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cp07-27-21�� i 00 OR f HUTCHINSON A CITY ON PURPOSE. CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, July 27, 2021 4:30 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, July 27, 2021, at 4:30 p.m. in the Council Chambers at the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, Minnesota for the following purpose: • REVIEW CITY'S ANNUAL FINANCIAL REPORT FOR 2020 c Matthew Ja ch, City Adminis or DATED: July 22, 2021 POSTED: City Center HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DULY 27, 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 —None (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. 15335 — Resolution Accepting Cash Donation from United Farmers Cooperative for Hutchinson Fire Department PUBLIC COMMENTS 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 July 13, 2021 (b) Council Workshop of July 13, 2021 CONSENT AGENDA e 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 Reaffirmation of City of Hutchinson Data Practices Policies (b) Consideration for Approval of Data Classification Policy (c) Consideration for Approval of 2021 Wastewater Lift Station Improvements (d) Consideration for Approval of Boiler Replacement Project at City Center (e) Consideration for Approval of Updated Construction Management Services Fee/Cost Proposal CITY COUNCIL AGENDA July 27, 2021 With Contegrity Group (f) Consideration for Approval of Resolution No. 15334 - Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit for a Senior Care Facility in an R-2 Zoning District Located at 710 Park Island Drive SW With Favorable Planning Commission Recommendation (g) Consideration for Approval of Issuing Short -Term Gambling License to Voiture 414 at VFW Post 906 (h) Consideration for Approval of Suspension of Noise Ordinance for Crow River SnoPros Event on August 13 & 14, 2021, at McLeod County Fairgrounds (i) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. - NONE COMMUNICATIONS REQUESTS AND PETITIONS hepurpose o this portion o the agenda is to provide the CounciTwith information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) UNFINISHED BUSINESS NEW BUSINESS 8. SUMMARY REVIEW AND APPROVAL OF 2020 AUDITED COMPREHENSIVE ANNUAL FINANCIAL REPORT 9. APPROVE/DENY RESOLUTION NO. 15333 — RESOLUTION AUTHORIZING ISSUANCE OF $14,155,000 GENERAL OBLIGATION BONDS, SERIES 2021A 10. APPROVE/DENY FUNDING TO MOVE THE HARRINGTON MERRILL BARN TO ITS ORIGINAL SITE 11. APPROVE/DENY PURCHASE AGREEMENT AND DEVELOPMENT AGREEMENT WITH HUTCH UPTOWN COMMONS, LLC 12. APPROVE/DENY WATER/WASTEWATER PRELIMINARY RATE STRUCTURE AND METHODOLOGY 13. APPROVE/DENY IMPLEMENTATION OF WATER CONSERVATION PLAN GOVERNANCE e 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, 2 CITY COUNCIL AGENDA July 27, 2021 policy development and governance process items.) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Sustainability Advisory Board Minutes from April 19, 2021 b) Public Arts Commission Minutes from June 10, 2021 �c) Hutchinson Housing & Redevelopment Authority Board Minutes from June 15, 2021 d) Planning Commission Minutes from June 15, 2021 �e) Quarterly Public Arts Commission Financial Update f) City of Hutchinson Financial Report and Investment Report for June 2021 NHSCELLANEOUS 15. STAFF UPDATES 16. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15335 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date United Farmers Cooperative $2,477.06 7/20/2021 WHEREAS, such a donation has been contributed to the City of Hutchinson Fire Department. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 27th day of July 2021. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JULY 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: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Brandon Begnaud, Chad Czmowski, and Dave Sebesta. Member absent was Mary Christensen. Others present were Matt Jaunich, City Administrator and Kent Exner, City Engineer. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — A moment of silence was held. (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previous y reviewed or approved by the Council or staff 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15330 — Resolution Accepting Cash Donations for Law Enforcement Memorial Park Fund Motion by Czmowski, second by Begnaud, to approve Resolution No. 15330. Motion caiTied unanimously. PUBLIC COMMENTS (This is an opportunityor members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of June 22, 2021 Motion by Begnaud, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedjor consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval to Purchase CreekSideTM Bag Film CITY COUNCIL MINUTES — July 13, 2021 (b) Consideration for Approval of Change Order No. 2 — Letting No. 1, Project No. 21-01 (2021 Pavement Management Program) (c) Consideration for Approval of Resolution No. 15331 — Resolution Ending of Temporary Utility Billing Protocols in Response to the COVID-19 Pandemic (d) Consideration for Approval of Resolution No. 15332 — Resolution to Sell at Auction Surplus Equipment (2000 Aerial Bucket Truck) (e) Consideration for Approval of Issuing Temporary Liquor License to McLeod County Agriculture Association on August 19 — 22, 2021, for McLeod County Fair (f) Consideration for Approval of 47th Annual Arts & Crafts Festival to Be Held September 17 & 18, 2021, in Library Square/1st Avenue SE/Hassan Street (g) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Sebesta, to approve the consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. APPROVE/DENY ISSUING ON -SALE INTOXICATING LIQUOR LICENSE TO RAYMOND ZEULI, JR., DBA RIVER HOUSE KITCHEN+DRINKS LOCATED AT 122 MAIN STREET SOUTH Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that this new establishment is going into the former Hutch Cafe location. A public hearing is required before a new on -sale intoxicating liquor license is issued. Motion by Sebesta, second by Czmowski, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Begnaud, to approve issuing on -sale intoxicating liquor license to Raymond Zeuli, Jr. of River House Kitchen+Dnnks. Motion carried unanimously. 9. ASSESSMENT HEARING FOR 1ST AVENUE NE IMPROVEMENTS PROJECT (LETTING NO. 10, PROJECT NO. 21-10) (a) Approve/Deny Resolution No. 15329 — Resolution Adopting Assessment Kent Exner, City Engineer, presented before the Council. Mr. Exner reminded the Council that this project was awarded to R&R ExcavatinS at the last Council meeting. Three adjacent properties are being assessed for this project. The project began last week and is well underway. The project is slated to be completed by September 11, 2021. Morgan Baum, property owner of 22 1st Avenue NE, presented before the Council. Ms. Baum asked the width of the parking spaces on 1st Avenue NE. Mr. Exner noted that he will look into the width of the spaces and see if another parking space might be able to be installed. Ms. Baum made a request that better signage be put in place for the alley as there have been some near misses with traffic traveling the wrong way down the alley. Motion by Czmowski, second by Sebesta, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by Begnaud, to approve Resolution No. 15329. Motion carried unanimously. 2 CITY COUNCIL MINUTES - July 13, 2021 purpose of this portion of the 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.) 10. DISCUSSION ON COUNCIL VACANCY AND NEXT STEPS Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that 10 individuals have submitted interest forms for interest in being appointed to the City Council until the special election is held to fill the vacancy being left by Brandon Begnaud. Mr. Jaunich noted that the Council needs to identify a process to use to select an appointee. Mr. Jaunich has suggested a few processes to use, however the Council needs to formally identify a process. Mayor Forcier noted that he had spoken to Council Member Christensen about a process to use and they feel that all 10 individuals should be invited to interview prior to making an appointment. It was suggested that perhaps three or four questions be developed and asked of the individuals and limit the interviews to 20-30 minutes. It was also suggested that the interview questions be given to the individuals ahead of time. Mr. Jaunich will provide questions for the Council to choose from. Council Member Czmowski suggested holding two interview sessions - one on July 26th and one on July 28th. Council Member Czmowski also suggested limiting the interviews to 25 minutes and schedule the interviews every half hour. Motion by Czmowski, second by Sebesta, to set July 26 and July 28, 2021, at 4:00 p.m. as special City Council meetings to interview interested persons for the vacant council member seat. Five candidates will be interviewed each evening. Motion carried unanimously. UNFINISHED BUSINESS 11. