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cp07-14-20HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DULY 14, 2020 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER— 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Riverside Church (The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor ifhe 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, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of June 23, 2020 CONSENT AGENDA 77- (The items listedor consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Issuing Massage License to Heidi Thode (b) Consideration for Approval of Resolution No. 15187 - Resolution Appointing Election Judges for Primary Election (c) Consideration for Approval of Telecommunications Lease Amendment Renewal Between the City of Hutchinson and T-Mobile (d) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. 8. ASSESSMENT HEARING FOR T.H. 15 (MAIN STREET) RECONSTRUCTION AND T.H. 15 ADA AND OVERLAY IMPROVEMENTS PROJECT (LETTING NO. 1, PROJECT NO. 20-01) CITY COUNCIL AGENDA July 14, 2020 9. PUBLIC HEARING FOR TH 7/22 AND MONTANA STREET CROSSING IMPROVEMENTS (LETTING NO. 2, PROJECT NO. 20-02) (a) Approve/Deny Resolution No. 15188 — Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15189 — Resolution Approving Plans and Specifications and Ordering Advertisement for Bids MMUNICATIONS REQUESTS AND PETITIONS purpose oj this portion oj the agenda is to provide the ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 10. REVIEW OF WATER DISTRIBUTION AND WASTEWATER COLLECTION/TREATMENT LONG-TERM CAPITAL IMPROVEMENT PLANS 11. UPDATE ON CARES FUNDING UNFINISHED BUSINESS 12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 20-816 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO DROPTINE PROPERTIES, LLC NEW BUSINESS 13. APPROVE/DENY RESOLUTION NO. 15186 — AUTHORIZING ISSUANCE OF $2,465,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2020A 14. APPROVE/DENY ORDINANCE NO. 20-818 — AN ORDINANCE EXTENDING LOCAL STATE OF EMERGENCY GOVERNANCE (T epurpose o t is portion of the agenda is to deal with organizational development issues, includingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson Utilities Commission Minutes from May 27, 2020 (b) Liquor Hutch Quarterly Report MISCELLANEOUS 16. STAFF UPDATES 17. COUNCIL/MAYOR UPDATE ADJOURNMENT 2 HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JUNE 23, 2020 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, input from constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Mary Christensen and Dave Sebesta. Members were present via electronic means. Others present in the Council Chambers were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Czmowski, to approve agenda as presented. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 2. INVOCATION — Hope Family Church (The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15185 — Resolution Accepting $3000 Donation from Hutchinson Huskies Baseball Club for VMF Outfield Fencing Project Matt Jaunich, City Administrator, noted that this project is part of the City's capital improvement plan and the Hutchinson Huskies intend to donate $15,000 towards the project. Tonight, Kyle Messner of the Hutchinson Huskies is present to present a $3000 donation towards the project. The project will begin when the baseball season is over, so most likely in August. Motion by Cook, second by Sebesta, to approve Resolution No. 15185. Kyle Messner, Hutchinson Huskies, officially presented a $3000 check to the City for the project. Mr. Messner provided an overview of the upcoming Hutchinson Huskies season which is officially beginning tomorrow night. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity for members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL CITY COUNCIL MINUTES June 23, 2020 6. APPROVAL OF MINUTES (a) Regular Meeting of June 9, 2020 Motion by Sebesta, second by Christensen, to approve minutes as presented. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. CONSENT AGENDA (The items listed for consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Amending Zellas Liquor License to Include Outdoor Seating Area (b) Consideration for Approval of Summary Ordinance No. 20-814 — Amending Chapter 112 — Liquor Regulations (c) Consideration for Approval of Resolution No. 15179 - Resolution Establishing Location for Traffic Control Devices (Ash Street/Griffin Avenue/Northwoods Avenue/Hillcrest Road) (d) Consideration for Approval of Resolution No. 15180 - Resolution to Sell at Auction Surplus Public Works Property (Pickup Truck and Compactor) (e) Consideration for Approval of Resolution No. 15182 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary and Final Plat, Vacation of Easement and Site Plan at 327 and 479 Hwy 7 East (Favorable Planning Commission Recommendation) (f) Consideration for Approval of Resolution No. 15183 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Located at 1105 Benjamin Avenue SE (Favorable Planning Commission Recommendation) (g) Consideration for Approval of MnDOT Airport Maintenance and Operations Agreement Amendment (h) Consideration for Approval of MnDOT Indemnification Agreement (i) Consideration for Approval of Lease Agreement with Ace Hardware for Use of City Parking Lot (j) Consideration for Approval of Items for TH 7/22 and Montana Street Crossing Improvements (Letting No. 2, Project No. 20-02) 1. Resolution No. 15177 - Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15178 - Resolution Receiving Report and Calling Hearing on Improvement 2 CITY COUNCIL MINUTES June 23, 2020 (k) Consideration for Approval of Agreements with Independent School District 423 i. Grounds Maintenance ii. Use of Facilities iii. Burich Arena (1) Claims, Appropriations and Contract Payments Items 7(e), 7(f), 7(h) and 7(i) were pulled for separate discussion. Motion by Czmowski, second by Christensen, to approve Consent Agenda with the exception of the items noted above. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(e) had further discussion. Council Member Cook asked about SAC/WAC fees. Dan Jochum, Planning/Zoning Director, noted that this project would have to comply with the SAC/WAC policy and a condition can be added to the conditional use permit to clarify if desired. Council Member Cook also asked about private utilities, roads, ponds and how the City is protected if a piece of the property gets sold off. Mr. Jochum noted that a development agreement would be put in place in addition to association documents that can be reviewed by the City. A condition can be included on the conditional use permit requiring a development agreement and association agreement. Discussion was also held regarding ponding, flow and underdrains. Mr. Jochum also noted that Item 11 on the conditional use permit has a typographical error and will be corrected. Motion by Cook, second by Czmowski, to approve Resolution with additional conditions: association agreement as part of development agreement and SAC/WAC charges will be applied per city policy once future usage determined, as well as Item 11 typographical correction. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(f). Council Member Cook raised questions pertaining to drainage. Mr. Jochum stated that flow should go to catch basin in street and that has been addressed with the applicant. Mr. Jochum noted that an additional drain will be added in the curb line. Motion by Cook, second by Christensen, to approve Item 7(f). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(h) had further discussion. Matt Jaunich, City Administrator, explained that there were technology issues with this item and not all pages of the agreement were included in the packet. A full version was distributed this evening. Motion by Cook, second by Czmowski, to approve Item 7(h). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. CITY COUNCIL MINUTES June 23, 2020 Item 7(i) had further discussion. Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that a few revisions have been made to this agreement since the publishing of the packet. This agreement allows for Ace Hardware to house their UHaul trucks in the city - owned parking lot next to their business. A couple additions to the agreement including naming the City as an additional insured on Ace Hardware's insurance policy; making Ace Hardware responsible for any environmental issues, such as spills or contamination, on the premises; and ensuring that Ace Hardware removes all property from the premises upon termination of the lease. Motion by Sebesta, second by Czmowski, to approve Item 7(i). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. CONSIDERATION OF AN ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-21 AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN THEREFORE (a) Approve/Deny Resolution No. 15175 — Resolution Adopting a Modification to the Development Program for Development District No. 4; and Establishing TIF District No. 4-21 and Adopting a TIF Plan Therefor (b) Approve/Deny Resolution No. 15176 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with TIF District No. 4-21 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that Rite -Way Conveyors is planning to expand in Hutchinson with a 40,500 square foot manufacturing building in the City's industrial park. The new facility will be built by Systems West, Inc. and owned by Droptine Properties, LLC which is the developer on the project and will lease the building to Rite -Way Conveyors. Rite -Way hopes to purchase the building at a later date. To make the project economically feasible, it is being proposed that an economic development tax increment financing district be established to help offset the cost of land acquisition. By establishing an economic development TIF District for the project, the City will be able to sell the lot to the developer for $1.00, but then capture future property taxes generated by the project and reimburse itself for the full cost of the lot. Mr. Seppelt continued to explain how TIF Districts function. Rite -Way Conveyors provides conveyor systems to various companies for operational and package handling needs. 26 existing jobs will be moving to Hutchinson and the company is in process of adding another four employees over the next several months. Typical wages are $14-$25/hour depending on skills and the position. The estimated market value of the project will be $1,502,700 with annual property taxes estimated at $59,500. The duration of the TIF District is eight years. Funds from the TIF District will flow into the City's Community Improvement Fund to repay the amount invested when the industrial park was first established. Plans are that construction will begin in late June and the manufacturing section of the building should be ready by the end of the year. The office area of the building would then be completed in February 2021 and final completion of the project in the Spring of 2021. Motion by Cook, second by Christensen, to close public hearing. Roll call vote was taken: Cook — F1 CITY COUNCIL MINUTES June 23, 2020 aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Motion by Sebesta, second by Christensen, to approve Resolution Nos. 15175 and 15176 as well as the interfund loan, purchase agreement, development agreement and lease agreement. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY FIRST READING OF ORDINANCE NO. 20-816 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO DROPTINE PROPERTIES, LLC Matt Jaunich, City Administrator, explained that this is the first reading of the ordinance to officially sell the land for the Rite -Way Conveyors (Droptine Properties, LLC) project that was just discussed. Motion by Sebesta, second by Cook, to approve first reading of Ordinance 20-816. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION NO. 15181 —RESOLUTION ADOPTING FINDINGS OF FACT AN REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT AND SITE PLAN REVIEW FOR I M PROVEM ENTS TO WEST ELEM ENTARY SCHOOL LOCATED AT 875 SCHOOL ROAD SW (SPLIT PLANNING COMMISSION RECOMMENDATION) Dan Jochum, Planning/Zoning Director, presented before the Council. Mr. Jochum explained that the Planning Commission's split decision centered around the number of access points to School Road. The applicant has requested four access points, however staff is recommending that only three access points be installed. The Planning Commission recommended to grant the four access points on a 5 to 1 vote. The school's intent is to separate the different types of traffic (staff, parent drop off, special education buses and school buses). Council Member Cook noted that he was in favor of staff s recommendation to allowing three access points, Mayor Forcier agreed as did Council Member Christensen. Brian Mohr, ISD 423, presented before the Council. Mr. Mohr explained that the current West Elementary is going to be reconstructed to a PreK-3 school system, however it will be two different buildings on the campus — a PreK-1 building and a 2-3 building. Mr. Mohr explained the various parking areas and the purpose for the access points and the use of timing of each. CITY COUNCIL MINUTES June 23, 2020 Daron VanderHeiden, superintendent of schools, was also in attendance for questions. Motion by Cook, second by Sebesta, to approve Resolution No. 15 18 1, with the exception of allowing for three access points instead of four. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 11. APPROVE/DENY ISSUING TOBACCO LICENSE TO WASEEM ABUJUDAH OF SMOKES4LESS HUTCH INC. Matt Jaunich, City Administrator, explained that there has been an ownership change of Smokes4Less, therefore a new tobacco license has been applied for by the new owner. Motion by Christensen, second by Sebesta, to approve issuing tobacco license to Waseem Abujudah of Smokes4Less Hutch Inc. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Council Member Cook commented that the business's sign was in disrepair. Dan Jochum noted that his department will send them notification that it needs to be fixed. Motion carried unanimously. 12. APPROVE/DENY CITY OF HUTCHINSON WATER SUPPLY PLAN Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the Minnesota Department of Natural Resources has requested that the City formally approve and adopt the recently finalized Water Supply Plan as well as approve the Certificate of Adoption form. Motion by Czmowski, second by Christensen, to approve water supply plan and certificate of adoption form. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 13. APPROVE/DENY SETTING COUNCIL WORKSHOP TO REVIEW 2019 AUDIT REPORT FOR JULY 28, 2020, AT 4:30 P.M. Motion by Cook, second by Czmowski, to approve setting Council workshop for July 28, 2020, at 4:30 p.m. to review 2019 audit report. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 14. APPROVE/DENY RE -SETTING AUGUST 11, 2020, CITY COUNCIL MEETING DUE TO PRIMARY ELECTION Matt Jaunich, City Administrator, explained that the August 11, 2020, City Council meeting is the same day as the primary election and no public meetings may be held between 6:00-8:00 p.m. Therefore, the Council either needs to move the time of the meeting or the date of the meeting. Motion by Sebesta, second by Czmowski, to approve re -setting August 11, 2020, City Council meeting to begin at 4:00 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 31 CITY COUNCIL MINUTES June 23, 2020 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) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (c) Tall Grass/Noxious Weed Monthly Report for May 2020 (d) Hutchinson Housing & Redevelopment Authority Board Minutes from May 19, 2020 (e) Planning Commission Minutes from May 19, 2020 (0 City of Hutchinson Financial Report and Investment Report for May 2020 MISCELLANEOUS 16. STAFF UPDATES Miles Seppelt — Mr. Seppelt provided a brief update on the manufacturers in the city as far as how they have been effected by the pandemic. Most are doing okay however some are seeing slow downs in their orders. The EDA surveyed 24 companies - 20 responded and about a dozen said they are holding their own with a small handful having almost zero business. However, another small handful are bombarded with orders. Mr. Seppelt noted that he was not given any information that any companies had to lay off employees. Kent Exner — Mr. Exner provided an update on the Main Street/Hwy 15 project and how businesses are functioning now that they are open. He also noted that utilities are installed through 2nd Avenue and contractors are on to building the roadway through the 2nd Avenue South intersection. Mr. Exner spoke of challenges to access to the post office when they move to the 3rd Avenue intersection. Mr. Exner did note that the roadway will not be opened by MnDOT until the new traffic signals are installed and functioning. Mr. Exner also noted that the bid opening for the Civil Air Patrol project has been rescheduled to July 22, 2020. Council Member Cook asked Mr. Exner if he could provide trend charts for total use similar to what is on page 73 of the water supply plan. Matt Jaunich — Mr. Jaunich noted that City offices will be closed July 3 in observance of 4th of July holiday; the planning/zoning/building customer service counter is now open and reconstructed; absentee voting begins this Friday June 26, 2020, and will take place in the Council Chambers; first half tax payments have been received and initial review shows no significant changes. 