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cp04-13-21HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, APRIL 13, 2021 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 oftheprivate citizen, to andfor the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previous y reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15294 — Accepting Donation of $5560.00 from Liz Stearns Towards Playground Equipment Replacement at JC Women's Park 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 be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of March 23, 2021 CONSENT AGENDA (The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Resolution No. 15293 — Resolution Authorizing Donation of Surplus Property (Sound Equipment to HCVN) (b) Consideration for Approval of Resolution No. 15295 — Amending Resolution No. 15158 Establishing Income Guidelines & Asset Limitations for Senior Citizens 65 Years or Older, Disabled Citizens, Active Duty Military Reserves or National Guard Deferred Assessment and Senior Citizens Reduced Refuse Rate (c) Consideration for Approval of Revisions to City Policy 3.34 — Telework Policy CITY COUNCIL AGENDA April 13, 2021 (d) Consideration for Approval of 2021 Job Evaluation & Compensation Study Market List (e) Consideration for Approval of Jaycee Women's Park Lease Agreement (f) Consideration for Approval of Issuing Short -Term Gambling License to Hutchinson Rotary Foundation on June 10, 2021, at Rotary Park (g) Consideration for Approval of Issuing Short -Term Gambling License to Saturday Night Cruisers Car Club (h) Consideration for Approval of Hutchinson Jaycee Water Carnival Requests (i) Consideration for Approval of Issuing Parade Permit for Memorial Day Parade on May 31, 2021 0) Claims, Appropriations and Contract Payments PUBLIC HEARINGS - NONE purpose o t is portion o t e agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) ECONOMIC DEVELOPMENT AUTHORITY YEAR END REPORT UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY LAND LEASE AGREEMENT WITH HUTCHINSON UTILITIES COMMISSION TO CONSTRUCT AND OPERATE A SOLAR POWER GENERATING FACILITY 10. APPROVE/DENY RENEWING OF WASTE HAULING CONTRACT WITH WEST CENTRAL SANITATION 11. APPROVE/DENY MOVING CITY COUNCIL MEETINGS FROM VIRTUAL SETTINGS BACK TO IN -PERSON MEETINGS GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Arts Commission Minutes from February 10, 2021 b) Hutchinson Library Board Minutes from February 22, 2021 �c) Hutchinson Utilities Commission Minutes from February 24, 2021 d) Liquor Hutch Quarterly Report 2 CITY COUNCIL AGENDA April 13, 2021 MISCELLANEOUS 13. STAFF UPDATES 14. COUNCIL/MAYOR UPDATE ADJOURNMENT HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. JC Women's Park Donation Agenda Item: Department: PRCE LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Lynn Neumann Agenda Item Type: Presenter: Liz Stearns/Calli Schwartz Reviewed by Staff ❑� Recognition of Gifts/Donations Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: JC Women's Park (1050 Goebel Street SW) was originally built in 1995. Other than routine maintenance, the playground still encompasses the original play equipment that was installed in 1995. In the late 1990s, the JC Women's group disbanded when women could officially join the Jaycees; so there is no official group committed to improvements and upgrades to this particular park. Two local neighbors recognized a need for the JC Women's Park to be updated and started a fundraising campaign to raise funds to support the playground improvement project in hopes that they could raise enough dollars to have the playground updated in summer 2021. Liz Stearns and Calli Schwartz started their grassroots fundraising campaign on Facebook in October 2020 with a goal of $5,000. Typical fundraising efforts could not be utilized due to the COVID-19 Pandemic. They focused on their social media presence for individual donors and placed calls to local businesses and organizations. They organized a pay -what -you -can toy sale to help families in need during the holidays. Several local businesses contributed to the fundraiser along with over 70 families from the community. Prior donations totaling $1,100.00 had already been presented to the City of Hutchinson to support this project. The equipment for the improvements at JC Women's Park will be purchased this spring. Removal of old equipment and installation of the new equipment will take place late summer, early fall 2021. If this project is not completed as anticipated, this $5,560.00 is to be returned to Liz Stearns. The remainder of the funds will come from the allotted Playground Equipment Improvement Funds (Capital Projects Fund) to complete the project. BOARD ACTION REQUESTED: Approval to accept the donation of $5,560 for the JC Women's Playground Improvement Project. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: $ 23,397.00 Total City Cost: $ 16,737.00 Funding Source: Capital Projects Fund- Playground Improvements Remaining Cost: $ 6,660.00 Funding Source: Neighborhood Donation CITY OF HUTCHINSON RESOLUTION NO. 15294 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17-1 and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Liz Stearns $5,560.00 4/13/2021 WHEREAS, such donation has been contributed to the City of Hutchinson Parks Department towards the cost to replace playground equipment at JC Women's Park. WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donations described above are hereby accepted by the City of Hutchinson. Adopted by the City Council this 13th day of April 2021. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor Elizabeth (Liz) Stearns JC Women's Park Fundraiser 770 Graham St SW Hutchinson, MN 55350 eselbyll@gmail.com 480-343-5921 March 26, 2021 Lynn Neumann Director of Parks, Recreation and Community Education City of Hutchinson PRCE 900 Harrington Street Hutchinson, MN 55350 Ineumann@ci.hutchinson.mn.us 320-234-5637 To whom it may concern, In October 2020, Calli Schwartz and I began a community led fundraiser to go towards replacing the playground equipment at the IC Women's playground. In total we raised $6,660. Citizens Bank and Westlund Associates paid $1,100 directly to the City of Hutchinson to go towards the fundraiser. I will present a check of $5,560 for the remaining amount to the City of Hutchinson at the City Council meeting on April 13, 2021. This money is intended to be used for the JC Women's playground rebuild only. If this project cannot be completed, the money should be returned. Sincerely, Elizabeth Stearns HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, MARCH 23, 2021 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item.) 1. CALL MEETING TO ORDER— 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Mary Christensen, Brandon Begnaud, Chad Czmowski, and Dave Sebesta. 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: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. 2. INVOCATION —Christ the King Lutheran Church (The invocation is a voluntary expression oftheprivate citizen, to andfor 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. 15292 — Accepting Donation of $2735.34 from Hutchinson Farmers' Market Towards Lighting Project at Depot Pavilion Motion by Czmowski, second by Christensen, to approve Resolution No. 15292. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. Matt Jaunich introduced the new Parks/Recreation/Community Education Director, Lynn Neumann. Ms. Neumann introduced herself to the Council and provided information on her background. PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor 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 March 9, 2021 Motion by Sebesta, second by Czmowski, to approve minutes as presented. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. CONSENT AGENDA CITY COUNCIL MINUTES March 23, 2021 (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 of Non -Waiver of Tort Liability Limits for General Liability (b) Consideration for Approval to Purchase a 2021 Felling Trailer from Titan Machinery for Creekside (c) Consideration for Approval of Collateral Assignment of Payment Under Redevelopment Agreement with KGB Cornerstone Commons LLC (d) Consideration for Approval of Resolution No. 15288 — Resolution Approving Site Plan at 225 Shady Ridge Road NW with Favorable Planning Commission Recommendation (e) Consideration for Approval of Resolution No. 15291 — Resolution Approving Site Plan for Police Station Facility Located at 205 Washington Avenue East with Favorable Planning Commission Recommendation (f) Consideration for Approval of Off -Site Gambling Permit for Hutchinson American Legion Post 96 on July 14, 2021, at 301 Ontario Street SE (Veterans' Memorial Field) (g) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Begnaud, to approve consent agenda. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. ASSESSMENT HEARING & PROJECT AWARD FOR 2021 PAVEMENT MANAGEMENT PROGRAM PROJECT (LETTING NO. 1, PROJECT NO. 21-01) �a) Approve/Deny Resolution No. 15289 - Resolution Accepting Bid and Awarding Contract b) Approve/Deny Resolution No. 15290 - Resolution Adopting Assessment Kent Exner, City Engineer, presented before the Council. Mr. Exner reviewed the project which includes improvements to Harrington Street SW, Clinton Avenue SW, Merrill Street SW, Church Street SW and Lyndale Avenue SW. Rec Center parking lot improvements are included within the program which is scheduled to start early May and hope to be completed by early June before the aquatic center opens. Street improvements will then begin in June. The project is scheduled to be completed by mid -September. Mr. Exner noted that seven bids were received and the low bidder was identified as Landwehr Construction of St. Cloud, Minnesota, with a bid of $1,712,276.00 which was approximately 17% lower than the final engineer's estimate. Mr. Exner spoke about the assessment rates applied and the practice that has been applied according to street width. This is a practice that was put in place several years ago on a project that had streets with varying street widths within the project. At that time, it was decided to apply credits for varying street widths to provide fairness amongst property owners. Mr. Exner explained that the practice is not identified within the City's assessment policy and therefore movinS forward most likely will not be applied to projects. Council Members voiced their agreement with Mr. Exner's approach. Mr. Exner spoke about assessment rates and terms for this project. 2 CITY COUNCIL MINUTES March 23, 2021 No members of the public addressed the Council. Motion by Czmowski, second by Begnaud, to close public hearing. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. Motion by Czmowski, second by Christensen, to approve Resolution Nos. 15289 and 15290. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. purpose o t is portion o t e agen a is to provi e t e ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 9. PUBLIC WORKS YEAR END REPORT Kent Exner, Public Works Director/City Engineer, provided the department's year-end report. Mr. Exner noted that the Public Works and Engineering Departments are comprised of engineering, streets & roadways, cemetery, airport, HATS facility, water, wastewater and storm water. Mr. Exner reviewed the core services and the primary services within each department. Mr. Exner also reviewed significant accomplishments in 2020 and major goals & objectives for 2021. Mr. Exner also spoke about information received from the community survey. He reviewed the pavement management system and spoke about utility rates. UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY POLICE DISPATCH FUNCTION LAYOFF SEVERANCE PROPOSALS AND PROVIDE DIRECTION FOR CITY ADMINISTRATION TO MOVE FORWARD WITH THE SEVERANCE PROGRAMS Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing explained that voluntary and involuntary severance proposals have been formulated for employees in positions that are proposed to be eliminated in conjunction with the termination of the City's emergency police dispatch communications function. These functions are proposed to be terminated no later than August 31, 2021. Ms. Ewing explained employee eligibility for the severance program and reviewed both the voluntary and involuntary severance proposals. There are currently six dispatch employees in the department — three full time and three part time. There is a possibility that two of those positions may be retained within the department's reception and records areas. Motion by Czmowski, second by Sebesta, to approve police dispatch layoff severance proposals. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Planning Commission Minutes from December 15, 2020 CITY COUNCIL MINUTES March 23, 2021 (b) City of Hutchinson Financial Report and Investment Report for February 2021 �c) Hutchinson Housing & Redevelopment Authority Board Minutes from February 16, 2021 d) Motor Vehicle 2020 Recap (e) 2020 Residential Leaf Vacuum Service Report NHSCELLANEOUS 12. STAFF UPDATES Tom Gifferson — Mayor Forcier asked if the speed trailer could be placed on 2nd Avenue SW near Park Elementary as a citizen informed him that motorists appeared to be going excessively fast. Chief Gifferson affirmed that the speed trailer could be placed in the area as requested. Matt Jaunich — Mr. Jaunich noted that he and other city officials are meeting with representatives from the League of Minnesota Cities this week. He also noted that the City and the Hutchinson Utilities Commission are three years into the PILOT agreement. The agreement states that after three years City and HUC representatives would meet to review how things are going. Mr. Jaunich asked for two volunteers from the Council for this meeting and review. Council Members Czmowski and Begnaud volunteered. 13. COUNCIL/MAYOR UPDATE Brandon Begnaud — Council Member Begnaud asked the Council's opinion on beginning to meet in the Council Chambers again in person as things are starting to open up a bit more. Matt Jaunich noted that April 15, 2021, was a date given by the governor's office as a "return to work date" for those organizations that had required employees to work from home. He noted that it is really the comfort level of the Council and staff could make accommodations in the Chambers to make Council Members feel the most safe. Mayor Forcier suggested perhaps meeting in person in the Chambers the first meeting in May. All Council Members noted they were comfortable meeting in person beginning the first meeting in May, other than Council Member Czmowski who noted he can't risk being in quarantine the busiest time of the year for his business so he will continue meeting virtually until he is fully vaccinated. Chad Czmowski — Council Member Czmowski asked when street sweeping would begin. Kent Exner noted that the street sweeper is out and about and the services have started. ADJOURNMENT Motion by Sebesta, second by Christensen, to adjourn at 6:40 p.m. Roll call vote was taken: Christensen — aye; Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration for approval of donation of surplus property (Resolution #15293) Agenda Item: Department: Information Technology LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Tom Kloss Agenda Item Type: Presenter: Tom Kloss Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Information Technology department has surplus property no longer needed for municipal operations. Staff is requesting approval to donate outdated surplus sound system equipment to Hutchinson Community Video Network (HCVN). HCVN is a Non -Profit organization serving the City of Hutchinson providing community access television. BOARD ACTION REQUESTED: Consideration to approve/reject donation of surplus property, Resolution # 15293 Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A RESOLUTION NO. 15293 RESOLUTION TO DONATE SURPLUS PROPERTY WHEREAS, the City of Hutchinson has accumulated surplus property; and, WHEREAS, the Hutchinson Policy for Donation of Surplus Equipment to a Nonprofit provides for donation of surplus property; THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT: The Hutchinson City Council hereby approves the donation of surplus items identified on Exhibit A to Hutchinson Community Video Network (HCVN), a Nonprofit organization serving the residents of Hutchinson Approved by the City Council this 13th day of April, 2021. ATTEST: Gary Forcier, Mayor Matt Jaunich, City Administrator Exhibit A Manufacutrer Model Serial Number White Instruments 4700 1/3 Octave Equalizer 2117 Yamaha Comp/Limiter GC2020BII IPO1132 Shure IFP16A 3124 Crown lCom Tech 400 411524 City of Hutchinson Policy for the Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors Pu ose The purpose of this Policy is to establish procedures for the Donation of Surplus Equipment by the City to a Nonprofit Organization as required by Minnesota Statue § 471.3459 and property donated to the City by suppliers or vendors. Scone This policy applies to all City departments that generate Surplus Equipment or which receive donations of property or dealer loaders by suppliers or vendors and governs the actions of all City employees and officials. Definitions "City" means the City of Hutchinson. Minnesota. "City Council" means the governing body of the City. "Dealer Loader" is a premium or other reward this used to encourage a retailer, like a liquor store, to develop a special display or product offering, or when purchasing a certain quantity of a product. "Donation" means to contribute, donate or give Surplus Equipment at no cost to a Nonprofit Organization that serves a public purpose and benefits its community as a whole or property given to the city or its various departments by vendors or suppliers. "Eligible Organization" means a Nonprofit Organization serving one or more of the following functions: cultural, historical, educational, safety, social services, environmental or economic. "Fair Market Value" means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all relevant facts. "Liquor Store" means the Liquor Hutch, the City's Municipal Liquor Store "Nonprofit Organization" means an organization formed under Section 501(c)(3) of the Internal Revenue Code. "Policy" means this Policy adopted by the City Council. "Surplus Equipment" means equipment used by the City's public works department, and cellular phones and emergency medical and firefighting equipment that is no longer needed by the City because it does not meet industry standards for emergency medical services, police, or fire departments or has minimal or no resale value. "Surplus Equipment Form" means the form attached as Exhibit I to this Policy that must be filled out by a Nonprofit Organization requesting a Donation of Surplus Equipment. Procedure The City shall determine all Surplus Equipment and may offer it for Donation in conformance with the following guidelines: 1. Identify Surplus Equinmen_t. Department directors are responsible for monitoring their equipment and shall identify and report all Surplus Equipment to the City Administrator on at least an annual basis. Donations from suppliers or vendors shall be reported to the city Administrator within one week of receipt. 2. Identifying Dealer Loaders and/or Donations from Suppliers or Vendors. Any Dealer Loader or donation from a supplier or vendor must first be officially accepted by the City Council through a resolution prior to it being considered for a donation or transfer to another department. 3. Determine the Fair Market Value of Surplus Equipment and Dealer Loaders/Donations from Suppliers or Vendors. The City Administrator shall work with City staff to determine the Fair Market Value of the Surplus Equipment and Dealer Loaders/donations from suppliers or vendors. 4. City Council Declaration. The City Administrator will forward a list of the Surplus Equipment and Dealer Loaders or donations from suppliers or vendors with each item's Fair Market Value to the City Council who shall approve or deny the Surplus Equipment, donations from suppliers or vendors, and Dealer Loaders as eligible for Donation. The City has no obligation to make a Donation of Surplus Equipment or Dealer Loaders or donations from suppliers or vendors. Surplus Equipment and Dealer Loaders or donations from suppliers or vendors that are not donated may be sold, recycled or discarded in the discretion of the City Administrator. 5. Donation. After the City Council has determined the Surplus Equipment or Dealer Loaders or donations from suppliers or vendors is eligible for Donation, the City Administrator is responsible for coordinating the Donation of the Surplus Equipment or Dealer Loaders or donations from suppliers or vendors in accordance with the terms of this Policy. 6. Transfer between Departments. All Surplus Equipment or Dealer Loaders or donations from suppliers or vendors must first be considered for transfer between departments for the benefit of the City. 7. Awards to eligible organizations. Donations or Dealer Loaders, outside of liquor store product, to the City from vendors or suppliers may be awarded to eligible organizations as a result of promotional activities sponsored by the various departments and enterprise funds of the City. Items may also be considered for transfer to another department within the City. No city employee or elected official or his or her immediate family member is eligible to receive such award. 8. Advertisement. Surplus Equipment or property donated to the City from suppliers or vendors shall be posted as eligible for Donation on the City's website. The City may also use other reasonable means to notify Eligible Organizations about the availability of Surplus Equipment or property donated to the City from suppliers or vendors. The City shall wait at least 30 days after advertising Surplus Equipment before approving any Donation. 9. Surplus Equipment Form. Eligible Organizations interested in Surplus Equipment or property donated to the City from suppliers or vendors shall fill out a Surplus Equipment Form and submit the form to the City Administrator. 10. ApRroval of Donation. If the Surplus Equipment or property donated to the City from suppliers or vendors has a Fair Market Value less than $2,500.00, the City Administrator shall approve the Donation to an Eligible Organization, subject to review by the City Council. If the Surplus Equipment has a Fair Market Value greater than $2,500.00, the City Council must approve the donation by a majority vote of the City Council. 11. Prioritization of Donations. If more than one Eligible Organizations requests a Donation for the same Surplus Equipment or property donated to the City from suppliers or vendors, the City shall consider factors it deems relevant including how the Surplus Equipment or property donated to the City from suppliers or vendors will be used, the benefit to the Eligible Organization, the impact on the City, how the Donation will accomplish goals of the City Council, and any previous Donation to the Eligible Organization. 12. Conflict of Interest. All City employees and elected officials are prohibited from taking possession of any Surplus Equipment or Dealer Loaders or property donated to the City from suppliers or vendors on behalf of an Eligible Organization. 13. As Is. A Donation of Surplus Equipment or property donated to the City from suppliers or vendors is made "as is" with no warranty, guarantee or representation of any kind, express or implied, as to the condition, utility, or usability of the Surplus Equipment offered. The Surplus Equipment or property donated to the City from suppliers or vendors may be defective and cannot be relied upon for safety purposes. 14. Title. The City Administrator shall cause any title or other ownership documents to be transferred to the Eligible Organization at the time of transfer. Any fees required to transfer the Surplus Equipment or property donated to the City from suppliers or vendors are the responsibility of the Eligible Organization. 15. Transportation. In the Surplus Equipment Form, the Eligible Organization must provide a detailed plan for transporting the Surplus Equipment or property donated to the City from suppliers or vendors from the City to the Eligible Organization. The Eligible Organization must pay all expenses associated with the transportation of the Surplus Equipment. 16. Delegation. The City Administrator may delegate specific responsibilities for implementing this Policy. 17. Documentation. The City Administrator shall document the Donation of all Surplus Equipment or property donated to the City from suppliers or vendors and shall keep such records in accordance with the City's Records Retention Schedule. 18. Review of Policy. The City Administrator is responsible for maintaining and reviewing this Policy. Any changes to this Policy must be approved by the City Council. Exhibit I Surplus Equipment Form Organization Name: Hutchinson Community Video Network Organization Address: 100 Jefferson St SE Hutchinson, MN 55350 Organization Website: hcvnonline.com (Attach proof of status as a nonprofit corporation under Section 501(c)(3) of the Internal Revenue Code.) Organization Purpose: Public Access Television Point of Contact Name: Liz Marcus Address: 100 Jefferson St SE Hutchinson, MN 55350 Email: hcvnsupport@hutchtel.net Phone: 320-587-3113 City Surplus Equipment of Interest: See Attached Listing How will the requested Surplus Equipment benefit your organization? Backup hardware for legacy systems How do you plan to transport the surplus property from the City to your location? In a tote! DISCLAIMER OF WARRANTIES. The City makes no agreement, warranty or representation, either express or implied, as to the value, design, condition, merchantability or fitness for any particular purpose or use of the Surplus Equipment or property donated to the City from suppliers or vendors by the recipient or any other user. The recipient acknowledges the Surplus or property donated to the City from suppliers or vendors may be defective and that it cannot be relied upon for safety purposes. The recipient has a duty to inspect the Surplus Equipment or property donated to the City from suppliers or vendors before it is used for any purpose. The recipient acknowledges that the City is not a manufacturer of the Surplus Equipment or property donated to the City from suppliers or vendors or a dealer therein; that the Surplus Equipment or property donated to the City from suppliers or vendors is being provided "as -is" and "with all faults," it being agreed and understood that all of the aforementioned risks are to be borne by the recipient or user of the Surplus Equipment. In no event shall the City be liable for any damages in connection with or arising out of the recipient's or any other person's or entity's use of the Surplus Equipment or property donated to the City from suppliers or vendors. I acknowledge that the Donation of any Surplus Equipment or property donated to the City from suppliers or vendors to my organization is subject to the City's Policy for Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors. I have authority to request a Donation from the City and to bind my organization to the terms of this form. Signature of Applicant Date 4/13/2021 Farm Request for Taxpayer Give Form to the (Rev. November2017) Identification Number and Certification requester. Do not Department of the Treasury send to the IRS. Internal Revenue Service ► Go to wwwJrs.gov1FormW9 for instructions and the latest information. 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. Hutchinson Community Video Network, htc. 2 Business name/disregarded entity name, if different from above 3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the 1 4 Exemptions (codes apply only to following seven boxes. certain entities, not individuals; see cis CL instructions on page 3): o ElIndividuallsole proprietor or El C Corporation ElS Corporation ❑ Partnership ❑ Trust/estate m single -member LLC Exempt payee code (if any) m c ao ,�. :p ❑Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) ► p P Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check Exemption from FATCA reporting i LLC if the LLC is classed as a single -member LLC that is disregarded from the owner unless the owner of the LLC is code if an ri <ci another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member LLC that ( - is disregarded from the owner should check the appropriate box for the tax classification of its owner. m ❑ Other (see instructions) Do- yppNesroaccountsm�masxdo rs meu.