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 21-823 - AN ORDINANCE TO REZONE PROPERTY AT 126 AND 135 FRANKLIN STREET NW FROM C-3 (CENTRAL COMMERCIAL DISTRICT) TO MXD (MIXED USE DISTRICT) AS REQUESTED BY CITY OF HUTCHINSON, PROPERTY OWNER Motion by Czmowski, second by Begnaud, to approve second reading and adoption of Ordinance No. 21-523. Motion carried unanimously. 12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 21-824 - AN ORDINANCE AMENDING SECTION 154.063 OF CITY CODE REGARDING CONDITIONALLY PERMITED USES IN THE C-3 CENTRAL COMMERICAL ZONING DISTRICT Motion by Czmowski, second by Begnaud, to approve second reading and adoption of Ordinance No. 21-524. Motion carried unanimously. NEW BUSINESS 13. APPROVE/DENY STREETLIGHT MAINTENANCE PROGRAM (LED TRANSITION) Kent Exner, City Engineer, and John Olson, Public Works Manager, presented before the Council. Mr. Exner explained that Public Works staff and Hutchinson Utilities have been discussing over the years a conversion to LED streetlights. Over the last five years, LED streetlights have been installed on new projects. There are currently 16% LED streetlights and 84% high-pressure sodium CITY COUNCIL MINUTES - July 13, 2021 streetlights. Upon Ameresco's energy evaluation, staff was able to identify the cost of a potential project to convert all streetlights to LED. However, there was a primary concern of the installation costs of a large, single conversion project. Therefore, staff and HUC are proposing implementing a maintenance program instead of doing a conversion project. The City will acquire appropriate LED fixtures and provide them to HUC. HUC will install new LED fixtures instead of repairing or re- lamping approximately 200 streetlights per year. By implementing this program, operational and maintenance costs will be reduced by approximately 5%-10% per year. This type of similar maintenance is currently being done at Public Works facilities where fixtures are no longer repaired and instead are replaced with high -efficiency LED fixtures. Material costs for 200 streetlight fixtures are estimated to cost between $150,000-$175,000. Funding for these materials can come from the infrastructure maintenance account and capital projects fund. Motion by Czmowski, second by Begnaud, to approve streetlight maintenance program. Motion carried unanimously. GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, in cludingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Economic Development Authority Board Minutes from May 26, 2021 b) Hutchinson Utilities Commission Minutes from April 28 and May 26, 2021 �c) Library Board Minutes from May 24, 2021 d) Liquor Hutch Quarterly Report MISCELLANEOUS 15. STAFF UPDATES Kent Exner — Mr. Exner reported that the pavement management program project near the Recreation Center is going very well. Paving should be completed in September. The HAWK system at Hwy 7/Montana Street installation will begin July 26 h. The Headworks project is beginning. The water/wastewater SCADA controls program should be bid out in August. Mr. Exner also mentioned the low levels of the river which is all due to the drought the area is in and not due to the dam structure. Matt Jaunich — Mr. Jaunich announced that the Library Square fountain is not operating and is mainly due to people going into it and damaging the equipment inside of it. He also noted that a workshop will be held at 4:30 p.m. on July 27, 2021, to review the 2020 audit. Mr. Jaunich also thanked Council Member Begnaud for his service. 16. COUNCIL/MAYOR UPDATE Mayor Forcier — Mayor Forcier asked the police chief for extra patrol near Northwoods Avenue as there have been some near misses with pedestrians. Mayor Forcier also commented that there is no pedestrian ramp on the northeast corner of the sidewalk at the Adams Street/Washington Avenue intersection in front of Ohly which has been problematic for some bicyclists. Mayor Forcier also thanked Council Member Begnaud for his service. Mayor Forcier commented on the labor shortage and he asked all residents to have patience with those working in the public and private sector. CITY COUNCIL MINUTES July 13, 2021 Brandon Begnaud — Council Member Begnaud thanked everyone that he has worked with during his time as a council member. Dave Sebesta — Council Member Sebesta bid farewell to Council Member Begnaud. He also acknowledged Dan Hart at the Bobbing Bobber Brewery for a very successful food truck event he held this past weekend. ADJOURNMENT Motion by Begnaud, second by Czmowski, to adjourn at 6:30 p.m. Motion carried unanimously. 5 HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, JULY 13, 2021, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS Call to Order Mayor Forcier called the meeting to order. Members present were Brandon Begnaud, Chad Czmowski and Dave Sebesta. Member absent was Mary Christensen. Others present were Matt Jaunich, City Administrator and Kent Exner, City Engineer. DISCUSSION/REVIEW ITEMS 1. Review of Water and Sewer Rate Study Kent Exner, City Engineer, presented before the Council and explained the purpose of today's workshop. Mr. Exner introduced Karen Cavett of SEH Engineering. Ms. Cavett reviewed the agenda for today's workshop which includes background information, goals, existing water rate structure, water conservation rate structures, existing sewer rate structure and recommendations. Ms. Cavett explained that the items reviewed as part of the study included historical water demand (gallons/day), projected population growth, projected commercial & industrial growth and water use from all users (single family, multi -family, commercial and industrial). Ms. Cavett reviewed the historical water demand by month from the years 2015-2017. The goals of the review/study are to promote water conservation, comply with state mandated requirements, provide fair and equitable rates and generate sufficient revenue stability. Ms. Cavett reviewed the current water rate structure which consists of a base charge + a usage charge ($/1000 gallon). Upon review, Ms. Cavett proposed a rate structure for water which consists of base (availability) charge, commodity charges — increasing block (tiered) for residential, commodity charges — flat rate for non-residential. The proposed rate structure for sewer consists of base (availability) charge, commodity charge (flat) based on monthly water use, loading charges. The water/sewer base charges for residential users is centered around residential equivalent unit (REU); normalizes water use by comparing customer use to atypical single-family residential customer; fair and equitable; one REU = 4000gallons/month. Single Family Residential is the same as the current rate structure and one single family customer = one REU. For multi -family residential users the proposed rate structure assigns one REU to each unit served by a connection; applies a reduction multiplier to the account for multi -family customers using less water (one multi -family REU = 2600 gallon/month; 65% of the average single-family water use); one multi -family residential unit = 0.65 REU; this is a change from the current rate structure which bills by the connection. For commercial/industrial users a multiplier is assigned based on the meter size, water meter equivalent factor. Commercial/industrial users may use less than the capacity of the meter, but the City is required to provide the capacity for that meter size regardless of how much water is used; encourages the right sizing of the meters and improving the capacity of the system; change from current rate structure which bills by the connection. Ms. Cavett reviewed the commodity charges for each group. For residential accounts, the proposal is to increase the blocks/tiers based on water use, once volumes used reach the next block/tier, a higher rate is applied to that use. The blocks would be as follows: 0 to 5999 gallons; 6000 to 11,999 gallons and greater than 12,000 gallons. There is a 25% rate increase between the blocks. This proposal encourages conservation by starting the second block at the greatest difference between warm weather use and the base flow; fair and equitable by including about 90% of the single-family customers in the first block; multi -family rates will be determined based on the average water use per customer (REU); change from the current rate structure which is a decreasing block. The proposed water commodity charge for commercial/industrial users is a flat rate structure with no change with volume of water used; fair and equitable by recognizing the water use by commercial industrial is essential; change from current rate structure which is a decreasing block. Ms. Cavett spoke about irrigation meters which will be available and will not be charged sanitary sewer base or commodity charges; 25% increase to the commodity rates because it is a non -essential water use; annual administrative fee of $25.00 and a deduction will be applied May 1 through September 30. It is proposed for the sanitary sewer commodity charge be a flat rate per volume of water applied to all customers; billing based on each month's water consumption and is a change from current rate structure which is a flat rate billed on the January and February average. Ms. Cavett proposed a sanitary sewer loading charge which changes account for update to unique loading -related treatment requirements over the years; addresses both treatment costs and the effect of proposed changes to sanitary sewer commodity charges and applies to significant industrial users. Ms. Cavett provided sanitary sewer rate tables and examples, water rate tables and examples and water and sewer rate examples and examples. Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff will bring forward a rate structure based on the study to members of the public. Based on feedback from the public, new rate structures will be incorporated into the Public Works budget for 2022 and presented to the Council in the form of the proposed budget. Various staff members spoke about the benefits of the proposed rate structure. Mr. Exner noted at the next Council meeting staff will present to the Council what they propose to present to the public. Motion by Czmowski, second by Sebesta, to adjourn at 4:40 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ntyafA a-N Request for Board Action 7AZ Owl-7 Agenda Item: City Data Practices Policies Department: Legal LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: State law requires the City to adopt a data practices policy which guides both the City and members of the public in obtaining information that the City retains. The data practices policy informs people of what type of information is public and what is not, how to obtain that information, who is responsible for overseeing data that is kept by the City, and what the cost is to obtain data, if any. State law also requires that the City adopt the data practices policy annually. For your consideration and approval is the data practices policy for the City of Hutchinson. There is no proposed change from the version we adopted last year. I recommend adoption of the data practices policy. BOARD ACTION REQUESTED: Approve reaffirmation of City Data Practices policies. 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: F4 Data Practices Policy for Members of the Public Right to Access Public Data The Government Data Practices Act (Minnesota Statutes, Chapter 13) presumes that all government data are public unless a state or federal law says the data are not public. Government data is a term that means all recorded information a government entity has, including paper, email, DVDs, photographs, etc. The Government Data Practices Act also provides that this government entity must keep all government data in a way that makes it easy for you, as a member of the public, to access public data. You have the right to look at (inspect), free of charge, all public data that we keep. You also have the right to get copies of public data. The Government Data Practices Act allows us to charge for copies. You have the right to look at data, free of charge, before deciding to request copies. How to Make a Data Request To look at data or request copies of data that this government entity keeps, make a written request. Make your request for data to the appropriate individual listed in the Data Practices Contacts on page 4 You may make your request for data by mail, fax or email using the data request form on page 6. If you choose not to use the data request form, your request should include: • that you, as a member of the public, are making a request for data under the Government Data Practices Act, Minnesota Statutes, Chapter 13; • whether you would like to look at the data, get copies of the data, or both; and • a clear description of the data you would like to inspect or have copied. This government entity cannot require you, as a member of the public, to identify yourself or explain the reason for your data request. However, depending on how you want us to process your request (if, for example, you want us to mail you copies of data), we may need some information about you. If you choose not to give us any identifying information, we will provide you with contact information so you may check on the status of your request. In addition, please keep in mind that if we do not understand your request and have no way to contact you, we will not be able to begin processing your request. How We Respond to a Data Request Upon receiving your request, we will work to process it. If we do not have the data, we will notify you in writing as soon as reasonably possible. If we have the data, but the data are not public, we will notify you as soon as reasonably possible and state which specific law says the data are not public. If we have the data, and the data are public, we will respond to your request appropriately and promptly, within a reasonable amount of time by doing one of the following: o arrange a date, time, and place to inspect data, for free, if your request is to look at the data, or o provide you with copies of the data as soon as reasonably possible. You may choose to pick up your copies, or we will mail or fax them to you. if you want us to send you the copies, Policy required by Minnesota Statutes, section 13.025, subdivision 2. Page 2 you will need to provide us with an address or fax number. We will provide electronic copies (such as email or CD-ROM) upon request if we keep the data in electronic format. Information about copy charges is on page 5. If you do not understand some of the data (technical terminology, abbreviations, or acronyms), please let us know. We will give you an explanation if you ask. The Government Data Practices Act does not require us to create or collect new data in response to a data request if we do not already have the data, or to provide data in a specific form or arrangement if we do not keep the data in that form or arrangement. (For example, if the data you request are on paper only, we are not required to create electronic documents to respond to your request.) If we agree to create data in response to your request, we will work with you on the details of your request, including cost and response time. In addition, the Government Data Practices Act does not require us to answer questions that are not requests for data. Requests for Summary Data Summary data are statistical records or reports that are prepared by removing all identifiers from private or confidential data on individuals. The preparation of summary data is not a means to gain access to private or confidential data. We will prepare summary data if you make your request in writing and pre -pay for the cost of creating the data. Upon receiving your written request — you may use the data request form on page 6 — we will respond within ten business days with the data or details of when the data will be ready and how much we will charge. Policy required by Minnesota Statutes, section 13.025, subdivision 2. Page 3 Data Practices Contacts Responsible Authority City Administrator 111 Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Data Practices Compliance Official City Attorney 111 Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Data Practices Designee(s) Executive Assistant/Paralegal ill Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Polity required by Minnesota Statutes, section 13.025, subdivision 2. Page 4 Copy Costs — Members of the Public This government entity charges members of the public for copies of government data. These charges are authorized under Minnesota Statutes, section 13.03, subdivision 3(c). For 100 or Fewer Paper Copies — 25 cents per page 100 or fewer pages of black and white, letter or legal size paper copies cost 25C for a one-sided copy, or SOC for a two-sided copy. The City does not charge for copies that are 10 pages or less. Most Other Types of Copies — Actual cost The charge for most other types of copies, when a charge is not set by statute or rule, is the actual cost of searching for and retrieving the data, and making the copies or electronically transmitting the data (e.g. sending the data by email). In determining the actual cost of making copies, we factor in employee time, the cost of the materials onto which we are copying the data (paper, CD, DVD, etc.), and mailing costs (if any). If your request is for copies of data that we cannot reproduce ourselves, such as photographs, we will charge you the actual cost we must pay an outside vendor for the copies. The cost of employee time to search for data, retrieve data, and make copies is the retriever's hourly rate. If, because of the subject matter of your request, we find it necessary for a higher -paid employee to search for and retrieve the data, we will calculate the search and retrieval portion of the copy charge at the higher salary/wage. Policy required by Minnesota Statutes, section 13.025, subdivision 2. Page 5 Data Request Form - Members of the Public Date of request• I am requesting access to data in the following way: ❑ Inspection ❑ Copies ❑ Both inspection and copies Note: inspection is free but the City charges $.25/page for copies over 10 pages. These are the data I am requesting: Describe