17. COUNCIL/MAYOR UPDATE Dave Sebesta — Council Member Sebesta asked if the Council is willing and ready to begin meeting in person in the Council Chambers. Mayor Forcier agreed. Council Member Czmowski suggested continuing to hold the meetings virtually until the social distancing restrictions are removed. Council Members Christensen and Cook agreed. Mary Christensen — Council Member Christensen noted that the library is now making appointments for limited computer use and have several tools in place to allow for social distancing. Steve Cook — Council Member Cook asked if the statistics could be added again to the end of the audit report (total water usage, utilities usage, tax information, employee counts, etc.). Mr. Jaunich will check with the finance director to see if that data can be added again. Gary Forcier — Mayor Forcier commented that the City has had to make difficult business decisions 7 CITY COUNCIL MINUTES June 23, 2020 related to the COVID-19 pandemic. ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 7:15 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Massage License - Heidi Thode Department: Administration LICENSE SECTION Meeting Date: 7/14/2020 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ New Business Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Heidi Thode of Harmony Massage LLC has submitted a massage license application into administration for review and processing. The application is for Ms. Thode to provide massage services at her business located at 35 Main Street South. A background check was completed of Ms. Thode and the police department does not object to the issuing of the license. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing massage license to Heidi Thode of Harmony Massage LLC to provide massage services at 35 Main Street South Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: 111 Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151 Fax: (320) 234-4240 a Business Information . City of Hutchinson , Application for Massage Service License (Under Ordinance No. 119) ` BusinesYName in S+- - Hu44,j'AjVV% a' Busin ss Address City ___ Zoning District *verify the proposed use is allowed in this zoning district if Corporate Name J L C License Fee: $175 Operating Year: 7-0 Z D 3Zv --5 3 -T&3 Phone Number M w State Zip .uuac Phone Number Owner(s)/Corporate Officer(s) (list names and addresses of all persons have a beneficial interest in the business/corporation) Name: 1 k b j 2 5-�• v 6-!57 32.5' Address City State Zip Name: *If Name: Address y, list additional owner(s on a City State sheet ofpaper Address City State Zip 575S5-b Zip erators (list all individuals involved in given* massage services) Name: t° e Address City State Zip Name: Address *Ifnecessarv. list additional operators on a separate sheet City State Zip City of Hutchinson Application for Massage Service Page 2 of S Describe Nature of Massage Business and Massage Services Offered I e a 3 0 o , a v, . -ti rm e -5 , C ;11e s41- 9 o�. r% C �Lq 5 �� e�►-Cra.t• e s aS ne.c71 Insurance Coverage Information (attach public liability insurance policy or certificate of insurance as required in Section 119.07 ot*Hutchinson Citv Code) 7 w Z-Z`-7f- re Add7�`sfs/ /l Phone Number Agent's Name City State Zip Fax Number ackground Statement Have you or any operators been convicted of any crime, misdemeanor, or violation of any municipal ordinance, other than traffic violations? ❑ YES 61 NO If yes, state nature of offense and punishment or penalty therefore: Manager Information (Section 119.06 of Hutchinson City Code requires that the manager of the establishment be "a natural person who is a resident of the City". Please complete the following confirming compliance with this ordinance) 4/)L - 5q 7 - Manager Name Phone Number �� :;t 4� 6 5-53 sv Manliger Address City State Zip Checklist (all items must be checked "yes" in order for the application to be rocessed) The following items need to be completed and/or attached in order for the application to be processed: Copy of insurance that meets or exceeds limits established in the ordinance: I yes ❑ no Application fee paid in full (check or money order): 3 yes ❑ no Application completed in full and signed: Ef Yes ❑ no i _ 3 City of Hutchinson Application for Massage Service Page 3 of S I hereby certify that I have completely filled out the entire above application, together and that the application is true, correct, and accurate. I fully understand that any person who violates any provision of Chapter 119 of the Hutchinson City Code pertaining to Massage Services is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1000.00 or by imp onment for a period not exceeding 90 days or both, plus, in either case, the costs of prosecution. (p— _o26a10 Signature o Applicant Date Print Name Title NOTE: No application will be forwarded to the City Council unless received one week prior to the regular Council meeting, filled out in completion, and fee payment is attached Internal Use Only Zoning/ Building:'dapproved ❑denied Notes: Fire Xapproved ❑ denied Notes; -- Police A appr oved ❑ denied Notes:' r City Council ❑ approved ❑ denied Notes: H:Licenses/Applications/Massage. doc f HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Resolution No. 15187 - Appointing Election Judges for Primary Election Department: Administration LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Melissa Starke Agenda Item Type: Presenter: Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The federal/local primary election is being held August 11, 2020, at the Hutchinson Recreation Center located at 900 Harrington Street. In accordance with State law, cities must appoint election judges for this election by July 17, 2020. Attached is Resolution No. 15187 appointing election judges to serve at the primary election. Election judge appointments for the general election will be made this Fall. BOARD ACTION REQUESTED: Approve Resolution No. 15187 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. 15187 RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2020 PRIMARY ELECTION WHEREAS, Chapter 204B, Section 204B.16, Subd. 1 and Section 20413.21, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may designate the location of polling place of all precincts (one, two, and three) and naming of judges serving in their municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That the polling place to be used during the 2020 Primary Election for all precincts will be in the Recreation Center located at 900 Harrington Street S.W., Hutchinson, Minnesota. 2. That the Election Judges for the Presidential Nomination Primary Election being held August 11, 2020, are hereby appointed in accordance with the attached list. 3. Be It Further Resolved that the Hutchinson Election Administrator is with this authorized to make any substitutions or additions as deemed necessary. Adopted by the City Council this 14'h day of July, 2020 Gary T. Forcier, Mayor ATTEST: Matthew Jaunich, City Administrator PRIMARY ELECTION AUGUST 11, 2020 ELECTION JUDGES JANET CONNER CATHY PRELLWITZ* NANCY NACKERUD** MARK LEWANDOWSKI* GLADYS PILGRIM BETTY BRANDT** CAROL M. JOHNSON JOHN GREIN JOHN F. OLSEN III ANGIE RADKE* TOM WIRT LANCE HEATON GAIL DEAN JEANNE LANGAN LINDA RUZICKA** CAROL DWINNELL *indicates head judge **indicates assistant/co-head judge HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: T-Mobile Lease Amendment Renewal Department: PW/Engineering LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: John Paulson Agenda Item Type: Presenter: John Paulson Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City of Hutchinson has had a lease agreement with T-Mobile since 2000. The lease is for the use of telecommunications equipment installed on the City water tower and property at South Park. The current lease expired in May 2020 and needs to be renewed to allow T-Mobile to continue to occupy City property at this location. City staff has worked with T-Mobile to develop the 2nd Amendment To Site Lease with Option. The Amendment allows for the continued use of the existing lease. The Amendment includes adjusting the leased time frame to include a new start date of June 1, 2020 with an initial term of 5 years, and 3 subsequent 5 year extensions (options). It also amends the monthly rent amount to reflect the current market demands at this location. The current monthly rent amount of $1,343.92 will be adjusted to $2,200.00. The Amendment is attached for your reference and consideration. City staff will be available to answer any questions that you may have. BOARD ACTION REQUESTED: Approve T-Mobile Site Lease 2nd Amendment with Option. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: SECOND AMENDMENT TO SITE LEASE WITH OPTION THIS SECOND AMENDMENT TO SITE LEASE WITH OPTION ("Second Amendment") is made and entered into on , 2020 ("Effective Date"), by and between the City of Hutchinson, a Minnesota municipal corporation ("Landlord"), and T-Mobile Central LLC, a Delaware limited liability company, as successor in interest to APT Minneapolis, Inc. ("Tenant") (collectively, the "Parties"). Recitals The Parties hereto recite, declare and agree as follows: A. Landlord and Tenant entered into a SITE LEASE WITH OPTION, dated May 23, 2000, as amended by that First Amendment to Site Lease with Option dated March 26, 2019 ("First Amendment") (collectively, the "Lease"), whereby Landlord leased to Tenant a certain portion of the property (the "Premises") located at 200 2nd Avenue SW, Hutchinson, MN 55350 (the "Property"). B. Landlord and Tenant desire to enter into this Second Amendment in order to modify and amend certain provisions of the Lease. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant covenant and agree as follows: 1. Modification of Term. The Lease shall be amended to provide that a New Initial Term of Five (5) years ("New Initial Term"), commencing on June 1, 2020 and the Term will be automatically renewed for up to three (3) additional Five (5) year terms (each a "Renewal Term") without further action by Tenant. 2. Rent and Costs. Upon commencement of the New Initial Term the Rent that Tenant pays Landlord will be two thousand two hundred and xx/100 dollars ($2,200.00) per month. Thereafter Rent shall be payable in accordance with the terms of the Lease. The parties hereby agree that, as of the date of this Second Amendment, there are no payment obligations of Tenant under the Lease, including but not limited to the payment of Rent, or other costs or fees, that are overdue; and that any future charges payable under the Lease by Tenant shall be billed by Landlord to Tenant within twelve (12) months from the date the charges were incurred or due; otherwise the charges shall be deemed time -barred, waived and released by Landlord. 3. The terms and conditions of the Lease are incorporated herein by this reference, and capitalized terms used in this Second Amendment shall have the same meanings such terms are given in the Lease. Except as specifically set forth herein, this Second Amendment shall in no way modify, alter or amend the remaining terms of the Lease, all of which are ratified by the parties and shall remain in full force and effect. To the extent there is any conflict between the terms and conditions of the Lease and this Second Amendment, the terms and conditions of this Second Amendment will govern and control. 4. Landlord represents and warrants to Tenant that the consent or approval of no third party, including, without limitation, a lender, is required with respect to the execution of this Second Amendment, or if any such third party consent or approval is required, Landlord has obtained any and all such consents or approvals. 5. This Second Amendment will be binding on and inure to the benefit of the parties herein, their heirs, executors, administrators, successors -in -interest and assigns. 6. Landlord represents and warrants to Tenant that the consent or approval of a third party has either been obtained or is not required with respect to the execution of this Second Amendment. Site Number: AIP0531A Site Name: Hutchinson WT Market: Minneapolis A1P0531A_2188_AMD_Anchor _Phase 3_5041400_Hardening National _HC 2019_67928 7. This Second Amendment may be executed in duplicate counterparts, each of which will be deemed an original. IN WITNESS WHEREOF, the Parties have executed this Second Amendment on the day and year first written above. LANDLORD: City of Hutchinson By: Printed Name: Title: Date: Tenant: T-Mobile Central LLC By: Printed Name: Title: Date: UApproved Site Number: AIP0531A Site Name: Hutchinson WT Market: Minneapolis T-Mobile Legal Approval FA A1P0531A_2188_AMD_Anchor _Phase 3_5041400_Hardening National _HC 2019_67928 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 6/23/20 - 7/14/20 Check Date Check Vendor Name Description Amount -------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ ---------- 06/19/2020 211395 MNPEA Payroll 5/31/20 - 6/13/20 585.00 06/19/2020 211396 Unum Life Insurance Payroll 5/31/20 - 6/13/20 1,261.15 06/19/2020 211397 LELS Payroll 5/31/20 - 6/13/20 434.00 06/19/2020 211398 HART Payroll 5/31/20 - 6/13/20 602.54 06/19/2020 EFT1236 EFTPS Payroll 5/31/20 - 6/13/20 68,808.40 06/19/2020 EFT1237 Child Support Payroll 5/31/20 - 6/13/20 577.29 06/19/2020 EFT1238 MN Dept of Revenue Payroll 5/31/20 - 6/13/20 13,405.20 06/19/2020 EFT1239 Provident Life Insurance Payroll 5/31/20 - 6/13/20 612.34 06/19/2020 EFT1240 PERA Payroll 5/31/20 - 6/13/20 56,191.90 06/19/2020 EFT1241 TASC-Flex Payroll 5/31/20 - 6/13/20 1,621.87 06/19/2020 EFT1242 TASC-H S A Payroll 5/31/20 - 6/13/20 13,689.51 06/19/2020 EFT1243 ICMA Payroll 5/31/20 - 6/13/20 3,308.52 06/19/2020 EFT1244 VOYA Payroll 5/31/20 - 6/13/20 330.00 06/19/2020 EFT1245 MNDCP Payroll 5/31/20 - 6/13/20 350.00 06/24/2020 211399 ARTHURJ GALLAGHER RISK 2020-2021 AIRPORT LIABILITY INSURANCE 6,471.00 06/24/2020 211400 ARTIST DALE LEWIS 2020 SCULPTURE STROLL "OLD TEX" - COMM 1 1,000.00 06/24/2020 211401 COMMISSIONER OF TRANSPORTATION PERMIT#4462RENEWAL -STREETS 60.00 06/24/2020 211402 STUDIOCHURCH LLC 2020 SCULTPURE STROLL "KEEPER OF MEMORIE 1,000.00 07/03/2020 EFT1246 EFTPS Payroll 6/14/20 - 6/27/20 67,054.48 07/03/2020 EFT1247 Child Support Payroll 6/14/20 - 6/27/20 577.29 07/03/2020 EFT1248 MN Dept of Revenue Payroll 6/14/20 - 6/27/20 12,904.74 07/03/2020 EFT1249 Provident Life Insurance Payroll 6/14/20 - 6/27/20 612.34 07/03/2020 EFT1250 PERA Payroll 6/14/20 - 6/27/20 54,186.20 07/03/2020 EFT1251 TASC-Flex Payroll 6/14/20 - 6/27/20 1,684.00 07/03/2020 EFT1252 TASC-H S A Payroll 6/14/20 - 6/27/20 13,727.97 07/03/2020 EFT1253 ICMA Payroll 6/14/20 - 6/27/20 3,308.52 07/03/2020 EFT1254 VOYA Payroll 6/14/20 - 6/27/20 330.00 07/03/2020 EFT1255 MNDCP Payroll 6/14/20 - 6/27/20 350.00 07/03/2020 211403 EMPLOYEE MANUAL CHECK Payroll 6/14/20 - 6/27/20 55.00 07/03/2020 211404 NCPERS Payroll 6/14/20 - 6/27/20 336.00 07/03/2020 211405 HART Payroll 6/14/20 - 6/27/20 602.54 07/01/2020 211406 BRETTOMAN FACADE IMPROVEMENT GRANT 2,215.00 07/14/2020 211407 A TO Z CHEMICAL SUPPLY TAR & ASPHALT REMOVER FOR STREETS REPAIRS 3,443.25 07/14/2020 211408 ACE HARDWARE - 1315 REPAIR &MAINT SUPPLIES - MULTIPLEDEPTS 1,309.96 07/14/2020 211409 VOID VOID - 07/14/2020 211410 ACE HARDWARE - 1790 REPAIR & MAINT SUPPLIES - FIRE 108.93 07/14/2020 211411 ACE HARDWARE - 1825 ANT BAIT - POLICE 25.25 07/14/2020 211412 ACHORD, MILES UB refund for account: 2-070-5410-7-07 27.90 07/14/2020 211413 ALL SPORTS AMERICA YOUTH SPORTS JERSEYS - RECREATION 420.00 07/14/2020 211414 ALPHA WIRELESS JULY MAINTENANCE ON RADIO EQIUP - POLICE 794.75 07/14/2020 211415 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 231.84 07/14/2020 211416 AMERICAN RAMP COMPANY NEW SKATE PARK EQUIPMENT 20,233.33 07/14/2020 211417 AMERIPRIDE SERVICES 6/15 & 6/29 LIQUOR HUTCH CLEANING SERVICES 318.36 07/14/2020 211418 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,744.80 07/14/2020 211419 ARTSPACE PROJECTS INC CONSULTING - STATE THEATRE 5,750.00 07/14/2020 211420 ASHWILL, TONY UB refund for account: 3-730-6250-6-02 88.04 07/14/2020 211421 AUTO VALUE -GLENCOE MISCELLANEOUS HATS SUPPLIES 732.63 07/14/2020 211422 B&B FLOORING LLC EPDXY - ELK PARK BATHROOM 600.00 07/14/2020 211423 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 6,038.26 07/14/2020 211424 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 462.12 07/14/2020 211425 BERTRAM ASPHALT COMPANY, INC. 2020 STREET PAVEMENT REPAIRS 20,303.82 07/14/2020 211426 BOBICK, DOUGLAS REFUND: CAMPGROUND RESERVATION 8/18-8/22 115.00 07/14/2020 211427 BOLTON & MENK INC. 2019/2020 UTILITY REHAB SERVICES - ENGINEERING 342.00 07/14/2020 211428 BOND TRUST SERVICES CORPORATION 2020 BOND PAYING AGENT FEES 4,750.00 07/14/2020 211429 BRANDON TIRE CO SPARE TIRE FOR WHAM MOWER- PARKS 243.70 07/14/2020 211430 BRAUN INTERTEC CORP TH 15 1 M P ROV: TH RU 6/19/20 1,199.00 07/14/2020 211431 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 29,391.86 07/14/2020 211432 BUFFALO CREEK ENTERPRISES COST OF GOODS SOLD - LIQUOR HUTCH 102.96 07/14/2020 211433 BW WELDING