Minneapolis, MN 55435
Telephone: (952) 885-5999
Signature page for Citizens Bank & Trust Co., Hutchinson, Minnesota
to the Land Conveyance Agreement
1
EXHIBIT A
DEPICTION OF EASEMENTS
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HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution No 15968 Adopting Attachment E of the City of Hutchinson Employee
Agenda Item: Handbook - Personnel Policy, Creating the Minnesota Paid Leave Policy
Department: Administration
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Kellie Wendland
Agenda Item Type:
Presenter: Kellie Wendland
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The Minnesota Paid Leave Law goes into effect January 1, 2026. The attached policy will be
added to our current employee handbook as an attachment until it can be folded into a revamped
handbook.
BOARD ACTION REQUESTED:
Consideration and approval of Resolution No. 15968 Adopting Attachment E of the City of Hutchinson
Employee Handbook - Personnel Policy, Creating the Minnesota Paid Leave Policy
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
City of Hutchinson
Employee Handbook — Personnel Policy
2016
ATTACHMENT E
RESOLUTION NO. 15968
RESOLUTION ADOPTING ATTACHMENT E OF THE CITY OF HUTCHINSON
EMPLOYEE HANDBOOK — PERSONNEL POLICY CREATING THE MINNESOTA PAID
LEAVE POLICY
Minnesota Paid Leave Policy
Overview
The city provides time off to eligible employees who qualify for Minnesota Paid Leave
(MNPL) benefits under Minnesota law. The City of Hutchinson is a participant in the Paid
Leave Program through an approved equivalent plan offered through MetLife instead of
through the State of Minnesota's Paid Leave program. MNPL benefits are funded through
premium contributions payable to MetLife. The premium cost will be split between the city
and employee as follows: The City of Hutchinson will pay 50% of the required premium and
employees will pay 50% of the premium cost through payroll deductions starting January 1,
2026.
Eligibility
Eligibility determinations for MNPL benefits are made by MetLife, in accordance with MN
State Statute 268B. Generally, to be eligible for MNPL, you must:
• Work at least 50% of the time from a location in Minnesota, including employees
who work from home or spend time in other states occasionally.
• Meet the financial eligibility requirements by having earned over a specific amount of
wages as defined by under Minnesota law at the time of your requested leave.
Benefit Amount
An employee's weekly MNPL benefits are calculated and determined by MetLife using
method established by the Minnesota Department of Employment and Economic
Development (DEED).
Leave Entitlement and Usage
MetLife may approve MNPL leave for the following conditions in a benefit year:
• Up to 12 weeks of medical leave (for yourself) to take care of yourself for a serious
health condition, including pregnancy, childbirth, recovery, or surgery.
• Up to 12 weeks of family leave to-
o Bond with a child through birth, adoption, or foster placement
o Care for a family member with a serious health condition
o Support a military family member called to active duty
o Receive covered types of care for yourself or a family member because of
domestic abuse, sexual assault, or stalking
You can take both types of leave in the same year, but you cannot exceed 20 weeks total
within a single benefit year. For example, an employee may be entitled to 12 weeks of
family leave to bond with a child and another 8 weeks of medical leave for their serious
health condition. The leave year is calculated based on a roller backward basis. There is no
waiting period for MNPL if you are granted the benefit.
MNPL Intermittent Leave
Employees may apply for intermittent leave in most cases, provided the leave is reasonable
and appropriate to the needs of the individual requiring care.
A) Eligibility
In addition to the other eligibility requirements under the MN Paid Leave law, employees
seeking intermittent leave must have at least eight hours of accumulated leave (unless
more than 30 days have lapsed since taking the initial leave).
8) Notice
In situations where employees seek MNPL on an intermittent basis, employees must make
a reasonable effort to provide written notice to the HR Director of the need for intermittent
leave before applying for MNPL benefits through the program. As part of the notice,
employees must provide the city with the following: 1) proposed intermittent leave schedule;
and 2) a completed certification from a health care provider identifying the leave as
necessary and a reasonable estimate of the frequency and duration and treatment schedule
for the leave.
C) Increments of Leave & Maximum Number of Hours
Consistent with other forms of leave provided by the city, employees may take intermittent
leave in increments of .25 hours. If eligible for intermittent leave, the city allows a maximum
of 480 hours of intermittent leave in any 12-month period. After reaching the maximum
amount of allowed intermittent leave, employees may request continuous MNPL provided
the continuous leave does not exceed the maximum amount of MNPL allowed by law.
Definitions
Family member includes:
o Spouse or partner
o Child (including biological, adopted, step, or foster children, or a child you
raise even if you are not legally related)
o Parent or person who raised you
o Sibling
o Grandchild or grandparent
o In-laws (including son, daughter, father, or mother)
o Anyone close to you who depends on you like family, even if not related by
blood
• A serious health condition means a physical or mental illness, injury, impairment,
condition, or substance use disorder. Taking care of yourself for this serious
condition may involve evaluation, treatment, inpatient care, recovery, or not being
able to perform regular work, attend school, or do regular daily activities. This
includes childbirth, conditions related to pregnancy, or surgery.
Notice
Prior to starting a claim with the MetLife, employees should reach out to the Human
Resources Director to notify them of your intention to take leave. If the need is foreseeable,
we ask that you provide at least two -weeks' notice prior to taking leave. If the leave is not
foreseeable you will still be able to take leave under MNPL and we ask that you provide as
much notice as possible.
How to Apply for Minnesota Paid Leave
After your leave has been discussed, you may apply for MNPL through our third party
administrator, MetLife. Step by step information on applying for MNPL can be obtained
from the HR Director.
Interaction with Other Laws and Benefits
MNPL will run concurrently with any leave and/or wage supplement for which you may be
eligible for under local, state, or federal law which may include: Family and Medical Leave
Act (FMLA) and Minnesota Women's Economic Security Act (WESA) pregnancy and
parenting leave
Supplementing MNPL Benefits with Accrued Paid Leave
If you are receiving MNPL benefits, the city allows you to supplement, or "top off," your
MNPL benefits with any accrued but unused paid leave. If you choose to supplement your
MNPL benefits in this way, the combined weekly sum of MNPL benefits and city -provided
paid leave benefits cannot exceed your Individual Average Weekly Wage (IAWW). For more
information, contact the Human Resources Director.
Maintaining Health Coverage During Leave
Unless the employee revokes coverage while on MNPL, the city will continue to provide
group health insurance coverage for an employee on MNPL under the same conditions as
the coverage was provided before the employee took leave. You must continue to make
timely payments of your share of the premiums for such coverage. If you are not using paid
time off to cover part or all of the leave, you will be responsible for remitting your portion of
health premiums to the city in order to ensure continuation of benefits.
Group health insurance may be cancelled if an employee's premium payment is 30 days
late. Before terminating coverage, the city will provide written notice to the employee at
least 15 days before the coverage is terminated listing the final date payment is due (30
days past the due date) to avoid cancellation and the date coverage will end if payment is
not received.
An employee's share of premium payments for their group health insurance coverage may,
at the employee's option, be:
1. prepaid at or before the start of the leave in which your health deductions may be
modified to accept the agreed upon amounts and cadence of premium deductions;
2. arranged to write a check every 2 weeks for the duration that the employee may be
out;
3. be postpaid after the leave has ended in which your health deductions may be
modified to accept the agreed upon amounts and cadence of premium deductions.
Coverage that lapses due to nonpayment of premiums will be reinstated immediately upon
return to work without a waiting period.
Reinstatement
Upon return from covered MNPL, you will be reinstated to your previous position or to an
equivalent position, with the same status, pay, employment benefits, length -of -service
credit, and seniority credit as of the date of leave as long as you have worked for the city for
a minimum of 90 calendar days.
Upon return to work, if it becomes evident that the employee is unable to perform the key
essential functions of their position (with or without reasonable accommodation), the city
may engage in an interactive process, consistent with the American with Disability Act
(ADA) and/or Minnesota Human Rights Act (MHRA) and other applicable workplace
policies, including workplace safety protocols, to determine appropriate next steps.
Retaliation
The city will not interfere or retaliate against employees who request or take leave in
accordance with the MN Paid Leave law.
Adopted by the City Council this 23rd
ATTEST:
Matthew Jaunich, City Administrator
day of December 2025.
Gary T. Forcier, Mayor
A CITY ON PURPOSE.
December 23, 2025
To the Honorable Mayor Gary Forcier and
City Council Members of the city of Hutchinson
RE: 2026 Budget Message
Dear Mayor Forcier and Council Members:
Office of the City Administrator
III Hassan Street SE
Hutchinson, MN 55350-2522
320-234-4241/Fax 320-234-4240
The following material constitutes the proposed general fund, enterprise funds, debt service
funds and the Capital Improvement Plan (CIP) for the city of Hutchinson for 2026. There have
been a couple of minor changes to the budgets since the truth -in -taxation hearing that was
held on December 4. With some early retirements and vacancies within the police department,
along with better-than-expected workers comp insurance rates, we were able to reduce
expenses and the tax levy even further than what had been projected at the TNT Hearing. The
budget package before you represent extensive work done by the department directors and
their staff, finance director Andy Reid, me, and the five of you. The budget development
process began in April and continued throughout the summer into September when the
preliminary budget and tax levy was adopted. The preliminary budget was balanced and
included a property tax levy increase of 9.2%. The department directors worked on reducing
that tax levy increase during the months of September through November, and the budget was
subsequently revised and reprioritized by Andy Reid and myself in conjunction with the
Directors. The 2026 final budget and tax levy numbers being presented to you today are
balanced with a new proposed tax levy increase at 6.2% and is the culmination of 8 months of
work by the great staff of the city of Hutchinson that included four public work sessions and a
public hearing with the city council.
Our budget is driven by several different factors. The primary factor is the type and level of
services we want to provide to the community as a whole. It is within your role as the City
Council and policymakers to determine what types, and to what extent, services will be
provided to the citizens of Hutchinson regarding public safety; streets and highways; culture
and recreation; general government; water, sewer and garbage services; as well as the airport,
cemetery, library services, liquor store and Creekside. Another factor that goes into developing
a local municipal budget has to do with how the City is affected by unfunded mandates made at
the State and Federal levels of government. Some of those requirements may be good, some
may be bad, and some may be questionable in value. Still, many times local governments have
no choice but to meet these requirements and pay the associated costs. Unfunded mandates
can range from personnel practices to water and wastewater treatment standards, or to next
year's new Minnesota Paid Family and Medical Leave, with the costs of these mandates being
covered by the taxpayers and/or ratepayers.
When it comes to developing a budget, it is my belief that the annual budget, which includes a
5-year capital plan, is one of the biggest, if not the biggest, policy decision a city council can
make. The policy of a budget more or less drives the "work" of the city and is one of the forces
behind achieving the City's Mission and Vision Statements and funding its seven Core areas of
focus. My philosophy in helping to develop this budget and future budgets is to balance the
needs of the City Council, department directors and staff with the costs associated with the
desired service levels and needs of the public, all the time being aware of the desire to keep the
tax levy reasonable to encourage growth within the community. Ultimately, the needs versus
the wants are decided by you, the elected officials.
The development of the 2026 budget included the consideration of five long-term goals that are
an emphasis with every budget staff develops. Those goals are as follows:
1. What should current and future tax levies look like?
2. What levels of services should the City perform and provide now and in the future?
3. What is an acceptable level of debt?
4. What is our level of investment in technology and equipment, and what period of
payback is acceptable?
5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are
we going to pay for them?
As we look to the future, it will be important for the City to continue its efforts to encourage
growth throughout all aspects of the City. Obviously, it is important to see continued growth
within the housing and commercial markets. However, the greatest impact to the City would be
to see new industrial growth, something that is a significant focus of our EDA. More property
taxpayers mean everyone pays less if the overall tax levy stays constant. More commercial and
industrial growth will lower the tax burden on all other properties due to their higher tax
classification. Therefore, budgets and levies that grow with inflation and/or new spending can
remain stable on individual taxpayers due to more taxpayers sharing the burden. Unless the tax
base grows faster than the rate of inflation plus new spending, the individual tax burden will
grow if we increase the tax rate.
We have a mixed bag here in Hutchinson, fortunately our tax base continues to grow, but that
growth has slowed down over the past couple of years. While growth has slowed, tax levies
have increased at a level that has increased our tax rate. Noting that, our tax levy increases
continue to remain relatively low compared to other regional centers and to the State average.
From 2024 to 2025, we saw our overall market value increase by 1.7% from $1,554,169,000 to
$1,579,905,400. This was the thirteenth straight year of an increase and one that was on top of
a growth of 3.3% the previous year. With the continued growth of the city in 2025, we are
likely to see a fourteenth straight year of market values increasing next year. Most areas of
property saw growth in 2025, except for Agricultural which saw a decrease of about 10%.
Residential value increased by 1.4%; apartments went up by 0.7%, and commercial/industrial
went up 4.1%. Along with our market values increasing, we have also seen our total net tax
capacity increase from $16,265,288 in 2024 to $16,410,588 in 2025, an increase of 0.9%. Early
projections showed that we will see a slight increase in our net tax capacity in 2026.
One thing to be aware of when setting tax levies in Hutchinson is that the city's value (76%)
and tax capacity (59%) is wrapped up mostly in our residential homesteaded property. As
noted previously, the more commercial and industrial property a city has; the lower the tax
burden will be on residential homes. Identifying opportunities to expand our commercial and
industrial tax base will help to ease the tax burden not only to our residential properties but to
all of our properties.
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And with that, here in detail are more specifics regarding the 2026 municipal budget.
Tax Levy
The tax levy for the general fund has been set at $7,251,682, up by $522,648 compared to
2025, an increase of 7.8 percent. This will be the eleventh straight increase to the general fund
tax levy. The debt service levy for 2026 has been set at $2,610,792; an increase of 2.5% and
the fifth straight year of an increase to the debt service levy. We've seen recent increases in the
debt service levy over the last couple of years to assist in the financing of the new police
station. The combination of the general fund tax levy and the debt service levy for 2026 sets
the total city portion of the tax levy at $9,862,474, a 6.3% increase from 2025. The EDA tax
levy is budgeted to increase by 1.7%, with the HRA tax levy budgeted to increase by 1.8%.
Overall, the total tax levy impact on a Hutchinson resident, that the city of Hutchinson has
control over, has been set at $10,321,911, up by $593,727 from 2025, an increase of 6.1%. For
comparison purposes, the 2025 total tax levy increased by 5.0% from 2024.
The main reasons behind the need for a tax levy increase is to cover costs associated with
paying our workforce. Some of this is normal growth related to general wage and benefit
increases, but there are some additional costs in the 2026 budget related to a couple of new
positions being included in the budget (new IT staff and engineering staff).
The total tax increase for next year will represent at least the thirteenth straight year of a
municipal tax increase, which includes our general fund and debt fund levies. Since 2016, our
total property tax levy impact has increased on an average basis by 3.9%. With the tax levy
increase, the proposed estimated city tax rate for next year will be at 58.51%, up from 56.53%
in 2025. This will be the third straight tax rate increase in the last ten years. A home valued at
$275,000 will see an estimated city tax increase of $52 (3.6%) in 2026. For comparison
purposes, a 0% tax levy increase would have resulted in a property tax decrease of thirty-six
($36) dollars.
General Fund Revenues and Expenditures
The General Fund is the primary operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund. The general fund consists
of the departments and functions necessary to conduct the day-to-day operations of the City.
The general fund is balanced in 2026 with revenues of $16,548,658 and expenditures of
$16,548,658. The need for additional budget reserves is not needed at this time due to a
healthy general fund balance. 2024 audit numbers showed that the City had a general fund
balance of over $8.6 million, approximately 55% of the general fund budget for 2025. The State
Auditor has recommended to cities that their general fund balance should be in the range of
35% to 50%. The 2025 budget and year-end results are not expected to have a significant
impact on the general fund balance.
Outside of the general fund tax levy increase, there were a couple of other changes to general
fund revenues. Next year's general fund revenues include an additional $197,258 in charges for
services revenue. This is a result of higher user fees in line with service costs. The 2026 general
fund revenues also include an additional $50,000 in contributions from the water, wastewater,
and storm water funds to account for additional costs associated with the services provided by
general fund departments. With increased building activity, permit revenue is expected to go up
by $42,000 in 2026.
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Generally speaking, property taxes account for 44% of all general fund revenues in 2026; 18%
comes from charges for service (DMV, recreation and community education fees, etc.); 17%
comes from transfers -in (HUC, Liquor, Creekside, Utilities, etc.); and 13% from
intergovernmental revenue (LGA, State Aid, etc.). The general fund revenues of $16,548,658
are a budget increase of 5.3% from 2025.
With regard to general fund expenditures, the biggest reason for the increase derives from
increases in employee salaries and benefits. Wages and benefits are expected to increase by
$614,639 in 2026. The biggest factor for this large increase is associated with general wage and
performance increases, along with the addition of a new position within the engineering
department along with a new IT position. Wages and benefits account for 68% of all general
fund expenditures in 2026, by far are largest expenditure in the general fund. In regards to our
salary and benefit package, the City continues to offer an attractive wage and benefit package
to assist in the recruitment and retention of capable and well -qualified employees.
The general fund also includes about $147,000 in additional spending for services and charges
due to critical repairs needed at the civic arena, recreation building, and aquatic center. An
additional $50,000 increase in supplies is also included in the budget to account for equipment
needs and upgrades within the PRCE system. Overall, public safety accounts for about 35% of
all budgeted expenditures in the general fund in 2026; 25% goes to general government; about
24% goes to culture & recreation, and 14% goes to streets and highways. Those percentages
are roughly the same as our 2025 budget. Overall, budgeted general fund expenditures
increased by 5.3% from $15,709,729 in 2025 to $16,548,658 in 2026.
Public Enterprise Funds
Liquor Hutch, Creekside, water, wastewater, storm water, and refuse (garbage) funds all
comprise the City's public enterprise funds. Enterprise funds are used to account for operations
that are financed and operated in a manner similar to that of a private business enterprise.
Public enterprise funds should be self-sufficient with user charges (revenues) supporting the
expenditures. That is the case in Hutchinson, as our public enterprise funds remain healthy with
sufficient fund balances. It is estimated that 2025 year-end numbers will show the liquor fund
with an estimated cash balance of about $700,000; the water fund with an estimated cash
balance of about $4.4 million; the wastewater fund with an estimated cash balance of about
$7.3 million; the storm sewer fund with an estimated cash balance of about $1.1 million; the
refuse fund with an estimated cash balance of about $760,000; and the Creekside fund with an
estimated cash balance of about $2.6 million. Five of the six enterprise funds will have cash
balances well above their targeted amount, which is based on 50% of their operating costs plus
one year of debt service payments, except for the liquor fund.
All six funds have planned positive cash flows for next year that will be touched on shortly. With
that being said, revenues and expenses for next year are expected to remain relatively steady
in the water and wastewater funds. Garbage rates are expected to increase by 5% in 2026.
This will be the third straight garbage rate increase. Stormwater rates are expected to increase
by about 8% in 2026. There are no other rate changes within the enterprise funds planned for
2026.
Budgeted water revenues are set at $3,310,000 in 2026, down 14.1% from 2025. Budgeted
water expenses are set at $4,182,200 in 2026, down 20.8% from 2025. Budgeted wastewater
revenues are set at $8,661,800 in 2026, up 69.1% from 2025. Budgeted wastewater expenses
are set at $9,917,196 in 2026, up 12% from 2025. The water fund is seeing significant changes
due to debt falling off and sales tax revenue being shifted to the wastewater fund. The
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wastewater fund is also looking at a large increase in revenues due to bond proceeds being
expected in 2026 for the biosolids project.
Budgeted refuse revenues are set at $1,638,200 in 2026, up 4.9% from 2025. Budgeted refuse
expenses are set at $1,854,413 in 2026, an increase of 6.5% from 2025. Budgeted storm water
revenues are set at $1,353,800 in 2026, up 6.2% from 2025. Budgeted storm water expenses
are set at $1,634,824 in 2026, up 0.7% from 2025. The storm water fund has budgeted for a
rate increase of about 8.0% and the refuse fund a rate increase of 5%. The refuse fund is
increasing its rates due to increasing costs associated with the annual spring and fall cleanups.
Liquor Hutch continues to do well despite national trends showing sales revenue decreasing.
Noting that, Liquor Hutch is expecting revenues to decrease from $7,909,500 in 2025 to
$7,629,400 in 2026, a decrease of 3.5%. Liquor Hutch is also projecting expenses to decrease
from $7,916,568 in 2025 to $7,628,428 (3.6%). Creekside is projecting an increase in revenues
from $2,551,500 in 2025 to $2,940,400, a 15.2% increase. The increase is associated with bit
con being available for sale in 2026. Budgeted expenses are expected to increase as well from
$3,023,338 in 2025 to $3,170,826 (4.9%).
As noted previously, ail six funds are projected to see a positive cash flow. Liquor Hutch
($550,000) and Creekside ($125,000) continue to be a valuable asset to the community and will
contribute $675,000 to the general fund in 2026. Overall, the enterprise funds are expected to
transfer $920,000 to the general fund in 2026. These fund transfers continue to assist the City
as a means to soften the tax burden to the residents of Hutchinson. The City would have to
raise its property taxes or lower its expenses by about 12.7% to replace this revenue if these
transfers did not exist. Enterprise fund revenues account for about 5.5% of our total general
fund revenue. When you include the additional finances the City receives from Hutchinson
Utilities ($1,942,628), total enterprise money coming into the general fund is at $2,862,628.
This is about 17% of our general fund revenue.
Debt Service Funds
Debt service funds are maintained to account for the payment of principal and interest related
to debt issued by the City. Fund balances of these funds are restricted to debt service
requirements and are not available for current expenditure purposes until the debt is retired.
Debt service payments for next year will cost the city $2,984,678, a 0.8% increase from 2025.
Revenue collected for these payments will amount to $2,955,779 of which $2,610,792 will come
from property taxes through our debt levy. Additional revenues for debt service payments come
from fund balances, special assessments, interest, and construction fund transfers. Debt service
related to water, sewer, and storm water are not included within the debt service funds, but are
accounted for within those respective enterprise funds. The total long-term debt of the city for
2026 is $25,105,000, up from $25,045,000 in 2025. All of these payments fall under the City's
targeted debt plan.
Capital Improvement Plan
On an annual budgeting basis, the City develops a five-year Capital Improvement Plan (CIP) to
assist in the financing of major capital needs of the city. The CIP is a budget document that
realistically projects city needs, outlines means by which those needs can be met, and provides
prioritization of those needs. The capital planning process provides the City with a framework to
make decisions regarding current and future city needs considering the city's financial
capability. The CIP commits the City to a long-term capital plan that ensures that expenditures
can be made to add or replace capital items when needed, without significant fluctuations in the
property tax levy. Capital planning helps the City in limiting significant tax increases, prevents
peaks and valleys in its debt retirement program, and is an important factor in maintaining a
strong bond rating. The plan is based upon numerous long-range planning documents that are
updated regularly by several different committees and staff members.
Next year's five-year CIP is valued at $72,647,965, an increase from the previous year's
$65,780,619 five-year plan. The 2026 budget portion of that plan is set at $14,562,301, a
decrease of 4% from our 2025-budgeted amount. The five-year plan accounts for various
investments throughout many different levels of city government. 32% of the five-year plan will
go to investments in the City's infrastructure system (new construction, reclaims, partial
reconstruction); 32% will be spent on enterprise related activities (Creekside, Liquor Hutch,
water, wastewater, etc.); 19% will be spent on public works improvement projects like the
HATS facility; 10% will be spent on PRCE improvements like playgrounds, equipment, and
facility upgrades; with the remaining dollars being spent on various public safety and general
government projects.
The largest projects slated for next year include pavement and hanger improvements at the
airport; facility improvements to the water and wastewater facilities; planning for a community
center remodel; facility improvements to the park system; street and road improvements; and
new equipment and vehicles. Funding for the five-year CIP will come from various sources. The
largest revenue source over the next five years will come from State/Federal grants and aids
and donation at a cost of 30% of the CIP, along with Enterprise Funds for the capital needs at a
cost of 26% of the CIP. New borrowing (21%), property taxes (12%), and special assessments
(5%) make up the majority of the rest of the funding.
Conclusion
As with past years, developing budgets is an on -going process of balancing costs with the
desired levels of services, needs and wants of the community, elected officials and department
directors. Having to balance the wants of the community and sometimes their unwillingness to
pay for those wants is always a challenging aspect of the city budgeting process. Budgets that
require property tax increases are always difficult for me to recommend. Excessive taxes are an
impediment to economic development and growth. Many residents will question the value of
services they do not use. The difficult part as public policy makers are helping them to
understand the overall value of those services to the community as a whole, and not as
individuals.
When staff met with the City Council back in May to start the budget process, we were given a
direction to prepare the 2026 budget in a way that keeps services in line with how services
were provided in 2025, but with a desire to see "users" pay more for the services they use. The
budget presented to the Council today does that with one minor exception. One, it includes the
addition of new IT position to handle the many challenges facing cities with cyber security and
other IT needs of a growing community. Even with this addition, I believe the proposed budget
and tax levy is responsible and necessary to meet the vision and mission statement of the city
and to maintain current services as was requested by the Council during the budget preparation
process. I do not believe the proposed tax levy is excessive and history will show that the City
has always been very conscientious when it comes to the tax burden it is willing to put on its
residents. The 6.3% tax levy increase is below the statewide preliminary tax levy increase
average of 8.7% for cities in Minnesota. I believe the city staff does a great job of planning for
the future keeping in mind the financial impact it may have on the City.
The biggest reason behind the proposed property tax increase for 2026 deals with costs
associated with having reliable and talented employees, and the challenges that go with
51,
keeping them here. Included within that is the addition of another position within the IT and
engineering departments. Because of this, I believe it is appropriate to recommend a tax
increase of 6.3% for 2026.
While 2024 was a year of anticipating what that future will look like, 2025 was a year of
unexpected growth within the community with more to come! We spent a lot of time in 2024
planning for the future of Hutchinson. The fruits of our labor seem to come to fruition in 2025
with several projects taking place. We saw our first new housing development in over 20 years
get built in the Elk Ridge Estates. On top of that, we also saw work start on the 81-unit
apartment complex, the Landing, in downtown Hutchinson. We also saw interest in new retail in
the south side of town and new businesses opened in our downtown main street district. The
future of the city looks to be exciting and bright with more growth planned for next year. As
was noted last year, this growth could have an upward pressure on the need to expand
infrastructure, and this upward pressure is something the City Council needs to be mindful of.
As I state every year, I believe it is our responsibility to create an atmosphere that is conducive
for growth throughout the entire community. The greatest relief to a City's tax burden is growth
and more importantly, growth within the commercial and industrial tax bases. As we look to
move out of 2025 into 2026, I wanted to spend a little bit of time reflecting on this past year
and some of the growth our community saw.
The City's average monthly unemployment rate continues to remain low with an average
monthly rate of 3.8% (through September) in 2025. These rates continue to remain at the
levels of that of the State (3.3%) and Federal (4.2%) percentages. Vacancy rates for our
market rate rental units also continue to be at historic lows and our median sales price of our
residential homes continue to rise, having increased from $257,450 last year to $280,000
through November of 2025, the thirteenth straight year of an increase. Home resales continue
to remain steady (as inventory presents itself) and home foreclosures (lack thereof) continue to
remain low. While home resales continue to remain steady, we have seen a tighter housing
market, which has resulted in new homes continuing to be constructed in town. Although the
lack of available lots has made the housing market tighter, a new housing development in 2025
with the possibility of more next year will assist in relieving this pressure throughout town.
Through October of this year, we have issued 21 building permits for new homes. 2025 was the
twelfth straight year in where we have issued 20 or more new home permits.
The new homes being built this past year will push our ten-year total over 270. Along with new
housing, we saw the completion of the Les Swab Tire building on Highway 15 south, and the
Family Dollar building on Highway 7 west. Main Street saw The Book Keepers, Sips, Grounded
Gardens, Rowen and Raye, and Garden Nook Tea & Gifts all open in the past year. Smokey
Dukes and Deimos Materials moved into the Enterprise Center. Zephyr Wind Services expanded
their operations into the old Hutchinson Manufacturing site, and Miller Manufacturing expanded
their operations from Glencoe into the old Rite Way building in the industrial park. Outside of
private investment, construction was finished this past spring on a new grandstand at VMF, and
the city successfully hosted the 2025 State Amateur Baseball Tournament this past August/
September. The city has added over $380 million in new value to the community over the past
ten years as well, and we are anticipating continued growth in the next year.
2026 hopes to continue the recent trend of investments within the community. 2026 should see
the completion of the Sherwin Williams Paint Store on Highway 15 south, and the Landing
Apartment complex in the downtown area. The hospital is working on an emergency room
expansion, and the Mall is working on a large renovation project in advance of a new tenant
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moving into the space. We are also expecting a new Cannabis Testing Facility to come into
town, along with the construction of a Data Center out in the industrial park. New businesses
(Scooters Coffee?) and business expansions continue to explore Hutchinson, with interest in the
community continuing to be high. More single-family homes will be constructed and the
construction of a new 126-unit (3 buildings) apartment complex at the old Burns Manor site
could start in 2026 as well. Demolition of the old Jorgenson Hotel has begun, and we could see
development on that site as early as next year. The city will continue to market the Industrial
Park, and we are hoping that a lot of the interest that is brewing currently in Hutchinson will
result in projects or the start of projects in 2026.
Finally, I would like to thank finance director Andy Reid and his staff within the finance
department for all of their hard work, along with the department directors and the Mayor and
City Council for your assistance in this budget planning process. Your involvement in this
process and commitment to this community is valuable to the citizens of Hutchinson. We are
blessed as a community to have those who work for us knowing the hard work they put into
their job every day. The City is well positioned to handle the challenges of today and the future.
I hope the information provided to you is useful in helping you understand the 2026 Hutchinson
Municipal Budget and I look forward to another exciting year ahead of us!
Sincerely,
Matthew Jaunich
City Administrator
8
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approving the 2026 Enterprise Fund Budgets
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
For council's review and approval, attached are the 2026 proposed budgets for the Enterprise funds.
- Resolution #15952 - Liquor Fund
- Resolution #15953 - Water Fund
- Resolution #15954 - Wastewater Fund
- Resolution #15955 - Storm Water Fund
- Resolution #15956 - Refuse Fund
- Resolution #15957 - Compost Fund
Since the November budget workshop, some minor changes have been made to the budgets to
include employee changes to the City's health and dental plans through open enrollment along with
the 30% reduction in Workers Compensation premiums.
In total, these funds will transfer $920,000 of excess profits into the General fund.
Without these transfers, the City tax levy would need to increase by an additional 9.3%
and the median home value would pay an additional $139 in city taxes for 2026.
Detailed budgets for each fund can be found after the attached resolutions. Enterprise funds are
governmental operations that are financed and operated in a manner similar to private business. One
major reporting difference from Governmental funds is that each fund's capital assets are depreciated
over their useful lives. The depreciation expense on the P&L typically results in a net loss but it's
important to note that depreciation is a non -cash expense and does not affect the fund's cash flow.
BOARD ACTION REQUESTED:
Approve each Budget as presented, in resolutions #15952 through #15957.
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
CITY OF HUTCHINSON
RESOLUTION NO. 15952
ADOPTING 2026 LIQUOR FUND BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Liquor Fund Budget for the City of Hutchinson for the fiscal
year 2026, which has been submitted by the City Administrator and approved by the
City Council is hereby adopted. The total of said budget and major division thereof
being as follows:
REVENUES
Liquor Sales
Beer Sales
Wine Sales
THC Sales
Miscellaneous Sales
Other Revenues
TOTAL REVENUES
EXPENSES
Cost of Sales
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation Expense
Capital Outlay
Transfers -Out
TOTALEXPENSES
NET REVENUE / (LOSS)
Adopted by the City Council this 23rd day of December 2025.
ATTESTED:
Matt Jaunich
City Administrator
$ 2,989,300
3,258,500
950,600
212,800
207,700
10,500
$ 7,629,400
$ 5,673,000
979,118
27,500
302,310
6,500
60,000
30,000
550,000
$ 7,628,428
$ 972
Gary T. Forcier
Mayor
REVENUES:
Sales - Liquor
Sales - Beer
Sales - Wine
Sales - THC Products
Sales - Other
Total Sales
Other Revenues
TOTAL REVENUES
Gross Margin %
EXPENDITURES:
Cost of Sales
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation Expense
Capital Outlay
Transfers -Out
Liquor Fund
Summary Budget
Approved Proposed
Actual Budget Budget
2024 2025 2026
2025 / 2026 Change
Amount %
2,959,072
3,017,000
2,989,300
(27,700)
-0.9%
3,427,029
3,492,000
3,258,500
(233,500)
-6.7%
995,877
1,038,000
950,600
(87,400)
-8.4%
151,751
150,000
212,800
62,800
41.9%
195,971
202,000
207,700
5,700
2.8%
7,729,700
13,040
7,899,000
10,500
7,618,900
10,500
(280,100)
-
-3.5%
0.0%
7,742,740
7,909,500
7,629,400
(280,100)
-3.5%
25.4%
24.3%
25.5%
5,763,846
5,983,000
5,673,000
(310,000)
-5.2%
959,458
936,298
979,118
42,820
4.6%
27,986
25,500
27,500
2,000
7.8%
266,475
312,270
302,310
(9,960)
-3.2%
5,885
6,500
6,500
-
0.0%
60,044
58,000
60,000
2,000
3.4%
-
45,000
30,000
(15,000)
-33.3%
550,000
550,000
550,000
-
0.0%
TOTAL EXPENDITURES 7,633,695 7,916,568 7,628,428 (288,140) -3.6%
NET REVENUE / (LOSS) 109,045 (7,068) 972 8,040
RECONCILIATION TO CASH:
Net Revenue
Add: Depreciation (non -cash item)
Net Change in Cash for Year
Add: Capital Outlay
Add: Transfers -Out
Cash Provided by Operations
Estimated Cash Balance
Operating Cash Balance
Building Maintenance Cash Balance
972
60,000
60,972
30,000
550,000
640,972
708,625 769,597
300,000 300,000
408,625 469,597
CITY OF HUTCHINSON
RESOLUTION NO. 15953
ADOPTING 2026 WATER BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Water Fund Budget for the City of Hutchinson for the fiscal
year 2026, which has been submitted by the City Administrator and approved by the
City Council is hereby adopted. The total of said budget and major division thereof
being as follows:
REVENUES
Water Revenues $ 2,576,500
Local Sales Tax Revenue 481,000
Charges for Services 100,000
Other Revenue 152,500
TOTAL REVENUES $ 3,310,000
EXPENSES
Wages & Benefits $ 710,621
Supplies 253,900
Services & Charges 575,684
Miscellaneous Expenses 14,500
Depreciation 1,250,000
Debt Service 305,495
Capital Outlay 862,000
Transfers -Out 210,000
TOTAL EXPENSES $ 4,182,200
NET REVENUE / (LOSS) $ (872,200)
Adopted by the City Council this 23rd day of December 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
REVENUES:
Local Sales Tax
Water Sales
Charges for Services
Miscellaneous Revenue
Fund Balance
TOTAL REVENUES
EXPENDITURES:
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation
Debt Service
Capital Outlay
Transfers -Out
TOTAL EXPENDITURES
Water Fund
Summary Budget
Actual
2024
Approved
Budget
2025
Proposed
Budget
2026
2025/2026 Change
Amount %
1,109,172
990,000
481,000
(509,000)
-51.4%
2,425,073
2,601,000
2,576,500
(24,500)
-0.9%
91,673
100,000
100,000
-
0.0%
225,073
162,500
152,500
(10,000)
-6.2%
813,262
-
-
-
0.0%
4,664,254
3,853,500
3,310,000
(543,500)
-14.1%
677,204
702,663
710,621
7,958
1.1 %
234,649
253,900
253,900
-
0.0%
654,955
556,490
575,684
19,194
3.4%
15,936
15,500
14,500
(1,000)
-6.5%
1,124,286
1,120,000
1,250,000
130,000
11.6%
83,528
1,150,228
305,495
(844,733)
-73.4%
-
1,388,812
862,000
(526,812)
-37.9%
331,948
90,000
210,000
120,000
133.3%
3,122,506 5,277,593 4,182,200 (1,095,393) -20.8%
NET REVENUES 1,541,748 (1,424,093) (872,200) 551,893
RECONCILIATION TO CASH:
Net Revenue
Add: Depreciation (non -cash item)
Net Change in Cash for Year
Add: Capital Outlay
Add: Transfers -Out
Cash Provided by Operations
(872,200)
1,250,000
377,800
862,000
210,000
1,449,800
Estimated Cash Balance 4,362,968 4,740,768
CITY OF HUTCHINSON
RESOLUTION NO. 15954
ADOPTING 2026 WASTEWATER BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Wastewater Fund Budget for the City of Hutchinson for the
fiscal year 2026, which has been submitted by the City Administrator and approved
by the City Council is hereby adopted. The total of said budget and major division
thereof being as follows:
REVENUES
Sewer Revenues
Local Option Sales Tax Revenue
Licenses & Permits
Charges for Services
Other Revenue
TOTAL REVENUES
EXPENSES
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation
Debt Service
Capital Outlay
Transfers -Out
TOTALEXPENSES
NET REVENUE / (LOSS)
Adopted by the City Council this 23rd day of December 2025.
ATTESTED:
Matthew Jaunich
City Administrator
$ 4,056,800
1,443,000
6,000
5,000
3,151,000
$ 8,661,800
$ 955,808
274,500
896,286
29,000
1,360,000
1,435,236
4,731,366
235,000
$ 9,917,196
$ (1,255,396)
Gary T. Forcier
Mayor
Wastewater Fund
Summary Budget
Approved
Proposed
Actual
Budget
Budget
2025/2026 Change
2024
2025
2026
Amount
%
REVENUES:
Local Sales Tax
854,064
990,000
1,443,000
453,000
45.8%
Sewer Sales
4,011,905
3,896,800
4,056,800
160,000
4.1 %
Licenses & Permits
5,600
6,000
6,000
-
0.0%
Charges for Services
11,593
5,000
5,000
-
0.0%
Miscellaneous Revenue
835,838
226,000
3,151,000
2,925,000
1294.2%
Fund Balance
309,150
-
-
-
0.0%
TOTAL REVENUES
6,028,151
5,123,800
8,661,800
3,538,000
69.1%
EXPENDITURES:
Wages & Benefits
810,445
990,321
955,808
(34,513)
-3.5%
Supplies
240,012
289,400
274,500
(14,900)
-5.1 %
Services & Charges
1,175,793
895,390
896,286
896
0.1 %
Miscellaneous Expenses
23,947
33,000
29,000
(4,000)
-12.1 %
Depreciation
1,174,021
1,200,000
1,360,000
160,000
13.3%
Debt Service
168,917
1,614,347
1,435,236
(179,111)
-11.1 %
Capital Outlay
-
3,721,629
4,731,366
1,009,737
27.1 %
Transfers -Out
400,455
110,000
235,000
125,000
113.6%
TOTAL EXPENDITURES
3,993,589
8,854,087
9,917,196
1,063,109
12.0%
NET REVENUES
2.034.561
(3.730.287)
(1.255.396)
2.474.891
RECONCILIATION TO CASH:
Net Revenue
Add: Depreciation (non -cash item)
Net Change in Cash for Year
Add: Capital Outlay (net of bond proceeds)
Add: Transfers -Out
Cash Provided by Operations
(1,255,396)
1,360,000
104,604
1,923,366
235,000
2,262,970
Estimated Cash Balance 7,257,143 7,361,747
CITY OF HUTCHINSON
RESOLUTION NO. 15955
ADOPTING 2026 STORM WATER UTILITY BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Storm Water Utility Budget for the City of Hutchinson for the fiscal
year 2026, which has been submitted by the City Administrator and approved by the
City Council is hereby adopted. The total of said budget and major division thereof
being as follows:
REVENUES
Storm Water Revenues $1,286,800
Licenses & Permits 6,000
Intergovernmental Revenue 25,000
Other Revenue 36,000
Transfer -In 0
TOTAL REVENUES $1,353,800
EXPENSES
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation
Debt Service
Capital Outlay
Transfers -Out
TOTALEXPENSES
NET REVENUE / (LOSS)
Adopted by the City Council this 23rd day of December 2025.
ATTESTED:
Matthew Jaunich
City Administrator
$ 295,309
45,500
230,043
8,750
300,000
184,705
570,517
$1,634,824
$ (281,024)
Gary T. Forcier
Mayor
REVENUES:
Storm Water Sales
Licenses & Permits
Intergovernmental Revenue
Miscellaneous Revenue
Transfers -In
Fund Balance
TOTAL REVENUES
EXPENDITURES:
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Depreciation
Debt Service
Capital Outlay
Transfers -Out
TOTAL EXPENDITURES
NET REVENUES
RECONCILIATION TO CASH:
Storm Water Fund
Summary Budget
Actual
2024
Approved
Budget
2025
Proposed
Budget
2026
2025/2026 Change
Amount %
1,110,237
1,192,000
1,286,800
94,800
8.0%
4,740
6,000
6,000
-
0.0%
59,120
-
25,000
25,000
0.0%
58,278
26,800
36,000
9,200
34.3%
-
50,000
-
(50,000)
-100.0%
502,730
-
-
-
0.0%
1,735,106
1,274,800
1,353,800
79,000
6.2%
289,117
313,368
295,309
(18,059)
-5.8%
33,244
48,350
45,500
(2,850)
-5.9%
229,843
256,020
230,043
(25,977)
-10.1 %
4,725
6,000
8,750
2,750
45.8%
270,486
255,000
300,000
45,000
17.6%
29,921
186,180
184,705
(1,475)
-0.8%
-
558,818
570,517
11,699
2.1 %
186,879
-
-
-
0.0%
1,044,215
1,623,736
1,634,824
11,088
0.7%
690,890 (348,936) (281,024) 67,912
Net Revenue
Add: Depreciation (non -cash item)
Net Change in Cash for Year
Add: Capital Outlay
Wash Provided by Operations
(281,024)
300,000
18,976
570,517
589,493
Estimated Cash Balance 1,093,987 1,112,963
CITY OF HUTCHINSON
RESOLUTION NO. 15956
ADOPTING 2026 REFUSE FUND BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Refuse Fund Budget for the City of Hutchinson for the fiscal
year 2026, which has been submitted by the City Administrator and approved by the
City Council is hereby adopted. The total of said budget and major division thereof
being as follows:
REVENUES
Refuse Services $ 1,608,200
Intergovernmental Revenue -
Other Revenue 30,000
TOTAL REVENUES $ 1,638,200
EXPENSES
Wages & Benefits $ 387,422
Supplies 42,650
Services & Charges 1,051,841
Miscellaneous Expenses 2,500
Depreciation 235,000
Capital Outlay 80,000
Debt Service -
Transfer -Out: Tree Disease Infestation & Mitigation funding 55,000
TOTAL EXPENSES $ 1,854,413
NET REVENUE / (LOSS) $ (216,213)
Adopted by the City Council this 23rd day of December 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
Summary Budget
Refuse Fund
Approved
Proposed
Actual
Budget
Budget
2025/2026 Change
2024
2025
2026
Amount
%
REVENUES:
Refuse Sales
1,438,864
1,507,700
1,608,200
100,500
6.7%
Intergovernmental Revenue
155,991
4,500
-
(4,500)
-100.0%
Miscellaneous Revenues
63,064
50,000
30,000
(20,000)
-40.0%
TOTAL REVENUES
1,657,918
1,562,200
1,638,200
76,000
4.9%
EXPENDITURES:
Wages & Benefits
343,880
349,221
387,422
38,201
10.9%
Supplies
45,465
45,000
42,650
(2,350)
-5.2%
Services & Charges
965,188
1,032,135
1,051,841
19,706
1.9%
Miscellaneous Expenses
2,408
2,500
2,500
-
0.0%
Depreciation
208,316
172,000
235,000
63,000
36.6%
Capital Outlay
-
35,000
80,000
45,000
128.6%
Transfers -Out
55,000
105,000
55,000
(50,000)
-47.6%
TOTAL EXPENDITURES
1,620,258
1,740,856
1,854,413
113,557
6.5%
NET REVENUE 37,660 (178,656) (216,213) (37,557)
RECONCILIATION TO CASH:
Net Revenue
(216,213)
Add: Depreciation (non -cash item)
235,000
Net Change in Cash for Year
18,787
Add: Capital Outlay
80,000
Add: Transfers -Out
55,000
Cash Provided by Operations
153,787
Estimated Cash Balance
764,381 783,168
CITY OF HUTCHINSON
RESOLUTION NO. 15957
ADOPTING 2026 COMPOST FUND BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT the annual Compost Fund Budget for the City of Hutchinson for the fiscal
year 2026, which has been submitted by the City Administrator and approved by the
City Council is hereby adopted. The total of said budget and major division thereof
being as follows:
REVENUES
Sales $ 2,743,000
Other Charges & Fees 115,400
Other Revenue 82,000
TOTAL REVENUES $ 2,940,400
EXPENSES
Cost of Goods Sold
$ 1,783,250
Inventory Adjustment
(743,000)
Wages & Benefits
929,331
Supplies
127,750
Services & Charges
290,395
Miscellaneous Expenses
13,100
Depreciation
295,000
Capital Outlay
350,000
Transfers -Out
125,000
TOTAL EXPENSES
$ 3,170,826
NET REVENUE / (LOSS)
$ (230,426)
Adopted by the City Council this 23rd day of December 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
Summary Budget
Compost Fund
Approved
Proposed
Actual
Budget
Budget
2025/2026 Change
2024
2025
2026
Amount
%
REVENUES:
Sales - Bagged Product
1,976,907
2,042,750
2,197,500
154,750
7.6%
Sales - Bulk Product
404,658
169,000
390,500
221,500
131.1 %
Sales - Other
150,082
160,750
155,000
(5,750)
-3.6%
Total Sales
2,531,647
2,372,500
2,743,000
370,500
15.6%
Charges for Services
119,335
107,000
115,400
8,400
7.9%
Miscellaneous Revenue
106,172
72,000
82,000
10,000
13.9%
TOTAL REVENUES
2,757,154
2,551,500
2,940,400
388,900
15.2%
EXPENDITURES:
Cost of Goods Sold
1,698,052
1,591,200
1,783,250
192,050
12.1 %
Inventory Adjustment
(595,147)
(703,250)
(743,000)
(39,750)
5.7%
Wages & Benefits
806,983
897,840
929,331
31,491
3.5%
Supplies
105,963
126,850
127,750
900
0.7%
Services & Charges
348,217
308,390
290,395
(17,995)
-5.8%
Miscellaneous Expenses
11,816
13,500
13,100
(400)
-3.0%
Depreciation
285,480
290,000
295,000
5,000
1.7%
Debt Service
-
73,808
-
(73,808)
-100.0%
Capital Outlay
2,836
305,000
350,000
45,000
14.8%
Transfers -Out
120,000
120,000
125,000
5,000
4.2%
TOTAL EXPENDITURES
2,784,200
3,023,338
3,170,826
147,488
4.9%
NET REVENUE (27,046) (471,838) (230,426) 241,412
RECONCILIATION TO CASH:
Net Revenue
Add: Depreciation (non -cash item)
Add: Cost of Goods Markup adjustment
Net Change in Cash for Year w
Add: Capital Outlay
Add: Transfers -Out
Cash Provided byOperation
(230,426)
295,000
74,300
138,874
350,000
125,000
613,874
Estimated Cash Balance 2,573,022 2,711,896
N
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A UTY ON PLFRPOSE.