the data you are requesting as specifically as possible. If you need more space, please use the back of this form. Contact Information Name: Address: Phone number: Email address: You do not have to provide any of the above contact information. However, if you want us to mail/email you copies of data, we will need some type of contact information. In addition, if we do not understand your request and need to get clarification from you, without contact information we will not be able to begin processing your request until you contact us. We will respond to your request as soon as reasonably possible. Policy required by Minnesota Statutes, section 13.025, subdivision 2. Page 6 C Data Practices Policy for Data Subjects Data about You The Government Data Practices Act (Minnesota Statutes, Chapter 13) says that data subjects have certain rights related to a government entity collecting, creating, and keeping government data about them. You are the subject of data when you can be identified from the data. Government data is a term that means all recorded information a government entity has, including paper, email, DVDs, photographs, etc. Classification of Data about You The Government Data Practices Act presumes that all government data are public unless a state or federal law says that the data are not public. Data about you are classified by state law as public, private, or confidential. See below for some examples. 1. Public data: We must give public data to anyone who asks; it does not matter who is asking for the data or why. The following is an example of public data about you: the names of Minnesota government employees Private data: We cannot give private data to the general public, but you have access when the data are about you. We can share your private data with you, with someone who has your permission, with our government entity staff who need the data to do their work, and as permitted by law or court order. The following is an example of private data about you: Social Security numbers 3. Confidential data: Confidential data have the most protection. Neither the public nor you can get access even when the confidential data are about you. We can share confidential data about you with our government entity staff who need the data to do their work and to others as permitted by law or court order. We cannot give you access to confidential data. The following is an example of confidential data about you: the identity of the subject of on active criminal investigation Your Rights under the Government Data Practices Act This government entity must keep all government data in a way that makes it easy for you to access data about you. Also, we can collect and keep only those data about you that we need for administering and managing programs that are permitted by law. As a data subject, you have the following rights. Access to Your Data You have the right to look at (inspect), free of charge, public and private data that we keep about you. You also have the right to get copies of public and private data about you. The - Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 2 Government Data Practices Act allows us to charge for copies. You have the right to look at data, free of charge, before deciding to request copies. Also, if you ask, we will tell you whether we keep data about you and whether the data are public, private, or confidential. As a parent, you have the right to look at and get copies of public and private data about your minor children (under the age of 18). As a legally appointed guardian, you have the right to look at and get copies of public and private data about an individual for whom you are appointed guardian. Minors have the right to ask this government entity not to give data about them to their parent or guardian. If you are a minor, we will tell you that you have this right. We may ask you to put your request in writing and to include the reasons that we should deny your parents access to the data. We will make the final decision about your request based on your best interests. Note: Minors do not have this right if the data in question are educational data maintained by an educational agency or institution. • When We Collect Data from You When we ask you to provide data about yourself that are not public, we must give you a notice. The notice is sometimes called a Tennessen warning. The notice controls what we do with the data that we collect from you. Usually, we can use and release the data only in the ways described in the notice. We will ask for your written permission if we need to use or release private data about you in a different way, or if you ask us to release the data to another person. This permission is called informed consent. If you want us to release data to another person, you must use the consent form we provide. Protecting your Data The Government Data Practices Act requires us to protect your data. We have established appropriate safeguards to ensure that your data are safe. In the unfortunate event that we determine a security breach has occurred and an unauthorized person has gained access to your data, we will notify you as required by law. When your Data are Inaccurate and/or Incomplete You have the right to challenge the accuracy and/or completeness of public and private data about you. You also have the right to appeal our decision. If you are a minor, your parent or guardian has the right to challenge data about you. How to Make a Request for Your Data To look at data, or request copies of data that this government entity keeps about you, your minor children, or an individual for whom you have been appointed legal guardian, make a written request. Make your request for data to the appropriate individual listed in the Data Practices Contacts on page 5. You may make your request by mail, fax or email using the data request form on page 7. Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 3 If you choose not use to use the data request form, your request should include: • that you are making a request, under the Government Data Practices Act (Minnesota Statutes, Chapter 13), as a data subject, for data about you; • whether you would like to inspect the data, have copies of the data, or both; • a clear description of the data you would like to inspect or have copied; and • identifying information that proves you are the data subject, or data subject's parent/guardian. This government entity requires proof of your identity before we can respond to your request for data. If you are requesting data about your minor child, you must show proof that you are the minor's parent. If you are a guardian, you must show legal documentation of your guardianship. Please see the Standards for Verifying Identity located on page 8. How We Respond to a Data Request Once you make your request, we will work to process your request. if it is not clear what data you are requesting, we will ask you for clarification. If we do not have the data, we will notify you in writing within 10 business days. If we have the data, but the data are confidential or private data that are not about you, we will notify you within 10 business days and state which specific law says you cannot access the data. If we have the data, and the data are public or private data about you, we will respond to your request within 10 business days, by doing one of the following: o arrange a date, time, and place to inspect data, for free, if your request is to look at the data, or o provide you with copies of the data within 10 business days. You may choose to pick up your copies, or we will mail or fax them to you. We will provide electronic copies (such as email or CD-ROM) upon request if we keep the data in electronic format. Information about copy charges is on page 6. After we have provided you with access to data about you, we do not have to show you the data again for 6 months unless there is a dispute or we collect or create new data about you. If you do not understand some of the data (technical terminology, abbreviations, or acronyms), please let us know. We will give you an explanation if you ask. The Government Data Practices Act does not require us to create or collect new data in response to a data request if we do not already have the data, or to provide data in a specific form or arrangement if we do not keep the data in that form or arrangement. (For example, if the data you request are on paper only, we are not required to create electronic documents to respond to your request.) If we agree to create data in response to your request, we will work with you on the details of your request, including cost and response time. In addition, we are not required under the Government Data Practices Act to respond to questions that are not specific requests for data. Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 4 Data Practices Contacts Responsible Authority City Administrator 111 Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Data Practices Compliance Official City Attorney 111 Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Data Practices Designee(s) Executive Assistant/Paralegal 111 Hassan Street SE Hutchinson, MN 55350 Ph. (320) 587-5151 Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 5 Copy Costs - Data Subjects This government entity charges data subjects for copies of government data. These charges are authorized under Minnesota Statutes, section 13.04, subdivision 3. The City does not charge for copies that are 10 pages or less. Actual Cost of Making the Copies In determining the actual cost of making copies, we factor in employee time, the cost of the materials onto which we are copying the data (paper, CD, DVD, etc.), and mailing costs (if any). If your request is for copies of data that we cannot reproduce ourselves, such as photographs, we will charge you the actual cost we must pay an outside vendor for the copies. The cost of employee time to make copies is the retriever's hourly rate. Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 6 Data Request Form - Data Subjects Date of request: To request data as a data subject, you must show [a valid state ID, such as a driver's license, military ID, or passport] as proof of identity. I am requesting access to data in the following way: ❑ Inspection ❑ Copies ❑ Both inspection and copies Note: inspection is free but a charge is applied for copies that are 10 pages or more. These are the data I am requesting: Describe the data you are requesting as specifically as possible. If you need more space, please use the back of this form. Contact Information Data subject name Parent/Guardian name (if applicable) Address Phone number Email address Staff Verification Identification provided We will respond to your request within 10 business days. Policy required by Minnesota Statutes, section 13.025, subdivision 3. Page 7 Standards for Verifying Identity The following constitute proof of identity. • An adult individual must provide a valid photo ID, such as o a state driver's license o a military ID o a passport o a Minnesota ID o a Minnesota tribal ID • A minor individual must provide a valid photo ID, such as o a state driver's license o a military ID o a passport o a Minnesota ID o a Minnesota Tribal ID o a Minnesota school ID • The parent or guardian of a minor must provide a valid photo ID and either o a certified copy of the minor's birth certificate or o a certified copy of documents that establish the parent or guardian's relationship to the child, such as ❖ a court order relating to divorce, separation, custody, foster care ❖ a foster care contract ❖ an affidavit of parentage • The legal guardian for an individual must provide a valid photo ID and a certified copy of appropriate documentation of formal or informal appointment as guardian, such as o court order(s) o valid power of attorney Note: Individuals who do not exercise their data practices rights in person must provide either notarized or certified copies of the documents that are required or an affidavit of ID. Policy required by Minnesota Statutes, section 13.02S, subdivision 3. Page 8 cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration for approval of a Data Classification Policy Agenda Item: Department: Information Technology LICENSE SECTION Meeting Date: 7/27/2029 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 OF AGENDA ITEM: A Data Classification Policy goes hand in hand with a Data Practices Policy. The Data Classification Policy helps staff by defining data using three categories to assist in keeping private data safe. In practice, everyone that deals with protected data has been trained in one way or another and understands the importance of protecting private data. This policy formalizes the data types and provides formal direction for all staff. Attached is the proposed Data Classification Policy for consideration by the City Council. BOARD ACTION REQUESTED: Consideration and adoption of City of Hutchinson Data Classification Policy 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 u Data Classification Policy f= HUTCHINSuh IT Department Policy n CITY ON PURPOSE. Last Review: 7/2021 by Tom Kloss Purpose The purpose of the City of Hutchinson Information Classification and Management Policy is to provide a system for classifying and managing Information Resources according to the risks associated with its storage, processing, transmission, and destruction. Responsibilities Scope This policy applies to all employees and board/commission/committee members of the City of Hutchinson Information User A City of Hutchinson employee, appointed committee member, or elected official that interacts with information as part of their role in the organization. Information Owner • The person responsible for, or dependent upon, the business process associated with an information resource. • Is knowledgeable about how the information is acquired, transmitted, stored, deleted, and otherwise processed. • Determines the appropriate value and classification of information generated by the owner or department. • Must communicate the information classification when the information is released outside of the department and/or City of Hutchinson. • Controls access to their information and must be consulted when access is extended or modified. • Must periodically review their information to ensure the proper classification is applied. • Each department is responsible for the security of their data Policy Information Classification Information owned, used, created or maintained by City of Hutchinson should be classified into one of the following three categories: • Public • Internal • Confidential Public Information • Is information that may or must be open to the general public. • has no existing local, national, or international legal restrictions on access or usage. • While subject to City of Hutchinson disclosure rules, is available to all City of Hutchinson employees and all individuals or entities external governmental entity. Examples of Public Information include: • Publicly posted press releases • Publicly available marketing materials • Publicly posted job announcements Internal Information Includes data that, if breached or disclosed to an unauthorized person, is a violation of State or federal law. Internal data and systems may also be referred to as Restricted. • Is information that must be guarded due to proprietary, ethical, or privacy considerations. • Must be protected from unauthorized access, modification, transmission, storage or other use and applies even though there may not be a civil statute requiring this protection. • Is restricted to personnel designated by City of Hutchinson, who have a legitimate business purpose for accessing such Information. Examples of Internal Information include: • Employment Information • Business partner information where no more restrictive confidentiality agreement exists • Internal directories and organization charts • Planning documents • Contracts Confidential Information Data that, if breached or disclosed to unauthorized users, has the potential to cause great harm or damage to individuals or institutions. High Risk information can be disclosed only under very specificconditions, if at all. State or federal law or other requirements often include specific standards for protecting High Risk data and systems. High Risk data and systems may also be referred to as Highly Restricted. Examples of Confidential Information include: Personal Information and Personally Identifiable Information (PII) — Under federal law, personal information Is any representation of information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means. Examples of Identifying information: • First name or initial and last name combined with any other PII information Social security or employer taxpayer identification numbers. Driver's license, state identification card, or passport numbers. Checking account numbers. Savings account numbers. Credit card numbers. Debit card numbers. Electronic identification numbers, electronic mail names or addresses, Internet account numbers,or Internet identification names. Digital signatures. Any other numbers or information that can be used to access a person's financial resources. Biometric data. Fingerprints. Passwords. Parent's legal surname prior to marriage. State and Federal Tax Information (FTI) — FTI is any return or return information received from the Internal Revenue Service (IRS) or secondary source, such as from the Social Security Administration (SSA), Federal Office of Child Support Enforcement, or the Bureau of Fiscal Service. FTI includes any information created by the recipient that is derived from return or return information. Payment Card Industry (PCI) Data Security Standard (DSS) — PCI DSS applies to the transmission, storage,or processing of confidential credit card data. This data classification includes credit card magnetic stripe data, card verification values, payment account numbers, personally identification numbers, passwords, and card expiration dates. Personal Health Information (PHI) — PHI is confidential health care information for natural persons related to past, present, or future conditions, including mental health information. This information is protected under the same controls as Health Insurance Portability and Accountability Act (HIPAA) of 1996and state laws that address the storage of confidential state and federal personally identifiable health information that is protected from disclosure. Criminal Justice Information (CJI) — CA applies to confidential information from Federal Bureau of Investigation (FBI) Criminal Justice Information Systems (CJIS) provided data necessary for law enforcement and civil agencies to perform their missions including but not limited to biometric, identity history, biographic, property, and case and incident history data. Social Security Administration Provided Information — Information that is obtained from the Social Security Administration (SSA). This can include a Social Security number verification indicator or other PII data. Data Handling • Public: • Disclosure of Public Information must not violate any pre-existing, signed non- disclosure agreements. • Internal: • Must be protected to prevent loss, theft, unauthorized access and/or unauthorized disclosure. • Must be protected by a confidentiality agreement before access is allowed. • Must be stored in a closed container (i.e. file cabinet, closed office, or department where physical controls are in place to prevent disclosure) when not in use. • Is the "default" classification level if one has not been explicitly defined. • Confidential: • When stored in an electronic format must be protected with a minimum level of authentication to include strong passwords as defined in the Authentication Standard. • When stored on mobile devices and media, must be encrypted. • Must be encrypted at rest. • Must be stored in a locked cabinet, room, or area where access is controlled by a keyed lock and/or card reader, or that otherwise has sufficient physical access control measures to afford adequate protection and prevent unauthorized access by members of the public, visitors, or other persons without a need -to -know. • Must NOT be transferred via unsecure communication channels, including, but not limited to: ■ Unencrypted email ■ Text messaging ■ Instant Messaging ■ Unencrypted FTP ■ Mobile devices without encryption • When sent via fax, must be sent only to a previously established and used address or one that has been verified as using a secured location. • When transmitted via USPS or other mail service, must be enclosed in a sealed security envelope. • Must not be posted on any public website. City of Hutchinson Management must be notified in a timely manner if Information classified as Confidential has been or is suspected of being lost or disclosed to unauthorized parties. Version History Version Modified Date Approval Date Approved by Reason/Comments 2021 7/21 City Council HUTCHINSON CITY COUNCIL Cityaf Request for Board Action 79 =-wz7 Agenda Item: Purchase Order - 2021 Wastewater Lift Station Improvements Department: PW/Eng LICENSE SECTION Meeting Date: 7,27/2021 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Per the attached Letter of Recommendation (Nero Engineering) and Quote Form (R & R Excavating, Inc.), City staff recommends that a purchase order be authorized to administer wastewater lift station improvements (McDonalds location) in the amount of $61,848.17. BOARD ACTION REQUESTED: Approve/Deny Purchase Order Fiscal Impact: Funding Source: Wastewater funu FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 61,848.17 Total City Cost: $ 61,848.17 Funding Source: Wastewater Fund Remaining Cost: $ 0.00 Funding Source: SslNERD o*t ENGINEERING June 9, 2021 7135 MADISON AVENUE W MINNEAPOLIS, MN 55427 www.neroeng.com (612) 240-0524 TO: City of Hutchinson Attn: Kent Exner 1300 Adams St. SE Hutchinson, MN 55350 (320) 234-4212 Re: Letter of Recommendation McDonald's Lift Station Rehabilitation Project — Construction Contract Dear Mr. Exner: On behalf of the City, Nero Engineering reviewed the quotes for the rehabilitation of the McDonald's Lift Station. This is the fifth lift station rehabilitation project in an overall effort to standardize equipment in all of the City's lift stations. The lift stations were separated into groups that had similarly sized pumps and hydraulic qualities. The McDonald's Lift Station was originally planned to be rehabilitated in 2023, but because of issues with the existing McDonald's pumps and changes in budgeting plans, the complete rehab was moved ahead in the schedule. Because the old pumps failed, two new pumps were installed in the McDonald's Lift Station in 2018 and 2019. This project will consist of the temporary removal of the pumps so that the base elbows, guiderails, and discharge piping can be replaced within the wetwell. The wetwell cover will be removed and replaced with a new cover and access hatch consistent with the lift station standardization. The valves in the existing valve vault will be replaced within the structure. The control panel is being procured by the City and will be installed as part of this construction contract. This construction project includes the work to install the procured pump accessories and panel as well as the removal of the existing equipment and the furnishing and installing of the required piping, valves, hatches, concrete covers and other ancillary work to complete the rehab of the McDonald's Lift Station. Quotes were received from four contractors: R & R Excavating, MN Mechanical Solutions, Rubin Construction, and Rice Lake Construction Group. The results of the bids are: 1. R & R Excavating, Inc.- $61,848.17 2. MN Mechanical Solutions, Inc.- $85,710.00 3. Rubin Construction, LLC- $98,700.00 4. Rice Lake Construction Group- $144,600.00 Our engineer's estimate of probable cost for the McDonald's Lift Station Rehabilitation Project (construction) was $70,000. The wide range of quotes we received is expected to be because contractors are busy this year and their schedules and timing with other projects likely affected their quotes. Additionally, the price and availability of materials have been changing significantly on a daily basis in the current market. It is our recommendation to award the McDonald's Lift Station Rehabilitation Project to R & R Excavating, Inc., in the amount of $61,848.17. We worked with R&R on the Otter Lake, Shady Ridge and Delaware Lift Stations Rehabilitation Projects and were satisfied with their quality of work. We will be pleased to answer any questions concerning the recommendations set forth herein. Sincerely, Jom'* kdml�� Jennifer Svennes, PE CC: Tim Gratke, City of Hutchinson Request for Quotes McDonald's Lift Station Rehabilitation Project City of Hutchinson Proposer: [�'}" 1',XCCxCk--V r % all Y-t ARTICLE 1 - QUOTE RECIPIENT 1.1 The Quote is submitted to: City of Hutchinson (Owner) 111 Hassan Street SE Hutchinson, MN 55350-2522 1.2 The undersigned Proposer proposes and agrees, if this Quote is accepted, to enter into an Agreement with Owner in the form included in the Request for Quote (RFQ) Documents to perform all Work as specified or indicated in the RFQ Documents for the prices and within the times indicated in this Quote and in accordance with the other terms and conditions of the RFQ Documents. ARTICLE 2 - PROPOSER'S REPRESENTATIONS 2.1 In submitting this Quote, Proposer represents, as set forth in the Agreement, that: A. Proposer has examined and carefully studied the Quote Documents, the other related data identified in the Quote Documents, and the following Addenda, receipt of which is hereby acknowledged. Addendum No. Addendum Date B. If specified, or if in Proposer's judgment, any local condition that may affect cost, progress or the performing of the Work, Proposer has visited the Project Site and become familiar with and is satisfied as to the local conditions. C. Proposer is familiar with and is satisfied as to all federal, state and local Laws and Regulations that may affect cost, progress and the performing of the Work. D. Proposer has carefully studied and correlated the information known to Proposer, and information and observations obtained from Proposer's visits, if any, to the Project Site with the RFQ Documents. E. Proposer has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Proposer has discovered in the RFQ Documents, and the written resolution thereof by Engineer is acceptable to Proposer. If there has been no written resolution by Engineer, the Proposer has included in the Quote a list of clarifications and exceptions to the RFQ Documents. WWTF McDonald's Lift Station Rehabilitation May 2021 Hutchinson, Minnesota 0041 00 - 1 Quote Form F. The RFQ Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performing the Work for which this Quote is submitted. G. Proposer further represents that: 1. This Quote is genuine and not made in the interest of or on behalf of any undisclosed individual or entity and is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; 2. Proposer has not directly or indirectly induced or solicited any other Proposer to submit a false or sham Quote; 3. Proposer has not solicited or induced any individual or entity to refrain from quoting; and 4. Proposer has not sought by collusion to obtain for itself any advantage over any other Proposer or over Owner. ARTICLE 3 - BASIS OF QUOTE 3.1 Proposer will complete the Work in accordance with the RFQ Documents for the following prices. Item No. Quote Item Description Unit of Measure Price (U.S. Dollars) Q1 McDonald's Lift Station Rehabilitation Lump Sum Swft,( —one V( "r\c Xz-W—`69VXt- &01 la Vs arn& Sewn}2.Q n uAts words .p Ca g-, l (figures) ARTICLE 4 - TIME OF COMPLETION 4.1 Proposer agrees that the Work will meet the substantial completion date and will be completed and ready for final payment on or before the dates or within the number of calendar days indicated in the Agreement. 