VARIOUS SAWS & SCREEN FABRICATION - WWTP 741.60 07/14/2020 211434 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 115,526.21 07/14/2020 211435 CACKA ROOFING INC TIF: DANA & AARON EDMISTON 3,950.00 07/14/2020 211436 CARD SERVICES MISC SUPPLIES - POLICE 57.35 07/14/2020 211437 CARS ON PATROL SHOP LLC SQUAD #1: REPAIR CAMERA MOUNT 547.43 07/14/2020 211438 CENTRAL HYDRAULICS MISC REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,111.04 07/14/2020 1211439 1 CENTRAL MCGOWAN HANDLE, ACETYLENE, OXYGEN - HATS 252.47 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 6/23/20 - 7/14/20 .Check -Date ---- ---- Check ]Vendor-Nam-e Description Amount ------------ -------- ---------------------------------------------------------------------------------------------------------------------------------------------- - 07/14/2020 211440 CHEMISOLV CORP FERRIC CHLORIDE - WWTP 5,134.61 07/14/2020 211441 CHRISTIAN, JILL REFUND: CAMPSITE 7/10-11- PARKS 65.00 07/14/2020 211442 CINTAS CORPORATION JUNE CLEANING SERVICE & SUPPLIES 201.02 07/14/2020 211443 CLARKE ENVIRONMENTAL MOSQUITO MANAG JUNE MOSQUITO SPRAYING SERVICES 15,319.50 07/14/2020 211444 COLDSPRING MULTIPLE ROSE NICHE FRONT -CEMETERY 786.00 07/14/2020 211445 COOL AIR MECHANICAL INC SEMI ANNUAL MAINTENANCE -CIVIC ARENA 2,238.00 07/14/2020 211446 CORE & MAIN LP WATER METERS & PARTS 5,712.96 07/14/2020 211447 CORNER POST EROSION CONTROL SOIL & HYDRO BACKYARD UTILITY: S GRADE RD 150.00 07/14/2020 211448 CREEKSIDE SOILS NATURAL MULCH 399.30 07/14/2020 211449 CROW RIVER AUTO & TRUCK REPAIR MULTIPLE CITY TRUCK REPAIRS 1,427.77 07/14/2020 211450 CROW RIVER OFFICIALS ASSN SLOW PITCH SOFTBALL 2020 4,860.00 07/14/2020 211451 CROW RIVER PRESS INC SCULPTURE STROLL REPAIRS; ENVELOPES - MULTIPLE DEPTS 2,633.97 07/14/2020 211452 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 739.20 07/14/2020 211453 DC DIESEL TEK INC 1999 MACK REPAIRS -COMPOST 2,159.71 07/14/2020 211454 DELEGARD TOOL CO BATTERY MAINTAINER, GLOVES - STREETS 316.32 07/14/2020 211455 DETLOFF, KRISTIN REFUND: CAMPGROUND RESERVATION - PARKS 70.00 07/14/2020 211456 DOG -ON -IT -PARKS DOG BAGS - PARKS 234.00 07/14/2020 211457 DPC INDUSTRIES INC SODIUM HYPO -WATER 2,748.96 07/14/2020 211458 DUESTERHOEFT, DEAN REFUND: SHELTER RESERVATION 7/19 - ROTARY PARK 45.00 07/14/2020 211459 DURA ART STONE MAIN STREET PLANTERS FOR 2020 RECONSTRUCTION 18,406.00 07/14/2020 211460 DYNA SYSTEMS REPAIR & MAINTENANCE SUPPLIES - MULTIPLE DEPTS 352.62 07/14/2020 211461 E2 ELECTRICAL SERVICES INC VARIOUS REPAIRS & SERVICES- MULTIPLE LOCATIONS 794.84 07/14/2020 211462 EARTHLY DELIGHTS LTD JUNE 2020 TAX SETTLEMENT 10,856.78 07/14/2020 211463 EATON CORPORATION BEST POWER SINGLE PHASE FERRUP - POLICE 4,193.00 07/14/2020 211464 ECOLAB PEST ELIMINATION 6/13 ONE SHOT SERVICE - REFUSE 160.31 07/14/2020 211465 EHLERS & ASSOCIATES INC TIF DISTRICT 4-21: 2ND HALF FEE 4,500.00 07/14/2020 211466 ENERGY ABSORPTION POSTS,ANCHORS- CAMPGROUND 175.60 07/14/2020 211467 FARM -RITE EQUIPMENT FORESTRY CUTTER RENTAL CONTRACT 3,849.41 07/14/2020 211468 FASTENAL COMPANY MISCELLANEOUS SUPPLIES & EQUIPMENT- MULTIPLE DEPTS 522.68 07/14/2020 211469 FENSKE'S STUMP REMOVAL CITY-WIDE TREE REMOVALS 22,725.00 07/14/2020 211470 FIELD, JACQUI REFUND: DRIVER EDUCATION -COMM ED 394.00 07/14/2020 211471 FINANCE & COMMERCE AIRPORT UTILITY CONSTRUCTION BIDS 255.89 07/14/2020 211472 FIRE SAFETY USA INC FIRE HOSE - FIRE DEPT 1,151.50 07/14/2020 211473 FIRST CHOICE FOOD & BEVERAGE SOLUTI COFFEE FOR HATS & CITY CENTER 344.00 07/14/2020 211474 FLOW MEASUREMENT & CONTROL COMPANY CERTIFICATIONS OF FLOW METERS- WWTP 1,590.00 07/14/2020 211475 FOSTER MECHANICAL HVAC REPAIRS 847.50 07/14/2020 211476 FR SECURE LLC FACT SYSTEM - 3 YR ENGAGEMENT 10,972.50 07/14/2020 211477 FRONTIER PRECISION INC REMOVABLE TIPS 12.70 07/14/2020 211478 FUZE LOGISTICS SERVICES USA INC FREIGHT FOR CREEKSIDE SOILS 2,605.00 07/14/2020 211479 GALCO INDUSTRIAL ELECTRONICS REPLACEMENT FILTERS - WWTP 258.90 07/14/2020 211480 GAVIN, JANSSEN & STABENOW, LTD JUNE SERVICES 3,300.00 07/14/2020 211481 GOODPOINTE TECHNOLOGY TRIENNIAL PAVEMENT CONDITION SURVEY - STREETS & TRAILS 14,800.00 07/14/2020 211482 GOPHER STATE FIRE EQUIPMENT CO. ABC RE -CHARGE - POLICE 114.00 07/14/2020 211483 GRAINGER MISC EQUIPMENT SUPPLIES- MULTIPLE DEPTS 852.77 07/14/2020 211484 GREEN EARTH LAWN CARE INC RESIDENTIAL LAWN MOWING 422.50 07/14/2020 211485 HACH COMPANY HACHINSTRUMENTANNUALFIELDSERVICEAGREEMENT -WWTP 16,878.69 07/14/2020 211486 HAMMOND, STEPHANIE REFUND: CAMPSITE 7/3-7/5 - PARKS 70.00 07/14/2020 211487 HANSON & VASEK CONSTRUCTION SIDEWALK REPAIR: 530 LINDEN AVE 725.00 07/14/2020 211488 HERC-U-LIFT ANN UAL CIVIC ARENA LIFT INSPECTION 156.36 07/14/2020 211489 HILLYARD/HUTCHINSON MISC CLEANING SUPPLIES 170.29 07/14/2020 211490 HIRSHFIELD'S INC PAINT FOR CIVIC ARENA 712.37 07/14/2020 211491 HJERPE CONTRACTING PVC PIPE FOR ARENA TURF 974.75 07/14/2020 211492 HOFF, RANDY FRESH FLOWER ARRANGEMENT 33.00 07/14/2020 211493 HUTCHINSON CHAMBER & TOURISM MAY 2020 LODGING TAX 3,150.89 07/14/2020 211494 HUTCHINSON CO-OP LP GAS, DIESEL- MULTIPLE DEPTS 7,118.75 07/14/2020 211495 HUTCHINSON FIRE DEPT RELIEF ASSN 2020 LOCAL FIRE PENSION CONTRIBUTION 37,618.00 07/14/2020 211496 HUTCHINSON HEALTH EMPLOYEE DRUG TESTING 588.00 07/14/2020 211497 HUTCHINSON HRA TIF: DANA & AARON EDMISTON 395.00 07/14/2020 211498 HUTCHINSON LEADER JUNE ADVERTISING - MULTIPLE DEPTS 1,908.64 07/14/2020 211499 HUTCHINSON WHOLESALE #1550 REPAIR & MAINTENANCE SUPPLIES - MULTIPLE DEPTS 458.38 07/14/2020 211500 HUTCHINSON WHOLESALE#1551 BATTERIES-CREEKSIDE 150.36 07/14/2020 211501 HUTCHINSON WHOLESALE #1552 REPAIR & MAINTENANCE SUPPLIES- PARKS 372.99 07/14/2020 211502 HUTTON, CHRIS REIMB: SAFETY FOOTWEAR - PARKS 150.00 07/14/2020 211503 I & S GROUP, INC. REC CENTER IMRPV - SERVICES THRU 5/31/20 2,500.00 07/14/2020 1211504 1 I.M.S. SHARPENING SERVICE 6/12 CATCH BASIN REPAIR -STREETS 2,450.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 6/23/20 - 7/14/20 .Check -Date ---- ---- Check ]Vendor-Nam-e Description Amount ------------ -------- ---------------------------------------------------------------------------------------------------------------------------------------------- - 07/14/2020 211505 INDUSTRIAL PNEUMATIC SYSTEMS FILTERS, COMPRESSOR OIL - WATER 1,136.38 07/14/2020 211506 INGSTAD BROADCASTING LIQUOR HUTCH RADIO ADVERTISING 1,338.50 07/14/2020 211507 INTERNATIONAL CODE COUNCIL INC 2020 BUILDING CODE UPDATES 1,162.08 07/14/2020 211508 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES: HATS 216.88 07/14/2020 211509 INTERSTATE POWER COMPANIES INC CREEKSIDE BAGGER EQUIPMENT PARTS 127.49 07/14/2020 211510 ISD#423 APR - JUNE 2020CLASSES - COMM ED 66.72 07/14/2020 211511 JACK'S UNIFORMS & EQUIPMENT UNIFORM PATCHES - POLICE 658.50 07/14/2020 211512 JAY MALONE MOTORS 2020 DODGE 1500 CREWCAB 4X4 - CREEKSIDE 25,215.00 07/14/2020 211513 JERGENS,ARLINE REFUND: FELLOWSHIP DINNER - SR CENTER 9.00 07/14/2020 211514 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 41,830.65 07/14/2020 211515 JOHNSTON, DARREON UB refund for account: 2-050-6850-7-03 73.94 07/14/2020 211516 KAHNKE BROTHERS NURSERY DEVELOPMENT TREES 787.50 07/14/2020 211517 KALSCHEUER, APRIL UB refund for account: 3-288-9370-5-02 15.79 07/14/2020 211518 KELLER, MATTHEW REIMB: LICENSING RENEWALS - WWTP 221.00 07/14/2020 211519 KERI'S CLEANING & HANDYMAN SERVICES JUNE CLEANING, EXTERIOR WINDOW CLEANING 3,063.34 07/14/2020 211520 KGB CORNERSTONE COMMONS LLC JUNE 2020 TAX SETTLEMENT 10,915.74 07/14/2020 211521 KOHLS SWEEPING SERVICE CREEKSIDE HAULING & PILING CONCRETE 2,729.64 07/14/2020 211522 L & P SUPPLY CO 61" SLIDER MOWER - PARKS 6,986.60 07/14/2020 211523 LANDSKAPINGS LANDSCAPE MAINTENANCE - MULTIPLE DEPTS 2,500.00 07/14/2020 211524 LARSON, JOY REFUND: 7/31 WATERPARK RENTAL 300.00 07/14/2020 211525 LIESTMAN, CALYN REIMB: DAILY BANK DEPOSITS - FINANCE 38.29 07/14/2020 211526 LINDER,JANE REFUND: FELLOWSHIP DINNER - SR CENTER 9.00 07/14/2020 211527 LITE ELECTRIC INC INSTALL NEW LED LIGHTS - REC CENTER PROJECT 8,839.00 07/14/2020 211528 LOCATORS & SUPPLIES REPAIR RADIO DETECTION -WATER 279.30 07/14/2020 211529 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 87,518.95 07/14/2020 211530 LOGIS NETWORK SERVICES THRU 5/16/20 8,090.00 07/14/2020 211531 M-RSIGN STREETS SIGNS 3,544.12 07/14/2020 211532 MADDEN GALANTER HANSEN LLP MAY LEGAL SERVICES 187.00 07/14/2020 211533 MAIERS, MATT REIMB: CELL PHONE SUPPLIES - HATS 135.96 07/14/2020 211534 MARCO TECHNOLOGIES, LLC MAY COST PER PRINT, DATA RENEWAL - VARIOUS DEPTS 2,013.03 07/14/2020 211535 MARCO TECHNOLOGIES, LLC 6/20 - 7/20'20 CITY PRINT CONTRACTS 2,030.50 07/14/2020 211536 MARTI N-MCALLISTE R PUBLIC SAFETYASSMT:TBERGUM- POLICE 550.00 07/14/2020 211537 MARTINSON, ANN REFUND: SHELTER RENTAL 8/1 - ELKS PARK 45.00 07/14/2020 211538 MATHESON TRI-GAS INC WWTP EQUIPMENT RENTAL 22.95 07/14/2020 211539 MCELFISH, JAN REFUND: NORTHWOODS SHELTER RESERVATION 45.00 07/14/2020 211540 MCLEOD COUNTY HHW STREETS GARBAGE PICKUP 55.00 07/14/2020 211541 MEDICA JULY MEDICAL INSURANCE 147,763.05 07/14/2020 211542 MEEKER MCLEOD SIBLEY CHS REFUND: CANCELLED RESERVATION - PARKS 45.00 07/14/2020 211543 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,253.84 07/14/2020 211544 MID-AMERICAN RESEARCH CHEMICAL HATS MAINTENANCE & EQUIPMENT PARTS 1,051.69 07/14/2020 211545 MID-MINNESOTA HOT MIX INC STREETS MAINTENANCE MATERIALS 3,146.58 07/14/2020 211546 MIDWEST PLAYSCAPES INC. SWING TOPRAIL- PARKS 886.16 07/14/2020 211547 MINI BIFF 5/25-6/21'20 RENTAL -SHOOTING RANGE 172.64 07/14/2020 211548 MINNESOTA ASA SOFTBALLS FOR FASTPITCH AND SLOW PITCH 7,942.00 07/14/2020 211549 MINNESOTA COUNTY ATTORNEY ASSN RECEIPT, INVENTORY, & RETURN FORMS -POLICE 44.00 07/14/2020 211550 MINNESOTA MUNICIPAL BEVERAGE ASSOC 7/2020-7/2021 ANNUAL DUES - LIQUOR HUTCH 5,700.00 07/14/2020 211551 MINNESOTA STATE BAR ASSOC MARC SEBORA MSBA MEMBERSHIP 7/1/20 - 6/30/21 390.00 07/14/2020 211552 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 11,591.32 07/14/2020 211553 MN DEPT OF TRANSPORTATION STATE FURNISHED MATERIALS T.H. 15/SOUTH GRADE RD PROJ 26,629.79 07/14/2020 211554 NERO ENGINEERING LLC MAY: HEADWORKS IMPROV PRELIM DESIGN - WWTP 19,496.00 07/14/2020 211555 NORTH CENTRAL BUS & EQUIPMENT INC LED BEACON & MINIBARS - PUBLIC WORKS 574.71 07/14/2020 211556 NORTH CENTRAL INTERNATIONAL STREETS EQUIPMENT REPAIRS SUPPLIES 88.14 07/14/2020 211557 NORTH CENTRAL LABORATORIES LAB SUPPLIES - WWTP 291.50 07/14/2020 211558 NORTHERN BUSINESS PRODUCTS OFFICE SUPPLIES- MULTIPLE DEPTS 1,111.33 07/14/2020 211559 NORTHERN STATES SUPPLY INC MISC REPAIR & MAINT SUPPLIES - HATS 387.95 07/14/2020 211560 NUVANTAGE EMPLOYEE RESOURCE 1/1-12/31'20SEMI-ANNUAL CONTRACT 2ND INSTALLMENT 2,122.20 07/14/2020 211561 NUVERA JULY PHONE SERVICES - VARIOUS DEPTS 6,457.17 07/14/2020 211562 OFFICE DEPOT MISC OFFICE SUPPLIES - MULTIPLEDEPTS 204.32 07/14/2020 211563 OLSON, RICHARD REFUND: CAMPGROUND RESERVATION 7/24-7/25 225.00 07/14/2020 211564 ON TRAX TRUCK REPAIR REPAIR TO STREETS EQUIPMENT 1,235.82 07/14/2020 211565 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 7,345.75 07/14/2020 211566 PAVEMENT RESOURCES 6/17 PAVEMENT REPAIR 3,500.00 07/14/2020 211567 PENMAC STAFFING SERVICES, INC. CREEKSIDE TEMP STAFFING 3,532.88 07/14/2020 211568 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 3,916.08 07/14/2020 1211569 1 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 37,178.52 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 6/23/20 - 7/14/20 .Check -Date ---- ---- Check ]Vendor-Nam-e Description Amount ------------ -------- ---------------------------------------------------------------------------------------------------------------------------------------------- - 07/14/2020 211570 POSTMASTER POSTAGE - UB BILLS 1,540.00 07/14/2020 211571 PREMIUM WATERS 5 GAL WATER BOTTLES - PARKS 63.49 07/14/2020 211572 PRIEVE LAWN CARE 6/29 TRIMMING & PULL WEEDS 293.91 07/14/2020 211573 RADWELL INTERNATIONAL PHOTOELECTRIC SENSOR KIT- CREEKSIDE BAGGER 644.85 07/14/2020 211574 RANDY'S BOBCAT SERVICE FILL MATERIAL - STORM WATER 1,867.50 07/14/2020 211575 RDO EQUIPMENT CO. EQUIPMENT PARTS FOR REFUSE LOADER 1,782.15 07/14/2020 211576 RED BULL DISTRIBUTION COMPANY, INC. COST OF GOODS SOLD - LIQUOR HUTCH 291.00 07/14/2020 211577 REINER ENTERPRISES INC FREIGHT FOR CREEKSIDE SOILS 8,363.73 07/14/2020 211578 ROSENBAUER MINNESOTA LLC YELLOW AUTO EJECT COVER- FIRE 40.00 07/14/2020 211579 ROYAL TIRE WWTP EQUIPMENT PARTS 320.00 07/14/2020 211580 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 535.74 07/14/2020 211581 SALOUM, ALEX UB refund for account: 3-680-8250-4-00 1.27 07/14/2020 211582 SAMIIS, TONY REFUND: CAMPSITE RESERVATION - PARKS 20.00 07/14/2020 211583 SCHILLER, MONICA REFUND: 12U GIRLS FASTPITCH 40.00 07/14/2020 211584 SCHUETTE, DONOVAN REIMB: SAFETY FOOTWEAR - STREETS 175.00 07/14/2020 211585 SHAW, KAREN MARCH 2O20 CLASSES - SR CENTER 90.00 07/14/2020 211586 SHORT-ELLIOT-HENDRICKSON, INC CONSULTING SERVICES - FAIRGROUNDS DITCH/MONTANA HAWK 5,208.05 07/14/2020 211587 SIMONSON LUMBER CO HINGES - PARKS 6.00 07/14/2020 211588 SITEONE LANDSCAPE SUPPLY LANDSCAPE MATERIALS- PARKS 2,542.05 07/14/2020 211589 SITZ, HAZEL REFUND: FELLOWSHIP DINNER - SR CENTER 9.00 07/14/2020 211590 SMSC ENTERPRISES ORGANICS RECYCLING MAY'20 3,492.03 07/14/2020 211591 SOLUS LED LED FULL CUTOFF WALLPACKS 396.00 07/14/2020 211592 SORENSEN'S SALES & RENTALS REPLACEMENT OF LIGHTS ON LIQUOR HUTCH SALES FLOOR 150.00 07/14/2020 211593 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 45,968.37 07/14/2020 211594 STANDARD PRINTING-N-MAILING JUNE UTILITY BILLS 674.15 07/14/2020 211595 STAPLES ADVANTAGE MISCOFFICESUPPLIES- MULTIPLEDEPTS 574.32 07/14/2020 211596 STREICH TRUCKING FREIGHT FOR CREEKSIDE SOILS 5,470.00 07/14/2020 211597 STREICHER'S VARIOUS OPERATING SUPPLIES - POLICE 1,234.24 07/14/2020 211598 SULLIVAN, RUTH REFUND: FELLOWSHIP DINNER - SR CENTER 9.00 07/14/2020 211599 SUMMER LAKES BEVERAGE LLC COST OF GOODS SOLD - LIQUOR HUTCH 1,710.00 07/14/2020 211600 SUN LIFE FINANCIAL JUNE DENTALCLAIMS/ADMIN FEES 3,217.80 07/14/2020 211601 SUPERIOR JETTING JET PROCESSING PIPES- WATER 3,443.75 07/14/2020 211602 TACTICAL SOLUTIONS CERTIFICATIONS OF RADAR & LASER UNITS - POLICE 288.00 07/14/2020 211603 TALKPOINT TECHNOLOGIES INC PLANTRONICS HEADSETS- POLICE 167.95 07/14/2020 211604 TASC AUGUST FLEX ADM. FEES 122.22 07/14/2020 211605 TEK MECHANICAL PVC BUSHING - PARKS 6.13 07/14/2020 211606 THOMSON REUTERS-WEST JUN WEST INFO CHARGES 1,163.13 07/14/2020 211607 TITAN MACHINERY EQUIPMENT REPAIRS & SUPPLIES- MULTIPLE DEPTS 4,116.93 07/14/2020 211608 TRI COUNTY WATER BOTTLED WATER DELIVERY 190.50 07/14/2020 211609 TWO-WAY COMMUNICATIONS INC CLEAN PAGER - FIRE DEPT 45.00 07/14/2020 211610 UNITED FARMERS COOP FUEL W/ B20 DYED 9,879.50 07/14/2020 211611 UNUM LIFE INSURANCE CO OF AMERICA JULY LIFE INSURANCE 2,725.45 07/14/2020 211612 URBAN SPRITE MEDIA CREEKSIDE SOILS RADIO SPOTS 5/25 - 6/1'20 750.00 07/14/2020 211613 USA BLUE BOOK PRE -FILTER & COVER; FOREHEAD THERMOMETER- WATER 171.27 07/14/2020 211614 VERIZON WIRELESS MAY 24 -JUN 23, 2020 PHONE SERVICES 3,732.85 07/14/2020 211615 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 33,016.70 07/14/2020 211616 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 737.30 07/14/2020 211617 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 5,818.17 07/14/2020 211618 WAHL REBUILD & REPAIR INC AIR BAG, HAUL TRAILER TO DC DIESEL-CREEKSIDE 351.29 07/14/2020 211619 WASTE MANAGEMENT OF WI -MN JUNE RESIDENTIAL & STORM WATER REFUSE 8,186.59 07/14/2020 211620 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 2,526.80 07/14/2020 211621 WELCOME NEIGHBOR NEW RESIDENTVISITS- LIQUOR HUTCH 60.00 07/14/2020 211622 WEST CENTRAL SHREDDING 3 SHREDDED CONSOLES - VARIOUS DEPTS 50.00 07/14/2020 211623 WILSON'S NURSERY INC TREES 397.65 07/14/2020 211624 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 1,147.70 07/14/2020 211625 WINE MERCHANTS INC COST OF GOODS SOLD -LIQUOR HUTCH 15,876.66 07/14/2020 211626 WINEBOW FINE WINE & SPIRITS COST OF GOODS SOLD- LIQUOR HUTCH 2,222.00 07/14/2020 211627 WM MUELLER & SONS 2020 STREETS REPAIRS 18,637.64 07/14/2020 211628 WOOD & RUE, PLLP 11/6/19 REVIEW LEGAL FILE 29.00 07/14/2020 211629 WUETHERICH DRAINAGE INC RIP RAP, HAULING, PLACE - STORM WATER 700.00 07/14/2020 211630 WW GOETSCH ASSOCIATES INC GRINDER PUMP W/ HANDLE - WWTP 4,985.00 07/14/2020 211631 ZIEGLER INC FILTERS FOR CREEKSIDE GRINDER 143.71 Total - Check Disbursements: $ 1,329,179.06 HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Assessment Hearing for TH15/Main Street Reconstruction & Overlay Department: PW/Eng LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Due to the ongoing pandemic and associated gathering concerns, City staff will not be administering the TH15/Main Street project Assessment Hearing at this time (will simply be opened and again recessed). Thus, adjacent property owners have been notified of this approach and hopefully will not be in attendance at this meeting. Looking forward, staff hopes to hold this hearing during the City Council's regular September 22nd meeting with assessed parties being formally notified beforehand. The requested council action will be to open the hearing and to recess this hearing until September 22, 2020, at 6:00 PM. BOARD ACTION REQUESTED: Open the hearing and to recess this hearing until September 22, 2020, at 6:00 PM. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Public Hearing for TH 7/22 & Montana Street Crossing Improvements (1-2/P20-0ili Department: PW/Eng LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff has been working closely with our technical consultant and MnDOT staff to finalize the design of the above referenced project and receive associated MnDOT approvals. At this point, City staff is working to administer the bid letting for this project during this fall due to traffic signal equipment fabrication lead times. This approach will allow for the timely construction of the HAWK crossing system sometime next spring or early summer. Following a brief project overview by City staff and potential public comments, staff will request that the City Council approve the finalization of project documents and future advertisement for bids. The anticipated bid opening date is Thursday, September 3rd (11:00 AM). BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 346,148.80 Total City Cost: $ 146,148.80 Funding Source: 2021 Bonding (& Additional MnDOT Fundingb Remaining Cost: $ 200,000.00 Funding Source: Federal Aid (TAP) & MnDOT TH Funds RESOLUTION NO. 15188 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 2/PROJECT NO. 20-02 WHEREAS, a resolution of the City Council adopted the 23rd day of June 2020, fixed a date for a Council Hearing on the following improvements: TH 7/22 & Montana St. Crossing Improvements: construction of a HAWK (high -intensity activated crosswalk beacon) traffic control device, concrete curbing, concrete pavement/walk, bituminous surfacing, street lighting, restoration and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the resolution adopted the 23rd day of June 2020. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Kent Exner is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 5. The City Council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of tax exempt bonds. Adopted by the Council this 14th day of July 2020. Mayor: Gary Forcier City Administrator: Matthew Jaunich RESOLUTION NO. 15189 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 2/PROJECT NO. 20-02 WHEREAS, the Director of Engineering/Public Works has prepared plans and specifications forthe following described improvement: TH 7/22 & Montana St. Crossing Improvements: construction of a HAWK (high -intensity activated crosswalk beacon) traffic control device, concrete curbing, concrete pavement/walk, bituminous surfacing, street lighting, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MI N N ESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering/Public Works shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the Director of Engineering/Public Works until 11:00 am on Thursday, September 3rd, 2020, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Director of Engineering/Public Works, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 6:00 pm on Tuesday, September 8th, 2020 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering/Public Works and accompanied bycash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 14th day of July 2020. Mayor: Gary Forcier City Administrator: Matt Jaunich HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Review of Water and Wastewater Long -Term Capital Improvement Plans Department: PW/Eng LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 20 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: At this point, City staff would like to review the long-term (20 years) Capital Improvement Plans (CIP) for the City's water treatment/distribution and wastewater treatment/collection systems. Thus, please see the attached worksheets that have been prepared by City staff while incorporating a multitude of considerations and objectives. Furthermore, please see relative excerpts from the recently finalized Wastewater Treatment Facility Assessment documents that were instrumental in preparing the CIP contents. Please realize that this exercise was necessary as the City continues to develop a water and wastewater utility rate study. However, this long-term approach is subject to change as 5-year CIP documents are prepared for these utilities on an annual basis. Also, City staff is currently working to prepare a presentation that will hopefully summarize this information as much as possible while providing key information to the City Council. At this point, we will be trying to provide this presentation to Council members prior to the meeting. Following a brief overview/presentation, City staff and our technical consultant will be available for any questions or clarifications at the upcoming meeting. BOARD ACTION REQUESTED: None Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Technical Memorandum Summary WWTF Facility Assessment 1III� City of Hutchinson Date: November 19, 2019 To: Tim Gratke Copy: Kent Exner From: Jennifer Svennes, Eric Meester Re: Facility Assessment Summary dJ N E RQ ENGINEERING A facility assessment of the Hutchinson WWTF was primarily completed to evaluate the condition of the original 1988 facility and also to provide budgetary costs for 20 year capital improvement planning for all WWTF equipment. The project scope did not include long-term facility planning efforts but did include a few energy conservation evaluations associated with replacing some of the less efficient original equipment. Technical memorandums for each WWTF building detailing the needs of each process were presented in this assessment. The general description and processes or major equipment included in each building are presented in Table 1. Table 1- WWTF Buildings Building Treatment processes/Equipment Included No. Description 20 Main Lift Station Grinders, Raw WW Pumps Flow Splitting, Metering, Fine Screens, 30 Headworks Grit Removal 40 Equalization Basin Basin Liner, EQ Pumps 45 MLSS Splitter Box EQ Flow Metering, Gates 50 Oxidation Ditches Rotors, Effluent Weirs, Aerator Mixers Anoxic Mixers, Aeration Blowers, 55 Membrane Diffusers, Membrane Cassettes, Bioreactor Pumps, Scour Blowers, Chemicals 60 Final Clarifiers RAS Pumps, WAS Pumps, Clarifier Drives, Covers 80 Disinfection UV Lights, Channel Gates Belt Conveyor, Screw Conveyor, Belt Press Thickeners, Sludge Pumps, 90 Solids Handling Aerobic Digesters (blowers & coarse bubble diffusers), Polymer Feed Facility Assessment Summary Technical Memorandum City of Hutchinson GENERAL SUMMARY A general theme of this facility assessment is the need to address the age and condition of the original 1988 WWTF equipment and processes. Apart from Building 55-MBR, the buildings and a majority of the processes within those buildings were installed in 1988. It is extraordinarily commendable to the City's WWTF staff over the past 30+ years that the original plant has successfully treated the wastewater and met permit limits. However, as can be seen by walking through these 1988 structures, the typical 20 year life -cycle has been far surpassed and the equipment is starting to fail at higher rates. Nero cannot stress enough the importance of implementing improvements at the headworks building (1330) and replacing the SCADA system. The impact of the poorly operating screening and grit removal processes are observed throughout the facility. In 2016 we started a grit study at the headworks but was halted about half way through because the evaluation clearly showed poor grit removal was a big issue that couldn't easily be fixed with the current infrastructure. Nothing has really happened with the headworks since and thus grit continues to migrate to downstream processes, causing unnecessary wear - and -tear on equipment and buildup of grit in virtually every basin/tank at the WWTF. Additionally, without significant improvements to the screening and grit removal processes, improvements or equipment replacement performed downstream of the headworks will continue to see unnecessary wear and tear causing premature failures, especially with the higher priced membranes. Even though the SCADA system was not part of our evaluation, the impact of the SCADA failures is seen throughout the facility and processes. The existing proprietary SCADA system is severely obsolete and failing at an aggressive rate, causing plant and equipment breakdowns. Nero and the staff are concerned with the increasing potential for a catastrophic failure of the proprietary and obsolete system that could impact the facility's ability to meet its permit limits. A recent failure caused a reportable overflow to the MPCA. We cannot stress enough how important it is for the City to address the SCADA system bottleneck and proprietary stranglehold. The processes and equipment at the Main Lift Station (1320), MBR Building (1355), Final Clarifiers (1360) and Disinfection (1380) are largely replace -in -kind assessments. At the time of equipment replacement, it may be worth evaluating equipment improvements (i.e. higher efficiency, easier maintenance, etc.), but in general the equipment will be replaced in -kind. The solids processing building is also in extreme need of work, particularly with the aeration system. The volatile solids destruction is very low in this process due to inefficient aeration equipment. The original diffusers from 1988 are still in place and should have been replaced over twenty years ago. Process improvements to separate the mixing and aeration in this building would provide a much improved and more efficient system with an estimated 6 year payback on the improvements versus replacing the aeration system in -kind. Currently, an oxidation ditch project is underway to implement process improvements to take advantage of energy savings while replacing failing equipment. The process improvements were significantly less expensive than replacing in -kind while also costing less to operate and maintain. These improvements are planned to be implemented this fall. The goal for the current project is to install the City -owned aerator/mixer equipment (which previously was installed on the sidewalls of the ditches) in place of four existing rotors. The City will be able to realize operational improvements with this project until the final design of the ditch system can be constructed, which generally is expected to include the installation of two new aerator/mixers in the final two rotor locations as well as the addition of VFDs and more current and flexible controls for all of the aerators and mixers. Project No. 10020 2 Nero Engineering November 19, 2019 Facility Assessment Summary Technical Memorandum City of Hutchinson This Facility Assessment did not address potential impacts with the upcoming new permit. Based upon preliminary correspondence from the MPCA, lower phosphorus limits and a bicarbonate limit will likely have significant impacts on the current processes and if/when the proposed limits become part of the discharge permit, further evaluations at the WWTF will need to be done to be able to meet the new limits. None of the recommendations made from the Facility Assessment will have a negative or unjustified impact on both current and future permit limits. CONDITION ASSESSMENTS AND COST ESTIMATES The condition of each process and piece of equipment was established based on the article "To Keep or Not to Keep? Knowing when to replace equipment is half the battle" by Matasci, Merrill, Ratte and Souza from the October 2004 Water Environment & Technology journal. This method was developed by the National Asset Management Steering Group, which specializes in developing asset management tools for the water and wastewater infrastructure and is based on empirical and historical data from large water and wastewater utilities. This method was chosen because it is very detailed and it establishes a remaining useful life for a piece of equipment based upon standard expected life, adjustments for actual age, use, condition and equipment performance. To further prioritize project needs, the operations importance for each piece of equipment was determined so items of similar condition could be ranked accordingly. Once the condition assessment and service life evaluations were completed and the WWTF's needs were prioritized, cost estimates were developed for equipment replacements and process improvements. The Equipment Summary & Costing TM explains the condition assessment and costing methodology in detail. The cost summary sorted in various ways accompanied that memo. For the purposes of capital improvements planning, the project needs identified in the facility assessment were organized over a 20 year period. Maintaining an even annual budget was a goal in organizing the projects; however, there are certain projects that cannot be divided easily. Also because of the urgency of projects that are needed to address items near failure, these costs could not be pushed to later years. In addition to the items evaluated in the WWTF facility assessment, costs for the planned lift station rehabilitations as well as SCADA improvements were included. Nero Engineering prepared the lift station costs in a previous study and has been partially involved with the SCADA improvements planning which is why these two items are included. Budget items not included in the tables presented with this memo are vehicles, collection systems, and possibly other items that were not in Nero's scope to evaluate. Attachment 1: WWTF 20 Year Project Needs— Present Values shows the current values of projects included in each year based upon our facility assessment. A summary of the present values of the total annual project needs is shown in Table 2 and depicted in Figure 1. To clarify again, the values shown in Table 2 only include project costs developed in the facility assessment, lift station rehabilitations and SCADA improvements forthe WWTF processes and equipment. Smaller equipment items were included in the Contract Repair & Maintenance budget, as shown in Attachment 1. Other wastewater budget items, such as vehicles, collection systems, forcemain and other WWTF capital costs, are not included with this summary. It should be noted as well, that the 20-year CIP plan presented in Table 2 and Figure 1 are for budgeting and the actual timeframe that some of the equipment may need to be replaced may vary. As an example, the membrane replacement is targeting a 15-year life cycle (2033 project), but if excessive grit accumulation causes premature failure, the membranes may need to be replaced sooner. Furthermore, following a 20 year project schedule and associated budgets will provide the basis for extending the life of the existing facility for many decades to follow. To the contrary, choosing to neglect necessary improvements and routine maintenance could potentially mean a failed system, which can mean $10-12m per mgd (or about $50-60m) to replace or significantly rehab the WWTF. Project No. 10020 Nero Engineering November 19, 2019 Facility Assessment Summary City of Hutchinson Technical Memorandum Table 2- Present Value Project Needs Summary Year Total Project Needs (PV) 2021 $2,594,000 2022 $1,504,000 2023 $1,818,100 2024 $801,400 2025 $777,800 2026 $956,850 2027 $902,350 2028 $543,400 2029 $400,000 2030 $490,000 2031 $491,200 2032 $330,000 2033 $1,200,000 2034 $442,100 2035 $200,000 2036 $395,600 2037 $379,900 2038 $300,000 2039 $150,000 2040 $329,400 Present Value Total $15,006,100 Project No. 10020 Nero Engineering November 19, 2019 Facility Assessment Summary Technical Memorandum City of Hutchinson $3,000,000 WWTF 20-Year CIP Process & Equipment Costs 2021-2040 Figure 1- WWTF Present Value Annual Process & Equipment Costs Project No. 10020 5 Nero Engineering November 19, 2019 Attachment 1: WWTF 20 Year Project Needs Contract Repair & Maintenace SCADA Projects Lift Station Project Roofing Projects New Process Project Year Building Project Description Total Cost 2021 30-Headworks Metering & Forcemain Modifications (including HATS) $749,000 2021 30-Headworks RWW Splitterbox $372,300 2021 30-Headworks Instrumentation, PLC's & SCADA $134,200 2021 30-Headworks Electrical $80,500 2021 30-Headworks Mechanicals $40,300 2021 50-Oxidation Ditches Aire-02 Upgrade $292,500 2021 50-Oxidation Ditches Process Optimizations Improvements $216,900 2021 90-Solids Handling Digester Mixing System $166,500 2021 90-Solids Handling Telescoping Valves for Decanting $30,000 2021 90-Solids Handling DO Control $15,000 2021 90-Solids Handling Blower 2 $146,800 21 WWTF SCADA SCADA Upgrades $200,000 r2021 1Hwy15LS Lift Station Rehab $150,000 Total Year 2021 $2,594,000 2022 30-Headworks Screening Improvements $1,024,000 2022 30-Headworks Instrumentation, PLC's & SCADA $134,200 2022 30-Headworks Electrical $80,500 2022 30-Headworks Mechanicals $40,300 2022 IWWTF SCADA PLC Upgrades $100,000 2022 JOur Savior's LS Lift Station Rehab $125,000 Total Year 2022 $1,504,000 2023 30-Headworks Grit Modifications $772,800 2023 30-Headworks Instrumentation, PLC's & SCADA $134,200 2023 30-Headworks Electrical $80,500 2023 30-Headworks Mechanicals $40,300 2023 30-Headworks Bldg 30 Roof Replacement $70,700 2023 45-MLSS Splitter EQ Basin Flow Meter $43,500 2023 40-EQ Basin EQ Pumps $232,500 2023 WWTF