$) c' 5 Address (number, street, and apt. or suite no.) See instructions. Requester's name and address (optonal) d 100 Jefferson Street SE 6 City, state, and ZIP code Hutchinson, MN 55350 7 List account number(s) here (optional) 97*1 Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid social security number backup withholding. For individuals, this is generally your social security number (SSN). However, fora resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TiN, later. or Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and I Employer identification number Number To Give the Requester for guidelines on whose number to enter. 4 1 - 1 5 2 2 6 OM311 Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that 1 am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. 1 am a U.S. citizen or other U.S. person (defined below); arid 4. The FATCA code(s) entered on this form (if any) indicating that i am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later. Sign I Signature of Here U.S. person ► General InstructiorW Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www irs.gov1FormW9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following. • Form 1099-INT (interest earned or paid) Date► 03'2-2—/ 2 • Form 1099-DIV (dividends, including those from stocks or mutual funds) • Form 1099-MISO (various types of income, prizes, awards, or gross proceeds) • Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) • Form 1099-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • Form 1098 (home mortgage interest),1098-E (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. !f you do not return Form W-9 to the requester with a TiN, you might be subject to backup withholding. See What is backup withholding, later. Cat. No. 10231X Form W-V (Rev. 11-2017) c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15295 amending Resolution 15158 Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Per State Statutes 435.193 and 435.195, senior citizens 65 years or older, disabled citizens, active duty military reserves or a active duty Minnesota national guard members may apply for deferred payment of special assessments for any homestead property. Deferral terminates upon either: (a) the death of the owner, provided that the spouse is otherwise not eligible for the benefits hereunder; (b) the sale, transfer or subdivision of the property or any part thereof; (c) if the property should for any reason lose its homestead status; or (d) if for any reason the taxing authority deferring the payments shall determine that there would be no hardship to require immediate or partial payment. In addition, City Policy number 2.14 allows senior citizens 65 years or older and disabled citizens to apply for reduced refuse rates. Citizens applying for either special assessment deferral or a reduced refuse rate must comply with income guidelines as defined by the US Department of HUD. HUD defines those guidelines for 2021 as $28,100 per year for one person and $32,100 per year for a married couple, joint tenants or tenants in common. The previous annual income guidelines for guidelines for 2020 were $26,750 per year for one person and $30,600 per year for a married couple Citizens must also comply with an asset limitation of $30,000, excluding the homestead and automobile. Each year Finance reviews the income guidelines by HUD and amends the established income guidelines via resolution. BOARD ACTION REQUESTED: Approve Resolution 15295 amending the established income guidelines & asset limitations for Senior and Disabled Citizens, Active Duty Military Reserves or National Guard deferred assessments and/or Seniors reduced refuse rate. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON MN RESOLUTION NO. 15295 AMENDING RESOLUTION NO. 15158 ESTABLISHING INCOME GUIDELINES & ASSET LIMITATIONS, FOR SENIOR CITIZENS 65 YEARS OR OLDER, DISABLED CITIZENS, ACTIVE DUTY MILITARY RESERVES OR NATIONAL GUARD DEFERRED ASSESSMENTS AND SENIOR CITIZENS REDUCED REFUSE RATE WHEREAS, the Minnesota Statutes provide tax deferral of homestead property for senior citizens 65 years of age or older, or a person(s) on disability as defined by the Social Security Administration, or for members of the National Guard or military reserves in active service, for whom it would be a hardship to make payments, and WHEREAS, the home owner can make application for deferred payment of special assessments on forms which can be obtained from the City Administrator's office, and WHEREAS, the home owner/renter can make application for reduced refuse rate on forms which can be obtained from the City Administrator's office. NOW THEREFORE, the City Council has established the following income guidelines, asset limitations, and verification requirements for applications for deferred assessments and/or reduced refuse rates: 1. To be granted to person(s) with a low income of $28,100.00 per year for one person and $32,100.00 per year for a married couple, joint tenants or tenants in common. 2. To be granted to person(s) with an asset limitation of not to exceed $30,000.00, excluding the homestead and automobile. 3. Deferred assessments and/or reduced refuse requests may only be applied for if the following documents are submitted at the time of said application. A. Federal Income Tax Form 1040, 1040A, 1040EZ; and B. Minnesota Property Tax Refund Form M-1PR Every two years the City can request said information to continue deferral of assessments or reduced refuse charges; existing deferred assessments and reduced refuse accounts shall submit the same documentation to continue the reduced charges. 4. The right of deferment is automatically terminated if. A. The owner dies and the spouse is not otherwise qualified; B. The property or any part thereof is sold, transferred, or subdivided; C. The property should lose its homestead status; or D. If for any reason the City determines that there would be no hardship to require immediate or partial payment. Adopted by the Hutchinson City Council this 131 day of April, 2021. ATTEST: Matthew Jaunich, City Administrator Gary Forcier, Mayor HUTCHINSON CITY COUNCIL Cttyofl Request for Board Action 7AL Zwl,7 Agenda Item: Consideration of Revisions to City Policy 3.34 Telework Policy Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In June 2020, the Hutchinson City Council approved City Policy No. 3.34 Telework Policy. The policy was enacted to address City of Hutchinson employees working from home due to the COVID-19 pandemic and the Stay at Home and Stay Safe Orders issued by Governor Tlm Walz. At the time of approvial in June 2020, the policy addressed temporary flexible work environment arrangements as part of the City's strategy to continue the City operations during a Pandemic or other emergency situations. As was also noted at that time, staff indicated that the policy could be amended in the future to allow telework in non -emergency situations, if this meets the operational needs of the City. This is now the case and the policy has been revised, accordingly. Attached are the proposed, revised City Policy 3.34 - Telework Policy for consideration by the City Council. BOARD ACTION REQUESTED: Consideration and adoption of City Policy No. 3.34 Telework 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: Policy No. 3.34 CITY OF HUTCHINSON POLICY -PERSONNEL- TELEWORK POLICY NO. 3.34 DATE '�� APM 2021 SOURCE Administration 8 _Pages Objective The purpose of this policy is to establish the rules and conditions under which short and long-term telecommuting may occur in order to maintain acceptable practices regarding the use and protection of City of Hutchinson Information Resources. Scope This policy applies to all regular employees of the City of Hutchinson. Definitions and Key Terms Terms Definitions Core hours The designated period of each workday when employees are assigned to work. Principal work location The worksite to which an employee is assigned, generally a City of Hutchinson facility or property. Telework A formalized work arrangement that allows an employee to perform work on a regular, recurring basis at a telework location that is not the employee's principal work location. Telework agreement A document signed by an employee and the Appointing Authority or their designee and the employee's director/manager that outlines the terms of the telework arrangement. Telework location An approved alternative worksite in which an employee is authorized to conduct telework. In most cases, the telework location will be an employee's home. Teleworker An employee who has entered into a telework agreement with the City of Hutchinson and works at a telework location. GENERAL STANDARDS AND EXPECTATIONS The use and approval of telework is at the sole discretion of the City Administrator upon recommendation by the department director, and the City Administrator may terminate a telework agreement at -will, at any time, with or without cause or notice. Not all work situations are appropriate for telework, nor is telework appropriate or possible for all employees. A department director that recommends telework must ensure that an appropriate telework location and an appropriate framework of expectations exists before a telework agreement is entered into with an employee, as outlined below. I. EMPLOYMENT CONDITIONS a- Compliance with Federal/State Employment Laws. Telework arrangements must comply with all applicable state and federal employment laws. This includes the Fair Labor Standards Act (FLSA) which regulates the payment of overtime for FLSA non-exempt employees. Job Duties and Responsibilities. A teleworker remains responsible for all the job duties, responsibilities and obligations of their position while teleworking. The terms and conditions of employment, as specified in the applicable City policies, do not change based on telework status. II. EMPLOYEE EXPECTATIONS a. Personnel & Technology Policies. All policies that that apply to an employee's specific position/duties inside the office also apply to the employee when working at the remote location. a=b.Personal Activities. Telework hours are regular work hours and may not be used as a substitute for personal activities, such as dependent care or errands. Just as with regular work hours, teleworkers are expected to follow City vacation and sick leave policies and procedures to request time off from telework to engage in non -work activities. #vc.Work Schedule/Meetings. Prior to entering into a telework agreement, the supervisor and teleworker must discuss the work schedule, including normal work day hours, breaks, and Core Hours, and use of vacation and sick leave and earned compensatory time. The work schedule must comply with the FLSA, and City policies and procedures. Any changes to the work schedule must be communicated to and approved by the supervisor. a. Unless excused by the supervisor, the teleworker must attend all assigned meetings, including those which normally would be held on a telework day. The supervisor will determine whether the teleworker's attendance at the meeting must be in -person, or if the teleworker may attend the meeting remotely from the telework location. &d.Location and Travel a. Normal commute time between a telework location and the principal work location is not work time. If occurring during the teleworker's normally scheduled work hours, travel time between the telework location and the principal work location is considered work time. For example, if a teleworker begins work at the telework location at 8 a.m., and then travels to the principal work location beginning at 10 a.m., travel time would be considered work time. Travel home from the principal work location is not work time, unless the teleworker continues to perform work activity from the telework location after returning from the principal work location. Mileage between the Telework Location and the principal work location shall be considered commuting mileage and is not subject to reimbursement. b. If the teleworker is working at an alternative work site (not the telework location and not the principal work location), the mileage from the alternative work site to the principal work location shall be reimbursable in accordance with City policy. Any travel to the alternative work site is considered work time if it occurs during the teleworker's normal work hours. d�e.Communications. Teleworkers must be reachable by customers, co-workers, directors, managers, supervisors, and City leadership during agreed -upon hours. Teleworkers must notify assigned office staff and/or their supervisors if they leave their telework location during work hours, just as they would if they worked in the principal work location. They must also notify the supervisor if they are not performing work due to vacation or sick time and must follow the normal procedures for requesting other time off. e'f Supplies and Expenses. Supplies needed for the telework location will be obtained through the normal supply request procedures. A teleworker must seek prior approval from the supervisor for expenses that will be incurred. Approved expenses will be reimbursed in accordance with existing City policies. 4g.Responsibilities When Telework Location is in the Home. The teleworker is responsible for establishing and maintaining a safe and adequate telework location in the home. The designated telework location may be subject to review and approval by the supervisor to ensure that it is conducive to performing work. The teleworker will be responsible for all costs related to modifications of the telework location including, but not limited to remodeling or electrical modifications. In -person business meetings may not be held in the home telework location; meetings may be conducted in City facility meeting spaces or via video conference, phone conference, or other electronic means. g4I Privacy and Security. Teleworkers must make arrangements with their supervisors regarding any necessary access to confidential or sensitive information while working at a telework location. The information type will be documented in the telework agreement before the teleworker may take the information from the principal work location. Teleworkers are responsible for protecting the privacy and confidentiality of data and information at their telework location, which includes compliance with security policies. Teleworkers must ensure the security of data and information that is transported to and from their telework location. Any confidential or sensitive information that is copied from server drives to portable media or computing devices shall be encrypted. 4:6i. Insurance. Any insurance for City -owned equipment is the responsibility of the City. The City is not responsible for insuring the telework location. Teleworkers are responsible for purchasing personal insurance for employee -owned equipment and for the telework location, if desired. The City is not responsible for any loss or damage to any employee -owned equipment. i�LReturn of Property. Any City -owned property used specifically for telework purposes, documents, and other information must be returned upon termination of the telework agreement. j� .Notice to Supervisor. Teleworkers are responsible for promptly notifying their supervisor and IT of an equipment malfunction or failure of either City -owned equipment needed to do assigned work. If the malfunction prevents the teleworker from performing assigned tasks, the teleworker must notify the supervisor immediately. k 1L Performance. Teleworkers are responsible for maintaining satisfactory work performance. Declining or unsatisfactory work performance may result in termination of the telework agreement. 4m. Closure of City Facility. If a City facility is closed due to a natural or human -made emergency, any employee scheduled or able to telework is expected to work as normally scheduled. fn�n.Taxes. Federal and state tax implications of teleworking and use of the home as a telework location are the responsibility of the teleworker. III. SUPERVISOR EXPECTATIONS a. Communication Plan. The supervisor must work with the teleworker to develop an effective communication plan. The communication plan should ensure that the teleworker effectively manages their workload and that teleworking does not have a negative impact on the teleworker's managers, supervisors, co-workers, team, customers, or the City's operations. In addition, the supervisor should set expectations for responding to emails and phone calls during the telework day and maintain regular communication with the teleworker. b. Performance Expectations Plan. The supervisor must develop a plan that defines performance expectations and deliverables, and review the plan with the teleworker. c. Emergency Plan. The supervisor and teleworker must develop emergency and back up plans with necessary phone numbers and a messaging plan in case of an emergency (e.g. equipment failure). Meetings. The supervisor should communicate planned meeting schedules in advance to permit teleworkers to adjust their work schedules and work location accordingly. Remote meetings should be scheduled and in -person meetings are required only when absolutely necessary. e. Reporting to HR. Upon approval, the telework agreement is forwarded to and filed by the HR Department. IV. EQUIPMENT AND MATERIALS a. City -Provided Equipment. The City may provide, at its sole discretion, computer hardware equipment, software, and telephone service deemed necessary for the teleworker to perform assigned work at a telework location. b. Record of Equipment. IT will maintain a record of City -owned hardware, software, and other equipment located at the telework location. c. Employee -Owned Equipment. The City does not have a Bring Your Own Device (BYOD) program. Personal equipment and devices are not allowed to connect to the City network. d. Installation and Repair of City -Owned Equipment. The City is responsible for the installation, testing, maintenance, and repair of City -owned equipment and upgrades of software. City IT staff will not report to a telecommuter location to install City owned hardware. e. Repair of Employee -Owned Equipment. The City is not responsible for the maintenance and repair of employee -owned equipment, hardware and software used for telework. f. Business Use Restrictions. All equipment, hardware and software furnished to the teleworker remain the property of the City and are subject to the same business use restrictions as if the property was located on City premises. To ensure hardware and software security for City -owned 4 equipment, all software used for teleworking must be approved by the City and the It Director. City - owned software cannot be installed on employee -owned hardware. Employee -owned software cannot be installed on City -owned hardware. Only employees may use City owned hardware and software. Telework equipment is not a replacement for personal equipment and may only be used for occasional and brief personal uses allowed in the IT policy. Teleworkers must continue to comply with City technology policies. g. The teleworker is responsible to ensure that non -employees do not access City of Hutchinson data or use City of Hutchinson equipment. The equipment provided is to be used for work purposes only and not to double as a personal home computer. h. Personally owned devices, including but not limited to U58 memory, portable hard drives, mobile phones, MP3 players, Wods/iPads, and smart gadgets, are not allowed to be connected to City of Hutchinson equipment, including wireless eluetooth connections. V. DATA AND SECURITY a. Data Practices Act. Teleworkers must follow all applicable provisions of the Minnesota Government Data Practices Act ("MGDPA") and City data privacy policies when performing work at the telework location. The teleworker and supervisor must discuss the type and form of data which will be taken to and from the telework location and must agree on the security and transfer process necessary to meet the needs of the City, to protect the security of the data, and to comply with the MGDPA. b. Data Requests and Retention. Data created and maintained during a telework arrangement generated for the purpose of conducting City business is subject to the MGDPA and the state's records management statute, regardless of whether the telework is performed using City -owned or employee -owned equipment. This means the teleworker is responsible for following proper retention and disposal procedures, such data remains the property of the City, and the teleworker must return all such data to the City upon request or upon the teleworker's separation from employment the termination of the telework agreement. Data may only be saved on City owned hardware including any cloud services. VI. TELEWORK SITE a. Extension of the City. The telework location is considered an extension of the City during the agreed -upon working hours. The designated telework location must accommodate any equipment to be used in work performed and the teleworker must protect the work space from hazards and dangers that could affect the teleworker or the equipment. The City may, at its discretion, send a representative to visit the telework location, with advanced notice, to ensure that the equipment and work area are safe and free from hazards. b. City -owned Equipment. The telework location must accommodate any equipment to be used in work performed and the teleworker must protect the telework location from hazards and dangers that could affect the teleworker or the equipment. The teleworker is responsible for taking appropriate steps to minimize damage to City -owned property at the telework location. c. Third Party Liability. The City does not assume responsibility for injury or property damage to third parties that may occur at the telework location. Business meetings may not be held at the telework location. Workers' Compensation. An employee is covered by the state's Workers' Compensation laws while acting in the course and scope of employment while in telework status. Any injury that occurs within the course and scope of employment must be reported to the supervisor immediately and forwarded to Human Resources immediately, using the City's standard workplace injury reporting process. The employee's designated telework location is considered an extension of the City work space only during scheduled teleworking hours for purposes of workers' compensation. VII. Internet Connection a. Personnel must not connect to an unsecured Wi-Fi network with City of Hutchinson equipment b. Wi-Fi connections must use strong encryption. As of 2-2021 WPA2 or higher. c. Wireless networks must be secured with a strong password, consisting of 16 or more characters. d. When possible, the home network used should be isolated from other devices on the home network. e. When connecting to the City Network, personnel must use the VPN account provided bV the City of Hutchinson IT Department f. Users must not connect to another wireless network and the City network simultaneously. Split tunneling is prohibited. g. A high-speed internet connection is required. Personnel will provide the internet service at their own expense. The internet connection must be of sufficient bandwidth to allow the employee to efficiently perform their regular job functions. "'�I.TELEWORK APPROVALS The City Administrator makes all final decisions authorizing telework. The City will use general telework criteria to assess all telework requests. The City retains the right to approve or deny requests at its sole discretion. Supervisors are responsible for monitoring teleworkers' performance to ensure that teleworkers continue to meet customer and City business needs and performance expectations. Examples of possible review/approval criteria could include: a. Job Related Criteria i. Overall business needs ii. Ability to provide adequate supervision of the employee remotely iii. The effects of teleworking on customer service iv. The costs to be saved or incurred v. The need or availability of tools and equipment vi. The existence of well-defined job objectives and output that can be assessed vii. The teleworker can be reached by coworkers and customers and be responsive to calls and other types of correspondence viii. A need for sensitive data that cannot be taken off -site; the ability or lack of ability to safeguard necessary data ix. Feasible method to accurately track and record time worked for payroll processing and FLSA / state law compliance b. Performance Related Criteria i. The employee's current and past job performance ii. The employee's communication skills iii. The employee's ability to manage priorities and work independently iv. Attendance history (excluding Family and Medical Leave Act (FMLA) absences, other statutorily - protected leaves, and Americans with Disabilities Act (ADA) accommodations) v. The employee's ability to complete work projects with minimal direct oversight or supervision V"IX. TELEWORK AGREEMENT a. Agreement required. All telework arrangements must include a written telework agreement. At minimum, the agreement must address the following: a. Employee performance expectations and monitoring b. Work hours and schedule c. Telework location d. Equipment and supplies e. Workers' compensation f. Responsibility for work area and equipment g. Data privacy and security h. Communication and availability i. Employment conditions j. Expense reimbursement b. Signature. A telework agreement must be signed by the City Administrator, director and employee prior to the start of teleworking. c. Cancellation. The telework agreement can be changed or cancelled by the City at -will, at any time, with or without cause or notice. A telework agreement should be cancelled when the teleworker has performance issues, if there is a change in job responsibilities requiring the employee to work in the principal work location, or when the needs of the City are not being met. The teleworker can also cancel the telework agreement at any time. d. Changes to Telework Agreement. Any changes to the telework agreement must be reviewed and approved by the director and City Administrator who have the discretion to approve or reject any proposed changes. e. Renewal of Telework Agreement. The telework agreement expires no later than one year after its effective date. At least annually, the director and teleworker must discuss whether to request to renew the telework agreement. Telework agreements must be reviewed annually or as part of the annual performance review process, and a new Telework agreement signed at that time, if the telework is to continue. Revision History Revision History should include issue date and most recent revision date, with summary of any significant changes. Review of policy should be conducted at least annually. Date Summary of Changes Change Agent May 2020 New Policy Brenda Ewing March 2021 Security review and updates to Tom Kloss convert policy from Pandemic Policy to General Policy FA CitQ MIMI -------------- -------------- MALLLLUJ� 1 uRd-erstaR d- that supplies need-e- d- fe- r te-le-mon- rk voill be- a- btaiRe d- through the ROFFAal SUPPIV Feguest ;-IRd- F . . . . appFoval fFQFA the supeFYOSOF, and appFoveGI empeRses voill 1 wRdearstand- that the City may GanGel the affeement immediately; A fithQ, it RQtiGe, OF 1 May - - - tarmaRata the telewQFk affeemeRt with reaseRable Ratice ta tha City- WpoR teFFAiRatioR, FPt'-'FR 2" Gity GWROGI OGIMOPFA@Rt tQ th@ Gity OFAFA@Gloatgly OF faGilitate the C.O%y!