Resolution 15958 Approving the 2026 General Fund Budget
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The attached budget and general fund tax levy has been reduced by $57,224 from what Matt Jaunich presented at the
December 4th Truth in Taxation public meeting. An adjustment was made based on two recently announced retirements
within the Police department. Additionally, we just received our 2026 workers compensation rates and they were reduced
nearly 30% on average as opposed to the 25% that we were expecting.
Some main points related to the budget are as follows:
1. A 7.8% tax levy increase is required to balance the proposed revenues and expenditures
- Down from a 11.3% Preliminary tax levy increase in September
2. Charges for Services increased $197,258 as we try to bring user fees more in line with the service costs
3. Enterprise Fund transfers increased $50,000 (Water $20K, Sewer $25K, Compost $5K)
4. Wages & Benefits increased 5.9%, or $614,639
- Health premiums increased 14%
- New IT, Engineering and Recreation/Waterpark positions added to the budget (see attached)
- New MN Paid Family Medical Leave added $30,500 to the budget (50% of cost)
- Workers Compensation rates decreased 30%, reducing the budget by $72,000
5. Supplies increased $50,000 mainly due to Recreation/Waterpark equipment needed to be replaced
6. Services & Charges increased $147,604 mainly due to critical maintenance/repairs needed at the Ice Arena,
Recreation Building and Waterpark
7. Transfers -Out increased $28,616 mainly due to a $25,000 increase to our Fleet Replacement funding
Also attached, please find the following:
1. Summary of Wage & Benefits increases, including proposed new positions included within the budget
2. Current 2026 tax levy compared to the September preliminary levy.
3. Tax levy impact analysis on the median home value.
4. General Fund 5-Year Forecast
5. Detailed Financial Statement for the General fund.
BOARD ACTION REQUESTED:
Consider and approve the 2026 General fund budget
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
CITY OF HUTCHINSON
RESOLUTION NO. 15958
ADOPTING THE GENERAL FUND BUDGET FOR FISCAL YEAR 2026
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA:
THAT the annual General Fund budget of the City of Hutchinson for fiscal year 2026
which has been submitted by the City Administrator and approved by the City Council is
hereby Adopted; the total of said budget and the major division thereof being as follows:
GENERALFUND
CURRENT REVENUES
Taxes
$ 7,263,682
Other Taxes
320,000
Licenses & Permits
457,850
Intergovernmental Revenue
2,165,423
Charges for Services
3,013,675
Fines & Forfeitures
55,000
Miscellaneous Revenues
410,400
Transfers -In
2,862,628
TOTAL REVENUES
$ 16,548,658
APPROPRIATIONS
Wages & Benefits $ 11,157,239
Supplies 1,268,850
Services & Charges 3,170,436
Miscellaneous Expenses 377,975
Transfers -Out 574,158
Capital Outlay -
TOTAL EXPENSES $ 16,548,658
NET REVENUE / (LOSS) $ -
Adopted by the City Council this 23rd day of December 2025.
ATTESTED:
Matthew Jaunich
City Administrator
Gary T. Forcier
Mayor
REVENUES:
Taxes
Other Taxes
Licenses & Permits
Intergovernmental Revenue
Charges for Services
Fines & Forfeitures
Miscellaneous Revenues
Transfers -In
TOTAL REVENUES
EXPENDITURES:
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Transfers -Out
Capital Outlay
TOTAL EXPENDITURES
General Fund
Summary Budget
Actual
2024
Approved
Budget
2025
Proposed
Budget
2026
2025 / 2026 Change
Amount %
6,349,940
6,741,034
7,263,682
522,648
7.8%
309,422
320,000
320,000
-
0.0%
419,628
415,725
457,850
42,125
10.1%
2,162,020
2,166,525
2,165,423
(1,102)
-0.1%
2,601,157
2,816,417
3,013,675
197,258
7.0%
50,809
55,000
55,000
-
0.0%
632,663
382,400
410,400
28,000
7.3%
2,812,628
2,812,628
2,862,628
50,000
1.8%
15,338,266
15,709,729
16,548,658
838,929
5.3%
10,044,590
10,542,600
11,157,239
614,639
5.8%
1,054,296
1,218,850
1,268,850
50,000
4.1 %
3,042,430
3,022,832
3,170,436
147,604
4.9%
362,360
379,905
377,975
(1,930)
-0.5%
517,031
545,542
574,158
28,616
5.2%
4,000
-
-
-
0.0%
15,024,708 15,709,729 16,548,658 838,929 5.3%
NET REVENUES 313,559 - - -
2026 Budgeted Wages & Benefits
NEW POSITIONS:
Position
Budgeted
Fund
Estimated
Start Date
%
Allocation
Budgeted
Cost
IT Technician
General
3/1 /2026
100%
$90,289
Engineering Technician
General
1/1/2026
40%
$39,450
Water
10%
$9,862
Wastewater
10%
$9,862
Storm Water
40%
$39,450
Aquatics & Recreation Programmer
General
2025
100%
$86,150
Campground Seasonal Host
General
June 2026
100%
$8,376
TOTAL GENERAL FUND IMPACT
Other Budaetary Impacts
$224,265
Employee Performance Reviews 4.5% increase on average $300,545
Health Insurance premiums 14% increase $139,258
Workers Comp premiums 25% reduction-$72,129
Pay Grid Inflationary increase of 3% $6,837
MN Paid Family Medical Leave State mandate; City paying 50% $30,501
Police Dept Adjustments due to 3 retirements-$54,697
Election Judges Temporary employees $25,000
Other adjustments $15,059
2026 Budgetary Increase to Wages & Benefits $614,639
PRELIMINARY LEVIES FOR 2026
2025
2026
Change
% Chg
General Fund
6,704,034
7,463,195
$759,161
11.3%
Tax Abatement
25,000
25,000
-
0.0%
Total General Fund
6,729,034
7,488,195
759,161
11.3%
Debt Funds
2,547,379
2,645,746
98,367
3.9%
Total City Tax Levy
$9,276,413
$10,133,941
$857,528
9.2%
EDA Levy
281,771
286,437
4,666 1.7%
H RA Levy
170,000
173,000
3,000 1.8%
TOTAL TAX IMPACT
$9,728,184
$10,593,378
$865,194 8.9%
PROPOSED FINAL LEVY SCENARIOS FOR 2026
Change from Prelim
2025
2026
Change
% Chg
Amount
%
General Fund
$6,704,034
7,226,682
$522,648
7.8%
($236,513)
-3.5%
Tax Abatement
25,000
25,000
-
0.0%
-
0.0%
Total General Fund
6,729,034
7,251,682
522,648
7.8%
(236,513)
-3.5%
Debt Funds
2,547,379
2,610,792
63,413
2.5%
(34,954)
-1.4%
Total City Tax Levy
$9,276,413
$9,862,474
$586,061
6.3%
($271,467)
-2.9%
EDA Levy
281,771
286,437
4,666 1.7% - 0.0%
HRA Levy
170,000
173,000
3,000 1.8% - 0.0%
TOTAL TAX IMPACT
$9,728,184
$10,321,911
$593,727 6.1% ($271,467) -2.8%
PROPOSED TAX IMPACT
2026 Tax Levy Options
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
General Fund levy:
5.8%
0.0%
2.8%
3.1%
7.8%
11.3%
Debt levy:
2.8%
0.0%
2.5%
2.5%
2.5%
3.9%
TAX CAPACITY
$16,410,588
$16,855,714
$16,855,714
$16,855,714
$16,855,714
$16,856,896
% Change
2.7%
2.7%
2.7%
2.7%
2.7%
Tax Levy - General Fund
$6,729,034
$6,729,034
$6,917,237
$6,934,637
$7,251,682
$7,488,195
Tax Levy - Debt Service
2,547,379
2,547,379
2,610,792
2,610,792
2,610,792
2,645,746
TOTAL LEVY
$9,276,413
$9,276,413
$9,528,029
$9,545,429
$9,862,474
$10,133,941
Total Levy % Increase over 2025
0.0%
2.7%
2.9%
6.3%
9.2%
Tax Rate
56.527%
55.034%
56.527%
56.630%
58.511%
60.117%
Change in Tax Rate
-1.493%
0.000%
0.103%
1.984%
3.590%
Budget Cuts for Levy Scenario
-$586,061
-$334,445
-$317,045
NIA
NIA
% of General Fund Expenses
3.5%
2.0%
1.9%
City Tax Impact to Median Home Value
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
Median Home Value
$275,000
$275,000
$275,000
$275,000
$275,000
$275,000
Homestead Exclusion
-21,800
-21,800
-21,800
-21,800
-21,800
-21,800
Net Taxable Value
$253,200
$253,200
$253,200
$253,200
$253,200
$253,200
Estimated City Tax
$1,430
$1,393
$1,430
$1,434
$1,482
$1,522
Change from 2025
-$37
$0
$4
$52
$92
% Change
-2.6%
0.0%
0.3%
3.6%
6.4%
General Fund - Five Year Forecast
Budget
Inflation
Forecast
Forecast
Forecast
Forecast
Forecast
2026
Factor
2027
2028
2029
2030
2031
REVENUES:
Taxes
$ 7,263,682
$ 7,693,723
$ 8,259,405
$ 8,783,219
$ 9,404,092
$ 9,958,388
Other Taxes
320,000
0.4%
321,300
322,613
323,939
325,278
326,631
Licenses & Permits
457,850
0.0%
457,850
457,850
457,850
457,850
457,850
Intergovernmental Revenue
2,165,423
0.4%
2,175,088
2,184,946
2,195,001
2,205,257
2,215,718
Charges for Services
3,013,675
1.1%
3,047,503
3,118,573
3,191,983
3,267,831
3,346,211
Fines & Forfeitures
55,000
0.0%
55,000
55,000
55,000
55,000
55,000
Miscellaneous Revenues
410,400
1.0%
414,676
419,038
423,486
428,024
432,652
Transfers -In
2,862,628
2.0%
2,919,981
2,979,037
3,039,856
3,102,503
3,167,045
TOTAL REVENUES
$16,548,658
3.2%
$ 17,085,121
$ 17,796,462
$ 18,470,334
$ 19,245,835
$ 19,959,495
EXPENDITURES
Wages & Benefits
$ 11,157,239
4.6%
$ 11,669,893
$ 12,246,560
$ 12,798,750
$ 13,433,629
$ 14,044,739
Supplies
1,268,850
1.4%
1,286,258
1,319,710
1,341,516
1,376,300
1,399,219
Services & Charges
3,170,436
-0.7%
3,147,187
3,216,443
3,286,226
3,359,851
3,434,138
Miscellaneous Expenses
377,975
0.9%
381,383
387,095
390,921
396,855
400,907
Transfers -Out
574,158
4.6%
600,400
626,654
652,921
679,200
680,492
TOTAL EXPENDITURES
$16,548,658
3.2%
$ 17,085,121
$ 17,796,462
$ 18y470y334
$ 19,245,835
$ 19,959,495
NET REVENUES
$ -
$ -
$ -
$ -
$ -
$ -
Prior Year Tax Levy 6,729,034 7,251,682 7,693,723 8,259,405 8,783,219 9,404,092
Levy Increase to Balance Budget 522,648 442,041 565,682 523,814 620,873 554,296
Estimated Tax Levy % Increase 7.8% 6.1% 7.4% 6.3% 7.1% 5.9%
ncrease in Wages & Benefits 614,639 512,654 576,667 552,190 634,879 611,110
1% Tax Levy Increase 67,290 72,500 76,900 82,600 87,800 94,000
Tax Levy to Fund increase 9.1 % 7.1 % 7.5% 6.7% 7.2% 6.5%
Estimated Prior Year Fund Balance
8,939,018
9,270,018
9,611,718
9,967,618
10,337,018
10,721,918
Estimated Annual Surplus (2%)
331,000 2.00%
341,700
355,900
369,400
384,900
399,200
Estimated Fund Balance
9,270,018
9,611,718
9,967,618
10,337,018
10,721,918
11,121,118
Fund Balance %
54.3%
54.0%
54.0%
53.7%
53.7%
53.1%
City Policy: 40 % Working Capital
6,834,048
7,118, 585
7,388,134
7,698,334
7,983,798
8,382,988
Public Emergencies/Levy 10%
1,708,512
1,779,646
1,847,033
1,924,584
1,995,950
2,095,747
Excess Over 50% Minimum
727,458
713,487
732,451
714,101
742,171
642,383
REVENUES:
Current Ad Valorem Taxes
Delinquent Ad Valorem Taxes
Total Taxes
Hotel -Motel Tax
Cable TV Franchise Fees
Total Other Taxes
Alcoholic Beverages
Tobacco
Cannabis
Building Permits
Building Permit Surcharges
Plumbing Permits
Demolition Permits
Planning & Zoning Fees
Tree Applications/Permits
Animal Licenses
Other Licences & Permits
Total Licenses & Permits
Federal Grants
Local Government Aid
Homestead Credit Aid
Police Training Reimbursement
Municipal State Aid- Streets
Police Pension Aid
Drug Task Force Grant
DARE Aid
Fire Relief Assoc Aid - State
Airport Aid
State Grants - Other
Other Local Govt Grants & Aid
Total Intergovernmental Revenue
Rentals -City Hall Bldg
Motor Vehicle Fees
Drivers License Fees
Passport Photos
DNR Fish & Game
Assessment Searches
Other Revenues
School Liaison Program
Hospital Security Program
Public Safety Reimbursement
Police Accident Reports
Police Paper Service
Fire Dept Country Acct
Rental Inspection Fees
Other Revenues
Engineering Fees
Project Admin Fees
Other Fees
Other Revenues
Recreation Activity Fees
Civic Arena -Fees & Rents
Admission Fees
Park Fees
Campground Fees
Contract Lease Revenue
Rentals -Building
Rentals-Bikes/Boats
Rentals -Other
Parks & Recreation Concessions
Sr Center -Trip Revenue
Sr Center Activities
Sr Center -Instructions
Community Education Reimburse
Other Revenues
Admission Fees - Waterpark
Season Passes - Waterpark
Special Events/Rentals - Waterpark
Concessions - Waterpark
Cash Over/(Short)
Rentals -Hangars & Shop
Leased Airport Hangar Lot
Rentals -Other
Fuel Sales -Airport
Cemetery Fees
Burial Plot Buybacks
Other Revenues
Total Charges for Services
Court Fines
Total Fines & Forfeitures
Detailed Budget
General Fund
Actual Actual Actual Budget Budget
2022 2023 2024 2024 2025
2026 BUDGET Chg from 2025 12026 Change
ninary Budaet Preliminary Amount %
5,527,849
5,756,182
6,282,301
6,358,436
6,729,034
7,488,195
7,251,682
(236,513)
72,491
106,571
67,639
12,000
12,000
12,000
12,000
5,600,340
5,862,753
6,349,940
6,370,436
6,741,034
7,500,195
7,263,682
(236,513)
134,051
131,873
128,700
130,000
130,000
130,000
130,000
-
207,620
192,702
180,721
200,000
190,000
190,000
190,000
341,670
324,575
309,422
330,000
320,000
320,000
320,000
-
32,892
33,700
36,400
31,000
32,700
34,775
37,500
2,725
2,975
3,325
3,150
3,000
2,975
3,150
3,150
-
-
-
-
-
-
1,000
1,000
-
412,295
279,002
339,079
316,000
341,000
343,000
373,000
30,000
892
411
1,403
500
500
900
900
-
10,546
22,588
15,043
15,000
15,000
15,000
15,000
-
2,185
1,555
500
1,500
1,000
1,000
1,000
-
9,039
11,529
8,639
8,000
9,000
9,000
9,000
-
1,200
3,600
1,200
5,000
1,200
1,200
1,200
-
490
370
250
600
600
600
600
-
20,851
10,760
13,965
11,500
11,750
13,500
15,500
2,000
493,365
366,841
419,628
392,100
415,725
423,125
457,850
34,725
1,868
3,586
828
1,500
11,500
2,000
2,000
-
1,334,205
1,349,130
1,548,963
1,548,963
1,551,734
1,556,030
1,556,030
-
181
1,442
888
-
-
-
-
-
24,356
24,245
23,314
20,500
20,500
20,500
20,500
-
29,280
29,280
36,660
29,280
81,626
64,976
64,976
-
230,378
246,827
290,072
246,826
290,072
290,072
292,183
2,111
220
-
-
-
-
-
-
-
-
1,768
9,964
-
-
-
-
-
127,954
142,926
162,393
142,925
162,393
162,393
191,034
28,641
20,446
27,445
31,295
26,200
26,200
26,200
26,200
-
14,514
66,849
48,445
12,000
22,500
12,500
12,500
-
12,326
9,199
1,795,728
1,893,496
2,162,020
2,028,194
2,166,525
2,134,671
2,165,423
30,752
2,200
2,200
2,200
2,200
2,200
2,200
2,200
-
209,423
216,470
266,005
230,000
250,000
270,000
270,000
-
59,807
73,173
100,718
80,000
95,000
100,000
100,000
-
2,263
1,361
1,190
2,500
2,500
2,500
2,500
-
18,617
13,643
13,113
17,500
15,000
13,000
13,000
-
12,230
10,493
9,315
12,500
12,500
12,500
12,500
-
208,876
186,353
211,577
194,340
205,150
247,094
257,094
10,000
52,434
48,243
55,966
57,500
57,500
75,527
75,527
-
321,622
328,805
-
-
-
-
-
-
14,677
7,776
5,525
9,000
9,000
9,000
9,000
-
268
678
84
400
400
400
400
-
450
736
210
300
300
300
300
-
13,779
12,858
12,548
16,734
16,212
15,278
14,875
(403)
12,150
53,305
53,785
51,000
51,000
53,000
55,000
2,000
3,327
6,341
12,184
8,000
8,000
8,000
8,000
-
365,000
364,441
330,521
394,281
461,617
482,566
479,836
(2,730)
73,971
78,095
66,105
85,000
85,000
85,000
85,000
-
9,769
9,080
15,878
14,900
14,900
14,900
15,820
920
-
-
791
-
-
-
-
-
176,296
191,784
161,827
207,500
207,500
210,000
215,000
5,000
318,908
359,021
356,181
320,000
360,000
380,000
380,000
-
-
11,871
-
-
-
-
-
-
33,584
29,936
31,212
30,000
30,000
30,000
40,000
10,000
72,601
77,736
74,795
75,000
75,000
80,000
83,500
3,500
6,591
6,600
6,600
6,600
6,600
6,600
6,600
-
107,305
82,181
85,393
69,000
79,000
89,000
89,000
-
782
685
610
500
500
-
-
-
-
200
100
-
-
-
-
-
27,995
27,702
16,198
30,000
30,000
30,000
30,000
-
31,786
33,312
35,771
38,000
35,000
35,000
35,000
-
1,190
1,215
1,100
2,500
2,500
2,500
2,500
-
3,894
5,088
4,726
5,000
5,000
5,000
5,000
-
64,174
66,506
71,839
69,987
74,888
75,423
75,423
-
857
1,524
762
750
1,000
1,000
1,000
-
159,829
138,485
124,061
140,000
140,000
140,000
145,000
5,000
88,205
94,586
83,646
95,000
95,000
95,000
95,000
-
12,765
12,808
20,881
13,000
13,000
20,000
20,000
-
68,285
65,052
64,693
65,000
65,000
65,000
65,000
-
(158)
(2)
102
-
-
-
-
-
61,695
64,629
72,605
75,000
75,000
75,000
80,000
5,000
-
4,021
2,662
-
-
3,000
3,000
-
22,305
22,305
22,305
22,000
22,000
22,000
28,450
6,450
3,019
2,063
108,257
3,000
110,000
110,000
110,000
-
128,812
114,340
96,865
105,000
105,000
105,000
105,000
-
(2,670)
-
-
(2,100)
(2,100)
(2,100)
(2,100)
-
2,769,184 2,828,196 2,601,157 2,547, 142 2,816,417 2,968,938 3,013,675 44,737
52,902 52,141 50,809 55,000 55,000 55,000 55,000
52,902 52,141 50,809 55,000 55,000 55,000 55,000 -
522,648 7.8%
0.0%
522,648 7.8%
- 0.0%
- 0.0%
- 0.0%
4,800 14.7%
175 5.9%
1,000 0.0%
32,000 9.4 %
400 80.0 %
- 0.0%
0.0%
0.0%
0.0%
0.0%
3,750 31.9%
42,125 10.1%
(9,500) -82.6%
4,296 0.3 %
- 0.0%
- 0.0%
(16,650) -20.4%
2,111 0.7%
- 0.0%
- 0.0%
28,641 17.6%
- 0.0%
(10,000) -44.4%
0.0%
(1,102) -0.1%
- 0.0%
20,000 8.0 %
5,000 5.3%
- 0.0%
(2,000) -13.3%
- 0.0%
51,944 25.3%
18,027 31.4%
- 0.0%
0.0%
0.0%
0.0%
(1,337) -8.2%
4,000 7.8%
- 0.0%
18,219 3.9%
- 0.0%
920 6.2 %
- 0.0%
7,500 3.6%
20,000 5.6 %
- 0.0%
10,000 33.3%
8,500 11.3%
- 0.0%
10,000 12.7%
(500) -100.0 %
- 0.0%
0.0%
0.0%
0.0%
0.0%
535 0.7 %
- 0.0%
5,000 3.6%
- 0.0%
7,000 53.8%
- 0.0%
- 0.0%
5,000 6.7%
3,000 0.0%
6,450 29.3 %
- 0.0%
0.0%
0.0%
0.0%
197,258 7.0%
0.0%
0.0%
Interest Earnings
Net Incr/Decr in FV of Invest
Refunds & Reimbursements
Contrib/Do nation-PrivateSo urce
Sponsorships & Contributions
ATM Revenue
Vending Machine
Sale of General Fixed Assets
Total Miscellaneous Revenues
Transfer from Liquor Fund
Transfer from Water/Sewer Fund
Transfer from Compost Fund
Transfer from HUC
Other Transfer
Total Transfers -In
Total Fund Balance
TOTAL REVENUES
EXPENDITURES:
Full-time Employees -Regular
Part-time Employees -Regular
Temporary Employees -Regular
Vacation Pay
Holiday Pay
Sick Pay
Jury Duly Pay
Bereavement Leave
Pandemic Pay
Full-time Employees -Overtime
Part-time Employees -Overtime
Temporary Employees -Overtime
Premium Pay
Comp Time Paid
PERA - Coordinated
PERA - D.C.P.
PERA - Police
Fire Pension Contrib-Local
Fire Pension Contrib-State
FICA
Medicare
Worker's Comp Insur Premiums
Unemployment Benefit Payments
MN Paid Family Medical Leave
Health
HSA Contribution
Clothing Allowance
Admin Fees - HSA/Flex
Total Wages & Benefits
Office Supplies
Operating Supplies
Cleaning Supplies
Motor Fuels & Lubricants
Shop Supplies
Chemicals & Chemical Products
Concession Supplies
Uniforms & Personal Equip
Safety Supplies
Small Tools & Minor Equipment
Repair & Maintenance Supplies
Equipment Parts
Building Repair Supplies
Street Maintenance Materials
Sign Repair Materials
Tree & Landscaping Materials
Vandalism Supplies
Fuel for Resale
Total Supplies
Auditing Services
Other Professional Services
Phone Services
Postage
Credit Card Processing
Software & Licensing
Communication Maintenance
Police Body Cameras
Travel/Conference Expense
Meetings In House
Training Expenses
Advertising
Printing & Publishing
Training Site Expenses
Actual Actual Actual
2022 2023 2024
131,172
(184,470)
252,918
6,695
43,095
297
(91)
7,950
257,566
550,000
150,000
120,000
1,867,192
23,000
2,710,192
Detailed Budget
General Fund
Budget Budget
2024 2025
265,828
291,449
140,000
140,000
82,227
23,921
-
-
249,815
245,069
188,800
203,800
4,200
17,792
4,000
4,000
47,703
54,431
21,100
34,600
145
-
-
-
379
650,297
632,663
353,900
382,400
550,000
550,000
550,000
550,000
150,000
200,000
200,000
200,000
120,000
120,000
120,000
120,000
1,904,536
1,942,628
1,942,628
1,942,628
2,724,536 2,812,628 2,812,628 2,812,628
2026 BUDGET
Chg from
Prelimina
2025 / 2026 Change
elinninary Bud et
Amount %
140,000 140,000
-
- 0.0%
- -
0.0%
213,800 213,800
-
10,000 4.9%
4,000 4,000
-
- 0.0%
52,600 52,600
-
18,000 52.0%
- -
- 0.0%
0.0%
0.0%
410,400 410,400
-
28,000 7.3%
550,000 550,000
-
- 0.0%
245,000 245,000
-
45,000 22.5%
125,000 125,000
-
5,000 4.2%
1,942,628 1,942,628
-
- 0.0%
0.0%
2,862,628 2,862,628
-
50,000 1.8%
- - - - - I - . I - I - 0.0%
14,020,947 14,702,835 15,338,266 14,889,400 15,709,729 16,674,957 16,548,658 (126,299) 838,929 5.3%
4,781,256
369,565
642,926
398,868
247,585
209,379
427
17,836
65,237
5,682
16,616
14,051
91,348
310,457
1,084
359,860
66,275
127,954
279,154
93,460
269,969
55
1,007,996
110,371
5,195
2,880
9,495,486
11,735
182,238
11,764
169,076
557
41,253
48,582
23,071
19,995
91,416
82,205
52,504
937
59,283
21,278
56,041
1,479
873,415
44,125
603,881
88,137
11,171
18,360
248,450
1,878
15,243
50,803
432
17,158
2,215
22,706
18,994
4,862,782 4,882,447 5,935,067 6,366,892 6,890,551 6,813,548
377,819 367,256 425,754 399,248 363,574 348,863
679,073 715,228 701,223 726,909 697,628 710,228
404,653 500,162 - - - -
307,564 353,062 76,670 82,419 91,217 85,096
263,489 237,137 17,091 22,015 21,590 21,590
600 685 - - - -
303 17,267 - - - -
6,240 - - - - -
59,030 77,396 61,500 71,000 74,500 87,500
5,818 64 - - - -
22,282 11,145 5,000 5,000 7,500 7,500
6,399 3,982 - - - -
101,786 79,816 - - - -
314,961 314,375 315,478 330,332 356,917 359,128
1,084 1,099 1,090 1,090 1,090 1,090
380,792 404,039 406,950 446,968 472,769 452,528
65,000 65,000 65,000 65,000 65,000 65,000
142,926 162,393 142,925 162,393 162,393 191,034
287,602 284,027 292,133 305,266 321,821 324,093
96,700 97,571 100,849 106,911 112,721 111,585
283,476 282,981 290,341 221,432 239,486 155,394
287 6,955 - - - -
- - - - 32,788 30,575
906,930 1,061,325 1,089,188 1,103,629 1,268,455 1,261,560
114,367 108,756 112,800 114,700 117,667 116,067
5,805 7,329 6,325 6,421 9,902 9,722
3,249 3,092 5,030 4,975 5,029 5,138
9,701,018 10,044,590 10,050,414 10,542,600 11,312,598 11,157,239
18,290 13,991 22,050 23,350 21,550 21,550
193,118 218,759 208,000 210,100 271,000 272,800
12,885 11,693 21,325 24,975 19,375 19,375
149,815 112,013 173,400 164,900 156,600 156,600
576 2,415 8,500 5,500 5,500 5,500
37,569 39,184 53,100 51,600 56,600 56,600
41,735 47,446 45,000 45,000 45,000 45,000
20,324 25,003 25,900 26,150 30,150 30,150
28,161 36,576 30,800 56,325 42,225 42,225
117,804 150,391 150,208 159,000 172,700 172,700
81,655 62,400 90,000 95,000 90,400 90,400
73,808 74,408 60,250 62,850 67,850 67,850
4,788 13,678 19,000 22,500 14,500 14,500
132,383 70,848 80,000 80,000 80,000 80,000
31,370 33,319 34,500 34,500 36,500 36,500
23,716 36,443 49,800 54,100 54,100 54,100
637 13,603 1,000 3,000 3,000 3,000
92,126 100,000 100,000 100,000
968,631 1,054,296 1,072,833 1,218,850 1,267,050 1,268,850
44,668 54,496 49,000 52,000 52,500 52,500
592,652 634,739 583,264 520,533 537,698 539,198
92,295 81,957 92,190 93,100 86,150 86,150
10,266 12,912 12,125 12,875 14,825 14,825
18,632 17,412 19,025 19,775 24,275 24,275
243,834 320,799 249,343 357,464 328,603 363,603
1,752 1,680 1,500 1,500 1,500 1,500
67,688 67,750 68,000 68,000 37,000 37,000
66,892 55,422 76,470 81,180 84,030 84,030
399 276 500 500 500 500
21,241 18,032 20,000 22,000 23,500 23,500
2,313 540 2,900 2,900 1,900 1,900
23,171 26,422 23,600 24,100 29,500 29,700
2,273 6,322 14,000 14,000 14,000 14,000
(77,003)
446,656
7.0 %
(14,711)
(50,385)
-12.6%
12,600
(16,681)
-2.3 %
-
-
0.0%
(6,121)
2,677
3.2%
-
(425)
-1.9 %
-
0.0%
0.0%
0.0%
13,000
16,500
23.2%
-
-
0.0%
-
2,500
50.0%
-
0.0%
-
-
0.0%
2,211
28,796
8.7 %
-
-
0.0%
(20,241)
5,560
1.2%
-
-
0.0%
28,641
28,641
17.6 %
2,272
18,827
6.2 %
(1,136)
4,674
4.4%
(84,092)
(66,038)
-29.8%
-
0.0%
(2,213)
30,575
0.0%
(6,895)
157,931
14.3%
(1,600)
1,367
1.2%
(180)
3,301
51.4%
109
163
3.3%
(155,359)
614,639
5.8%
- (1,800) -7.7%
1,800 62,700 29.8%
- (5,600) -22.4 %
(8,300) -5.0 %
- 0.0%
- 5,000 9.7%
- 0.0%
- 4,000 15.3%
- (14,100) -25.0%
- 13,700 8.6 %
- (4,600) -4.8 %
- 5,000 8.0%
- (8,000) -35.6%
- 0.0%
- 2,000 5.8%
- 0.0%
0.0%
0.0%
1,800
50,000
4.1%
-
500
1.0%
1,500
18,665
3.6%
-
(6,950)
-7.5 %
-
1,950
15.1 %
-
4,500
22.8%
35,000
6,139
1.7%
-
-
0.0%
-
(31,000)
-45.6%
-
2,850
3.5%
-
0.0%
-
1,500
6.8%
-
(1,000)
-34.5%
200
5,600
23.2%
-
-
0.0%
Detailed Budget
General Fund
Actual
Actual
Actual
Budget
Budget
2026 BUDGET
Chg from
2025/2026 Change
Preliminary
Bud et
Amount
%
2022 2023 2024 2024 2025
Prelimina
General Liability Insur
210,185
213,963
236,885
226,100
219,700
218,690
216,690
(2,000)
(3,010)
-1.4 %
Property l nsurance
7,508
8,191
8,532
8,400
8,750
10,750
10,960
210
2,210
25.3%
Insurance Deductible
-
8,324
-
-
-
-
-
-
-
0.0%
Utilities
438,020
409,922
447,520
428,900
456,100
459,600
459,600
-
3,500
0.8%
Street Lighting Utilities
137,977
142,230
124,108
130,000
124,000
118,000
118,000
-
(6,000)
-4.8 %
Refuse- Recycling
31,033
31,818
33,836
31,950
32,950
34,400
34,400
-
1,450
4.4%
Contractual R&M
530,622
386,443
566,832
518,925
531,025
669,525
662,725
(6,800)
131,700
24.8%
Contracted Snow Removal
33,490
43,016
28,919
46,720
47,020
47,170
47,170
-
150
0.3%
Automotive R&M
94,685
125,007
124,225
99,100
101,600
113,350
113,350
-
11,750
11.6%
Contracted Janitorial
48,289
55,796
66,432
65,500
73,600
61,350
61,350
-
(12,250)
-16.6%
Contracted Services - Printing
22,176
22,798
24,864
22,460
23,410
25,760
25,760
-
2,350
10.0%
Contracted Mosquito Control
-
-
-
-
57,000
57,000
57,000
-
-
0.0%
Common Area Maintenance
4,920
18,000
18,000
18,000
18,000
18,000
18,000
-
-
0.0%
Equipment Rental
21,765
21,900
24,915
23,250
23,250
36,250
36,250
-
13,000
55.9%
Sr Center Trip Expense
27,799
29,773
31,540
30,000
30,000
30,000
30,000
-
-
0.0%
Sr Center Activities Expense
56
442
2,920
1,500
1,500
1,500
1,500
-
-
0.0%
Sr Center Instructional Expense
4,190
5,030
4,145
5,000
5,000
5,000
5,000
0.0%
3,142,326
3,170,436
28,110
147,604
4.9%
Total Services & Charges 2,756,266 2,710,727 3,042,430 2,867,722 3,022,832
Dues & Subscriptions
65,292
66,609
60,697
74,100
75,855
76,775
77,075
300
1,220
1.6%
Refunds & Reimbursements
-
2,000
29
-
-
-
-
-
-
0.0%
Licenses & Permits
3,465
4,264
2,979
3,850
3,850
3,850
3,850
-
-
0.0%
Property Taxes
19,954
19,554
22,434
22,100
24,100
24,100
24,100
-
-
0.0%
Drug Testing
3,162
5,099
3,114
2,750
3,500
3,500
3,500
-
-
0.0%
Lodging Tax Reimb
124,334
125,279
122,405
123,500
123,500
123,500
123,500
-
-
0.0%
Cable Franchise Expenses
103,810
96,351
90,361
100,000
95,000
95,000
95,000
-
-
0.0%
Donations to Civic Org.
2,000
-
-
2,000
2,000
2,000
2,000
-
-
0.0%
Bad Debt Expense
-
-
6,046
-
-
-
-
-
-
0.0%
Vehicle Rent
350,000
-
-
-
-
-
-
-
-
0.0%
Business Subsidy -Tax Abatement
24,998
21,331
21,597
25,000
25,000
25,000
25,000
-
-
0.0%
Miscellaneous Expense
20,058
20,446
32,700
28,100
27,100
25,100
23,950
(1,150)
(3,150)
-11.6%
Tuition Reimbursement
84
0.0%
378,825
377,975
(850)
(1,930)
-0.5%
Total Miscellaneous Expenses 717,157 360,932 362,360 381,400 379,905
Interfund Transfers
610,313
488,622
517,031
517,031
545,542
574,158
574,158
28,616
5.2%
574,158
574,158
-
28,616
52%
Total Transfers -Out 610,313 488,622 517,031 517,031 545,542
Buildings & Structures
254
-
-
-
-
-
-
-
-
0.0%
Machinery& Equipment
26,707
32,218
4,000
0.0%
0.0%
Total Capital Outlay
26,961
32,218
4,000
TOTAL EXPENDITURES
14,479,599
14,262,148
15,024,708
14,889,400
15,709,729
16,674,957
16,548,658
(126,299)
838,929
5.3%
-
-
-
-
NET REVENUE (458,652) 440,687 313,559 - -
PRELIMINARY LEVIES FOR 2026
2025
2026
Change
% Chg
General Fund
6,704,034
7,463,195
$759,161
11.3%
Tax Abatement
25,000
25,000
-
0.0%
Total General Fund
6,729,034
7,488,195
759,161
11.3%
Debt Funds
2,547,379
2,645,746
98,367
3.9%
Total City Tax Levy
$9,276,413
$10,133,941
$857,528
9.2%
EDA Levy
281,771
286,437
4,666
1.7%
HRA Levy
170,000
173,000
3,000
1.8%
TOTAL TAX IMPACT
$9,728,184
$10,593,378
$865,194
8.9%
PROPOSED FINAL LEVY SCENARIOS FOR 2026
Change from Prelim
General Fund
Tax Abatement
Total General Fund
Debt Funds
Total City Tax Levy
EDA Levy
HRA Levy
TOTAL TAX I M PACT
2025
2026
Change
% Chg
Amount
%
$6,704,034
$7,226,682
$522,648
7.8%
($236,513)
-3.5%
25,000
25,000
-
0.0%
-
0.0%
6,729,034
7,251,682
522,648
0
(236,513)
-3.5%
2,547,379
2,610,792
63,413
2.5%
(34,954)
-1.4%
$9,276,413
$9,862,474
$586,061
6.3%
($271,467)
-2.9%
281,771
286,437
4,666
1.7%
-
0.0%
170,000
173,000
3,000
1.8%
-
0.0%
$9,728,184
$10,321,911
$593,727
6.1%
($271,467)
-2.8%
PROPOSED TAX IMPACT
2026 Tax Levy Options
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
General Fund levy:
5.8%
0.0%
2.8%
3.1%
7.8%
11.3%
Debt levy:
2.8%
0.0%
2.5%
2.5%
2.5%
3.9%
TAX CAPACITY
$16,410,588
$16,855,714
$16,855,714
$16,855,714
$16,855,714
$16,856,896
% Change
2.7%
2.7%
2.7%
2.7%
2.7%
Tax Levy - General Fund
$6,729,034
$6,729,034
$6,917,237
$6,934,637
$7,251,682
$7,488,195
Tax Levy - Debt Service
2,547,379
2,547,379
2,610,792
2,610,792
2,610,792
2,645,746
TOTAL LEVY
$9,276,413
$9,276,413
$9,528,029
$9,545,429
$9,862,474
$10,133,941
Total Levy % Increase over 2025
0.0%
2.7%
2.9%
6.3%
9.2%
Tax Rate
56.527%
55.034%
56.527%
56.630%
58.511%
60.117%
Change in Tax Rate
-1.493%
0.000%
0.103%
1.984%
3.590%
Budget Cuts for Levy Scenario
-$586,061
-$334,445
-$317,045
N/A
NIA
% of General Fund Expenses
3.5%
2.0%
1.9%
City Tax Impact to Median Home Value
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
Median Home Value
$275,000
$275,000
$275,000
$275,000
$275,000
$275,000
Homestead Exclusion
-21,800
-21,800
-21,800
-21,800
-21,800
-21,800
Net Taxable Value
$253,200
$253,200
$253,200
$253,200
$253,200
$253,200
Estimated City Tax
$1,430
$1,393
$1,430
$1,434
$1,482
$1,522
Change from 2025
-$37
$0
$4
$52
$92
% Change
-2.6%
0.0%
0.3%
3.6%
6.4%
PROJECTED DEBT LEVY
$3, 500, 000
$3,000,000
2.823.987
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,0
$0
13,8
34,8
3 $
89,3
57,
53,0
24,8
99,3
$
54,
31,2
3
0
3
59,0
688,167
2025
Q4,7
786,0
2026
89,2
$
3 $
3 $
3
$
$
2
$
8
8
25,1
324,
2032
178,
357,055
018,
535,9
715,
2036
85,0001
i5417,
4 $1
828,
2027
2 $
$1
5
$1
04,0
2029
9 $1
631,
2030
3,
7
$1,171,
$1
2033
58
$1
AV
-
-
2028
$1,
8 $1
87
$1
-
8 $
2031
2034
2035
=Existing Levy =Proposed Future Issues C New Police Facility Total Debt Levy
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution 15959 Approving the 2026 General Fund & Debt Service
Agenda Item: Final Tax Levies
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes): 3
License Contingency No
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
In accordance with State Statute, the City must certify a final 2026 tax levy to McLeod County by
December 29th, for the General Fund and Debt Service Funds. Back in September, we certified
a preliminary levy to the County in the amount of $10,133,941, which represented a 9.2%
increase over the 2025 tax levy (11.3% General Fund, 3.9% Debt Service).
Since the preliminary levy in September, staff was able to reduce the total City tax levy by
$271,467, or a 2.9%. The general fund tax levy by was reduced by $236,513, or 3.5%. The
reduction was the result of revenues increasing $110,214 and expenses decreasing $126,299
from what was presented in September.
The debt levy was reduced by $34,954, or 1.4%, since the new debt issued in October 2025
differed from the estimate that was used for the preliminary levy. Finance also reviewed all debt
funds and was able to reduce the levy needs for several issuances due to healthy fund balance.
BOARD ACTION REQUESTED:
Approve a final 2026 tax levy of $9,862,474 for the General and Debt Service funds.