SCADA PLC Upgrades $100,000 2023 Campbell Lane LS Lift Station Rehab $100,000 2023 100- Dryer Building Bldg 100 Roof Replacement $43,600 2023 IMiscellaneous WW receiving/bulk water station $200,000 Total Year 2023 $1,818,100 2024 55-MBR Fine Bubble Diffuser System $110,200 2024 55-MBR Perm/BP Pump 1 $89,600 2024 90-Solids Handling Blower 1 $146,800 2024 90-Solids Handling Thickener Feed Pump 1 $39,800 2024 90- Solids Handling lMechanicals 1 $150,000 2024 JWWTF SCADA JSoftware Upgrades 1 $150,000 Attachment 1 Page 1 2024 IMcDonalds LS ILift Station Rehab $115,000 Total Year 2024 9801.400 Attachment 1 Page 2 2025 40-EQ Basin Liner $69,000 2025 60-Final Clarifiers RAS Pump 1 $56,400 2025 60-Final Clarifiers RAS Pump 2 $56,400 2025 60-Final Clarifiers RAS Pump 3 $56,400 2025 90-Solids Handling Belt Press Thickener 2 $424,600 2025 1 Elementary LS Lift Station Rehab $115,000 Total Year 2025 $777,800 2026 60-Final Clarifiers Clarifier Drive 1 $339,500 2026 60-Final Clarifiers Clarifier Cover 1 $342,250 2026 Stoney Point LS Lift Station Rehab $135,000 2026 50-Oxidation Ditches Bldg 50 Roof Replacement $113,600 2026 60-Final Clarifiers Bldg 60 Roof Replacement $8,300 2026 80-Disinfection Bldg 80 Roof Replacement $18,200 Total Year 2026 $956,850 2027 20-Main Lift Station Grinders $105,600 2027 60-Final Clarifiers Clarifier Drive 2 $339,500 2027 60-Final Clarifiers Clarifier Cover 2 $342,250 2027 5th Avenue LS Lift Station Rehab $115,000 Total Year 2027 1 $902,350 2028 60-Final Clarifiers WAS Pump 1 $39,600 2028 60-Final Clarifiers WAS Pump 2 $39,600 2028 60-Final Clarifiers WAS Pump 3 $39,600 2028 90-Solids Handling Belt Press Thickener 1 $424,600 Total Year 2028 1 $543,400 2029 55-MBR Aeration Blower 3 $158,800 2029 55-MBR Perm/BP Pump 2 $89,600 2029 20-Main Lift Station Raw WW Pump 3 $75,800 2029 20-Main Lift Station 1 Raw WW Pump 4 1 $75,800 Total Year 2029 1 $400,000 2030 55-MBR ML Recirc Pump 1 $71,800 2030 55-MBR ML Recirc Pump 3 $71,800 2030 20-Main Lift Station Bldg 20 Roof Replacement $45,800 2030 10- Admin Building Bldg 10 Roof Replacement $103,900 2030 90-Solids Handling I Bldg 90 Roof Replacement $46,700 Total Year 2030 $340,000 2031 55-MBR Scour Blower 1 $145,600 2031 55-MBR Scour Blower 2 $145,600 2031 55-MBR Mechanicals $200,000 Total Year 2031 $491,200 Attachment 1 Page 3 2032 IWWTF SCADA Software Upgrades $200,000 2032 IWWTF Mechanicals Mechanical Systems (B20, B50, B60 & B80) $130,000 Total Year 2032 $330,000 2033 55-MBR Membrane Cassette 1 $106,600 2033 55-MBR Membrane Cassette 2 $106,600 2033 55-MBR Membrane Cassette 3 $106,600 2033 55-MBR Membrane Cassette 4 $106,600 2033 55-MBR Membrane Cassette 5 $106,600 2033 55-MBR Membrane Cassette 6 $106,600 2033 55-MBR Membrane Cassette 7 $106,600 2033 55-MBR Membrane Cassette 8 $106,600 33 55-MBR Membrane Cassette 9 (Additional) $173,600 r2033 55-MBR Membrane Cassette 10 (Additional) $173,600 Total Year 2033 $1,200,000 2034 20-Main Lift Station Raw WW Pump 2 $75,800 2034 45-MLSS Splitter Gates $46,500 2034 55-MBR ML Recirc Pump 2 $71,800 2034 80-Disinfection UV Bank 1A $62,000 2034 80-Disinfection UV Bank 1B $62,000 2034 80-Disinfection UV Bank 2A $62,000 2034 80-Disinfection UV Bank 2B $62,000 Total Year 2034 $442,100 2035 IWWTF SCADA I SCADA Upgrades 1 $200,000 Total Year 2035 1 $200,000 2036 20-Main Lift Station Raw WW Pump 1 $75,800 2036 90-Solids Handling Digester Mixing System $169,800 2036 Lift Stations Lift Station Rehab $150,000 Total Year 2036 $395,600 2037 55-MBR Aeration Blower 1 $158,800 2037 55-MBR Bldg 55 Roof Replacement $71,100 2037 Lift Stations Lift Station Rehab $150,000 Total Year 2037 $379,900 2038 10- Admin Building Mechanicals $150,000 2038 Lift Stations Lift Station Rehab $150,000 Total Year 2038 $300,000 12039 1 Lift Stations Lift Station Rehab 1 $150,0001 Total Year 2039 1 9150.000 Attachment 1 Page 4 2040 WWTF SCADA Software Upgrades $200,000 2040 90-Solids Handling Thickener Feed Pump 2 $39,800 2040 55-MBR Perm/BP Pump 3 $89,600 Total Year 2040 $329,400 20 Year Total $14,856,100 Contract Repair & Maintenance 2021 20-Main Lift Station Valve actuator- Forcemain 1 $7,000 2024 55-MBR Ferric Chloride Feed Pump 1 $8,200 2024 55-MBR Ferric Chloride Feed Pump 2 $8,200 2024 55-MBR Ferric Chloride Feed Pump 4 $8,200 2024 55-MBR Ferric Chloride Feed Pump 3 $8,200 2025 60-Final Clarifiers Sump Pump $5,800 2025 60-Final Clarifiers Air Compressor $4,400 2026 55-MBR Citric Acid 1 $9,800 2026 55-MBR Citric Acid 2 $9,800 2028 90-Solids Handling Air Compressor $4,600 2028 55-MBR Sodium Hypochlorite Pump 1 $9,800 2029 55-MBR Sodium Hypochlorite Pump 2 $9,800 2029 55-MBR Anoxic Mixer 1 $31,000 2029 55-MBR Anoxic Mixer 2 $31,000 2029 20-Main Lift Station Hydraulic Pack $37,700 2030 90-Solids Handling Thickened Transfer Pump 1 $38,100 2030 55-MBR Dehumidifier $4,600 2031 90-Solids Handling Thickened Transfer Pump 2 $38,100 2031 90-Solids Handling Belt Conveyor $41,700 2031 90-Solids Handling Screw Conveyor $35,000 2032 55-MBR ML Waste Pump 1 $29,000 2032 55-MBR ML Waste Pump 2 $29,000 2032 55-MBR W3 Pump 1 $11,700 2032 55-MBR W3 Pump 2 $11,700 2032 55-MBR W3 Pump 3 $8,000 2032 55-MBR W3 Pump 4 $8,000 2032 55-MBR Air Compressor 1 $8,000 2032 55-MBR Air Compressor 2 $8,000 2033 60-Final Clarifiers Scum Pump $10,200 2033 90-Solids Handling Polymer Blend System $22,000 2034 55-MBR ML Foam Mixer $31,000 2035 80-Disinfection MBRE Gate $13,200 2038 55-MBR Membrane Tank Mixers $6,600 2039 20-Main Lift Station Valve actuator- Forcemain 2 $7,000 CR&M Total $554,400 2020 Projects 2020 WWTF SCADA SCADA Upgrades $100,000 2020 80-Disinfection UV Channel Influent Gate 1 $22,400 2020 80-Disinfection UV Channel Influent Gate 1 $22,400 Total Year 2020 $144,800 Attachment 1 Page 5 Notes uaon review of Facilitv Assessment Summary Redacement: Attachment 1 o Three major projects are of immediate concern and force the issue of having to frontload the near term years of the CIP due to their probable detrimental impact to WW operations are the SCADA system replacement, preliminary treatment & equalization basin system improvements, and digester aeration & mixing rehabilitation. o The SCADA system hardware is proprietary, past obsolescence, failing regularly, and costing the plant monetarily as well as hindering its performance and efficiency. Each day this system remains uncorrected leaves the plant treatment processes in peril. o Without significant changes to the flow splitting and conditioning of wastewater as it enters the facility, all efforts to improve treatment processes downstream of preliminary treatment would be in vain. o The biosolids aerobic digester aeration system was modified years ago and is very inefficient. A separation of aeration and mixing processes in the digesters will reap huge energy savings as well as many operational benefits. The earlier this system can be optimized, the sooner the energy savings provide payback on the project. o Some repair/replacement items make more sense to be performed together in the same year for economies of scale, or because they just go hand in hand with each other. (Rehab each clarifier entirely in one year; replace the rake mechanism while the dome is being replaced or replacing all MBR cassette modules at once) The same goes for replacing blowers at the same time as the distribution system and diffusers. (Digester or MBR aeration systems) o Along with the above mentioned, other synergies should be taken advantage of and expenses planned for in advance for instances where a fair sum will be needed to remove accumulated grit and debris from basins and tanks when aeration distribution equipment is replaced or modified. o The MBR Scour blowers are actually due for stage maintenance after every 5 years of service, thus they are in need of overhaul. These are slated for tentative replacement in 2031. However, it would be advantageous to upsize the blowers possibly as soon as 2020 for a fraction of the cost planned in 2031 and also realize the energy efficiency of only having to run one blower for all settings ten years earlier than the planned replacement. o The facility assessment doesn't account for any structure preservation measures or maintenance, such as sealing and preserving concrete vessels or facility building structures or interior envelopes. o As mentioned in the summary, vehicle and portable equipment replacements are not noted in the Attachment. Neither are other worthy projects such as the wastewater receiving/bulk water reuse station construction. These additional items, when factored into the 20-yr CIP bump the average annual necessary funding above the $1M mark to more around $1.25M. o Not all of these efforts will be necessary at the anticipated timeframe. However, this is a plan to provide the means in which a WW plant with a design life of 20 years can be expected to last at least 50-60 years. By planning to spend $20-25M over the next 20 years saves spending many times that for a totally new facility. Tim Gratke Wastewater Supervisor City of Hutchinson Wastewater Department 20-Year Capital Improvement Plan .. - .. ------------------- Infraz[ructure improvemenK 94,095 89,249 15,10 305,000 305,000 305,000 305,000 305,000 305,00o 305,000 305,000 305,.0 305,000 305,000 305,000 305,000 305,.0 305,.0 305,000 305,000 5,444,244 Collection zYstem infrx[ructure 80,000 80,000 80,000 85,000 85,.0 85,.0 85,.0 85,000 90,000 90,000 90,000 90,000 90,000 95,000 95,000 95,000 95,000 95,000 10on. 100,00o TOTAL BY YEAR $2,832,2A9 $1,-,037 $1,974,000 $1,591A00 $1,19B,600 1 $1,34fi,850 $1,292,350 $1,019,68s $1,995,Om $999,545 $98B,B04 $B20,000 $1,641,536 $893,587 $1,172,- $945,205 $BT9,900 $750,m0 $555,000 $930,39fi $25,034,549 (Average cost/Year) 1 $1,251,727 City of Hutchinson Water Department 20-Year Capital Improvement Plan --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- Water/Wastewater Utility Long -Term Capital Improvement Plans & WWTF Assessment Summary Hutchinson Public Works City 0 Kent Exner VPV Levin Tim e t*4*� Eric Levine Nero Engineering Eric Meester Jennifer Svennes Water Plant Primary Projects City of _ 7 • 2021: WTP SCADA PLC, Hardware and Software Upgrades (2040 also) • 2022: Century Water Tower Coatings Rehabilitation (2029 also) • 2023-2024: Water Meter Replacements • 2025: RO Membrane Replacements (2031 & 2037 also) • 2030: Well #9 Construction • 2032: WTP Roof & HVAC Rehabilitations • 2033: South Park Water Tower Coatings Rehabilitation • 2035: Water Meter Transmitter Replacements • 2036: Golf Course Water Tower Coatings Rehabilitation • 2038: Ammonia Analyzer Replacement Wastewater Treatment Primary Projects City of _ 7 • 2020-2023: WWTF SCADA PLC, Hardware and Software Upgrades (Critical) • 2020-2023: Preliminary Treatment Redesign & EQ System Modification • 2021: Biosolids Digester Rehabilitation/Separation of Aeration & Mixing • 2021: East Oxidation Ditch Additional AireO2s and Process Optimization • 2021-2027: Lift Station Rehabilitation/Standardization and Controls Upgrades • 2024: MBR Aeration Basin Fine Bubble Diffuser System Replacement • 2025: Belt Press Thickener #2 Overhaul or Replacement • 2025-2027: Final Clarifier Domes, Rake Drives, and RAS Pumps and Piping Rehab. • 2028: Belt Press Thickener #1 Overhaul or Replacement Wastewater Treatment Primary Projects City of _ 7 • 2029: West Oxidation Ditch Rotor Replacement w/AireO2 Tritons • 2031: MBR Scour Blower & HVAC Replacements • 2032: SCADA Hardware and Software Updates • 2033: MBR Module Replacement and Additional Cassettes • 2034: UV Disinfection System Replacement • 2036-2047: Conduct Remote Lift Station Rehabilitations • 2040: SCADA Hardware and Software Updates Facility Assessment Goals • Detail and tabulate equipment throughout the facility • Assess the age & condition of each piece of equipment • Determine the remaining service life of equipment • Develop replacement cost opinions • Prioritize equipment replacements or improvements w/WWTF staff • Attempt to balance the prioritization of projects with the annual budget Condition Assessment Methodolgy • Graded equipment condition and considered operations importance for prioritization Condition Assessment Grades (from "To Keep or Not to Keep" by Matasci, Merrill, Ratte and Souza) Grade Condition Description 1 Excellent Basically sound or new equipment requiring no work. 2 Good Acceptable condition. Minor wear. Requires little work. 3 Fair Showing wear but functionally sound. Rehabilitation required within 5 years to avoid progression to grade 4. 4 Poor Functions but only with a high degree of maintenance. Major work required. 5 Awful Asset has failed or will fail imminently. Equipment Breakdown by Condition • Most equipment with grades 3-5 from original 1988 facility • Most equipment with grades 1-2 from 2008 MBR expansion Equipment breakdown by Condition Grade Grade Condition of Equipment No. 1 Excellent 15 (13%) 2 Good 27(23%) 3 Fair 35 (30%) 4 Poor 23(20%) 5 Awful 17 (14%) Service Life Evaluation • Expected life based on typical life expectancy of each type of equipment & utilization • Utilization rate correlated to a Base Life Multiplier • Life expectancy also based upon the condition assessment Base Life Multiplier based upon Utilization Utilization Rate Multiplier 17 1.2 25 1.17 33 1.13 50 1.08 67 1.03 75 1.02 100 1 Condition Grade Adjustment Factor Condition Grade Life Adjustment Factor 1 1 2 0.95 3 0.80 4 0.62 5 0.60 $3,000,000 $2saa,0aa $1,500,000 $u-,- 5500,000 $0 W WTF 20-Year CIP Process & Equipment Costs 2021-2040 2021 2022 2023 2024 2025 2026 2027 202E 2029 2030 2031 2032 2033 2034 2035 2036 2037 1 1 2038 2039 I 2040 Hutchinson WWTF Process Flow Diagram city,4 7P Gw-7 FLOW EauAHZATION BOLD EO BASIN J FROM COLLECT ON SYSTEM //� BUILDING 50 Bull fllNf. AO (� O%IOATION DITCHES � uV DISINFECTION BUILDING 20 `�' MAIN LIF STATION � � _ - ❑0❑ G f CROW BuII OINC 30 RIVER FROM HEAOWORKS BMI LING 45 COLLECTION MI c. cw ITTFRBO%� SYSTEM rwx Eull DING 6O EJILOI NU 25 (� FINdI CI ARIFIFRS HATS IIFT i BUILDING ss :J_AS14N m Q� K Z ~ ¢ w Z D: o v� a z g d w G O G J Z Q� z Z V1 ¢ a V_ LL Q L� � Building 20 —Main Lift Station Building Item No. Units Install Year Current Age Expected Lifel Utilization (%)z Expected Adjusted Life, Remaining Useful Life, Grinders 2 2006 13 20 50 24 7 Hydraulic Pack 2 2006 13 20 50 24 9 Raw WW Pump 1 1 2018 1 20 25 23 22 20-Main Lift Station Raw WW Pump 2 1 2016 3 20 25 23 20 Raw WW Pump 1 2004 15 20 25 28 12 Raw WW Pump 1 2004 15 20 25 28 12 Valve actuator- Forcemain 1 1 1988 31 20 50 39 0 Valve actuator- Forcemain 2 1 2016 3 20 17 24 21 Building Item Physical Remaining Equipment Cost Estimated Contingency Engineering Total Replacement Condition Useful Life Replacement Installation Cost Cost Grinders 4 7 $80,600 $11,200 5% 10% $105,600 Hydraulic Pack 3 9 $23,000 $11,200 5% 5% $37,700 Raw WW Pumps 1 22 $57,500 $5,600 10% 10% $75,800 Raw WW Pumps 1 20 $57,500 $5,600 10% 10% $75,800 20-Main Lift Raw WW Pumps 2 12 $57,500 $5,600 10% 10% $75,800 Raw WW Pumps 2 12 $57,500 $5,600 10% 10% $75,800 Station Valve actuator- Forcemain 1 4 0 $4,400 $1,900 5% 5% $7,000 Valve actuator- Forcemain 2 1 21 $4,400 $1,900 5% 5% $7,000 Wetwell Grit Removal (Annually) $60,000 5% 5% $66,000 Bldg 20 Roof Replacement $41,600 5% 5% $45,800 Mechanicals $50,000 Building 30 - Headworks Table 1: Building 30- Headworks Estimated Project Costs Process Improvement Estimated Construction Cost Contingency Engineering Estimated Project Costs Metering & Forcemain Modifications $460,000 25% 15% $644,000 HATS Forcemain Improvements $75,000 25% 15% $105,000 Screening Improvements $731,400 25% 15% $1,024,000 Grit Modifications $552,000 25% 15% $772,800 RWW Splitterbox $265,880 25% 15% $372,300 Instrumentation, PLC's & SCADA $287,500 25% 15% $402,500 Electrical $172,500 25% 15% $241,500 Mechanicals $86,250 25% 15% $120,800 Bldg 30 Grit Removal $28,750 25% 15% $40,300 Bldg 30 Roof Replacement $57,500 25% 15% $70,700 $3,793,900 Note: Equipment evaluation was not conducted on the headworks since most all of the equipment needs to be redesigned and not replaced. Most of the 2008 equipment will remain and is in good condition. Buildings 40 & 45 — EQ Basin & MLSS Splitter � � Adjusted Remaining Useful Building Item No. Units Install Year Current Age Expected Life, Utilization (%), Expected Life, Life4 40-EQ Basin Liner 1 2000 19 20 100 26 6 EQ Pumps 3 1988 31 20 100 36 3 45-MLSS Splitter EQ Basin Flow Meter 1 1988 31 20 100 36 3 Gates 4 2016 3 20 100 20 17 Physical Remaining Equipment Cost Estimated Total Replacement Building Item Condition Useful Life Replacement Installation Cost Contingency Engineering Cost 40-EQ Basin Liner 3 6 $57,500 10% 10% $69,000 EQ Pumps 4 6 $82,800 $96,000 15% 15% $232,500 45-MLSS Splitter EQ Basin Flow Meter 5 3 $5,800 $27,600 15% 15% $43,500 Gates 1 17 $25,600 $14,800 5% 10% $46,500 Building 50 —Oxidation Ditch (Equipment Evaluation) city of7 k & Adjusted Remaining Building Item No. Units Install Year Current Age Expected Life, Utilization (Y)Z Expected Life, Useful Life, Rotor 1 1988 31 20 17 43 7 Rotor 1 1988 31 20 17 43 7 Rotor 1 1988 31 20 100 36 3 Rotor 1 1988 31 20 17 43 7 Rotor 1 1988 31 20 17 43 7 Rotor 1 —2012 7 20 17 25 11 Rotor 1 1988 31 20 17 43 7 Rotor 1 1988 31 20 100 36 3 Rotor 1 1988 31 20 17 43 7 50-Oxidation Ditches Rotor 1 1988 31 20 17 43 7 Rotor 1 