- HUTCHINSON CITY COUNCIL Cttyofl Request for Board Action 7AL Zwl,7 Agenda Item: Consideration of 2021 Job Evaluation & Compensation Study Market List Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Matt Jaunich/Brenda Ewird Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: With the 2021 budget process, management recommended that a Job Evaluation and Compensation Study be completed, and the funds for such a project were approved with the 2021 budget. A major component of the study includes surveying the communities included in the City of Hutchinson defined market. We define our market as 29 Cities and Counties comparable in size, type of services delivered, and where the City's talent pool exists. Attached is the proposed market to be used for the 2021 study. This list is substantally the same as the list used in 2016 during our most recent study, withthe following changes: 1. Delete the cities of Hastings and Champlin 2. Add the cities of Bufalo and Monticello that are closer inproximity and populaiton to the City of Hutchinson BOARD ACTION REQUESTED: Consideration and approval of the revised Market List for the 2021 job evaluation and compensation study for the City of Hutchinson. 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: 2021 COMPENSATION STUDY City of Hutchinson Peer Group City of Hutchinson Peer Group Name Population Name Population Fairmont 10,299 Willmar 20,226 Waconia 13,277 Northfield 20,494 Worthington 13,522 Flaitings New Ulm 13,562 Farmington 23,123 Brainerd 13,755 Meeker County 23,256 Fergus Falls 13,766 Faribault 23,912 Marshall 13,835 Eh Iin 24-,2-31 Monticello 13,886 Austin 25,679 Alexandria 14,156 Chanhassen 26,278 Hutchinson 14,282 Owatonna 26,314 Renville County 14,588 Prior Lake 27,005 Sibley County 14,899 Winona 27,252 Bemidji 16,318 Chaska 27,692 Red Wing 16,443 McLeod County 35,963 Buffalo 16,558 Carver County 107,179 Albert Lea 18,132 Wright County 138,531 IPopulation Data Source: 2019 Minnesota State Demographer Market Definition: 29 Cities and Counties comparable in size, type of services delivered, and where the City's talent pool exists c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Jaycee Women's Park Lease Agreement Agenda Item: Department: PRCE LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Lynn Neumann Agenda Item Type: Presenter: n/a Reviewed by Staff ❑� Consent Agenda 0 Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: During a fundraising effort by a group of local neighbors to improve the playground equipment, it was discovered that the land in which Jaycee Women's Park is located on is property of the Hutchinson Independent School District #423. Jaycee Women's Park is located at 1050 Goebel Street SW. In efforts to continue to provide the neighborhood playground, the School District and the City of Hutchinson have agreed upon the attached Real Estate Lease Agreement. The lease agreement is a fifteen year lease with an additional five-year extension at the end of the fifteen years, if neither party wants to terminate the lease at the end of year fifteen. The proposed lease agreement will be presented to the School Board on Monday, April 12th for approval. Staff is requesting City Council authorization for the Mayor and City Administrator to sign the lease agreement on behalf of the City of Hutchinson. If there is any questions or need additional information, Lynn Neumann will be at the City Council meeting. BOARD ACTION REQUESTED: Approve lease agreement with Independent School District #423 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Real Estate Lease Agreement This real estate lease agreement (the "Agreement") is made this day of , 2021 by and between Hutchinson Independent School District Number 423, 30 Glen St. NW., Hutchinson, MN 55350 ("Landlord") and City of Hutchinson, Minnesota having an address of 111 Hassan St. SE., Hutchinson, Minnesota, 55350 ("Tenant") and is to allow tenant to maintain and operate a playground. 1. Leased Premises. Landlord shall lease to tenant and tenant shall lease from landlord, for good and valuable consideration which the parties agree is sufficient, pursuant to the terms of this agreement, an area of land in the City of Hutchinson, McLeod County, Minnesota, specifically described as: Lot One (1), Block One (1) and PARK in SCHOOL DISTRICT PLAT according to the recorded plat thereof on file and of record in the Office of the Registrar of Title, McLeod County, Minnesota. EXCEPTING THEREFROM THE FOLLOWING DESCRIBED LAND: Commencing at the southwest corner of said Lot 1; thence South 89 degrees 55 minutes 59 seconds East, along the south line of said Lot 1, a distance of 729.15 feet to the southeast corner of said Lot 1; thence North 0 degrees 04 minutes 01 seconds East, along the easterly line of said Lot 1, a distance of 293.60 feet to the point of beginning of the land to be described; thence South 89 degrees 55 minutes 59 seconds East, along a southerly line of said Lot 1, a distance of 75.00 feet; thence North 0 degrees 04 minutes 01 seconds East, along the easterly line of said Lot 1, a distance of 178.16 feet to an angle point in said lot line; thence westerly, along a northerly line of said Lot 1, a distance of 75.69 feet along a curve not tangential to the last described course, said curve is concave to the south, has a radius of 1323.24 feet, a central angle of 3 degrees 16 minutes 39 seconds and the chord of said curve bears North 82 degrees 13 minutes 15 seconds West; thence South 0 degrees 04 minutes 01 seconds West a distance of 188.31 feet to the point of beginning. 2. Term and renewal. The term of this lease shall be 15 years from the date indicated above. This lease shall automatically renew for an additional five-year period unless a party to this agreement notifies the other prior to the commencement of the 15tn year of this lease that the notifying party objects to the lease being renewed. 3. Improvements of The Leased Premises. a. There is currently playground apparatus on the site. The parties recognize that the existing apparatus is the property of the tenant and all apparatus and recreational equipment added to the site is the property of the tenant. b. During the term of this lease, the tenant shall have complete control over all playground apparatus and equipment or related recreational facilities on the site including the right to remove or add to equipment and facilities. Tenant shall have the right to alter the site to construct footings and other fixtures and take all steps necessary for the safe installation and maintenance of the recreational facilities on the site. c. The tenant shall have the right to enter the property at any time for the purpose of improving or maintaining the site or the recreational facilities located thereon. d. Upon the termination of this lease, the improvements to the site shall be removed from the property and tenant shall return the site to the condition it was prior to the installation of any apparatus or equipment. 4. Insurance. At all times during the term of this lease, tenant shall maintain in full force a general liability insurance policy covering tenant's operations, activities and liabilities on the leased premises, having singly or in combination limits of not less than $2 million in the aggregate or the amount of the maximum tort exposure set for governmental entities under Minnesota law, whichever is greater. Such policy shall name the landlord as an additional insured under such policy. Upon landlord's request, the tenant shall give landlord a certificate of insurance evidencing that the insurance required under this agreement is in force. 5. Liability to Third Parties and Risk of Loss. Tenant shall hold landlord harmless from any liability (including reimbursement of landlord's reasonable legal fees and all costs) for death or bodily injury to third parties, to the extent such injury is caused by the fault of the tenant or any of the tenant's agents, servants, employees or licensees. It is understood and agreed that all property kept, installed, stored, or maintained in or upon the leased premises by the tenant shall be so installed, kept, stored, or maintained at the risk of the tenant. Landlord shall not be responsible for any loss or damage to the equipment or recreational facilities located on the site stemming from any cause whatsoever. 6. Naming Rights. The tenant shall have the right to sell naming rights to the site and any renumeration for the sale of such naming rights shall be the sole property of the tenant. Tenant shall also have the right to construct signs on the premises advertising the name of the individual or entity to whom the naming rights have been sold. Mayor City of Hutchinson Hutchinson Independent School District Number 423 Board Chair City Administrator Secretary HUTCHINSON CITY COUNCIL Cttyofl Request for Board Action 7AL Owl,7 Agenda Item: Short -Term Gambling License - Hutchinson Rotary Foundation Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Hutchinson Rotary Foundation has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding on June 10, 2021, at Rotary Park. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Hutchinson Rotary Foundation on June 10, 2021.. 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 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications are to be received at least 30 days before event in order to be considered 4 Short Term Date(s)-.NjYje jD �ba - �y� 12U. Fee: $30.00 � Month'Den.VYear - Afonth/DavlYear Ur 1*5f�3 A2&- s-52 915a Phone Number ) ddress where regular meeting are held City Rtate zip Federal or State ID: Day and time of meetings? • �"t'+ Is this organization organized under the laws 6rte State of Minne ta? # yes ❑ no How long has the organization been in existence? How ma members in the organization? 027.>— What is the purpose of the organization? In whose custody will organization records be kept? Name ,,�PAh'one Number L Address Cirr State z� Duly Authorized Officer of the Organization Information True Name Residen - Address J D? ` - — Phone Number City Date of Birth: 62 t/ / () I (7✓ Place of Birth: 11onth1day/year Have you ever been convicted of any crime other than a traffic offense? If yes, explain: M�v State -,///,./P City ❑ yes kno 93-3- ` zip State City of Hutchinson Application for Gambling Devices License Page 2 of 3 `.Licenc,�.,t�nlieation='.Gam6lin� U.rics dot under Minnesota Statute §344.t Trite Name Phone Number Residence A ress City State Zip Date of Birth: 2- / i / no Place of Birth: a '4" a M ^ Month/day/year City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes *0 If yes, explain: How long have you been a member of the organization? to Game Information L cation #1 lame where game will be played Phone Number - IliW] G Address o location where game will be played City State zip Date(s) and/or day(s) gambling devices will be used: through 61bA AM AM Hours of the day gambling devices will be used: From %oti Al To fl Maximum number of player: qhO Will prizes be paid in money or merchandise? ❑ money merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ;(no If yes, will a charge be made for such refreshments? ❑ yes ❑ no Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City State zip Date(s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From pM To PM Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes ❑ no City of Hutchinson Application for Gambling Devices License Page 3 of 3 Officers of the Organization (if'necessarv, list additional names on Name Title ResideeAddress City State Zip Name Title Residence Address City State Zip Name Title eswence Address Ciry State Ziir Officers or Other Persons Paid for Services Information Name Residence Address Name Residence Address Name Residence Address list additional names on separate sheet) Title City State Zip Title City State Zip Title CityState zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager 91yes ❑ no S L Authorized Officer yes ❑ no Initial V Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof. Signature of authorized of cq( of organization Signature of gambling manager of organization 9rc�do/ �00? Date Date Internal Use Onl• City Council ❑ approved ❑ denied Notes: HUTCHINSON CITY COUNCIL Cttyofl Request for Board Action 7AL Owl,7 Agenda Item: Short -Term Gambling License - Saturday Night Cruisers Car Club Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Saturday Night Cruisers Car Club has submitted a short-term gambling license application into administration for review and processing. The application is for raffle drawings the organization will be holding between June 1, 2021, and December 31, 2021. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Saturday Night Cruisers Car Club from June 1, 2021, to December 31, 2021. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: City af�� 1 ] 1 I Imsan Street Southeast Hutchinson. MN 55350 (320) 587-5151 Fax: (320) 2344240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 655 and Minnesota Statutes Chapter 349 All applications roust be received at least 30 days before event in order to be considered _Application Type w short Term Date(s) June 1 202 _December 31 2020 Fee: Month'Dayffear — Month/DcoVYear Information $30.00 2� SaturdayNight Cruisers Car Club 320-296-1991 Name Phone Number 1125 Blackbird Drive SW Hutchinson MN J 55350 Address inhere regular meeting are held City State Zip , Federal or State ID: 41-195-6814 i Day and time of meetings? First of the month Is this organization organized under the laws of the State of Minnesota? 1A yes ❑ no How long has the organization been in existence? 1999 I -low may members in the organization? 55 What is the purpose of the organization? To get classic car enthusiasts and the public together. In whose custody will organization records be kept? Sue Lambertson Arame 1125 Blackbird Drive SW Address Duly Authorized Officer of the Organization Information Jeannie Tessmer Tnie Name 950 Ludtke Lane NW Residence Address Hutchinson Hutchinson City Date of Birth: 11/03/1952 Place of Birth: __ Month1dayfyear I lave you ever been convicted of any crime other than a traffic offense? if yes, explain: _ 320-296-1991 Phone Number MN 55350 State Zip 320-583-7049 Phone Number MN 55350 State Zip Litchfield MN City-- State O yes [A no Cin, of Mitchinson : application for Gambling Devices License Page ? of 3 Manager Qualified under Minnesota.Statute i Sue Lambertson - Treasurer _ 320-296-1991 Titre Fame Phone Number 1125 Blackbird Drive SW Hutchinson MN 55350 Residence Address 001 State Zip Date of Birth: 0(9/22/195i8 Place of Birth: Lvnwood CA Month/day:}rear City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes §4 no If yes, explain: How long have you been a member of the organization? Ten Years Game Information Location 41 3BC — Bobbing Bobber BrewinQ Co. _ Name vf'location where game will be played 900 MN -15 S. Address of location where game will he plcg ed Date(s) and/or day(s) gambling devices will be used: Hutchinson City 320-587-5956 Phone Number MN 55350 State zip June through December AM AM Hours of the day gambling devices will be used: From _5:00gm PM To 8:00 pm PM Maximum number of player- Sixty Second & fourth Fridays Will prizes be paid in money or merchandise? W money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? O yes ❑ no NOT BY US u Game Information I Location #2 St. Anastasia Fall Festival 320-587-6507 Name oj''locaiion where game will be played 460 Lake Street Address of location where game will be played Hutchinson Cite Phone Number MN State Date(s) andlor day(s) gambling devices will be used: September 13th through AM Hours of the day gambling devices will be used: From 10:00 am pM To Maximum number of player: Sixty _ Will prizes be paid in money or merchandise? R money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? If yes, will a charge be made for such refreshments? ❑yes ❑ no 55350 Zip September 13th AM 3:00 ❑ ves ❑ no C',ry of Huichinsun Application jorGambling Devices License Page 3 of 3 Officers of the Organization (i 'necessary, list additional names on Gary Lambertson Name President Title 1125 Blackbird Drive SW Hutchinson MN 55350 Residence Address City Stale zip Gary Hotovec Cruise Master Name Title 87308 HWY 71 N Danube MN 56230 Residence Address C.'ity State zip Jeannie Tessmer Secretary Name Title 950 Ludtke Lane NW Hutchinson _ MN 55350 Residence Address City' _ Slate zip Officers or Other Persons Paid for Services information (i necessary, list additional names on separate sheet) Name Residence Address Name Residence Address Name Residence Address Title City State Zip Title City State Zip Title State Zit? Have you (Gambling Manager and Authorized Officer) read; and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)9. Gambling Manager Ayes © no �� Authorized Officer yes ❑ no T Initial Initial I declare that the information I have provided on this application is truthful_ and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof. Signature o� atrthorced officer oforganiration Signature afgamhling manager of organization Internal Use Only - City Council C] approved ❑ denied Notes: Date 4 -71;u Date HUTCHINSON CITY COUNCIL Ctty'fl Request for Board Action 7AL Zwl,7 Agenda Item: Hutchinson Jaycee Water Carnival Requests Department: Police LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Thomas D. Gifferson Agenda Item Type: Presenter: Thomas D. Gifferson Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: I am in receipt of a letter from Jon Beach and the Water Carnival Committee in reference to the 2021 Water Carnival Celebration. My staff and I have reviewed the request and are confident that we can meet the needs of the Water Carnival Committee. As in the past the Water Carnival Committee has assured us that they have been in contact with the other city department mentioned in the attached request. The Police Department looks forward to working with those departments and the Hutchinson Jaycees to ensure another safe and successful Water Carnival Celebration. We at the police department have been in contact with Mr. Beach regarding the current Covid 19 restrictions and how that may affect this event. He is fully aware that some or all of these events may not be possible this year. It is his full intention to follow all federal, state and local guidelines regarding events and gatherings and understands that the city may not be able to allow him to hold events even if this request is approved. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 8,000.00 Funding Source: Police FTE Impact: 31.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: chnson Jaycee Water Carnival. March 10, 2021 Matt Jaunich, City Administrator City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 Mr. Jaunich, The 78t" Annual Hutchinson Jaycee Water Carnival is planned for June 14-20, 2021, and the entire committee is working hard to prepare for it. We are requesting that approvals and permits be issued for the 2021 Water Carnival as follows: 1. Please close the appropriate streets and issue a Parade permit for the Grande Day Parade on Sunday, June 20t", from 11:00 AM to 4:00 PM. We are working to have this year's parade route on Main Street now that the construction project is complete. We anticipate MN Dot will grant approval for this route, and I will continue to work with our Parade Team on these plans. 2. Close or monitor intersections at all necessary points for Grande Day Parade Route on Sunday, June 205Y from 10:00 AM to 4:00 PM, including posting no parking signs in designated areas as determined by Hutchinson Police Department. 3. Please issue a permit for fireworks displays on both Thursday, June 17t" and Sunday, June 20tn beginning at approximately 10:00 PM to be displayed over the Crow River. Fireworks will be launched from either AFS Park or Oddfellows Park. The Fire Department Chief will be notified concerning the display of fireworks. The Water Carnival committee will arrange to have Sheriff Department, Fire Department and Ambulance support on hand. No parking will be allowed on School Rd from Hwy 7 W to Lewis Ave. 4. We have contracted with Mini Biff, Inc. to provide portable lavatory services for the Grande Day Parade route, Parade staging area and Kids Fun Days area. 5. Request permit to close 15t Ave SE between Main St. and Hassan St. NE beginning Saturday June 19t" at approximately 5:00 P.M. until Sunday June 20t" until parade completion or as determined by police personnel. 6. Request a temporary suspension of the noise ordinance to allow the music following the Boat Parade on Thursday, June 17th until up to 11:00 P.M. P.O. Box 624 • Hutchinson, MN 55350 • www.watercarnival.org chnson Jaycee Water Carnival. 7. The Boat Parade on Thursday, June 17t" will require the use of the Roberts Park parking lot. The Hutchinson Police Department has agreed to provide assistance for this event to minimize parking congestion. We also plan to launch some boats from the landing at West River Park to minimize congestion. 8. The Kiddy Day parade will be held Saturday, June 20th at West River Park and the Hutchinson Police Department has been contacted and agrees to be present to monitor traffic flow. 9. We are requesting a temporary liquor license in order to have beer and wine sales during the boat parade on Thursday June 17th from 5:30 pm until the music ends at 10pm and the tentative fireworks start, as well as during the events at West River Park on Saturday the 19tn from 10 am until 4 pm. We will have all of the necessary liability insurance through the MN Jaycees and have applied for the permit through the city. We are working with the PD on coordinating this event to ensure everything goes well. 10. We plan to have Andy Austin playing music on the Riversong Stage during the Boat parade on Thursday night June 17t" until 10 pm. We would like to have spectators of the Boat Parade and Fireworks (tentative) to be able to park in the parking spots throughout Masonic/West River Park. 11. We plan to have most of the 78t" Water Carnival events on Saturday June 19t" at West River Park. The day will start with the run from Jaycee Riverside park as in previous years. Canoe Races will be conducted Saturday morning near the West River Park landing in coordination with the Boy Scouts. 12. The Hutchinson Jaycee Water Carnival sporting events and water events chairs will coordinate traffic flow, park layout and control with the Hutchinson Police department and the Parks Dept for the events including 5K - 15K— Family Fun runs, Entertainment, Sporting events, and Canoe Races. The Water Carnival is a non-profit event, and the Jaycees would appreciate the waiver of any fees or rentals during the duration of the Water Carnival to help defray expenses. We appreciate the assistance received from the City of Hutchinson and its staff, and we could not have a community celebration without this support. If you should have any questions or concerns, or would like additional information, please contact me directly. P.O. Box 624 • Hutchinson, MN 55350 • www.watercarnival.org Thank you, Jon Beach 2021 Commodore Hutchinson Jaycee Water Carnival 320-249-3228 Jonathan. beach@allina.com commodore@watercarnival.org chnson Jaycee Water Carnival. cc: Tom Gifferson, Police Chief Pat Egan, Ambulance Services Mike Schumann, Fire Chief Lynn Neumann, PRCE Director P.O. Box 624 • Hutchinson, MN 55350 • www.watercarnival.org MEMORANDUM POLICE / EMERGENCY MANAGEMENT SERVICES TO: Chief Tom Gifferson FROM: Sgt. Joseph Nagel DATE: 4-05-2021 RE: 78th Annual Hutchinson Jaycees Water Carnival This memorandum outlines the Hutchinson Jaycees Water Carnival Committee request to hold the 78th Annual Water Carnival Festival June 14-20 2021. I have completed the Special Event request form with the organization and a synopsis of this request is as follows: Event Name: 78th Annual Hutchinson Jaycees Water Carnival Primary Contact: Jon Beach -Commodore 320-249-3228 Jonathan.beach@alIina.com Event Location: Several locations throughout the city including the Grand Day Parade route which will be outlined later in this request, but most events including, but not limited to the Boat Parade, Kiddy Day, and a Bean Bag tournament would be held at Masonic West River Park 103 Les Kouba Parkway Event Dates/Times: June 14-20 2021. Brief Description: Please see attached letter Alcohol -Alcohol will be provided on Thursday June 17th at Masonic West River Park during the Boat Parade and Saturday June 19th 2021 during other outdoor events in the park. Mr. Beach and the Jaycee have been working with the City of Hutchinson Administration Department (Mellissa Starke) to obtain a liquor license and would need to provide proof of license prior to serving. Security -Officers would be present at nearly every event throughout the Water Carnival week, if nothing more than to check in. However, officers will have a large presence at the Boat Parade, and the Grande Day Parade. Amplified Sound- Amplified Music on the "River Song" stage Thursday June 17th 2020 during the Boat Parade until 11 p.m. Tents and Canopies -Unknown Stages/Platforms-Use of the "River Song" stage Refuse -Current containers in park/campground/streets, plus additional services contracted through West Central Satiation Restrooms-Current public facilities plus additional services contracted through Mini Biff Inc. Street Closures - June 20th 2021 3rd Ave NW from Main St N to Montana (Parade Staging) Main St. N and Hwy 7 to 4th Ave SW 4th Ave SW to Lynn Rd Lynn Rd to Linden Ave SW Linder Ave SW to Harington (Parade Route) June 17th and 20th 2021 Close a portion of AFS Park for launching of the Fireworks June 17th 2021 Close a portion of the Roberts Park Parking lot to help with organization and hopefully minimize congestion during the staging of the Boat Parade. June 17th, 18th and 19th 2021 Close Les Kouba Parkway and direct all traffic to park in large grass area for events. This does not include individuals who have paid to use the campground through reservations. City Departments affected: *below is only a snap shot of what city department contribute to this festival. I can provide a more detailed list upon request. Police -Monitor all events, monitor weather and aid with planning and organization. Parks -West River Park maintenance, set up and clean up, strip parking area Les Kouba Streets- Parade Barricade set up and clean up. Street cleaning, before and after parade assist with parking area Les Kouba. Fire -Fireworks monitoring June 18th and 21 st at approximately 10 pm. Administration -Liquor license I have met with the group regarding current COVD restrictions and we will continue to communicate as they evolve. Attached: Jaycee Request Parade Map HUTCHINSON CITY COUNCIL Cttyofl Request for Board Action 7AL Owl,7 Agenda Item: Parade Permit Department: Police LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Thomas D. Gifferson Agenda Item Type: Presenter: Thomas D. Gifferson Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The VFW Post 906 in partnership with the American Legion Post 96 and the Disabled Americans Veterans are requesting a permit to conduct the 2021 Memorial Day Parade. This request requires Hassan St be closed to public traffic between 3rd Ave SE and 1 st Ave NE during the hours of 9:00 am to 10:00 am for the Annual Memorial Day Parade. My staff and I have reviewed the request and are confident that we can meet the needs of VFW Post 906 and American Legion Post 96. Police Department staff has advised organizer of current COVID 19 restrictions. Approval of this request is contingent upon organization abiding by all COVID-19 restrictions at the time of the event. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 0.00 Funding Source: Police 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: CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 3/24/21- 4/13/21 Check Date ------------------ 03/26/2021 Check -------------- EFT1428 Vendor Name ------------------------------------------------------------- EFTPS Description ---------------------------------------------------------------------------- Payroll3/7/21-3/20/21 Amount ----------------------- 67,309.95 03/26/2021 EFT1429 Child Support Payroll 3/7/21- 3/20/21 410.24 03/26/2021 EFT1430 MSRS Payroll 3/7/21 - 3/20/21 9,631.54 03/26/2021 EFT1431 MN Dept of Revenue Payroll 3/7/21- 3/20/21 13,058.12 03/26/2021 EFT1432 Provident Life Ins Payroll 3/7/21- 3/20/21 555.80 03/26/2021 EFT1433 PERA Payroll 3/7/21 - 3/20/21 55,190.62 03/26/2021 EFT1434 Further HSA Payroll 3/7/21 - 3/20/21 15,608.46 03/26/2021 EFT1435 ICMA Payroll 3/7/21- 3/20/21 3,112.84 03/26/2021 EFT1436 VOYA Payroll 3/7/21 - 3/20/21 330.00 03/26/2021 EFT1437 MNDCP Payroll 3/7/21- 3/20/21 350.00 03/26/2021 214591 VOID VOID 03/26/2021 214592 MNPEA Payroll 3/7/21- 3/20/21 585.00 03/26/2021 214593 Unum Life Insurance Payroll 3/7/21- 3/20/21 1,208.28 03/26/2021 214594 LELS Payroll 3/7/21 - 3/20/21 317.50 03/26/2021 214595 HART Payroll 3/7/21- 3/20/21 611.06 04/13/2021 214596 A.M. LEONARD INC WATER HOSE, PRO BLADES - HATS/STREETS 1,020.69 04/13/2021 214597 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 691.84 04/13/2021 214598 ACE HARDWARE - 1790 REPAIR & MAINT SUPPLIES - FIRE DEPT 162.93 04/13/2021 214599 ACE HARDWARE - 1825 GARAGE DOOR ROLLER - POLICE 7.99 04/13/2021 214600 ACS SOLUTIONS LLC LIQUID RUST CONVERTER - STREETS 5,274.05 04/13/2021 214601 ALEX AIR APPARATUS INC ARMOR & SUPPLIES - FIRE DEPT 16,034.32 04/13/2021 214602 ALLINA HEALTH SYSTEM 1ST QTR 2021 EMS EDUCATION - FIRE DEPT 847.53 04/13/2021 214603 ALPHA WIRELESS APRIL MAINT ON RADIO EQUIP - POLICE 794.75 04/13/2021 214604 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 368.72 04/13/2021 214605 AMERICAN LEGAL PUBLISHING CORP INTERNET RENEWAL 1/17/21- 1/17/22 -ADMIN 395.00 04/13/2021 214606 ARAMARK UNIFORM & CAREER APPAREL GR 3/22 CLEANING SUPPLIES & SERVICE - LIQUOR HUTCH 170.21 04/13/2021 214607 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,726.15 04/13/2021 214608 AUTO VALUE - GLENCOE EQUIPMENT PARTS - HATS/STREETS 244.54 04/13/2021 214609 AUTO-CHLOR SYSTEM MARCH DISHWASHER SERVICE - SR DINING 220.00 04/13/2021 214610 AXON ENTERPRISE, INC. TASER 60 YR 5 PYMT - POLICE 6,072.00 04/13/2021 214611 B & C PLUMBING & HEATING INC FLUSH VALVE REPAIR - HATS 483.23 04/13/2021 214612 BEACON ATHLETICS PADS, TAPE, HOME PLATE, WINDER, BASES - PARKS 1,995.00 04/13/2021 214613 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 6,790.14 04/13/2021 214614 BENEFIT EXTRAS INC FEB COBRA & RETIREE BILLING 63.50 04/13/2021 214615 BERGER PLUMBING HEATING A/C, LLC FLUSHABLE REPAIR KIT, & REPAIR - ARENA 134.99 04/13/2021 214616 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 443.03 04/13/2021 214617 BFG SUPPLY CO FLORIKAN FERTILIZER - STREETS 1,378.80 04/13/2021 214618 BME LAB AND SCIENCE CALIB/MAINT SERVICE - WWTP 805.00 04/13/2021 214619 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 40,092.18 04/13/2021 214620 BRITZ STORE EQUIPMENT INC. ROLL TRACKS/DIVIDERS - LIQUOR HUTCH 6,148.24 04/13/2021 214621 BUBLITZ, JEAN REPURCHASE PLOTS - CEMETERY 825.00 04/13/2021 214622 BUREAU OF CRIM. APPREHENSION CJDN ACCESS FEES - POLICE 390.00 04/13/2021 214623 BUTLER, MATT REFUND: CANCELLED WATER CARNIVAL WEEKEND 55.00 04/13/2021 214624 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 34,572.76 04/13/2021 214625 CAMPBELL, ERIC & TIFFANY UB refund for account: 3-774-1770-3-02 103.41 04/13/2021 214626 CANNON RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 607.05 04/13/2021 214627 CARD SERVICES MISC SUPPLIES - POLICE 15.96 04/13/2021 214628 CAROLINE M. NYBERG TRANSCRIPT ORDER: S ULLAND - LEGAL 2.00 04/13/2021 214629 CARS ON PATROL SHOP LLC VARIOUS VEHICLE REPAIRS - POLICE 2,152.36 04/13/2021 214630 CENTRAL HYDRAULICS EQUIPMENT PARTS & REPAIRS - MULTIPLE DEPTS 1,400.90 04/13/2021 214631 CENTRAL MCGOWAN MISC SUPPLIES - HATS 252.49 04/13/2021 214632 CHEMISOLV CORP FERRIC CHLORIDE - WWTP 5,432.91 04/13/2021 214633 CINTAS CORPORATION OFFICE/CLEANING SUPPLIES - MULTIPLE DEPTS 255.01 04/13/2021 214634 CLAYTON HOLDINGS LLC 2021 PYMT: KOMPTECH TURNER - COMPOST 73,808.37 04/13/2021 214635 CODE PACK LLC LABELS, RIBBON - COMPOST 1,312.78 04/13/2021 214636 COKER COMPOSTING AND CONSULTING MARCH 2O21 CASP IMPLEMENTATION PROJ - REFUSE 562.50 04/13/2021 214637 COOL AIR MECHANICAL INC 717-HT OIL - ARENA 131.61 04/13/2021 214638 CORE & MAIN LP WATER METERS AND PARTS 5,593.30 04/13/2021 214639 CREEKSIDE SOILS POTTING SOIL - ENG 531.00 04/13/2021 214640 CROW RIVER PRESS INC PRINTING & SUPPLIES - MULTIPLE DEPTS 536.09 04/13/2021 1214641 1 D. ERVASTI SALES CO, LLC MOUND & CLAY, CONDITIONER - PARKS 1,000.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 3/24/21- 4/13/21 Check Date ------------------ 04/13/2021 Check -------------- 214642 Vendor Name ------------------------------------------------------------- DELL MARKETING L.P. Description ---------------------------------------------------------------------------- NOTEBOOK REPAIR/PARTS, MONITORS - IT Amount ----------------------- 1,918.45 04/13/2021 214643 DOG -ON -IT -PARKS BAGS - PARKS 184.00 04/13/2021 214644 DVS RENEWAL 2019 CHEVY IMPALATABS - POLICE 14.25 04/13/2021 214645 E2 ELECTRICAL SERVICES INC VARIOUS PARTS & REPAIRS - MULTIPLE DEPTS 1,667.93 04/13/2021 214646 ECOLAB PEST ELIMINATION PEST CONTROL - MULTIPLE DEPTS 237.12 04/13/2021 214647 ECOSAFE ZERO WASTE USA INC COMPOST BAGS - REFUSE 4,148.00 04/13/2021 214648 EHLERS & ASSOCIATES INC GENERAL CONSULTING THRU 2/28/21- EDA 1,012.50 04/13/2021 214649 EMERGENCY AUTOMOTIVE TECH SQUAD CAR EMERGENCY EQUIPMENT 2,931.13 04/13/2021 214650 FARM -RITE EQUIPMENT DOOR SEAL - STREETS 59.18 04/13/2021 214651 FASTENAL COMPANY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,703.34 04/13/2021 214652 FERGUSON WATERWORKS#2518 WATER METERS 818.75 04/13/2021 214653 FINANCE & COMMERCE SUBSC SERVICES 1 YEAR SUBSCRIPTION - ENG 329.00 04/13/2021 214654 FLAGSHIP RECREATION 6FT BENCHES - PARKS 2,863.00 04/13/2021 214655 FORKLIFTS OF MINNESOTA INC INSPECTIONS & TESTING - WATER 480.08 04/13/2021 214656 FOSTER MECHANICAL MISC FAUCET INSTALLS & REPAIRS - MUTLIPLE DEPTS 5,859.68 04/13/2021 214657 FUZE LOGISTICS SERVICES USA INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 2,050.00 04/13/2021 214658 GAVIN, JANSSEN & STABENOW, LTD FEB PROSECUTIONS - LEGAL 4,160.00 04/13/2021 214659 GEB ELECTRIC INC REPLACE LED LIGHTS - REC CTR & ARENA 967.00 04/13/2021 214660 GEIKEN'S GUIDE & GUARD, LLC 3RD & 5TH GRADE DARE - POLICE 975.00 04/13/2021 214661 GERTENS WESTERN RED CEDAR MULCH - COMPOST 3,095.00 04/13/2021 214662 GITCH GEAR LLC COST OF GOODS SOLD - LIQUOR HUTCH 572.00 04/13/2021 214663 GRAINGER REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 2,082.19 04/13/2021 214664 H&L MESABI CARBIDE PLOW BLADES - STREETS 1,605.00 04/13/2021 214665 HALI-BRITE INC LAMPS -AIRPORT 926.48 04/13/2021 214666 HALQUIST, DAVID REIMB: SAFETY FOOTWEAR - BLDG INSPEC 175.00 04/13/2021 214667 HANSEN GRAVEL INC. 3/16 SNOW REMOVAL 1,192.00 04/13/2021 214668 HANSON & VASEK CONSTRUCTION 3/17 SNOW REMOVAL 360.00 04/13/2021 214669 HARRINGTON INDUSTRIAL PLASTICS 1/2" VALVE Y-CHECK - WATER 131.68 04/13/2021 214670 HAWKINS INC HYDROFLUOSILICIC ACID - WATER 2,767.10 04/13/2021 214671 HEARTLAND AG SYSTEMS NOZZLES FOR SPRAYER - STREETS 26.44 04/13/2021 214672 HENNEPIN COUNTY FIRE CHIEF'S ASSN GORDON GRAHAM VIRTUAL TRAINING - FIRE 100.00 04/13/2021 214673 HILLYARD / HUTCHINSON MAINT, REPAIR & PARTS - REC CTR & ARENA 620.35 04/13/2021 214674 HINES, JEFF UB refund for account: 1-570-3730-5-01 19.78 04/13/2021 214675 HJERPE CONTRACTING REPAIR WATER LEAK - WATER 4,809.50 04/13/2021 214676 HUTCHFIELD SERVICES INC APRIL CLEANING SERVICES - HATS 1,415.00 04/13/2021 214677 HUTCHINSON CHAMBER & TOURISM FEBRUARY 2021 LODGING TAX 6,948.70 04/13/2021 214678 HUTCHINSON CO-OP VARIOUS FUEL & SUPPLIES - MULTIPLE DEPTS 7,487.92 04/13/2021 214679 HUTCHINSON LEADER MARCH ADVERTISING/PUBLISHING - MULTIPLE DEPTS 1,374.03 04/13/2021 214680 HUTCHINSON UTILITIES UTILITIES 2/1 - 3/1-21 153,268.13 04/13/2021 214681 HUTCHINSON WHOLESALE #1550 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 617.11 04/13/2021 214682 HUTCHINSON WHOLESALE #1552 REPAIR & MAINT SUPPLIES - PARKS 608.73 04/13/2021 214683 HUTCHINSON WHOLESALE #2520 REPAIR & MAINT SUPPLIES - FIRE DEPT 155.15 04/13/2021 214684 INGSTAD BROADCASTING KDUZ: MARCH PRO SPORTS COMBO - LIQUOR HUTCH 260.00 04/13/2021 214685 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES - HATS 783.65 04/13/2021 214686 ISD #423 FEB 2021 COMM ED & ECFE CLASSES 3,061.67 04/13/2021 214687 J & B PALLET, LLC PALLETS - COMPOST 4,984.00 04/13/2021 214688 JAY MALONE MOTORS PARTS & REPAIRS - MULTIPLE DEPTS 304.95 04/13/2021 214689 JEFFERSON FIRE & SAFETY INC A/B FIRE FIGHTING FOAM 50 GALLONS - FIRE 1,400.00 04/13/2021 214690 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 47,611.07 04/13/2021 214691 JWC ENVIRONMENTAL SERVICE TECH LABOR - WWTP 1,500.00 04/13/2021 214692 KELLER, MATTHEW REIMB: CONF @ MARRIOTT- WWTP 75.00 04/13/2021 214693 KENT, JOHN REIMB: EXAM FEE, MARRIOTT FOR CONF - WWTP 549.04 04/13/2021 214694 KERI'S CLEANING & HANDYMAN SERVICES MARCH CLEANING - MULTIPLE DEPTS 4,057.94 04/13/2021 214695 KINNEY & LANGE LEGAL FEES TO TRADEMARK NEW HUTCH LOGO 760.00 04/13/2021 214696 KOSEK, ANDREW REIMB: SAFETY FOOTWEAR - COMPOST 175.00 04/13/2021 214697 KOSEK, JEFFREY 3/17 SNOW REMOVAL 360.00 04/13/2021 214698 KRANZ LAWN & POWER EQUIPMENT PARTS - STREETS 105.79 04/13/2021 214699 KRIS ENGINEERING JOMA PARTS - STREETS 4,639.16 04/13/2021 214700 LEAGUE OF MN CITIES -INS TRUST WWTP INSURANCE CLAIM 8,500.00 04/13/2021 214701 LITTLE FALLS MACHINE INC DRILLED PINS, WING CLEVIS, STRAIGHT PINS - HATS 279.24 04/13/2021 1214702 1 LOCHER BROTHERS INC ICOST OF GOODS SOLD - LIQUOR HUTCH 69,648.70 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 3/24/21- 4/13/21 Check Date ------------------ 04/13/2021 Check -------------- 214703 Vendor Name ------------------------------------------------------------- MACQUEEN EMERGENCY Description ---------------------------------------------------------------------------- FIREFIGHTER GEAR, SCBA TESTS - FIRE DEPT Amount ----------------------- 10,231.49 04/13/2021 214704 MADDEN GALANTER HANSEN LLP FEB LABOR RELATIONS SERVICES - POLICE 90.00 04/13/2021 214705 MAGANA, MARY UB refund for account: 3-275-7910-5-01 2.16 04/13/2021 214706 MARCO TECHNOLOGIES, LLC 3/20 - 4/20'21 PRINTERS CONTRACT - VARIOUS DEPTS 1,791.91 04/13/2021 214707 MARION PROCESS SOLUTIONS COLORING PUMP PARTS- COMPOST 492.19 04/13/2021 214708 MASTER BUILDERS SOLUTIONS US LLC MULCH MAGIC COMPOSITE - COMPOST 11,232.00 04/13/2021 214709 MCKIMM MILK TRANSIT 3/24 CREEKSIDE TO BFG SUPPLY, ST PAUL 310.10 04/13/2021 214710 MCLEOD COUNTY COURT ADMINISTRATOR BAILS: POLICE DEPT 350.00 04/13/2021 214711 MCLEOD COUNTY HHW BARRELS OF SOLVENTS/OIL/ANTIFREEZE - PARKS 306.75 04/13/2021 214712 IVIED COMPASS MEDICAL EXAMS, ANALYSIS, PSA- FIRE DEPT 3,870.00 04/13/2021 214713 MEI TOTAL ELEVATOR SOLUTIONS APR/MAY SERVICE - LIBRARY 200.16 04/13/2021 214714 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,437.79 04/13/2021 214715 MHSRC/RANGE EVO/PIT REFRESHER HYBRID - POLICE 1,650.00 04/13/2021 214716 MIDWEST FIRE EQUIPMENT TANKER 4 DOOR SWITCH - FIRE DEPT 106.10 04/13/2021 214717 MIES OUTLAND INC POLARIS RANGER REPAIR - FIRE DEPT 504.39 04/13/2021 214718 MINNCOR INDUSTRIES MV TITLE SERVICE 35.00 04/13/2021 214719 MINNESOTA ASA FASTPITCH AND SLOW PITCH SOFTBALLS - REC 7,440.00 04/13/2021 214720 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 456.20 04/13/2021 214721 MOORE, ERIC REIMB: RX SAFETY GLASSES - WWTP 100.00 04/13/2021 214722 MOTOROLA SOLUTIONS INC PORTABLE RADIO BATTERIES - FIRE DEPT 1,140.00 04/13/2021 214723 MPCA ANNUAL PERMIT FEES - WWTP/AIRPORT 14,750.00 04/13/2021 214724 MYGUY INC. CLEANING SUPPLIES - HATS 1,067.00 04/13/2021 214725 NERO ENGINEERING LLC HEADWORKS PROJ CONSULTING FEES 50,687.00 04/13/2021 214726 NORTH CENTRAL INTERNATIONAL ENGINE 7 - AIR FILTERS, PURGE VALVE - FIRE DEPT 145.14 04/13/2021 214727 NORTHERN BUSINESS PRODUCTS SUPPLIES - MULTIPLE DEPTS 236.58 04/13/2021 214728 NORTHERN SAFETY & INDUSTRIAL EAR MUFFS, EYEWEAR - COMPOST/REFUSE 39.75 04/13/2021 214729 NORTHERN STATES SUPPLY INC EQUIPMENT PARTS - HATS 254.69 04/13/2021 214730 NSF - MSF TOURNAMENT REGISTRATION - REC 55.00 04/13/2021 214731 NUVERA APR PHONE SERVICES 5,603.57 04/13/2021 214732 O'REILLY AUTO PARTS REPAIR & MAINT SUPPLIES - PARKS 284.35 04/13/2021 214733 PARK NICOLLET CLINIC APRIL 2021 CAM - EVENT CENTER 2,189.96 04/13/2021 214734 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,434.50 04/13/2021 214735 PELLINEN LAND SURVEYING EASEMENT PREP FOR SIDEWALK - ENG 200.00 04/13/2021 214736 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 4,658.52 04/13/2021 214737 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 32,269.24 04/13/2021 214738 PLUNKETTS PEST CONTROL 3/18 PEST CONTROL - ARENA 77.74 04/13/2021 214739 PNHS SERVICE AREA FEB TESTING - FIRE DEPT 62.00 04/13/2021 214740 POSTMASTER POSTAGE - UB BILLS 1,540.00 04/13/2021 214741 POSTMASTER POSTAGE - UB BILLS 50.00 04/13/2021 214742 POSTMASTER MAY SR NEWSLETTERS - SR CTR 110.00 04/13/2021 214743 PREMIER TECH CHRONOS INFEED HOPPER, CONVEYOR & FEEDER - COMPOST 31,290.00 04/13/2021 214744 PREMIUM WATERS 5 GALLONS - PARKS 38.24 04/13/2021 214745 PRO AUTO MN INC. VARIOUS VEHICLE REPAIRS - FIRE DEPT 186.49 04/13/2021 214746 PRO-TEC DESIGN INC. INSTALLATIONS & SOFTWARE - MULTIPLE DEPTS 3,218.96 04/13/2021 214747 PROFESSIONAL WATER TECHNOLOGIES INC SPECTRAGUARD ANTISCALANT - WATER 5,369.00 04/13/2021 214748 QUADE ELECTRIC LED'S, BLUE WIRE - CEMETERY 230.75 04/13/2021 214749 QUALITY FLOW SYSTEMS MAIN LIFT STATION PUMP #3 REPLACEMENT - WWTP 42,375.00 04/13/2021 214750 QUILL CORP OFFICE SUPPLIES - MULTIPLE DEPTS 1,518.69 04/13/2021 214751 RDO EQUIPMENT CO. REFUSE LOADER REPAIR 2,935.46 04/13/2021 214752 RECREONICS ROPE, CHLORINE - WATERPARK 895.30 04/13/2021 214753 REFLECTIVE APPAREL FACTORY INC SHIRTS - STREETS 1,505.64 04/13/2021 214754 REINER ENTERPRISES INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 14,126.03 04/13/2021 214755 REINKE, BERNICE REFUND: SR PROG CONCERT CANCELLED 40.00 04/13/2021 214756 REVIER WELDING VARIOUS WELDING REPAIRS - COMPOST 2,007.12 04/13/2021 214757 RNLTRANSPORT LLC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 19,411.00 04/13/2021 214758 ROLLING FORKS VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 522.84 04/13/2021 214759 ROSENBAUER MINNESOTA LLC ENGINE 2 - INSTALL EX CLIMB LADDER, REPAIR - FIRE 2,000.00 04/13/2021 214760 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 234.18 04/13/2021 214761 S3SOLAR SOLAR INVERTER REPLACEMENTS - WWTP 6,600.00 04/13/2021 214762 SCHLAUDERAFF IMPLEMENT CO. SWITCHES, WASHERS, NUTS, CAPS -AIRPORT 126.02 04/13/2021 1214763 ISHI INTERNATIONAL CORP MICROSOFT SOFTWARE/MAINT - MULTIPLE DEPTS 1 29,878.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 3/24/21- 4/13/21 Check Date ------------------ 04/13/2021 Check -------------- 214764 Vendor Name ------------------------------------------------------------- SIMONSON LUMBER CO Description ---------------------------------------------------------------------------- REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS Amount ----------------------- 134.19 04/13/2021 214765 SMALL LOT MN LLC COST OF GOODS SOLD - LIQUOR HUTCH 2,312.28 04/13/2021 214766 SNAP -ON INDUSTRIAL PULLER SET BOLT GRIP - HATS 149.85 04/13/2021 214767 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 47,539.36 04/13/2021 214768 STANDARD PRINTING-N-MAILING POSTAGE & SUPPLIES - MULTIPLE DEPTS 463.55 04/13/2021 214769 STAPLES ADVANTAGE DISINFECTANT CLEANER, BOWL CLEANER - PARKS 106.97 04/13/2021 214770 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 550.00 04/13/2021 214771 STREICHER'S LESS LETHAL LAUNCH SYSTEM - POLICE 965.99 04/13/2021 214772 SUMMER LAKES BEVERAGE LLC COST OF GOODS SOLD - LIQUOR HUTCH 60.00 04/13/2021 214773 TESSMAN COMPANY CHALK LINE MARKERS, MVP - PARKS 1,187.56 04/13/2021 214774 THOMSON REUTERS-WEST FEB/MARCH WEST INFO CHARGES - LEGAL 2,297.36 04/13/2021 214775 TRI COUNTY WATER BOTTLE WATER DELIVERY - MULTIPLE DEPTS 189.50 04/13/2021 214776 TRNKA, JAMES REIMB: FUEL FOR #170 - STREETS 30.00 04/13/2021 214777 TWO-WAY COMMUNICATIONS INC ENGINE 2 - WIRELESS HEADSET, ADAPTER CABLES - FIRE 1,185.00 04/13/2021 214778 UNITED FARMERS COOP DYED FUEL - HATS 11,544.27 04/13/2021 214779 UNITED PACKAGING & DESIGN SLIP SHEETS - COMPOST 8,730.00 04/13/2021 214780 UNUM LIFE INSURANCE CO OF AMERICA APRIL LIFE INSURANCE 2,857.20 04/13/2021 214781 USA BLUE BOOK FLIPSTICK THERMOMETER - WATER 64.95 04/13/2021 214782 VERIZON WIRELESS FEB 24 - MAR 23, 2021 PHONE SERVICES 3,714.34 04/13/2021 214783 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 19,862.65 04/13/2021 214784 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 629.50 04/13/2021 214785 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 3,043.84 04/13/2021 214786 WAGNER, ROBB RESERVATION REFUND - PARKS 80.00 04/13/2021 214787 WASTE MANAGEMENT OF WI -MN 3/1- 3/15 RESIDENTIAL REFUSE 5,476.64 04/13/2021 214788 WATER SYSTEMS ENGINEERING INC WELL REHAB - WATER 1,580.00 04/13/2021 214789 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 233.56 04/13/2021 214790 WELCOME NEIGHBOR NEW RESIDENT VISITS - LIQUOR HUTCH 60.00 04/13/2021 214791 WELTER, JORDAN REIMB: SAFETY FOOTWEAR - COMPOST 175.00 04/13/2021 214792 WERTZ, HEIDI UB refund for account: 1-570-0880-1-02 39.38 04/13/2021 214793 WEST CENTRAL SHREDDING MARCH SHREDDING: VARIOUS DEPTS 50.00 04/13/2021 214794 WILTROUT, BRETT REFUND: TRANSFERRED TO MAJOR LEAGUE BB - REC 130.00 04/13/2021 214795 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 3,516.60 04/13/2021 214796 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 3,879.32 04/13/2021 214797 WINEBOW FINE WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 493.50 04/13/2021 214798 WOLD ARCHITECTS & ENGINEERS PD FACILITY CONSULTANT FEES - THROUGH 3/31/21 32,210.00 04/13/2021 214799 ZOLL MEDICAL CORPORATION AED ELECTRODES/PADS- FIRE DEPT 134.54 Total - Check Disbursements: I $ 1,239,622.55 )mic Development Authority 2020 Annual Report Prepared by Miles R. Seppelt, EDA Director Madison Newcomb, EDA Program Manager Table of Contents Table of Contents Executive Summa 1 Activity Report 2 Downtown Program Activity 2 Downtown Programs Updated 3 Downtown Redevelopment 4 Franklin House Acquisition 4 Franklin Street Redevelopment 5 3rd Avenue NW Redevelopment 7 Industrial Park 8 Rite Way Conveyors Resonetics Solar Array 8 9 10 Lot 1140 Improvements 11 Skilled Workforce Development Civil Air Patrol Facility Marketing Hutchinson CARES Program 11 12 12 14 Strategic Plan Update 15 Downtown Association Support 15 EDA Budget & Fund Report 16 Governance 18 Summary 19 Appendix A EDA Year-end Financial Statements ii Appendix B Report on 2020 Workplan & Goals iii 2021 Workplan & Goals i I Page The mission of the Hutchinson Economic Development Authority is to facilitate redevelopment, job creation and the success of manufacturing in our community. EXECUTIVE SUMMARY 2020 was the year of the world-wide coronavirus pandemic which affected pretty much everything. Main Street Hutchinson was very hard hit by the loss of a number of businesses, most notably Zella's Restaurant. Other businesses were affected to varying degrees, some severely, others moderately and some with almost no ill effects. Some local manufactures actually saw an uptick in business as orders that would typically be placed overseas were brought back to the United States. Activities of the Hutchinson Economic Development Authority were largely unaffected, changing more in type than in volume. Highlights of the year included: Identified developer for the Franklin Street site • Identified potential developer for the 31d Avenue NW (Cenex) site ■ Purchased a blighted property for redevelopment (Franklin House) Warrior Mfg. completed its 41,000 sf expansion • Recruited Rite -Way Conveyors to the industrial park Updated the EDA Strategic Plan Completed a major update of the EDA website • Joined the Minnesota Marketing Partnership Developed and administered the $750,000 CARES Program for local businesses affected by the pandemic Facilitated the development of a county economic development effort 11Page ACTIVITY REPORT Downtown Program Activity Hutchinson's downtown remains a key focus area for the Hutchinson EDA. In a very real way the EDA believes that "as the downtown goes, so the community goes." It really is a barometer for the overall health of the community and a considerable amount of fixed asset wealth is concentrated there. The downtown plays a key role in recruiting new families to the community, thereby helping provide the workforce our local manufacturers need. Finally, the health of the downtown plays a very significant role in helping recruit new employers to the community. To incentivize continued reinvestment in the downtown the EDA operates three programs: the Sign & Awning Grant Program, the Facade Improvement Matching Grant Program and the Commercial Rehabilitation Loan Program. Sign & Awning Grant Program For 2020 the Sign & Awning Grant program provided $1,000 grants for business owners to purchase signs and / or awnings for their downtown businesses. No match is necessary. For the year, six grants were awarded totaling $5,275 as shown in Table 1, below: Table 1— Sign & Awning Grants 5/27/2020 State Farm / Steve Kroop 5/27/2020 Art's Place 7/22/2020 Junk-N-Treasures 8/26/2020 Clay Coyote 10/28/2020 Aspire Counseling, LLC 12/2/2020 BG Jewelers TOTAL Fa;ade Improvement Program $1,000 $1,000 $920 $1,000 $870 $485 $5,275 The Fagade Improvement Program is a matching grant whereby property owners can receive a dollar -for -dollar match up to $5,000 to make improvements to the front or rear of their buildings to improve their curb appeal. In 2020 four matching grants were awarded totaling $17,483. Details can be found in Table 2, below. Table 2 — Fa;ade Improvement Matching Grants 4/22/2020 Happy Sprout / Premier Investments $5,000 5/27/2020 Art's Place $5,000 8/26/2020 Touch of Grace $2,483 10/28/2020 Main Street Sports Bar $5,000 TOTAL $17,483 2 1 P a g e Commercial Rehabilitation Loan Program The purpose of the Commercial Rehabilitation Loan Program is to preserve the building stock of downtown Hutchinson by providing low interest loans to compliment traditional bank financing. One loan was made in 2020 totaling $150,000. Previously program rules had been updated giving the EDA Board discretion to provide larger loans for larger projects. With Main Street Sports Bar (MSSB) being a significant anchor business in the downtown it was deemed appropriate to provide this higher level of funding. Downtown loans are summarized in Table 3, below. Table 3 — Downtown Loans Approved 8/26/2020 Main Street Sports Bar $150,000 TOTAL $150,000 For its expansion project, MSSB acquired the neighboring building to the north (seen at right) and is expanding its bar area and adding office. The EDA provided a $150,000 loan. Downtown Programs Updated The reconstruction of Main Street combined with the negative economic effects of the pandemic put considerable stress on Hutchinson's downtown in 2020. To facilitate the recovery of Main Street the EDA Board significantly strengthened its downtown programs: the Sign & Awning Grant Program was doubled from $1,000 to $2,000; the Facade Improvement Program was increased by 50%, providing a dollar -for -dollar match of up to $7,500 for projects and the Commercial Rehabilitation Loan Program was doubled from a $30,000 3 1 P a g e maximum loan up to $60,000. The EDA Board also indicated it would consider larger loan requests on a case -by -case basis. Program modifications are summarized in Table 4, below: Table 4 — Downtown Program Modifications PROGRAM Previous Limit New Limit Sign & Awning Grant $1,000 $2,000 Facade Improvement Matching Grant $5,000 $7,500 Commercial Rehabilitation Loan $30,000 $60,000+ Downtown Redevelopment In addition to operating programs to preserve and enhance downtown building stock, the EDA is actively engaged in promoting the redevelopment of blighted areas of downtown where the free market fails to act. Franklin House Acquisition In the fall of 2020 a property adjacent to the Franklin Redevelopment Area (the old clinic site) became available for purchase. Due to its proximity to the existing redevelopment area and the extremely poor condition of the building, the EDA expanded the boundaries of an existing TIF District (TIF 4-16) and paid $120,000 to purchase the property from McLeod County Treatment Programs. Current The EDA purchased the 'Franklin House' in early 2021 and the plans call for the building to be building will be removed by mid-2021 to prepare the site for demolished sometime in 2021 redevelopment. and for the .33-acre site to be incorporated into a planned townhome development. Historic Hutchinson has indicated an interest in the original structure, theorizing that it might have a connection to the Harrington-Merill property nearby. This will be investigated further in 2021. 4 1 P a g e Franklin Street (Old Clinic) Redevelopment Site In 2015 the EDA initiated redevelopment of the Franklin Avenue area by establishing a Redevelopment TIF District and purchasing the severely blighted one -acre site of an old medical clinic/commercial office building. After the building was removed a Request for Proposals (RFP) document was developed and circulated to solicit ideas for how the area could be redeveloped. The winning proposal, as determined by the EDA, would have an opportunity to purchase the site for $1. The EDA would be reimbursed for its acquisition and demolition costs via future property tax revenue generated by the new development. Those dollars could then be utilized for additional redevelopment activities. r � Z •""� z +Wf r W W i + IT7 1ST AVE NW r 2ND ME NW �S , ,a.r � • o.t i i Z a a �*� r �� +ts{ 0 � � 6 �. 1114, r r t'111 f � 11 4 " r rr e !' I r r r r j Redevelopment TIF District 4-16 was expanded from its original dimensions (126 Franklin) to include 135 Franklin Street. A grant application to FEMA has been submitted to acquire and remove 125, 135 & 145 Glen Street on the northwest corner of the block. To facilitate redevelopment of the entire two -acre block, EDA staff submitted a grant application to FEMA in late 2019 for funding to acquire three properties in the 100-year floodplain and adjacent to the Crow River. If grant funding is obtained the buildings would be removed and a rain garden or other storm water control feature would be established in their place. The grant application was for $513,676, which would cover 75% of estimated project costs. The EDA is required to provide a 25% local match, which would amount to $171,225. Matching dollars are on hand, coming from the SHOPKO Development District, which had a balance of $194,260 at year-end. 5 1 P a g e Originally it was understood that the result of the Hutchinson FEMA grant application would be made known sometime in the September -October 2020 timeframe. Unfortunately, the announcement was delayed due to an administrative rule that requires McLeod County to have a current Hazard Mitigation Plan on file with FEMA at the time of grant award. As it happens, the McLeod County plan is currently being updated and won't be completed until the fall of 2021. The final disposition of the grant application will have to wait until that time. It is hoped that funding will be approved in the fall of 2021 and the project will be able to move ahead in 2022. In response to the EDA's Request for Proposals to redevelop the site, a local developer suggested a plan for an upscale rental townhome development and this proposal was accepted. The site would be redeveloped with approximately 41 two -bedroom townhomes with a garage on the ground level and two-story living spaces above. Stormwater runoff would be accommodated with a rain garden or stormwater retention pond on the northwest corner of the block. By establishing housing in and around the downtown, the project will provide more customers for area businesses, facilitate the establishment of a downtown arts & entertainment district and create a more walkable, 'greener' community. 0 q, In. The proposed redevelopment site plan envisions 41 two -bedroom townhomes with two floorplan options. 6 1 P a g e The proposed townhomes will feature ground -level garages with two-story living areas above. 