4.2 Proposer accepts the provisions of the Agreement as to liquidated damages in the event of its failure to perform the Work in accordance with the schedule set forth in the Agreement. WWTF McDonald's Lift Station Rehabilitation May 2021 Hutchinson, Minnesota 0041 00 - 2 Quote Form If Proposer is: An Individual Name (typed or printed): By: (Individual's signature) Doing business as: A Partnership Partnership Name: By: (Signature of general partner— attach evidence of authority to sign) Name (typed or printed): A Corporation 1p—+- Corporation Name: State of Incorporation: w 1 �U?Z� Type (Generusines?ofessional, Service, Limited Liability): sVi e By: cam— ---�-" gnature — attach eviden e of authority to sign) � Name (typed or printed):'�- .ri _ _ _ . Title: Attest: ill Date of Authorization to do business in State of Minnesota is_. `T —! A Joint Venture Name of Joint Venture: First Joint Venturer Name: By: (SEAL) (SEAL) (SEAL) (CORPORATE SEAL) (Signature of first joint venture partner— attach evidence of authority to sign) Name (typed or printed): Second Joint Venturer Name: By: (Signature of second joint venture partner — attach evidence of authority to sign) Name (typed or printed): Title: (SEAL) (SEAL) (Each joint venture must sign. The manner of signing for each individual, partnership, and corporation that is a party to the joint venture should be in the manner indicated above.) Proposer's Business Address: I I ���� Phone No.: Sol li� Fax No.: JOySUBMITTED on WVVTF McDonald's Lift Station Rehabilitation May 2021 Hutchinson, Minnesota 0041 00 - 3 Quote Form cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of Boiler Replacement Project at City Center Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Replace city center boilers with new high efficiency condensing boilers. Boilers are 29 years -old and at the end of useful life. Energy efficiency will be gained with 98% efficient condensing boilers, as well as variable frequency drives (VFD's) on system pumps. Boilers have been identified by facility committee as needing to be replaced. City Staff recommends going with the Foster Mechanical quote of $78,230 which includes two boilers rather than three. It was decided that three boilers are not needed. BOARD ACTION REQUESTED: Approval of Boiler Replacement Project at City Center. Fiscal Impact: $ 78,230.00 Funding Source: Facilities CIP FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 78,230.00 Total City Cost: $ 78,230.00 Funding Source: Facilities CIP Remaining Cost: $ 0.00 Funding Source: N/A /F�TER ��IVIECHANICAL Phone:320-587-4003 Fax:320-587-4450 945 5th Ave. S.E. #12 Hutchinson, MN 55350 Foster Mechanical is a Minnesota Corporation Proposal 6/21/2021 Project: Boiler Replacement Location: Hutchinson City Center Submitted to: J.J. Verhey We will furnish all materials and labor to replace existing boilers with two high efficiency models with the same output BTU rating. Building load is 770,000 BTUs per original design. Included in the price: • Lochinvar FTX400N Boiler system — 2 Boilers • Remote Control Kits for mobile remote monitoring • Boilers are floor set • Boiler pumps - Grundfos • Condensate neutralizer • New low water cutoff and manual reset high limit switches • Thermometer and Gauges as needed • PVC Boiler Venting - Custom made roof cap for vent or separate penetrations through roof • Gas piping modifications • Condensate drain piping • Hydronic piping modifications 3" header — 2" piping to each boiler • Proper Demo of existing equipment • Pipe insulation 1" thick • Filling system and initial bleeding of air • Operation and Maintenance manuals • Start-up and check out of system • Permit The cost for this is: $59,800.00 The cost for Lochinvar 3 - FTX400N boilers is: $79,700.00 System pumps options — electrical cost included with each option The cost for two 3 HP Variable Frequency drives is: $4,030.00 The cost for two 3 HP Variable frequency drive with built in disconnect, and bypass is: $5,990.00 The cost for factory startup of Variable Frequency drives is: $540.00 The cost to replace system pumps with new pumps is: $7,295.00 The cost for ACI Wet to Wet Diff Pressure for pump control is: $1,210.00 Note: Expansion tank will be reused. Exclusions —the following is not included with this proposal: • Control valve/three-way valve work Per conversation this will be done no charge. Just valve cost. • Controls — by Midwest controls $3500 This proposal may be withdrawn if it is not accepted within 30 days. If you have any questions, please call. By Seth Neumann, Foster Mechanical, Inc. Accepted by Seth Neumann Foster Mechanical, Inc. 945 5th Ave S.E. # 12 Hutchinson, MN 55350 Cell 320-583-2551 seth@fostermech.com Date Date CGRPORATE MECHANICAL 14VAC Commercial/Industrial Installation ♦ Scheduled Maintenance ♦ 24 hr Service Energy Management ♦ Design Build Engineering PROPOSAL SUBMITTED TO: Jeremiah Verhey / City of Hutchinson DATE: 7-14-20 FROM: Cory Fouquette JOB NAME: City Center Boiler System Retrofit LOCATION: Hutchinson City Center III Hassan St. SE Hutchinson, MN. 55350 Thank you for the opportunity to provide you with this proposal to: Replace the existing boilers at the Hutchinson City Center with a completely new high efficient hot water heating system. This proposal is for a turn -key project including the following items; • 3 New Condensing High Efficient Boilers of same output as old boilers. • Re -piping the main piping in the boiler room to change configuration so all boilers see the same inlet water temperature. (Will help ensure all boilers do as much condensing as possible) • Acid neutralization of condensate before sending to drains. • All electrical and controls, with a control strategy that looks at status of loads as well as outdoor air temperature to determine what temperature to run the water. (This keeps boilers operating at peak efficiency) • All water, gas, and vent piping work. • Permits and engineering. • Insulation of new piping, and any patching required at existing due to project. • Owner training and O&M manuals after project completion. • System flushing and addition of corrosion inhibitor. • Cascade boiler controls for optimizing boiler efficiency. This proposal is based on work being performed during weather that allows the boiler system to be off for up to one week. Total project cost: $81,300.00 Eighty One Thousand Three Hundred Dollars and No/100 Adder Option 1; Modify heating hot water system to make variable flow. This would include the following; • Adding a variable frequency to each of the 2 main pumps • Adding a differential pressure sensor as an input to the building automation system to control pump speeds based on system differential. • Leaving the 3-3way valves at VAVs 12,14,&17, but replacing the large 3-way at AHU-1 with a 2-way. • All electrical and controls wiring, programming, graphics, and programming of VFD. Total cost for adder option 1: $11,140.00 Adder Option 2; Replace both building main hot water circulating pumps with new pumps of same capacity. Total cost for adder option 2: $9,235.00 We propose hereby to furnish material and labor- complete in accordance with above specifications for the sum of see above DOLLARS ($). ('Thousand, dollars ) All material is guaranteed to be as specified. All work to be completed in a workman like manner according do standard practices. Any alteration or deviation from above specifications involving extra cost will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Workman's Compensation Insurance. Price is firm for 30 days. AUTHORIZED SIGNATURE: ACCEPTANCE OF PROPOSAL: The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. AUTHORIZED SIGNATURE: DATE OF ACCEPTANCE: 5114 Hillsboro Avenue North ♦ New Hope, MN 55428 Phone: (763) 533-3070 ♦ Fax: (763) 533-3464 ♦ www.corporatemechanical.com cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approval of Updated Construction Management Services Fee/Cost Proposal Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff M Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Last August the City entered into a Construction Management Services Agreement with the