1988 31 20 100 36 3 Rotor 1 1988 31 20 17 43 7 Drive Assembly (Typ) 1988 31 20 17 43 8 Splash Plate/Steel(Typ) 24 1988 31 20 17 43 8 Effluent Weirs 2 2019 0 20 100 20 20 Actuator 1988 31 20 100 36 3 Aerator Mixers 4 2002 17 20 100 25 5 Blower 4 2002 17 20 100 25 5 FeCl Heat Trace 1 2008 11 10 0 Building 50 —Oxidation Ditch (Cost Evaluation) Building Item Rotor Rotor Rotor Rotor Rotor Rotor Rotor Rotor Rotor Rotor Rotor 50-Oxidation Rotor Ditches Drive Assembly (Typ) Splash Plate/Steel(Typ) Effluent Weirs Actuator Aerator Mixers Blower FeCI Heat Trace Ditch Grit Removal Aire-02 Upgrade Process Optimizations Improvements Bldg 50 Roof Replacement Mechanicals Equipment Estimated Total Remaining Cost Installation Replacement No. Units Install Year Physical Condition Useful Life Replacement Cost Contingency Engineering Cost 1 1988 5 7 1 1988 5 7 1 1988 5 3 1 1988 5 7 1 1988 5 7 1 '-2012 5 11 1 1988 5 7 1 1988 5 3 1 1988 5 7 1 1988 5 7 1 1988 5 3 1 1988 5 7 1988 4 8 24 1988 4 8 1 2019 1 20 $0 $0 10% 10% $0 1988 4 3 4 2006 4 5 4 5 5 1 2008 5 0 10% 10% 1 $69,000 $69,000 1 5 $149,500 $75,500 15% 15% $292,500 1 5 $138,000 $28,800 15% 15% $216,900 1 $103,200 5% 5% $113,600 1 $30,000 Building 55 — M B R (Equipment Evaluation) Building Item No. Units Install Year Current Age Expected Life, Utilization (%)z Adjusted Expected Life3 Remaining Useful Life, Anoxic Mixer 1 1 2008 11 20 100 22 9 Anoxic Mixer 2 1 2008 11 20 100 22 9 ML Foam Mixer 1 2016 3 20 100 20 14 Membrane Tank Mixers 2 2018 1 20 100 20 19 ML Waste Pump 1 1 2008 11 20 50 23 12 ML Waste Pump 2 1 2008 11 20 50 23 12 Membrane Cassette 1 1 2018 1 15 100 15 14 Membrane Cassette 2 1 2018 1 15 100 15 14 Membrane Cassette 3 1 2018 1 15 100 15 14 Membrane Cassette 4 1 2018 1 15 100 15 14 Membrane Cassette 5 1 2018 1 15 100 15 14 Membrane Cassette 6 1 2018 1 15 100 15 14 Membrane Cassette 7 1 2018 1 15 100 15 14 Membrane Cassette 8 1 2018 1 15 100 15 14 ML Recirc Pump 1 1 2008 11 20 100 22 30 ML Recirc Pump 2 1 2008 11 20 17 26 14 ML Recirc Pump 3 1 2008 11 20 100 22 30 Perm/BP Pump 1 1 2008 11 20 100 22 9 Perm/BP Pump 2 1 2008 11 20 17 26 12 Perm/BP Pump 3 1 2008 11 20 100 22 9 55-MBR W3 Pump 1 1 2008 11 20 50 23 12 W3 Pump 2 1 2008 11 20 50 23 12 W3 Pump 3 1 2008 11 20 50 23 12 W3 Pump 4 1 2008 11 20 50 23 12 Aeration Blower 1 1 2019 0 20 33 23 23 Aeration Blower 2 1 2008 11 20 33 25 8 Aeration Blower 3 1 2008 11 20 33 25 8 Fine Bubble Diffuser System 2 2008 11 12 100 15 4 Scour Blower 1 1 2008 11 20 67 22 11 Scour Blower 2 1 2008 11 20 67 22 11 Sodium Hypochlorite Pump 1 1 2008 11 15 17 21 8 Sodium Hypochlorite Pump 2 1 2008 11 15 17 21 8 Citric Acid 1 1 2008 11 10 17 17 5 Citric Acid 2 1 2008 11 10 17 17 5 Ferric Chloride Feed Pump 1 1 2008 11 30 100 14 3 Ferric Chloride Feed Pump 2 1 2008 11 30 100 14 3 Ferric Chloride Feed Pump 3 1 2008 11 10 67 15 3 Ferric Chloride Feed Pump 4 1 2008 11 10 100 14 3 Air Compressor 1 1 2008 11 20 50 23 12 Air Compressor 2 1 2008 11 20 50 23 12 Dehumidifier 1 2008 11 20 100 22 10 Physical Remaining Useful Estimated Installation Building Item Condition Life Equipment Cost Replacement Cost Contingency Engineering Total Replacement Cost Anoxic Mixer 1 3 9 $23,000 $2,800 10% 10% $31,000 Anoxic Mixer 2 3 9 $23,000 $2,800 10% 10% $31,000 ML Foam Mixer 3 14 $23,000 $2,800 10% 10% $31,000 Membrane Tank Mixers 1 19 $6,000 $0 5% 5% $6,600 ML Waste Pump 1 2 12 $20,700 $5,600 5% 5% $29,000 0 ML Waste Pump 2 2 12 $20,700 $5,600 5% 5% $29,000 4� Membrane Cassette 1 1 14 $84,000 $4,800 10% 10% $106,600 CO Membrane Cassette 2 1 14 $84,000 $4,800 10% 10% $106,600 Membrane Cassette 3 1 14 $84,000 $4,800 10% 10% $106,600 Membrane Cassette 4 1 14 $84,000 $4,800 10% 10% $106,600 CO Membrane Cassette 5 1 14 $84,000 $4,800 10% 10% $106,600 i Membrane Cassette 6 1 14 $84,000 $4,800 10% 10% $106,600 Li --I Membrane Cassette 7 1 14 $84,000 $4,800 10% 10% $106,600 4� Membrane Cassette 8 1 14 $84,000 $4,800 10% 10% $106,600 to ML Recirc Pump 1 2 10 $55,000 $4,800 10% 10% $71,800 p ML Recirc Pump 2 2 14 $55,000 $4,800 10% 10% $71,800 U ML Recirc Pump 3 2 10 $55,000 $4,800 10% 10% $71,800 Perm/BP Pump 1 3 9 $69,000 $5,600 10% 10% $89,600 Perm/BP Pump 2 3 12 $69,000 $5,600 10% 10% $89,600 Perm/BP Pump 3 3 9 $69,000 $5,600 10% 10% $89,600 M W3 Pump 1 2 12 $10,600 $0 5% 5% $11,700 LLJ 55-MBR W3 Pump 2 2 12 $10,600 $0 5% 5% $11,700 W3 Pump 3 2 12 $7,200 $0 5% 5% $8,000 W3 Pump 4 2 12 $7,200 $0 5% 5% $8,000 Aeration Blower 1 1 23 $74,800 $57,500 10% 10% $158,800 Aeration Blower 2 4 8 Keep one ofthe HSI blowers as redundant machine Aeration Blower 3 4 8 $74,800 $57,500 10% 10% $158,800 Fine Bubble Diffuser System 3 4 $62,200 $29,600 10% 10% $110,200 ��/ Scour Blower 1 2 11 $74,800 $57,500 5% 5% $145,600 Scour Blower 2 2 11 $74,800 $57,500 5% 5% $145,600 Sodium Hypochlorite Pump 1 3 8 $8,900 $0 5% 5% $9,800 Sodium Hypochlorite Pump 2 3 8 $8,900 $0 5% 5% $9,800 Citric Acid 3 5 $8,900 $0 5% 5% $9,800 Citric Acid 3 5 $8,900 $0 5% 5% $9,800 Ferric Chloride Feed Pump 1 3 3 $7,400 $0 5% 5% $8,200 Ferric Chloride Feed Pump 2 3 3 $7,400 $0 5% 5% $8,200 Ferric Chloride Feed Pump 3 3 3 $7,400 $0 5% 5% $8,200 Ferric Chloride Feed Pump 4 3 3 $7,400 $0 5% 5% $8,200 Air Compressor 1 2 12 $6,900 $0 5% 10% $8,000 m Air Compressor 2 2 12 $6,900 $0 5% 10% $8,000 Dehumidifier 2 10 $4,100 $0 5% 5% $4,600 Bldg 55 Basin Grit Removal (Bi-Annually) $60,000 5% 5% $66,000 Bldg 55 Roof Replacement $64,600 5% 5% $71,100 Mechanicals $200,000 Building 60-Final Clarifiers Building Item No. Units Install Year Current Age Expected Life, Utilization (%), Adjusted Expected Life Remaining Useful Life, RAS Pump 1 1 1988 31 20 67 37 5 RAS Pump 2 1 1988 31 20 67 37 5 RAS Pump 3 1 1988 31 20 67 37 5 WAS Pump 1 1 1988 31 20 17 43 8 WAS Pump 2 1 1988 31 20 17 43 8 WAS Pump 3 1 1988 31 20 17 43 8 60-Final Clarifiers Scum Pump 1 2004 15 20 17 28 13 Clarifier Drive 1 1 2006 13 20 100 23 8 Clarifier Drive 2 1 2006 13 20 100 23 8 Air Compressor 1 1988 31 20 100 36 4 Sump Pump 2 1988 31 20 100 36 3 Clarifier 1 Cover 1 1988 31 30 100 41 6 Clarifier 2 Cover 1 1988 31 30 100 41 6 Building Item Physical Condition Equipment Cost Replacement Estimated Installation Cost Contingency Engineering Total Replacement Cost RAS Pump 1 3 $41,400 $5,600 10% 10% $56,400 RAS Pump 2 3 $41,400 $5,600 10% 10% $56,400 RAS Pump 3 3 $41,400 $5,600 10% 10% $56,400 WAS Pump 1 4 $24,800 $5,600 15% 15% $39,600 WAS Pump 2 4 $24,800 $5,600 15% 15% $39,600 WAS Pump 3 4 $24,800 $5,600 15% 15% $39,600 Scum Pump 2 $6,900 $2,300 5% 5% $10,200 60-Final Clarifiers Clarifier Drive 1 3 $186,300 $96,600 10% 10% $339,500 Clarifier Drive 2 3 $186,300 $96,600 10% 10% $339,500 Air Compressor 3 $4,000 $0 5% 5% $4,400 Sump Pump 4 $2,000 $3,200 5% 5% $5,800 Clarifier 1 Cover 4 $207,000 $78,200 10% 10% $342,300 Clarifier 2 Cover 4 $207,000 $78,200 10% 10% $342,300 Clarifier Grit Removal (Bi-Annually) $30,000 5% 5% $33,000 Bldg 60 Roof Replacement $7,500 5% 5% $8,300 Mechanicals $30,000 Building 80 — Disinfection c`ty°f A a_ w ia, �-' Building Item Install Year Current Age Expected Life, Utilization (%)Z Adjusted Expected Life, Remaining Useful Life, UV Bank1A 2008 11 25 50 28 16 UV Bank113 2008 11 25 50 28 16 80-Disinfection UV Bank2A 2008 11 25 50 28 16 UV Bank213 2008 11 25 50 28 16 UV Channel Influent Gate 1 2008 11 20 17 26 14 UV Channel Influent Gate 1 2008 11 20 17 26 14 M BRE Gate 2008 11 20 17 26 14 Remaining Useful Equipment Cost Estimated Installation Total Replacement Building Item Physical Condition Life Replacement Cost Contingency Engineering Cost UV Bank 1A 2 16 $59,000 $0 5% 0% $62,000 UV Bank 113 2 16 $59,000 $0 5% 0% $62,000 UV Bank 2A 2 16 $59,000 $0 5% 0% $62,000 UV Bank 213 2 16 $59,000 $0 5% 0% $62,000 80-Disinfection UV Channel Influent Gate 1 2 14 $13,800 $5,600 10% 5% $22,400 UV Channel Influent Gate 1 2 14 $13,800 $5,600 10% 5% $22,400 MBREGate 2 14 $5,800 $5,600 10% 5% $13,200 Bldg 80 Roof Replacement $16,500 5% 5% $18,200 Mechanicals $20,000 Building 90 — Solids Handling (Equipment Evaluation) ctryofA a_ Adjusted Remaining Building Item No. Units Install Year Current Age Expected Life, Utilization (Y)Z Expected Life, Useful Life, Belt Conveyor 1 1988 31 20 17 43 S Screw Conveyor 1 2005 11 20 33 25 11 Conveyor Drive 2005 11 20 33 25 11 V-belt 2005 11 20 33 25 11 Thickened Transfer Pump 1 1 2009 10 20 25 25 12 Thickened Transfer Pump 2 1 1988 31 20 25 42 9 Belt Press Thickener 1 1 2002 17 20 17 30 10 Top Belt 2002 17 20 17 30 10 Bottom Belt 2002 17 20 17 30 10 Belt Press Thickener 2 1 2002 17 20 50 27 6 Top Belt 2002 17 20 50 27 6 Bottom Belt 2002 17 20 50 27 6 90-Solids Handling Thickener Feed Pump 1 1 1988 31 20 17 43 7 Thickener Feed Pump 2 1 2019 0 20 33 23 23 Blower 1 1 1988 31 20 67 37 5 Silencer (Typ) 1988 31 20 33 41 S Blower 2 1 1988 31 20 33 41 S Blower 3 1 2019 0 20 67 21 21 Course Bubble Diffuser Systems 2 1988 31 10 100 34 2 Air Compressor 1 2017 2 20 25 23 21 Polymer Blend System 1 1988 31 15 33 44 S Polymer Blend System 2016 3 15 33 17 13 Polymer Solution Feed Pump 1 1 1988 31 15 33 44 S Polymer Solution Feed Pump 2 1 1988 31 15 33 44 S Heat Recirculation Pump 1 1 2000 19 20 50 28 9 Heat Recirculation Pump 2 1 2000 19 20 50 28 9 Building 90- Solids Handling (Cost Evaluation) Equipment Estimated Remaining Cost Installation Building Item No. Units Install Year Physical Condition Useful Life Replacement Cost Contingency Engineering Belt Conveyor 1 1988 4 11 $28,800 $7,400 10% 5% Screw Conveyor 1 2008 3 11 $23,000 $7,400 10% 5% Total Replacement Cost $41,700 $35,000 Conveyor Drive 2008 11 V-belt 2008 12 Thickened Transfer Pump 1 1 2009 3 9 $24,800 $8,300 10% 5% $38,100 Thickened Transfer Pump 2 1 1988 3 10 $24,800 $8,300 10% 5% $38,100 Belt Press Thickener 1 1 2002 3 10 $333,500 $35,700 5% 10% $424,600 Top Belt 2002 10 Bottom Belt 2002 7 Belt Press Thickener 2 1 2002 4 7 $333,500 $35,700 5% 10% $424,600 Top Belt 2002 7 $0 Bottom Belt 2002 8 $0 Thickener Feed Pump 1 1 1988 5 6 $24,800 $8,300 10% 10% $39,800 Thickener Feed Pump 2 1 2019 1 23 $24,800 $8,300 10% 10% $39,800 Blower 1 1988 3 8 $63,300 $54,100 10% 15% $146,800 Silencer (Typ) 1988 8 $0 90-Solids Handling Blower 2 1 1988 3 5 $63,300 $54,100 10% 15% $146,800 Blower 3 1 2019 1 21 $0 Course Bubble Diffuser Systems 2 1988 5 21 $80,600 $55,200 10% 15% $169,800 Air Compressor 1 2017 1 8 $4,000 10% 5% $4,600 Polymer Blend System 1 1988 5 13 $20,000 5% 5% $22,000 Polymer Blend System 2016 2 8 5% 5% $0 Polymer Solution Feed Pump 1 1 1988 4 8 Polymer Solution Feed Pump 2 1 1988 4 9 Heat Recirculation Pump 1 1 2000 2 9 Heat Recirculation Pump 2 1 2000 2 0 Digester Mixing System 2 5 $103,600 $29,600 10% 15% $166,500 Telescoping Valves for Decanting 2 5 $9,200 $14,800 10% 15% $30,000 DO Control 1 5 $6,900 $5,600 10% 10% $15,000 Digester Grit Removal (Annually) 2 $60,000 5% 5% $66,000 Bldg 90 Roof Replacement 1 $,00 5% 5% $4,00 Bldg 100 Roof Replacement 1 $3939,600 5% 5% $43,600 Mechanicals 1 $150,000 Facility Assessment Summary City of"- 7 • Generally need to address the age and condition of the original 1988 WWTF • Poorly operating headworks processes has large impact on the rest of the WWTF and need urgent improvements • Main lift station, MBR Building, Final Clarifiers and Disinfection have largely replace -in -kind equipment • Solids processing, particularly the aeration system, has urgent needs • Facility Assessment did not address potential impacts with upcoming permit — lower phosphorus limits and bicarbonate limit is anticipated and further evaluation will need to be completed to determine the WWTF's ability to meet those limits slkx HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Discussion on CARES Act Funding for City of Hutchinson Department: Finance LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Attached is a memo providing information on the CARES Act Funding and the eligible uses of those funds. The State has allocated a total of $6,581,027 to McLeod County local governments, broken down as follows: McLeod County $4,368,783 City of Hutchinson 1,074,352 Other McLeod Cities 894,967 Townships 242,925 Reimbursing ourself for incurred, eligible costs is estimated at $200,000. That leaves us with approximately $874,352 of funds that could be distributed to local businesses as grants or short-term loans. These funds can also be used to reimburse the school district for eligible costs. City Council and staff need to start the conversation to understand the legal options available to us for the use of these monies and to start developing a program to disburse the remaining funds. As my memo states, any unused funds must be sent to the County after November 15. That gives us four months to develop and administer our plan. BOARD ACTION REQUESTED: Discussion on the CARES Act funding and potential uses of the monies. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CARES Act Funding Amounts McLeod County $ 4,368,783 Cities: Biscay $ - Brownton $ 54,019 Glencoe $ 415,878 Hutchinson $ 1,074,352 Lester Prairie $ 128,455 Plato $ 22,753 Silver Lake $ 60,423 Stewart $ 40,985 Winsted $ 172,454 Total Cities $ 1,969,319 Townships Acoma $ 28,025 Bergen $ 23,625 Collins $ 10,925 Glencoe $ 11,775 Hale $ 22,750 Hassan Valley $ 16,325 Helen $ 20,450 Hutchinson $ 30,225 Lynn $ 13,100 Penn $ 7,825 Rich Valley $ 16,550 Round Grove $ 5,625 Sumter $ 12,675 Winsted $ 23,050 Total Townships $ 242,925 Total County Funding $ 6,581,027 Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320-587-5151/Fax 320-234-4240 Memo To: City Council From: Andy Reid Cc: Matt Jaunich Date: July 8, 2020 Re: CARES Act Funding Back in March, President Trump signed the CARES Act, which allocated $150 Billion of federal money to states and local governments, via the Coronavirus Relief Fund (CRF). The State of Minnesota allocated its share of CRF funds to cities and townships based on a $75.34 per capita formula. The City of Hutchinson's share is $1,074,352. Receiving the monies is very easy, with a one -page certification form to the State, which I submitted on July 6. We should receive the monies the week of July 27. The following table shows our current estimated expenses compared to our funding: City & Federal COVI D Leave Pay Unemployment Benefits Paid PPE, Supplies, etc. City Center service counter upgrades Total Estimated Eligible Expenses City's CRF Funding Amount CRF Balance after Expenses $ 120,000 35,000 25,000 2 0, 00 0 - may submit to FEMA for funding $ 200,000 $1,074,352 874,352 With an anticipated CRF balance of $874K, it is important that we discuss and plan the best uses for those funds, knowing that any unused funds must be remitted to the County. Considering the fact that eligible uses are very limited, our best option may be to provide grants or short-term loans to local small business impacted by the COVID-19 public health emergency. As discussed later in this memo, any grants or loans must be determined to be necessary in response to the COVID-19 public health emergency and otherwise satisfies the requirements of the CARES Act and other applicable law. The following is a summary of a presentation by the Minnesota Management and Budget office, providing guidance on the use of CRF funds. Keep in mind that requirements for the funding have been changing almost daily and will likely be subject to future change or clarification as counties and cities start looking at how to use the monies. Qualifying Costs Expenses must satisfy three distinct elements: They must be necessary, unaccounted for within our budget and incurred during the covered period. 1. Necessary Expenditures Incurred due to the public health emergency with respect to COVID-19 a. Necessary: Expenditure is reasonably necessary for its intended use in the reasonable judgement of the government officials responsible for spending Fund payments. b. Due To: Expenditures must be used for actions taken to respond to the public health emergency; including expenditures incurred: i. To respond directly to the emergency ii. To respond to second -order effects, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19 related business closures. 2. Unaccounted -For Expenses Costs not accounted for in the budget most recently approved as of March 27, 2020 a. Not Accounted -For: i. The Cost Cannot Lawfully Be Funded using a line item allotment or allocation within that budget; or ii. The cost is for a Substantially Different use from any expected use of funds in such a line item, allotment, or allocation b. Most Recently Approved Budget: the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency 3. Incurred During Covered Period a. Incurred: Performance or delivery must occur during the covered period but payment of funds need not be made during that time. It is generally expected that payment is made within 90 days of being incurred. b. Covered Period: For Cities: 3/1/2020 — 11/15/2020; Counties through 12/1/2020 Eligible Uses The following is a condensed list of eligible uses, showing only those uses that may apply to the City of Hutchinson: 1. Medical Expenses 2. Public Health a. Communication and Enforcement of Public Health b. PPE, including supplies/sanitizing products for Police Officers c. Disinfection of public areas and other facilities d. Public Safety measures undertaken in response to COVID-19 e. Recovery planning projects or operating a recovery coordination office 3. Payroll Expenses a. For public employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency b. Increased Worker's Compensation cost to the government due to COVID-19 4. Public Health Measures a. Expenses to improve telework capabilities for public employees b. Expenses of providing paid sick and paid family and medical leave to employees 5. Economic Support a. Provision of grants or short-term loans to small businesses to reimburse the costs of business interruption caused by required closures i. Governments have discretion to determine what payments are necessary. ii. A program aimed at assisting small businesses should be tailored to assist those businesses in need iii. School districts and private hospitals qualify for economic support to reimburse for necessary expenditures incurred due to COVID-19 b. Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise c. Consumer grant program to prevent eviction and homelessness i. Program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs 6. Other Expenses a. Any other COVID-19 related expenses reasonably necessary to the function of government that satisfy the Fund's eligibility criteria Ineligible Costs • Replacement of lost revenues, including property tax relief or unpaid utility fees • Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency • Expenses that have been, or will be, reimbursed under any federal program • Severance pay or legal settlements • Damages covered by insurance • Per capita payments to residents of a particular jurisdiction without an assessment of individual need Transferring Funds Local governments may transfer CRF funds to another local unit of government. Local governments may also use Fund payments in the form of a grant or a short-term loan to support public or private business entities to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency. Note: The Direct Fund Recipient is still responsible for sub -recipient monitoring regulations for Funds transferred to another local government of business. Must ensure the sub -recipient follows the same federal requirements. FEMA Considerations CRF funding can be used by a local government to pay the non-federal share of FEMA assistance. The City can request FEMA funding for eligible costs, but cannot refund twice with CRF funds. Receiving FEMA funding is more complex, but doing so will free up more CRF funds for business grants or loans. Accounting and Reporting of CRF Funds The City's finance department will be responsible for submitting monthly reports to the State. These reports will certify the amount of CRF funds spent and the remaining funds. A final report will be submitted when all funds have been used or transferred to the County. Some other accounting considerations include: • Best to deposit CRF funds in a separate bank account for reporting purposes • Interest earned on CRF funds must be spent in the same manner as CRF funds, or will need to be returned to the County • The City must have a single audit performed for any year in which we receive at least $750,000 of federal monies. We have had single audits performed in the past, most recently in 2019. The CRF funds will require Hutchinson to have a single audit for 2020. The cost of that audit is an eligible use of CRF funds, and likely would be in the range of $4,000 to $5,000. • Any transferred funds to a sub -recipient still counts towards the original recipient's single audit requirement HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Ordinance to Sell City -Owned Land to Droptine Properties LLC Department: Legal LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ❑ Unfinished Business Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As you will recall, at the last Council meeting, the Hutchinson EDA provided a presentation on the Rite -Way Conveyors / Droptine Properties LLC project. As part of the project, the City will be selling a 7.5 acre industrial park lot to Droptine Properties, LLC. As required under the Hutchinson City Charter, all land owned by the City must be conveyed by ordinance. This is the second reading and proposed adoption of the ordinance conveying the property to Droptine Properties LLC. No changes have been made to the ordinance. I recommend that you approve this ordinance. BOARD ACTION REQUESTED: Approve second reading and adoption of Ordinance No. 20-816. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 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. 20-816 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 1, Block 2, Energy Park 2nd Addition, City of Hutchinson, McLeod County, Minnesota. for good and valuable consideration is hereby transferred and conveyed to Droptine Properties, LLC, or its successor or assigns. 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 14th day of July, 2020. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=y�fAa� Request for Board Action 7AL =-W Resolution 15186 Authorizing Issuance of $2,465,000 General Obligation Improvement Agenda Item: Bonds, Series 2020A Department: Finance LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut - Ehlers Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Nick Anhut, from Ehlers & Associates, will review the bids received for the 2020 bond issuance. The new debt, with an estimated par value of $2,465,000, will finance the following 2020 improvement projects: 1) Hwy 15 / Main Street Reconstruction 2) Civil Air Patrol Utility Extension The City's debt management plan has been updated for this debt issuance and the future projected debt levy graph can be found directly after this page. It's important to point out that the debt service payments will be funded by the existing debt levy and does not require a tax increase. The City's Standard & Poors bond rating reaffirmation and report was not available for inclusion with this agenda item. I fully expect that our rating will be reaffirmed at AA-. I will forward the report separately when it is received. BOARD ACTION REQUESTED: Consider and approve the issuance of $2,465,000 general obligation improvement bonds, series 2020A, by adopting resolution 15186. 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 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Projected Debt Tax Levy as of 7/14/2020 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 =Existing Levy =Proposed Future Issues MEquipment —Target Levy Debt CERTIFICATION OF MINUTES RELATING TO $[2,465,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2020A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on July 14, 2020, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 15186 RESOLUTION RELATING TO $[2,465,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2020A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this day of July, 2020. (SEAL) Matt Jaunich City Administrator 4827-5897-0560\2 The City Administrator reported that [] ([]) proposals for the purchase of the $ [PAR] General Obligation Improvement Bonds, Series 2020A were received prior to 10:00 A.M., Central Time today pursuant to the Preliminary Official Statement distributed to potential purchasers of the Bonds by Ehlers & Associates, Inc., municipal advisors to the City. The bids have been read and tabulated, and the terms of each have been determined to be as follows: (See Attached) 4827-5897-0560\2 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. RESOLUTION RELATING TO $[2,465,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2020A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: SECTION 1. RECITALS. 1.01. Authorization. This Council has heretofore ordered various street improvement projects (together, the "Improvements") to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429 (the "Act"). This Council hereby determines it to be in the best interests of the City to issue and sell $[2,465,000] principal amount of General Obligation Improvement Bonds, Series 2020A, of the City (the "Bonds") to defray a portion of the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and fund the costs of issuance of the Bonds. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent municipal advisor ("Ehlers"), to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the City by Ehlers, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of [Purchaser], of [City], [State], [and associates] (the "Purchaser"), to purchase the Bonds at a price of $[ ] the Bonds to bear interest at the rates set forth in Section 3.02. 1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Administrator are hereby authorized and directed to execute a contract on the part of the City with the Purchaser for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. SECTION 2. FORM OF BONDS. The Bonds shall be prepared in substantially the form attached as Exhibit A hereto. 4827-5897-0560\2 SECTION 3. BOND TERMS, EXECUTION AND DELIVERY. 3.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota and City Charter to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 3.02. Maturities, Interest Rates, Denominations, Pam. The Bonds shall be originally dated as of the date of issuance thereof, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of original issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate 2022 2023 2024 2025 2026 2027 2028 2029 Year Amount Rate 2030 2031 2032 2033 2034 2035 2036 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond at the principal office of the Registrar (as hereinafter defined), the principal amount thereof, shall be payable by check or draft issued by the Registrar; provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 3.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 3.03. Dates, Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 3.07 and upon any subsequent transfer or exchange pursuant to Section 3.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable each February 1 and August 1, commencing August 1, 2021 (each such date, an "Interest Payment Date"), to the person in whose name the Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30- day months. 3.04. Redemption. Bonds maturing in 2029 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order of maturity 2 4827-5897-0560\2 dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on February 1, 2028, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail (or, if applicable, provided in accordance with the operational arrangements of the bond depository), to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS — ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on February 1, 20 and 20 (the "Term Bonds") shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 3.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of such Bonds: Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Notice of redemption shall be given as provided in the preceding paragraph.] 3.05. Appointment of Initial Re ig strar. The City hereby appoints Bond Trust Services Corporation in Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services 3 4827-5897-0560\2 performed. The City reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 3.06. Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge 4 4827-5897-0560\2 upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 3.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 3.08. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. 5 4827-5897-0560\2 "Participant" shall mean any broker -dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter from the City to DTC. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor, in the form presented to this Council with such changes, omissions, insertions and revisions as the Mayor shall deem advisable, is hereby authorized, and execution of the Representation Letter by the Mayor shall be conclusive evidence of such approval. The Representation Letter shall set forth certain matters with respect to, among other things, notices, consents and approvals by registered 6 4827-5897-0560\2 owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this resolution. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. SECTION 4. SECURITY PROVISIONS. 4.01. General Obligation Improvement Bonds, Series 2020A Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "General Obligation Improvement Bonds, Series 2020A Construction Fund" (the "Construction Fund"), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) the proceeds of the sale of the Bonds ($[]), representing the estimated costs of the Improvements ($[]) and costs of issuance of the Bonds ($[]). The City Finance Director shall maintain the Construction Fund until payment of all costs and expenses incurred in connection with the construction of the Improvements have been paid. From the Construction Fund there shall be paid all costs and expenses related to the construction of the Improvements. After payment of all such costs and expenses, the Construction Fund shall be terminated. All funds on hand in the Construction Fund when terminated shall be credited to the Bond Fund described in Section 4.02 hereof, unless and except as such proceeds may be transferred to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest on the Bonds from federal income taxes. In no event shall funds remain in the Project Fund later than August 6, 2025. 4.02. General Obligation Improvement Bonds, Series 2020A Bond Fund. The Bonds shall be payable from a separate General Obligation Improvement Bonds, Series 2020A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Into the Bond Fund shall be paid: (a) any funds received from the Purchaser upon delivery of the Bonds in excess of the amounts specified in Sections 4.01 above; (b) any special assessments collected pursuant to Section 4.03 hereof, (e) any taxes collected pursuant to Section 4.04 hereof, and 7 4827-5897-0560\2 (f) any other funds appropriated by this Council for the payment of the Bonds. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the City Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one -twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional, statutory or charter limitation. 4.03. Levy of Special Assessments. For the payment of a portion of the cost of the Improvements financed by the Bonds, the City has levied special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the Improvements. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. 4.04. Pledge of TaxingPower. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of other amounts as set forth in Section 4.02, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Lever Collection Years Amount See attached schedules 8 4827-5897-0560\2 The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the tax levies from other legally available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 5. DEFEASANCE. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. SECTION 6. REGISTRATION. CERTIFICATION OF PROCEEDINGS INVESTMENT OF MONEYS, ARBITRAGE AND OFFICIAL STATEMENT. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and Regulations promulgated thereunder (the "Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Improvements will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use or other agreement with any non -governmental person relating to the use of such improvements or security for the payment of 9 4827-5897-0560\2 the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations, stating the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, that no Certificate is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Certificates are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2020 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. (b) Notwithstanding the provisions of paragraph (a) of this Section 6.05, if the arbitrage rebate provisions of Section 148(f) of the Code apply to the Certificates, the City hereby covenants and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f) and applicable Regulations. 6.06. Qualified Tax Exempt Obligations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt governmental obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2020 does not exceed $10,000,000. 6.07. Official Statement. The Official Statement relating to the Bonds, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 6.08. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the financed facilities which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that a declaration of official intent shall not be required (i) with respect to certain de minimis expenditures, if any, with respect to the financed facilities meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the financed facilities as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and 10 4827-5897-0560\2 similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. SECTION 7. CONTINUING DISCLOSURE. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, `Beneficial Owner" means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve (12) months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2020, the following financial information and operating data in respect of the City (the "Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect 11 4827-5897-0560\2 thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: Current Property Valuations, Direct Debt, Tax Levies and Collections, US Census Data/Population Trend, and Employment/Unemployment Data, which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal Market Access System ("EMMA") or to the SEC. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect, provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact"): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; 12 4827-5897-0560\2 (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or similar event of the obligated person; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (0) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and (P) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. For purposes of the events identified in paragraphs (0) and (P) above, the term "financial obligation" means (i) a debt obligation; (ii) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) a guarantee of (i) or (ii). The term "financial obligation" shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also "material" if it is an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order 13 4827-5897-0560\2 confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection (b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term, Amendments, Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the 14 4827-5897-0560\2 effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 8. AUTHORIZATION OF PAYMENT OF CERTAIN COSTS OF ISSUANCE OF THE BONDS. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Old National Bank on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. 15 4827-5897-0560\2 Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 16 4827-5897-0560\2 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2020A R- 15186 Interest Rate REGISTERED OWNER: PRINCIPAL AMOUNT: Maturity Date February 1, 20 CEDE & CO. Date of Original Issue August 6, 2020 THOUSAND DOLLARS CUSIP No. THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360-day year consisting of twelve 30-day months, payable on February 1 and August 1 in each year, commencing August 1, 2021, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of Bond Trust Services Corporation, in Roseville, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the "Bond Registrar"), or its successor designated under the Resolution described herein. This Bond is one of an issue in the aggregate principal amount of $[PAR] (the "Bonds"), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date, issued pursuant to a resolution adopted by the City Council on July 14, 2020 (the "Resolution") to pay the cost of construction of various street improvements in the City (the "Improvements") and is issued pursuant to and in full conformity with the provisions of the City Charter and Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. For the full and prompt payment of the principal of and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only in fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in the years 2029 and thereafter are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in the maturities selected by the City and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 2028 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. A-1 4827-5897-0560\2 [Bonds maturing on February 1, 20 are subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20[ 1 Sinking Fund Aggregate Payment Date Principal Amount (final maturity)] At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond, not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price herein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has by the Resolution levied or agreed to levy special assessments on property specially benefitted by the Improvements and covenanted and agreed to collect and apply to payment of the Bonds ad valorem taxes levied on all taxable property in the City, which taxes and assessments are estimated to be collectible in years and amounts sufficient to produce A-2 4827-5897-0560\2 sums not less than 5% in excess of the principal of and interest on the Bonds when due, and has appropriated such assessments and taxes to its General Obligation Improvement Bonds, Series 2020A Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by manual signature of the authorized representative of the Bond Registrar. A-3 4827-5897-0560\2 IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature - City Administrator) (Facsimile Signature — Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: BOND TRUST SERVICES CORPORATION, as Bond Registrar Authorized Representative A-4 4827-5897-0560\2 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for .................. (Cult) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Please insert social security or other identifying number of assignee: A-5 4827-5897-0560\2 Exhibit B PROJECTED TAX LEVIES AND ASSESSMENTS [TO COME] 4827-5897-0560\2 CERTIFICATE OF COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY I, the undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution adopted July 14, 2020, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[PAR] General Obligation Improvement Bonds, Series 2020A, dated as of August 6, 2020, and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2020. McLeod County Auditor (SEAL) 4827-5897-0560\2 HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Ordinance 20-818 - Extending Emergency Declaration to 8-11-20 Department: Administration/Legal LICENSE SECTION Meeting Date: 7/14/2020 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Because of the continuing situation surrounding the Covid-19 pandemic, the Mayor issued his second emergency declaration on June 15, 2020, and the ordinance supporting the declaration of the emergency was approved at a special Council meeting on June 18, 2020. The time period set out in those documents for the state of emergency runs through July 14, 2020. Because of the chance of an increased number of Covid-19 cases in the community and so that the City can remain eligible for any type of State and Federal assistance dollars, staff is recommending that the state of emergency due to Covid-19 be extended through August 11, 2020. BOARD ACTION REQUESTED: Approval of Ordinance 20-818 extending the declaration of a local emergency until August 11, 2020. Fiscal Impact: $ 0.00 Funding Source: n/a FTE Impact: 0.00 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 ORDINANCE NUMBER 20-818 EXTENSION OF LOCAL EMERGENCY THROUGH AUGUST 11, 2020 CITY OF HUTCHINSON, MINNESOTA WHEREAS, the Mayor of the City of Hutchinson, Minnesota (" Mayor") declared an emergency to exist in the City of Hutchinson, Minnesota, (" City") effective 4:30 PM on June 15, 2020, upon signing Declaration 2020 — 02 ("Declaration"); and, WHEREAS, Minnesota Statute Section 12.29 authorizes the Mayor to declare the existence of the emergency, invoke necessary portions of the Emergency Operations Plans and Pandemic Response Plan, and authorizes aid and services in accordance with inter urisdictional agreements. In order for the Declaration of the emergency to continue beyond three days the City Council of the City of Hutchinson, Minnesota ("City Council") must consent to the Declaration; and, WHEREAS, the City Council convened at a special meeting of the City Council at 8:30 AM on June 18, 2020, and considered formal action to consent to the Mayor's Declaration and related actions; and, WHEREAS, the City Council adopted Ordinance 20 — 817 consenting to the Mayor's Declaration of a local emergency on June 15, 2020; and, WHEREAS, Ordinance 20 — 817 is effective through July 14, 2020; and, WHEREAS, City Charter Section 3.06 allows the immediate adoption of an Ordinance when necessary for the immediate preservation of the public peace, health, morals, safety or welfare of the City; and WHEREAS, City Charter Section 3.05 waives the notice requirements prior to adopting an emergency Ordinance; and, WHEREAS, the City Council finds that the Covid -19 situation is an emergency and poses a threat to the health, safety, and welfare of the citizens of Hutchinson and may affect the provision and delivery of City services as result of the emergency; and, WHEREAS, the City Council finds that the emergency poses a risk to the public health of the community if not addressed; and, WHEREAS, the expiration date of ordinance 20 — 817 is July 14, 2020, and the effects on the community and conditions which led to the original Emergency Declaration are expected to continue past that expiration date. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, DOES HEREBY ORDAIN: Section 1. The City continues to face a threat to public health resulting from the novel coronavirus and the resulting Covid — 19 disease and pandemic. Section 2. This Ordinance hereby continues the operationalization of the city's Emergency Operation Plans and the Pandemic Response Plan invoked by Ordinance 20 — 817. Section 3. To the extent normal state laws and city policies and procedures impede an efficient response or compliance with the Federal and State directives and recommendations, the City Administrator, and the Emergency Operations Manager, and their designees are hereby authorized to suspend compliance with those laws, policies, and procedures as authorized by the Governor's Emergency Executive Order 20 — 01 and Minnesota Statutes Sections 12.32 and 12.37 as well as to execute any and all of the provisions of the Hutchinson Emergency Declaration, Ordinance 20 — 817. Section 4. This Ordinance authorizes all meetings of the City Council and city commissions, boards, authorities, and related subsidiary entities and committees to conduct their meetings by electronic means as authorized by Minnesota Statutes, Section 13D .021, and specifically authorizes telephonic meetings because such in — person meetings are not practical or prudent due to the Covid — 19 health pandemic and related declared emergency so long as such meetings are consistent with the requirements of Minnesota Statutes Section 13 D .021 through August 11, 2020, unless rescinded earlier by official action of the City Council. Section 5. This Ordinance was adopted by at least 4 members of the City Council as required by section 3.06 of the City Charter. Section 6. This Ordinance shall take effect immediately upon passage as permitted by section 3.09 of the City Charter. Section 7. The City Administrator is authorized and directed to file and to post notice of this Ordinance and any emergency regulations as authorized required by State law, City Charter, and City Code. Adopted this 14th day of July, 2020. Mayor Attest: City Administrator MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 27, 2020 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner Monty Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora; Brenda Parsley with Conway, Deuth & Schmiesing Audit Firm Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Morrow, second by Commissioner Cheney to approve the Consent Agenda. Motion carried unanimously. 3. Approve 2019 Financial Audit — Presentation by Brenda Parsley Brenda Parsley with Conway, Deuth & Schmiesing audit firm presented the 2019 Hutchinson Utilities Commission independent audit report. Ms. Parsley stated that the audit was conducted in accordance with the Generally Accepted Auditing Standards and Government Auditing Standards. The financial statements of the Commission are presented fairly in the firms' opinion. Ms. Parsley reviewed the Statement of Net Position. Assets and liabilities both decreased in 2019. Overall Net Position did increase in 2019, which is the trend the last several years. Ms. Parsley reviewed the Cash and Investment Balances. Electric Division Operating Revenues and Expenses both decreased in 2019. Natural Gas Division Operating Revenues decreased with Operating Expenses increasing in 2019. Ms. Parsley summarized the Communications portion of the report and the general recommendations, which consist of cross -training and capital asset accounting which have been recommended in past years. The third recommendation relates to GASB 95. Due to. COVID-19, there has been a delayed implementation of certain GASB's by 18 months — 2 years, which includes the lease standard. This is something to keep in mind for the future that all leases need to be added to the financial statements. Commissioner Hanson inquired about a prior period adjustment on the balance sheet in 2018. Ms. Parsley noted it was for post -employment benefits. GM Carter reviewed the Revenue per KWH slide and Revenue per MCF slide of the presentation. These slides are showing that the glide paths the Commission put in place a couple of years ago are indeed doing what the intent was. GM Carter also noted conversation points regarding the glide paths will need to be discussed this summer. GM Carter noted that IT costs increased due to the SCADA system and by placing RTUs out in the field to start transitioning HUC to an updated software system. Additional increases were Boiler and Property insurance. Overall, operationally if labor, IT and insurance is removed, HUC is running flat or at a decrease in some cases. Motion by Commissioner Hanson, second by Commissioner Wendorff to approve the 2019 Financial Audit. Motion carried unanimously. 4. Approve Financial Statements Mr. Martig presented the Financial Statements. Natural Gas Division April 2020 is very similar to April 2019 but continues to remain below 2019 levels due to a warmer 2020 1st quarter compared to 2019. Electric Division net loss increased by $197k mostly due to decreased revenues. Residential class usage increased with commercial classes decreasing. More than half the decrease in revenue can be attributed to no power cost adjustment in 2020 compared to the power cost adjustment bringing in an additional $105k in 2019. GM Carter reviewed the residential and commercial loads along with the A/R balances. Discussions were held on the loads and the options customers have regarding payment of bills. Staff will continue to monitor the loads along with the A/R balances. Motion by Commissioner Cheney, second by Commissioner Morrow to approve the financial statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator — Matthew Jaunich — Absent b. Divisions i. Dan Lang, Engineering Services Manager — Absent ii. Dave Hunstad, Electric Transmission/Distribution Manager —Absent iii. Randy Blake, Production Manager — Absent iv. John Webster, Natural Gas Division Director — Absent v. Jared Martig, Financial Manager- 1. Fixed Assets module is now live. Continuing to work on the Purchasing module. c. Human Resources - Brenda Ewing — Absent d. Legal — Marc Sebora — Nothing to report e. General Manager — Jeremy Carter i. Reviewed the Power Supply Mix for 2019 2 ii. Transformer bid update. Bid opening was today. Staff and CE Power will review all the bid specifications. After review of the bids, Staff will come to the Board with CE Power's recommendation. Conversations were held on the lead times of the transformers. iii. Reviewed the return to work guidelines for HUC. As of June 1, HUC will be moving from the Orange Phase down to Green Phase. All employees will return back to work, however there will still be no congregation of employees. Alternative Work Schedule Request Forms were provided to vulnerable employees if needed. Lobby will continue to be closed -until July 6, but may reopen sooner if needed. Discussions were held on any feedback that has been received by the employees along with the impact to HUC due to the pandemic. 7. Policies a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non -Exempt Handbook No changes recommended at this time. b. Approve Changes No changes recommended at this time. 8. Unfinished Business 9. New Business a. None Commissioner Hanson spoke of the Glide Paths and the internal review. Conversations were held on when the review needs to be presented to the Council. GM Carter will present an internal review at the July Board meeting. 10. Adjourn There being no further business, a motion by Commissioner Hanson, second by Commissioner Cheney to adjourn the meeting at 3:43p.m. Motion carried unanimously. oe Robert Wendorff, Sec ATTEST: ��, 6 Kd=, —, on Martin z, reside To: Mayor and Council From: Candice Woods, Liquor Hutch Director Date: 07/01/20 Re: Liquor Hutch Sales January —June 2020 Year to Date Sales: 2019 $2,967,442 Liquor $1,018,568 Beer $1,453,186 Wine $ 431,566 2020 Change $3,675,247 23.9% Increase $1,255,844 23.3% increase (+ $237,276) $1,815,242 25.0%increase (+$362,056) $ 520,455 20.6%increase (+$ 88,889) Year to Date Gross Profit Dollars: $758,641 $910,000 20.0% increase Year to Date Customer Count: 117,219 123,677 5.5% increase Average Sale per Customer: $25.31 $29.72 $4.41 increase Gross Profit Percentage: 25.57% 24.78% 0.79% decrease (Note: Increase in Beer sales at a lower GP% creates overall lower GP%) Net Profits: $216,153 $347,024 + $130,871 (Note: June Net Profits not yet available — above increase reflects profits through 05/31/19 compared to 05/31/20) Store Activity Highlights: Due to COVID 19 guidelines, no employee training sessions, store events or in store Castings have been held during the second quarter of 2020. Further details of all statistics have been provided to the Administrative Department. Please feel free to contact me with any questions or requests for additional data.