3rd Avenue NW (CENEX) Redevelopment Site In 2007 the Hutchinson EDA and the City of Hutchinson initiated a project to redevelop an area between 3rd Avenue NW and the Crow River characterized by significant blight. Prior to EDA involvement, the 3rd Avenue NW site was home to the Cenex COOP fertilizer plant, blighted buildings and significant environmental contamination. After establishing a redevelopment TIF District, the Hutchinson COOP fertilizer plant and a neighboring residential property were acquired and the buildings demolished. Once done, the EDA worked with Hutchinson COOP and the Minnesota Pollution Control Agency's Voluntary 7 1 P a g e Investigation and Clean-up (VIC) program to complete an environmental cleanup of the site. During this time the EDA re -plated the former Hutchinson COOP property, the neighboring residential lot and an adjacent railroad right-of-way to create a new 3-acre lot so as to set the stage for redevelopment. Unfortunately, no redevelopment opportunities presented themselves (in part due to the Great Recession of 2007-2009) and the redevelopment TIF district was later decertified before any redevelopment activity took place. In 2020 a local developer expressed an interest in developing the site for high -end rental townhomes. At year end plans were being formulated for a rental townhome concept and it is hoped that a project will materialize on the site in 2021. Industrial Park Rite Way Conveyors The year began with discussions with Litchfield builder Systems West about the possibility of constructing a 30,000 square foot industrial "Spec" building in the Hutchinson Industrial Park. The proposed partnership would have the Hutchinson EDA provide an industrial park lot for $1, Systems West would finance and construct the building, and the EDA & Systems West would jointly market it. Systems West would then either lease or sell the building once a suitable tenant was identified. � j/ 8 1 P a g e At the same time, EDA staff was in talks with Rite -Way Conveyors about the possibility of expanding in Hutchinson. These two projects merged, with Systems West constructing a 40,500 square foot building that it leased to Rite Way Conveyors with an option for them to purchase later. The Hutchinson EDA established an economic development TIF District (TIF 4-21) that allowed it to sell the lot for $1 while establishing a mechanism to get itself reimbursed for 100% of the cost by capturing future property tax revenue generated by the project. Rite Way Conveyors manufactures a variety of material handling equipment including welded conveyors, gravity conveyors, spiral chutes, sorting systems and container handling equipment, among other items. The company moved into its new Hutchinson facility at the end of 2020 and had an initial employment of 35. Resonetics In November 2020 Resonetics completed the acquisition of TDK-HTI's medical devices division, bringing another precision, high-tech manufacturer to Hutchinson. With the purchase, Resonetics inherited approximately 150 TDK-HTI employees and concluded a long-term lease for 130,000 square feet of the HTI main building, inhabiting approximately the western third of the facility. Founded in 1987 and headquartered in New Hampshire, Resonetics is a privately -held company specializing in micro -manufacturing. Their focus is on components and assemblies for medical device and diagnostics manufacturers. Resonetics is a leader in laser processing, centerless grinding, nitinol processing, thin -wall stainless steel tubing fabrication, precious metal forming, and other critical machining services. The company has 10 locations globally. 9 1 P a g e Bkc ,..-znCSACQUIRES HUTCHINSON TECHNOLOGIES IN' - Solar Array The Hutchinson Utilities Commission (HUC) partnered with the EDA to explore the feasibility of constructing a 766 kWh solar array in the industrial park. HUC is responding to a desire of local manufacturers and city residents for a renewable energy option they could subscribe to. For the EDA, the project would provide an opportunity to power its offices at the Hutchinson Enterprise Center with 100% renewable energy, totally offsetting its utility bills. Savings for the EDA would be approximately $4,000 per year, thereby improving the cash flow of the facility. At year end tentative plans were made for construction of the solar array in mid-2021 on a three -acre lot adjacent to HUC's Generating Plant # 2, on the southwest corner of the city's industrial park. Proposed layout of HUC's 766 kWh solar array at the intersection of Industrial Boulevard and Hackbarth Street in the city's industrial park. 101Page Lot 1140 Improvements To increase its inventory of 'shovel -ready' industrial park lots the EDA began work to bring its 1140 5th Avenue SE lot up to development standards. Needed improvements include the construction of a storm -water retention pond and a suitable driveway onto 5th Avenue. An existing gravel approach on the south side of the lot would also be removed. In the fall of 2020 the EDA contracted with the engineering firm Short Elliot Hendrickson (SEH) to complete the design work for the needed improvements. Cost for the design work was $10,550. Construction of the needed improvements could be done in 2021 once a suitable funding source is identified. EDA staff is in discussions with a small CNC machine shop about possibly constructing a 5,000 square foot facility on the lot in 2021. Skilled Workforce Development The shortage of skilled workforce, particularly in manufacturing and the building trades, continues to be a major challenge to economic growth. The 2020 COVID pandemic forced high schools and colleges to shift to remote learning models for most of the year. As a result, the vast majority of skilled workforce development activities, by their very nature 'hands-on,' in -person and experiential, were put on hold. Assuming a return to in -person learning in 2021, renewed emphasis will be placed on promoting the success of TigerPath and other skilled workforce development initiatives in Hutchinson. 111Page Civil Air Patrol Training Facility The EDA aided in having Hutchinson chosen as the location of a Civil Air Patrol training facility — one of the few such dedicated facilities in the nation. Construction on the roughly $3.5 million facility is scheduled to begin with site work in mid -summer 2021 and building construction by the fall, with overall project completion about a year later. Included in the project will be construction of a hanger and a training center with classrooms, a dining facility and a barracks equipped with 120 bunks. The new training facility will be located on Airport Road adjacent to Hutchinson's airport and will host approximately 24 training events each year. "•� TPA#" FACKM A KVIOAR GARIGE ;. PNIKNOVOWfi OBSfAl191 j RKLOT MFMOFUL/TLAO ` e. YOLIEYBAII CO17OT8 OUTDOOR O/Nq �� '. fWI(VJI APiM]M 7AKMIAY ✓ RNMNO TMCK OMNNiE BNAIE •,�d �: 'A7' VEGETATED N*IDBFWMi V� i - v Site plan for Hutchinson's Civil Air Patrol training facility. Marketing Minnesota Marketing Partnership (MMP) To boost its marketing efforts, in early 2020 Hutchinson joined the Minnesota Marketing Partnership, organized by the Minnesota Department of Employment & Economic Development (DEED). The MMP is a public -private marketing effort designed to promote Minnesota to site selectors and corporate real estate managers at the state, regional and national levels. Membership gives 121Page Hutchinson a voice in shaping Minnesota's economic development marketing strategy, increases Hutchinson's visibility regionally and nationally and allows Hutchinson to incorporate MMP developed marketing materials into its own local marketing efforts. Cost for the annual membership was $700 and came from the EDA's marketing budget. Website Update Working with Vivid Image, the Hutchinson EDA reorganized and updated the look of its website, which is the EDA's primary marketing and outreach tool. Additionally, the website's functionality was modernized to make it work better on tablets and smartphones. The entire website was streamlined by reviewing data on the number of 'hits' each section of the old website received, then removing those pages that were infrequently viewed. Other modifications included: ■ The LOIS (Location One Information System) property management system was integrated into the website. LOIS is a national database of available buildings and sites often used by corporate site selectors and real estate managers. ■ Because expanding companies prefer locating near firms of like and similar nature, information about Hutchinson's manufacturers was added, along with links to their respective webpages. ■ As a state, Minnesota ranks #1, Top 5 or Top 10 nationally in literally dozens of categories. This information was added to the EDA website to highlight the fact that Minnesota is an exceptional place for business. ■ Information about the Hutchinson Enterprise Center was added to aid in the recruitment of early -stage companies. A further enhancement will be added in early 2021 when an on-line application form is developed for Enterprise Center admission. ■ To facilitate entrepreneurship in Hutchinson, the 'Start a Business' section was revised to better leverage existing resources from the Small Business Development Center, the Southwest Initiative Foundation and the Small Business Administration. ■ The 'Downtown' section of the website was revised with the addition of information for developers about the EDA's two downtown redevelopment projects: the Franklin Site and the 31d Ave. NW site. ■ The 'About Us' section of the website was expanded to include information about the EDA's mission, vision & values, the various awards the EDA has won over the years, and the EDA's strategic plan, along with EDA Board minutes and annual reports. 131Page The updated website keeps the Hutchinson EDA on the cutting edge of informational, site - selector optimized economic development websites. Social Media Outreach In 2020 the EDA maintained its social media presence with 118 postings on Facebook and Twitter. For the year 'likes' on Facebook increased from 326 to 538 (65% gain) and on Twitter from 90 to 98 (9% gain). In addition to being a popular channel for marketing and disseminating information, the EDA's social media presence enhances the visibility of the EDA's website on the internet. CARES Program As noted, 2020 was the year of the world-wide coronavirus pandemic. To assist businesses adversely affected by the pandemic the Federal government passed the CARES Act, which made funding available to localities so they could establish their own business assistance programs. In June the City Council made available $750,000 in CARES Act funding to the EDA for the development of a local business assistance program. The EDA developed a forgivable loan program with the aim of helping small -to -medium sized companies survive. To make provision of award amounts as objective as possible, a point system was developed whereby applicants would be scored on gross sales, net profits, number of employees and whether they had been shut down due to an executive order of the governor. With the assistance of Vivid Image, a web -site was developed to promote the program which featured an on-line application. In addition, paper applications were made available at City Center and the Chamber offices and EDA staff personally visited downtown businesses to make them aware of the program. A total of 81 applications were submitted with 69 being __"""'"' funded. The average forgivable loan was $10,878 with Non-profit 10 loans being eligible for forgiveness once documentation Downtown Business 27 was received documenting that dollars were used for Manufacturer 4 eligible expenses. Other 28 TOTAL 69 11 applications were denied for various reasons: business didn't lose money due to pandemic, lack of supporting documentation, business was not profitable pre -pandemic, business was defunct, business didn't meet size criteria, etc. $4,605 was reimbursed to the EDA for staff time used to administer the program. Altogether the EDA was able to utilize $701,526 (93.5%) of the funds allocated. The balance was returned to the City which used it to cover eligible municipal expenses. 141Page Strategic Plan Update The Hutchinson EDA's strategic plan, which serves as the blueprint for economic development in the city, was revised and updated in early 2020. Broadly speaking, the EDA plan for economic development in Hutchinson includes: ✓ Prioritizing existing Business Retention & Expansion ✓ Facilitating skilled workforce development with TigerPath ✓ Growing our own companies through a comprehensive program of business incubation ✓ Maximizing our readiness in order to attract business expansion projects ✓ Promoting downtown redevelopment to maintain an attractive, vibrant downtown area. The EDA's marketing strategy is to continue building the'Minnesota's Manufacturing City' brand with a first -in -class economic development website and social media presence and by actively cultivating relationships with corporate site selectors and commercial realtors. Downtown Association Support The EDA continued its staff support for the Hutchinson Downtown Association in 2020. Due to the ongoing pandemic most of the HDA's traditional activities, such as Picnic in the Park and Main Street Christmas, were cancelled for the year. The HDA's board of directors is listed in Table 5, below. Table 5 — Hutchinson Downtown Association Board of Directors, 2020 Position Affiliation Mike Cannon President Citizen's Bank & Trust Dr. David Mach Vice -President Hutchinson Family Dentistry Joanne Willmert Treasurer The Village Shop Matt Pulkrabek Director Hometown Realty Kevin True Director Hutchinson Leader Kris Haag Director Jamie Maas Director Southwest Eye Care George Quast Liaison Historic Hutchinson Mary Hodson Liaison Chamber of Commerce Gary Forcier Liaison City Council Tim Rohde Liaison Hutchinson Farmers Market 151Page EDA BUDGET & FUND REPORT Operating Budget For the year the Hutchinson EDA finished on budget, with a final net operating revenue gain of $6,913 over the previous year. This amount goes to the EDA's fund balance, which now stands at roughly 77% of projected expenditures for the upcoming year. On the revenue side of the ledger, the EDA finished 2020 with total revenues of $196,351 against a budgeted amount of $190,883. The $5,468 in additional revenue came primarily from reimbursement of staff time utilized in the administration of the CARES business assistance program, with a small amount coming from hay land rental revenue being higher than anticipated. For expenditures, the EDA finished the year with expenditures of $189,438 compared with the budgeted amount of $189,883. The savings of $445 was due to lower operating supplies, which is where EDA Board and Finance Team meals are coded. Due to the pandemic most meetings were held virtually, so there was no accompanying meal expense. Significant additional savings came about due to a very low amount of staff travel / conferences expenses, again due to the pandemic. The resulting savings was utilized to fund the update of the EDA website and still keep the EDA on -budget. For 2021 the EDA levy was set at $200,325 — an increase of about 6% ($11,192) over the 2020 levy amount of $189,133. Economic Development Loan Fund The Economic Development Loan Fund finished the year with $105,744 in cash available, a gain of $46,801 over the previous year. Less a $20 accounts payable item, the gain in cash is detailed in the table at right. SOURCEAMOUNT Interest earnings $9,505 Redline Systems loan payoff $6,309 Loan payments (2 companies) $12,655 Enterprise Center loan payment $18,352 TOTAL $46,821 Among its assets, the ED Loan Fund also has two loans that may be forgiven if the companies meet certain job -creation goals; these are loans of $23,000 to Laser Dynamics and $14,355 to Innovative Foam. Downtown Revolving Loan Fund At the close of 2020 the Downtown Revolving Loan Fund had $655,286 in cash available and 16 loans receivable totaling $247,902. All loans were performing (more -or -less) as required and four loans were paid off during the year. In addition, the fund had a total of $201,329 invested in two capital assets: the former Cenex and Wright properties on 3rd Avenue NW. Finally, the Franklin 161 Page Street TIF District owes the downtown revolving loan fund $5,184. Total assets in the fund at year-end totaled $1,109,701— a decline of $14,496 from the previous year. Minnesota Investment Loan Fund The Minnesota Investment Loan Fund, made up of dollars obtained from DEED through a federally -funded MIF grant, finished 2020 with a cash balance of $4,597 and one loan receivable of $13,812 from Moxy. The loan was performing as required. Hutchinson Enterprise Center The Hutchinson Enterprise Center budget finished the year with a cash balance of $20,529 and rent receivable of $8,180. Tenant companies were allowed to defer rent payments for a portion of the year due to the pandemic. At year end one company was still getting caught up on its rents, which it hoped to do by Q3 of 2021. Operations were more -or -less on budget for the year. Revenues totaled $65,746 for the year, just $294 shy of the $66,040 budgeted. On the expense side the Enterprise Center was on budget, with expenses for the year totaling $43,504 against a budget of $60,040. The difference of $18,352 was applied to the Enterprise Center's loan from the Economic Development Loan Fund. With this payment, the Enterprise Center owed $264,794 at year-end. SHOPKO Development District The SHOPKO Development District finished the year with $194,260 cash on hand and receivables of $483,475. Total assets then were $677,735. Table 6, below, breaks down the receivables. Table 6 — SHOPKO Development District Receivables Old Medical Building $322,661 Enterprise Center TIF $136,285 Cobblestone Hotel TIF $12,915 Warrior Mfg. TIF $9,045 Rite -Way Conveyors TIF $0 TOTAL Additional Notes: $333,863 + $11,202 $129,108 ($7,177) $0 ($12,915) $9,389 + $344 $11,114 + $11,114 $483,475 Interest on balance TIF payment TIF payment Interest on balance New TIF District The Old Medical Building receivable is for the acquisition of the Franklin Avenue property and demolition of the building that used to occupy it. A redevelopment TIF district (TIF 4-16) has 17 1 Page been created on the site so that, once redeveloped, property taxes can be captured to reimburse SHOPKO Development District. To keep the TIF District from falling victim to the '5-year rule' mandated by state statute, a development agreement must be in place by August 31, 2021. The Enterprise Center TIF receivable represents a loan made to cover Enterprise Center site work from when the building was constructed. The Enterprise Center TIF District is generating tax increment to repay this loan plus interest. The Cobblestone Hotel TIF receivable is now paid off. Originally this was to cover the costs of establishing the Cobblestone Hotel Soil Conditions TIF District. The Warrior Mfg. TIF receivable is for expenses related to establishing that economic development TIF District. Finally, the Rite Way Conveyors TIF receivable is for expense related to the establishment of that economic development TIF District. At least $171,225 of the existing cash balance in the SHOPKO Development District is reserved to cover the required 25% local match for the FEMA grant to acquire and remove three properties on the northwest corner of the Franklin redevelopment site. GOVERNANCE EDA Board The Hutchinson Economic Development Authority is governed by a seven -member board of directors appointed by the City Council for six -year terms. Two City Council members serve on the EDA Board, serving as a liaison between the two groups. Membership on the Board was stable for 2020, with Corey Stearns being appointed to second 6-year term in January. Table 7 below, provides additional detail. Table 7 — Economic Development Authority Board of Directors, 2020 mlemner itosition-- ars Service Attiliation Mike McGraw President 16 State Farm Insurance Jonny Block Vice-president 3 Hillyard Chad Czmowski City Council liaison 12 City Council/Outdoor Motion Daron Vanderheiden Commissioner 11 ISD 423 Mary Christensen Corey Stearns Mike Cannon Jeremy Carter City Council liaison Commissioner Commissioner Ex-officio 10 City Council 6 Stearnswood 5 Citizens Bank Hutchinson Utilities Comm. 181Page Overseeing the financial aspects of the Economic Development Authority is the EDA Finance Team. Comprised of two EDA Board members and seven other members of the community, the Finance Team provides recommendations to the EDA Board on everything from budgets to proposed financial incentives. Banker Josh Laffen was appointed to a 1-year term in August. Finance Team membership for 2020 is detailed in Table 11. Table 11— EDA Finance Team, 2020 MemberPosition Mike Cannon Chair / EDA Board Liaison Citizens Bank Scott Ziegler Member Piehl, Hanson, Beckman Anthony Hanson Member Citizens Bank Jack Daggett Member Pride Solutions Corey Stearns EDA Board liaison Stearnswood Josh Karg Member Heartland Ag Systems Eric Lipke Member MITGI Ben King Member Kraft, Walser Law Office Josh Laffen Member Home State Bank SUMMARY Despite the adverse economic effects of the coronavirus pandemic 2020 was a relatively busy year for the Hutchinson EDA. Significant projects were launched both in the downtown and the industrial park and existing initiatives continued to move forward. By year end a potential developer was identified for both the Franklin Street and the 3rd Avenue NW redevelopment sites. A number of significant projects could unfold in 2021: • Townhome development on the 3rd Avenue NW site • FEMA grant for the Franklin Street redevelopment area • Removal of the Franklin House • 766 kWh solar array comes on-line in the industrial park • Jump -Start downtown brings a new business to Main Street • Possible redevelopment of 101 Park Place • Possible new manufacturer in the industrial park The Hutchinson Economic Development Authority continues to successfully promote redevelopment, job creation and success of manufacturing in the community. 191Page Appendix A EDA Financial Statements (2020 year-end) H I P a g e HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY ASSETS Cash Accounts Receivable TOTAL ASSETS LIABILITIES Accounts Payable Accrued Payroll & Vacation TOTAL LIABILITIES EQUITY Reserved - Land (Warrior Sale) Unreserved Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES & FUND BALANCE December December 2020 2019 2020 Change $ 145,973 $ 147,174 $ 1,201 1,779 4,572 2,793 147,762 151,746 3,994 720 1,798 1,078 6,954 2,957 (3,997) 7,674 4,754 (2,919) 56,736 56,736 - 83,342 90,256 6,913 140,078 146,992 6,913 $ 147,752 $ 151,746 $ 3,994 HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY Statement of Revenues & Expenditures As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY Available Description Budget December YTD Balance REVENUES Current Ad Valorem Taxes $ 189,133 $ 1,334 $ 188,371 $ 762 Delinquent Ad Valorem Taxes - 105 721 (721) Rentals -Property 500 - 983 (483) Interest Earnings 1,250 77 1,234 16 Refunds & Reimbursements - - 5,042 i5,042) TOTAL REVENUE 190,883 1,516 196,351 (5,468) 102.9% EXPENDITURES Full-time Employees -Regular 105,489 9,588 92,724 12,765 Part-time Employees -Regular 14,845 925 12,627 2,218 Vacation Pay - 2,649 6,888 (6,888) Holiday Pay - 1,851 5,145 (5,145) Sick Pay - 757 3,351 (3,351) PERA - Coordinated 9,025 1,183 9,055 (30) FICA 7,181 917 6,881 300 Medicare 1,679 222 1,617 62 Worker's Comp Insur Premiums 731 90 698 33 Health 19,764 1,653 19,846 (82) HSA Contribution 2,000 154 2,000 - Admin Fees - HSA/FLEX 55 - 56 f l i TOTAL SALARIES & FRINGE BENEFITS 160,769 19,990 160,889 (120) 100.1% Office Supplies 200 - 207 (7) Operating Supplies 3,500 - 924 2,576 Motor Fuels & Lubricants 200 - 53 147 Small Tools & Minor Equipment 500 - 123 377 TOTAL SUPPLIES, REPAIRS, & MAINT. 4,400 - 1,306 3,094 29.7% Other Professional Services 1,500 - 2,522 (1,022) Phone Services 1,900 220 1,328 572 Postage 200 119 173 27 Software & Licensing 4,500 137 4,969 (469) Travel/Conference Expense 3,000 - 868 2,132 Advertising 2,000 180 8.289 (6,289) Printing & Publishing 1,500 29 319 1,181 Contractual R&M 1,000 - - 1,000 Automotive R&M 1,000 202 324 676 Contracted Services - Printing 500 26 438 62 TOTAL OTHER SERVICE & CHARGES 17,100 913 19,231 (2,131) 112.5% Dues & Subscriptions 800 - 1,039 (239) Taxes & Assessments 400 - 463 (63) Donations to Civic Org. (SWIF) 6,000 - 6,000 - Miscellaneous Expense 1,414 - 511 903 TOTAL MISCELLANEOUS 8,614 - 8,012 602 93.0% TOTAL OPERATING EXPENDITURES 190,883 20,903 189,438 1,445 99.2% NET OPERATING REVENUE (LOSS) $ - $ (19,387) $ 6,913 $ {6,913) ECONOMIC DEVELOPMENT LOAN FUND Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY ASSETS Cash Loans Receivable Redline Systems Ashwill Zephyr Wind Services Laser Dynamics (5-year forgiveable loan) Innovative Foam (5-yearforgiveable loan) Total Loans Receivable Advances to Other Funds (Enterprise Center) TOTAL ASSETS LIABILITIES Accounts Payable TOTAL LIABILITIES EQUITY Unreserved Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES & FUND BALANCE December December 2020 2019 2020 Change $ 58,942 $ 105,744 $ 46,801 6,309 - (6,309) 6,826 3,661 (3,165) 97,929 88,440 (9,490) 23,000 23,000 - 14,355 14,355 - 148,420 129,455 (18,964) 283,146 264,794 (18,352) 490,508 499,994 9,486 19 - (19) 19 - (19) 490,489 499,994 9,505 490,489 499,994 9,505 $ 490,508 $ 499,994 $ 9,486 ECONOMIC DEVELOPMENT LOAN FUND Statement of Revenues & Expenditures FULL ACCRUAL - INTERNAL USE ONLY Available Description Budget December YTD Balance REVENUES Loan Interest Income $ - $ 315 $ 3,094 $ (3,094) Interest Earnings - 5,642 6,410 i(6,410) TOTAL REVENUE - 5,958 9,505 (9,505) EXPENDITURES TOTAL EXPENDITURES NET REVENUE (LOSS) $ - $ 5,958 $ 9,505 $ 9,506 ENERGY LOAN FUND - DOWNTOWN LOAN FUND Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY December December 2020 2019 2020 Change ASSETS Cash $ 566,687 $ 655,286 $ 88,599 Accrued Receivable - - - Loans Receivable Advances to Other Funds (Franklin Street TIF) Cenex Property - Capital Asset ($150K due to City) Wright Property - Capital Asset TOTAL ASSETS LIABILITIES Accounts Payable Unvailable Revenue (accrued interest on interfund loans) TOTAL LIABILITIES EQUITY Invested In Capital Assets Reserved for Approved/Unpaid Loans & Grants Unreserved Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES & FUND BALANCE 356,181 247,902 (108,279) - 5,184 5,184 157,195 157,195 - 44,134 44,134 - 1,124,197 1,109,701 (14,496) 184 - (184) 5 5 184 5 (179) 201,329 201,329 - - 150,000 150,000 922,684 758,367 (164,317) 1,124,013 1,109,696 (14,317) $ 1,124,197 $ 1,109,701 $ j14,4� ENERGY LOAN FUND - DOWNTOWN LOAN FUND Statement of Revenues & Expenditures FULL ACCRUAL - INTERNAL USE ONLY Available Description Budget December YTD Balance REVENUES Loan Interest Income $ - $ 522 $ 5,465 $ (5,465) Interest Earnings - 344 6,631 (6,631) Refunds & Reimbursements - - 200 (2001 TOTAL REVENUE - 866 12,296 (12,296) EXPENDITURES Sign & Awning Grants - 1,356 26,613 (26,613) TOTAL EXPENDITURES - 1,356 26,613 (26,613) NET REVENUE (LOSS) $ - $ (490) $ 4,3171 $ 14,317 MINNESOTA INVESTMENT LOAN FUND Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY ASSETS Cash Accrued Receivable Loans Receivable - Moxy TOTAL ASSETS LIABILITIES Accounts Payable TOTAL LIABILITIES EQUITY Unreserved Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES & FUND BALANCE December December 2020 2019 2020 Change $ 2,416 $ 4,597 $ 2,181 15,954 13,812 t2,142; 18,370 18,409 39 18,369 18,409 39 18,369 18,409 39 $ 18,370 $ 18,409 $ 39 MINNESOTA INVESTMENT LOAN FUND Statement of Revenues & Expenditures FULL ACCRUAL - INTERNAL USE ONLY Available Description Budget December YTD Balance REVENUES Interest Earnings $ - $ 2 $ 39 $ (39) TOTAL REVENUE - 2 39 (39) EXPENDITURES TOTAL EXPENDITURES - - - - Revenue over (under) expenditures $ - $ 2 $ 39 $ (39) HUTCHINSON ENTERPRISE CENTER Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY ASSETS Cash Accounts Receivable Accrued Receivable TOTAL ASSETS LIABILITIES Accounts Payable Advance from Other Funds (ED Loan Fund) Security Deposit TOTAL LIABILITIES EQUITY December December 2020 2019 2020 Change $ 23,311 $ 20,529 $ (2,782) 1,940 8,180 6,240 260 - t 260 ) $ 26,511 $ 28,709 $ 3,198 1,569 876 (692) 283,146 264,794 (18,352) 4,000 4,000 - 288,715 269,671 (19,044) Unreserved Fund Balance (263,204) (240,962) 22,242 Building Maintenance Reserve _ _ _ TOTAL FUND BALANCE (263,204) (240,962) 22,242 TOTAL LIABILITIES & FUND BALANCE $ 26,511 $ 28,709 $ 3,198 HUTCHINSON ENTERPRISE CENTER Statement of Revenues & Expenditures FULL ACCRUAL - INTERNAL USE ONLY Description Budget December YTD Available Balance REVENUES Rentals - Base Rent $ 32,000 $ 2,667 $ 32,000 $ 0 Rentals - Other 33,440 2,787 33,440 (0) Interest Earnings 600 10 306 294 TOTAL REVENUE 66,040 5,463 65,746 294 EXPENDITURES Operating Supplies 500 - 298 202 Other Professional Services 200 - 1,992 (1,792) Building Insurance 1,350 - 1,362 (12) Utilities 5,106 871 4,650 456 Refuse - Recycling 3,500 491 2,990 510 Contract Repair & Maintenance 2,000 420 420 1,580 Contracted Snow Removal 6,600 - 4,450 2,150 Property Taxes 22,530 - 21,700 830 Miscellaneous Expense 315 - 55 260 Interest Expense - Interfund Loan 5,587 5,587 5,587 ;Oi TOTAL EXPENDITURES 47,688 7,369 43,504 4,184 NET REVENUE (LOSS) $ 18,352 $J1,906) $ 22,242 $ (3,8901 Interfund Loan - Principal Payment 18,352 18,352 18,352 0 Cash Flow - �20,258) 3,890 (3,890) TIF #4-5 - Shopko Redevelopment Balance Sheet As of December 31, 2020 FULL ACCRUAL - INTERNAL USE ONLY ASSETS Cash Accrued Receivable Interfund Loan Receivable - TIF #4-16 (Old Medical Bldg) Interfund Loan Receivable - TIF #4-17 (Enterprise Center) Interfund Loan Receivable - TIF #4-19 (Hwy 7/15 Soils) Interfund Loan Receivable - TIF #4-20 (Warrior Expansion) Interfund Loan Receivable - TIF #4-21 (Benjamin Ave) Total Interfund Loans TOTAL ASSETS LIABILITIES Accounts Payable Unvailable Revenue (accrued interest on interfund loans) TOTAL LIABILITIES EQUITY Unreserved Fund Balance TOTAL FUND BALANCE TOTAL LIABILITIES & FUND BALANCE December December 2020 2019 2020 Change $ 183,817 $ 194,260 $ 10,443 322,661 333,863 11,202 136,285 129,108 (7,177) 12,915 - (12,915) 9,045 9,389 344 - 11,114 11,114 480,906 483,475 2,569 664,723 677,735 13,012 43,058 54,715 11,657 43,058 54,716 11,657 621,665 623,020 1,355 621,665 623,020 1,355 $ 664,723 $ 677,735 $ 13,012 TIF #4-5 - Shopko Redevelopment Statement of Revenues & Expenditures FULL ACCRUAL - INTERNAL USE ONLY Available Description Budget December YTD Balance REVENUES Interest Earnings - 5,688 8,089 (8,089) TOTAL REVENUE - 5,688 8,089 (8,089) EXPENDITURES Other Professional Services - - 6,734 (6,734) TOTAL EXPENDITURES - - 6,734 (6,734) NET REVENUE (LOSS) $ - $ 5,688 $ 1,355 $ 1,365 2020 LOAN ACTIWY Loan Lan Term Dates Month payments Ending Amount Rate Term Start End Jan Fah Mar Apr Mar _ Jun Jul Aug Sep Oct Nov Dec Total Balance Barton, Steve 19,939 3.25% 120 mos 09/01/15 08/0125 S 195 $ 195 S 196 S 195 $ 195 $ 195 $ 195 $ 195 $ 195 $ 195 $ $ 390 $ 2,338 $ 9,873 ; Clark, Casey 30,000 4.00% 120 mos 03101/18 02/01/28 304 304 304 304 - - 304 304 - 1,822 24,048 Elder, Julie 20,905 5.25% -125% 120moe 01/01/21 12101MO - - - - - - . - _ _ - - 20,905 Katcher, Shad (MGE LLP) 65,ODO 120 mos O5A1/15 00125 1,153 577 577 577 - 577 577 577 577 - 1,153 6,342 29,651 Mach, David 130,000 1.25% 120 mos OB/01/12 08/01/22 'r53 1.153 1,153 - - - - - 1,153 1.153 1.153 6,918 28,505 Mach, David 30,000 -30,000 425% 120 mos 09101/18 081010 30'7 307 307 - - - 307 307 307 1.844 25,331 Max, Marcus & Michelle 3.50% 120 mos W09/16 1110126 297 297 297 - 593 593 297 - 297 297 297 297 3,560 18,898 Mayland, Joseph (MSSB) 130,000 3.25% 180 mos 0=1112 07101/27 913 913 913 - - - 71,758 - 74,499 McCarthy, Robert 65,000 4.50% 160 mos 011OV05 01/0120 - 21 - - - - - - 21 Meyer, Lorraine 35,000 125% 120mos 06A7/10 05t0120 310 310 310 310 181 1,423 Meyer, Lorraine 12,060 325% 120 mos 07MV15 0610125 1113 118 118 - - - 118 247 428 1,147 6C4. Oman,BreB 17,487 125% 120 mos OWl/12 061O121 - - - - - 4DO 400 553 Peterson ,Richard #3 8,300 325% 180 mos, 05A1r09 OSr01J24 - 117 - - - - - 58 58 _ 233 6; Pr lWtz,Katherine#1 19,640 125% 120mos 0801/13 07/0123 1�16 - - 350 - - - 695 201 6,032 Prelhvitz,Katherine #2 19,500 1.25% 120 mos 09101/13 OB/0123 1,038 - 350 - 898 2.075 6,306 Quads, Howard 10,964 125% 120 mos 02/01/12 01101122 97 97 97 97 194 194 194 97 - 1,070 -1,157 Quads, Howard 10,900 3.25% 120 pros 12101/17 1110127 107 107 - 107 107 213 320 213 1.276 7,884 !. Quadt, George 17,370 125% 120 mos 01101/11 1110120 154 154 154 154 154 154 1-A 154 1,4 154 104 - 1,645 - Quast,George 4,963 1.25% 120mos lVD1/14 10/01/24 44 44 44 44 44 44 ..- -44 •-•• 44 94 198 732 1,768 ;Sebesla,Dave 12.800 125% 120 mos 01/01/13 12/0122 114 114 114 - - - - - :,a 114 114 681 3,343 Werowinski, Leah & Jason 81.941 3.25% 180 mos 10/01/14 0910129 576 576 576 S76 576 576 3,455 54,894 Downtown Lan Pond $ 771,770 $ 8,095 $ 5,403 $ 5,061 $ 1,477 S 1,890 $ 1,394 $ 1,266 $ 1,483 $ 73,024 $ 4,614 $ 3,638 $ 6,398 $ 113,743 $ 247,902 Redline Systems $ 16,939 5.00% 94 mos 04/01116 1210121 6.318 - - - - 6,318 $ - AshwfllIndustries 16,939 5.00% 84 mos, 0001116 12O10 287 287 2117 - 29 287 287 287 1,146 287 3,439 3,661 Zephyr Wind Services 100,000 4.00% 84 mos 11r01119 1113026 1,367 1,367 1,367 - - - 1,367 1.367 1.367 1,367 1,367 - 1,367 12,302 88,440 Laser Dynamics 23,D00 0.00% 60mos 121OM7 11/3022 - - - - 23,000 Innovative Foam 14.355 0.00% 60mos 12/01/17 11/3022 - - 14,355 Economic DevLoan Fund $ 171,233 S 7,971 $ 1,653 $ 1,653 $ - $ - $ - $ 1,653 $ 1,653 $ 1,653 $ 1,653 $ Z513 $ 1,653 $ 22,059 $ 129,455 MOXY $ 20,000 0.00% 84 mos 08/02/18 07/0225 $ 238 $ 238 $ 238 $ $ $ $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 2,142 $ 13,812 ht/FLoan Rmd $ 20,000 $ 238 $ 238 $ 238 $ - $ - $ - S 238 $ 238 $ 238 S 238 S 238 $ 238 $ 2,142 $ 13,812 TOTAL-ALLLOANS $ 791770 S 16-304 S 7.294 $ 6,953 $ 1,477 S 1,890 S 1,394 $ 3,158 $ 3.375 $ 74.916 S 6.505 $ 6.390 S 8290 $ 137944 $ 391169 Base Addl Total Total Rent Rent Due Month N Pavmmts Outstandino Innovative Foam $ 1,000 $ 1.045 $ 2,045 $ 1,920 $ 2,045 $ 2,D65 $ 2,045 $ $ $ $ - $ - $ 14,315 $ 2,045 $ - $ 24,435 Laser Dynamics 1,333 1,393 2,727 2,727 2,727 2,727 - - - - 2,727 10,907 2,727 24MO 8,180 RD Machine 333 348 682 640 723 682 1,363 682 682 682 682 682 682 682 8,180 EnterpdseCenter $ 2,667 $ 2,787 $ 5,453 $ 5,287 S 5,495 S 5,473 $ 2,045 $ 1,363 $ 682 $ 682 $ 682 S 682 $ 17,723 S 13,633 $ 3,408 $ 57,155 $ IIJ80 Appendix B Report on 2020 Work plan & Goals 2021 Work plan & Goals M I Page PROJECT / GOAL STATUS 1 BUSINESS RENTENTION & EXPANSION A Conduct BR & E visits (as needed) DONE 2 DOWNTOWN A Identify developer for Old Medical Clinic Site DONE B Aid in redevelopment of blighted properties in and around downtown DONE C Continue support of Hutchinson Downtown Association DONE D Finalize Spin-off of Farmer's Market DONE E Promote development of former Cenex Fertilizer Site Pending F Assist as needed Main Street reconstruction DONE G Evaluate feasibility & options for 101 Park Place Redevelopment Failed 3 INDUSTRIAL PARK & BUSINESS RECRUITMENT A Recruit at least one new company for industrial park DONE B Pursue development of an industrial Spec Building DONE 4 HUTCHINSON ENTERPRISE CENTER A Establish relationship with SCSU MBA Program Failed B Make payment to ED Loan Fund of $20,000 (in December) DONE 5 SKILLED WORKFORCE DEVELOPMENT A Continue implementation of Skilled Workforce Development Plan DONE B Facilitate ramp up of Tiger Manufacturing DONE C Aggressivly market Hutchinson's Skilled Workforce Development Plan DONE 6 MARKETING & PUBLIC RELATIONS A Marketing Regular updates to EDA website DONE Regular Facebook / Twitter updates DONE Join DEED Minnesota Marketing Partnership DONE Cultivate relationships with Corporate Site Selectors / Commercial Realtors DONE Develop strategic partnerships (DEED, swiF, SBDC, Ridgewater, etc.) DONE B Public Relations Speaking engagements to service clubs, etc. (as invited) DONE 7 GENERAL / MISCELLANEOUS A Obtain $100,000 in grants (various uses) Pending B Do everything feasible to fill vacant "big box" buildings. DONE C Complete review & update of EDA Strategic Plan DONE D Staff continues professional development DONE E Planning for development of Hwy 7 east corridor Failed F Promote development of County economic development effort DOVE PROJECT / GOAL STATUS 1 BUSINESS RENTENTION & EXPANSION A Conduct BR & E visits (as needed) 2 DOWNTOWN A Continue development of Franklin Street (Clinic) Site B Aid in redevelopment of blighted properties in and around downtown C Continue support of Hutchinson Downtown Association D Identify developer for 3rd Avenue NW (Cenex) Site E Launch downtown pandemic recovery initiative(s) F Facilitate continued development of Depot MarketPlace G Evaluate feasibility & options for 101 Park Place redevelopment 3 INDUSTRIAL PARK & BUSINESS RECRUITMENT A Recruit at least one new company for industrial park B Pursue development of an industrial Spec Building 4 HUTCHINSON ENTERPRISE CENTER A Establish relationship with SCSU MBA Program B Make loan payments to ED Loan Fund totalling $23,939 5 SKILLED WORKFORCE DEVELOPMENT A Continue implementation of Skilled Workforce Development Plan B Facilitate ramp up of Tiger Manufacturing C Aggressivly market Hutchinson's Skilled Workforce Development Plan 6 MARKETING & PUBLIC RELATIONS A Marketing Regular updates to EDA website Regular Facebook / Twitter updates Cultivate relationships with Corporate Site Selectors / Commercial Realtors Develop strategic partnerships (DEED, swiF, sBDc, Ridgewater, etc.) B Public Relations Speaking engagements to service clubs, etc. (as invited) 7 GENERAL / MISCELLANEOUS A Obtain $100,000 in grants (various uses) B Do everything feasible to fill vacant "big box" buildings D Staff continues professional development E Planning for development of Hwy 7 east corridor F Promote & facilitate County economic development effort c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Land Lease Agreement with Hutchinson Utilities Commission for Solar Energy Agenda Item: Project Department: Legal LICENSE SECTION Meeting Date: 1/1/2021 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In order to continue with the renewable energy and energy conservation measures initiatives that the City of Hutchinson and Hutchinson Utilities Commission have begun over the years, the City and HUC have proposed a partnership for a solar project array that would be located on land that the City of Hutchinson owns in the Industrial Park near the corner of Industrial Boulevard and Hackbarth Street. The solar array will be approximately 80,000 square feet in size and will be connected to Hutchinson Utilities Plant #2 located at 1106 Industrial Blvd. SE. The solar power generating related infrastructure and fixtures will be the property of Hutchinson Utilities Commission. However, the solar array will be constructed on property owned by the City, therefore, a lease outlining the use of the City's property by Hutchinson Utilities Commission is proper. Under the lease, Hutchinson Utilities Commission can construct the solar array on the City's property. Hutchinson Utilities Commission has the ability to use the property to generate solar power, or other green energy if technology changes, for a period of 20 years with HUC having the right to extend the period of the lease for two additional five-year terms. Hutchinson Utilities Commission will pay the City $40,000 a year to use the City's property and of that $40,000, $4000 is to be paid to the Hutchinson Economic Development Authority to help offset the electric costs it has been incurring at the EDA's business incubator facility in the Industrial Park. I recommend approval of this lease. If you have further questions concerning it, I would be happy to address them at the city council meeting. BOARD ACTION REQUESTED: Approve lease agreement with Hutchinson Utilities Commission for solar energy project. 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 Real Estate Lease Agreement This real estate lease agreement (the "Agreement") is made this day of , 2021 by and between the City of Hutchinson, Minnesota having an address of 111 Hassan St. SE., Hutchinson, Minnesota, 55350 ("Landlord") and the Hutchinson Utilities Commission having an address of 225 Michigan St. SE., Hutchinson, Minnesota 55350 ("Tenant") and is to allow tenant to construct and operate a solar power generating facility. 1. Leased premises. Landlord shall lease to tenant and tenant shall lease from landlord, pursuant to the terms of this agreement, an area of land in the city of Hutchinson, McLeod County, Minnesota, specifically described as: The North 69 feet of Lot 2 and Lot 3 and 1-� of the Vacated Superior St., Southeast (1106 Industrial Blvd. SE.) and Lot One, Block One, Energy Park North 2nd Addition (250 Hackbarth St. SE.) 2. Term. The lease term shall be as follows: a. The primary term of this lease shall be 20 years commencing on the date in which this lease was entered into. b. Tenant shall have the option and right to elect to extend this lease for up to two (2) five (5) year extensions (each such extension referred to as a "Renewal Term", or collectively as the "Renewal Terms"). Tenant shall give landlord written notice of its election to extend the lease on or about the commencement of the 20th year of the Primary Term, or no later than 60 days prior to the end of the then current Renewal Term, as appropriate. c. A Final Term commencing upon expiration of the Primary Term, or expiration of the last Renewal Term, as appropriate, to allow for tenants decommissioning and removal of the solar generating facility. The Final Term shall last no longer than 6 (6) months, unless extended per mutual written agreement of the Tenant and Landlord. 3. Rent. The rent paid by tenant to landlord for the use of the premises shall be $40,000 per year, which shall be payable to the landlord by January 31 of each year. $4000 of the $40,000 shall be paid to the Hutchinson Economic Development Authority by the landlord. 4. Improvements of The Leased Premises. a. Components. Tenant shall construct an AC solar power generating facility at its sole expense. The solar power generating facility shall consist of racking and support apparatus, inverters and transformers; necessary electrical interconnections and all improvements and connections required to transfer and deliver generation off -site, security fencing and gating, safety signage and the solar photovoltaic panels (collectively the "site improvements and infrastructure"). Landlord has no obligation to make improvements on the leased premises or landlord property to accommodate the solar power generating facility. b.Construction plans. For any construction on the leased premises, such construction shall be designed and built to the minimum standards for any county, state and federal codes and requirements in effect at the time of the construction, including without limitation, the applicable building and fire codes. c. Signage. Tenant shall have the right to place signs advertising the solar generating facility provided that, prior to the installation of any such signage, tenant has obtained all required sign permits from the local governing authority, and all signage shall be in conformity with regulations pertaining to signs. d. Fencing. Tenant shall maintain a fence around the solar farm for the duration of the Primary Term and any extensions thereto and shall keep such fencing maintained. 5. Ingress, Egress, Utility and Solar Easement. The rights granted to tenant in this lease include, without limitation, the following easements and related rights: a. The exclusive right to erect, construct, reconstruct, replace, relocate, remove, operate, maintain and use the following from time to time, on under over and across the leased premises, in connection with the solar power generating facility all poles, with such wires and cables as from time to time are suspended therefrom, and/or underground wires and cables for the transmission of electrical energy and/or for communication purposes, and all necessary and proper foundations, footings, crossarms and other appliances and fixtures for use in connection with said utility poles wires and cables (collectively "transmission facilities"); (b) facilities consisting of one or more substations for electrical collection, to step up the voltage, interconnected transmission line or lines, and meter electricity, together with the right to perform all other ancillary activities normally associated with such a facility as may be necessary or appropriate to service the solar power generating facility, regardless of where they are located (collectively "interconnection facilities" which collectively with the transmission facilities and improvements installed in connection with the solar power generating facility, collectively constitute the "solar improvements"); and (c) with all necessary easements therefor; b. An easement and right over and across the landlord's property for any audio, visual, view, light, shadow, noise, vibration, electromagnetic or other effect of any kind or nature whatsoever resulting, directly or indirectly, from the solar power generating facility, including but not limited to rights to cast shadows and reflect clear onto all of landlord's property including any adjoining property, from the solar power generating facility and/or any and all other related facilities, wherever located; c. An exclusive easement and right to capture, use and convert sunlight and related solar resources on an unobstructed basis over and across the landlord property; any obstruction to the receipt of and access to sunlight throughout the entire area of the leased premises is prohibited; d. An access easement over and across the landlord's property for ingress and egress to the leased premises, to and from a public road and a construction and utility easement over landlord's property adjacent to the leased premises for construction and maintenance of the solar improvements. e. An exclusive right for the installation, use, repair, replacement and removal of transmission facilities across the landlord's property; f.An exclusive right for the installation, use, operation, maintenance, repair, replacement and removal of interconnection facilities across the landlord's property; g. An easement and right on the landlord's property to prevent measurable diminishment in output due to obstruction of the sunlight across the leased premises including, but not limited to, an easement right to trim, cut down and remove all trees, rocks, brush, vegetation and fire and electrical hazards now or hereafter existing on the landlord's property which might obstruct receipt of or access to sunlight throughout the leased premises or interfere with or endanger the solar power generating facility or tenant's operations, and dispose of such items in its sole discretion; h. The right of subadjacent and lateral support on the landlord's property to whatever is necessary for the operation and maintenance of the solar power generating facility, including, without limitation, guy wires and support; and, i. The right to undertake any such purposes or other activities, whether accomplished by tenant or third party authorized by tenant, that tenant determines are necessary, useful or appropriate to accomplish any of the purposes or uses set forth in this agreement or that are compatible with such purposes or uses. j. The right to invite members of the public to the site for educational or promotional purposes with the tenant being responsible for any injuries to third parties or property damage sustained through these educational or promotional events with the tenant indemnifying and holding harmless the landlord from any claims arising out of these events. 6. Maintenance and Security. a. Maintenance. The solar power generating facility shall be maintained by tenant at its own expense. Tenant shall maintain, protect and preserve the solar power generating facility in a safe, neat and attractive condition and in good and serviceable repair. b. Snow removal. Snow removal on the leased premises, if needed, shall be the responsibility of tenant as necessitated by tenant's operation of the solar power generating facility. Any snow removal activities will minimize any damage to the existing ground surface or the site. Tenant will promptly repair any damage caused by it snow removal activities. c.Security. Security for the solar power generating facility shall be the responsibility of the tenant. Nothing in this agreement shall be construed to impose security obligations upon landlord. Landlord shall not be liable for any loss or damages suffered by tenant or third parties due to tenants and such third parties use, occupancy, or activities on the leased premises. 7. Assignment. Neither party to this agreement shall assign its interest in this agreement without the express written consent of the other party. 8. Notices. All notices, demands, requests, consents, approvals and other instruments required open permitted to be given pursuant to this agreement shall be in writing, and signed by the notifying party and sent by registered or certified mail, postage prepaid, return receipt requested, and addressed as follows: To landlord: City Administrator City of Hutchinson 111 Hassan St. SE. Hutchinson, MN 55350 To tenant: General Manager Hutchinson Utilities Commission 225 Michigan St. SE. Hutchinson, MN 55350 9. Insurance. At all times during the term of this lease, tenant shall maintain in full force a commercial and general insurance policy covering tenant's operations, activities, and liabilities on the leased premises, having singly or in combination limits of not less than $2 million in the aggregate, or the maximum tort exposure set for municipalities under Minnesota law, whichever is greater. Such policy shall name the landlord as an additional insured under such policy as the landlord's interest may appear. Upon landlord's request, the tenant shall give landlord a certificate of insurance evidencing that the insurance required under this agreement is in force. 10. Operating expenses. Tenant shall fully and properly pay for all water, gas, heat, light, power, telephone service, and other public utilities furnished to the leased premises and used by tenant throughout the term hereof, and all of the costs and expenses of every kind whatsoever in connection with the use, operation, and maintenance of the leased premises and all activities conducted thereon. 11. Maintenance by Landlord. Landlord shall maintain its property adjacent to the leased premises in good condition and state of repair to avoid interference with tenant's use of the leased premises and the easements. Landlord shall not construct or permit to be constructed structures or plant or permit to be planted trees adjacent to the leased premises that will impede solar access to the solar power generating facility. 12. Liabilities to Third Parties: Risk of Loss. Tenant shall hold landlord harmless from any liability (including reimbursement of landlord's reasonable legal fees and all costs) for death or bodily injury to third parties, or physical damage to the property of third parties, to the extent caused by the fault of tenant or any of tenant's agents, servants, employees, or licensees, and landlord shall hold tenant harmless from any liability (including reimbursement of tenants reasonable legal fees and all costs) for death or bodily injury to third parties, or physical damage to the property of third parties, to the extent caused by the fault of landlord or any of landlord's agents, servants, employees, or licensees. Notwithstanding any provisions herein to the contrary, it is understood and agreed that all property kept, installed, stored, or maintained in or upon the leased premises by tenant shall be so installed, kept, stored, or maintained at the risk of the tenant. Landlord shall not be responsible for any loss or damage to equipment owned by tenant that might result from tornadoes, lightning, windstorm's or other acts of God. The covenants of this paragraph shall survive and be enforceable and shall continue in full force and effect for the benefit of the parties and their respective subsequent transferees, successors, and assigns, and shall survive the termination of this lease whether by expiration or otherwise. 13. Default and Termination for Default. Landlord or Tenant shall be in default of this Lease if either party breaches any material provision hereof and said breach is not cured by the breaching party within sixty (60) days of receipt of notice of said breach from the nonbreaching party, or if such cure cannot reasonably be had within said sixty (60) day period, then if cure of such breach is not commenced within thirty (30) days of receipt of such notice and not thereafter completed using diligent efforts. Upon the breaching party's failure to cure its breach within such time, as applicable, the non -breaching party shall have the right to terminate this Lease for default, and to pursue such remedies as may be available in law or equity. 14. Binding on Successors. The covenants and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of the parties hereto. 15. Access to Premises. In addition to the Easement granted in Section 5, Tenant and its engineers, officers, employees, agents, and contractors shall have full access to the Leased Premises during the term. 16. Change in Generation Apparatus. The parties recognize that because of evolving technologies or regulatory mandates, the means of generating electricity on the site must be changeable in order to meet governmental mandates and to remain as economically feasible as possible. In recognition of this, tenant shall be permitted to alter the means of generating the electricity on the site in order to meet the aforementioned mandates and economic considerations. Any alteration in the means of generating electricity must meet all state, federal, and local regulations and must be a "green" method of generating electricity. Regardless of the change in the method of electrical generation, all other portions of this lease agreement shall apply throughout the life of the agreement. 17. Governing Law. The parties intend that this Agreement and the relationship of the parties shall be governed by the laws of the State or Commonwealth in which the Leased Premises are located. 18. Entire Agreement. All of the representations and obligations of the parties are contained herein, and no modification, waiver, or amendment of this Agreement or of any of its conditions or provisions shall be binding upon a party unless in writing signed by that party or a duly authorized agent of that party empowered by a written authority signed by that party. The waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of that provision by the same party, or of any other provision or condition of the Agreement. 