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
CITY OF HUTCHINSON
RESOLUTION NO. 15959
2026 FINAL TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
THAT a final net tax levy for the City of Hutchinson for 2026 is hereby set
in the amount of: $9,862,474
The detail for this final tax levy is as follows:
Levy Amount
General Fund $ 7,226,682
Tax Abatement $ 25,000
G.O. Improvement Special Assessment Bonds
2014
129,833
2015
133,418
2016
142,896
2017
165,967
2018
135,368
2019
146,283
2020
154,036
2021
127,625
2023
98,646
2024
166,014
2025
162,134
Subtotal - G.O. Improv SA Bonds
1,562,220
G.O. Bonds
2021 & 2022 CIP Facility Bonds - Police
824,788
2021 Tax Abatement Bonds
42,630
2022 Street Reconstruction Bonds
181,154
Subtotal - G.O. Bonds
1,048,572
Total Debt Tax Levy
$ 2,610,792
TOTAL FINAL TAX LEVY
$ 9,862,474
Adopted by the City Council this 23rd day of December, 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
PRELIMINARY LEVIES FOR 2026
2025
2026
Change
% Chg
General Fund
6,704,034
7,463,195
$759,161
11.3%
Tax Abatement
25,000
25,000
-
0.0%
Total General Fund
6,729,034
7,488,195
759,161
11.3%
Debt Funds
2,547,379
2,645,746
98,367
3.9%
Total City Tax Levy
$9,276,413
$10,133,941
$857,528
9.2%
EDA Levy
281,771
286,437
4,666
1.7%
HRA Levy
170,000
173,000
3,000
1.8%
TOTAL TAX IMPACT
$9,728,184
$10,593,378
$865,194
8.9%
PROPOSED FINAL LEVY SCENARIOS FOR 2026
Change from Prelim
General Fund
Tax Abatement
Total General Fund
Debt Funds
Total City Tax Levy
EDA Levy
HRA Levy
TOTAL TAX IMPACT
2025
2026
Change
% Chg
Amount
%
$6,704,034
$7,226,682
$522,648
7.8%
($236,513)
-3.5%
25,000
25,000
-
0.0%
-
0.0%
6,729,034
7,251,682
522,648
0
(236,513)
-3.5%
2,547,379
2,610,792
63,413
2.5%
(34,954)
-1.4%
$9,276,413
$9,862,474
$586,061
6.3%
($271,467)
-2.9%
281,771
286,437
4,666
1.7%
-
0.0%
170,000
173,000
3,000
1.8%
-
0.0%
$9,728,184
$10,321,911
$593,727
6.1%
($271,467)
-2.8%
PROPOSED TAX IMPACT
2026 Tax Levy Options
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
General Fund levy:
5.8%
0.0%
2.8%
3.1%
7.8%
11.3%
Debt levy:
2.8%
0.0%
2.5%
2.5%
2.5%
3.9%
TAX CAPACITY
$16,410,588
$16,855,714
$16,855,714
$16,855,714
$16,855,714
$16,856,896
% Change
2.7%
2.7%
2.7%
2.7%
2.7%
Tax Levy - General Fund
$6,729,034
$6,729,034
$6,917,237
$6,934,637
$7,251,682
$7,488,195
Tax Levy - Debt Service
2,547,379
2,547,379
2,610,792
2,610,792
2,610,792
2,645,746
TOTAL LEVY
$9,276,413
$9,276,413
$9,528,029
$9,545,429
$9,862,474
$10,133,941
Total Levy % Increase over 2025
0.0%
2.7%
2.9%
6.3%
9.2%
Tax Rate
56.527%
55.034%
56.527%
56.630%
58.511%
60.117%
Change in Tax Rate
-1.493%
0.000%
0.103%
1.984%
3.590%
Budget Cuts for Levy Scenario
-$586,061
-$334,445
-$317,045
N/A
NIA
% of General Fund Expenses
3.5%
2.0%
1.9%
City Tax Impact to Median Home Value
Maintains PY
Inflationary
FINAL
Preliminary
Adopted 2025
Flat Levy
Tax Rate
Levy Increase
Levy Increase
Tax Levy
Median Home Value
$275,000
$275,000
$275,000
$275,000
$275,000
$275,000
Homestead Exclusion
-21,800
-21,800
-21,800
-21,800
-21,800
-21,800
Net Taxable Value
$253,200
$253,200
$253,200
$253,200
$253,200
$253,200
Estimated City Tax
$1,430
$1,393
$1,430
$1,434
$1,482
$1,522
Change from 2025
-$37
$0
$4
$52
$92
% Change
-2.6%
0.0%
0.3%
3.6%
6.4%
PROJECTED DEBT LEVY
$3, 500, 000
$3,000,000
2.823.987
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,0
13,8
34,8
3
89,3
57,
3 $
53,0
24,8
99,3
54,
31,2
3
0
3
59,0
688,167
2025
i89,218
3 $
3
$
$
$
2 $
24,7
786,0
2026
$
8
25,1
001
178,
357,
535,9
_
$1
715,
85,0
7
631,4
2030
$
4 $1
828, 05
2027
9 $
$1
2 $
6
$1
5
04,0
2029
7 $1
9 $1
493,
$1
324,
2032
7
$1,171,
58
$1
2033
-
-
2028
$1,
018,
2034
87,8 1
2035
2 $
8 $1
54,31
2036
8 $
2031
=Existing Levy =Proposed Future Issues C New Police Facility Total Debt Levy
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution No. 15963 Adopting 2026 City of Hutchinson Compensation Plan
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: K Wendland
Agenda Item Type:
Presenter: K Wendland
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
See following attachments:
2026 Compensation Plan Memo
Resolution 15963 - 2026 City of Hutchinson Compensation Plan
Red Lined Position Classification Table
BOARD ACTION REQUESTED:
Consideration and approval of Resolution No. 15963 Adopting City of Hutchinson 2026 Compensation
Plan
Fiscal Impact: Funding Source: General Fund and Enterprise Fund Budgets
FTE Impact: 2.00 Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
HUTCHINSON
A CITY ON PURPOSE.
Memorandum
To: Mayor and Councilmembers
From: Kellie Wendland, HR Director
Date: 12/ 16/2025
Re: Proposed 2026 City of Hutchinson Compensation Plan, Position
Classification Table, and Pay Grid
This memo is part of the Board Action Form for Res. 15963 which requests consideration and
approval of the 2026 City of Hutchinson Compensation Plan, Position Classification Table, and
Pay Grid. Please note that this plan, proposed to be effective on January 1, 2026, will replace
the current 2025 Compensation Plan.
The plan includes a few edits from 2025's plan, specifically addressing additional compensation
in the form of the annual picnic, holiday activity/party, and/or a plant or floral arrangement for
a new baby, funeral, or surgery. The proposed plan reflects a pay grid shift of 3% from the
2025 ranges. This market adjustment is recommended per the results of research and
discussion conducted by the Wage Committee. The position classification table included in the
plan assumes the changes below are approved. A red -lined version of the table has also been
included for reference.
The position classification table reflects the following changes:
• Addition of Sr Network Administrator position (IT)
• Addition of Engineering Specialist
• Title adjustment for PRCE Facility Maintenance Technician
• Removal of obsolete positions, including Recreation Specialist/Concessions
Coordinator and Project/Environmental/Regulatory Manager
Creation, review, and adjustment of position descriptions began mid -year between HR and the
Department Director, with formal review of each position completed by the City's compensation
specialist in November/December, resulting in the classification detailed above.
Also note that the 3% market increase adjusts the pay grid but does not result in
comprehensive across the board market increases for all regular employees. Increases are only
proposed for those employees whose pay would fall below the minimum of the pay grid as of
January 1, 2025. All other employees would be eligible for pay increases in March, as detailed
in the plan document.
RESOLUTION NO. 15963
CITY OF HUTCHINSON
2026 COMPENSATION PLAN
RESOLUTION ADOPTING THE PLAN, POSITION CLASSIFICATION
ASSIGNMENT TABLE AND PAY GRID EFFECTIVE JANUARY 1, 2026
WHEREAS, the City Council has considered the existing classification of positions for the
City of Hutchinson and the current economic conditions,
BE IT RESOLVED, that a Compensation Plan is hereby adopted. All positions covered by this
Resolution shall be grouped in grades having a definite range of difficulty and responsibility.
For each position there shall be a title; and there shall be shown examples of work which are
illustrative of duties of positions, as well as requirements as to knowledge, abilities and skills
necessary for performance of the work; and a statement of experience and training desirable
for recruitment into a position.
A. Plan Objectives
• To establish and maintain a compensation plan that enables the City of Hutchinson to be
highly competitive within our defined market.
• To lead or exceed the market in attracting and retaining qualified, reliable and motivated
employees who are committed to quality and excellence for those we serve.
• To ensure, subject to the financial condition of the City, that employees receive fair and
equitable compensation in relation to their individual contributions to the City's success.
• To follow the principles of pay equity in establishing and maintaining pay relationships
among positions based on the categories of the Keystone Job Leveling System.
• To ensure program flexibility necessary to meet changing economic, competitive,
technological, and regulatory conditions encountered by the City.
• To balance compensation and benefit needs with available resources.
B. Plan Structure
The compensation plan specifies salary range minimums and maximums. The intent of each
salary grade is to fall within 80% and 120% of identified market for positions within the grade.
(See Attachment A)
Each numbered pay grade in the basic table consists of the following:
1. Salary Minimum: The lowest amount paid to an employee in a specific job
grade or class. No employee will receive less than the minimum rate. (80% of market)
2. Salary Mid-point/Market Rate: The middle of the salary range. (100% of market)
3. Salary Maximum: The highest amount paid to an employee in a specific job
grade or class. No employee will be paid a base rate above the maximum of the salary
range. (120% of market).
C. Open Salary Range
The City shall adopt an Open Salary Range compensation plan that will allow for maximum
flexibility and in -range salary administration since there are not defined or pre -calculated
"steps". Employee movement within the pay grade range to which their position is assigned is
based solely on performance. The open salary range concept rewards good and exceptional
performers and advances employees to the market rate more quickly. (See item I.)
D. Position Classification Assignment
The position assignment table shall assign all of the various positions to the appropriate pay
grade (See Attachment B).
The City Administrator and Human Resources Director may jointly approve a reclassification of a
position provided the reclassification does not exceed two grades upward or two grades downward
from the current pay grade. To initiate consideration of this type of reclassification, the department
director shall submit in writing the specific reasons for the reclassification.
Any changes to the classification of a position of more than two pay grades shall be approved
by the City Council. Requests for reclassification are normally brought before the Council with
the annual budget process, and at other times of the year, as needed. To initiate such a
reclassification request, the department director shall submit a written request for consideration
to the City Administrator and the Human Resources Director. The request shall include a
description of significant or considerable changes to the position that warrant a reclassification.
The City Administrator and Human Resources Director will determine if the reclassification
request is to be forwarded to the City Council for consideration.
E. Allocation of New Positions
When a new position is created for which no appropriate description exists or when the duties
of an existing position are sufficiently changed so that no appropriate description exists, the City
Council, after recommendation of the Human Resources Director, shall cause an appropriate job
description -specification to be written for said position.
F. Pay Grades
1. Exempt Employees
Each position is assigned a pay grade. The normal beginning rate for a new employee
will be the minimum rate. After satisfactory completion of the required probationary
period, an increase may be granted as warranted by the annual performance appraisal.
Thereafter, consideration for increases may be given annually on a standardized date
established by the City. The City Administrator reserves the discretion to adjust
individual rates within the assigned pay grades as required. The Council will determine
any pay increase for the City Administrator.
2. Non -Exempt Employees
Each position is assigned a pay grade. The normal beginning rate for a new employee
will be the minimum rate. After satisfactory completion of the required probationary
period, an increase may be granted as warranted by the annual performance appraisal.
Thereafter, consideration for increases may be given annually on a standardized date
established by the City. The City Administrator reserves the discretion to adjust individual
rates within the assigned pay grades as required.
3. Police Patrol Positions
The position of full-time police patrol officer is assigned to Grade 165 on the pay plan.
Temporary assignments will be made from these positions as needed for the
investigative function for the department. With said assignment, there will be an
additional $200.00 per month premium on top of the employee's patrol officer pay grid
assignment.
The City Administrator and the Human Resources Director, as directed by the Administrator, shall
maintain the discretion to hire at any point within the range based on the qualifications,
experience, market conditions or other relevant factors, to secure the best candidate for the
position.
G. Promotion, Position Reclassification, and Demotion Pay Rate Adjustment
1. When an employee is promoted or the position to which they are appointed is
reclassified upward, the employee's pay rate will be adjusted as follows:
a. If the promotion or reclassification results in a one grade adjustment upward, the
employee shall be compensated within the higher salary range at a rate that is
equal to the compa ratio of the employee's pay rate in their current range.
b. If the promotion or reclassification results in more than a one grade adjustment
upward, the employee's pay rate will be adjusted by using one of the following
methods:
i. To at least the minimum of the higher salary range for classified staff
positions; or
ii. If the employee's current pay rate is at or above the minimum of the
promotional or reclassified position, the pay rate may be increased to a
level within the salary range or budgeted pay rate amount that is
equitable, based on the employee's related experience, qualifications and
the pay rates of the other employees in the same position; or, the
appropriate pay rate based on market conditions and competition.
Generally, this pay rate increase ranges from 5% to 10%; or,
iii. To a level within the higher salary range that is equal to the compa ratio
of the employee's pay rate in the current range if the increase does not
exceed 10%.
2. 2. When an employee is demoted or the position to which they are appointed is
reclassified downward, the employee's salary will be adjusted as follows:
a. If the employee's current pay rate is within the salary range of the resulting
position, the pay rate will remain unchanged.
b. If the employee's current pay rate is above the maximum of the salary range, the
current pay rate may be maintained, but frozen until the pay rate falls within the
salary range as a result of adjustments to the pay grid, or may be lowered to the
maximum pay rate of the lower pay grade.
3. When an employee is transferred internally to a position that falls in the same grade,
whether the transfer was due to the employee's choice or management decision, the
employee's current rate of pay will be maintained unless the supervisor requests an
exception for an increase or decrease in rate of pay.
When making salary adjustment decisions, the following may be considered:
• market condition trends, such as inflation and the current salary rates for the external
market
• employee performance to reward increased productivity and performance improvements
• available resources, salary maximums, and other restrictions to ensure that the increase
is allowable and that funds exist to cover it
The City Administrator will normally discuss the proposed pay adjustment with the
director/department head and the Human Resources Director. The City Administrator must
approve any pay rate adjustment due to promotion, reclassification or demotion and may
vary from this policy and approve a different pay rate adjustment, per his/her discretion.
Definitions
Promotion - A promotion is the appointment of a current, active regular employee to a
position in a higher salary range than the one to which the position is presently assigned.
Most promotions will occur as a result of a job posting or a departmental reorganization. A
promotion is also advancement to a position that requires performing accountabilities of
increased complexity or responsibility.
Demotion - A demotion is the appointment of a current, active regular employee to a
position in a lower salary range than the one to which the position is presently assigned.
Most demotions will occur as a result of a departmental reorganization or disciplinary action.
A demotion is also an appointment to a position that requires performing accountabilities of
decreased complexity or responsibility.
Reclassification — A reclassification is the placement of a current position in a higher or lower
salary grade because the position evaluation criteria have changed and now meet the
requirements of a higher or lower pay grade.
Internal Transfer — An internal transfer is the appointment of a current, active regular
employee to a position that is within the same salary range or grade as the position held
prior to transfer.
H. Performance Evaluations
For all regular full time and part time employees, a performance appraisal or evaluation
will be made on, at minimum, an annual basis and per city policy No. 3.08. An
evaluation made by the employee's supervisor shall be submitted in writing to the
employee and to the City Administrator/Human Resources Director. All evaluations will
be forwarded to Human Resources for filing in the employee files.
2. Evaluations shall be based upon the performance of the individual in the position
measured against established job performance criteria. Such criteria may include level
of knowledge, skills, ability, and quality of work, personal work traits, compliance with
established City or departmental rules and regulations or any other criteria that is
indicative of performance.
3. The performance appraisal process is the application of performance standards to past
performance. In appraising an employee, these are the basic levels of performance:
Outstanding Performer - Performance is exceptional in all areas and is recognizable
as being far superior to others.
Exceeds Expectations - Results clearly exceed most positions requirements.
Performance is of high quality and is achieved on a consistent basis.
Solid Performer - Competent and dependable level of performance. Meets
performance standards of the job.
Needs Improvement - Performance is deficient in certain area(s). Improvement is
necessary.
Unsatisfactory - Results are generally unacceptable and require immediate
improvement.
4. Results
The results of the employee's evaluation will normally have the following effect on
his/her salary per the following Merit Increase Guide:
Merit Guide Chart
Pay Level Within Grade
Compa Ratio
80-88
88.1-96
96.1-104
104.1-112
112.1-116
116.1-120
Performance Rating
Minimum
Lower
Middle
Midpoint
(Competitive
Market)
Upper Middle
Maximum
Maximum
Outstanding Performer (4.51- 5)
7%
6%
5%
4%
3%
2%
Exceeds Expectations (3.51- 4.5)
6%
5%
4%
3%
2%
1%
Solid Performer (2.51- 3.5)
5%
4%
3%
2%
1%
0%
Needs Improvement (1.51- 2.5)
2%
0%
0%
0%
0%
0%
Unsatisfactory (0 - 1.5)
0%
0%
0%
0%
0%
0%
NOTE: 1) % increase may not result in a pay rate higherthan the maximum noted on the pay grid
*Compa-ratio refers to the location of the individual in the range relative to the market.
Merit/performance increases for eligible regular full time and regular part time
employees will be effective on the first date of the first full pay period commencing on or
after March 1, except for newly hired employees, or employees that have been
promoted, demoted, or transferred during the calendar year. For 2026, the effective
date is Sunday, March 1, 2026. New employees and employees that have been
promoted, demoted, or transferred during the calendar year are eligible for consideration
for a merit/performance increase after one year of continuous employment, generally,
the first year anniversary date after being appointed to the position. First anniversary
performance increases will go into effect the beginning of the pay period following their
anniversary date. In subsequent years, eligible employees will be eligible for
consideration for the merit/ performance increase as specified previously and at the
discretion of the department director. Application of merit/performance increases for
employees appointed to the positions of full-time police patrol officer and police sergeant
is subject to collective bargaining.
5. Market Conditions
Notwithstanding any language to the contrary, the City Council retains the right to
deviate
from the pay plan when, in the sole judgment of the City Council, market conditions or
other circumstances dictate such a decision.
The City Administrator and Human Resources Director maintain final approval responsibility for
salary increases.
I. Annual Market Adjustment Consideration
As part of the budget preparation process, an annual market adjustment to the existing pay
grid, expressed as a percentage increase, is recommended to the City Council for review and
consideration for approval.
In determining a recommendation for an annual market adjustment, at least the following
information shall be considered:
1. U.S., Midwest, and Minneapolis/St. Paul consumer price index changes (CPIU & CPIW)
2. Employment cost data
3. Social Security and PERA calculation of cost of living increase
4. Unemployment rate
5. Employee turnover rate
6. Legislative growth factor constraints
7. Keystone Compass (from Keystone Compensation Group)
An approved market adjustment is applied only to the City Pay Grid, and no individual market
increases will be granted in 2026. If an adjustment to the pay grid results in a regular
employee's wages being below the minimum rate of the grid, the wages for the affected
employee(s) will be increased to the newly established minimum rate effective January 1st
In order to maintain a reasonable premium split between the City and employees, premium
increases to health insurance benefits may be considered in addition to the factors listed above.
Additional information regarding employee benefits for 2026 can be found in Resolution
No.15924.
J. Additional Compensation
As detailed in City Personnel Policies, unless approved by the City Administrator or City Council,
no employee shall receive any amount from the city in addition to the pay authorized for the
positions to which they have been appointed. However, compensation in the form of an annual
picnic, holiday activity, or plant/floral arrangement for a new baby, funeral, or surgery, will be
authorized annually via this plan.
K. Modification of the Plan
The City Council reserves the right to modify any or all of the components or to vary from any
of the components of the Compensation Plan at its discretion and at any time.
L. Review of the Plan
As often as necessary to assure continued correct classification, the Position Evaluation and
Compensation Plan shall be reviewed by the Human Resources Director and necessary
adjustments recommended to the City Council. It is recommended that a comprehensive
review be completed at least every five years.
M. Filing of the Plan
Upon adoption of the Resolution, a copy of the Compensation Plan approved by the City Council
shall be placed on file with the City Administrator. The plan so filed and subsequently adjusted
by the Council shall be the Compensation Plan of the City.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON
That the following tables are hereby adopted as the City Position Classification Table and Pay
Grid, to be reviewed from time to time, as appropriate.
Adopted by the City Council this 23rd day of December, 2025. (This replaces Resolution
No.15818)
ATTEST:
Matthew Jaunich, City Administrator
Gary Forcier, Mayor
2026 Hutchinson Pay Grid
Grade
MIN
MID/ MARKET
MAX
800/0
1000/0
120%
260
$64.609
$80.761
$96.913
250
$60.896
$76.120
$91.344
240
$57.741
$72.176
$86.611
230
$55.152
$68.940
$82.728
220
$50.278
$62.847
$75.416
210
$47.689
$59.611
$71.534
200
$45.375
$56.718
$68.062
190
$41.076
$51.345
$61.614
185
$39.495
$49.372
$59.248
180
$37.921
$47.401
$56.881
170
$34.690
$43.362
$52.035
165
$33.861
$42.334
$50.796
160
$33.037
$41.296
$49.555
150
$30.448
$38.060
$45.672
140
$28.738
$35.923
$43.107
130
$26.716
$33.396
$40.075
120
$24.411
$30.514
$36.617
110
$21.247
$26.558
$31.870
100
$18.951
$23.689
$28.426
Attachment A
CITY OF HUTCHINSON
2026 Position Classification Table
Grade
Position
Grade
Position
100
PT PRCE Custodian
150
Senior Wastewater Operator
150
Wastewater Laboratory Specialist
110
Compost Facility Maintenance Assistant
150
Wastewater Maintenance Specialist
110
Compost Forklift Operator
110
PT Adaptive Recreation Coordinator
160
Building Inspector
110
PT Office Specialist - Event Center
160
City Clerk/Paralegal
110
PT PRCE Receptionist
160
Compost Operations Supervisor
160
Fire Inspector/Fire Fighter
120
Administrative Secretary - Public Works
160
Maintenance Lead Operator (PW)
120
Community Service Officer - PT
160
Parks Maintenance Lead Operator
120
Motor Vehicle Licensing Clerk FT/PT
160
Police Cadet
120
Plan ning/Building/EDA Technician
120
PRCE Facility Maintenance Technician
165
Police Officer - FT/PT
120
PRCE Office Specialist - FT
120
Utility Billing Specialist
170
Senior Engineering Specialist
170
Server/Network Technician
130
Compost Laborer
130
Engineering Administrative Specialist
180
Building Official
130
Human Resources/AdministrativeTechnician
180
Facilities Manager
130
Motor Vehicle Technician
180
Motor Vehicle Deputy Registrar
130
Planning and Building Administrative Specialist
180
Parks Manager
130
Police Administrative Specialist
180
PRCE Facility Maintenance Manager
130
Police Supplemental Services Specialist
180
Recreation Manager
130
Public Outreach and Education Coordinator
180
Sr Network Administrator
130
Public Works Administrative Specialist
130
Public Works Maintenance Operator
185
Police Sergeant
130
Wastewater Maintenance Operator
130
Wastewater Plant Operator
190
Assistant Finance Director
130
Water Plant Operator
190
Wastewater Manager
190
Water Manager
140
Compost Equipment Operator
140
Compost Operations Specialist
200
Compost Manager
140
Lead Police Administrative Specialist
200
Economic Development Director
140
Parks Maintenance Equipment Operator
200
Fire Chief
140
Payroll/Benefits Specialist
200
Liquor Sales Manager
140
Police Data Release Coordinator
200
Police Lieutenant
140
Police Investigations Specialist
200
Public Works Manager
140
PRCE Facilities Operations Specialist
140
Senior Accounting Specialist
210
City Engineer/Asst Public Works Director
140
Senior Liquor Sales Clerk
140
Senior Public Works Maintenance Operator
220
Finance Director
140
Vegetation Management Specialist
220
Human Resources Director
220
Information Technology Director
150
Aquatics & Recreation Programmer
220
Parks/Recreation/Community Ed (PRCE) Director
150
Distribution/Collection Systems Specialist
220
Planning Director
150
Inspector
150
ITTechnician
230
Public Works Director
150
Engineering Specialist
150
Equipment Mechanic
240
City Attorney
150
Event Center/Senior Center Programmer
240
Police Chief/Emergency Management Director
150
Sales & Marketing Specialist
150
Senior Water Plant Operator
260
City Administrator
Attachment B
CITY OF HUTCHINSON
2026 Position Classification Table
100
PT PRCE Custodian
150
Senior Water Plant Operator
150
Senior Wastewater Operator
110
Compost Facility Maintenance Assistant
150
Wastewater Laboratory Specialist
110
Compost Forklift Operator
150
Wastewater Maintenance Specialist
110
PT Adaptive Recreation Coordinator
110
PT Office Specialist - Event Center
160
Building Inspector
110
PT PRCE Receptionist
160
City Clerk/Paralegal
160
Compost Operations Supervisor
120
Administrative Secretary - Public Works
160
Fire Inspector/Fire Fighter
120
Community Service Officer - PT
160
Maintenance Lead Operator (PW)
120
Motor Vehicle Licensing Clerk FT/PT
160
Parks Maintenance Lead Operator
120
Planning/Building/EDA Technician
160
Police Cadet
120
PRCE RPCFPR` ^^ Facility Maintenance Technician
120
PRCE Office Specialist - FT
165
Police Officer - FT/PT
120
Utility Billing Specialist
170
Senior Engineering Specialist
170
Server/Network Technician
130
Compost Laborer
130
Engineering Administrative Specialist
180
Building Official
130
Human Resources/Administrative Technician
180
Facilities Manager
130
Motor Vehicle Technician
180
Motor Vehicle Deputy Registrar
130
Planning and Building Administrative Specialist
180
Parks Manager
130
Police Administrative Specialist
ZVe
PFeje6t/ERVwF9..meRtal/D...ulateFy PA@..age
130
Police Supplemental Services Specialist
180
PRCE Facility Maintenance Manager
130
Public Outreach and Education Coordinator
180
Recreation Manager
130
Public Works Administrative Specialist
180
Sr Network Administrator
130
Public Works Maintenance Operator
130
Wastewater Maintenance Operator
185
Police Sergeant
130
Wastewater Plant Operator
130
Water Plant Operator
190
Assistant Finance Director
190
Wastewater Manager
140
Compost Equipment Operator
190
Water Manager
140
Compost Operations Specialist
140
Lead Police Administrative Specialist
200
Compost Manager
140
Parks Maintenance Equipment Operator
200
Economic Development Director
140
Payroll/Benefits Specialist
200
Fire Chief
140
Police Data Release Coordinator
200
Liquor Sales Manager
140
Police Investigations Specialist
200
Police Lieutenant
140
PRCE Facilities Operations Specialist
200
Public Works Manager
140
Senior Accounting Specialist
140
Senior Liquor Sales Clerk
210
City Engineer/Asst Public Works Director
140
Senior Public Works Maintenance Operator
140
Vegetation Management Specialist
220
Finance Director
220
Human Resources Director
150
Aquatics & Recreation Programmer
220
Information Technology Director
150
Distribution/Collection Systems Specialist
220
Parks/Recreation/Community Ed (PRCE) Director
150
Inspector
220
Planning Director
150
IT Technician
150
Engineering Specialist
230
Public Works Director
150
Equipment Mechanic
150
Event Center/Senior Center Programmer
240
City Attorney
150
Sales & Marketing Specialist
240
Police Chief/Emergency Management Director
260
City Administrator
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution No. 15964 Adopting 2026 City of Hutchinson Seasonal, Temporary,
Agenda Item: Part Time Compensation Plan
Department: Admin
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Kellie Wendland
Agenda Item Type:
Presenter: Kellie Wendland
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As decided last year, the Seasonal, Temporary, Part Time Compensation Plan will be reviewed
annual, in parallel with the regular City of Hutchinson Compensation Plan. The attachment
shows the updated pay grid, which was adjusted by 1.5% (half of the regular grid shift) and the
position classification table.
The position classification table shows two updates:
-Separation of concessions for the Aquatic Center and Roberts Park to allow for the Aquatic
Center to use their admissions employees and concessions employees interchangeably
-Addition of Campground Host - a position that will also be discussed at the 12/23/25 meeting
BOARD ACTION REQUESTED:
Consideration and approval of Resolution No. 15964 Adopting 2026 City of Hutchinson Seasonal,
Temporary, Part Time Compensation Plan
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
RESOLUTION NO. 15964
CITY OF HUTCHINSON
2026 SEASONAL, TEMPORARY, AND PART TIME COMPENSATION PLAN
RESOLUTION ADOPTING THE POSITION PAY LEVEL
ASSIGNMENT TABLE AND PAY SCHEDULE EFFECTIVE JANUARY 1, 2026
WHEREAS, the City Council has considered the existing pay levels of seasonal,
temporary, and part-time liquor positions for the City of Hutchinson and the current economic
conditions,
BE IT RESOLVED, that a Compensation Plan specific to seasonal, temporary, and part-time
liquor positions is hereby adopted. All positions covered by this Resolution shall be grouped in
levels based on range of difficulty and responsibility. For each position there shall be a title
reflective of responsibilities.
A. Annual Market Adjustment Consideration
As part of the budget preparation process, an annual market adjustment to the existing pay
schedule, typically expressed as half of the total percentage increase made to the City of
Hutchinson Compensation for regular positions, is recommended to the City Council for review
and consideration for approval. (See Attachment A for Pay Schedule)
B. Position Pay Level Assignment
The position pay level assignment table shall assign all the various positions to the appropriate
level (See Attachment B).
The Human Resources Director and Department Director may jointly approve a level adjustment of
a position without City Council Approval.
C. Modification of the Plan
The City Council reserves the right to modify any or all the components or to vary from any of
the components of the Compensation Plan at its discretion and at any time.
D. Review of the Plan
At a minimum, the Seasonal, Temporary, and Part Time Compensation Plan will be reviewed
annually as part of the overall review of employee compensation through the budget process.
E. Filing of the Plan
Upon adoption of the Resolution, a copy of the 2026 Seasonal, Temporary, and Part Time
Compensation Plan approved by the City Council shall be placed on file with the City
Administrator. The plan so filed and subsequently adjusted by the Council shall be the
Seasonal, Temporary, and Part Time Compensation Plan of the City.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON
That the following tables are hereby adopted as the Seasonal, Temporary, and Part Time City
Position Level Table and 2026 Seasonal, Temporary, Part Time Pay Schedule, to be reviewed
from time to time, as appropriate.
Adopted by the City Council this 23rd day of December, 2025. (This replaces Resolution No.
15819.)
ATTEST:
Matthew Jaunich, City Administrator
Gary Forcier, Mayor
2026
City of Hutchinson
Seasonal / Temporary / Part -Time Pay Schedule
Pay Level
85%
90%
93%
96%
100%
104%
Level A
$12.42
$12.84
$13.25
$13.82
$14.39
Level B
$14.49
$15.01
$15.48
$16.15
$16.77
Level C
$16.77
$17.34
$17.91
$18.64
$19.41
Level D
$20.03
$20.71
$21.38
$22.26
$23.19
Level E
$24.64
$26.09
$27.02
$27.85
$28.99
$30.18
Attachment A
Seasonal / Temporary / Part -Time Position Pay Levels
Level A
Building Attendant
Warming House Attendant
Level B
Absentee Voting Team Member
Admissions/Pool Attendant
Aquatics Admissions/Concessions Worker
Roberts Park Concession Worker
Election Judge
Ice Arena Worker (under 18)
Lifeguard*
Park Maintenance (under 18)
Skating Instructor
Swimming Lesson Instructor**
Temporary Liquor Sales Clerk
Youth Coach
* - Add $0.50/hour for
additional duties
** - Add $1.00/hour
for additional duties
Level C
Bike/Park Patrol
Concessions Lead
EDA Intern
Head Election Judge
Head Lifeguard
Ice Arena Worker (18+)
IT Intern
Park Maintenance
Parks Maintenance Specialist**
Part Time Compost Monitor
Part Time Liquor Sales Clerk
Part Time PRCE Office Specialist
Public Works/Engineering Intern**
Public Works/Engineering Worker
Skating Instructor Lead
Youth Head Coach
Level D
Aquatics Supervisor
Campground Host
Concessions Supervisor
Lead Ice Arena Worker
Lead Poll Worker
Parks Seasonal Maintenance Lead
Public Works/Engineering Specialist
Skating Instructor Supervisor
Swimming Lesson Supervisor
Tournament Supervisor
Women to Workforce Intern (EDA)
Level E
DARE Instructor
Attachment B
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution No. 15965 Amending Paid On -Call Firefighter Compensation Plan
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: K Wendland
Agenda Item Type:
Presenter: K Wendland
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 3
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City's Firefighter Compensation Plan has been updated with the following:
-Updated information regarding pay periods
With the addition of the Fire Inspector/Firefighter position in 2025, Chief Schumann and I felt it
was necessary to expand this section to include language that addresses preplanned leave time
for the Fire Inspector/Firefighter position considering the position may need to respond to
emergency calls during the week that leave time is preapproved/used.
-Clarification in wage section
It was discovered that the language in the plan did not reflect actual fire practices for rounding.
BOARD ACTION REQUESTED:
Consideration and approval of Resolution No. 15965 Amending Paid On Call Firefighter Compensation
Plan
Fiscal Impact: Funding Source:
FTE Impact: 0.00 Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
r �
HUTCHINSON
A CITY ON PURPOSE.
RESOLUTION NO. 15965
Paid On -Call Firefighter Compensation Plan
RESOLUTION AMENDING THE PLAN EFFECTIVE JANUARY 1, 2026
WHEREAS, the City Council has considered the existing job duties and
responsibilities of Paid On -Call Firefighter positions for the City of Hutchinson and the
current economic conditions,
BE IT RESOLVED, that a Paid On -Call Firefighter Compensation Plan is hereby
adopted. All positions covered by this Resolution shall be grouped into three
categories. For each position there shall be a position description which will include: a
title, detailed responsibilities, required knowledge, skills, and abilities necessary for the
position, and defined experience and training required and/or desirable for the position.
A. Wages
Firefighter employees shall be paid per hour for responding to emergency calls for
service and attending meetings, drills and other special details required by the Fire
Chief or his/her designee. Hours worked on emergency calls for service shall be
rounded up to the next full hour, and meetings, drills, and other non -emergency
hours shall be rounded to the next half hour for purposes of determining
compensation.
B. Pay Periods
The pay periods for firefighter employees are the four quarters of the calendar year.
For regular employees of the city, pay periods shall end bi-weekly on Saturdays.
Regular, hourly Fire employees shall not forfeit pre -planned, pre -approved sick
leave, vacation, or compensatory time during any week where overtime hours are
required by the Fire Chief or his/her designee. All pre -planned, pre -approved leave
time will be paid at the employee's regular rate, if requested in the "notes" function of
the timesheet. Alternatively, the employee will also have the choice to reduce the
amount of leave time taken during the week, which is the default action of Payroll
should no note be made on the timesheet.
C. Paydays
Firefighter employees are paid quarterly with the first full bi-weekly City payroll of
each calendar year quarter. Payment is for the preceding quarter. Regular
employees of the city, including full time Fire employees as well as regular
employees from other departments that also serve as a Firefighter, shall be paid bi-
weekly.
D. Officer Pay
Firefighter Officers are paid an annual stipend on or about November 1, annually.
Regular Fire Department Employees are ineligible for the annual stipend. (See
Appendix A)
E. Direct Deposit
As permitted by Minn. Stat. § 471.426, and per City of Hutchinson Policy No. 3.32,
direct deposit of payroll is required for all employees.
F. Pay Schedule
Each of the three categories of positions will be assigned a starting pay rate. (See
Appendix B)
G. Pay Increases
Non -probationary and non -rookie Firefighters and Fire Officers are eligible for
consideration for a 0% - 4% merit/performance pay increase, annually. Performance
evaluations are completed each January for the preceding calendar year to
determine the performance pay increase percentage.
H. Modifications to the Plan
The City of Hutchinson reserves the right to modify this plan at its discretion.
I. Review of the Plan
As often as necessary, the Paid On -Call Firefighter Compensation Plan, including
appendices, shall be reviewed by the Human Resources Director and necessary
adjustments will be recommended to the City Council. It is suggested that a
comprehensive review be completed at least every five years.
J. Filing of the Plan
Upon adoption of the Resolution, a copy of the Paid On -Call Firefighter
Compensation Plan approved by the City Council shall be placed on file with the City
Administrator. The plan so filed and subsequently adjusted by the Council shall be
the Paid On -Call Firefighter Compensation Plan of the City.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON
That the following appendices are hereby adopted as the City of Hutchinson Fire
Department Officer Pay and City of Hutchinson Firefighter Position Pay Rates, to be
reviewed from time to time, as appropriate.
Adopted by the City Council this 23rd day of December, 2025. (This replaces Resolution
No.15545)
ATTEST: Gary Forcier, Mayor
Matthew Jaunich, City Administrator
Appendix A — Hutchinson Fire Department Officer Pay
Officer Position
Assistant Chief — 1 position
Battalion Chief — 2 positions
Lieutenant — 4 positions
Assistant Lieutenant — 1 position
Secretary — 1 position
Annual Officer Pay
$5,350.00
$4,350.00
$3,350.00
$2,350.00
$300.00
• A $1,000.00 differential between each position will be maintained each calendar
year.
• Chief Officers and Lieutenants receive the annual pay to offset donated hours
throughout the year for on -call coverage (approximately 686 hours per officer),
various extra meetings and trainings, and other projects completed, annually.
Revised 2024
Appendix B — Firefighter Position Pay Rates
Firefighter Pa
Position
Pay Rate
Probationary/Rookie Firefighter
$14.00 / hour
Firefighter I or Firefighter II certified Firefighter
$15.00 / hour
Fire Department Officer
$17.00 / hour
minimum
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution 15967 Adopting the 2026 Fee Schedule
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Justin Juergensen
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes): 3
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Attached is the 2026 Fee Schedule for City operations with all proposed changes shown in red.
BOARD ACTION REQUESTED:
Approve Resolution 15967 Adopting the 2026 Fee Schedule.
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
CITY OF HUTCHINSON
RESOLUTION NO. 15967
ADOPTING 2026 FEE SCHEDULE
WHEREAS, the City of Hutchinson is empowered by previously passed ordinances to
impose fees for services, and
WHEREAS, based upon the recommendation of costs for providing the services for
various city departments
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA THAT THE FOLLOWING FEE SCHEDULES ARE ADOPTED AN[
THAT THESE FEE SCHEDULES REPLACE ANY FEE SCHEDULES PREVIOUSLY APPROVE[
BY THE HUTCHINSON CITY COUNCIL.
2026 Building Permit Fee Schedule
2026 Compost/Transfer Facility Fee Schedule
2026 Event Center Fee Schedule
2026 Evergreen Reservation Fee Schedule
2026 Finance Department Fee Schedule
2026 Fire Department Fee Schedule
2026 HRA Fee Schedule
2026 Legal Department Fee Schedule
2026 Licenses and Permits Fee Schedule
2026 Liquor License Fee Schedule
2026 Mapping and Printing Service Fee Schedule
2026 Parks, Recreation, and Community Education Fee Schedule
2026 Planning and Land Use Fee Schedule
2026 Police Department Fee Schedule
2026 Public Works Fee Schedule
*Fee Schedules Attached
Adopted by the City Council this 23rd day of December 2025.
ATTESTED:
Matthew Jaunich
City Administrator
APPROVED:
Gary T. Forcier
Mayor
H TCHIN 01
CITY ON PURPOSE.
2026 FEE SCHEDULE
Proposed - 12/23/2025
City of Hutchinson
2026 Fee Schedule
Fee Schedule includes the following (in alphabetical order)
Page
- Building/Plumbing/Mechanical permits
3
- Creekside
5
- Event Center
6
- Evergreen Senior Dining
7
- Finance
7
- Fire Department
8
- H RA
8
- Legal
9
- Licenses (general)
9
- Licenses (liquor)
10
- Mapping/Printing
11
- Parks, Recreation, Community Education
12
- Plan Review
14
- Planning/Land Use
15
- Police Department
16
- Public Works: Engineering
18
Water
19
Wastewater
21
Garbage
22
Storm Water
23
Cemetery
23
Airport
24
Operations & Maintenance
24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Building/Plumbing/Mechanical Permits
Fixed Fees:
1 & 2 Family Residential Reroofing
$70.00
plus surcharge fee
$60.00
16.7 %
2022
1 & 2 Family Residential Residing
$70.00
plus surcharge fee
$60.00
16.7%
2022
1 & 2 Family Residential Window/Door Replacement
$70.00
plus surcharge fee
$60.00
16.7%
2022
Manufactured (Mobile) Home Install
$200.00
plus surcharge fee. Separate mechanical & plumbing permit
$185.00
8.1%
2011
required.
Utility Sheds
$70.00
under 200 sq. ft - surcharge does not apply.
$60.00
16.7%
2022
Moving Permit
$185.00
plus surcharge fee, includes excavation permit fee,
$175.00
5.7%
2011
if applicable
Demolition Permit
$70.00
remodels & accessory structures
$60.00
16.7%
2022
$150.00
�Residential
Residential demolition
$125.00
20.0q
$275.00
Commercial demolition
$250.00
10.0q
Residential Square Foot Valuation:
Dwellings
$150.49 /sq.ft.
Rate x Sq. Ft. to arrive at the
Construction Valuation which is
$148.96 /sq. ft.
1.0q
2024
Basements Finished
$21.00 /sq.ft.
$20.00 /sq.ft.
5.0q
2022
Unfinished
$28.04 /sq.ft.
used to calculate the actual fee
$28.04 /sq. ft.
0.0
2024
(see fee rates under Construction Valuation)
Example: 100 sq. ft. 3-Season Porch
Porches 3 Season Porch
$105.34 /sq.ft.
$104.27 /sq. ft.
1.0q
2024
4 Season Porch
$150.49 /sq.ft.
Construction Valuation = $105.34 x 100 sq. ft
$148.96 /sq. ft.
1.0q
2024
Screened Porch
$59.58 /sq.ft.
Construction Valuation = $10,534
Fee ($2,001 - $25,000 valuation range)
$53.71 /sq.ft.
10.9%
2024
Garages Attached
$58.91 /sq.ft.
$59.16 /sq. ft.
-0.4q
2024
Detached
$32.41 /sq.ft.
1st $2,000 ofvalue: $ 84.18
$32.54/sq. ft.
-0.4%
2024
Remaining value $8,534/1,000 x $16.21 $138.34
Total Fee: $222.52
Gazebo
$30.19 /sq.ft.
$28.75 /sq. ft.
5.0%
2023
Deck
$30.19 /sq.ft.
$28.75 /sq. ft.
5.0q
2023
Construction Valuation:
$1 - $1,200
$54.99
minimum valuation and permit amount
$52.37
5.0q
2017
$1,201 - $2,000
$58.46
for the first $1,200 plus $3.53 for each additional $100
$55.68
5.0q
2017
orfraction thereofto and including $2,000
$2,001 - $25,000
$84.18
for the first $2,000 plus $16.21 for each additional $1,000
$80.17
5.0q
2017
or fraction thereof to and including $25,000
$25,001 - $50,000
$475.57
for the first $25,000 plus $11.70 for each additional $1,000
$452.92
5.0q
2017
or fraction thereof to and including $50,000
$50,001 - $100,000
$782.49
for the first $50,000 plus $8.11 for each additional $1,000
$745.23
5.0q
2017
or fraction thereof to and including $100,000
$100,001 - $500,000
$1,207.91
for the first $100,000 plus $6.48 for each additional $1,000
$1,150.39
5.0q
2017
or fraction thereof to and including $500,000
$500,001 - $1,000,000
$3,930.64
for the first $500,000 plus $5.51 for each additional $1,000
$3,743.47
5.0q
2017
or fraction thereof to and including $1,000,000
$1,000,001 and Up
$6,817.47
for the first $1,000,000 plus $3.65 for each additional
$6,492.83
5.0%
2017
$1,000 or fraction thereof.
Penalty Fee
Double the Permit Fee - per City Administrator's
memo of 5-17-88
Refund Policy
Refunds may be available at the discretion of the
Building Official.
Page 3 04 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Plumbing Permit Fees:
Fixture of Item Fee $16.00 $12 per roughed -in fixture or item. Minimum of $60.00 $15.00 6.7 % 2023
Mechanical Permit Fees:
Gas Conversion Connection (switch)
$135.00
1plus surcharge fee
$125.00
8.0%
2011
Gas Appliance Replacement
$70.00
1plus surcharge fee
$60.00
16.7%
2023
Mechanical Fee
1.35%
Valuation X 1.35%-plus State surcharge.
1.25%
8.0%
2011
Minimum of $70.00 plus State surcharge.
Miscellaneous Fees:
Rental registration/inspection
$30.00 /unit
Initial inspection and 1 follow up inspection, if needed
$25.00 /unit
20.0%
2023
Rental Unit Reinspection
$70.00 /unit
Second follow-up inspection
$60.00 /unit
16.7%
2023
Double the cost of
Subsequent additional/follow-up inspections
Double the cost of
previous inspection
previous inspection
Failure to Appear at Scheduled Rental Inspection
$70.00
Fee for not showing up at scheduled inspection
$60.00
16.7%
2023
Rental Complaint Inspection
$70.00
$60.00
16.7%
2023
Existing Home Inspection (FMHA)
$130.00
$100.00
30.0%
2023
Parkland Dedication
Per subdivision ordinance
Temporary Certificate of Occupancy
Refundable Deposit
Add'I staff time and follow-up is required for temp C.O.s.
Refundable Deposit
Deposit of $500.00 required and will be refunded if final
within timeframe established by Building Department
Temporary Permits, including footing and foundation
$131.25
Temporary permits allow limited work to be done prior to
$125.00
5.0%
2011
permits and preconstruction demolition
complete plan submittal and review
All other non -specified inspections`
$80.00
Minimum fee plus State surcharge
$75.00
6.7%
2023
` or the total hourly costs of the jurisdiction, whichever is
the greatest. The cost shall include supervision, overhead
equipment, hourly wages, and fringe benefits of the
employees involved.