19. Mechanic's Liens. Tenant will not cause any mechanic's or materialman's lien to be placed on the Leased Premises, and Tenant agrees to indemnify, defend, and hold harmless Landlord from any such lien from a party claiming by, through, or under Tenant; provided that Tenant shall be permitted to remove any such lien by bond or other suitable instrument. City of Hutchinson Mayor Date: City Administrator Date: Hutchinson Utilities Commission President Date: / Secretary Date: Art" 17 AOM �tL%;Vlll I 0 c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Renewing of Waste Hauling Contract with West Central Sanitation Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in October of 2015, the City entered into a Waste Hauling Services Agreement with West Central Services after an RFP and interview process. This was our first contract with West Central after spending the previous 15+ years with Waste Management. The initial agreement with West Central was for five years and technically expired in October of 2020. West Central was been working for the City without a contract for the last 6 months as we were negotiating the final details of a new agreement. Attached for your consideration is a contract that will renew/extend the City's current agreement with West Central. I've noted the changes to the contract from the original one either in red or with a strike -through. A couple of the more notable changes to note with the new proposed contract: -- Contract will be effective May 1, 2021 -- Contract is for 7 years -- No rate increase is included within the contract extension outside of the semi-annual CPI rate adjustment -- Adjustments were made to the Spring/Fall Cleanup in which West Central will now be able to use our landfill at the City's cost Staff recommends approval of the contract. BOARD ACTION REQUESTED: Approve/Deny Renewing Waste Hauling Contract with West Central Sanitation Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON AGREEMENT FOR RESIDENTIAL COLLECTION AND HAULING SERVICES: REFUSE, GARBAGE, MIXED MUNICIPAL SOLID WASTE, AND SOURCE SEPARATED ORGANIC MATERIALS THIS AGREEMENT is effective as of Oeteberl; 2, c May 1, 2021, by and between the CITY OF HUTCHINSON, MINNESOTA, a Minnesota municipal corporation ("City"), I I I Hassan Street Southeast, Hutchinson, Minnesota 55350, and WEST CENTRAL SANITATION, INC., 4089 Abbot Drive, PO Box 796, Willmar, Minnesota 56201 ("Contractor"). RECITALS WHEREAS, the City has authority to provide collection and hauling services under Minn. Stat. §412.221, Minn. Stat. §115A.94; and city Code 117.15 through 117.23; and WHEREAS, the City has organized collection pursuant to Minn. Stat. §115A.94; and WHEREAS, the City requires collection and hauling services for refuse, garbage, and mixed municipal solid waste (together hereinafter "MMSW") and source separated organic materials (hereinafter "SSOM") from residences and certain other establishments in the City; and WHEREAS, the Contractor is a licensed hauler in the City engaged in the business of collecting and hauling such wastes and materials; and WHEREAS, the City desires to hire extend the services of the Contractor; and WHEREAS, the City operates a composting facility for source separated organic materials; and WHEREAS, Contractor desires to provide collection and hauling services to the City and to deliver collected waste and materials to the destinations identified herein; and NOW, THEREFORE, it is agreed by and between the parties: TERM A. Term The term of this Agreement shall be a period of five (5) seven (7) years commencing Oeteberl; 2, c May 1, 2021. The City and the Contractor may mutually agree to extend the term of this Agreement for an additional three (3) years beyond the original term. Additional terms may be considered if mutually agreed upon by both parties. II. DEFINITIONS For purposes of this Agreement, the following terms shall have the following meanings: A. "Electronic Waste" means televisions, monitors, circuit boards, computers, DVD and VCR players, fax machines, printers, keyboards, control devices and similar items. B. "Facility" means the Hutchinson Compost Facility known as "Creekside Soils or Creekside" owned and operated by the City. C. "Hard Good" means non -electronic consumer items customarily found in and about a residential dwelling including, without limitation, furniture, mattress sets, carpet rolls, bicycles, exercise equipment, weed whackers and other yard equipment, garden tillers, cultivators and other garden equipment, and similar consumer items. D. "Hazardous Waste" means waste defined as hazardous by State or Federal law, rules and regulations, including but not limited to 42 U.S.C. 6903(5), and regulations interpreting such act, or in Minnesota Statutes § 116.06, Subd. 13, and regulations interpreting such statute, but not including waste excluded from regulation by Minnesota Rules 7045.0120A, as any of the foregoing may be amended from time to time. E. "Mixed Municipal Solid Waste ("MMSW") has the meaning provided in Minn. Stat. §115A.03, Subd. 21, except for purposes of this Agreement MMSW shall not include source separated organic materials. F. "Source Separated Organic Material ("SSOM") means all kinds of food waste; yard and garden waste including leaves, grass clippings, shrub trimmings and small branches; paper goods like tissues, paper napkins, paper towels, brown paper bags, paper plates & cups, junk mail, colored/glossy newspaper inserts; boxes, like thin cardboard grocery boxes/paperboard, pizza boxes, egg carts, shoe boxes, milk & juice cartons, cereal & cracker boxes; and other items as determined by the City like vacuum cleaner bags, waxed cardboard boxes and cat litter. G. "Organic Cart" means a container with wheels and a green lid more fully described in Section IIL13.2, the contents which shall be limited to SSOM as defined herein. H. "Residential Customers" means a single-family home with a container that does not exceed a weekly volume of one 95-gallon container for MMSW, and two 95-gallon carts for SSOM. Duplexes, apartments and churches are not considered residential customers. I_ "Title" means ownership, including the right and authority to direct the location and method of disposal. Title to MMSW, SSOM, and any items collected pursuant to this agreement passes to the City at the time the customer places such item in its appropriate location for collection by the Contractor. The City's title continues until relinquished by the City upon final disposal. J. "Unacceptable Waste" means waste delivered in quantities to the Facility which, as determined by the Facility, may pose a threat to health or safety, or to the environment, or may cause damage to, or materially adversely affect, the operation of the Facility, including but not limited to: Hazardous Waste, chemicals and radioactive materials; incinerator ash; foundry sand; explosives; hospital, pathological and biological waste; oil sludges, asbestos in identifiable quantities; cesspool or other human waste other than that contained in disposable diapers; sewage and other highly diluted, water -carried materials or substances and those in gaseous forms; human or animal remains; street sweepings; ash; mining waste; sludges; construction waste and demolition debris; sod, soil or rocks; tires; hazardous refuse of any kind, such as cleaning fluids, crank case oils, cutting oils, paints, acids, caustics, poisons, drugs, large hard goods or white goods, and such other materials prohibited from being deposited in a landfill under federal/state/county law or regulations or as may be specified in writing from time to time by the Facility. K. "White Good" means domestic appliances including but not limited to refrigerators, clothes dryers, computers, television sets, vacuum cleaners, hot water heaters, trash compactors, microwave ovens, air conditioners, dehumidifiers and similar domestic item. III. CONTRACTOR SERVICES A. MMSW and SSOM 1. Contractor shall provide collection service to all residential customers -as deaeF ffl:..ed by the City that does 4;st o ea A ool�l... ,.ltufle of one 95 galle soptaipor for MMSAI, and , e oc gallon ,.aA f c S(DA4 If the customer generates MMSW, the customer shall be provided a choice of a 35, 65 or 95- gallon container. For SSOM, the customer will have a 95-gallon cart. The customer will also have a choice of valet pickup service (adjacent to garage/house) at an extra charge for MMSW and/or SSOM cart service. The City will also have an extra bag charge for MMSW or SSOM, using designated bags and/or stickers. 2. Customers with a 35-gallon MMSW cart, and with a minimal amount of MMSW, may elect to have every other week service and are responsible to contact the City's Utility Billing Department. The City will then notify the Contractor which residences require every other week service. 3. The Contractor shall transport all MMSW to the landfill or other licensed disposal facility designated by the City. The City will reimburse the Contractor for the actual cost of transporting the MMSW to the City's designated landfill or other licensed disposal facility, specifically including truck fuel, labor, and employee benefits. The City will also pay for all landfill or other disposal charges, except as specified below, and further reserves its full right of choice and discretion in selecting and negotiating with such landfill or other licenses disposal facility. 4. All SSOM collected by the Contractor within the city limits shall be placed at Creekside at a location specified by the Facility personnel. The SSOM will then be managed by the Facility. 5. The Contractor will be allowed to may bring yard waste materials from outside the city limits to Creekside F of eharge for a fee of $12/ton if the yard waste is clean yard waste (grass clippings & leaves or co -mingled grass/leaves and green wood waste materials). There will be a tipping ehffge of $104eft for eemin#ed yard waste and green wood waste fflaterials. Plastic bags or garbage will ar-L—not be accepted; paper and biodegradable bags are acceptable. 6. All cart containers are to be furnished and maintained in good condition by the Contractor. Containers not in good condition shall be replaced by the Contractor. Actual service needs are to be determined by volume accumulations as judged by the City, upon review with the Contractor. 7. Collection shall not include Hazardous Waste or other Unacceptable Waste. S. MMSW and SSOM containers shall be placed at the curb on collection day by customers, in a location easily accessible to motor vehicle pick-up. Containers must be placed properly for pick-up prior to 6:00 a.m. Pick-up shall not begin prior to 6:00 a.m. and shall not continue past 7:00 p.m. on the day of collection. 9. Valet service will be provided by the Contractor at the direction of the City for all customers choosing this option. 10. The Contractor shall not deliver any Unacceptable Waste to the Facility, nor shall the Contractor mix any Unacceptable Waste with MMSW or SSOM collected under this Agreement. If the Contractor is uncertain whether certain waste is unacceptable, Contractor may request a determination from the Facility by submitting a request to the Facility. 11. If the Facility has a reasonable basis to believe that MMSW or SSOM delivered by the Contractor contains Hazardous Waste or other Unacceptable Waste, the Facility may require the Contractor, at Contractor's expense, to recover and properly manage or dispose of waste deposited upon the tipping for which contains hazardous waste or unacceptable waste. In the event MMSW or SSOM are rejected by the Facility, and the Contractor disagrees with a decision by the Facility, the Contractor shall have the right to present information to the City in support of its claim. The claim will then be resolved by the City Council. B. Carts 1. The Contractor will be responsible to provide and maintain two (2) plastic containers (with wheels) for each customer, at no charge to the City or customers. The customer can choose a 35, 65 or 95 gallon refuse cart. Cart specifications are as provided in the Contractor's Request for Proposal. The refuse cart shall have a black lid. 2. The second cart will be designated for SSOM and shall have a lid that is green in color. Residents are allowed to have an extra SSOM cart for use at a fee agreed upon by the City and the Contractor. 3. The MMSW cart and the SSOM cart may be another color if approved in advance by the City. The MMSW cart and the SSOM cart shall be new. Both carts shall be injection molded. 4. The City Utility Department shall notify the Contractor of any new accounts. MMSW containers and SSOM carts shall be dropped off by the Contractor to the new account on or before the pickup date next following notification. Such notification must be in writing by any medium. 5. Each container (MMSW and SSOW shall have the name of the Contractor, and a toll free number to assist in handling customer concerns. Contractor shall provide a 24-hour answering service for the toll -free number. Also, a serial number is required. In the event the City desires to have a sticker on the SSOM carts, the City will pay for such sticker and the Contractor shall install the sticker one time at no additional cost. 6. Lost, damaged, or missing carts shall be the responsibility of the customer. One replacement cart, in such cases, shall be provided to the customer at no charge, for MMSW and SSOM, respectively. 7. SSOM carts, or cart lids, that are received at the Facility due to breakage at the time of curb -side collection will be set aside by Facility staff and are to be picked up and disposed of by the Contractor on a routine basis. 8. The Contractor shall have the right to collect payment directly from the customer for any containers beyond the aforementioned replacements described above; however, collection of the additional payment shall not be the responsibility of the City. 9. The etistemer shall have an initial window of epper4m4y to ehatige the size of their MAISW upAil Ati+Hai-f 1, 2016. Thereafter, the size of the eaA fflay only be aeeerding to the deadline established by the City Finanee Direetor. Changes afte be eelleeted by the c4y and paid to the cei4faeteT- siv@.. C. City Cart Pickup on City Property and Public Rights -of -Way The contractor shall provide carts utilizing the automated side arm for the City Property and Public Rights -of -Way locations indicated in Appendix B according to the size and type of cart, frequency of pick-up per month, type of service — valet services or curb service, and number of carts per location (MMSW and/or organics) indicated on the map. In the event the City desires pickups per week or additional locations not on the map, the City reserves the right to add or delete locations at the per unit price in Appendix C. D. Scheduling of Collection — MMSW and SSOM 1. The Contractor shall provide collection for MMSW, SSOM and recyclables according to the Collection Schedule in Appendix A. Any change in the collection schedule requires the agreement of the City and the Contractor. 2. Subsequent changes to the Collection Schedule require a 90-day advance notice and approval by the City Council prior to implementing a change. If approved, the Contractor shall provide written notice to customers of the change at least 15 days in advance of implementation. 3. Scheduling changes due to a holiday are permitted if notice is printed in the Hutchinson Leader and Shopper Newspaper (using no less than 12 point type) at the expense of the Contractor. Notices shall also be posted on the City's website. 4. In the event the Contractor shall fail to make a collection at any particular residence as required by this Agreement, the Contractor shall do so within 24 hours after notification from the City of the address where such pickup was not made. The Contractor shall keep a record of all missed collections and provide it to the City at the end of each month. 5. Collections shall only be made as have been authorized by this Agreement or the City, and the Contractor shall not be entitled to payment for any collections made and not authorized by the City or this Agreement. 6. In the event that the City wishes to discontinue service at a collection stop, the City shall notify the Contractor to that effect at least one week prior to the date of discontinuance of such service. 7. The Contractor shall tip SSOM materials at Creekside between the hours of 8:OOam and 4:OOpm Monday through Friday. In the event a holiday delays collection routes by one day and a Saturday collection route is necessary, the Contractor shall contact the Facility no later than 4:OOpm on the Thursday prior to the Saturday route to pre -schedule or coordinate a plan to tip on Saturday with Facility staff for that specific day. Failure to contact Facility staff by 4:OOpm on Thursday may result in a denial of the Saturday tipping. The Contractor shall do this for each Saturday route throughout the year." E. Hard Goods, Electronic Waste and White Goods 1. The City's customers shall be provided by the Contractor the opportunity to have two (2) of either a Hard Good, Electronic Waste, or White Good picked up at curbside once in spring and once in fall (spring/fall clean ups), at dates determined by the City. 2. All other times of the year, City customers may contact any hauler licensed by the City, including the Contractor, to remove Yard Waste, Hard Goods, Electronic Waste, and White Goods at the customer's own cost, or the customer may haul such items themselves at their own cost. Thy, c(4444AWtor is responsible ta pay for any speeial Oharges at the I R44dfill or other - Goods The City will cover the costs of MSW at the City's landfill for accepted items during the spring/fall clean ups, and the contractor will be responsible for any other costs associated with disposal of or the recycling of White Goods, Electronic Waste, bicycles, exercise equipment, weed whackers and other yard equipment, garden tillers, cultivators and other garden equipment, and similar consumer items. F. Equipment 1. Should any MMSW, SSOM, recyclables or other waste or materials collected by the Contractor be dumped or spilled during collection or transportation, such waste or materials shall be immediately cleaned up by Contractor. A broom and shovel in good usable condition should be placed and maintained on each vehicle for this purpose. Carts and vehicles shall be kept clean, sanitary, usable, and as free from all offensive odors as possible and shall not be allowed to stand in any street, alley, or other place longer than is reasonably necessary. 2. The Contractor shall keep all equipment used in the performance of the work in good operating condition and in a clean, sanitary condition, shall thoroughly disinfect each vehicle at least once a week unless the same has not been used since the last disinfection thereof, and shall thoroughly inspect each vehicle as necessary. They shall be equipped to meet all federal, state, and municipal regulations concerning vehicles used on public roads and maintained to meet these standards. Equipment is subject to periodic inspection by the City. 3. The Contractor shall advise the City in writing of any withdrawal of a part of such equipment or of any change therein within one week of the time of making such change. 4. Each collection vehicle shall have flashing light warning system, fire extinguisher, and proper back-up alarms as approved by the City. 5. No truck which is engaged in the collection of any materials pursuant to this contract, or which contains any such materials, shall collect, load or contain any non -contract materials. 6. The Contractor shall provide a description of the trucks to be used within the City, as shown in Appendix D of this agreement, and shall be used during the performance of this contract. The trucks to be used shall be labeled RESIDENTIAL PICKUP ONLY —HUTCHINSON or in a similar -like manner mutually agreed upon by both the Contractor and the City according to the size, location and color specifications approved by the City. G. Personnel Requirements 1. There shall be no limitation on the size of the Contractor's collection crew so long as they are sufficient to fulfill the requirements of this Agreement. The Superintendent shall respond to citizen or City complaints and keep a log noting the name of the complainant, address about which the complaint is lodged, manner in which the complaint was resolved and any other information deemed useful. The log shall be available for review by the City at reasonable times. 2. The Contractor's employees shall handle all containers with reasonable care to avoid damage, replace the containers in an upright position on the boulevard adjoining the curb, and properly dispose of any contents which may be spilled. The Contractor's employees will also report to the Contractor any violations of regulations as they observe in the performance of their work. 3. Employees shall be sober at all times in the performance of their duties, be of a presentable appearance, perform work in a neat and quiet manner, and at all times be courteous to the public. H. Supervision 1. A full-time superintendent of collections shall be employed by the Contractor and shall be the representative of the Contractor under this Agreement. The superintendent shall be on the job during normal hours of collection operations and shall maintain proper schedules for collection. The superintendent shall have supervisory duties which shall include servicing of complaints. 2. All services to be performed for the City by the Contractor pursuant to the terms of this Agreement shall be supervised by such employee, agent, or officer of the City as the City Administrator shall designate. The designated inspector may have access to all of the Contractor's records and equipment at reasonable times. I. Safety The Contractor shall provide and maintain all sanitary and safety accommodations for the use and protection of its employees as may be necessary to provide for their health and welfare and comply with federal, state, and local codes and regulations as well as those of other bodies and tribunals having jurisdiction. J. Cooperation with Law Enforcement Contractor shall make every effort to cooperate with reasonable requests of state and local law enforcement officials seeking assistance from Contractor regarding investigations of criminal activities. IV. PAYMENT AND ADJUSTMENTS TO RATES Payments to the Contractor shall be made according to the following: A. Rates: The rate to the Contractor for weekly MMSW & SSOM services shall be a total of $9-7-2$10.44 for both cartsper location per month. This rate will be in effect - - commented [M.n]: This number will likely change with the whether or not MMSW and/or SSOM carts are present and includes any extra bags as April le o CPI adjustment. That amount is generally available in the middle of April. This will be adjusted before the contract is identified by the City by a sticker and/or designated bag. The Contractor will also be signed. reimbursed an additional rate of $5.00 per service, per cart, per month for valet service. B. Rates for City Property: Pursuit to Section IILC of this agreement, carts on city property/right-of-way will be reimbursed to the Contractor per the rates established in Appendix C. C. Rate Adjustments: Adjustments shall be allowed on a semi-annual basis effective April 1, 2016 October 1, 2021. Thereafter, the rates shall be adjusted each April 1 and October I gip. The rate adjustments shall be measured according to the most current CPI rate as quoted by the Bureau of Labor Statistics for the Midwest Region with a cap of 2%; for the purpose of compensating, in part, the Contractor for any increase in operating costs (*i.e. labor, fuel, etc.). A negative CPI will result in no rate adjustments. D. Customer Counts: For Oetobo November, and Poeoff.bor of 2015, the City ..hall FopoA to the Cantrnetor the, aetil-R] eu-4offner esffluAs for proper billing to the City. Following T,....,a fy , 2016, customer counts will be adjusted semi-annually at the same time as the rate adjustments and shall be reported to the Contractor for proper billing to the City. E. Except as provided above, the City shall be responsible for billing customers for all services provided by the Contractor, as well as all computations necessary in individual rates for the inclusion of landfill charges paid by the City, plus a monthly City administrative charge as determined by the City Council, or other charges it deems necessary. F. The applicable state sales taxes and surcharges shall be billed by City to customers and paid to the state by City. G. The Contractor shall keep complete and accurate records in accordance with generally accepted accounting practices. Accounting of all MMSW, SSOM, Yard Waste, Hard Goods, Electronic Waste, and White Goods collected, including but not limited to tip receipts/reports, shall be provided on a monthly basis to the City's Finance Director in such detail as deemed necessary by the City. H. The Contractor shall promptly pay all persons doing work or furnishing skills, tools, machinery, or materials or insurance premiums or equipment or supplies and all just claims for such work, material, equipment, insurance, and supplies in and above the performance of this Agreement. ANNUAL BOARD OF REVIEW/COMPLAINTS The City, at its option, may advertise and the Contractor shall attend meetings to review public comments, complaints, suggestions, etc. regarding services under this Agreement. The meetings shall be at a date and time established by the City Council. A record of all complaints and action taken thereon shall be kept by the Contractor and reported monthly to the City. All complaints shall be answered by the Contractor courteously and promptly. VI. LEGAL COMPLIANCE A. The Contractor shall comply with ordinances of the City and the laws and regulations of the State of Minnesota and its agencies relating to solid waste management in effect during the term of the Agreement. B. The Contractor shall report all violations of ordinances pertaining to solid waste management for enforcement purposes, including all unsanitary and filthy conditions, to the City Code Enforcement Office. VII. LICENSING The Contractor must be licensed under City ordinance on an annual basis and comply with all provisions of said ordinance (see Appendix E). The Contractor must also obtain licensing through the County Solid Waste Department and is subject to all regulations of the County. VIIL ASSIGNMENT AND TRANSFER A. The Contractor shall not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or any part thereof or any interest therein, without the prior written approval of the City, which approval will not be unreasonably withheld. If such a request is made, the City Council reserves the right and full discretion to accept the assignment/transfer, or terminate the Agreement at a timetable chosen by the City Council to facilitate an orderly change to another potential contractor. B. The City shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval that: Any proposed transferee shall have the qualifications and financial responsibility, as reasonably determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by Contractor; and 10 2. The transfer does not create and antitrust situation in the local solid waste hauling industry that is contrary to the public interest of the residents of the City; and Any proposed transferee, by instrument in writing satisfactory to the City for itself and their successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of service under this Agreement and agreed to be subject to all the conditions and restrictions to which service is subject. It is the intent of this paragraph that together with other provisions of this Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies or controls provided in or resulting from this Agreement; and 4. There shall be submitted to the City for review all instruments and other legal documents involved in effecting such transfer, and if approved by the City, its approval shall be indicated to the Contractor in writing. The proposed transferee shall submit to the City for review all bonds, insurance policies, and any and all other documents required by this Agreement, and if approved by the City, its approval shall be indicated to the proposed transferee in writing. IX. PERFORMANCE BOND The Contractor shall execute and deliver to the City a performance bond in the sum of $100,000 conditioned upon the faithful performance of the Agreement. In addition, to further protect the City in the event the Contractor fails to properly perform under the Agreement, the Contractor shall pledge to the City all receivables collected by the City. This Agreement shall not become effective until such bond has been delivered to the City in form acceptable to the City Attorney and has been accepted by the City. Such bond shall be filed with the City Administrator within ten (10) days from the execution of this Agreement and shall remain in effect until the expiration of this Agreement. In the event the Contractor fails to properly perform under this Agreement, the City may take whatever action is necessary to secure substitute collection and hauling services for the remainder of the Agreement term, and may use the proceeds of the bond to pay for the difference between the rates provided by the Agreement and the actual cost of such substitute service. X. HOLD HARMLESS The Contractor