Fire Sprinkler Fees:
New or Additional Fire Sprinkler Systems
1.30%
Fee is equal to 1.25% (.0125) of the total fire sprinkler
1.25T[
4.0%
2011
contract amount, plus a State surcharge.
Minimum of $50 plus State surcharge.
Page 4 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Creekside
Gate Fee:
McLeod County Residential yard waste,
No Charge
ID required, Only Compostable bags accepted
No Charge
2001
leaves, grass clippings, garden waste, etc.
NO plastic bags or garbage
McLeod County Residential wood waste,
No Charge
Must be free of dirt and garbage, dirty loads will be rejected
No Charge
2001
brush and log material only
NO root balls accepted
McLeod County Residential Pallet, Crate & Demo Wood
Not Accepted
No painted, stained or treated wood accepted
Not Accepted
2001
Must be free of plastic and paper
Commercial Yardwaste - commingled or separated
$14.00 Ron
Commingled yardwaste, brush mixed. Compost bags only
$14.00 /ton
0.0 %
2025
Dirty Load Tip Fee
Varies
Loads tipped that are contaminated with garbage and have
Varies
2025
a billable tip fee will be charged 4 times the original tip fee
if the truck is not available to re -load
Re -Load Fee
$250.00 /ea
Loads that are rejected after being tipped that are
$250.00 /ea
0.0 %
2025
contaminated with garbage will be charged $250.00 to
re -load the materials on to the truck for diposal eleswhere
Commercial Source Separated Organics
$51.50 /ton
Prior approval of acceptance of materials is required
$49.00 /ton
5.1%
2025
Non-compostables not accepted, other fees may apply
Commercial Wood Waste, brush and log materials only
No Charge
Must be free of dirt and garbage, dirty loads will be rejected
No Charge
2018
NO root balls accepted
Commercial Pallets, Crates and Demo Wood
Not Accepted
No painted, stained or treated wood accepted
Not Accepted
2018
Must be free of plastic and paper
Wood Chips / Stump Grindings Disposal
No Charge
Must be free of rock, whole roots and whole limbs
No Charge
2001
Black Dirt/Sod Tear -out
No Charge
Must be free of rock, clay, garbage
No Charge
2023
Concrete and Asphalt Rubble, Clean
No Charge
As determined by Creekside staff review
No Charge
2001
Must be free of dirt, clay, rebar and other contaminants
Concrete and Asphalt Rubble, Dirty
$10.00 /ton
As determined by Creekside staff review
$10.00 Ron
0.0 %
2018
Reinforced Concrete Structures
$40.00 /ton
Includes reinforced concrete pipe (RCP), manholes,
$40.00 Ron
0.0
2023
catch basins, etc.
Certified Scale Ticket
$10.00 /ea
Per ticket issued. Customers/trucks may record their own
$10.00 /ea
0.0
2019
weights for no charge.
Equipment Rates:
Horizontal Wood Grinder
Includes operator, wheel loader to feed grinder and fuel.
Governmental Rate
$444.68 /hr
Machine repairs as a result of damage from contamination
$423.50 /hr
5.0q
2023
Rate for all other Customers
$635.25 /hr
in customer's feedstock will be billable to customer
$605.00 /hr
5.0q
2023
Subject to fuel surcharge.
Wheel Loader Governmental Rate
$109.73 /hr
Operator and fuel included, subject to fuel surcharge
$104.50 /hr
5.0q
2023
Rate for all other Customers
$138.60 /hr
$132.00 /hr
5.0q
2023
Trammel Screener Governmental Rate
$121.28 /hr
Operator, fuel and equipment to feed screener are not
$115.50 /hr
5.0q
2023
included in this rate.
Rate for all other Customers
$173.25 /hr
$165.00 /hr
5.0q
2023
65' Radial Stacking Conveyor
$20.79 /hr
Operator and fuel not included
$19.80 /hr
5.0q
2023
Portable Light Tower Rental
$126.00 /event
Cost is per unit, two units available to rent
$120.00 /event
5.0q
2024
Mobilization Charges
$132.83 /hr
Roundtrip for delivery and pickup of equipment to and from
$126.50 /hr
5.0q
2023
customer's job site. Subject to fuel surcharge.
Page 5 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Event Center
Great Room: Monday -Thursday
Friday, Saturday, Holidays
Sunday
Linen Service Fee
`"'„edd ng i Qu nGeana:a
$375.00
$750.00
$500.00
$100.00
$2,626.00
Seating up to 525 dinner or 1,100 theatre
$350.00
$700.00
$475.00
$95.00
7.1%
7.1%
5.3%
5.3%
5.99A
2017
2017
2018
2013
2019
Half Great Room: Monday -Thursday
Friday, Saturday, Holidays
Sunday
Linen Service Fee
$200.00
$475.00
$325.00
$50.00
Seating up to 250 dinner or 550 theatre
$190.00
$450.00
$300.00
$50.00
5.3%
5.6%
8.3%
0.0%
2018
2018
2018
2013
Quarter Great Room: Monday -Thursday
Friday, Saturday, Holidays
Sunday
Linen Service Fee
`"'Weld ng i Qu nGeana:a
$125.00
$245.00
$200.00
$25.00
$ 35.08
Seating up to 100 dinner or 125 theatre
$100.00
$225.00
$175.00
$25.00
$700.90
25.0%
8.9%
14.3%
0.0%
9 0%
2017
2014
2017
2013
2&49
Meeting Room: Ambassador
Westlund
McCormick
$30.00
$30.00
$30.00
Seating for 40-two hour minimum
$25.00
$25.00
$25.00
20.0%
20.0%
20.0%
2017
2017
2017
Program Room: Cash Wise
MidCountry
Steams
Hoefer
$150.00
$50.00
$50.00
$50.00
Seating for 75 - two hour minimum
Seating for 15 - two hour minimum
Seating for 15 - two hour minimum
Seating for 15 - two hour minimum
$125.00
$25.00
$25.00
$25.00
20.0%
100.0%
100.0%
100.0%
2013
2018
2018
2018
$341.26
$326.09
5.0%
2019
$131.26
$126.09
5.0%
2019
0-4-1449J-4-
$31-60
$30.09
5.0%
2013
a:"d-Pfe"Gt-
$31-69
$30.09
5.99A
2013
$0458
$90.09
5.0%
Po13
$131.25
$126-09
5.5%
2013
RediI M
$12.60
$12.09
5.0%
2013
Red um w th M GFephene
$42.00
$40-99
5.0%
201A
A4-l�tereP6�ae
$42.00
$40-99
5.0%
201A
T" °�- "��
$36,76
$36-99
5.0%
201A
VGR4�-�., Gr-D44ayer
$26.25
$26-99
5.0%
201A
$0-00
Ne Gharge
$0-99
B-0%
2013
Rune
W.60
$30.90
5.0%
Po13
Refundable Damage DepeG#$315levent-
$399 !event-
5.0%
POI
$45 Aay-
$14.00 kkw-
7.4-h
Polk;
$43.00 !day-
$47-90 kkW-
5.iA-h°
POI
6eNee-
$1575 QO eups
$21.00130tups
$15.90 Q0 eups
$2&40/6 sups
F, 0%
&"1
2014
2044
Page 6 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Taped-�
$15.75 Flay-
$a3-99 Aay-
5-Q4
29T8
T;-B�
$24--00 Ploy-
$20-00 Ploy-
fi Q%
291&
€-��
$84.09 Fday-
$80.09 Fday-
F, 0%
2017
€eed-Fee-Srn�
$62-59 Flay-
$50-00 Fday-
9 0%
2014
$4-051plaee G2t inn
Food Yend9F may add ad
$4-W ipl'aGe Lett ng
5 0%
2013
$8-40 Flay-
$8-00 Fday-
9 0%
2013
3ryeakeF-R#eRe
$26 25 /day-
$25.09 Fday-
&404
2018
Evergreen Senior Dining
Dining Room & Kitchenette
$105.00
$100.00
5.0 %
2009
Carpeted Room
$65.00
$60.00
8.3 %
2009
After Hours Open or Lock -up
$55.00
$50.00
10.0 %
2007
Damage Deposit
$105.00
Separate check to be returned when keys are returned
and if rooms are cleaned up and no damage has occurred
$100.00
5.0 %
2007
Finance
Returned check from the bank (NSF or Closed Account)
$15.00
Administrative Fee
$10.00
50.0q
2023
Returned Online Payment -ACH, Credit Card or Bank Checks
$15.00
Administrative Fee
$10.00
50.0q
2023
Lodging Tax - City of Hutchinson
3.00q
per City ordinance 116.01 Set by City Ordinance
3.00 %
0.0
1989
Lodging Tax - penalty for late payment
10.00q
per City ordinance 116.22 Set by City Ordinance
10.00 %
0.0 %
1989
Local Option Sales Tax:
Local Sales Tax Rate
Local Excise Tax
Local Excise Tax - Late Fee
0.50%
$20.00
10.00 %
On retail sales made within, or delivered within, the city limits
of Hutchinson. The tax applies to sales that are taxable
under the Minnesota sales and use tax laws.
Per new or used vehicle sold by a dealer located within
Hutchinson, in lieu of the Local Sales Tax Rate.
Dealers are required to report excise tax by the 15th day of
the following month. The late fee shall be imposed if not
paid by the 20th day of the following month.
0.50 %
$20.00
10.00q
0.0%
0.0
0.0
2012
2012
2017
Tax Increment Financing (TIF) Application Fee
- as approved by the Hutchinson EDA on 11/28/2018
Variable
Amount as determined within the City's Business Subsidy
Policy.
15,000.00
0.0 %
2019
Page 7 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Fire De artment 2021 fee changes as recommended by the McLeod County Fire
p Chiefs Association, for consistency purposes
Fire Engine
$250.00 /hr
Each hour on scene
$250.00 /hr
0.0
2021
Platform Truck (Ladder)
$350.00 /hr
Each hour on scene
$350.00 /hr
0.0
2014
Water Tanker Truck
$175.00 /hr
Each hour on scene
$175.00 /hr
0.0
2021
Grass Truck/Unit
$150.00 /hr
Each hour on scene
$150.00 /hr
0.0
2021
Utility Truck with 2 Firefighters
$100.00 /hr
Each hour on scene
$100.00 /hr
0.0
2021
ATV/UTV with 2 Firefighters
$150.00 /hr
Each hour on scene
$150.00 /hr
0.0
2021
Boat with 2 to 4 Firefighters
$150.00 /hr
Each hour on scene
$150.00 /hr
0.0
2021
Air Supply Unit
$75.00 /hr
Each hour on scene
$75.00 /hr
0.0
2021
Rescue
$200.00 /hr
Each hour on scene
$200.00 /hr
0.0
2021
HERT Trailer (Haz-Mat)
$50.00 /hr
Each hour on scene
$50.00 /hr
0.0
2010
Incident Commander (IC)
$50.00 /hr
Each hour on scene
$50.00 /hr
0.0
2014
Certified Firefighter
$30.00 /hr
Each hour on scene
$30.00 /hr
0.0
2014
Repeat False Alarm (ie: faulty alarm systems)
$500.00 /occurence
Calculation based on the apparatus and labor charges per
each hour on scene
$500.00 /occurence
0.0
2017
Fire Safety Inspection
$50.00
Daycare/Foster Care units, Basic Commercial and
Residential include one free re -inspection
$50.00
0.0
2017
Fire Incident Reports (paper or electronic copies)
$0.25 /page
N/A
Pictures included in report
$0.25 /page
N/A
0.0
2021
2017
Fireworks:
Fireworks Only Business & Tent Sales
Other retailers
$350.00
(Jan 1 - Dec 31)
$100.00
(Jan 1 - Dec 31)
Fees are the Maximum amount allowed by State Statute
License fee is non-refundable, cannot be prorated,
and cannot be waived
License fee is non-refundable, cannot be prorated,
land cannot be waived
$350.00
(Jan 1 - Dec 31)
$100.00
(Jan 1 - Dec 31)
0.0
0.0%
2010
2010
HRA
Pre Energy Audit /Post Ener Audit
Variable
Current Contractor Fee
Variable
0.0
2022
Subordination Request Processing Fee
$100.00
$100.00
0.0
2003
Duplicate Document Fee
$50.00
$50.00
0.0
2007
GMHF & CRV Gap Loan Admin Fee
$500.00
$500.00
0.0
2017
SCDP Rental Rehab Project & Revolving Loan Admin Fee
15.00%
Percentage of SCDP Loan
15.00q
0.0
2022
HRA Entry Cost Loan Admin Fee
$400.00
$400.00
0.0
2014
Revolving New Const. Gap Loan Admin Fee
$700.00
$700.00
0.0
2016
Credit Report Fee
Variable
Current Contractor Fee
Variable
0.0
2023
Lead Risk Assessment & Lead Clearance Testing
Variable
Current Contractor Fee
Variable
0.0
2023
City Deferred Grants Administration Fee (TI F)
10.00q
Percentage of loan amount
10.00q
0.0
2016
FUF/CFUF & HHILP Title Search Fee
$50.00
$50.00
0.0
2017
FUF/CFUF & HHILP Loan Document Preparation Fee
$75.00
$75.00
0.0%
2023
FUF/CFUF & HHILP Loan Origination Fee
1.00%
Percentage of loan amount
1.00%
0.0%
2008
HRA HILP ,an Application Fee
$350.00
$350.00
0.0%
2016
Housing Quality Standards (HQS) Inspection Fee
$600.00
$600.00
0.0%
2017
Page 8 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Legal
Attorney's Fees for Litigation
$160.00 /hr
Charged per 1/4 hour
$150.00 /hr
6.7%
2019
Paralegal's Fees for Litigation
$80.00 /hr
Charged per 1/4 hour
$75.00 /hr
677
2019
Contract Review Fee
$160.00 /hr
Charged per 1/4 hour
$150.00 /hr
6.7%
2019
Attorney's Fees for Rental Registration Prosecution
$160.00 /hr
Charged per 1/4 hour
$150.00 /hr
6.7%
2019
Paralegal's Fees for Rental Registration Prosecution
$80.00 /hr
Charged per 1/4 hour
$75.00 /hr
6.7 %
2019
Dangerous Dog Designation Hearing
Up to $1,050.00
Up to $1,000.00
5.0%
2008
Licenses
Carnival
$550.00
Refundable deposit
$525.00
4.8%
2009
Chicken Licensing Initial Fee
$50.00
Annual License
New for 2026
0.0%
2026
Renewal Fee
$25.00
Temporary License - for up to 3 consecutive days
New for 2026
0.0%
2026
Cannabis Licensing Microbusiness Registration
$0.00
State Requirement
New for 2026
0.0%
2026
Microbusiness Renewal
$1,000.00
peryear
New for 2026
0.0%
2026
Mezzobusiness Registration
$500.00
New for 2026
0.0%
2026
Mezzobusiness Renewal
$1,000.00
peryear
New for 2026
0.0%
2026
Retailer Registration
$500.00
New for 2026
0.0%
2026
Retailer Renewal
$1,000.00
peryear
New for 2026
0.0%
2026
Medical Combination Business Registration
$500.00
New for 2026
0.0%
2026
Medical Combination Business Renewal
$1,000.00
peryear
New for 2026
0.0%
2026
Lower -Potency Hemp Edible Retailer Registration
$125.00
New for 2026
0.0%
2025
Lower -Potency Hemp Edible Retailer Renewal
$125.00
peryear
New for 2026
0.0%
2025
Dance Permit (short term)
$60.00
$55.00
9.1%
2009
Food Cart
$135.00
Annual License
$125.00
8.0
2013
$30.00
Temporary License -for up to 3 consecutive days
30.00
0.0
2020
Garbage & Refuse Haulers:
Commercial
$135.00
January 1 - December 31
$125.00
8.0
2009
Residential
$135.00
January 1 - December 31
$125.00
8.0
2009
Recycling
$60.00
January 1 - December 31
$55.00
9.1%
2009
Recycling
$30.00 /day
I Per Day
$30.00 /day
0.0
2009
Page 9 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Massage Services
$185.00
January 1 - December 31
$175.00
5.7%
2009
Peddler/Solicitor/Transient Merchant
$135.00
$30.00
Annual License
Temporary License -for up to 3 consecutive days
$125.00
30.00
8.0%
0.0%
2009
2020
Pawn Shops and Precious Metal Dealers
$135.00
January 1 - December 31
$125.00
8.0%
2009
Second Hand Goods Dealers
$135.00
January 1 - December 31
$125.00
8.0%
2009
Short -Term Gambling
$35.00
Short Term
$30.00
16.7%
2009
Shows/Exhibitions
$105.00
Short Term
$100.00
5.0%
2010
Tattoo License
$185.00
January 1 - December 31
$175.00
5.7%
2009
Taxi Cab License (per cab)
$6.00 /cab
January 1 - December 31
$5.00 /cab
20.0%
2009
Tobacco License
$185.00
January 1 - December 31
$175.00
1 5.7%
2009
Liquor Licenses:
Club Liquor License
Under 200 Members
201 - 500 Members
501 - 1000 Members
1001 -2000 Members
2001 -4000 Members
4001 -6000 Members
Over 6000 Members
$300.00
$500.00
$650.00
$800.00
$1,000.00
$2,000.00
$3,000.00
Club fees are currently maximum amount per State Statute
January 1 - December 31
January 1 - December 31
January 1 - December 31
January 1 - December 31
January 1 - December 31
January 1 - December 31
January 1 - December 31
$300.00
$500.00
$650.00
$800.00
$1,000.00
$2,000.00
$3,000.00
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%1
2009
2009
2009
2009
2009
2009
2009
Consumption & Display
$265.00
$30.00 /event
January 1 - December 31, Set by statute, max of $300
Temporary
$250.00
$25.00 /event
6.0%
20.0%
2012
2012
Wine License
$450.00
January 1 - December 31; Set by statute, max of $1,000
$425.00
5.9%
2009
On -Sale Malt Liquor License
$325.00
January 1 - December 31
$300.00
8.3%
2022
On -Sale Intoxicating Malt Liquor & Wine License
$630.00
January 1 - December 31
$600.00
5.0%
2009
On -Sale Intoxicating Liquor License
$2,100.00
January 1 - December 31 (prorate, refundable)
$2,000.00
5.0%
2015
On -Sale Sunday Intoxicating Liquor License
$135.00
$105.00
January 1 - December 31, Set by statute, max of $200
Temporary License (One Day)
$125.00
$100.00
8.0%
5.0%
2009
2009
On -Sale 3.2 Malt Liquor License
$450.00
$80.00
January 1 - December 31 (nonrefundable)
Short Term (up to seven days in a calendar year)
$425.00
$75.00
5.9%
6.7%
2009
2013
Off -Sale 3.2 Malt Liquor License
$325.00
January 1 - December 31 (nonrefundable)
$300.00
8.3%
2009
Temporary Liquor License
$135.00
$125.00
8.0%
2013
Intoxicating Liquor Investigations
$400.00
Nonrefundable
$375.00
6.7%
2009
3.2 Malt Liquor Investigations
$135.00
Nonrefundable
$125.00
8.0%
2009
Caterer's Permit
$105.00
$325.00
Per Event
jAnnual
$100.00
1 $300.00
5.0%
8.3%
2010
2010
Brewer (off -sale)
$400.00
Annual
$375.00
6.7%
2014
Brew pub off -sale
$400.00
Annual
$375.00
6.7%
2014
Taproom (on -sale)
$630.00
lAnnual
$600.00
5.0%
2014
Page 10 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Mapping and Printing
Comprehensive Plan
Book
DC
Color Copy with Foldouts
$25.00
$15.00
$75.00
Website copy available free of charge
Fourbooks
$25.00
$15.00
$75.00
0.0%
0.0
0.0
2009
2009
2009
Subdivision Ordinance
$20.00
$20.00
0.0
2009
Zoning Manual
$20.00
$20.00
0.0
2009
Zoning/Shoreland/Subdivision Manual
$40.00
$40.00
0.0
2009
Joint Planning Area Zoning Manual
$20.00
$20.00
0.0
2009
Subdivision Agreement
$1.00 /page
$1.00 /page
0.0%
2009
8 1/2" X 11"- Black & White print
$0.25 /page
$0.25 /page
0.0%
2009
8 1/2" X 11"- Color print
$1.50 /page
$1.50 /page
0.0%
2009
Legal or Tabloid Size - Black & White print
$1.00 /page
$1.00 /page
0.0%
2009
Legal or Tabloid Size - Color print
$3.00/page
$3.00/page
0.0%
2009
18" X 24" - Black & White print
$1.50 /page
$1.50 /page
0.0
2009
18" X 24" - Color print
$4.50 /page
$4.50 /page
0.0
2009
24" X 36" - Black & White print
$3.00 /page
$3.00 /page
0.0
2009
24" X 36" - Color print
$9.00 /page
Small city zoning map
$9.00 /page
0.0
2009
36" X 36" - Black & White print
$4.50 /page
$4.50 /page
0.0
2009
36" X 36" - Color print
$14.00 /page
$14.00 /page
0.0
2009
36" X 48" - Black & White print
$6.00 /page
$6.00 /page
0.0
2009
36" X 48" - Color print
$18.00 /page
$18.00 /page
0.0
2009
Roll Paper Printing
$1.50 /sq. ft.
$1.50 /sq. ft.
0.0
2009
Specialty Map preparation
$27.50 /hr
Map printing at charges noted above, one hour minimum,
1/4 hour increments thereafter, approved by City IT director
$27.50 /hr
0.0
2009
8 1/2" X 11"
$5.00
Color orthophoto prints
$5.00
0.0
2009
Legal or Tabloid
$9.00
Color orthophoto prints
$9.00
0.0%
2009
18" X 24"
$20.00
Color orthophoto prints
$20.00
0.0%
2009
24" X 36"
$30.00
Color orthophoto prints
$30.00
0.0%
2009
36" X 36"
$40.00
Color orthophoto prints
$40.00
0.0
2009
36" X 48"
$50.00
Color orthophoto prints
$50.00
0.0
2009
Digital Data Orthophoto
$550 /sq.mile
Minimum charge of $550.00
$550 /sq.mile
0.0
2009
Digital Data Contours
$550 /sq.mile
Minimum charge of $550.00
$550 /sq.mile
0.0
2009
Digital Data Planimetrics
$250 /sq.mile
Minimum charge of $250.00
$250 /sq.mile
0.0
2009
- Purchase a combination of all three data sets for $1,350 /sq. mile not to exceed a maximum charge of $18,100
- Special mapping requests = Data Price + $50 /hr
- All data is provided in Arcview Shape File format on a CD
- An additional $50 charge will be applied to digital data converted to a .dxf format for CAD systems
- The City reserves the right to waive fees by Council direction for other governmental organizations. Commercial -type printing of private,
Page 11 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Parks, Recreation & Community Education
Note: All PRCE fees are subject to change due to factors including, but not limited to: facility availability, holidays, weather related cancellations, equipment need changes
Aquatic Center:
Daily Admission All Swimmers
$9.00
$8.00
12.5%
2022
24 months and younger
$5.00
FREE
2026
spestaters
$4-09
$4-09
201-7
After 5pm
$6.00
$5.00
20.0q
2017
Fitness Time
$6.00
morning fitness, lap swim, river walking
$5.00
20.0q
2022
Tot Time (ages 5 and under)
$5.00
designated Tot Times (zero depth entry only)
New in 2026
0.0 %
2026
Group Rate (30+ Swimmers)
$8.00
per swimmer
New in 2026
0.0 %
2026
Season Pass Individual
$125.00
includes morning fitness, lap swim, river walking
$100.00
25.0q
2022
Each additional family member
$50.00
example: $275 for a family of four ($125+$50+$50+$50)
$40.00
25.0q
2022
Senior (age 60 years+)
$100.00
includes morning fitness, lap swim, river walking
$85.00
17.6%
2022
Discount Tickets 12 admissions
$85.00
$72.00
18.1%
2022
Rentals Party Tent Rentals
$30.00
for 2 hours
$20.00
50.0q
2017
Swimming Pool Full Pool Rental
$350.00
perhour
$350.00
0.0
2025
Youth Sports/Activities:
Adaptive Recreation
$6.00
per session
$5.00 /session
20.0 %
2017
T-Ball / Tiger Ball (PreK - Grade 2)
$55.00
$45.00
22.2%
2022
Girls Fastpitch Softball
$150.00
81.1
Various
0.0
2024
$225.00
101.1
Various
0.0
2024
$250.00
12U
Various
0.0
2024
$285.00
14U and High School
Various
0.0
2024
Baseball (Grades 3 - 8)
Fee to Association
Association determines the fee
Fee to Association
Basketball: K - Grade 1
$45.00
$40.00
12.5%
2022
Grades 2 - 3
$65.00
$55.00
18.2%
2022
Grades 4 - 8
Fee to Association
Association determines the fee
Fee to Association
Football: Flag
$45.00
$35.00
28.6%
2022
Tackle
$100.00
$80.00
25.0q
2022
Soccer: Indoor
$45.00
$35.00
28.6%
2022
Outdoor. Grades K-3
$45.00
$35.00
28.6%
2022
Outdoor. Grades 4-6
$60.00
$50.00
20.0q
2022
Figure Skating: Tots -Delta
$100.00
$90.00
11.1%
2023
Sunday Practice
$125.00
$96.00
30.2%
2023
Open Skating Pass: Individual
$75.00
$60.00
25.0q
2018
Each Additional Family Member
$25.00
New in 2026
0.0 %
2026
Open Skating: Open Skate
$6.00
per person per day
$5.00
20.0q
2024
Swimming Lessons Group Lessons
$60.00
8lessons
$50.00
20.0q
2022
Semi -Private Swim Lessons
$130.00
4lessons -2 participants
$100.00
30.0q
2024
Private Swim Lessons
$75.00
4 lessons - 1 participant
$60.00
25.0q
2024
Open Hockey
$6.00
per person per day
$5.00
20.0q
2001
Page 12 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Other Fees:
West River Park Camping:
Group Tent Site
$75.00
$50.00
50.0%
2024
Tents
$25.00
$20.00
25.0%
2023
Electric Hook -Up
$35.00
$30.00
16.7%
2023
Water, Sewer, Electric
$45.00
$40.00
12.5%
2023
Campground Cleaning Fee
$55.00
$50.00
10.0%
2024
Field Rental Tier 1 (based on park/field amenities)
$50.00
per game
$50.00
0.0%
2023
Tier 2 (based on park/field amenities)
$75.00
per game
New in 2026
0.0%
2026
Tier 3 (based on park/field amenities)
$100.00
per game
New in 2026
0.0%
2026
Field Setup/Striping First Time Field Set Up
$250.00
$250.00
0.0%
2024
Restriping or Relining
$125.00
$125.00
0.0%
2024
Roberts Park Lights for Fields
$25.00
per field per game
$20.00
25.0%
2025
Tournament Field Rental Fees
Full Day Rental
$850.00
includes one field maintenance staff & equipment
New in 2026
0.0 %
2026
Half Day Rental
$425.00
includes one field maintenance staff & equipment
New in 2026
0.0%
2026
Maintenance Fee
$50.00
per additional maintenance staff
$80.00
-37.5%
2025
VMF Field: Day Game
$150.00
per hour
$100.00
50.0%
2025
Night Game
$200.00
per hour
$150.00
33.3%
2025
Shelter reservation Tier 1 (based on park amenities)
$50.00
per day
$30.00
66.7%
2020
Tier 2 (based on park amenities)
$75.00
per day
$50.00
50.0%
2025
Tier 3 (based on park amenities)
$100.00
per day
$75.00
33.3%
2025
Masonic West River Stage Rental
$250.00
per rental (required to also rent West River Shelter)
$75.00
233.3%
2025
Masonic West River Stage Electrical Panel Access
$100.00
per event
$50.00
100.0%
2024
Depot building rental - 25 Adams St SE
$150.00
per day
$120.00
25.0%
2025
$75.00
prevent day rental
New in 2026
0.0%
2026
Depot pavilion rental -25 Adams St SE
$75.00
per rental (required to also rent depot building)
$50.00
50.0%
Church rental - 105 2nd Ave SE
$300.00
per day
$250.00
20.0%
2025
$150.00
pre -event day rental
$125.00
20.0%
2025
Bleachers
$50.00
per 3 rows
$30.00
66.7%
2025
Picnic Tables
$25.00
per table -with three-day rental, four table minimum
$20.00
25.0%
2023
Garden Plot
$50.00
10' x 20'
$40.00
25.0%
2022
Open Gym Daily
$6.00
per person
$5.00
20.0%
2024
Open Gym Punch Pass
$55.00
per 10 visits
$45.00
22.2%
2024
Open Pickleball
$6.00
per person
$5.00
20.0%
2025
Open Pickleball Punch Pass
$55.00
per 10 visits
$45.00
22.2%
2025
Outdoor Pickleball Rental
$20.00
per court per hour
New in 2026
0.0%
2026
Pickleball Courts Toumament Fee
$400.00
per day
New in 2026
0.0 %
2026
Pickleball Season Pass
$225.00
per season (October -April)
$200.00
12.5%
2025
Page 13 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Park Elementary Warming House
$100.00
perday
New in 2026
0.0%
2026
Indoor Playground: Child
$6.00
per child
$5.00
20.0%
2024
Family
$10.00
per family
$7.00
42.9%
2024
Family Playground Pass
$125.00
per season (October - April)
$75.00
66.7%
2025
Civic Arena (dry floor):
First Full Day
$1,000.00
per day
$600.00
66.7%
2001
Half Da
Additional Day
$376..90
$500.00
4/2-day
each additional day
$350.00
$300.00
71%
66.7%
2010
2001
Dry Floor
$125.00
per hour
$80.00
56.3%
2024
Rec Center: Basketball Rental (during PRCE Office Hours Only)
$30.00
per court per hour
$25.00
20.0q
2024
Volleyball Rental (during PRCE Office Hours Only)
$30.00
for either one or two courts per hour
$25.00
20.0q
2024
Pickleball Rental (during PRCE Office Hours Only)
$20.00
per court per hour
$15.00
33.3%
2024
Gym
$800.00
per day
$600.00
33.3%
2023
Gym
Qf.,-
$75.00
per hour(2 hour minimum)
$50.00
50.0q
9
2023
Re.,
Concession Stand (with equipment)
$106.00
$250.00
peF-day
per day
$100.00
$200.00
0%
1 25.0q
2019
2018
Civic Arena: Ice Time
$210.00 or Per Contract
Hourly rate per contracted agreements with user groups
$200.00 or Per Contract
5.0q
2025
Transfers
$5.00
per person per class
$5.00
0.00X
2019
Cancellations
$10.00
ideducted from refund
$5.00
100.O7
2019
***Team Fees Are Non -Refundable -
Plan Review Staff noted these fees are tied to value. As values increase, so do the fees.
Plan Review is 65% of the building permit fee
Plan Review Fee for similar plans is 25% of Building Permit Fee (per MN Rule 1300.0160)
All other non -specified valuations to be determined by Building Official.
State Surcharge Fee:
Permits with Fixed Fees
$1.00
Surcharge for mobile home, demolition, moving, excavation,
$1.00
0.0
2011
residential remof, residential reside, residential window or
door replacement, and utility sheds over200 sq.ft.
Valuation up to $1,000,000
Mil (.0005) X
Mil (.0005) X Valuations up to $1,000,000
Mil (.0005) X
2011
Valuations
Valuations
$1,000,000 to $2,000,000
Valuation -
Valuation - $1,000,000 X .0004 + $500.00
Valuation -
2011
$1,000,000 X .0004
$1,000,000 X .0004
+ $500.00
+ $500.00
$2,000,000 to $3,000,000
Valuation -
Valuation - $2,000,000 X .0003 + $900.00
Valuation -
2011
$2,000,000 X .0003
$2,000,000 X .0003
+ $900.00
+ $900.00
$3,000,000 to $4,000,000
Valuation -
Valuation - $3,000,000 X .0002 + $1,200.00
Valuation -
2011
$3,000,000 X .0002
$3,000,000 X .0002
+ $1,200.00
+ $1,200.00
$4,000,000 to $5,000,000
Valuation -
Valuation - $4,000,000 X .0001 + $1,400.00
Valuation -
2011
$4,000,000 X .0001
$4,000,000 X .0001
+ $1,400.00
+ $1,400.00
$5,000,000 and over
Valuation -
Valuation - $5,000,000 X .00005 + $1,500.00
Valuation -
2011
$5,000,000 X .00005
$5,000,000 X .00005
+ $1,500.00
+ $1,500.00
Page 14 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Planning and Land Use
After the Fact
Double permit fee
Double permit fee
Annexation
$600.00
+ $5 per acre
Includes annexation fee to be paid to State
$450.00
+ $5 per acre
33.3 %
2011
Comprehensive Plan Amendment
$450.00
$400.00
12.5q
2023
Commercial Parking Lot
$175.00
$325.00
Overlay
Reconstruction
$150.00
$300.00
16.7%
8.3%
2016
2016
Rezoning
$500.00
Includes recording fees
$450.00
11.1%
2023
Vacation of street, alley, or easement
$500.00
Includes recording fees
$425.00
17.6%
2023
Lot Splits (Single and Two Family)
$300.00
Includes recording fees
$275.00
9.1%
2023
Lot Splits (Multiple Family, Commercial, Industrial)
$400.00
Includes recording fees
$350.00
14.3%
2023
Planned Unit Development
$800.00
Includes recording fees
$700.00
14.3%
2023
Platting: Preliminary Plat
Final Plat
$600.00
+ $10 per lot
$300.00
+ $10 per lot
Plus recording and legal fees
Plus recording and legal fees
$500.00
+ $10 per lot
$250.00
+ $10 per lot
20.0%
20.0%
2023
2017
Residential Curb Cut, Driveway Apron, and Hard
Surfacing Driveway Permit
$70.00
$60.00
16.7%
2023
Site Plan
$500.00
$450.00
11.1%
2023
Special Meeting
Double permit fee
Includes $30 payment to Planning Commissioners
in attendance
Double permit fee
Trees
$325.00
Per tree
$300.00
8.3%
2012
Variances
$450.00
Includes recording fees
$400.00
12.5%
2023
Zoning Letters Non -Flood Zoning Letters
Flood Zoning Letters
$100.00
$100.00
Per property address
Per property address
$75.00
$75.00
33.3%
33.3%
2019
2019
Conditional Use Permits
$450.00
Includes recording fees
$400.00
12.5%
2023
Land Use Permit
$70.00
$60.00
16.7%
2023
Portable/Temporary Sign Permit
$70.00
Per permit, three permits per calendar year
$60.00
16.7%
2011
Sandwich Board Sign Permit
$70.00
Peryear
$60.00
16.7%
2011
Sign Permit
$1.05 /sq.ft.
$70.00 minimum
Per square foot with a minimum fee of $70.00
1
$1.00 /sq.ft.
$60.00 minimum
5.0%
2011
NOTE: Application fees include public hearing publication, preparation of maps, public notice mailings, agenda preparation, meetings,
site visits, filing fees for the County, administrative expenses, etc.
Page 15 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Police Department
Animal License Tag (Dog/Cat)
$10.00
Cost is waived if pet is spayed, neutered or implanted with a
$10.00
0.0
2007
microchip.
ATV / Golf Cart Licenses
$50.00
3 year license
$45.00
11.1 q
2016
Bicycle Licenses
$5.00
$5.00
0.0
2007
Dangerous Dog Designation Registration
$125.00
$100.00
25.0
2024
Animal Impound
$60.00
$50.00
20.0
2007
Animal Maintenance/Kennel Fee:
Initial kennel fee - first day
$45.00
applies to both cats and dogs
$45.00
0.0
2025
Dogs - kennel fee after first day
$23.00 /day
per day following the initial kennel fee
$23.00 /day
0.0
2025
Cats - kennel fee after first day
$16.00 /day
per day following the initial kennel fee
$16.00 /day
0.0
2025
Quarantee Boarding
$40.00 /day
$40.00 /day
0.0
2025
Vaccination fee
$5.00
applies to both cats and dogs
$5.00
0.0
2015
Testing fee
$44.00
applies to cats only
$44.00
0.0
2024
Audio/Video Magnetic Media
$35.00 /item
Per item
$30.00 /item
16.7%
2007
Citizen Weapon Storage
$1.00 /day
New state law allows citizens to bring personal weapons into
$1.00 /day
0.0
2015
the Police Department for safekeeping.
$26.26 !week-
$26.00 !week-
9 0%
2007
Finger Printing
$30.00
$30.00
0.0
2022
Photographs
$3.00 /page
Per page
$2.00 /page
50.0
2007
Police Report Copies: Walk In
$0.25 /page
Per page
$0.25 /page
0.0%
2007
Mail or Fax
$5.00
$5.00
0.0
2007
Police Service of Papers
$80.00
$70.00
14.3%
2024
Security
$75 /hr/officer
For events with alcohol, we require at least one Hutchinson
$67 /hr/officer
11.9%
2025
police officer on duty until the end of the event (minimum of 4
hours). For groups of 250 or more, a second officer may be
required for the final 4 hours of the event. The fee for each
officer is $75/hr. Please refer to 'Rental Policy".
Vehicle Impound Storage
1 $15.00 /day
lPerday
1 $10.00 /day
1 50.0
2007
Page 16 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
The following are court assessed fees for violation of specific ordinances
ATV Traffic Control Regulations
$125.00
Ordinance No. 73.15
$125.00
0.0%
2012
City Parking Lots & Rams
$25.00
Ordinance No. 72.08
$25.00
0.0%
2012
Dog at Large
$50.00
Ordinance No. 93.18
$50.00
0.0%
2012
Dog Without License
$25.00
Ordinance No. 93.18
$25.00
0.0%
2012
Drive through private property to avoid traffic control device
$85.00
Ordinance No. 71.08
$85.00
0.0%
2012
Emer ncy Parking Prohibition
$100.00
Ordinance No. 72.05
$100.00
0.0%
2012
Equipment Requirements/Muffler
$50.00
Ordinance No. 73.03
$50.00
0.0%
2012
Excessive Vehicle Noise Prohibited
$85.00
Ordinance No. 71.11
$85.00
0.0%
2012
Fail to Remove Animal Waste
$30.00
Ordinance No. 93.01
$30.00
0.0%
2012
Fire Lanes, Rush Hour Traffic
$50.00
Ordinance No. 72.13
$50.00
0.0%
2012
Loading Zone
$25.00
Ordinance No. 72.09
$25.00
0.0%
2012
Motor-home/Trailer/Rec vehicle park restriction
$25.00
Ordinance No. 72.07
$25.00
0.0%
2012
Motorized Scooters
$85.00
Ordinance No. 73.17
$85.00
0.0%
2012
No Burning Permit in Possession
$100.00
Ordinance No. 92.62
$100.00
0.0%
2012
No Parking
$25.00
Ordinance No. 72.04 (b) 3
$25.00
0.0%
2012
No Parking -Bike Lane
$25.00
Ordinance No. 70.05
$25.00
0.0%
2012
No Parking -Snow Emergency
$50.00
Ordinance No. 72.15
$50.00
0.0%
2012
Nuisance Parking
$25.00
Ordinance No. 92.19
$25.00
0.0%
2012
Parallel Parking
$25.00
Ordinance No. 72.02
$25.00
0.0%
2012
Parking for Advertising or Sale Prohibited
$50.00
Ordinance No. 72.11
$50.00
0.0%
2012
Parking/Standing/Stopping Prohibited
$25.00
Ordinance No. 72.01
$25.00
0.0%
2012
Phvsicallv Handicapped Parking
$200.00
Ordinance No. 72.12
$200.00
0.0%
2012
Possession of uncased loaded firearm
$125.00
Ordinance No. 130.05
$125.00
0.0%
2012
Residential zoning district violation
$40.00
Ordinance No. 154.056
$40.00
0.0%1
2012
Traffic Congestion Street/Restriction/Exemption
$25.00
Ordinance No. 71.06
$25.00
0.0%
2012
Truck Parking Restricted
$25.00
Ordinance No. 72.06
$25.00
0.0%
2012
Use of Bike/Skateboards/Rollerskates/Like
$25.00
Ordinance No. 73.31
$25.00
0.0%
2012
U-Tums Restriction
$25.00
Ordinance No. 71.04
$25.00
0.0%
2012
Vehicle repair on street/public parking lot restriction
$85.00
jordinance No. 72.1
$85.00
0.0%
2012
Violate Angle Parking Ordinance
$25.00
jordinance No. 72.03
$25.00
0.0%
2012
Violate motorized golf cart ordinance
$50.00
iordinance No. 73.16
$50.00
0.0 %
2012
Violation of Time Limit Parkin
$25.00
Ordinance No. 72.04
$25.00
0.0%
2012
Water Shortages/Rest Use/Hours
$100.00
jordinance No. 52.06
$100.00
0.0%
2012
Page 17 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Public Works
Engineering:
* Design Review
3.00
Review of site and grading plans and/or plans and
3.00 %
0.0%
2002
specifications prepared by developer, or preliminary
engineering of reconstruction plans.
Final Design
6.00
Preparation of project plans and specifications in-house.
6.00%
0.0
2002
Construction Review and Staking
6.00
Includes on -site and off -site construction services. Private
6.00%
0.0
2002
developers must provide survey control and may complete
this work with a consultant approved by the City and pay
these costs directly.
* Preliminary Development
1.00
Plan review, City approval process, and preparation of
1.00%
0.0%
2002
developer, subdivision and/or development agreements.
Contact Administration
2.00
Assessment roll preparation, MN Statute 429 review, and
2.00 %
0.0%
2002
contract administration and review.
' Comprehensive Planning
2.00
Comprehensive/infrastructure/system planning and
2.00 %
0.0
2014
improvement project studies/reports.
Topographic Mapping
1.00
GIS system and topographic mapping administration.
1.00 %
0.0
2014
* Housing needs fund
1.00
Funding for HRA program supporting housing needs within
1.00 %
0.0%
2002
the community. The HRA Board may waive this fee on
projects meeting HRA Housing goals. Not applied to
reconstruction or trunk utility improvements.
Standard City Rate:
Redevelopment/Newly Annexed
21.00
Redevelopment and newly annexed (does not include
21.00 %
0.0%
2014
"Housing Needs Fund")
New Development
22.00
New development (includes "Housing Needs Fund"). The
22.00%
0.0
2014
City retains the right to approve which projects will be
completed utilizing municipal financing based on guidelines
approved by the City Council.
Developer Designed & Financed Rate
7.00
Minimum rate, including all items noted with asterisk (`).
7.00%
0.0
2014
Private development projects utilizing more City services will
be charged based on rates noted above.
Hutchinson HRA may waive the 1% Housing Needs Fund
fee based on low-income housing being included in the
project.
Engineering: Plans & Specs (download set)
$42.00
1 Per set fee
$40.00
1 5.0
2024
The City retains the right to engage a consultant to complete a portion of the Engineering and Project Administration. The developer shall have the preliminary and final
plat approved prior to work commencing on final design. Financial assurance or bonding may be required for improvement being completed by private developers.
The developer shall meet all design standards and financial surety requirements of the City.
Page 18 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Typical Residential Improvement Assessment Rates:
Total street reconstruction (curb, storm, water & sewer)
$103.95
Per adjusted front foot
$94.50
10.0 %
2024
Partial street reconstruction (curb, storm, water or sewer)
$91.85
Per adjusted front foot
$83.50
10.0
2024
Partial street reconstruction (curb and storm sewer)
$80.30
Per adjusted front foot
$73.00
10.0
2023
Street rehabilitation (up to 15% curb replacement, no utlities)
$62.15
Per adjusted front foot
$56.50
10.0
2024
Mill/overlay of street (minor curb repairs, street surface only)
$40.00
Per adjusted front foot
$32.00
25.0
2024
Water service lateral
$3,545.00
or based on actual construction costs
$3,375.00
5.0
2023
Sewer service lateral
$3,545.00
or based on actual construction costs
$3,375.00
5.0
2023
SAC (Sewer Availability Charge)
$2,415.00
Residential per MCES criteria & Commercial/Industrial per
MCES with initial unit + 50% of additional units
$2,300.00
5.0
2011
WAC (Water Availability Charge)
$1,840.00
Residential per MCES criteria & Commercial/Industrial per
MCES with initial unit + 50% of additional units
$1,750.00
5.1q
2011
Assessment Search
$35.00
$30.00
16.7q
2011
Water Rates:
Water Base Rate - Residential
Single family - 1.0 Residential Equivalent Unit
$9.00
1per single-family residence
1 $9.001
0.0
2023
Multi -family - 0.65 Residential Equivalent Unit
$9.00
1per REU's (units x rate x 0.65)
1 $9.001
0.0
2023
Water Usage Rate - Residential
0- 6,000 gallons/month
$3.00
Ixconsumption
$3.00
O.Oq
2023
6,000 - 12,000 gallons/month
$3.75
Ix consumption
$3.75
O.Oq
2023
> 12,000 gallons/month
$4.69
Ix consumption
$4.691
0.0
2023
Water Base Rate - Commercial/Industrial
3/4" meter
$9.00
per month
$9.00
0.0%
2023
1" meter
$22.50
per month
$22.50
0.0 %
2023
1.5" meter
$45.00
per month
$45.00
0.0
2023
2" meter
$72.00
per month
$72.00
0.0
2023
3" meter
$144.00
per month
$144.00
0.0
2023
4" meter
$225.00
per month
$225.00
0.0
2023
6" meter
$450.00
per month
$450.00
0.0
2023
Water Usage Rate -Comm ercialfl ndustrial
1,000 gallons/month $3.00 Ix consumption $3.00 O.Oq 2011
Irrigation Water (May 1 -September 30)
Annual fee
$25.00
$25.001
0.0
2023
1,000 gallons/month
$4.69
Ix consumption of irrigation deduct meter
$4.691
0.0
2023
Page 19 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Water Meter Fees:
3/4"
$446.78
Connections and flanges included
$425.50
5.0%
2024
1"
$575.40
meter pricing includes water meter transmitter
$548.00
5.0%
2024
1.5" Compound
$2,158.80
$2,056.00
5.0%
2024
1.5"Turbo
$1,584.45
$1,509.00
5.0%
2024
2" Compound
$2,447.03
Water department staff will approve/disapprove or
require application of turbo or compound meters.