agrees to indemnify and hold harmless the City, its agents, officers, and employees form any and all claims, causes of action, liabilities, losses, damages, costs, expenses including, but not limited to reasonable attorneys' fees, suits, demands, and judgments of any nature, specifically 11 including, and claims under state or federal superfund liability laws, and/or because of bodily injury to, or death or, any person or persons and/or because of damages to property of the others, including loss of use from any cause whatsoever, which may be asserted against the City on account of any act or omission, including negligence, of the Contractor, or the Contractor's employees or agents in connection with the Contractor's performance of this Agreement. The Contractor agrees to defend any action brought against the City on any such matters, and to pay and satisfy any judgment entered thereon together with all costs and expenses incurred in connection therewith. The City shall in no way be liable for any claims or charges incurred by the Contractor in the performance of this Agreement. XL INSURANCE A. During the entire period of this Agreement, the Contractor shall carry Public Liability Insurance including coverage of all motor vehicles of $1,500,000.00 combined single limit (bodily injury and property damage); and $1,500,000.00 in excess liability; and the City of Hutchinson shall be a party insured in said policies. Additionally, the Contractor agrees to pay all necessary Federal Social Security taxes and all State or Federal taxes required by law and at its own expense will cover all of their employees with workers compensation insurance as required by law, and shall deliver such policies to the City of Hutchinson. The Contractor agrees to comply with all laws of the State of Minnesota and the United States regarding the employment of persons. C. All policies evidencing insurance required by this paragraph shall name the City and the Contractor as named insureds, and shall insure the City and the Contractor by reasons of any act or omission, including negligence, of the Contractor or of the Contractor's employees or agents in connection with the performance of this Agreement, including claims arising out of the use of or operation of any vehicles used by the Contractor or the Contractor's employees or agents in performing this Agreement. Such policies shall be in form and content satisfactory to the City Attorney and shall be filed with the City Administrator. A Certificate showing that the Contractor has in effect the aforesaid insurance covering both the Contractor and the City shall be filed with the City Administrator within ten (10) days from the execution of the Agreement, and yearly thereafter, at least thirty (30) days prior to the date of the expiration of said policies of insurance for each year of the Agreement. All of the foregoing policies shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and authorized to assume the risks covered thereby. Memorandum policies and receipts for the payment of premiums shall be filed with the City showing payment of premiums for at least one year in advance and on each renewal date provided therein. XIL GUARANTY OF NONDISCRIMINATION The Contractor agrees that during the term of this Agreement, the Contractor will not, within the State of Minnesota, discriminate against any employee or applicant for 12 employment because of race, color, creed, national origin or ancestry, or sex, and will include a similar provision in all subcontracts entered into for the performance thereof The Agreement may be called or terminated by the City, and all money due or to become due may be forfeited for a second or subsequent violation of the terms or conditions of this paragraph. This paragraph is inserted in the Agreement to comply with the provisions of Minnesota Statutes, §181.59. XIII. DEFAULT AND TERMINATION A. If the City determines that the Contractor is in violation of the terms of this Agreement, a written notice of default will be sent to the Contractor allowing thirty (30) days to correct the condition of default. Failure by the Contractor to correct the default by the end of the 30-day period shall provide the City the right to terminate this Agreement by written notice to the Contractor. B. Upon failure of the Contractor to fulfill any of the provisions of this Agreement, the City Administrator shall be authorized to hire such personnel, equipment, or assign City Employees and equipment, as may be necessary to do such work and the cost of such expenses thereof may be charged an deducted from any monies due the Contractor, collected form the Contractor, or collected by recourse to the Contractor's bond, pursuant to Article IX, above. XIV. ENTIRE AGREEMENT This Agreement, with all of its Attachments incorporated herein by reference, is the entire agreement between the parties. No modification of this Agreement shall be valid or effective unless made in writing and signed by the parties hereto. XV. REMEDIES ARE CUMULATIVE. All remedies described in this Agreement may be exercised by the City in addition to and not in lieu of any other remedy provided in law or equity. IN WITNESS WHEREOF, the City of Hutchinson and West Central Sanitation have executed this Agreement the day and year written below. West Central Sanitation, Inc. City of Hutchinson Signed by: Signed by: Its: Its: Signed by: Signed by: Its: Its: 13 Dated: 14 Dated: c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Moving City Council Meetings from Virtual to Back In -Person Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 4/13/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: At the last council meeting, council members expressed a desire to consider moving back to in -person meetings. Staff was directed to put an action item on the April 13 council meeting for the city council to consider. As a quick background, the Council voted on April 14, 2020 to move into "virtual" council meetings for the "foreseeable future". The question has been raised a couple of times about going back to in -person meetings with no formal action being taken by the City Council. A simple majority vote is required to change the council meetings back to in -person. If that is the desire of the Council, I would request that you set the date of when that will occur (May 11 was proposed) and addressed the desire to continue to allow for virtual access for members within the motion or action. A couple of other items to note in regards to Executive Orders. First off, under current orders, masks are still required within the council chambers for elected officials, staff and the public and may be removed only when testifying and speaking within the council meeting proceedings. Secondly, it is still recommended that council members properly practice social distancing (6 feet). If the council meets in -person, staff will prepare the chambers accordingly and we are also working on putting up dividers in the council chambers at the council desk for additional protection. BOARD ACTION REQUESTED: Approve/Deny Moving City Council Meetings from Virtual to Back In -Person Effective for the May 11 City Council Meeting 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 1 ' 512" HUTCHINSON CITY COUNCIL i HUTCHINSON RequestforBoard 'Action �{s A dITYON PURPOSE: Resolution Calling Public Hearing on the Intention to Issue General Obligation Capital Agenda Item: Improvement Plan Bonds and the Proposal to Adopt a Capital Improvement Plan Department: 1 Finance ,� LICENSE SECTION Meeting_ Date: 1 411312021 Contact: Andy y Reid Application, Complete, NIA Agenda Item Type: Presenter:_ Reviewed by Staff ��� ,New Business Time Requested (Minutes): 2:] .License Contingency NIA Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA; ITEM: ' Issuing General Obligation Bonds to finance improvements provides municipalities with the lowest interest costs and favorable bond terms, including no reserve, 100% financing, and flexible amortization schedules. Staff, with the assistance of Ehlers & Associates, are proposing GO Capital Improvement Plan Bonds as permitted under Minnesota Statutes, section 475.521. The bonds are similar to the 429 GO Special Assessments Bonds we issue annually for t roadway improvements, but with a slightly different issuance process. An election is not required when issuing these bonds if all of the following qualifications are met: 1) Approval of the bond issuance by at least a 315ths vote of the council ' 2) The financing is part of an adopted, five-year capital improvement plan 3) A public hearing is held with at least 14 days published notice 4) Subject to a 30-day reverse referendum period where voters may submit a petition signed by at least 5% of the votes cast in the last general election, to place the measure on the ballot I Anticipated Schedule for the bond issuance: April 13 - Approve resolution calling for the CIP Bond Public Hearing on May 11 April 21 - Notice of the May 11 Public Hearing published in the Hutchinson Leader E May 11 - Public Hearing held June 10 - 30-day reverse referendum period expires - City may proceed with GO CIP Bond issuance l if no valid petition is received July 13 - Bond financing bid results presented to Council for formal award Late July/Early August - City receives bond proceeds s The plan is to bond for approximately 50% of our need in 2021 and the remainder in 2022. This will save the City some interest costs on the financing not needed until 2022. BOAWACTION REQUESTED: 4Approve Resolution #15296 calling for a public hearing on May 11 to discuss issuing GO Bonds to finance i the construction costs for the new Police Facility. js Fiscal Impact: Funding. Source: FTE Impact:' Budget Change:. No Included.in current budget: 1 No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source. NIA Remaining Cost: $0.001 FundingSource: s NIA 11-5 17 i EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA HELD: April 13, 2021 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hutchinson, Minnesota, was duly called and held at the City Center in the City of Hutchinson, Minnesota on Tuesday, the 13a' day of April, 2021 at 5:30 p.m. for the purpose, in part, of calling a public hearing on the intention to issue general obligation capital improvement plan bonds and the proposal to adopt a capital improvement plan therefor. The following members were present: And the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2021- 15296 RESOLUTION CALLING PUBLIC HEARING ON THE INTENTION TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN FOR 2021 THROUGH 2O25 UNDER MINNESOTA STATUTES, SECTION 475.521 A. WHEREAS, pursuant to Minnesota Statutes, Section 475.521 the City of Hutchinson, Minnesota (the "City") is authorized to issue bonds to finance capital expenditures under an approved capital improvement plan (the "Plan") without an election, provided that, among other things, prior to issuing the bonds the City adopts the Plan after a duly noticed public hearing .thereon; and B. WHEREAS, the City Council will hold a public hearing on its intention to issue general obligation capital improvement plan bonds (the "Bonds") and to adopt the Plan therefor pursuant thereto on May 11, 2021; and NOW, THEREFOR, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the City Council hereby calls for a public hearing on the Plan and its intent to issue the Bonds to finance capital expenditures under the Plan, to be held on the date and times set forth in Exhibit A attached hereto. The City Administrator, with the assistance of the City Finance Director, is authorized to prepare the Plan for City Council `consideration and is hereby directed to cause the notice of the public hearing to be published at least 14 but not more than 28 days before the hearing in the official newspaper of the City or a newspaper of general circulation in the City. ' 3 4 The motion for the adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: i and the following voted the same: Whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON 1, the undersigned, being duly qualified and Clerk of the City of Hutchinson, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is: a full, true and complete transcript of the minutes of a meeting of the City Council of said City, on April 13, 2021, duly called and held on the date therein indicated, insofar as such minutes relate to the City Council calling a public hearing on a proposal to adopt a capital improvement plan and issue general obligation capital improvement plan bonds. WITNESS my hand on this day of April, 2021. Matthew Jaunich - City Administrator I ♦i111-3.1 NOTICE OF PUBLIC HEARING CITY OF HUTCHINSON, MINNESOTA 2021-2025 CAPITAL IMPROVEMENT PLAN AND NOTICE OF INTENTION TO ISSUE CAPITAL IMPROVEMENT BONDS NOTICE IS HEREBY GIVEN that the City Council of, the City of Hutchinson, Minnesota (the "City") will meet on Tuesday, May 11, 2021, at or after 6:00 p.m., in the Council Chambers at the Hutchinson City Center, in part to hold a public hearing concerning (1) a proposal to adopt a capital improvement plan for 2021 through 2025 pursuant to Minnesota Statutes, Section 475.521 (the "Plan"); and (2) the intention to issue general obligation bonds (the "Bonds") in an amount not to exceed $16,000,000 to finance a portion of the capital improvements set forth in the PIan consisting of capital improvements related to the City's Police Facility project. In addition to the Bonds, a portion of the cost of the Police Facility project will be paid with other available funds of the City. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to 5% of the votes cast in the City in the last general election, is filed with the City Administrator within 30 days after the public hearing (i.e., by June 10, 2021.), the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election. A copy of the Plan is available for inspection in the City Administrator's Office, Hutchinson City Center, 111 Hassan Street SE, Hutchinson, Minnesota. Question or comments may be directed to the City Hall Phone at 320-587-5151. All interested persons may appear and be heard at the public hearing either orally or in writing, or may file written comments with the City Administrator before the hearing. Dated: April 13, 2021 BY ORDER OF THE CITY COUNCIL OF OF THE CITY OF HUTCHINSON, MINNESOTA 640953d2BU155-162 r:151 Public Arts Commission Minutes - February 10, 2021 Zoom, 5:30 Present: Morgan, Justin, Brandon, Steve, Jackie, Patrick, Kay and Sara. Guest- Andrew Nordin. 1. Approved Minutes a. Regular January 13tn b. Special Meeting February 4tn 2. Steve gave an update on Ridgewater College. The college has agreed to sponsor the pad at the college, similar to the arrangement with Citizens Bank. This includes paying the artist honorarium. Pad will likely be moved to a location more visible and accessible. 3. Steve gave an update on downtown blocks. The height will be reduced to 30" to accommodate any bricks or blocks that will be placed below to facilitate future moving. Waiting on a new quote, but cost should be less. 4. Selected pieces for the eleven city locations of the 2021-2022 Sculpture Stroll. However, the ShopKo pad will be left open so "Shark" can be placed where the "Biker" currently is displayed. Andrew selected a piece for Ridgewater. Steve will forward remaining choices to Citizens Bank with accompanying information. Once the bank selects a piece the artists will then be contacted to confirm their participation. Once confirmed those not selected will be contacted. Next Meeting: March 10th, 5:30 Library Board Meeting February 22, 2021 The meeting was held over ZOOM, due to COVID 19 restrictions. Members Present: Carolyn Ulrich (President), Mary Christensen, Margaret Hoffman, Kay Hultgren, Dianne Wanzek, and Katy Hiltner, Ex-officio. Excused: Jared Golde and Julie Lofdahl Minutes from the January 25, 2020, meeting were reviewed and approved after a correction: Keep Moving was Julie Lofdahl's "Buzz" title, not Margaret's. Old Business: 1. One Book, One Community Author Event: This author talk/discussion with William Kent Krueger will be held via ZOOM, on Thursday, March 4, at 7pm. Register on the library's website to receive link for ZOOM. It will also be shown simultaneously on HCVN. 2. Adult Winter Reading Program: Ends on March 5, with raffle prize drawing the next week. New Business: 1. Library Board Contact Sheet: Katy will send out the revised list. 2. Updates to Library Express Browsing Services: Doors have been unlocked with a tally kept of visitors in order to keep numbers down for safe capacity. Staff is comfortable with handling check-out, so self-service check-out has been eliminated. Book -drop materials are quarantined for 24-36 hours. There have been some glitches with people found sitting in restricted areas or over -staying their time. More wipe -able furniture is also a possibility for future. Changes are on the website, but not out on FB or in the paper, as yet. 3. State Annual Report: Katy is working on it. 4. Friends of Library's 2020 Winter Reading Program Movie Tickets: The State Theater will still honor these tickets March 19-April 30, 2021, if recipients have them. Board Members extended their appreciation for library staff's attitude towards making the changes needed to provide library services to the community during the past year. 5. Library Buzz: Dianne: What are the Odds? (NF), Mike Lindell, Making Sense of the Bible (NF), Adam Hamilton. Margaret: Books by Peter Robinson (British crime/mystery novels) Katy: West End Girls (F), Jenny Colgan Kay: Nomadland (NF), Jessica Bruder (audiobook) Caroline: Books by Peter Robinson January Donations and Grants: Friends of Library Reimbursements $2509.68 (DVDs and audio books in 2020) American Legion Aux. Book Memorials 40.00 Total: $2549.68 (Doris Nelson and Carol Axt) Next Meeting: Monday, March 22, 2021, @ 4:30 pm, via ZOOM Minutes submitted by Kay Hultgren, Secretary MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, February 24, 2021 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Monty Morrow; Commissioner Robert Wendorff; GM Jeremy Carter; Attorney Marc Sebora Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Martinez, second by Commissioner Morrow to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements GM Carter presented the Financial Statements. Year End outstanding balances of delinquent accounts past 30 days are being monitored. Legislative bodies have also been monitoring these amounts as the pandemic continues. GM Carter noted that depreciation is up due to beginning to depreciate the new engines. HUC will be over budget in this category all year; at first HUC was budgeting for a half year of depreciation but it was decided during the audit to capitalize the engines at the end of 2020. Overall fairly consistent in both Electric and Natural Gas divisions Motion by Commissioner Hanson, second by Commissioner Wendorff to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. 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- Absent c. Human Resources - Brenda Ewing — Absent d. Legal — Marc Sebora — Recapped conversations that have been held in the past on the General Managers salary and the effect that the MN Governor's salary cap has on the GMs ability to receive increases from the Commission. Currently there is a Bill in the Legislature that has made it through a couple of committees that are proposing to do away of the governor's salary cap all together. Most of the weight is being pulled by MMUA along with the City of Rochester testifying on the effects that the governor's salary cap has had on the ability to retain employees. Mr. Sebora looked to the Commission for any feedback or expression of opinion. Conversations were held on if there are other industries besides MMUA that are involved and voicing support for this bill. Mr. Sebora reviewed the process of how bills are processed and the time frame. After Discussion, the board asked Mr. Sebora to contact local representatives to support the bill being proposed. Mr. Sebora will send letters and contact MMUA to keep HUC in the loop and forthcoming conversations. e. General Manager — Jeremy Carter i. Legislative Rally Update ii. Federal Washington Lobby efforts coming up March 1-3 iii. Natural Gas Market Prices 6. Policies a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Review 2020 Annual Distributed Generation GM Carter provided the 2020 Annual Distributed Generation Resources Annual Report information. The report tracks the power generated from the solar systems that is delivered to the customer, what is sold back to HUC, and what is the net charge/credit for the customer. Every year HUC is required by state law to present this report to HUC's governing board. b. Approve Requisition #8676 — Electric Distribution Coordination Study GM Carter presented Requisition #8676 — Electric Distribution Coordination Study. The next few items relate to each other. The last time an in-depth distribution study was performed was in 2004 along with having a high-level study 10 years ago as HUC prepared for an addition of Unit #5 to evaluate how the new generation would affect the distribution system. Now that HUC has updated some of the infrastructure; changed out transformers and equipment in substations, revising Plant #2 substation with a different configuration and the 2 load has changed in the last 10-15 years it will be beneficial to have a study performed again to make sure the protection systems are performing as they should with all the changes that have occurred. The results of this study will tell Staff what changes need to be made, if any, to the relaying and fusing on the feeders and making sure everything is sized correctly. GM Carter noted the timeline for completion would be this summer. After discussion, a motion by Commissioner Hanson, second by Commissioner Morrow to Approve Requisition #8676 — Electric Distribution Coordination. Motion carried unanimously. c. Approve Requisition #8674 — McLeod Substation RTU GM Carter presented Requisition #8674 — McLeod Substation RTU. This item is similar to the Plant #2 RTU project, the Ilex RTU at the McLeod Substation is to be replaced and a new RTU integrated with the existing protection system relays at the substation. The project dovetails with the capacitor bank project which is scheduled for completion in 2021. A motion by Commissioner Martinez, second by Commissioner Wendorff to Approve Requisition #8674 — McLeod Substation RTU. Motion carried unanimously. d. Approve Requisition #8675 — Plant #2 Substation RTU and Relays GM Carter presented Requisition #8675 — Plant #2 Substation RTU and Relays. This item is specifically for the new Plant 2 transformers that are now on site. An engineering firm will be used to design the protection system scheme for the substation and feeders; specify materials, develop relay settings and commission the relays. HUC will procure and install the equipment. Work will start this Spring and should be complete before the hot season. A motion by Commissioner Hanson, second by Commissioner Martinez to Approve Requisition #8675 — Plant #2 Substation RTU and Relays. Motion carried unanimously. e. Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement GM Carter provided a summary of the 3M's Natural Gas Transportation and Daily Swing Supply Agreement. 3M's current agreement expires on March 1, 2021. This agreement provides transportation rights to 3M on Hutchinson's facilities 3 from March 1, 2021 through March 1, 2022. This agreement is identical to the past agreement with the exception that the 'Meter Fee' increase of $145/meter is now $215/meter in accordance with the rate realignment structure that was put in place by this Commission. A motion by Commissioner Wendorff, second by Commissioner Morrow to Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement. Motion carried unanimously. f. Discussion on Market Prices and Financial Impact with the Severe Weather GM Carter started the discussion on Market Prices and Financial Impact with the Severe Weather. As the Commission recalls a situation happened like this about 3 years ago. HUC has to Nom a certain amount of gas on a Friday for the weekend and the problem is the pricing does not settle until the following Monday but in this case the following Tuesday prices settled due to the President's Day holiday. On Friday Feb 12, the spot gas price was $15/mmbtu and Staff Nom'd just under 4700mmbtu/day for Friday through Monday. Staff returned on Tuesday and the price had settled at $154.91 /mmbtu for those four days. Typically, HUC pays about $3/mmbtu. Over those 4 days HUC spent $725K per day in natural gas purchases. On the Feb 17, Staff lowered the Noms to 3680 mmbtu and the price jumped to $188/mmbtu. Talking with other utilities down south, the prices there settled at $800-$1100/mmbtu. A lot of these utilities have spent 3-4 years of natural gas budgets in 4 days. Other utilities will have depleted cash reserves by 70%. All utilities are in different situations. HUC is estimating $6M in gas purchases for Feb; $3.3M is retail customers and $2.7M is contract customers. To put in perspective $3.5M is HUC's entire budget for the year for retail customers. GM Carter stated that the natural gas is an unregulated industry as far as price caps, there is no ceiling on price particularly in extreme weather events like the electric side. The cold weather event also caused natural gas well hubs in the southern part of the U.S to freeze, limiting the amount of natural gas that could be extracted from the ground and placed into production. Not only did the cold weather impact natural gas pricing, electric costs also increased; particularly in the ERCOT Texas market. ERCOT was not able to get a supply of gas to the generators. There are concerns mounting over inflated natural gas pricing in the markets, people manipulating the markets, and investors making money. FERC and NERC are starting inquiries. GM Carter did note that Minnesota did not have a large reliability issue like some areas down south, even though there were high prices no one went with out heat. Conversations were held on how the market prices are going to affect the customer bills and what HUC can do to minimize the cost impact either by spreading the amount over time or using cash reserves/MRES refund to lessen 4 the customer bills. GM Carter noted a Special meeting will need to be held next week to discuss the financial impact to customer accounts along with sending a Press Release to the paper on the conclusion of next week's meeting. 9. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Hanson to adjourn the meeting at 4:09p.m. Motion carried unanimously. ATTEST: Matt Cheney. Presid nt 5 Don Martinez, Secreta To: Mayor and Council From: Candice Woods, Liquor Hutch Director Date: 04/01/2021 Re: Liquor Hutch Sales January— March 2021 2020 Actual 2021 Actual Change (from 2020 Actual) 2021 Budget Change (from 2021 Budget) Year to Date Sales: $1,540,841 $1,564,160 +1.5% 1,381,700 +13.2% Liquor $ 565,485 $ 591,438 +4.6% $ 505,000 +17.1% Beer $ 706,758 $ 703,470 -0.5% $ 631,100 +11.5% Wine $ 238,700 $ 235,238 -1.5% $ 219,300 +7.3% YTD Gross Profit Dollars: $382,955 $378,911 -1.1% $343,538 +10.3% YTD Customer Count: 56,235 54,913 -2.4% NA NA Average Sale/ Customer: $27.40 $28.48 +1.0% NA NA Gross Profit Percentage: 24.8% 24.2% -0.6% 24.9% -0.7% ** Comparisons done to 2021 Budget (in addition to 2020 Actual Sales) due to Pandemic Sales in 2020. This impact began in March 2020. Store Activity Highlights: • Brewery Price Changes completed for entire Beer Inventory • Participated in the Minnesota Municipal Beverage Association Legislative Day — Virtual Meeting • Virtual Wine Tasting event held March 25" • Performance Reviews completed for 3 Full Time and 18 Part Time Employees • First draft of cooler doors, beer sales review, and equipment needs ordered for Cooler Resets on April 12th • Safety Training completed by all employees • "First Tuesday" monthly staff training events reestablished with proper social distancing. Focusing on product knowledge. • Completed an update to our POS/Cash Register system