$2,330.50
5.0%
2024
2" Turbo
$1,834.35
$1,747.00
5.0%
2024
3" Compound
$3,046.58
$2,901.50
5.0%
2024
3"Turbo
$222222
$2,116.40
5.0%
2024
4" Compound
$5,020.31
$4,781.25
5.0%
2024
4"Turbo
$4,007.85
Water department staff will approve/disapprove or
require application of turbo or compound meters.
$3,817.00
5.0%
2024
6" Compound
$8 599 97
$8,190.45
5.0%
2024
6" Turbo
$7,074.85
$6,737.95
5.0%
2024
Water meter testing fee
$57.75
Plus all direct costs for testing by others
$55.00
5.0%
2023
Water meter transmitter
$217.88
As needed, determined by the Water Dept.
$207.50
5.0%
2024
Other Water Fees
Delinquent Account Penalties
5.0%
Assessed to outstanding balance
5.0%
0.0%
2011
Water Service Repair
$1.00
Per water meter per month
$1.00
0.0%
2023
State Drinking Water Service Connection Fee
$1.27
Per water meter per month - State required fee
$0.81
56.8%
2020
Bulk Water Deposit
$63.00
Deposit for key rental
$60.00
5.0%
2024
Key rental fee (Month or partial month)
$63.00
Month or partial month
$60.00
5.0%
2024
Lost key
$614.25
$585.00
5.0%
2011
Set up fee
$26.25
Set up fee for putting a metered valve onto a hydrant for bulk
water loading / use
$25.00
5.0%
2016
Per load
$31.50
South Park loaded by City staff
$30.00
5.0%
2024
Per load
$31.50
2 load/day, hydrant fills
$30.00
5.0%
2024
Load Charge
$8.40
per 1,000 gallon (rounded to nearest 1,000 ga.)
$20 minimum
$8.00
5.0%
2015
Disconnect/Reconnect water service
Scheduled -(Snowbirds, Foreclosures, etc)
Delinquent Accounts
Reconnect after-hours/weekends/holiday
$30.00
$40.00
1 $100.00
$30 for disconnect, $30 for reconnect
$40 for disconnect, $40 for reconnect
The $40 disconnect fee applies to all accounts that do not
pay by noon on the disconnect due date unless a payment
arrangement is granted by the City prior to the noon.
1
$30.00
$40.00
1 $100.00
0.0%
0.0%
1 0.0%1
2011
2011
2011
Page 20 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Wastewater Rates:
Wastwater Base Rate - Residential
Single family - 1.0 Residential Equivalent Unit
1 $10.00
1per single-family residence
1 $10.00
2.02
2023
Multi -family - 0.65 Residential Equivalent Unit
$10.00
per REU's (units x rate x 0.65)
$10.00
0
2023
Wastwater Usage Rate - Residential
1,000 gallons/month $6.42 Ix consumption 1 $6.421 0.0 2011
Wastewater Base Rate - Commercial/Industrial
3/4" meter
$10.00
per month
$10.00
0.0
2023
1"meter
$25.00
per month
$25.00
0.0
2023
1.5" meter
$50.00
per month
$50.00
0.0
2023
2" meter
$80.00
per month
$80.00
0.02
2023
3" meter
$160.00
per month
$160.00
0.0
2023
4" meter
$250.00
per month
$250.00
0.0
2023
6" meter
$500.00
per month
1 $500.001
0.0
2023
Wastwater use rate - commercial1industrial
1,000 gallons/month $6.42 Ix consumption 1 $6.421 0.0 2011
Wastwater load charges rate - commerciallindustrial
Load charges: Biochemical Oxygen Demand (BOD)
Total Suspended Solids (TSS)
Phosphorous (P)
Total Kjedahl Nitrogen (TKN)
$0.68
$0.33
$10.95
$0.97
per pound
per pound
per pound
per pound
$0.65
$0.31
$10.43
$0.92
4.6%
6.5%
5.0q
5.4%
2023
2023
2023
2023
Industrial Pretreatment Program Fees: (win bereevaluatedupon receipt ofWDEspenritrenewap
New permit application fee
Sewer users < 25,000 gals/day & Haulers
Sewer users > 25,000 gals/day
$105.00
$420.00
Permit application fee
Permit application fee
$100.00
$400.00
5.0q
5.0q
2006
2006
Annual Permit Fee Haulers
Sewer Users < 25,000 gals/day
Sewer Users 25,000 to 100,000 gals/day
Sewer Users > 100,000 gals/day
Annual site inspection fee
$105.00
$735.00
$1,470.00
$2,205.00
$105.00
per year
per year
per year
per year
$100.00
$700.00
$1,400.00
$2,100.00
$100.00
5.0q
5.0q
5.0q
5.0q
5.0q
2006
2006
2006
2006
2006
Wastewater Service Repair
$1.00
Per meter per month
$1.00
0.0
2023
Sampling and Lab costs
at Cost
at Cost
2006
State and Legal Costs
at Cost
at Cost
2006
Limits Exceedance Fees
$1,050.00
per pollutant per sampling period, per MPCA
$1,000.00
5.0q
2023
Administrative Violation Fees
$157.50
per violation
$150.00
5.0q
2006
Hauling Waste Fees
Portable Toilets Waste
Transfer pump fee
Truck tipping fee
$52.50
$10.50
per hour
per 100 gallons
$50.00
$10.00
5.0%
5.0q
2024
2024
Municipal WWTP Sludge
Truck tipping fee
Sludge volume fee
$63.00
$367.50
per truck load
per dry ton
$60.00
$350.00
5.0 %
5.0 %
2024
2024
Page 21 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Change
Last
Chan e
Telecommunications Application Fee:
Telecommunication permit application
$813.75
$775.00
5.0%
2012
Lease rates
Negotiated
Negotiated
Right -of -Way Perm it Fees:
Excavation (<5,000 SF)
$36.75
$35.00
5.0q
2012
Excavation (>5,000 SF to <1 acre)
$105.00
$100.00
5.0q
2020
Excavation (1-5 acres)
$210.00
$200.00
5.0q
2020
Excavation (>5 acres)
$315.00
$300.00
5.0q
2020
City utility/drainage connection excavation
$36.75
$35.00
5.0%
2020
Linear project (per 1, 000 LF)
$52.50
$50.00
5.0%
2020
Obstruction
$52.50
$50.00
5.0%
2020
Small wireless facility (up to 5)
$525.00
$500.00
5.0%
2020
Garbage Rates:
Weekly service 30-gallon container
60-gallon container
90-gallon container
$23.30
$33.59
$46.22
per month
per month
per month
$22.19
$31.99
$44.02
5.0q
5.0q
5.0q
2025
2025
2025
Bi-weekly service 30-gallon container
$16.39
per month (60 & 90 gallon containers not available)
$15.61
5.0q
2025
Weekly valet service 30-gallon container
60-gallon container
90-gallon container
$32.94
$43.25
$55.86
per month
per month
per month
$31.37
$41.19
$53.20
5.0q
5.0q
5.0q
2025
2025
2025
Senior Citizens/Low Income Rate
Bi-weekly standard service
Bi-weekly valet service (low income)
Senior citizen reduced rate (low income)
Senior citizen reduced valet
Senior citizen reduced bi-weekly valet
$16.39
$22.91
$2.90
$12.55
$7.72
30-gallon container, per month charge
30-gallon container, per month charge
per month
per month
per month
$15.61
$21.82
$2.76
$11.95
$7.35
5.0q
5.0q
5.0q
5.0q
5.0q
2025
2025
2025
2025
2025
Cart delivery fee
$10.50
$10.00
5.0q
2007
Stickers for extra garbage bag service
$2.10
stickers available at City Center Administration window
$2.00
1 5.0%
2007
Compost Carts First 95 gallon cart
Second 95 gallon cart (optional)
$0.00
$105.00
free service
annual billing - not to be prorated if cancelled within year
$0.00
$100.00
1 0.0%
5.0%
2007
2016
Page 22 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Storm Water Utility:
Golf Course, Park, Open Space
$7.77
per acre per month
$7.19
8.1 %
2025
Single & Two -Family Residential
$6.00
per acre per month
$5.56
7.9%
2025
Public/Private School & Institutional
$30.16
per acre per month
$27.93
8.0q
2025
Multi -Family Residential & Church
$42.89
per acre per month
$39.71
8.0q
2025
Commercial & Industrial
$76.73
per acre per month
$71.05
8.0q
2025
Lots 1 to 2 acres
$10.39
per acre per month
$9.62
8.0q
2025
Lots 2 to 3 acres
$18.11
per acre per month
$16.77
8.0q
2025
Lots 3 to 4 acres
$25.83
per acre per month
$23.92
8.0q
2025
Lots 4 to 5 acres
$33.58
per acre per month
$31.09
8.0q
2025
Lots over 5 acres
See Resolution No. 11637
Drainage/Erosion Control permit
$43.20
Drainage connection
$40.00
8.0q
2023
$43.20
< 5,000 SF disturbed
$40.00
8.0q
2023
$124.20
5,000 SF- 1 acre disturbed
$115.00
8.0%
2023
$243.00
1 to 5 acres disturbed
$225.00
8.0 %
2023
$367.20
IMore than 5 acres disturbed
$340.00
8.0 %
2023
Cemetery:
Flush marker Grave space
$865.00
$825.00
4.8 %
2021
Cremation grave space
$485.00
$460.00
5.4%
2022
Upright memorial Grave space
$1,135.00
$1,080.00
5.1%
2021
Cremation grave space
$1,155.00
$1,100.00
5.0q
2022
Baby section grave space
$150.00
$145.00
3.4%
2021
Columbarium Niches
$1,890.00
Unit A all rows, Units C-D-I top 4 rows
$1,800.00
5.0q
2020
$1,680.00
Units C-D-I bottom rows
$1,600.00
5.0q
2025
Replacement Bronze Plaque
$415.00
$395.00
5.1%
2021
Interments Weekday Non -Winter
$865.00
4/15- 11/15: M-F gam -4pm
$825.00
4.8%
2021
(vault/casket) Weekend/Holiday Non -Winter
$1,135.00
4/15- 11/15: Sat gam -2pm
$1,080.00
5.1%
2021
Weekday Winter
$1,020.00
11/16-4/14: M-F gam -4pm
$970.00
5.2%
2021
Weekend/Holiday Winter
$1,255.00
11/16-4/14: Sat gam -2pm
$1,195.00
5.0q
2021
Inumments Weekday Non -Winter
$455.00
4/15- 11/15: M-F gam -4pm
$435.00
4.6%
2024
(in -ground) Weekend/Holiday Non -Winter
$720.00
4/15- 11/15: Sat 9am -2pm
$685.00
5.1%
2024
Weekday Winter
$585.00
11/16-4/14: M-F 9am -4pm
$560.00
4.5%
2024
Weekend/Holiday Winter
$845.00
11/16-4/14: Sat 9am -2pm
$805.00
5.0q
2024
Inumments Weekday Non -Winter
$410.00
4/15- 11/15: M-F 9am -4pm
$390.00
5.1%
2024
(aboveground) Weekend/Holiday Non -Winter
$660.00
4/15- 11/15: Sat 9am -2pm
$630.00
4.8%
2024
Weekday Winter
$535.00
11/16-4/14: M-F gain -4pm
$510.00
4.9%
2024
Weekend/Holiday Winter
$770.00
11/16-4/14: Sat gain -2pm
$735.00
4.8%
2024
Infants Weekday Non -Winter
$330.00
4/15- 11/15: M-F 9am -4pm
$315.00
4.8%
2021
(in -ground) Weekend/Holiday Non -Winter
$595.00
4/15- 11/15: Sat 9am -2pm
$565.00
5.3%
2021
Weekday Winter
$660.00
11/16-4/14: M-F 9am -4pm
$630.00
4.8%
2021
Weekend/Holiday Winter
$715.00
11/16-4/14: Sat 9am -2pm
$680.00
5.1%1
2021
Disinterment in -ground casket or urn
$1,815.00
Disinterment
$1,725.00
5.2%
2021
niche
$895.00
$850.00
5.3%
2024
Vaulted cremains (additional charge)
$265.00
$250.00
6.0q
2021
Companion urn
$255.00
$240.00
6.3%
2019
Pot stands Upright
$50.00
$45.00
11.1%
2024
Saddle mount
$20.00
$20.00
0.0
2024
Page 23 of 24
City of Hutchinson
2026 Fee Schedule
Fee Type
2026 Fees
Notes
2025 Fees
%
Last
Change
Chan e
Late charges
$105.00
funerals arrive more than 30 minutes late
$100.00
5.0 %
2024
$210.00
funerals arrive more than 60 minutes late
$200.00
5.0 %
2024
$525.00
M-F funerals arrive after 4pm (no arrivals after 4:30)
500.00
5.0q
2024
$525.00
S funerals arrive after2 pm (no arrivals after 2:30)
$500.00
5.0q
2024
Holding vault fee
$145.00
fee
$140.00
3.6%
2021
$89.26
p^R%-o+e %ems
$85.99
5.0%
POP4
Stone setting permit
$90.00
permit
$85.00
5.9%
2021
Cemetery deed transfer
$15.00
Rate set by Statute
$15.00
0.0
2008
Chapel rental
$300.00
Per 1/2 day
$285.00
5.3%
2021
Memorial Bench Program
Single bronze plaque
$605.00
$575.00
5.2%
2021
Double bronze plaque
$835.00
$795.00
5.0q
2021
Engraved name/date per space
$300.00
$285.00
5.3%
2021
Commemorative Bench Program
No memorial on bench, placed by Cemetery
Variable
Per quotprice
Variable
0.0 %
2021
Affidavit of Ownership
$90.00
Claim ofed ownership by decent of title
$85.00
5.9 %
2021
Airport:
City -owned hangars: Hangars #1/9-1/18
$55.00
Per month. Airport Commission schedule
$53.00
3.8%
2024
Hangars #1/19
$300.00
Per month. Airport Commission schedule
$285.00
5.3%
2024
Hangars #2/1-2/8
$100.00
Per month. Airport Commission schedule
$93.00
7.5%
2024
Hangars #3/2-3/4, 3/6-3/8
$130.00
Per month. Airport Commission schedule
$125.00
4.0q
2020
Hangars #3/1 & 3/5
$320.00
Per month. Airport Commission schedule
$306.00
4.6%
2024
Hangars #4/1-4/8
$135.00
Per month. Airport Commission schedule
$128.00
5.5%
2024
Hangars #5/1-5/8
$200.00
Per month. Airport Commission schedule
$190.00
5.3%
2020
Hangars #6/1-6/2
$380.00
Per month. Airport Commission schedule
$360.00
5.6%
2024
Hangar 1710
$820.00
Per month. Airport Comm schedule, may be w/ FBO agmt
$780.00
5.1%
2024
Hangar 1720
$820.00
Per month. Airport Comm schedule, may be w/ FBO agmt
$780.00
5.1%
2024
City -owned storage spaces - Hangar#4
$55.00
Per month. Adjusted to $1.00/SF annual cost
$49.75
10.6%
2024
City -owned storage spaces - Hangar#5
$65.00
Per month. Adjusted to $1.00/SF annual cost
$59.00
10.2%
2024
Privately -owned hangar spaces:
General Aviation
$0.0450
per sq. ft. every other year
$0.0412
9.2%
2023
Commercial
$0.1500
per sq. ft. every other year
$0.1390
7.9 %
2023
Operations & Maintenance:
Labor rate - operator/laborer
$65.00 /hr
Add $20/hr for premium/overtime pay
$60.00 /hr
8.3 %
2021
Labor rate - PT/S operator/laborer
$55.00 /hr
per hour. Add $20/hr for premium/overtime pay
$50.00 /hr
10.0 %
2023
Labor rate - supervisor
$80.00/hr
Add$20/hrfor premium/overtime pay
$75.00/hr
6.7%
2021
Administrative fee
$55.00
$50.00
10.0q
2010
Mailbox reimbursement
$315.00
For damaged mailbox not repaired by City staff
$300.00
5.0q
2023
Asphalt patching material
$395.00 /ton
Per ton (up to 3 ton)
$375.00 Ron
5.3 %
2023
Other materials
Quoted
Quoted
Equipment rental rates
See most recent FEMA reimbursement rates + 20%
+ Operator cost + Fuel surcharge
Page 24 of 24
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution 15960 Approving the 2026 HRA Final Tax Levy
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes): 1
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
In accordance with State Statute, the City must certify the 2026 final HRA tax levy to the County
auditor by December 29th. This tax levy has a statutory limit of $292,282, however, the HRA
Board is requesting only $173,000 to fund its 2026 operations. The levy amount represents a
1.8% increase from the 2025 levy of $170,000.
The HRA's statutory levy limit is based on .0185% of the City's 2025 Estimated Market Value of
$1,579,905,400.
BOARD ACTION REQUESTED:
Approve the 2026 HRA Final Tax Levy of $173,000 as recommended by the HRA Board.
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
CITY OF HUTCHINSON
RESOLUTION NO. 15960
CITY OF HUTCHINSON, MINNESOTA
SETTING 2026 FINAL TAX LEVY
FOR
SPECIAL TAXING DISTRICT
HUTCHINSON REDEVELOPMENT AUTHORITY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
WHEREAS the City of Hutchinson hereby establishes a special taxing district
for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA)
and the financing of such district as authorized under Minn. Statute 469.033.
WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of
.000185 times estimated market value of the city.
AND for 2026 the authorization yields:.000185 x $1,579,905,400 = $292,282;
The HRA Board requests for 2026 a levy of $173,000.
THAT the City of Hutchinson hereby establishes a final tax levy for the
above named special taxing district of:
$ 173,000
Adopted by the City Council this 23rd day of December, 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution 15961 Approving the 2026 EDA Final Tax Levy
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes): 1
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
In accordance with State Statute, the City must certify the 2026 final EDA tax levy to the County
auditor by December 29th. This tax levy has a statutory limit of $286,437 and that is the amount
the EDA Board is requesting to fund its 2026 operations. The levy amount represents a 1.7%
increase from the 2025 levy of $281,771.
The EDA's statutory levy limit is based on .01813% of the City's 2025 Estimated Market Value of
$1,579,905,400
BOARD ACTION REQUESTED:
Approve the 2026 EDA Final Tax Levy of $286,437, as recommended by the EDA Board.
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
CITY OF HUTCHINSON
RESOLUTION NO. 15961
CITY OF HUTCHINSON, MINNESOTA
SETTING 2026 FINAL TAX LEVY
FOR
SPECIAL TAXING DISTRICT
HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA
WHEREAS the City of Hutchinson hereby establishes a special taxing district
for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA)
and the financing of such district as authorized under Minn. Statute 469.107.
WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of
.0001813 times estimated market value of the city.
AND for 2026 the authorization yields- .0001813 x $1,579,905,400 = $286,437-1
The EDA Board requests for 2026 a levy of $286,437.
THAT the City of Hutchinson hereby establishes a final tax levy for the
above named special taxing district of:
$286,437
Adopted by the City Council this 23rd day of December, 2025.
Gary T. Forcier
Mayor
ATTESTED:
Matthew Jaunich
City Administrator
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
5-Year Capital Improvement Plan (CIP)
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Attached is the 5-year (2026 — 2030) Capital Improvement Plan (CIP). The 5-year CIP forecasts the
City's capital expenditures over the next 5 years, by Department and potential Funding Sources.
It's important to note that projects are not approved simply by being on the CIP and monies are not
appropriated for the projects. Analysis, review and approvals are still needed prior to appropriating
monies, which occurs when a purchase order is executed. Purchases over $50,000 require city
council approval, which provides the council an opportunity to discuss the proposed purchase in more
detail.
The CIP is a fluid document that is updated periodically throughout each year. Some projects get
pushed back to later years, some projects drop off and some projects move up in years depending on
priorities and opportunities. Ultimately, the funding is a major factor in determining which projects get
completed. Outside funding/donations may result in a project being moved up a earlier than originally
planned. In addition, the Facilities Committee, Fleet Committee and Resource Allocation Committee
are instrumental in continually shaping the priorities of several major components within the CIP.
A summary of the more significant capital improvements for 2026 is directly after this board action
form, followed by the 5-Year CIP. Behind the CIP you will find information on the Facility Plan,
Playground Replacement Plan and the Equipment Replacement Plan.
BOARD ACTION REQUESTED:
Approve and adopt the five-year capital improvement plan.
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
5-Year Capital Improvement Plan
2026 Major Projects
Note: Projects are not approved simply by being included in the 5-year CIP. All capital projects are subject
to the City's purchasing policy, requiring quotes/bids and approvals commensurate to the total cost.
City council approval is required on costs of $50,000 or higher.
Cost
Funding
Estimate
Amount
Source
General Fund:
Airport - Pavement Improvements
$196,478
$137,535
State Grant
$58,943
Capital Projects - MIF Plan
Airport - Snow equipment shed
$350,000
$245,000
State Grant
$105,000
Capital Projects - MIF Plan
Airport - Hangars 1 & 2 remodel
$188,537
$113,122
State Grant
$75,415
Capital Projects - MIF Plan
Aquatic Center - new pool features
$125,000
$125,000
Community Improvement Fund
Cemetery - new toolcat
$67,500
$67,500
Equip Replacement Fund
City Center remodel - design work
$300,000
$300,000
Capital Projects - Facility Plan
Civic Arena - rubber floor in west rink
$70,000
$70,000
Capital Projects - Facility Plan
Engineering - Safe streets for All
$200,000
$160,000
Federal Grant
$40,000
Capital Projects - MIF Plan
Fire Ladder Truck - 2nd installment
$668,822
$18,822
Equip Replacement Fund
$100,000
Capital Projects Fund
$100,000
Water Fund
$100,000
Wastewater Fund
$350,000
GO Bonded Debt
$668,822
Fire - garage door modifications
$95,000
$95,000
Capital Projects - State Public
(needed for new ladder truck)
Safety monies
Parks - Outdoor basketball court
$300,000
$125,000
Donations
$175,000
Unfunded
Parks - North Park playground
$120,000
$60,000
Capital Projects - Playground Plan
$60,000
Cooperative Ageement - ISD #423
Parks - tractor with cab
$89,550
$89,550
Equip Replacement Fund
Police - new tactical robot
$87,650
$87,650
Capital Projects Fund
Streets - tractor with tracks
$94,000
$47,000
Equip Replacement Fund
$47,000
Storm Water Fund
Streets - mill/overlay Liquor overflow lot
$89,000
$89,000
Capital Projects - MIF Plan
Cost
Funding
Estimate
Amount
Source
Compost Fund:
New Wheel Loader
$225,000
$225,000
Compost Fund
Live Bottom trailer
$125,000
$125,000
Compost Fund
Refuse Fund:
New skidster loader
$80,000
$80,000
Refuse Fund
Storm Water Fund:
Summerset Pond Cleaning
$128,000
$128,000
Storm Water Fund
Wastewater Fund:
Biosolids Project
$3,700,000
$900,000
Wastewater Fund
$2,800,000
GO Wastewater Revenue Bonds
$3,700,000
Clarifier rake & drive replacement
$350,000
$175,000
Wastewater Fund
$175,000
State Grant
$350,000
Clarifier dome replacement
$500,000
$250,000
Wastewater Fund
$250.000
State Grant
Water Fund:
Water Meter replacement - final year $400,000 $400,000 Water Fund
HATS Fund:
Roof improvements $372,620 $372,620 HATS Facility Fund
- shared reserves between the
State, County & City
Infrastructure Projects:
Edmonton Ave (Montreal - Jefferson) $1,059,534 $1,046,521
Municipal State Aid
$13,013
Special Assessments
$1,059,534
Bradford St (Summerset - Century) $431,970 $296,220
GO Spec Assmt Improv Bonds
$80,750
Special Assessments
$15,000
Water Fund
$15,000
Wastewater Fund
$25,000
Storm Water Fund
$431,970
Orchard Ave (Bradford - Elks Dr) $411,400 $275,650
GO Spec Assmt Improv Bonds
$80,750
Special Assessments
$15,000
Water Fund
$15,000
Wastewater Fund
$25,000
Storm Water Fund
$411,400
Cost
Funding
Estimate
Amount
Source
Sherwood ST (Summerset - Century)
$405,350
$269,600
GO Spec Assmt Improv Bonds
$92,000
Special Assessments
$20,000
Water Fund
$20,000
Wastewater Fund
$35,000
Storm Water Fund
$436,600
Elks Dr (Sherwood - Orchard)
$296,450
$200,450
GO Spec Assmt Improv Bonds
$41,000
Special Assessments
$15,000
Water Fund
$15,000
Wastewater Fund
$25,000
Storm Water Fund
$296,450
Bradford St (Century - Randall)
$258,940
$123,190
GO Spec Assmt Improv Bonds
$80,750
Special Assessments
$15,000
Water Fund
$15,000
Wastewater Fund
$25,000
Storm Water Fund
$258,940
Randall Rd (Bradford - Century)
$260,150
$124,400
GO Spec Assmt Improv Bonds
$80,750
Special Assessments
$15,000
Water Fund
$15,000
Wastewater Fund
$25,000
Storm Water Fund
$260,150
Larson St (Roberts - Lewis)
$462,553
$295,553
GO Spec Assmt Improv Bonds
$92,000
Special Assessments
$20,000
Water Fund
$20,000
Wastewater Fund
$35,000
Storm Water Fund
$462,553
Boulder St & Cir mill & overlay
$417,643
$282,498
GO Spec Assmt Improv Bonds
$95,345
Special Assessments
$20,965
Water Fund
$1,835
Wastewater Fund
$17,000
Storm Water Fund
$417,643
UNFUNDED PROJECTS:
Year
Amount
Outdoor Basketball Court
2026
$175,000
HATS storage building & fuel site
2027
$700,000
state bonding dollars?
Civic Arena west rink floor replace
2028
$1,400,000
future local sales tax dollars?
Civic Arena east rink floor replace
2029
$1,500,000
future local sales tax dollars?
Aquatic Center pool resurfacing
2029
$450,000
future local sales tax dollars?
Total
$4,225,000
u
H TCHINSON
A CITY ON PURPOSE.
5-YEAR CAPITAL IMPROVEMENT PLAN
2026 - 2030
Proposed - 12/23/2025
CITY OF HUTCHINSON - CAPITAL PLAN
Administrative Summary
VISIONS AND GOALS
The City plans for capital improvements by preparing a five-year Capital Improvement Plan
(CIP). The CIP serves as a valuable planning tool for the preservation and expansion of the
City's capital assets, including facilities, infrastructure, amenities and equipment. It provides
details of proposed improvements by department and year, along with the estimated cost and
funding sources for the improvements. It is based upon several long-range planning documents
that are updated regularly as identified by the Facilities Committee, Fleet Committee, Resource
Allocation Committee, City staff and council members.
The CIP identifies projects that will support existing and projected needs in the following areas:
transportation, public safety, parks & recreation, general government and enterprise fund
operations. The CIP establishes a development program, which is used to maximize outside
revenue sources and effectively plans for the growth and maintenance of the City's infrastructure.
POLICIES
Criteria identified for inclusion of capital items in the CIP plan are as follows:
1) Capital Item must have a minimum cost of $10,000
2) Project must define year proposed
3) Funding source should be identified
4) Detail should include annual operating costs or savings for proposed capital item
5) Department priority should be established
6) Must have a useful life of three years or greater
The plan encompasses projects using the following priority levels:
Priority 1: (Urgent) Projects currently underway or those that are considered essential to the
departments of City operations, and should not be delayed beyond the year requested. Failure to fund
these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the
City to a potential liability and negative legal exposure.
Priority 2: (Very Important) Projects that are needed by a department or the City to improve or
maintain their operations, and to delay would cause deterioration or further deterioration of their current
operation and/or level of service to the residents of the City. These should not be delayed beyond the
year requested.
Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain
their operations, and should be done as soon as funds can reasonably be made available.
Priority 4: (Less Important) Projects, which are desirable, but needing further study.
Priority 5: (Future Consideration) Projects, which sometime in the future will need to be funded to
maintain operations, safety or infrastructure desired within the community.
CIP PROCESS
1. Finance distributes CIP forms and the prior year's data to departments for updating.
2. Departments add, remove and update CIP data from the prior year's report.
3. Finance updates the CIP database with recommendations made by the department
directors and the Fleet, Facility and Resource Allocation committees.
4. Initial draft is reviewed with City Administrator and Department directors; corrections or
adjustments are made.
5. Preliminary CIP plan is submitted to City council by August 1st
6. Final CIP plan is reviewed and adopted by City council by year-end.
PROCESSCALENDAR
April/May - Departments work on updating the CIP. Any new capital items should be
requested at this time. The Facilities, Fleet and Resource Allocation Committees begin meeting
to review and prioritize potential improvement projects.
June/July - Departments return updated CIP items. The Facilities and Fleet Committees submit
a recommended five year plan to the City Administrator. An initial CIP draft is reviewed with
Department directors and corrections or adjustments are made. Current year CIP items are
incorporated into the early stages of the budgeting process during this time frame.
August 1 st — Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall
submit to the council a preliminary CIP Plan no later than August 1 of each year.
October/November — Departments and Finance make final adjustments to the preliminary CIP.
December 31st - Final CIP plan is adopted by City council prior to year-end.
CAPITAL PROJECT APPROVAL
The CIP is a planning document comprised of potential capital improvement projects known at
a certain point in time. Projects are not approved simply by being included in the CIP as
funding sources or City priorities may change. All capital projects are subject to the City's
purchasing policy, requiring quotes/bids and approvals commensurate to the total cost.
CITY PLANS FUNDED BY LOCAL GOVERNMENT AID
General Fund (50%) $1,556,030
Facility Plan (General Fund facilities) $800,000
Playground Replacement Plan $50,000
Miscellaneous Infrastructure Maintenance Plan $450,000
Undesignated - use at council discretion $206,029
Capital Projects Fund ** $1,506,029
Equipment Replacement Fund (General Fund) $50,000
TOTAL 2026 LGA $3,112,059
FACILITY PLAN:
The $800,000 of LGA annually allocated to the Facility is intended for improvements and
major repairs to our various General fund facilities, including:
- Building evelope
- Roof
- HVAC and other mechanical systems
- Interior components; flooring, windows, lighting, restrooms, counter areas, etc.
- Parking Lots and sidewalks
- ADA compliance
Also included are the many recreational facilities and amentities, including:
- Ballfields, including lights, fencing, stands, restrooms and other amenitities
- Park shelters and restrooms
- Tennis and Pickleball courts
- Library pavillion
- Depot and historical Church
PLAYGROUND REPLACEMENT PLAN
In 2020, the City began allocating $50,000 per year to fund playground replacements and
other improvements in the City's 41 parks. This was an unfunded issued prior to 2020.
Since the start of this plan, the City has received donations totaling more than $39,000 for
various park improvements. These donations stretch the City's monies further and in many
cases will likely escalate a project to take advantage of those donations.
MISCELLANEOUS INFRASTRUCTURE MAINTENANCE PLAN
Funding for this plan began in 2015 to address maintenance needs of various City
infrastructure (excluding Enterprise Funds), including the following:
- Alleys, roadways and streetscapes
- Sidewalks, trails, walkways, retaining walls
- Streetlight replacements
- Traffic signal maintenance
- Public parking lots
- Other miscellaneous infrastructure
- Equipment for City staff to do maintenance work rather than contracting the work at
higher rates. The payback on the equipment purchases is relatively short and helps
stretch the plan's dollars further.
Originally, this plan allocated a substantial amount of monies to seal coating streets every
other year. Since then, the City has used other strategies to preserve roadways. Our
favorable pavement management index (PCI) indicates that our actions are working.
EQUIPMENT REPLACEMENT FUND
This fund accounts for the replacements and disposals of General Fund vehicles and
equipment. The funding sources include an annual $450,000 transfer from the General fund
and a $50,000 allocation of LGA. The funding has slowing been increasing from $192,615
back in 2012 when it was cut to help with budgetary issues during the recession. The
budgetary cut resulted in a severely underfunded replacement plan.
Light Fleet - Avg Annual Cost
Heavy Fleet - Avg Annual Cost
Total Annualized Cost
Residual Value on Disposals (10% estimate)
Avg Annual Funding Needed
Current Annual Funding
Avg Annual Funding Shortfall
5-yr CIP
10-yr CIP
$382,050
$493,025
$237,764
$294,782
$619,814
$787,807
-$62,000
-$78,800
$557,814
$709,007
$500,000
$500,000
-$57,814
-$209,007
Capital Improvement Plan
Hutchinson, MN
2026-2030 Projects
COST SUMMARY BY DEPARTMENT
Department 2026 2027 2028 2029 2030 Total
Airport 757,015 - - - 400,000 1,157,015
Aquatic Center
125,000
75,000
450,000
650,000
Building Inspections
37,000
-
-
-
37,000
Cemetery
77,500
50,000
-
16,000
87,000
230,500
City Center
363,000
2,050,000
340,000
50,000
80,000
2,883,000
Civic Arena
95,000
-
1,400,000
1,500,000
500,000
3,495,000
Engineering
200,000
46,000
-
70,000
-
316,000
Fire
850,322
887,841
-
-
1,738,163
Information Technology
-
-
47,000
-
47,000
Library
-
-
10,000
100,000
-
110,000
Parks
563,550
439,000
282,000
1,106,000
166,000
2,556,550
Police
147,650
291,500
54,000
134,000
207,000
834,150
Recreation Building
Senior Dining
Streets
35,000
-
291,200
-
-
270,000
250,000
10,000
90,000
10,000
30,000
-
-
-
89,000
295,000
40,000
740,200
GENERAL FUND
Liquor Fund
Compost Fund
Refuse Fund
3,542,237
30,000
350,000
80,000
4,109,341
40,000
352,000
365,000
2,483,000
-
290,000
96,500
3,466,000
-
55,000
-
1,529,000
-
-
15,129,578
70,000
1,047,000
541,500
Storm Water Fund
378,000
371,000
300,000
665,000
540,000
2,254,000
Wastewater Fund
5,146,105
1,792,408
2,886,380
3,346,484
1,535,979
14,707,356
Water Fund
789,539
316,604
1,418,601
1,104,904
860,000
4,489,648
Infrastructure Improvements
4,103,990
4,333,644
3,032,331
4,260,064
7,086,424
22,816,453
HATS Facility Fund
372,620
10,400,000
-
150,000
500,000
11,422,620
OTHER FUNDS
GRAND TOTAL
11,250,254
14,792,491
17,970,656
22,079,997
8,023,812
10,506,812
9,581,452
13,047,452
10,522,403
12,051,403
57,348,577
72,478,155
Capital Improvement Plan
Hutchinson, MN
2026.2030 Projects
COST DETAIL BY DEPARTMENT
Project Description Project # 2026 2027 2028 2029 2030 Total
Airport
Airport south taxiway mill & overlay
Air 26-1
159,500
159,500
Airport taxiway crackfrll
Air 26-2
36,978
36,978
Hangar 1 & 2 remodel
Air 26-3
188,537
188,537
Security Lighting upgrades
Air 26-4
22,000
22,000
Snow Shed
Air 26-5
350,000
350,000
Tractor & Snow Removal Equipment
Air 055
400,000 400,000
Airport Total 757,015 0 0 0 400,000 1,157,015
Aquatic Center _
Pool Features Aqua 26-1 125,000 125,000
Shade Structure for the Aquatic Center Aqua 27-1 75,000 75,000
Pool resurfacing Aqua 29-1 450,000 450,000
Aquatic Center Total 125,000 75,000 0 450,000 0 650,000
Building Inspections
New building inspector vehicle Bldg 462 37,000 37,000
Building Inspections Total 37,000 0 0 0 0 37,000
Cemetery
Toolcat 5600
Cem 412 67,500
67,500
Retaining Wall Repairs
Cem 26-1 10,000
10,000
Parking Lot improvements
Cem 27-1 50,000
50,000
Cemetery mower
Cem 898
16,000 16,000
Ride -on Sprayer
Cem 30-1
20,000 20,000
Land Purch for Columbarium expansion
Cem 30-2
50,000 50,000
Cemetery mower
Cem 30-3
17,000 17,000
Cemetery Total 77,500 50,000 0 16,000 87,000 230,500
y Center
Facility Plan - misc maintenance
C.Ctr 26-Maint
50,000 50,000
Server room HVAC
C.Ctr 26-1
13,000 13,000
City Center remodel
C.Ctr 26-2
300,000 300,000
City Center remodel
C.Ctr 27-1
2,000,000 2,000,000
Facility Plan - misc maintenance
C.Ctr 27-Maint
50,000 50,000
City Center garage
C.Ctr 28-1
290,000 290,000
Facility Plan - misc maintenance
Facility Plan - misc maintenance
City Center generator
Facility Plan - misc maintenance
C.Ctr 28-Maint
C.Ctr 29-Maint
C.Ctr 30-1
C.Ctr 30-Maint
_ 50,000 50,000
50,000 50,000
_ 30,000 30,000
50,000 50,000
City Center Total 363,000 2,050,000 340,000 50,000 80,000 2,883,000
Civic Arena
West rink rubber floor
CA 26-1 70,000
70,000
West Rink Locker Room Furnance
CA 26-2 15,000
15,000
Commerical Dehumidifier for the Zamboni
CA26-3 10,000
10,000
Room
West rink floor replacement
CA 28-1
1,400,000 1,400,000
East rink floor replacement
CA 29-1
1,500,000 1,500,000
Zamboni/Maintenance Room Roof
CA 30-1
200,000 200,000
West rink HVAC
CA 30-2
300,000 300,000
Civic Arena Total 95,000 0 1,400,000 1,500,000 500,000 3,495,000
Engineering
Safe Streets for All Grant Eng 26-1 200,000 200,000
1/2 ton work truck Eng 945 46,000 46,000
GPS Trimble unit and Robot Eng 29-1 70,000 70,000
Engineering Total 200,000 46,000 0 70,000 0 316,000
Fire
COST DETAIL BY DEPARTMENT
Project Description Project# 2026 2027 2028 2029 2030 Total
Garage door modifications
Fire 26-1
95,000
95,000
Garage floor concrete improvements
Fire 26-2
42,000
42,000
Install Epoxy Floor in Apparatus Bay
Fire 26-3
44,500
44,500
Fire Ladder Truck
Fire 26-595
668,822
668,822
Fire Ladder Truck
Fire 27-595
824,841
824,841
SUV, command vehicle
Fire 856
63,000
63,000
Fire Total 850,322 887,841 0 0 0 1,738,163
Information Technology
Replace Minivan IT 670 47,000 47,000
Information Technology Total
0
0
47,000
0
0 47,000
Library
Library sidewalk improvements
Lib 28-1
10,000
10,000
Library HVAC replacement
Lib 29-1
100.000
100,000
Library Total
0
0
10,000
100,000
0 110,000
Parks
Parks Garage HVAC
Parks 26-1
10,000
10,000
North Park - Playground Replacement
Parks 26-2
120,000
120,000
Tractor w/cab
Parks 357
89,550
89,550
1/2 Ton 4X2 Pickup
Parks 954
44,000
44,000
Outdoor Basketball Court
Parks 26-4
300,000
300,000
Norlhwoods Park - Playground Replacement
Parks 27-1
65,000
65,000
Park Signage
Parks 27-2
50,000
50,000
Parks Cold Storage
Parks 27-3
120,000
120,000
Wide -area mower
Parks 062
102,000
102,000
Wide -area mower
Parks 082
102,000
102,000
Truck, 1-ton snowplow
Parks 664
80,000
80,000
Masonic West River - Playground
Parks 28-2
100,000
100,000
Irrigation at Library Square
Parks 28-3
30,000
30,000
Gang mower replacement
Parks 024
23,000
23,000
Truck, 1-ton
Parks 314
82,000
82,000
1/2 Ton 42 Pickup
Parks 175
47,000
47,000
South Park - Playground Replacement
Parks 29-1
20,000
20,000
Roberts Park Concession/Restroom Bldg
Parks 29-2
250,000
250,000
Roberts Park Complex Perimeter Fencing
Parks 29-5
200,000
200,000
John Deere Progator 1600
Parks 29-6
35,000
35,000
Spraver HD200 AG & Turf
Parks 29-7
21,000
21,000
Masonic West River Campground Expansion Parks 29-8
500,000
500,000
North Park - Tennis Court Resurface
Parks 30-1
35,000
35,000
Tartan Park- Playground Replacements
Parks 30-2
40,000
40,000
Parks Shop Bathroom
Parks 30-3
10,000
10,000
Soil Top Dresser
Parks 30-4
31,000
31,000
Truck, 1/2 ton
Parks 511
50,000
50,000
Parks Total 563,550 439,000 282,000 1,106,000 166,000 2,556,550
Police
Squad car replacement
ICOR Tactical Robot
SUV, Suburban
Squad car replacement
Replace Equinox
Handgun with optics replacement
PD 609
PD 26-1
PD 029
PD 958
PD 205
PD 27-1
60,000
87,650
88,000
63,000
52,000
40,000
60,000
87,650
88,000
63,000
52,000
40,000
Live Fire House Panel replacement
PD 27-2
48,500
48,500
Replace Equinox
PD 480
54,000 54,000
Squad car replacement
PD 349
67,000 67,000
Squad car replacement
PD 591
67,000 67,000
Truck, 3/4 ton 44
PD 465
69,000 69,000
Squad car replacement
PD 30-1
69,000 69,000
Squad car replacement
PD 30-2
69,000 69,000
COST DETAIL BY DEPARTMENT
Project Description Project # 2026 2027 2028 2029 2030 Total
Police Total 147,650 291,500 54,000 134,000 207,000 834,150
Recreation Building
Office carpet replacement Rec 26-1 10,000 10,000
HVAC Rooftop Unit for Rec Office Rec 26-2 20,000 20,000
New floor scrubber Rec 26-3 15,000 15,000
Replace gym floor Rec 27-1 250,000 250,000
Recreation Building Total 35,000 0 250,000 10,000 0 295,000
Senior Dining
Senior Dining lighting improvements Sr Dine 28-1 10,000 10,000
HVAC replacement Sr Dine 29-1 30,000 30,000
Senior Dining Total 0 0 10,000 30,000 0 40,000
Streets
1/2 ton pickup
STRT 775
46,000
46,000
1-ton 44 truck
STRT 170
62,200
62,200
Tractor with tracks
STRT 26-1
94,000
94,000
Liquor store overflow parking lot reclaim
STRT 26-2
89,000
89,000
Truck single axle
STRT 781
240,000
240,000
Water St Garage Siding/Soffits
STRT 27-1
30,000
30,000
Aspalt Premix Heater w/trailer
STRT 113
90,000
90,000
Truck, 1/2 ton
STRT 301
52,000 52,000
Pneumatic roller
STRT 906
37,000 37,000
Subtotal - General Fund
Streets Total 291,200
270,000 90,000 0 89,000 740,200
3,542,237 4,109,341 2,483,000 3,466,000 1,529,000 15,129,578
uor Fund
Import/Craft Beer Cooler Refrigeration Liq 26-2 30,000
System
Replace Automatic doors Liq 27-1 25,000
30,000
Replace Exterior Neon Sign Liq 27-2 15,000 15,000
Liquor Fund Total 30,000 40,000 0 0 0 70,000
Compost Fund
Wheel loader
Comp 26-1
225,000
225,000
Live BottomTrailer
Comp 26-2
125,000
125,000
Office expansion
Comp 27-1
175,000
175,000
Bagging line improvements
Comp 27-2
27,000
27,000
Stacking conveyor
Comp 27-3
100,000
100,000
Forklift
Comp 27-4
50,000
50,000
Bagging line improvements
Comp 28-1
30,000
30,000
Skid loader
Comp 28-2
85,000
85,000
Site Improv - finished bulk storage area
Comp 28-3
175,000
175,000
Bagging line improvements
Comp 29-1
55,000
55,000
Compost Fund Total 350,000 352,000 290,000 55,000 0 1,047,000
Refuse Fund
Skidsteer Loader
Ref 236 80,000
80,000
Mid -Size SUV
Ref 27-1 40,000
40,000
Office Expansion
Ref 27-2 175,000
175,000
Scale Improvements & Relocation
Ref 27-3 150,000
150,000
Half -ton pickup
Ref 28-1 45,000
45,000
Forklift
Ref 645 51,500
51,500
Refuse Fund Total 80,000 365,000 96,500
Storm Water Fund
541,500
Summerset Pond Cleaning
STWT 26-1 128,000
128,000
Holtz Stormwater Pond Planning/Design
STWT 26-4 50,000
50,000
Street Infrastructure Improvements/Lining
STWT 26-INF 200,000
200,000
Bradford St SE drainage improvement
STWT 27-1 121,000
121,000
Street Infrastructure Improvements/Lining
STWT 27-INF 250,000
250,000
Alan St Outlet Sediment Delta Removal
STWT 28-1 100,000
100,000
Street Infrastructure Improvements/Lining
STWT 28-INF 200,000
200,000
COST DETAIL BY DEPARTMENT
Project Description Project# 2026 2027 2028 2029 2030 Total
SW 63 Bridgewater Pond Improvement
STWT 29-1
40,000
40,000
8th Ave NW drainage improvement
STWT 29-2
75,000
75,000
Vac -All Sweeper -CB Cleaner
STWT 879
375,000
375,000
Street Infrastructure Improvements/Lining
STWT 29-INF
175,000
175,000
Clifton Heights Drainage Improvements
STWT 30-1
100,000
100,000
South Watershed Drainage Study
STWT 30-2
100,000
100,000
Leaf Vacuum
STWT 104
140,000
140,000
Street Infrastructure Improvements/Lining
STWT 30-INF
200,000
200,000
Storm Water Fund Total 378,000 371,000 300,000 665,000 540,000 2,254,000
Wastewater Fund
Biosolids Project: Year 2 of 3 WWTF 26- 3,700,000
Biosolid
Biosolids Project: Year 3 of 3 WWTF 27- 900,000
Biosolid
Solids Storage Bunker WWTF 28- 1,000,000
Biosolid
Clarifier rake mechanism & drive replacement WWTF 26-1 350,000
3,700,000
900,000
1,000,000
350,000
Clarifier dome replacement
WWTF
26-2
500,000
500,000
MBR Fine bubble diffuser system
replacement
WWTF
26-3
125,000
125,000
Replace Solar Field Inverters
WWTF
26-10
100,000
100,000
WWTF Collection System Infrastructure
WWTF
26-INF
71,105
71,105
Sewer Lining
WWTF
26-Line
300,000
300,000
WWTF buildings 50,60 & 80 roof replace
WWTF
27-1
150,000
150,000
Replace Ox Ditch RAS Pumps
WWTF
27-2
200,000
200,000
HATS LS MCC Building
WWTF
27-3
100,000
100,000
Roadway & Parking Lot Improvements -
Phase 2
WWTF
27-4
80,000
80,000
WWTF Collection System Infrastructure
WWTF
27-INF
62,408
62,408
Sewer Lining
WWTF
27-Line
300,000
300,000
Forklift Replacement
WWTF 227
31,900
31,900
SUV, Administrative Vehicle
WWTF
964
38,100
38,100
Clarifier WAS Pump Replacement
WWTF
28-1
110,000
110,000
Clarifier rake mechanism & drive replacement
WWTF
28-2
350,000
350,000
Clarifier dome replacement WWTF 28-3 500,000 500,000
Receiving/Bulk water station WWTF 28-4 500,000 500,000
WWTF Collection Svstem Infrastructure WWTF 28-INF 56,380 56,380
Sewer Lining WWTF 28-Line 300,000 300,000
Replace 2020 John Deere Mower WWTF 563 15,000 15,000
Replace MBR Aeration Blower #3 w/ PD WWTF 29-1 300,000 300,000
Blower
Replace MBR Perm Pump #2 WWTF 29-2 89,600 89,600
Replace Main Lift Station Pump #4 WWTF 29-3 75,800 75,800
W Ditch modification for Phos Compliance
WWTF 29-4
2,500,000
2,500,000
WWTF Collection System Infrastructure
WWTF 29-INF
66,084
66,084
Sewer Lining
WWTF 29-Line
300,000
300,000
1/2 Ton Work Truck
WWTF 253
60,000
60,000
MBR perm pump #1 & #3 replacement
WWTF 30-1
160,000
160,000
EQ basin liner replacement
WWTF 30-2
75,000
75,000
WWTF Bldgs 10,20,90&100 Roof
WWTF 30-3
200,000
200,000
MBR Membrane Replacement/Expansion
WWTF 30-4
600,000
600,000
Sewer Lining
WWTF 30-Line
300,000
300,000
Toolcat Replacement
WWTF 661
74,895
74,895
WWTF Collection System Infrastructure
WWTF 30-INF
66,084
66,084
Wastewater Fund Total 5,146,105 1,792,408 2,886,380 3,346,484 1,535,979 14,707,356
Water Fund
Water Meter Replacement
WTF 26-1
400,000
Street Infrastructure Improvements
WTF 26-INF
124,539
Well 5 Rehabilitation & Recovery Treatment
WTF 26-3
100,000
Compressor Replacement
WTF 26-4
75,000
400,000
124,539
100,000
75,000
COST DETAIL BY DEPARTMENT
Project Description Project# 2026 2027 2028 2029 2030 Total
Plant Optimization Study Phase 3
WTF 26-5
50,000
50,000
Forklift
WTF 835
40,000
40,000
Street Infrastructure Improvements
WTF 27-INF
116,604
116,604
Well 8 Rehabilitation & Recovery Treatment
WTF 27-1
100,000
100,000
Concentrate piping replacement
WTF 27-2
100,000
100,000
Bulk Fill / Dump station at HATS
WTF 28-1
500,000
500,000
Sulfate Reduction of Concentrate
WTF 28-2
750,000
750,000
Street Infrastructure Improvements
WTF 28-INF
138,601
138,601
Scissors Lift
WTF 939
30,000
30,000
Galvanized Service Line Replacements -
Phase 1
Century Tower Rehab
Street Infrastructure Improvements
WTF 29-1
WTF 29-2
WTF 29-INF
250,000
750,000
66,804
250,000
750,000
66,804
1/2 ton work truck
WTF 984
38,100
38,100
Well 4 Rehabilitation and Recovery Treatment
WTF 30-1
110,000 110,000
Well 9 Construction WTF 30-2 750,000 750,000
Water Fund Total 789,539 316,604 1,418,601 1,104,904 860,000 4,489,648
Infrastructure Improvements
Larson St SW (Roberts -Lewis)
26-1 Reclaim
462,553
462,553
Bradford St SE (Summerset Ln - Century Ave
26-2 Reclaim
431,970
431,970
SE)
Orchard Ave SE (Bradford St SE - Elks Dr
26-3 Reclaim
411,400
411,400
SE)
Sherwood St SE (Summerset Ln SE -
26-4 Reclaim
405,350
405,350
Century Ave SE)
Elks Dr SE (Sherwood St SE - Orchard Ave
26-5 Reclaim
296,450
296,450
SE)
Bradford St SE (Century - Randall)
26-6 Reclaim
258,940
258,940
Randall (Bradford - Century)
26-7 Reclaim
260,150
260,150
Edmonton Ave (Montreal -Jefferson)
26-8 Reclaim
1,159,534
1,159,534
Boulder St & Cir - mill & overlay
26-9 Reclaim
417,643
417,643
Montreal/Edm RAB (Montreal - Hwy 15 S)
27-1 Const
1,694,000
1,694,000
Waller Dr
27-2 Partial
271,320
271,320
Hilltop Dr NE (Michigan St NE - Genes Dr
27-1 Reclaim
648,689
648,689
Lindy Ln NE (Pauls Rd NE to Genes Dr NE) 27-2 Reclaim 345,848 345,848
Garden Rd NE (Dead end - Hwy 7E) 27-3 Reclaim 323,618 323,618
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE) 27-4 Reclaim 151,335 151,335
Morningside Dr NE (Hilltop Dr NE - Dead end) 27-5 Reclaim 150,053 150,053
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE)
27-6 Reclaim
143,298
143,298
Genes Dr NE (Lindy Ln NE - Dead end)
27-7 Reclaim
35,483
35,483
Holtz Property Pond
27-2 Const
570,000
570,000
Sherwood Cir SE (Sherwood St SE - Dead
end)
28-2 Reclaim
174,923
174,923
Southview Ct SW (Linden -Sunset)
28-3 Reclaim
204,659
204,659
Southview Dr SW
28-4 Reclaim
291,130
291,130
Miller Ave (Harrington -Lynn)
28-5 Reclaim
229,014
229,014
Texas Ave (Maryland - California)
28-7 Reclaim
584,336
584,336
McDonald Dr SW (Lakewood - School)
28-8 Reclaim
1,180,109
1,180,109
N High Dr
28-1 Partial
368,160
368,160
5th Ave SE (Bridge - Hwy 22)
29-1 Overlay
671,034
671,034
Blackbird/Blackhawk/Bluejay
29-2 Overlay
462,560
462,560
Sunset St SW (Linden-Southview)
29-2 Reclaim
165,298
165,298
2nd Ave SW (Franklin -Main)
29-3 Reclaim
148,356
148,356
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
2,045,722
2,045,722
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
767,094
767,094
2030 Street/Trail Segment Maint: M/O &
30-1 Maint
456,000 456,000
Sealcoating
School Rd SW (SGR SW - Roberts Rd SW)
30-1 Const
2,173,434 2,173,434
Michigan St SE/NE (5th Ave -Hwy 7)
30-1 Partial 2,374,535 2,374,535
COST DETAIL BY DEPARTMENT
Project Description Project# 2026 2027 2028 2029 2030 Total
Harrington St SW (Linden-Juul Rd SW)
30-1 Reclaim
552,523
552,523
Grove St SW (5th-Washington)
30-2 Reclaim
896,033
896,033
Lakeview Ln (McDonald - School Rd)
30-3 Reclaim
222,836
222,836
7th Ave (Shady Ridge - School Rd)
30-4 Reclaim
411,063
411,063
Infrastructure Improvements Total
4,103,990 4,333,644 3,032,331
4,260,064 7,086,424
22,816,453
HATS Facility Fund
HATS Roof improvements
HATS 26-2
372,620
372,620
Wash bay improvements
HATS 27-1
100,000
100,000
HATS Storage building, fuel site
HATS 27-2
10,300,000
10,300,000
HATS HVAC replacement
HATS 29-1
150,000
150,000
HATS Mechanics Shop Improvements
HATS 30-1
500,000
500,000
HATS Facility Total
372,620 10,400,000 0
150,000 500,000
11,422,620
Subtotal - Other Funds
GRAND TOTAL
11,250,254 17,970,656 8,023,812 9,581,452 10,522,403 57,348,577
14,792,491 22,079,997 10,506,812 13,047,452 12,051,403 72,478,155
Capital Improvement Plan
Hutchinson, MN
2026-2030 Projects
FUNDING SUMMARY BY SOURCE
Source
2026
2027
2028
2029
2030
Total
Capital Projects Fund
197,650
163,500
30,000
52,500
50,000
493,650
Capital Projects - Facilities Plan
574,500
1,000,000
610,000
694,000
625,000
3,503,500
Capital Projects - Misc Infrastructure Maint
384,958
50,000
-
-
-
434,958
Capital Projects - Playground Plan
60,000
65,000
100,000
20,000
40,000
285,000
Community Improvement Fund
125,000
50,000
-
500,000
-
675,000
Compost Fund
350,000
352,000
290,000
55,000
1,047,000
Cooperative Agreement - HUC
-
-
-
17,500
17,500
Cooperative Agreement - ISD #423
60,000
102,000
-
162,000
Donations
125,000
-
-
125,000
Equip Replacement - Heavy Fleet
318,822
444,841
-
-
20,000
783,663
Equip Replacement - Small Fleet
453,250
414,000
343,000
286,000
414,000
1,910,250
GO Capital Improvement Plan Bonds
-
1,200,000
-
-
-
1,200,000
GO Equipment Bonds
350,000
500,000
-
-
-
850,000
GO Spec Assmt Improvement Bonds
1,967,561
1,490,549
2,310,399
1,705,629
2,521,393
9,995,531
GO Wastewater Revenue Bonds
2,800,000
-
-
-
-
2,800,000
Grants - Federal
160,000
-
380,000
540,000
Grants - McLeod County
-
-
-
48,000
-
48,000
Grants - State
998,557
9,760,000
613,000
2,288,000
128,000
13,787,557
HATS Facility Fund
372,620
100,000
-
-
500,000
972,620
Liquor Fund
30,000
40,000
-
-
70,000
Municipal State Aid
1,046,521
1,664,000
-
1,450,000
3,200,000
7,360,521
Refuse Fund
80,000
365,000
96,500
-
-
541,500
Special Assessments
645,108
693,095
515,664
813,859
952,694
3,620,420
Storm Water Fund
Unfunded Projects
Wastewater Fund
Water Fund
627,000
175,000
1,970,440
920,504
739,000
700,000
1,811,408
375,604
303,134
1,400,000
2,424,947
1,470,168
810,286
1,950,000
1,179,129
1,177,549
746,169
-
1,511,063
963,084
3,225,589
4,225,000
8,896,987
4,906,909
GRAND TOTAL 14,792,491 22,079,997 10,506,812 13,047,452 12,051,403 72,478,155
Capital Improvement Plan
Hutchinson, MN
2026.2030 Projects
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Capital Projects Fund
Shade Structure for the Aquatic Center Aqua 27-1
Land Purch for Columbarium expansion Cem 30-2
GPS Trimble unit and Robot Eng 29-1
Garage door modifications Fire 26-1
Irrigation at Library Square Parks 28-3 30,000 30,000
ICOR Tactical Robot PD 26-1 87,650 87,650
Handgun with optics replacement PD 27-1 40,000 40,000
Live Fire House Panel replacement PD 27-2 48,500 _ 48,500
New floor scrubber Rec 26-3 15,000 15,000
Capital Projects Fund Total 197,650 163,500 30,000 52,500 50,000 493,650
Capital Projects - Facilities Plan
Facility Plan - misc maintenance
Server room HVAC
City Center remodel
C.Ctr 26-Maint
C.Ctr 26-1
C.Ctr 26-2
50,000
13,000
300,000
50,000
13,000
300,000
City Center remodel
C.Ctr 27-1
800,000
800,000
Facility Plan - misc maintenance
C.Ctr 27-Maint
50,000
50,000
City Center garage
C.Ctr 28-1
290,000
290,000
Facility Plan - misc maintenance
C.Ctr 28-Maint
50,000
50,000
Facility Plan - misc maintenance
C.Ctr 29-Maint
50,000 50,000
City Center generator
C.Ctr 30-1
30,000 30,000
Facility Plan - misc maintenance
C.Ctr 30-Maint
50,000 50,000
West rink rubber floor
CA 26-1
70,000
70,000
West Rink Locker Room Furnance
CA 26-2
15,000
15,000
Commerical Dehumidifier for the Zamboni
Room
CA 26-3
10,000
10,000
Zamboni/Maintenance Room Roof
CA 30-1
200,000
200,000
West rink HVAC
CA 30-2
300,000
300,000
Garage floor concrete improvements
Fire 26-2
42,000
42,000
Install Epoxy Floor in Apparatus Bay
Fire 26-3
44,500
44,500
Library sidewalk improvements
Lib 28-1
10,000
10,000
Library HVAC replacement
Lib 29-1
100,000
100,000
Parks Garage HVAC
Parks 26-1
10,000
10,000
Parks Cold Storage
Parks 27-3
120,000
120,000
Roberts Park Concession/Restroom Bldg
Parks 29-2
250,000
250,000
Roberts Park Complex Perimeter Fencing
Parks 29-5
200,000
200,000
North Park - Tennis Court Resurface
Parks 30-1
35,000
35,000
Parks Shop Bathroom
Parks 30-3
10,000
10,000
HATS HVAC replacement
HATS 29-1
54,000
54,000
Office carpet replacement
Rec 26-1
10,000
10,000
HVAC Rooftop Unit for Rec Office
Rec 26-2
20,000
20,000
Replace gym floor
Senior Dining lighting improvements
HVAC replacement
Water St Garage Siding/Soffits
Rec 27-1
Sr Dine 28-1
Sr Dine 29-1
STRT 27-1
250,000
10,000
30,000
30,000
250,000
10,000
30,000
30,000
Capital Projects - Facilities Plan Total 574,500 1,000,000 610,000 694,000 625,000 3,503,500
Capital Projects - Misc Infrastructure Maint
_
Airport south taxiway mill & overlay
Air 26-1
47,850
47,850
Airport taxiway crackfrll
Air 26-2
11,093
11,093
Hangar 1 & 2 remodel
Air 26-3
75,415
75,415
Security Lighting upgrades
Air 26-4
6,600
6,600
Snow Shed
Air 26-5
105,000
105,000
Retaining Wall Repairs
Cem 26-1
10,000
10,000
Parking Lot improvements
Cem 27-1
50,000
50,000
Safe Streets for All Grant
Eng 26-1
40,000
40,000
Liquor store overflow parking lot reclaim
STRT 26-2
89,000
89,000
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Capital Projects - MIM Total 384,958 50,000 0 0 0 434,958
Capital Projects - Playground Plan
North Park - Playground Replacement Parks 26-2
60,000
60,000
Norlhwoods Park - Playground Replacement Parks 27-1
65,000
65,000
Masonic West River - Playground Parks 28-2
100,000
100,000
Replacement
South Park - Playground Replacement Parks 29-1
20,000
20,000
Tartan Park- Playground Replacements Parks 30-2
40,000 40,000
Capital Projects - Playground Plan Total
60,000
65,000
100,000 20,000
40,000 285,000
Community Improvement Fund
Pool Features Aqua 26-1
125,000
125,000
Park Signage Parks 27-2
50,000
50,000
Masonic West River Campground Expansion Parks 29-8
500,000
500,000
Community Improvement Fund Total
125,000
50,000
0 500,000
0 675,000
Compost Fund
Wheel loader
Comp
26-1
225,000
225,000
Live BottomTrailer
Comp
26-2
125,000
125,000
Office expansion
Comp
27-1
175,000
175,000
Bagging line improvements
Comp
27-2
27,000
27,000
Stacking conveyor
Comp
27-3
100,000
100,000
Forklift
Comp
27-4
50,000
50,000
Bagging line improvements
Comp
28-1
30,000
30,000
Skid loader
Comp
28-2
85,000
85,000
Site Improv - finished bulk storage area
Comp
28-3
175,000
175,000
Bagging line improvements
Comp
29-1
55,000
55,000
Compost Fund Total 350,000 352,000 290,000 55,000 0 1,047,000
Cooperative Agreement - HUC
GPS Trimble unit and Robot Eng 29-1 17,500 17,500
Cooperative Agreement - HUC Total 0 0 0 17,500 0 17,500
Cooperative Agreement - ISD #423
North Park - Playground Replacement Parks 26-2 60,000 60,000
Wide -area mower Parks 062 102,000 102,000
Cooperative Agreement - HUC Total 60,000 102,000 0 0 0 162,000
Donations
Outdoor Basketball Court Parks 26-4 125,000
Donations Total 125,000
Equip Replacement - Heavy Fleet
Tractor & Snow Removal Equipment Air 055
Fire Ladder Truck
Fire Ladder Truck
Fire 26-595
Fire 27-595
125,000
20,000 20,000
318,822
Truck single axle STRT 781 120,000 120,000
Equip Replacement - Heavy Fleet Total 318,822 444,841 0 0 20,000 783,663
Equip Replacement -Small Fleet
New building inspector vehicle
Toolcat 5600
Cemetery mower
Bldg 462
Cem 412
Cem 898
37,000
67,500
37,000
67,500
16,000 16,000
Ride -on Sprayer
Cem 30-1
20,000 20,000
Cemetery mower
Cem 30-3
17,000 17,000
1/2 ton work truck
Eng 945
46,000
46,000
SUV, command vehicle
Fire 856
63,000
63,000
Replace Minivan
IT 670
47,000 47,000
Tractor w/cab
Parks 357
89,550
89,550
1/2 Ton 4X2 Pickup
Parks 954
44,000
44,000
Wide -area mower
Parks 082
102,000
102,000
Truck, 1-ton snowplow
Parks 664
80,000 80,000
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Gang mower replacement
Truck, 1-ton
1/2 Ton 42 Pickup
John Deere Progator 1600
Parks 024
Parks 314
Parks 175
Parks 29-6
23,000
82,000
47,000
35,000
23,000
82,000
47,000
35,000
Sprayer HD200 AG & Turf
Parks 29-7
21,000
21,000
Soil Top Dresser
Parks 30-4
31,000
31,000
Truck, 1/2 ton
Parks 511
50,000
50,000
Squad car replacement
PD 609
60,000
60,000
SUV, Suburban
PD 029
88,000
88,000
Squad car replacement
PD 958
63,000
63,000
Replace Equinox
PD 205
52,000
52,000
Replace Equinox
PD 480
54,000
54,000
Squad car replacement
PD 349
67,000
67,000
Squad car replacement
PD 591
67,000
67,000
Truck, 3/4 ton 44
PD 465
69,000
69,000
Squad car replacement
PD 30-1
69,000
69,000
Squad car replacement
PD 30-2
69,000
69,000
1/2 ton pickup
STRT 775
46,000
46,000
1-ton 44 truck
Tractor with tracks
Aspalt Premix Heater w/trailer
Truck, 1/2 ton
Pneumatic roller
STRT 170
STRT 26-1
STRT 113
STRT 301
STRT 906
62,200
47,000
90,000
52,000
37,000
62,200
47,000
90,000
52,000
37,000
Equip Replacement - Small Fleet 453,250 414,000 343,000 286,000 414,000 1,910,250
GO Capital Improvement Plan Bonds
City Center remodel C.Ctr 27-1 1,200,000 1,200,000
GO Equipment Bonds
Fin; Ladder Truck
Fire Ladder Truck
GO Capital Improvement Plan Bonds Total
Fire 26-595 350,000
Fire 27-595
1,200, 000
GO Capital Improvement Plan Bonds Total 350,000 500,000
GO Spec Assmt Improvement Bonds
Larson St SW (Roberts -Lewis) 26-1 Reclaim 295,553
Bradford St SE (Summerset Ln - Century Ave 26-2 Reclaim 296,220
Orchard Ave SE (Bradford St SE - Elks Dr 26-3 Reclaim 275,650
SE)
0 1,200,000
350,000
500,000
1 0 850,000
295,553
296,220
275,650
Sherwood St SE (Summerset Ln SE -
Century Ave SE)
26-4 Reclaim
269,600
269,600
Elks Dr SE (Sherwood St SE - Orchard Ave
SE)
26-5 Reclaim
200,450
200,450
Bradford St SE (Century - Randall)
26-6 Reclaim
123,190
123,190
Randall (Bradford - Century)
26-7 Reclaim
124,400
124,400
Edmonton Ave (Montreal - Jefferson)
26-8 Reclaim
100,000
100,000
Boulder St & Cir - mill & overlay
26-9 Reclaim
282,498
282,498
Waller Dr
27-2 Partial
183,720
183,720
Hilltop Dr NE (Michigan St NE - Genes Dr
NE)
27-1 Reclaim
494,884
494,884
Lindy Ln NE (Pauls Rd NE to Genes Dr NE)
27-2 Reclaim
237,173
237,173
Garden Rd NE (Dead end - Hwy 7E) 27-3 Reclaim 242,843 242,843
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE) 27-4 Reclaim 104,785 104,785
Morningside Dr NE (Hilltop Dr NE - Dead end) 27-5 Reclaim 103,728 103,728
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE) 27-6 Reclaim 98,158 98,158
Genes Dr NE (Lindy Ln NE - Dead end) 27-7 Reclaim 25,258 25,258
Sherwood Cir SE (Sherwood St SE - Dead 28-2 Reclaim 133,415 133,415
Southview Ct SW (Linden -Sunset) 28-3 Reclaim 156,095 156,095
Southview Dr SW 28-4 Reclaim 222,049 222,049
Miller Ave (Harrington -Lynn) 28-5 Reclaim 174,671 174,671
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Texas Ave (Maryland - California)
McDonald Dr SW (Lakewood - School)
N High Dr
5th Ave SE (Bridge - Hwy 22)
28-7 Reclaim
28-8 Reclaim
28-1 Partial
29-1 Overlay
445,680
897,689
280,800
60,444
445,680
897,689
280,800
60,444
Blackbird/Blackhawk/Bluejay
29-2 Overlay
352,800
352,800
Sunset St SW (Linden-Southview)
29-2 Reclaim
125,739
125,739
2nd Ave SW (Franklin -Main)
29-3 Reclaim
112,852
112,852
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
468,723
468,723
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
585,071
585,071
2030 Street/Trail Segment Maint: M/0 &
30-1 Maint
376,000 376,000
Sealcoating
School Rd SW (SGR SW - Roberts Rd SW) 30-1 Const
223,542 223,542
Michigan St SE/NE (5th Ave -Hwy 7)
30-1 Partial
337,950
337,950
Harrington St SW (Linden-Juul Rd SW)
30-1 Reclaim
421,415
421,415
Grove St SW (5th-Washington)
30-2 Reclaim
681,597
681,597
Lakeview Ln (McDonald - School Rd)
30-3 Reclaim
169,048
169,048
7th Ave (Shady Ridge - School Rd)
30-4 Reclaim
311,841
311,841
GO Spec Assmt Improvement Bonds Total 1,967,561 1,490,549 2,310,399 1,705,629 2,521,393 9,995,531
GO Wastewater Revenue Bonds
Biosolids Project: Year 2 of 3 WWTF 26- 2,800,000 2,800,000
Biosolid
GO Wastewater Revenue Bonds Total 2,800,000 0 0 0 0 2,800,000
Grants - Federal
Tractor & Snow Removal Equipment Air 055 380,000 380,000
Safe Streets for All Grant Eng 26-1 160,000 160,000
Grants - Federal Total 160,000 0 0 0 380,000 540,000
Grants - McLeod County _
HATS HVAC replacement HATS 29-1 48,000 48,000
Grants - McLeod County Total
Grants - State
48,000 0 48,000
Airport south taxiway mill & overlay
Air 26-1
111,650
111,650
Airport taxiway crackfrll
Air 26-2
25,885
25,885
Hangar 1 & 2 remodel
Air26-3
113,122
113,122
Security Lighting upgrades
Air 26-4
15,400
15,400
Snow Shed
Air 26-5
245,000
245,000
HATS Storage building, fuel site
HATS 27-2
9,600,000
9,600,000
HATS HVAC replacement
HATS 29-1
48,000
48,000
Alan St Outlet Sediment Delta Removal
STWT 28-1
100,000
100,000
Clarifier rake mechanism & drive replacement
WWTF 26-1
175,000
175,000
Clarifier dome replacement
WWTF
26-2 250,000
250,000
MBR Fine bubble diffuser system
WWTF
26-3 62,500
62,500
replacement
Replace Ox Ditch RAS Pumps
WWTF
27-2 160,000
160,000
Clarifier WAS Pump Replacement
WWTF
28-1 88,000
88,000
Clarifier rake mechanism & drive replacement
WWTF
28-2 175,000
175,000
Clarifier dome replacement WWTF 28-3 250,000 250,000
Replace MBR Aeration Blower #3 w/ PD WWTF 29-1 240,000 240,000
Blower
W Ditch modification for Phos Compliance WWTF 29-4 2,000,000 2,000,000
MBR perm pump #1 & #3 replacement WWTF 30-1 128,000 128,000
Grants - State Total 998,557 9,760,000 613,000 2,288,000 128,000 13,787,557
HATS Facility _
HATS Roof improvements HATS 26-2 372,620 372,620
Wash bay improvements HATS 27-1 100,000 100,000
HATS Mechanics Shop Improvements HATS 30-1 500,000 500,000
HATS Facility Total 372,620 100,000 0 0 500,000 972,620
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Liquor Fund
Import/Craft Beer Cooler Refrigeration Liq 26-2 30,000
30,000
System _
Replace Automatic doors Liq 27-1 25,000 25,000
Replace Exterior Neon Sign Liq 27-2 15,000 15,000
Liquor Fund Total 30,000 40,000
Municipal State Aid
70,000
Edmonton Ave (Montreal -Jefferson) 26-8 Reclaim 1,046,521 1,046,521
Montreal/Edm RAB (Montreal - Hwy 15 S) 27-1 Const 1,664,000 1,664,000
5th Ave SE (Bridge - Hwy 22) 29-1 Overlay 450,000 450,000
South Grade Rd (School Rd -Underwood) 29-4 Reclaim 1,000,000 1,000,000
School Rd SW (SGR SW - Roberts Rd SW) 30-1 Const 1,700,000 1,700,000
Michigan St SE/NE (5th Ave -Hwy 7) 30-1 Partial 1,500,000 1,500,000
Municipal Sate Aid Total 1,046,521 1,664,000 0 1,450,000 3,200,000 7,360,521
Refuse Fund
Skidsteer Loader
Ref 236 80,000
80,000
Mid -Size SUV
Ref 27-1 40,000
40,000
Office Expansion
Ref 27-2 175,000
175,000
Scale Improvements & Relocation
Ref 27-3 150,000
150,000
Half -ton pickup
Ref 28-1 45,000
45,000
Forklift
Ref 645 51,500
51,500
Refuse Fund Total 80,000 365,000 96,500 0 0 541,500
Special Assessments
Larson St SW (Roberts -Lewis)
26-1 Reclaim
92,000
92,000
Bradford St SE (Summerset Ln - Century Ave
26-2 Reclaim
80,750
80,750
SE)
Orchard Ave SE (Bradford St SE - Elks Dr
26-3 Reclaim
80,750
80,750
SE)
Elks Dr SE (Sherwood St SE - Orchard Ave
26-5 Reclaim
41,000
41,000
SE)
Bradford St SE (Century - Randall)
26-6 Reclaim
80,750
80,750
Randall (Bradford - Century)
26-7 Reclaim
80,750
80,750
Edmonton Ave (Montreal - Jefferson)
26-8 Reclaim
13,013
13,013
Boulder St & Cir - mill & overlay
26-9 Reclaim
95,345
95,345
Montreal/Edm RAB (Montreal - Hwy 15 S)
27-1 Const
10,000
10,000
Waller Dr
27-2 Partial
47,600
47,600
Hilltop Dr NE (Michigan St NE - Genes Dr
27-1 Reclaim
113,805
113,805
NE)
Lindy Ln NE (Pauls Rd NE to Genes Dr NE)
27-2 Reclaim
60,675
60,675
Garden Rd NE (Dead end - Hwy 7E) 27-3 Reclaim 56,775 56,775
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE) 27-4 Reclaim 26,550 26,550
Morningside Dr NE (Hilltop Dr NE - Dead end) 27-5 Reclaim 26,325 26,325
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE) 27-6 Reclaim 25,140 25,140
Genes Dr NE (Lindy Ln NE - Dead end) 27-7 Reclaim 6,225 6,225
Holtz Property Pond 27-2 Const 320,000 320,000
Sherwood Cir SE (Sherwood St SE - Dead 28-2 Reclaim 29,648 29,648
Southview Ct SW (Linden -Sunset) 28-3 Reclaim
Southview Dr SW 28-4 Reclaim
Miller Ave (Harrington -Lynn) 28-5 Reclaim 38,816 38,816
Texas Ave (Maryland - California) 28-7 Reclaim 99,040 99,040
McDonald Dr SW (Lakewood - School) 28-8 Reclaim 201,728 201,728
N High Dr 28-1 Partial 62,400 62,400
5th Ave SE (Bridge - Hwy 22)
29-1 Overlay
114,707
114,707
Blackbird/Blackhawk/Bluejay
29-2 Overlay
78,400
78,400
Sunset St SW (Linden-Southview)
29-2 Reclaim
28,256
28,256
2nd Ave SW (Franklin -Main)
29-3 Reclaim
25,360
25,360
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
437,120
437,120
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
130,016
130,016
2030 Street/Trail Segment Maint: M/O &
30-1 Maint
80,000
80,000
Sealcoating
School Rd SW (SGR SW - Roberts Rd SW)
30-1 Const
100,000
100,000
Michigan St SE/NE (5th Ave -Hwy 7)
30-1 Partial
416,585
416,585
Harrington St SW (Linden-Juul Rd SW)
30-1 Reclaim
93,648
93,648
Grove St SW (5th-Washington)
30-2 Reclaim
153,168
153,168
Lakeview Ln (McDonald - School Rd)
30-3 Reclaim
38,420
38,420
7th Ave (Shady Ridge - School Rd)
30-4 Reclaim
70,873
70,873
Special Assessments
Total
645,108
693,095
515,664 813,859 952,694
3,620,420
Storm Water Fund
Larson St SW (Roberts -Lewis)
26-1 Reclaim
35,000
35,000
Bradford St SE (Summerset Ln - Century Ave
26-2 Reclaim
25,000
25,000
SE)
Orchard Ave SE (Bradford St SE - Elks Dr
26-3 Reclaim
25,000
25,000
SE)
Sherwood St SE (Summerset Ln SE -
26-4 Reclaim
25,000
25,000
Century Ave SE)
Elks Dr SE (Sherwood St SE - Orchard Ave
26-5 Reclaim
25,000
25,000
SE)
Bradford St SE (Century - Randall)
26-6 Reclaim
25,000
25,000
Randall (Bradford - Century)
26-7 Reclaim
25,000
25,000
Boulder St & Cir - mill & overlay
26-9 Reclaim
17,000
17,000
Montreal/Edm RAB (Montreal - Hwy 15 S)
27-1 Const
10,000
10,000
Waller Dr
27-2 Partial
20,000
20,000
Hilltop Dr NE (Michigan St NE - Genes Dr
27-1 Reclaim
20,000
20,000
NE)
Lindy Ln NE (Pauls Rd NE to Genes Dr NE)
27-2 Reclaim
24,000
24,000
Garden Rd NE (Dead end - Hwy 7E)
27-3 Reclaim
12,000
12,000
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE)
27-4 Reclaim
10,000
10,000
Morningside Dr NE (Hilltop Dr NE - Dead end)
27-5 Reclaim
10,000
10,000
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE)
27-6 Reclaim
10,000
10,000
Genes Dr NE (Lindy Ln NE - Dead end)
27-7 Reclaim
2,000
2,000
Holtz Property Pond
27-2 Const
250,000
250,000
Sherwood Cir SE (Sherwood St SE - Dead
end)
Southview Ct SW (Linden -Sunset)
28-2 Reclaim
28-3 Reclaim
5,930
6,938
5,930
6,938
Southview Dr SW
28-4 Reclaim
9,869
9,869
Miller Ave (Harrington -Lynn)
28-5 Reclaim
7,763
7,763
Texas Ave (Maryland - California)
28-7 Reclaim
19,808
19,808
McDonald Dr SW (Lakewood - School)
28-8 Reclaim
40,346
40,346
N High Dr
28-1 Partial
12,480
12,480
5th Ave SE (Bridge - Hwy 22)
29-1 Overlay
22,941
22,941
Blackbird/Blackhawk/Bluejay
29-2 Overlay
15,680
15,680
Sunset St SW (Linden-Southview)
29-2 Reclaim
5,651
5,651
2nd Ave SW (Franklin -Main)
29-3 Reclaim
5,072
5,072
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
69,939
69,939
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
26,003
26,003
School Rd SW (SGR SW - Roberts Rd SW)
0
74,946 74,946
Michigan St SE/NE (5th Ave -Hwy 7)
30-1 Partial
60,000
60,000
Harrington St SW (Linden-Juul Rd SW)
30-1 Reclaim
18,730
18,730
Grove St SW (5th-Washington)
30-2 Reclaim
30,634
30,634
Lakeview Ln (McDonald - School Rd)
30-3 Reclaim
7,684
7,684
7th Ave (Shady Ridge - School Rd)
30-4 Reclaim
14,175
14,175
Summerset Pond Cleaning
STWT 26-1 128,000
128,000
Holtz Stormwater Pond Planning/Design
STWT 26-4 50,000
50,000
Street Infrastructure Improvements/Lining
STWT 26-INF 200,000
200,000
Bradford St SE drainage improvement
STWT 27-1 121,000
121,000
Street Infrastructure Improvements/Lining
STWT 27-INF 250,000
250,000
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Street Infrastructure Improvements/Lining
STWT 28-INF
200,000
200,000
SW 63 Bridgewater Pond Improvement
STWT 29-1
40,000
40,000
8th Ave NW drainage improvement
STWT 29-2
75,000
75,000
Vac -All Sweeper -CB Cleaner
STWT 879
375,000
375,000
Street Infrastructure Improvements/Lining
STWT 29-INF
175,000
175,000
Clifton Heights Drainage Improvements
STWT 30-1
100,000
100,000
South Watershed Drainage Study
STWT 30-2
100,000
100,000
Leaf Vacuum
STWT 104
140,000
140,000
Street Infrastructure Improvements/Lining
STWT 30-INF
200,000
200,000
Tractor with tracks
STRT 26-1 47,000
47,000
Storm Water Fund Total 627,000 739,000 303,134 810,286 746,169 3,225,589
Unfunded Projects
Pool resurfacing Aqua 29-1 450,000 450,000
West rink floor replacement CA 28-1 1,400,000 1,400,000
East rink floor replacement CA 29-1 1,500,000 1,500,000
Outdoor Basketball Court Parks 26-4 175,000 175,000
HATS Storage building, fuel site HATS 27-2 700,000 700,000
Rural Fire Dept Fund Total 175,000 700,000 1,400,000
Wastewater Fund
Larson St SW Roberts -Lewis) 26-1 Reclaim 20,000
Bradford St SE (Summerset Ln - Century Ave 26-2 Reclaim 15,000
Orchard Ave SE (Bradford St SE - Elks Dr 26-3 Reclaim 15,000
SE)
Sherwood St SE (Summerset Ln SE - 26-4 Reclaim 15,000
Century Ave SE)
Elks Dr SE (Sherwood St SE - Orchard Ave 26-5 Reclaim
A:
15,000
1,950,000 0 4,225,000
20,000
15,000
15,000
15,000
15,000
Bradford St SE (Century - Randall)
26-6 Reclaim
15,000
15,000
Randall (Bradford - Century)
26-7 Reclaim
15,000
15,000
Boulder St & Cir - mill & overlay
26-9 Reclaim
1,835
1,835
Montreal/Edm RAB (Montreal - Hwy 15 S)
27-1 Const
5,000
5,000
Waller Dr
27-2 Partial
10,000
10,000
Hilltop Dr NE (Michigan St NE - Genes Dr
NE)
27-1 Reclaim
10,000
10,000
Lindy Ln NE (Pauls Rd NE to Genes Dr NE)
27-2 Reclaim
12,000
12,000
Garden Rd NE (Dead end - Hwy 7E) 27-3 Reclaim 6,000 6,000
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE) 27-4 Reclaim 5,000 5,000
Morningside Dr NE (Hilltop Dr NE - Dead end) 27-5 Reclaim 5,000 5,000
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE) 27-6 Reclaim 5,000 5,000
Genes Dr NE (Lindy Ln NE - Dead end) 27-7 Reclaim 1,000 1,000
Sherwood Cir SE (Sherwood St SE - Dead 28-2 Reclaim 2,965 2,965
Southview Ct SW (Linden -Sunset) 28-3 Reclaim
Southview Dr SW 28-4 Reclaim
Miller Ave (Harrington -Lynn) 28-5 Reclaim 3,882 3,882
Texas Ave (Maryland - California) 28-7 Reclaim 9,904 9,904
McDonald Dr SW (Lakewood - School) 28-8 Reclaim 20,173 20,173
N High Dr 28-1 Partial 6,240 6,240
5th Ave SE (Bridge - Hwv 22) 29-1 Overlav 11,471 11,471
Blackbird/Blackhawk/Bluejay
29-2 Overlay
7,840
7,840
Sunset St SW (Linden-Southview)
29-2 Reclaim
2,826
2,826
2nd Ave SW (Franklin -Main)
29-3 Reclaim
2,536
2,536
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
34,970
34,970
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
13,002
13,002
School Rd SW (SGR SW - Roberts Rd SW)
30-1 Const
37,473 37,473
Michigan St SE/NE (5th Ave -Hwy 7) 30-1 Partial 30,000 30,000
Harrington St SW (Linden-Juul Rd SW) 30-1 Reclaim 9,365 9,365
Grove St SW (5th-Washington) 30-2 Reclaim 15,317 15,317
FUNDING DETAIL BY SOURCE
Project Description
Project #
2026
2027 2028
2029 2030 Total
Lakeview Ln (McDonald - School Rd)
7th Ave (Shady Ridge - School Rd)
30-3 Reclaim
30-4 Reclaim
3,842 3,842
7,087 7,087
Truck single axle
Biosolids Project: Year 2 of 3
STRT 781
WWTF 26-
Biosolid
900,000
120,000
120,000
900,000
Biosolids Project: Year 3 of 3
WWTF 27-
Biosolid
900,000
900,000
Solids Storage Bunker
WWTF 28-
Biosolid
1,000,000
1,000,000
Clarifier rake mechanism & drive replacement
WWTF 26-1
175,000
175,000
Clarifier dome replacement
WWTF 26-2
250,000
250,000
MBR Fine bubble diffuser system
replacement
WWTF 26-3
62,500
62,500
Replace Solar Field Inverters
WWTF 26-10
100,000
100,000
WWTF Collection System Infrastructure
WWTF 26-INF
71,105
71,105
Sewer Lining
WWTF 26-Line
300,000
300,000
WWTF buildings 50,60 & 80 roof replace
WWTF 27-1
150,000
150,000
Replace Ox Ditch RAS Pumps
WWTF 27-2
40,000
40,000
HATS LS MCC Building
WWTF 27-3
100,000
100,000
Roadway & Parking Lot Improvements -
Phase 2
WWTF 27-4
80,000
80,000
WWTF Collection System Infrastructure
WWTF 27-INF
62,408
62,408
Sewer Lining
WWTF 27-Line
300,000
300,000
Forklift Replacement
WWTF 227
31,900
31,900
SUV, Administrative Vehicle
WWTF 964
38,100
38,100
Clarifier WAS Pump Replacement
WWTF 28-1
22,000
22,000
Clarifier rake mechanism & drive replacement
WWTF 28-2
175,000
175,000
Clarifier dome replacement
WWTF 28-3
250,000
250,000
Receiving/Bulk water station
WWTF 28-4
250,000
250,000
WWTF Collection System Infrastructure
WWTF 28-INF
56,380
56,380
Sewer Lining
WWTF 28-Line
300,000
300,000
Replace 2020 John Deere Mower
WWTF 563
15,000 15,000
Replace MBR Aeration Blower #3 w/ PD
Blower
WWTF 29-1
60,000 60,000
Replace MBR Perm Pump #2
WWTF 29-2
89,600 89,600
Replace Main Lift Station Pump #4
WWTF 29-3
75,800 75,800
W Ditch modification for Phos Compliance
WWTF 29-4
500,000 500,000
WWTF Collection System Infrastructure
WWTF 29-INF
66,084 66,084
Sewer Lining
WWTF 29-1-ine
300,000 300,000
1/2 Ton Work Truck
WWTF 253
60,000 60,000
MBR perm pump #1 & #3 replacement
WWTF 30-1
32,000 32,000
EQ basin liner replacement
WWTF Bldgs 10,20,90&100 Roof
Replacement
MBR Membrane Replacement/Expansion
Sewer Lining
Toolcat Replacement
WWTF Collection System Infrastructure
Bulk Fill / Dump station at HATS
WWTF 30-2
WWTF 30-3
WWTF 30-4
WWTF 30-Line
WWTF 661
WWTF 30-INF
WTF 28-1
250,000
75,000 75,000
200,000 200,000
600,000 600,000
300,000 300,000
74,895 74,895
66,084 66,084
250,000
Wastewater Fund Total
Water Fund
Larson St SW (Roberts -Lewis) 26-1 Reclaim
Bradford St SE (Summerset Ln - Century Ave 26-2 Reclaim
SE)
Orchard Ave SE (Bradford St SE - Elks Dr 26-3 Reclaim
SE)
1,970,440
20,000
15,000
15,000
1,811,408 2,424,947
1,179,129 1,511,063 8,896,987
_
20,000
15,000
15,000
Sherwood St SE (Summerset Ln SE -
Century Ave SE)
26-4 Reclaim
15,000
15,000
Elks Dr SE (Sherwood St SE - Orchard Ave
SE)
Bradford St SE (Century - Randall)
26-5 Reclaim
26-6 Reclaim
15,000
15,000
15,000
15,000
FUNDING DETAIL BY SOURCE
Project Description Project # 2026 2027 2028 2029 2030 Total
Randall (Bradford - Century) 26-7 Reclaim 15,000 15,000
Boulder St & Cir - mill & overlay 26-9 Reclaim 20,965 20,965
Montreal/Edm RAB (Montreal - Hwy 15 S) 27-1 Const 5,000 5,000
Waller Dr 27-2 Partial 10,000 10,000
Hilltop Dr NE (Michigan St NE - Genes Dr 27-1 Reclaim 10,000 10,000
Lindy Ln NE (Pauls Rd NE to Genes Dr NE) 27-2 Reclaim
12,000
12,000
Garden Rd NE (Dead end - Hwy 7E) 27-3 Reclaim 6,000 6,000
Pauls Rd NE (Hilltop Dr NE - Lindy Ln NE) 27-4 Reclaim 5,000 5,000
Morningside Dr NE (Hilltop Dr NE - Dead end) 27-5 Reclaim 5,000 5,000
Mark Dr NE (Hilltop Dr NE - Lindy Ln NE) 27-6 Reclaim 5,000 5,000
Genes Dr NE (Lindy Ln NE - Dead end) 27-7 Reclaim 1,000 1,000
Sherwood Cir SE (Sherwood St SE - Dead 28-2 Reclaim 2,965 2,965
Southview Ct SW (Linden -Sunset) 28-3 Reclaim 3,469 3,469
Southview Dr SW
28-4 Reclaim
4,934
4,934
Miller Ave (Harrington -Lynn)
28-5 Reclaim
3,882
3,882
Texas Ave (Maryland - California)
28-7 Reclaim
9,904
9,904
McDonald Dr SW (Lakewood - School)
28-8 Reclaim
20,173
20,173
N High Dr
28-1 Partial
6,240
6,240
5th Ave SE (Bridge - Hwy 22)
29-1 Overlay
11,471
11,471
Blackbird/Blackhawk/Bluejay
29-2 Overlay
7,840
7,840
Sunset St SW (Linden-Southview)
29-2 Reclaim
2,826
2,826
2nd Ave SW (Franklin -Main)
29-3 Reclaim
2,536
2,536
South Grade Rd (School Rd -Underwood)
29-4 Reclaim
34,970
34,970
4th Ave SW (Lynn Rd -Main)
29-5 Reclaim
13,002
13,002
School Rd SW (SGR SW - Roberts Rd SW)
30-1 Const
37,473 37,473
Michigan St SE/NE (5th Ave -Hwy 7)
30-1 Partial
30,000
30,000
Harrington St SW (Linden-Juul Rd SW)
30-1 Reclaim
9,365
9,365
Grove St SW (5th-Washington)
30-2 Reclaim
15,317
15,317
Lakeview Ln (McDonald - School Rd)
30-3 Reclaim
3,842
3,842
7th Ave (Shady Ridge - School Rd)
30-4 Reclaim
7,087
7,087
Receiving/Bulk water station
WWTF 28-4
250,000
250,000
Water Meter Replacement
WTF 26-1
400,000
400,000
Street Infrastructure Improvements
WTF 26-INF
124,539
124,539
Well 5 Rehabilitation & Recovery Treatment
WTF 26-3
100,000
100,000
Compressor Replacement
WTF 26-4
75,000
75,000
Plant Optimization Study Phase 3
WTF 26-5
50,000
50,000
Forklift
WTF 835
40,000
40,000
Street Infrastructure Improvements
WTF 27-INF
116,604
116,604
Well 8 Rehabilitation & Recovery Treatment
WTF 27-1
100,000
100,000
Concentrate piping replacement
WTF 27-2
100,000
100,000
Bulk Fill / Dump station at HATS
WTF 28-1
250,000
250,000
Sulfate Reduction of Concentrate
WTF 28-2
Street Infrastructure Improvements
WTF 28-INF
Scissors Lift
WTF 939
Galvanized Service Line Replacements -
WTF 29-1
Phase 1
Century Tower Rehab WTF 29-2
Street Infrastructure Improvements WTF 29-INF
112 ton work truck WTF 984
Well 4 Rehabilitation and Recovery Treatment WTF 30-1
250,000
250,000
750,000 750,000
66,804 66,804
38,100 38,100
110,000 110,000
Well 9 Construction WTF 30-2 750,000 750,000
Water Fund Total 920,504 375,604 1,470,168 1,177,549 963,084 4,906,909
GRAND TOTAL 14,792,491 22,079,997 10,506,812 13,047,452 12,051,403 72,478,155
FACILITIES PLAN
As of December 23, 2025
Year
Beginning
Balance
(LGA)
Funding
Improvements
Ending
Balance
2025
$264,189
$800,000
-$899,858
$164,331
2026
$164,331
$800,000
-$574,500
$389,831
2027
$389,831
$800,000
-$1,000,000
$189,831
2028
$189,831
$800,000
-$610,000
$379,831
2029
$379,831
$800,000
-$694,000
$485,831
2030
$485,831
$800,000
-$625,000
$660,831
Target
Original
Actual Costs
Est. Costs
Year
Facility
Project
Estimate
to Date
to Complete
Total Costs
2025
Roberts Park
Lighting improvements
690,000
10,064
679,936
690,000
2025
VMF
Restroom improvements
30,000
30,518
30,518
2025
Parks Garage
New Overhead doors
35,000
34,665
34,665
2025
Waterpark
Surge tank / major repairs
26,000
26,022
(22)
26,000
2025
Waterpark
Pool re -coat
60,000
27,750
32,250
60,000
2025
Civic Arena
West rink HVAC
15,000
22,389
(7,389)
15,000
2025
City Center
Facility analysis
30,000
31,725
31,725
2025
Various
Miscellaneous improvements
50,000
11,950
11,950
2025 Total 936,000 195,083 704,775 899,858
2026
City Center
Server room HVAC
13,000
13,000
13,000
2026
City Center
Remodel
300,000
300,000
300,000
2026
Civic Arena
West rink rubber flooring
70,000
70,000
70,000
2026
Fire
Concrete repairs
42,000
42,000
42,000
2026
Fire
Garage floor epoxy
44,500
44,500
44,500
2026
Parks
Parks garage HVAC
10,000
10,000
10,000
2026
Recreation Center
RTU/Office space
20,000
20,000
20,000
2026
Recreation Center
HVAC replacement for gym
25,000
25,000
25,000
2026
Various
Miscellaneous improvements
50,000
50,000
50,000
2026 Total 574,500 574,500 574,500
2027 Parks Garage
Cold storage steel/concrete
120,000
120,000
120,000
2027 Water Street Garage
Siding/soffits
30,000
30,000
30,000
2027 City Center
Remodel
800,000
800,000
800,000
2027 Various
Miscellaneous improvements
50,000
50,000
50,000
2027 Total 1,000,000 1,000,000 1,000,000
2028
City Center
Garage
290,000
290,000
290,000
2028
Library
Sidewalk improvements
10,000
10,000
10,000
2028
Recreation Center
New gym floor
250,000
250,000
250,000
2028
Senior Dining
Lighting improvements
10,000
10,000
10,000
2028
Various
Miscellaneous improvements
50,000
50,000
50,000
2028 Total 610,000 610,000 610,000
2029
Library
HVAC replacement
100,000
100,000
100,000
2029
Senior Dining
HVAC replacement
30,000
30,000
30,000
2029
HATS Facility
HVAC replacement (City share only)
54,000
54,000
54,000
2029
Recreation Center
Office carpet replacement
10,000
10,000
10,000
2029
Roberts Park
Concession/restroom upgrades
250,000
250,000
250,000
2029
Roberts Park
Perimeter fencing
200,000
200,000
200,000
2029
Various
Miscellaneous improvements
50,000
50,000
50,000
2029 Total 694,000 694,000 694,000
2030
City Center
Generator
30,000
30,000
30,000
2030
Civic Arena
Roof maintenance
200,000
200,000
200,000
2030
Civic Arena
West rink HVAC
300,000
300,000
300,000
2030
North Park
Tennis court resurface
35,000
35,000
35,000
2030
Parks
Parks garage bath/shower
10,000
10,000
10,000
2030
Various
Miscellaneous improvements
50,000
50,000
50,000
2030 Total 625,000 625,000 625,000
PLAYGROUND FUNDING
As of December 23, 2025
Year
Beginning
Balance
(LGA)
Funding
Donations
Received Improvements
Ending
Balance
2025
$147,901
$50,000
$5,000
-$72,418
$130,483
2026
$130,483
$50,000
$0
-$120,000
$60,483
2027
$60,483
$50,000
$0
-$65,000
$45,483
2028
$45,483
$50,000
$0
-$100,000
-$4,517
2029
-$4,517
$50,000
$0
-$20,000
$25,483
2030
$25,483
$50,000
$0
-$40,000
$35,483
Budgeted
Donations
Total
Actual
Year
Park
Project
Costs
Received
Funding
Costs Variance
2025
Oddfellows
Playground Replacement
82,709.00
5,000.00
87,709.00
72,418.10 (15,290.90)
2025 Total
82,709.00
5,000.00
87,709.00
72,418.10 (15,290.90)
2026
North Park
Playground Replacement
60,000.00
60,000.00
120,000.00
-
2026 Total
60,000.00
60,000.00
120,000.00
- -
2027
Northwoods
Playground Replacement
65,000.00
-
65,000.00
-
2027 Total
65,000.00
-
65,000.00
- -
2028
Masonic West River
Playground Replacement
100,000.00
100,000.00
-
2028 Total
100,000.00
-
100,000.00
- -
2029
South Park
Playground Replacement
20,000.00
20,000.00
-
2029 Total
20,000.00
-
20,000.00
- -
2030
Tartan Park
Playground Replacement
40,000.00
40,000.00
-
2030 Total
40,000.00
-
40,000.00
- -
FLEET INVENTORY
Annual Inflation
4.00% 4.00% 3.00% 3.00% 3.00%
GENERAL FUND
1.040 1.082 1.114 1.147 1.182
12/23/2025
New Purchase
Inflation Factor
Backlog Replacement
1.050
To be Disposed
Estimated *
5-Year CIP
Target
Acquisition Replace 2025
Vehicle ID Year Make
Model Life
Cost Cost Backlog
2026 2027 2028 2029 2030
BLDG-462-CAR
2014
Ford
Car, Fusion 4-door
12
$18,422
$42,000
37,000
BLDG-572-SUV
2019
Ford
SUV, Escape
12
$22,736
$42,000
-
BLDG-442-TK5
2023
Dodge
Ram 1500 1/2 ton
12
$42,077
$46,200
-
BLDG INSPECTION -Total
$83,235
$130,200
$0 $37,000
$0
$0 $0 $0
INFO-235-SUV
2017
Dodge
Minivan, Grand Caravan
12
$22,704
$42,000
-
-
INFO-670-SUV
2013
Dodge
Minivan, Caravan SE
12
$22,154
$42,000
47,000
$44,858
$0 $0
$0
$47,000 $0 $0
ENGR-280-SUV
2020
Jeep
SUV, Cherokee Laredo
12
$27,714
$42,000
-
ENGR-360-TK5
2019
Chevrolet
Truck, 1/2 ton 4x4
12
$29,970
$42,000
ENGR-742-SUV
2022
Mitsubishi
SUV, Outlander Phev
12
$34,723
$42,000
ENGR-945-TK5
2012
Ford
Truck, 1/2 ton 44
12
$23,867
$42,000
46,000
ENGINEERING - Total
$116,274 Mr
$168,0
$0 $0
$46,000
$0 $0 $0
FIRE-824-SUV
2023
Ford
SUV, Interceptor, Chief
12
$52,719
$63,000
-
FIRE-856-SUV
2017
Ford
SUV, Interceptor, Command
12
$37,555
$57,800
63,000
FIRE-595-FTK
2001
Pierce
Fire Truck, Ladder 1
25
$730,000
$2,094,304
668,822
824,841
FIRE-188-TK1
2002
Ford
Truck, 1-ton 44, Utility 3 - 50%
20
_
_
FIRE-838-TK1
2021
Chevrolet
Truck, 1-ton 44, Rescue 8 - 50%
20
$51,739
$63,000
FIRE-524-FTK
2008
Spartan/General
Fire Truck, Engine 7 - 50%
25
$321,995
$462,000
FIRE-451-FTK
2016
Rosenbauer
Truck, Rescue/Pump, Engine 2 - 50%
25
$289,453
$441,000
FIRE-198-GND
2023
Polaris
UTV, Ranger Crew XP - 50%
20
$29,403
FIRE-606-UTL
2006
Mercury
Boat, Rescue, Inflatable
20
$5,961
$13,100
-
-
FIRE - Total
$1,518,825
$3,194,204F
$668,822
$887,841
$0 $0 $0
PARK-835-SUV
2025
Ford
Explorer�;i=
12
$46,340
$46,300
-
-
- - -
PARK-520-TK5
2020
Dodge
Truck, 1/2ton 42
12
$20,264
$42,000
PARK-521-TK5
2020
Dodge
Truck, 1/2ton 42
12
$20,264
$42,000
PARK-954-TK5
2011
Ford
Truck, 1/2ton 42
12
$20,870
$42,000
PARK-175-TK5
2014
Ford
Truck, 1/2ton 42
12
$18,842
$42,000
PARK-511-TK5
2017
Ford
Truck, 1/2 ton F150 pickup
12
$21,422
$42,000
PARK-512-TK5
2017
Ford
Truck, 1/2 ton F150 pickup
12
$21,422
$42,000
PARK-113-TK5
2018
Ford
Truck, 1/2 ton F150 pickup
12
$22,706
$42,000
PARK-114-TK5
2018
Ford
Truck, 1/2 ton F150 pickup
12
$22,706
$42,000
PARK-724-TK5
2025
Chevrolet
Truck, 3/4 ton 4x4 w/ snowplow M
9
$46,159
$52,500
PARK-497-TK3
2011
Ford
Truck, 3/4 ton 44
9
$26,074
$73,500
PARK-314-TK1
2012
Ford
Truck, F-550 Class 5 crew cab
15
$39,756
$73,500
PARK-664-TK1
2016
Ford
Truck, 1-ton F350 Super
9
$32,250
$69,500
PARK-805-TK1
2017
Ford
Truck, 1-Ton F550 Super
15
$44,099
$73,500
PARK-806-TK1
2017
Ford
Truck, 1-Ton F550 Super
15
$57,149
$73,500
PARK-082-TRC
2019
Toro
Toro Groundsmaster400D
7
$59,950
$94,500
PARK-062-TRC
2019
Toro
Toro 400D (100% School)
7
$59,950
$94,500
PARK-684-TRC
2024
Toro
Toro Groundsmaster4000D
7
$89,552
$94,500
PARK-357-TRC
2013
John Deere
Tractor, 4720 w/ cab
10
$45,000
$77,700
PARK-024-GND
2020
Landpride
11'flexgang mower
7
$14,950
$21,000
PARK-636-SKD
2016
Bobcat
Walk -behind loader, MT55
15
$17,950
$31,500
PARK-547-SKD
2022
Bobcat
Skid steer loader, S76 T4
15
$50,530
$63,000
PARK-086-SKD
2024
Bobcat
Skid steer loader, S66 T4
15
$60,250
$63,000
PARK-077-SKD
2020
Bobcat
Toolcat5610
15
$51,500
$63,000
PARK-889-GND
2024
Toro
Field Pro 6040
10
$44,425
$47,300
PARK-384-UTL
2016
Zamboni
Ice Resurfacer
20
$129,697
$189,000
PARK-556-UTL
2020
Zamboni
Ice Resurfacer
20
$141,791
$189,000
PARK-632-UTL
2013
Skyjack
Scissors lift
20
$9,384
$33,600
FLEET INVENTORY
GENERALFUND
12/23/2025 New Purchase
Backlog Replacement
To be Disposed
Annual Inflation 4.00% 4.00% 3.00% 3.00% 3.00%
1.040 1.082 1.114 1.147 1.182
Inflation Factor
1.050
Estimated * 5-Year CIP
Target Acquisition Replace 2025
Vehicle ID Year Make Model Life Cost Cost Backlog 2026 2027 2028 2029 2030
2000 Tycrop MH400 Soil Top Dresser 20 $26,300 - 31,000
2017 JOHN DEERE Progator 1600 TURBO SERIES II 9 $22,800 $30,500 35,000 -
2017 JOHN DEERE Sprayer HD200 AG & TURF 9 $13,300 $18,400 21,000 -
PARKS - Total = $1,271,352 $1,935,100 $65,000 $133,550 $102,000 $152,000 $136,000 $81,000
POLC-958-SQD 2023 Ford Explorer Interceptor Hybrid 5 $51,541 $58,000 - - 63,000 - - -
POLC-349-SQD 2024 Ford Explorer Interceptor 5 $64,800 $58,000 - 67,000
C-246-SQD 2025 Ford Explorer Interceptor 5 $61,500 $58,000 - - 69,000
POLC-609-SQD 2021 Ford Explorer I nterceptor 5 $46,481 $58,000 60,000 -
kC-609-SQD 2025 Ford Explorer Interceptor 5 $63,130 $58,000 - 69,000
POLC-170-SQD 2018 Ford Explorer Interceptor 5 Spare Equipment
POLC-591-SQD 2024 Ford Explorer Interceptor 5 $65,300 $58,000
POLC-205-SUV 2014 Chevrolet SUV, Equinox AWD 12 $26,241 $48,300
POLC-480-SUV 2014 Chevrolet SUV, Equinox AWD 12 $26,241 $48,300
POLC-029-SUV 2017 Chevrolet SUV, Suburban 44 #4 9 $55,550 $81,100
POLC-465-TK5 2018 Chevrolet Truck, 3/4 44 9 $36,240 $57,900
POLC-438-SUV 2020 Ford Explorer Interceptor Admin Car 12 $40,203 $48,300
POLC-487-CAR 2019 Chevrolet Car, Impala - Chief's Vehicle 12 $26,528 $42,000
POLC-467-TK1 2018 RAM 5500 #11 25 $160,966 $224,700
POLC-881-TK1 2006 Dodgen Truck #12, 1-ton 42 Command 25 $154,400
POLC-361-TRL 2001 Cargo Trailer, Enclosed tandem 20 $14,100
POLC-001-UTL 2002 Onan Generator, Cummins w/ trailer Do not Replace - - - - -
POLICE - Total $724,721 $1,067,100 $0 $60,000 $203,000 $54,000 $134,000 $207,000
STRT-301-TK5 2017 Chevrolet Truck, 1/2 ton reg cab 12 $26,609 $44,100 - - - - 52,000
STRT-775-TK5 2006 Dodge Truck, 1/2ton ex cab 12 $18,000 $44,100
STRT-100-TK1 2019 Ford Truck, 1-ton 44w/flatbed 15 $44,234 $71,700
STRT-170-TK1 2008 Ford Truck, 1-ton 44 15 $26,648 $71,700
STRT-197-TK1 2022 Ford Ford F550 42 w/ flatbed & hoist 15 $55,278 $60,900
STRT-198-TK1 2022 Ford Ford F550 44 w/ flat dump 15 $61,347 $71,700
STRT-251-TK1 2017 Ford Truck, 1-ton w/ 47' aerial 15 $116,191 $149,100
T-448-TK1 _2024 Ford AA 15 $98,567 $105,000
STRT-707-TK1 2024 Ford Ford F600 w/ flat dump 15 $77,026 $84,000
STRT-835-TK1 2004 Isuzu Truck, 1-ton w/ flat dump 15 Spare Equipment
STRT-890-TK1 2014 Dodge Truck, 1-ton w/ 47' aerial 15 $64,179 $110,300
STRT-966-TK1 2023 Ford Ford F550 w/ flat dump 15 $73,634 $84,000
STRT-972-HTK 1997 Mack Truck, tandem -axle w/ dump 12 $50,200 $77,200
STRT-574-HTK 2011 Freightliner Truck, tandem-axlew/dump 20 $121,790 $128,100
STRT-218-HTK 2024 Mack Truck, single -axle w/dump 20 $270,782 $296,100
STRT-441-HTK 2005 Ford Truck, single -axle w/hooklift 20 Spare Equipment
STRT-781-HTK 2005 Ford Truck, single axle w/ hooklift 20 $56,338 $240,000 120,000
T-785-HTK 2025 Western Star Truck, single -axle w/dump 20 $280,736 $296,100
STRT-812-HTK 2014 Mack Truck, single -axle w/ dump 20 $194,882 $296,100
STRT-894-HTK 2007 Freightliner Truck, single -axle w/dump 20 $128,977 $296,100
STRT-923-HTK 2017 Mack Truck, single -axle 20 $200,714 $296,100
STRT-116-HEQ 2016 SnoCrete Snow Blower, Loader -mount 20 $101,993 $193,200
STRT-149-LDR 2021 Case Wheel loader, 621G 20 $209,182 $231,000
STRT-805-LDR 2020 Case Wheel loader, 621G 20 $197,627 $231,000
STRT-750-LDR 2016 Case Wheel loader, 621F 20 $202,879 $231,000
STRT-805-LDR 2020 Case Wheel loader, 621G 20 $197,627 $231,000
STRT-592-UTL 2017 Bobcat Skidsteer Loader, A770 T4 15 $56,115 $65,100
STRT-312-TRC 2019 New Holland Tractor, 65 hp 15 $51,095 $57,800
FLEET INVENTORY
Annual Inflation
4.00%
4.00% 3.00% 3.00% 3.00%
GENERAL FUND
1.040
1.082 1.114 1.147 1.182
12/23/2025
New Purchase
Inflation Factor
Backlog Replacement
1.050
To be Disposed
Estimated *
5-Year CIP
Target
Acquisition
Replace 2025
Vehicle ID Year
Make
Model
Life
Cost
Cost Backlog
2026
2027 2028 2029 2030
2026
John Deere
Tractor, 333 P Tier (50% Stormwater)
15
$47,000
$57,800
47,000
STRT-866-GND 2019
Landpride
Mower, 14'towed, pto-driven
15
$11,200
$18,400
-
STRT-074-HEQ 2005
Asphalt Zipper
Asphalt milling machine, w/ trailer
20
$45,988
$69,300
STRT-113-UTL 2014
Stepp Mfg
Asphalt premix heater w/ trailer
12
$46,261
$80,500
90,000
STRT-101-HEQ 2015 Caterpillar
Roller, vibratory, CB32B
12 $47,760
$68,300
STRT-906-UTL 2010 Dynapac
Pneumatic roller, CP142
20 $26,950
$31,500
T-563-UTL 2023 Brush Bandit
Brush Chipper
F 7 $93,125
$98,700
STREETS - Total
$3,300,934
$4,487,000
AIRP-055-TRC 2012 New Holland
Tractor, bi-directional
15 $73,872
$95,000
AIRP-XXX-TRC
2015
Snow Removal Equipment
10
$73,872
$47,700
AIRP-871-CAR
2017
Chevrolet
Caprice -courtesy car
$51,541
$66,200
AIRPORT -Total
$199,285
CEMT-409-TRC
2016
John Deere
Tractor/loader/backhoe, 3CX-Compact
15
$72,730
$92,600
CEMT-898-GND
2020
Grasshopper
Mower, 42" front -deck
9
$11,524
$14,000
CEMT-206-GND
2021
Grasshopper
Mower 42" front -deck
9
$10 000
$14 000
$0 $155,200 $120,000 $90,000 $0 $89,000
400,000
$0 $0 $0 $0 $0 $400,000
16,000 -
- 17 000
STRT-837-TK1 2004 Isuzu Truck, 1-ton w/ flat dump 15
Do
not Replace
-
2030 New Ride -on sprayer 15
N/A
$20,000
-
20,000
CEMT-412-SKD 2011 Bobcat Toolcat 5600 15
$40,060
$73,500
-
67,500
-
CEMETERY - Total 71
$134,314
$214,100
$0
$67,500
$0
$0
$16,000
$37,000
GRAND TOTAL
$7,393,798
$11,488,604
$65,000
$1,122,072
$1,358,841
$343,000
$286,000
$814,000
Light Fleet Total
$3,308,626
$4,625,700
$65,000
$453,250
$414,000
$343,000
$286,000
$414,000
Heavy Fleet Total
$4,085,172
$6,862,904
$0
$668,822
$944,841
$0
$0
$400,000
less other funding for fire ladder truck
$0
-$650,000
-$800,000
$0
$0
$0
less other funding for airport snow equipment
$0
$0
$0
$0
$0
-$380,000
Net Heavy Fleet Total
$0
$18,822
$144,841
$0
$0
$20,000
ADJUSTED TOTAL FLEET COST
$65,000
$472,072
$558,841
$343,000
$286,000
$434,000
Beginning Cash Balance
350,000
377,928
319,087
476,087
690,087
Annual Totals
-$65,000
-$472,072
-$558,841
-$343,000
-$286,000
-$434,000
Funding
$475,000
$500,000
$500,000
$500,000
$500,000
$500,000
Ending Cash Balance $350,000 $377,928 $319,087 $476,087 $690,087 $756,087
5-yr CIP 10-yr CIP 20-yr CIP
$1,910,250 $4,930,250 $11,040,250
$1,188,822 $2,947,822 $7,881,822
$3,099,072 $7,878,072 $18,922,072
Light Fleet 88 $382,050 $493,025 $552,013
Heavy Fleet 22 $237,764 $294,782 $394,091
Total 0 619,814 787,807 946,104
(62,000) (78,800) (94,600)
557,814 709,007 851,504
500,000 500,000 500,000
(57,814) (209,007) (351,504)
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Establishment of Masonic West River Campground Host Program
Agenda Item:
Department: PRCE
LICENSE SECTION
Meeting Date: 12/23/2025
Application Complete N/A
Contact: Lynn Neumann
Agenda Item Type:
Presenter: Lynn Neumann
Reviewed by Staff
New Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Please find attached the memo regarding the Masonic West River Campground Host Program.
This program has received approval from the PRCE Advisory Board and is being recommended
for City Council approval.
Staff recommends that the City Council establish a Campground Host Program for the Masonic
West River Campground, to take effect with the 2026 camping season.
Lynn Neumann will be present at the City Council Meeting to address any questions.
BOARD ACTION REQUESTED:
Approve the establishment of a Campground Host Program at the Masonic West River Campground, with staff
directed to develop program guidelines and initiate recruitment before the start of the 2026 camping season.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: Yes 0
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source:
Remaining Cost: $ 0.00 Funding Source: N/A
�..� HUTCHINSON
saw PARKS I RECREATION . COMMUNITY E❑
Date: December 23, 2025
To: Mayor and Members of the Hutchinson City Council
From: Lynn Neumann, Parks, Recreation, and Community Education Director
Sara Witte, Parks Manager
Subject: Establishment of a Campground Host at the Masonic West River Campground
Background
The City's municipal campground continues to see steady use by residents and visitors. With this
increase in activity, staff have identified challenges in ensuring consistent service, monitoring rule
compliance, and addressing camper concerns, particularly during evenings and weekends when regular
Parks Staff are not present on -site.
Many municipal and state -operated campgrounds utilize campground hosts to help manage these
operational challenges. Hosts serve as an on -site resource for campers, assisting with check -ins,
monitoring sites, and providing a point of contact for both guests and staff.
Proposal
PRCE Staff recommends establishing a Campground Host beginning with the upcoming 2026 camping
season. Under this program:
• A host (or host couple) would be recruited on a seasonal basis (typically at approximately the
end of April through the end of October).
• In exchange for services, the host would be provided with a complimentary campsite with full
utility hookups. We are recommending site number one at the campground for the host.
The campground host will receive a seasonal employee hourly wage along with their site. We
are in the process of developing a job description based on the anticipated job responsibilities,
we will continue to update as we implement the program. They will be allotted 10 to 15 hours of
work per week, with a maximum limit of 20 hours per week. This arrangement allows the
campground host to fulfill the responsibilities outlined in the job description and provide any
necessary support to PRCE staff throughout the season.
• We recommend paying the campground host approximately $21.00 per hour based on a market
analysis of similar local positions and campground operations. This would align with the
approved seasonal job pay scale as a Level D, with flexibility to work within the seasonal grid
based on experience and job expectations.
• The host's responsibilities would include:
o Greeting and assisting campers upon arrival.
o Supporting check -in and fee compliance.
o Monitoring adherence to campground rules and policies.
o Serving as an on -site point of contact for questions or concerns.
o Reporting maintenance and safety issues and concerns to Full-time Parks Staff and
Emergency Services.
Financial Impact
The financial impact of this program is minimal. The city would forego revenue from one seasonal
campsite, but the value provided through improved oversight, fee compliance, reduced unauthorized
use, and enhanced visitor experience is expected to outweigh this cost. Utilities for the host site are
already included within the campground's operational budget.
For the 2026 season, there is an opportunity for 171 rental days at the sites, with a rental rate of $45.00
per night for full hook-up sites. If Site One were to be rented out every night throughout the season, it
would generate a total of $7,695.00. However, historically, it has only been occupied about 50% of the
time, leading to an approximate revenue of $3,847.50. In contrast, other full hook-up sites typically
command higher rental rates. While this adjustment may result in a decrease in revenue, the
advantages of having a campground host significantly outweigh this decline. Additionally, rental rates
for all sites —including full hook-ups, electric -only sites, and tent sites —will see an increase of $5.00 for
the upcoming 2026 season. This modest adjustment is anticipated to enhance the generation of overall
revenue, given the new fee changes.
We recommend that the campground host be compensated at a rate of approximately $21.00 per hour
for their seasonal employment. The actual number of hours worked will be based on the campground's
needs throughout the summer season, which spans 24 weeks. Assuming the maximum potential of 15
hours per week, this would result in a total of 360 hours worked over the season. At the proposed rate,
this amounts to a total of $7,560.00 in seasonal wages. This increase will decrease the call -in rate of full-
time parks maintenance employees, which has consistently impacted our budget due to issues related
to the campground.
Recommendation
Staff recommend that the City Council approve the establishment of a Campground Host Program for
the Masonic West River Campground, effective with the 2026 camping season.
Requested Action
Motion to approve the establishment of a Campground Host Program at the Masonic West River
Campground, with staff directed to develop program guidelines and initiate recruitment before the start
of the next camping season.
Thank you for your time and dedication to improving our campground and community.
Sincerely,
Lynn Neumann
PRCE Director
320.234.5637
Ineumann@hutchinsommn.gov
Sara Witte
Parks Manager
320.234.4228
switte@hutchinsonmn.gov
RA
HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
November 2025 Financial and Investment Reports
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/23/2025
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 November Financial Reports for
the general fund and
enterprise funds. Also attached is the November 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 NOVEMBER 30, 2025
2025
2024
2025 ACTUALS
2025
AVAILABLE
% BDGT
2024 YTD
2024
% BDGT
NOVEMBER
YTD
BUDGET
BALANCE
USED
ACTUAL
BUDGET
USED
General Fund
Taxes
-
6,777,122
6,741,034
(36,088)
100.5
6,352,060
6,370,436
99.7
Other Taxes
24,754
240,892
320,000
79,108
75.3
245,121
330,000
74.3
Licenses & Permits
16,482
567,330
415,725
(151,605)
136.5
431,753
392,100
110.1
Intergovernmental Revenue
4,695
2,201,831
2,166,525
(35,306)
101.6
2,096,490
2,028,194
103.4
Charges for Services
162,632
2,031,073
2,816,417
785,344
72.1
2,003,272
2,547,142
78.6
Miscellaneous Revenues
19,905
386,756
382,400
(4,356)
101.1
395,891
353,900
111.9
Transfers -In
-
1,942,628
2,812,628
870,000
69.1
1,942,628
2,812,628
69.1
Fines & Forfeitures
1,912
38,149
55,000
16,851
69.4
42,941
55,000
78.1
TOTAL REVENUES 230,380 14,185,781 15,709,729 1,523,948 90.3 13,510,156 14,889,400 90.7
Wages & Benefits
791,467 9,524,687 10,542,600
1,017,913
90.3
9,031,142
10,050,414
89.9
Supplies
102,516 1,003,157 1,218,850
215,693
82.3
1,019,267
1,072,833
95.0
Services & Charges
120,597 2,900,927 3,022,832
121,905
96.0
2,814,259
2,867,722
98.1
Miscellaneous Expenses
25,907 303,966 379,905
75,939
80.0
291,453
381,400
76.4
Transfers -Out
- 120,542 545,542
425,000
22.1
117,031
517,031
22.6
Capital Outlay
29,391
(29,391)
-
TOTAL EXPENDITURES
1,040,487 13,882,670 15,709,729
1,827,059
88.4
13,273,152
14,889,400
89.1
NET REVENUE
(810,107) 303,111 -
(303,111)
237,004
-
Comments
Licenses & Permits
Building Permit revenue totals $452,579 through November compared to the budget of
$341,000. We are $113,500 higher
than last
years total revenue for building permits.
Services & Charges
Contracted Repair & Maintenance is running higher this year due to critical repairs to the refrigeration system at the Civic Arena
in
addition to repairs to the Waterpark pool.
General Fund Expense by 2025 2024
Department: 2025 YTD 2025 AVAILABLE % BDGT 2024 YTD 2024 % BDGT
NOVEMBER ACTUAL BUDGET BALANCE USED ACTUAL BUDGET USED
Mayor & City Council
4,592
35,293
47,488
12,195
74.3
35,608
47,477
75.0
City Administrator
40,316
477,630
544,862
67,232
87.7
471,454
519,041
90.8
Elections
-
-
-
-
-
42,357
29,850
141.9
Finance Department
28,171
405,059
448,831
43,772
90.2
408,301
427,823
95.4
Motor Vehicle
33,243
378,068
398,892
20,824
94.8
317,420
338,131
93.9
Assessing
-
-
-
-
-
61,152
61,499
99.4
Legal
25,971
294,825
348,219
53,394
84.7
285,252
329,055
86.7
Planning
15,585
170,635
187,488
16,853
91.0
161,616
181,040
89.3
Information Services
46,256
584,420
723,131
138,711
80.8
513,122
619,744
82.8
City Hall Building
16,265
179,599
213,097
33,498
84.3
185,142
202,295
91.5
Police Department
309,353
3,953,398
4,405,365
451,967
89.7
3,697,907
4,210,713
87.8
Emergency Management
152
11,239
13,500
2,261
83.3
18,825
13,500
139.4
Safety Committee
-
11,855
14,335
2,480
82.7
11,696
13,950
83.8
Fire Department
79,131
479,951
556,153
76,202
86.3
387,521
447,485
86.6
Protective Inspections
30,515
373,284
414,616
41,332
90.0
378,239
397,864
95.1
Engineering
41,263
547,894
547,217
(677)
100.1
417,078
479,881
86.9
Streets & Alleys
87,023
1,636,134
1,717,314
81,180
95.3
1,626,806
1,777,633
91.5
Park/Recreation Administration
19,548
263,922
299,036
35,114
88.3
282,829
280,458
100.8
Recreation
15,117
212,122
237,115
24,993
89.5
180,832
225,861
80.1
Senior Citizen Center
4,158
75,898
83,426
7,528
91.0
73,482
79,564
92.4
Civic Arena
39,228
435,869
445,718
9,849
97.8
363,809
413,137
88.1
Park Department
77,005
1,103,616
1,230,328
126,712
89.7
1,126,603
1,187,993
94.8
Recreation Building
34,046
287,234
324,132
36,898
88.6
242,035
280,335
86.3
Events Center
11,415
137,119
158,993
21,874
86.2
139,957
151,082
92.6
Evergreen Building
2,767
23,905
36,080
12,175
66.3
28,995
35,080
82.7
Library
2,812
251,146
257,808
6,662
97.4
236,017
247,865
95.2
Waterpark
7,920
438,609
473,834
35,225
92.6
480,372
467,082
102.8
Cemetery
18,521
150,094
157,200
7,106
95.5
145,214
153,077
94.9
Airport
28,010
240,497
248,888
8,391
96.6
259,194
129,260
200.5
Unallocated General Expense
22,103
723,356
1,176,663
453,307
61.5
694,318
1,141,625
60.8
TOTAL EXPENDITURES
1,040,487
13,882,670
15,709,729
1,827,059
88.4
13,273,152
14,889,400
89.1
REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON
PERIOD ENDING NOVEMBER 30, 2025
2025
2024
2025 ACTUALS
2025
AVAILABLE
% BDGT
2024 YTD
2024
% BDGT
NOVEMBER
YTD
BUDGET
BALANCE
USED
ACTUAL
BUDGET
USED
Water Fund
Sales
112,905
1,325,660
1,550,000
224,340
85.5
1,312,438
1,675,000
78.4
Sales - Other
74,924
996,543
1,051,000
54,457
94.8
927,243
1,006,000
92.2
Local Sales Tax
85,205
711,541
990,000
278,459
71.9
841,664
1,057,000
79.6
Charges for Services
2,724
99,882
100,000
118
99.9
98,098
88,668
110.6
Miscellaneous Revenues
13,661
203,134
162,500
(40,634)
125.0
154,522
114,500
135.0
TOTAL REVENUES 289,419 3,336,760 3,853,500 516,740 86.6 3,333,964 3,941,168 84.6
Wages & Benefits
48,887
577,893
702,663
124,770
82.2
590,867
631,441
93.6
Supplies
15,498
163,243
253,900
90,657
64.3
798,277
244,225
326.9
Services & Charges
23,345
538,914
556,490
17,576
96.8
522,750
599,400
87.2
Miscellaneous Expenses
454
14,071
15,500
1,429
90.8
11,634
13,500
86.2
Transfers -Out
-
-
90,000
90,000
-
-
90,000
-
CapitalOutlay
91,052
1,388,812
1,297,760
6.6
565,861
982,310
57.6
Depreciation Expense
-
1,120,000
1,120,000
-
-
1,120,000
-
Debt Service
1,150,345
1,150,228
(117)
100.0
1,366,549
1,366,550
100.0
TOTAL EXPENDITURES
88,184
2,535,518
5,277,593
2,742,075
48.0
3,855,939
5,047,426
76.4
NET of REVENUES & EXPENDITURES
201,235
801,242
(1,424,093)
(2,225,335)
(521,975)
(1,106,258)
Year to Date Water Sales
Comments
2025
2024
Change
Water Sales Revenue:
Residential
865,666
846,192
2.3%
Commercial
267,106
262,681
1.7%
Industrial
192,888
203,565
-5.2%
Water Sales
1,325,660
1,312,438
1.0%
Base Charge
763,676
760,505
0.4%
Water Connection Charge
120,199
55,396
117.0%
Other
112,668
111,342
1.2%
Other Sales
996,543
927,243
7.5%
Water Service Repair Program:
User revenue ($1/meter/month)
56,478
56,183
Repair Expenditures
(38,215)
(36,337)
Net Revenue (Loss)
18,264
19,846
Wastewater Fund
Sales
234,074
2,672,619
2,810,000
137,381
95.1
2,680,300
2,875,000
93.2
Sales - Other
89,632
1,107,750
1,086,800
(20,950)
101.9
1,017,978
1,031,500
98.7
Local Sales Tax
85,205
711,541
990,000
278,459
71.9
648,106
815,000
79.5
Licenses & Permits
-
5,600
6,000
400
93.3
5,600
6,000
93.3
Charges for Services
640
6,208
5,000
(1,208)
124.2
11,593
7,500
154.6
Miscellaneous Revenues
23,492
253,583
226,000
(27,583)
112.2
648,254
176,000
368.3
TOTAL REVENUES
433,044
4,757,301
5,123,800
366,499
92.8
5,011,832
4,911,000
102.1
Wages & Benefits
66,683
788,257
990,321
202,064
79.6
738,418
892,971
82.7
Supplies
18,806
182,121
289,400
107,279
62.9
226,159
297,600
76.0
Services & Charges
37,175
786,159
895,390
109,231
87.8
1,049,333
840,650
124.8
Miscellaneous Expenses
-
26,873
33,000
6,127
81.4
23,668
36,000
65.7
Transfers -Out
-
-
110,000
110,000
-
-
110,000
-
CapitalOutlay
151,051
1,188,398
3,721,629
2,533,231
31.9
936,280
2,410,249
38.8
Depreciation Expense
-
-
1,200,000
1,200,000
-
-
1,200,000
-
Debt Service
-
1,614,227
1,614,347
120
100.0
1,609,073
1,609,355
100.0
TOTAL EXPENDITURES
273,716
4,586,036
8,854,087
4,268,051
51.8
4,582,931
7,396,825
62.0
NET of REVENUES & EXPENDITURES
159,328
171,265
(3,730,287)
(3,901,552)
428,900
(2,485,825)
Year to Date Wastewater Sales
Comments
2025
2024
Change
Wastewater Sales Revenue:
Residential
1,499,479
1,489,222
0.7%
Commercial
480,023
472,615
1.6%
Industrial - Flow
452,356
399,882
13.1%
Industrial - Violation Surcharges
240,761
318,582
-24.4%
Sewer Sales
2,672,619
2,680,300
-0.3%
Base Charge
833,468
829,340
0.5%
Sewer Connection Charge
152,485
70,104
117.5%
Other
121,797
118,533
2.8%
Other Sales
1,107,750
1,017,978
8.8%
Sewer Service Repair Program:
User revenue ($1/meter/month)
56,334
56,085
Repair Expenditures
(72,244)
(154,214)
Net Revenue (Loss)
(15,910)
(98,129)
REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON
PERIOD ENDING NOVEMBER 30, 2025
2025
2024
2025 ACTUALS
2025
AVAILABLE
% BDGT
2024 YTD
2024
% BDGT
NOVEMBER
YTD
BUDGET
BALANCE
USED
ACTUAL
BUDGET
USED
Liquor Fund
Sales
628,676
6,751,386
7,899,000
1,147,614
85.5
6,932,684
7,708,000
89.9
Miscellaneous Revenues
138
3,235
10,500
7,265
30.8
2,990
10,500
28.5
TOTAL REVENUES
628,814
6,754,622
7,909,500
1,154,878
85.4
6,935,674
7,718,500
89.9
Cost of Sales
458,527
5,003,220
5,983,000
979,780
83.6
5,179,762
5,852,000
88.5
Wages & Benefits
73,133
846,001
936,298
90,297
90.4
828,676
924,229
89.7
Supplies
1,140
24,601
25,500
899
96.5
26,152
25,500
102.6
Services & Charges
20,716
247,232
312,270
65,038
79.2
233,906
308,150
75.9
Miscellaneous Expenses
557
6,297
6,500
203
96.9
5,885
6,500
90.5
Transfers -Out
-
-
550,000
550,000
-
-
550,000
-
CapitalOutlay
44,727
45,000
273
99.4
82,075
100,000
82.1
Depreciation Expense
58,000
58,000
58,000
-
TOTAL EXPENDITURES
554,074
6,172,080
7,916,568
1,744,488
78.0
6,356,456
7,824,379
81.2
NET REVENUE
74,741
582,542
(7,068)
(589,610)
579,218
(105,879)
Year to Date Sales
November Sales
Comments
2025
2024
Change
2025
2024
Change
Liquor Sales Revenue:
Liquor
2,617,777
2,617,916
0.0%
251,100
254,908
-1.5%
Beer
2,950,396
3,145,622
-6.2%
245,251
267,225
-8.2%
Wine
813,727
859,083
-5.3%
100,251
107,560
-6.8%
THC Products
184,232
133,754
37.7%
16,025
14,816
8.2%
Other
185,254
176,309
5.1 %
16,048
15,363
4.5%
Total Sales
6,751,386
6,932,684
-2.6%
628,676
659,873
-4.7%
Gross Profit
$1,748,166
$1,752,922
$170,149
$177,367
Gross Margin on Sales
25.9%
25.3%
0.6%
27.1 %
26.9%
0.2%
Customer Count
217,807
222,656
-2.2%
19,427
20,343
-4.5%
Average Sale per Customer
$31.00
$31.14
-0.4%
$32.36
$32.44
-0.2%
Labor to Sales Ratio
12.5%
12.0%
0.6%
11.6%
16.0%
-4.4%
Capital Outlay
New flooring was installed
in the wine section along with
new wine racks.
Refuse Fund
Sales
124,576
1,350,662
1,461,000
110,338
92.4
1,266,984
1,352,000
93.7
Sales - Other
3,208
45,854
46,700
846
98.2
43,061
46,100
93.4
Intergovernmental Revenue
-
12,870
4,500
(8,370)
286.0
18,508
21,500
86.1
Miscellaneous Revenues
2,825
96,065
50,000
(46,065)
192.1
43,767
30,000
145.9
TOTAL REVENUES
130,608
1,505,450
1,562,200
56,750
96.4
1,372,320
1,449,600
94.7
Wages & Benefits
28,928
313,141
349,221
36,080
89.7
307,645
337,416
91.2
Supplies
4,132
40,769
45,000
4,231
90.6
42,860
60,750
70.6
Services & Charges
84,158
859,489
1,032,135
172,646
83.3
822,957
969,000
84.9
Miscellaneous Expenses
33
3,221
2,500
(721)
128.8
1,819
1,150
158.1
Transfers -Out
-
-
105,000
105,000
-
-
55,000
-
CapitalOutlay
35,000
35,000
789,252
817,500
96.5
Depreciation Expense
-
-
172,000
172,000
-
-
172,000
-
TOTAL EXPENDITURES 117,252
1,216,620
1,740,856
524,236
69.9
1,964,532
2,412,816
81.4
NET of REVENUES & EXPENDITURES 13,357
288,830
(178,656)
(467,486)
(592,212)
(963,216)
Comments
Net Revenue The Source Separated CASP project was finalized in 2024, resulting in significantly higher Capital Outlay compared to 2025. The
result is a positive Net Revenue this year versus a Net Loss last year.
REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON
PERIOD ENDING NOVEMBER 30, 2025
Comaost Fund
Sales
Charges for Services
Miscellaneous Revenues
TOTAL REVENUES
Cost of Sales
Inventory Cost Adjustment
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Transfers -Out
Capital Outlay
Depreciation Expense
Debt Service
TOTAL EXPENDITURES
NET of REVENUES & EXPENDITURES
2025 ACTUALS
NOVEMBER YTD
2025
BUDGET
AVAILABLE
BALANCE
2025
% BDGT
USED
2024 YTD
ACTUAL
2024
BUDGET
2024
% BDGT
USED
90,083
2,401,977
2,372,500
(29,477)
101.2
2,517,711
2,620,300
96.1
-
25,262
107,000
81,738
23.6
44,137
95,500
46.2
8,174
94,128
72,000
(22,128)
130.7
69,691
52,000
134.0
98,257
2,521,367
2,551,500
30,133
98.8
2,631,539
2,767,800
95.1
54,519
1,521,686
1,591,200
69,514
95.6
1,695,386
1,759,400
96.4
(37,724)
(645,505)
(703,250)
(57,745)
91.8
(556,680)
(703,528)
79.1
64,219
725,851
897,840
171,989
80.8
710,769
888,535
80.0
10,923
118,012
126,850
8,838
93.0
103,804
149,500
69.4
18,670
207,763
308,390
100,627
67.4
225,549
287,500
78.5
640
11,969
13,500
1,531
88.7
10,223
13,500
75.7
-
-
120,000
120,000
-
-
120,000
-
208,476
305,000
96,524
68.4
92,308
197,000
46.9
-
290,000
290,000
-
-
290,000
-
73,808
73,808
(0)
100.0
73,808
73,808
100.0
111,248
2,222,061
3,023,338
801,277
73.5
2,355,166
3,075,715
76.6
(12,991)
299,306
(471,838)
(771,144)
276,373
(307,915)
Year to Date Sales
Comments
2025
2024
Change
Compost Sales
Bagged
1,999,028
1,942,153
2.9%
Bulk
234,041
406,372
-42.4%
Other (Freight)
168,908
169,187
-0.2%
Total Sales
2,401,977
2,517,711
-4.6%
Gross Profit
880,290
822,325
Gross Margin
36.6%
32.7%
Capital Outlay Capital Outlay for 2025 includes $112,090 to enclose Creekside's blending building.
Storm Water Utility
Sales
100,012
1,087,274
1,185,000
97,726
91.8
1,010,591
1,097,000
92.1
Sales - Other
(4)
5,494
7,000
1,506
78.5
6,119
3,500
174.8
Intergovernmental Revenue
-
81,200
-
(81,200)
-
59,120
-
-
Licenses & Permits
485
7,320
6,000
(1,320)
122.0
4,405
5,500
80.1
Miscellaneous Revenues
4,249
38,348
26,800
(11,548)
143.1
37,987
26,300
144.4
Transfer In
-
-
50,000
50,000
-
-
-
-
TOTAL REVENUES
104,742
1,219,636
1,274,800
55,164
95.7
1,118,221
1,132,300
98.8
Wages & Benefits
17,203
209,125
313,368
104,243
66.7
260,664
311,298
83.7
Supplies
4,274
33,071
48,350
15,279
68.4
35,740
51,350
69.6
Services & Charges
3,641
226,654
256,020
29,366
88.5
159,444
223,375
71.4
Miscellaneous Expenses
-
10,303
6,000
(4,303)
171.7
4,725
6,000
78.7
Capital Outlay
366,826
558,818
191,992
65.6
126,788
467,145
27.1
Depreciation Expense
-
255,000
255,000
-
-
255,000
-
Debt Service
-
186,205
186,180
(25)
100.0
187,505
187,480
100.0
TOTAL EXPENDITURES
25,117
1,032,184
1,623,736
591,552
63.6
774,866
1,501,648
51.6
NET of REVENUES & EXPENDITURES
79,625
187,452
(348,936)
(536,388)
343,355
(369,348)
Comments
Capital Outlay This category includes the $220,000 land acquisition for a future storm water pond that will serve the Michigan Street area. A new
leaf vaccum was purchased for $137,330. The Refuse fund will contribute $50,000 towards the leaf vacuum at year-end.
City of Hutchinson - Investment Report
For the Month Ended November 30, 2025
Trade
Fixed or
Par
Purchase
Premium
Current
Unrealized
Annual
Date
Maturity
Coupon
Callable
Value
Amount
-Discount
Value
Gain/ -Loss
Earnings
CERTIFICATES OF DEPOSIT:
Toyota Financial Sgs Bk
07/14/2021
07/22/2026
0.950%
Fixed
$245,000
$245,000
$0
$240,512
-$4,488
$2,328
Vantage West Credit Union
09/05/2024
09/14/2026
4.100%
Fixed
249,000
249,000
0
249,632
632
10,209
Synchrony Bank
09/01/2022
09/09/2027
3.500%
Fixed
245,000
245,000
0
244,018
-982
8,575
Discover Bank DE
11/16/2022
11/30/2027
4.900%
Fixed
242,000
242,000
0
247,339
5,339
11,858
Morgan Stanley Bank NA
03/10/2023
03/16/2028
4.800%
Fixed
244,000
244,000
0
249,697
5,697
11,712
Affinity Bank
03/15/2023
03/17/2028
4.900%
Fixed
195,000
195,000
0
200,056
5,056
9,555
Customers Bank
06/07/2023
06/14/2028
4.500%
Fixed
244,000
244,000
0
248,453
4,453
10,980
Thread Bank Rogers TN
06/07/2023
06/16/2028
4.400%
Fixed
245,000
245,000
0
253,528
8,528
10,780
Univest Bank & Trust Co
06/02/2023
06/21/2028
4.500%
Fixed
245,000
245,000
0
249,633
4,633
11,025
CIBC Bk USA
06/16/2023
06/30/2028
4.450%
Fixed
244,000
244,000
0
252,108
8,108
10,858
Providence Bk Rocky Mt NC
08/03/2023
08/21/2028
4.400%
Fixed
249,000
249,000
0
253,343
4,343
10,956
United Roosevelt Savings
09/06/2023
09/12/2028
4.500%
Fixed
249,000
249,000
0
257,551
8,551
11,205
Central Fe S&L/Cicero IL
09/06/2023
09/14/2028
4.500%
Fixed
249,000
249,000
0
254,095
5,095
11,205
Community Bk & Tr Waco TX
11/01/2023
11/10/2028
5.050%
Fixed
243,000
243,000
0
251,855
8,855
12,272
Liberty First Credit Union
01/23/2024
01/30/2029
4.150%
Fixed
249,000
249,000
0
252,028
3,028
10,334
Morgan Stanley Private Bank
02/28/2024
03/06/2029
4.350%
Fixed
244,000
244,000
0
248,394
4,394
10,614
Carter Bank &Trust
03/08/2024
03/20/2029
4.300%
Fixed
245,000
245,000
0
249,128
4,128
10,535
Mizrahi Tefahot Bank/LA
03/26/2024
03/07/2030
4.500%
Fixed
244,000
244,000
0
250,388
6,388
10,980
State Bank of India Chicago IL
06/13/2025
06/21/2030
4.350%
Fixed
244,000
244,000
0
249,151
5,151
10,614
CBC Federal Credit Union
05/03/2024
05/14/2031
4.650%
Fixed
249,000
249,000
0
259,199
10,199
11,579
Celtic Bank
12/11/2024
12/20/2032
4.150%
Fixed
249,000
249,000
0
254,702
5,702
10,334
Total CDs $5,112,000 $5,112,000 $0 $5,214,810 $102,810 $218,508
MUNICIPAL BONDS:
Jobs Ohio Beverage Sys Stwd
04/27/2022
01/01/2026
2.034%
Fixed
$310,000
$298,815
-$11,185
$309,492
$10,676
$6,305
Oklahoma City OK Econ Dev Trust
02/08/2022
03/01/2026
1.118%
Fixed
300,000
292,833
-7,167
297,945
5,112
3,354
New York St Urban Dev Dorp
08/26/2022
03/15/2026
3.170%
Fixed
190,000
187,925
-2,075
189,552
1,626
6,023
Anchor Bay MI School Dist
07/01/2020
05/01/2026
1.250%
Fixed
500,000
503,630
3,630
495,020
-8,610
6,250
Phoenix Az Civic Impt Corp
12/10/2021
07/01/2026
1.157%
Fixed
135,000
134,150
-851
132,943
-1,207
1,562
San Juan CA Unif Sch Dist
11/09/2021
08/01/2026
1.201%
Fixed
140,000
140,000
0
137,409
-2,591
1,681
Phoenix Az Civic Impt Corp
03/30/2022
07/01/2027
1.257%
Fixed
175,000
161,088
-13,913
168,404
7,317
2,200
Indiana St Fin Authority Rev
01/27/2023
07/15/2027
4.109%
Fixed
1,000,000
1,000,000
0
1,005,930
5,930
41,090
NY Personal Income Tax
12/09/2022
09/15/2027
5.051%
Fixed
300,000
308,277
8,277
306,105
-2,172
15,153
Pima County AZ Revenue
11/09/2022
12/01/2027
5.382%
Fixed
1,000,000
1,014,580
14,580
1,029,880
15,300
53,820
Wisconsin St Gen Fund Rev
02/21/2023
05/01/2028
4.330%
Fixed
500,000
497,905
-2,095
507,200
9,295
21,650
Pima County AZ Revenue
11/22/2023
12/01/2028
5.961%
Fixed
175,000
183,171
8,171
185,336
2,165
10,432
New York NY City Transitional
07/05/2023
02/01/2029
4.750%
Callable
385,000
385,920
920
392,349
6,429
18,288
New York NY City Transitional
02/14/2024
02/01/2029
4.430%
Callable
375,000
375,000
0
385,601
10,601
16,613
Wisconsin St Gen Fund Rev
03/13/2024
05/01/2029
4.346%
Fixed
500,000
497,905
-2,095
509,510
11,605
21,730
Albertville AL
01/19/2024
06/01/2029
4.900%
Fixed
235,000
241,103
6,103
242,541
1,438
11,515
Middlesex County NJ
09/13/2023
08/15/2029
4.603%
Fixed
250,000
248,115
-1,885
256,543
8,428
11,508
California St
10/24/2023
10/01/2029
5.100%
Fixed
200,000
199,788
-212
209,754
9,966
10,200
New York NY City Transitional
12/05/2023
11/01/2029
5.050%
Callable
300,000
308,451
8,451
312,708
4,257
15,150
Palm Beach Cnty Fla
12/15/2023
12/01/2029
4.150%
Fixed
265,000
263,614
-1,386
268,797
5,183
10,998
Palm Beach Cnty Fla
10/25/2024
12/01/2029
4.150%
Fixed
500,000
499,300
-700
507,165
7,865
20,750
Andalusia AL
03/20/2025
05/01/2030
4.250%
Fixed
140,000
140,000
0
141,659
1,659
5,950
Connecticut State
04/12/2024
05/15/2030
4.657%
Fixed
140,000
140,000
0
144,686
4,686
6,520
Las Cruces NM Gross Recpts Tax
02/20/2025
06/01/2030
4.850%
Fixed
150,000
152,775
2,775
155,939
3,164
7,275
Palm Beach Cnty Fla
06/28/2024
06/01/2030
4.500%
Fixed
740,000
740,000
0
763,280
23,280
33,300
Apache Junction AZ
08/15/2024
07/01/2030
4.281%
Fixed
825,000
830,973
5,973
838,357
7,384
35,318
Virginia Sts Pub Bldg
05/24/2024
08/01/2030
4.830%
Fixed
340,000
343,196
3,196
355,739
12,543
16,422
Corpus Christi TX ISD
12/30/2024
08/15/2030
4.450%
Fixed
500,000
499,485
-515
500,170
685
22,250
New York City Transitional
02/07/2025
02/01/2031
4.560%
Fixed
500,000
500,000
0
511,090
11,090
22,800
Las Cruces NM Gross Recpts Tax
02/20/2025
06/01/2030
4.880%
Fixed
145,000
147,577
2,577
151,319
3,742
7,076
Portland OR Revenue
01/03/2025
06/01/2031
4.450%
Fixed
470,000
468,684
-1,316
481,637
12,953
20,915
Santa Clara Valley CA
07/11/2024
06/01/2031
4.400%
Fixed
300,000
299,103
-897
307,230
8,127
13,200
San Francisco City & Cty CA
09/12/2024
09/01/2031
3.918%
Fixed
460,000
460,000
0
447,985
-12,015
18,023
San Diego CA Public Fac
08/22/2024
10/15/2031
3.980%
Callable
500,000
499,360
-640
504,330
4,970
19,900
North Dakota Public Fin Authority
09/26/2025
12/01/2031
4.200%
Fixed
390,000
396,985
6,985
394,629
-2,356
16,380
Oregon St Dept of Admin Svcs
02/05/2025
04/01/2032
4.353%
Fixed
170,000
169,505
-495
172,511
3,006
7,400
Spotsylvania County VA Econ Dev
09/05/2024
06/01/2032
4.200%
Fixed
295,000
299,838
4,838
295,755
-4,083
12,390
Waterloo IA
01/16/2025
06/15/2032
4.160%
Fixed
395,000
398,622
3,622
409,414
10,791
16,432
Connecticut State
08/27/2024
06/15/2032
4.160%
Fixed
100,000
100,000
0
100,547
547
4,160
Connecticut State
07/01/2025
06/15/2032
4.160%
Fixed
405,000
405,000
0
407,215
2,215
16,848
Los Angeles CA
12/13/2024
09/01/2032
4.400%
Fixed
275,000
275,000
0
280,082
5,082
12,100
Texas State Fin Corp
10/24/2025
10/01/2032
4.140%
Fixed
275,000
281,141
6,141
275,410
-5,731
11,385
California St
11/05/2025
11/01/2032
4.350%
Fixed
475,000
482,724
7,724
479,997
-2,727
20,663
Saint Clair Madision Monroe
09/05/2025
12/01/2032
4.630%
Fixed
250,000
258,975
8,975
254,783
-4,193
11,575
Total Municipal Bonds $15,975,000 $16,030,512 $55,512 $16,223,945 $193,434 $664,554
November 30, 2025
Trade Fixed or Par Purchase Premium Current Unrealized Annual
Date Maturitv Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnina
FEDERAL BONDS:
Federal Home Loan Bank
Total Federal Bonds
MONEY MARKET FUNDS:
Money Market - Citizens Bank
Money Market - Oppenheimer
Total Money Market Funds
GRAND TOTALS
09/28/2021 10/26/2026 1.180% Callable $500,000 $500,000 $0 $488,760-$11,240 S5.900
$500,000 $500,000 $0 $488,760-$11,240 $5,900
Current Rate: 3.290% N/A $14,441,486 $14,441,486 $0 $14,441,486 $0 $475,125
Current Rate: 4.117% N/A 326,806 326,806 0 326,806 0 13,455
$14,768,292 $14,768,292 $0 $14,768,292 $0 $488,580
$36,355,292 $36,410,803 $55,512 $36,695,806 $285,003 $1,377,542
CITY PORTFOLIO BY PRODUCT TYPE
CITY MATURITY SCHEDULE
Par Value Current
Average
Municipal Federal
Total
%of
Average
Total % of Total Value
Coupon
Year CD's
Bonds Bonds
Par Value
Total
Coupon
CDs $5,112,000 14.1% $5,214,810
4.3%
2026 $494,000
$1,575,000 $500,000
$2,569,000
11.9%
1.7%
Municipal Bonds $15,975,000 43.9% $16,223,945
4.2%
2027 $487,000
$2,475,000 $0
$2,962,000
13.7%
4.5%
Federal Bonds $500,000 1.4% $488,760
1.2%
2028 $2,407,000
$675,000 $0
$3,082,000
14.3%
4.6%
Subtotal $21,587,000 $21,927,515
4.1%
2029 $738,000
$3,010,000 $0
$3,748,000
17.4%
4.5%
Money Market $14,768,292 40.6% $14,768,292
2030 $488,000
$2,835,000 $0
$3,323,000
15.4%
4.5%
Total $36,355,292 100.0% $36,695,806
2031 $249,000
$2,765,000 $0
$3,014,000
14.0%
4.3%
Unrealized Gain / -Loss $285,003
2032 $249,000
$2,640,000 $0
$2,889,000
13.4%
4.3%
Totals $5,112,000
$15,975,000 $500,000
$21,587,000
100.0%
4.1%
Prior Year Unrealized Gain /-Loss-$195,379
Investment Gain / -Loss for 2025 $480,382
$4,000,000
$3,748,000
owl
$2,962,000 $3,082,000
$3,000,000 $2�569,000
n
$3,014,000
$2889000
ey Market
Municipal Bonds
(:40.6%�
43.9%
$2,000,000
1
$1,000,000
-
Federal Bonds
$0
1.4%
2026
2027 2028 2029
2030
2031
2032
FINANCIAL INDICES: One -Year Comparison
Treasury Yield Curve
11/30/2025 11/30/2024
Change
City's Average Coupon Rate 4.13% 3.83%
0.300%
5.00%
Average Yield to Maturity 3.85% 4.39•9
-0.54%
4.50%
(excluding Money Market funds)
4.00
Federal Lending Rate 4.00% 4.75%
-0.75%
3.50%
Prime Rate 7.00% 7.75%
-0.75%
3.00%
2.50%
Treasury Rates: 1-Year 3.61% 4.30%
-0.69%
2.00%
2-Year 3.47% 4.13%
-0.66%
3-Year 3.49% 4.10%
-0.61%
1.50 %
5-Year 3.59% 4.05%
-0.46%
1.00 %
10-Year 4.02% 4.18%
-0.16%
1-Year
2-Year 3-Year
5-Year
10-Year
20-Ye
20-Year 4.62% 4.45%
0.17%
+11/30/2025 t11/30/2024
Parks, Recreation & Community Education Advisory Board
Meeting Minutes
November 3, 2025
Members present were Liz Stearns, Margo Kaping, Kyle Wendling, Eric Thovson, Ann Lamecker, Chad
Czmowski and Josh Kamrath and Erin Knudtson. Staff present Lynn Neumann, Leslie Alberts and Sara
Witte.
Kyle Wendling called the meeting to order at 5:15 pm.
Margo Kaping moved to approve the October 6, 2025, meeting minutes. Josh Kamrath seconded the
motion. The minutes were approved.
Old Business
Parkland Dedication Fees
o Last updated in 1995
o Roughly $300,000 in the account — to be used for Parkland, Open Spaces and Trails
o Looking to the advisory board on how to move forward with the following:
o Fee structure: per unit or percentage of the land
o Take the fees out of the ordinance and use a fee schedule
o Lynn will bring back comparables
o Nothing renewable going into the fund at the moment
New Business
North Park Playground Replacement
o Current structure has been in place since 2000
o Scheduled to be replaced in spring/summer of 2026
o 50/50 share between the City of Hutchinson, PRCE and ISD423
o Saved $30,000 on discount of equipment
o New structure will offer more independent play
o Paying to have equipment installed: $18,000 for labor— budgeted into plan
o Installed by Midwest Playscapes
o Lynn will send out design — chose to stay with school colors
Open Skate Opportunities
o East rink vs West rink — open skating in East rink M/W/F: 11am-1pm and Sunday: 1-4pm
o Provides opportunities for the community and other entities
o Scheduling is as follows: 1)PRCE Programming 2)ISD 423 3) Associations 4) Community
o PRCE cancels open skating for hockey games/tournaments
o West rink doesn't offer a lot of seating for games/tournaments
o PRCE is looking into compromising open skate times
Northwoods Park Ice Rink
o PRCE logged user times/groups and has been a decrease in participation (closed about 4 years
ago)
o Received a neighborhood request to re -open the rink
o Suggested to flood the rink but limit staff by not opening warming house, restroom facilities
o Parks offered to clear the rink of snow, but wouldn't be a priority. As time allows.
o Neighborhood would need to shovel. Could provide signage reflecting this change. "Minimum
maintenance rink"
Board Member Items
• Shady Ridge Park: picnic table was not put out this summer. This was done as a request from
the neighborhood in the past. Will relay this information to just kindly "remind" Parks to drop
one off at this location.
• Senior Center: Intent to purchase expires December 31, 2025. Hospital gets first right of refusal.
Budgeted "as is" for 2026.
Adjournment
• Next meeting is December 1 - Location TBD
Erin Knutdson moved to adjourn, and Josh Kamrath seconded the motion. The meeting adjourned at
6:15pm.
Parks, Recreation & Community Education Advisory Board
Meeting Minutes
December 1, 2025
Members present were Liz Stearns, Margo Kaping, Eric Thovson, Ann Lamecker, Chad Czmowski, and
Steve Kropp. Staff present Lynn Neumann, Leslie Alberts.
Chad Czmowski called the meeting to order at 5:15 pm.
Liz Stearns moved to approve the November 3, 2025, meeting minutes. Ann Lamecker seconded the
motion. The minutes were approved.
Old Business
Library Square Fountain Update
o Previous contractor walked away from the project. Has been paid for all work completed to this
point.
o City working with a new contractor to get the fountain complete by end of winter.
o Celebration for re -opening of Library Square fountain and river fountain taking place in the
spring of 2026.
Roberts Park Lighting Project Update
o Electrician tested underground wiring and found it to be bad. Installer didn't initially bid
underground wiring work.
o SLA (Sports Lighting Authority) suggested the City get sealed quotes to replace underground
wiring.
o Sealed quotes will be opened December 11.
o No decision has been made to replace the wiring at this point.
New Business
MDE Community Education Report
o This report goes out every year to the state.
o Generic report identifying general program information, statement of assurance, programs
offered, facilities and highlights.
Pickleball at Recreation Center
o Email was sent to all users re-establishing rules and policies for open gym versus pickleball.
o Need to leave west side available during open gym since PRCE received grant through
Hutchinson Health sponsoring free youth open gym.
o No pickleball during indoor playground.
Campground Host Operations for 2026
o Currently working with HR to finalize job description.
o Host would occupy full hook up site #1 through entire camping season and events. This is the
least rented site and the most visible for campers.
o Duties would include: greet & check campers in, fee compliance, liaison to HPD, light cleaning
and restocking of the restrooms, and grounds.
o Potential to leave restrooms on west end of campground open 24/7 if host was present.
o Future consideration would be reopening kayak rentals along with selling firewood.
Meeting Schedule for 2026
o Will meet January 5, 2026.
o February meeting will get pushed to 2/9/26 due to scheduling conflicts.
Board Member Items
• Park Elementary Rink flooding: Parks will begin flooding this week with the cold weather.
Hoping to have up and running by Christmas break.
• Kiwanis Warming House: checking with Parks to see when this will be opening for the sledding
season.
• Open Skating: comments made it has been well attended with roughly 60-70 patrons over the
past couple weekends.
• Bluff St/Hwy 7 intersection — concrete shelf area: question asked about who maintains this
piece. Will check with Sara Witte in Parks. Asked to add flowers or shrubbery to "spruce it up."
• Hwy 7 sidewalk by Utilities: question asked about who maintains this or if anyone can spray for
weeds along this area. Will check with Parks.
• Park Elementary Playground: Question was asked if there was a way to make the ADA swing
wheelchair accessible. Material for Poured in Place is expensive. Currently use wood chips that
are ADA compliant. Any monies that need to be raised to complete this would need to be
fundraised, donated, etc.
• Emergency Response Notifications for early morning activities: Question was asked how are we
communicating with users that signed up for early morning lap swim in the event of school
closures. PRCE to follow up with Amy Scheele in Community Education.
Adjournment
• Next meeting is January 5, 2026 - Location TBD
Eric Thovson moved to adjourn, and Margo Kaping seconded the motion. The meeting adjourned at
6:18pm.
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, October 29, 2025
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Secretary Don Martinez; Commissioner Kathy Silvernale; Commissioner Tom
Lambert; GM Jeremy Carter; Attorney Marc Sebora:
Absent: Vice President Troy Pullis
Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez second by Commissioner Lambert to Approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Both divisions trending well. Electric
Division usage was up but customer revenue was down in large part due to the
credits from the power cost adjustment. Operating Expenses were down mostly due
to a $125k payment to the City a year ago for the School Road sewer project.
GM Carter noted in the Electric Division the credits given back to the customers and
how it relates to the rate stabilization fund. Also noted, is how the Power Cost
Adjustments will look ahead in 2026.
GM Carter reviewed the Cash Position and the Investment portfolio along with all
the project payments coming up and potential bonding that may be needed.
Motion by Commissioner Silvernale, second by Commissioner Martinez to Approve
the Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator— Matthew Jaunich —
i. Private development happening - Apartments downtown, Sherwin Williams
and living facility on Golf Course Road.
ii. Potentially 3 housing developments coming next year
b. Divisions
i. Dan Lang, Engineering Services Manager —
1. Hutch Substation update
ii. Dave Hunstad, Electric Transmission/Distribution Manager —Absent
iii. Mike Gabrielson, Production Manager —
1. Provided an update on the Annual Borescope of Unit 1 that was
completed. Two cracked blades were found. Working with GE to
help with options.
iv. Jared Martig, Financial Manager — Nothing to Report
v. Byron Bettenhausen, Natural Gas Manager —
1. Finishing up projects
2. MNOPS Audit was completed last week, waiting for final briefing
c. Human Resources — Angie Radke -
i. Continuing to work with Insurance Broker on PFML percentage rates along
with different Ancillary options
ii. Benefits right around the corner, finalizing percentage increases on Health
and Dental.
iii. Flu Shot Clinic
iv. Reminder that the Commissioners will need to set a date and time for the
General Manager annual review, which can be a separate date or in
conjunction with the December regular Commission meeting.
After discussion GM Carter and Commissioners agreed to have the review
at the regular Commission Meeting in December, that may be re -scheduled
to December 17, 2025.
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Finalizing insurance numbers
ii. Working on Cap X and budgets
iii. Update on New Ulm contract
6. Policies
a. Review Policies
i. Natural Gas Service Requirements & Changes
ii. Temporary Service — Natural Gas
iii. Natural Gas Meter Requirements & Placement
iv. Meter Testing — Natural Gas
v. Natural Gas Service Work
vi. Locating Customer's Underground Utilities — Natural Gas
No changes recommended at this time
7. Unfinished Business
8. New Business
a. Approve 2025 Audit Services with Conway Deuth & Schmiesing
Mr. Martig presented Approval of 2025 Audit Services with Conway Deuth and
2
Schmiesing. For fiscal year 2025, Audit Services have increased to $31,250. Mr.
Martig provided a 10-year history for review.
Motion by Commissioner Lambert, second by Commissioner Silvernale to
Approve 2025 Audit Services with Conway Deuth & Schmiesing. Motion carried
unanimously.
b. Approve Req#010415 — B-MN Data Centers Materials
GM Carter presented Approval of Req#010415 — B-MN Data Centers Materials.
HUC entered into a Power Purchase Agreement with B-MN Data Centers Inc on
September 24, 2025. As part of that agreement the customer agrees to pay HUC
within 30 business days after the delivery of the equipment and before the start of
construction. Wesco had the best pricing.
Motion by Commissioner Martinez, second by Commissioner Silvernale to
Approve Req#010415 — B-MN Data Centers Materials. Motion carried
unanimously.
c. Approve Setting a Special Budget Workshop Meeting
Ms. Radke presented Approval of Setting a Special Budget Workshop Meeting.
Based on Commissioner feedback that was received from the Commissioners,
Staff would like to set a Special Budget Workshop Meeting at 1:30pm on
November 26, 2025, before the regular scheduled Commission Meeting.
Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve
Setting a Special Budget Workshop meeting at 1:30pm on November 26, 2025.
Motion carried unanimously.
d. Approve Rescheduling the December 31, 2025, Regular Commission Meeting
if needed.
Ms. Radke presented Approval of Rescheduling the December 31, 2025, Regular
Commission Meeting to December 17, 2025. Based on the feedback that was
received from the Commissioners, Staff would like to reschedule the December
31, 2025, Regular Commission Meeting to December 17, 2025, at 3pm.
Motion by Commissioner Lambert, second by Commissioner Martinez to Approve
Rescheduling the December 31, 2025, Regular Commission Meeting to
December 17, 2025. Motion carried unanimously.
K3
e. Discussion and Approval on the Level of Carbon Free/Renewable Power
Supply Mix
GM Carter started the discussion on the level of carbon free/renewable power
supply mix along with providing some context between the old guidelines and now
the new guidelines. Each year HUC is required to notify Missouri River Energy
Services (MRES), HUC's wholesale supplier on the participation level for carbon
free/renewable energy for the upcoming year. The deadline is Nov 1, 2025.
MRES through the Bright Energy Choices program sets aside current carbon free
& renewable attributes from either currently owned assets, market purchases or
bilateral contracts for carbon free/renewable energy from other companies.
MRES maintains an inventory of Renewable Energy Credits (REC's) that are
used to meet State regulatory compliance or local municipal utility carbon
free/renewable energy goals.
GM Carter provided 7 options to discuss. Currently for the coming year of 2026,
HUC is starting off with 25% Carbon Free Energy before purchasing additional
REC's. This is a decrease of 9% from 2025 where HUC started with 35% Carbon
Free energy. The 9% reduction is from a reduction in nuclear REC's (7%) and a
reduction in Market purchases that can be claimed as renewable (2%).
GM Carter reviewed the option that was chosen for 2025 with 45% Renewable
REC's along with the impact of the 4 customers that want to be 100% renewable.
Conversations were held on the different options, HUC's portfolio and the
budgetary impact.
Motion by Commissioner Martinez, second by Commissioner Silvernale for Option
#1 to meet the minimum standards. Motion carried unanimously.
9. Adjourn
There being no further business, a motion by Commissioner Silvernale, second by
Commissioner Marinez to adjourn the meeting at 3:45pm. Motion carried
unanimously.
ATTEST: � � (C�4�001� �
a heney, Presi nt
4
Don Martinez, Secretary
MINUTES
Special Budget Meeting — Hutchinson Utilities Commission
Wednesday, November 26, 2025
Call to order — 2:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Troy Pullis; Secretary Don Martinez; Commissioner Kathy
Silvernale; GM Jeremy Carter
Absent: Commissioner Tom Lambert; Attorney Marc Sebora:
GM Carter thanked the Commissioners for coming and noted that these are preliminary
budget numbers and the Commissioners will have about 3 weeks to review before final
budget numbers need to be approved.
GM carter presented HUC's 2026 preliminary budget, which is the same format as
previous years. GM Carter highlighted the combined divisions, revenues are at $46.8M
with expenses at $46.6M with a Net Profit of $224K, which is a decrease in net profit over
last year. Electric Division shows an increase of $600K in the Power Cost Adjustment.
Sales for Resales shows an increase of $849K. Electric Division Revenues are at $31 AM
with expenses at $33AM with a Net Loss of $2M; this is doubled from last year. Gas
Division Revenues are at $15AM with expenses at $13.2M with a Net Profit of $2.3M
which is about $600K less than last year.GM Carter reviewed the Combined Division
graphs.
Electric Division, Retail Customer sales of $26.5M which is an increase from last year.
Power Cost Adjustment is $1.5M compared to $900K in 2025. Residential, Small General
and Large General all had increases, whereas Industrial Sales showed a decrease from
last year: which means HUC's loads are fairly consistent. Overall Kwhr volume sales
show a .59% decrease.
GM Carter pointed out that Sales for Resales has increased by $849K over 2025 budget
due to a decrease in Capacity Sales of $66,250 and Inc in Market Sales of $915K.
Other Revenues of $511 K are made up of Additional customer charges of $154K, Interest
Earnings of $275K, Bond Premiums of $33K, and GIS Reimbursement of $49K.
GM Carter reviewed the Pictorial Graphs; these graphs show the overall comparison as
to how the revenue is derived. The Consumption History graph shows a snapshot of each
customer class loads.
GM Carter spoke on the Electric Division Expense Budget Highlights. Health Insurance
will be staying with Medica with a 15% increase. Dental Insurance will be moving to
Principal with a 13% increase. LTD will be moving to Hartford with a reduction of $5K,
Basic Life and AD&D benefits remain the same. New for 2026 is the PFML rate of .423,
which will be 50/50 split between ER & EE adding a cost of $13K. PILOT remains the
same. GM Carter reviewed the GRE/MISO Transmission Expense with an increase of
$1.2K along with the MRES Baseload Contract Expense of a $612K increase, MISO
Expenses of a $128K decrease and the Bright Energy Choices Program of $68K which
is a decrease of $55K from last year. Additional Operating Expenses of $227K for Unit 7
Selective Catalytic Reduction (SCR) Exhaust Repairs, $70K for Unit 1 Transformer
Repair, $33K for IT Budget — additional FTE added, $55K additional Unit 5, 6 and 7
inventory, and $40K for Solar Land Lease Agreement were also highlighted.
GM Carter reviewed the pictorial graphs of the Electric Division Expenses.
After discussion of the Electric Division preliminary budget, GM Carter gave an overview
of the Natural Gas Division. Retail Customer Sales decreased $525K and showed a
decrease of 5.9% in forecasted Retail MCF's sold, increase in FCA Credits. Contract
Sales of 3M, TDK, UFC and Brownton show an increase in revenue of $131 K. GM Carter
highlighted Other Revenues of $3.4M; which are made up of N.U/HCP/UFC/UNG
Transport/Reservation Fees of $2.1 M, Electric Division Transportation Fees of $728K,
Bond Premiums of $170K, Customer Charges of $54K, Interest Income of $275K,
Brownton & HCP Operation/Maintenance Agreement of $78K, and GIS Reimbursement
of $26K.
GM Carter concluded by reviewing the pictorial graphs and expense budget highlights of
the Natural Gas Division. GM Carter noted that the Retail Customer Gas purchases show
an increase of $16K, Contracted Customers Gas purchases increase $114K, PILOT
remains the same and Additional Operating Expenses of $70K for Engineering Cost for
PHMSA's changes in programs and Flying Line, Patrolling and System Improvements,
$30K forTransmission Line CIS Survey St. James - Hanska, $38K for Distribution District
Regulator #5 and #6 Improvements and Painting and $21 K for IT Budget — Additional
FTE added.
GM Carter looked to the Commission for questions, concerns or comments on the 2026
Budget Presentation.
President Cheney asked the Commissioners to spend time with GM Carter and ask
questions about the budget between now and December 17th.
There were no concerns from the Commissioners. Commissioners stated that the
information was detailed and clear and to continue to present in the same format.
Discussion was held on the Rate Stabilization Fund along with the large projects that are
coming up in the next few years and the funding for the projects. Normal Cap X can be
pared down in the interim, without sacrificing reliability and safety, as it is worth the
investment to do these larger projects.
Conversations were held on suspending Power Cost and Fuel Cost Adjustment Credits
for 2026. Along with having a Strategic Planning meeting in January/February of 2026.
Commissioners agreed to add item 8g. Approval of Suspending Power Cost and Fuel
Cost Adjustment Credits for 2026 to the Regular Commission Meeting that will be held
after today's Budget Workshop.
Commissioner Tom Lambert walked in at 2:44pm
Conversations were held on the PILOT and it was noted that the Commissioners would
like to discuss this more in the future.
There being no further business, a motion by Commissioner Pullis, second by
Commissioner Martinez to adjourn the meeting at 2:55p.m. Motion carried unanimously.
on Martinez, Secrets
ATTEST: Y
Matt Cheney, President
2
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, November 26, 2025
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Troy Pullis; Secretary Don Martinez; Commissioner Kathy
Silvernale; Commissioner Tom Lambert; GM Jeremy Carter; Attorney Marc Sebora:
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez second by Commissioner Silvernale to Approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division usage increased
slightly. Other Revenues decreased due to vehicle sales from last year along with
Operating Expenses also decreasing due to the donation for the VMF field lighting
last year. Market purchases of power decreased due to past true up credits from
MISO, which resulted in a credit for purchased power from the market for October.
Natural Gas Division Total Revenue and Expenses both increased from last year.
GM Carter reviewed the cash position and bond payments along with the Investment
portfolio.
Motion by Commissioner Lambert, second by Commissioner Pullis to Approve the
Financial Statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich —
i. Working on Taxes and Levies
b. Divisions
i. Dan Lang, Engineering Services Manager— Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Inverter in the Solar Field failed and was replaced
2. Outage report has a new look with all the same information
iii. Mike Gabrielson, Production Manager —
1. Continuing to work with GE regarding Unit 1
2. CAT is working with Staff on Unit 7 oil leak
iv. Jared Martig, Financial Manager —
1. Postponing new billing software
v. Byron Bettenhausen, Natural Gas Manager —
1. Wrapping up construction
2. Completed Cl Survey from Trimont to St. James with no major
issues.
c. Human Resources —Angie Radke -
i. Working on PFML policy along with a couple of other policies
ii. Next week information will be sent out to the Commissioners regarding
General Manager Jeremy Carter's annual review
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager —Jeremy Carter
i. Finalizing Budget and CIP
6. Policies
a. Review Policies
i. CIP Rebate Level of Authority
ii. Financial Reserve Policy
iii. Service Beyond City Limits of Hutchinson
iv. Surplus Property Policy
v. Investment Policy
vi. Delegation of Authority Policy
vii. Purchasing Policy/Credit Cards/Fixed Assets
b. Approve Changes
i. Payments of HUC Payables
Ms. Radke spoke of the above policy change. Payments of HUC Payables - looking
to update the year to 2026 along with amending the date of the change.
Motion by Commissioner Pullis, second by Commissioner Lambert to Approve
Policy Changes. Motion carried unanimously.
7. Unfinished Business
8. New Business
a. Approve Non -Waiver of Tort Liability Limits for General Liability Insurance
Mr. Martig presented Approval of Non -Wavier Tort Liability Limits for General
Liability Insurance, which is a requirement by the League of Minnesota Cities
Insurance Trust. Staff is recommending to not waive the tort liability limits.
Completion of the Wavier Form is done annually. In the past HUC has not waived
the municipal tort limit.
2
Motion by Commissioner Martinez, second by Commissioner Silvernale to
Approve Non -Wavier of Tort Liability Limits for General Liability Insurance. Motion
carried unanimously.
b. Approve Customer Uncollectable Write -Offs
Mr. Martig presented Approval of Customer Uncollectable Write -Offs. HUC is
requesting to approve write-offs of $6,036.58.
Motion by Commissioner Silvernale, second by Commissioner Pullis to Approve
Customer Uncollectable Write -Offs. Motion carried unanimously.
c. Approve Resolution 25-01 Authorizing the Purchase of Natural Gas from
Minnesota Municipal Gas Agency, D/B/A Minnesota Community Energy
GM Carter presented Approval of Resolution 25-01 Authorizing the Purchase of
Natural Gas from Minnesota Municipal Gas Agency, D/B/A Minnesota Community
Energy. Approving the resolution authorizes HUC to continue moving forward
under the pretense of executing final Long-term Gas Supply Agreements.
Commissioner Lambert walked out at 3:11 pm.
GM Carter noted Draft Form Gas Supply Agreements are included in the packet for
the Commission to review along with an Attorney's Opinion Letter.
The resolution does not bind HUC to execute the Gas Supply Agreements and
allows for subsequent finalization of agreements with additional revisions if
needed.
Motion by Commissioner Pullis, second by Commissioner Martinez to Approve
Resolution 25-01 Authorizing the Purchase of Natural Gas from Minnesota
Municipal Gas Agency, D/B/A Minnesota Community Energy. Motion carried
unanimously.
Commissioner Lambert walked in at 3:13pm.
d. Approve Resolution 25-02 Establishing a Natural Gas Rate Schedule for Large
Industrial Customer
GM Carter presented Approval of Resolution 25-02 Establishing a Natural Gas
Rate Schedule for Large Industrial Customer. As part of the MCE Prepay Deal,
HUC would be supplying natural gas volumes to a transportation customer on the
transmission line. As part of the arrangement, a resolution needs to be approved
establishing a rate schedule for natural gas sales to the large volume industrial
customer.
3
Conversations were held on the rate schedule being used along with the volume
and the final discount allocation between HUC and the industrial customer.
Motion by Commissioner Pullis, second by Commissioner Silvernale to Approve
Resolution 25-02 Establishing a Natural Gas Rate Schedule for Large Industrial
Customer. Motion carried unanimously.
e. Approve Req#010454 - B-MN Data Centers —Conductor and Terminators
Mr. Hunstad presented Approval of Req#010454 — B-MN Data Centers —
Conductor and Terminators. Last month the Board approved the Switchgears, the
next step is approval of Conductor and Terminators. Mr. Hunstad reviewed the
quotes that were received and Wesco has the best pricing for both the Conductor
and Terminators that are needed for the project.
Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve
Req#010454 — B-MN Data Centers — Conductor and Terminators. Motion carried
unanimously.
f. Discussion of 2026 Environmental Footprint Chart and 2024 Power Supply Mix
Chart
GM Carter reviewed the 2026 Environmental Footprint Chart and 2024 Power
Supply Mix Chart. The Power Supply Mix Chart shows where HUC's electricity
comes from for the previous year. Market purchases were the largest supply
source at 44%, followed by Coal at 23%. The Environmental Footprint shows
HUC's attributes. For 2026, because of the election the Board made, HUC will be
50% Carbon Free within the community. A portion (25%) will come from RECs
that will be purchased from MRES as part of the allocation the Board approved,
and a portion (25.3%) will come from market purchases declared as carbon free
sources. HUC will be 25% Renewable.
President Cheney added item 8g.
g. Approval of Suspending Power Cost and Fuel Cost Adjustment Credits for
2026.
GM Carter recapped the Budget meeting which was held prior to today's Regular
Commission meeting. Looking at both Electric and Natural Gas, particularly on the
Electric side, HUC is seeing large increases in transmission costs, wholesale
power costs and operating costs. HUC has done retail rate increases and is
currently in the 3rd year of rate adjustments based on a gradual glide path.
4
Looking at preliminary budgets, the retail rates and rate allocations that are being
collected are not keeping pace with the forecasted increased costs of supplying
power to HUC's customers. The mechanisms that have been used to level off the
volatility of power supply costs for the retail rate customers while keeping adequate
cash balance on hand to pay for these large projects coming up are not keeping
pace. Staff is looking to suspend those mechanisms to keep cash on hand not only
for operating cash purposes but also for large transmission and distribution
projects coming up in the next 6 years. The large projects are unique
circumstances that only happen every 40-50 years but are good projects to have
with a good rate of financial return for those costs able to be reimbursed by the
market. HUC needs to be respectful of the rate payers while still maintaining
reliability as a priority. Normal Cap X can be pared down in the interim as its worth
the investment to do these larger projects. It is customary for HUC to go through a
Cost -of -Service Study every 5 years, unless circumstances dictate doing the study
sooner. Since there are big projects coming up and operational costs are
forecasted to increase above inflation, a Cost -of -Service Study would be helpful to
set the financial direction for the next 6 years. A strategic planning meeting will be
planned at the start of 2026.
Motion by Commissioner Pullis, second by Commissioner Martinez to Approve
Suspending Power Cost and Fuel Cost Adjustment Credits for 2026. Motion
carried unanimously.
GM Carter will bring forth a modified budget along with moving up the Cost -of -
Service Study in 2026. Staff will also look at planning a Strategic Planning meeting
in early 2026.
h. Adjourn
There being no further business, a motion by Commissioner Pullis, second by
Commissioner Lambert to adjourn the meeting at 3:31 pm. Motion carried
unanimously.
ATTEST:' \
Matt Cheney, President
5
e/ay- it'd
on Martinez, Secre