Contegrity Group. The fee given to the City at that time was based off of a project that was estimated to cost $8 million. Now that bids have been received, there is a need to update the proposal based off of the actual project costs. Attached is a Construction Management Fee Sheet reflecting the increase in the construction budget from the original one submitted back in August of 2020. The fee has increased by $65,170. Since last August, the project grew in size and complexity and the revised budget amounts were reflected in both of Contegrity's DID and CD estimates. The fee increase affects the pre -construction amount and the construction management fee on the sheet. BOARD ACTION REQUESTED: Approval of Updated Construction Management Fee/Cost Proposal Fiscal Impact: $ 65,170.00 Funding Source: Police Station Project Fund FTE Impact: Budget Change: Yes Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A City of Hutchinson CMa Services Fee/Cost Proposal Firm Name: CONTEGRITY GROUP, INC. 8/1/2020 Revised 7-13-2021 PRE -CONSTRUCTION ESTIMATED 8 MONTH DURATION Description Quantity Unit Unit Cost Total Project Executive.1: ncip]c in Charge HRS Genera] Strperint�!ndcnt HRS Superintendent HRS Scnir+r Prujcct Mlana fcr HRS Project Mtuna Ucr HRS Ficld En Pinccr HRS Safety Director HRS Administrative Assistance HRS Estimator HRS Subtotal Preconstruction Staff Included in Fixed ].ci kkr ,Sum Fee CONSTRUCTION ESTIMATED 12 MONTH CONSTRUCTION SCHEDULE Dcscri ;0v Qwnt4v Unit Unit Cost Total Prnajeet Executive HRS same as PM ZeneraJ Snperintendent HRS NA Suporinrcndent- (Full Time) (Inefr(dex Reimbursables) 2,080 HRS 95.77 199,200.00 SenjorPrgjccI Mana ur HRS same as PM Project Managcr HRS included jn CM Fee Held En ineer (assistant rojecr mama cr) HRS included jn CM Fee Safety Director HRS included jn CM Fee Admiuistra[i e Assistance HRS included jn CM Fee Subtotal Construction StaF1 199,200.00 Construction Management Fee 225,170.00 (Based on AN ESTIMATED construction cost 1.88% (fixed lump sum fee) of $11,977,061.00) c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A SENIOR CARE Agenda Item: FACILITY LOCATED AT 710 PARK ISLAND DRIVE SW. Department: Planning LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Thriving Minds, LLC. is requesting a conditional use permit for a nursing home to provide specialized care and rehabilitation for residents suffering from various types of memory loss. The use on site will be no more intense than the existing off-street parking will accommodate. The house was used as a hospice home from 2006 — 2011 and was converted to a nursing home for residents with movement disorders in 2012 and has been vacant for the past several years. The Planning Commission asked if the facility would be doing medical treatment at the facility or if it was more rehab and nutrition oriented? The applicant stated that it is more rehab oriented. The Commission also asked how parking will be enforced. Staff noted they do periodic drive-by's for CUP compliance and would handle issues as necessary. It was also noted that sometimes issues are complaint driven and if necessary a hearing with the owner can be scheduled to address violations of the CUP. A neighbor asked if residents will have their own cars and it was noted they will not. A neighbor asked if the house will be secured and it was noted that everything is locked down and a key -card is needed to enter leave the facility. The Planning Commission voted unanimously (6-0) to recommend approval of the Conditional Use Permit request. BOARD ACTION REQUESTED: Approval of Conditional Use Permit. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15334 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A CONDITIONAL USE PERMIT FOR A SENIOR CARE FACILITY IN AN R-2 ZONING DISTRICT LOCATED AT 710 PARK ISLAND DR SW. THRIVING MINDS LLC, APPLICANT. FACTS 1. The Birchwood House, LLC are the owners of land located at 710 Park Island Dr SW, Hutchinson, Minnesota; and 2. Thriving Minds, LLC, has applied for a conditional use permit to allow a nursing home to provide care and rehab for residents with memory loss located in the R-2 zoning district; and 3. The subject property is legally described as: Lot 1, Block 1 and Outlot A, Stearns Woods 4. The property is located in the R-2 Zoning District. 5. The request for a conditional use permit is required because of Section 154.057 (C) of the Hutchinson Zoning Ordinance. 6. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the Conditional Use Permit on July 20, 2021 with the following findings and conditions: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. If the proposed nursing home use fails to start business within one year of the Conditional Use Permit being granted, the Conditional Use Permit shall be deemed null and void and a new Conditional Use Permit must be applied for. C. If the proposed nursing home use ceases to exist for more than one year, the Conditional Use Permit shall be deemed null and void and a new Conditional Use Permit must be applied for. d. In the event the use ceases to exist, the house cannot be used as a multiple family dwelling. The use must be kept a type of care facility. e. A new Conditional Use Permit will be needed if the type of care facility or use of the property were to change in the future f. Office space incidental to the on -site operation of the facility is allowed. g. Parking for the facility must be accommodated in the parking lot and /or garage of the facility. h. Parking will not be allowed on Park Island Drive for the nursing home. i. Any remodeling necessary at the facility (main floor or basement) will need a building permit and need to meet all State of Minnesota requirements for this type of facility. Findings of Fact — Resolution 15334 Conditional Use Permit 710 Park Island Dr SW 07/27/2021 Page 2 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on July 27, 2021 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. If the proposed nursing home use fails to start business within one year of the Conditional Use Permit being granted, the Conditional Use Permit shall be deemed null and void and a new Conditional Use Permit must be applied for. C. If the proposed nursing home use ceases to exist for more than one year, the Conditional Use Permit shall be deemed null and void and a new Conditional Use Permit must be applied for. d. In the event the use ceases to exist, the house cannot be used as a multiple family dwelling. The use must be kept a type of care facility. e. A new Conditional Use Permit will be needed if the type of care facility or use of the property were to change in the future f. Office space incidental to the on -site operation of the facility is allowed. g. Parking for the facility must be accommodated in the parking lot and /or garage of the facility. h. Parking will not be allowed on Park Island Drive for the nursing home. i. Any remodeling necessary at the facility (main floor or basement) will need a building permit and need to meet all State of Minnesota requirements for this type of facility. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.057 (C) of the City of Hutchinson Municipal Code. (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 1. The proposed use is desirable and will contribute to the general welfare of the neighborhood in the subject location, as the location has historically been used as a Findings of Fact — Resolution 15334 Conditional Use Permit 710 Park Island Dr SW 07/27/2021 Page 3 care facility and is a service that serves the public interest and contributes to the welfare of the community 2. The proposed building is not anticipated to have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities, and other matters affecting the public health, safety, and general welfare as the use of the property will remain very similar to the existing use of the property. 3. The proposed use will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable zoning district regulations, just as they are used today. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit to allow Thriving Minds LLC, applicant, to allow a care facility/nursing home to provide care and rehab for residents with memory loss located at 710 Park Island Dr. SW is hereby approved. Adopted by the City Council this 27th day of July, 2021. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: July 15, 2021, for July 20, 2021, Planning Commission Meeting Application: CONDITIONAL USE PERMIT TO ALLOW A NURSING HOME TO PROVIDE CARE AND REHAB FOR RESIDENTS WITH MEMORY LOSS LOCATED IN THE R-2 (MEDIUM DENSITY RESIDENTIAL) DISTRICT AT 710 PARK ISLAND DR. SW. Applicant: Thriving Minds, LLC, applicant The Birchwood House, LLC, property owner CONDITIONAL USE PERMIT — Thriving Minds, LLC. is requesting a conditional use permit for a nursing home to provide specialized care and rehabilitation for residents suffering from various types of memory loss. The use on site will be no more intense than the existing off-street parking will accommodate. The house was used as a hospice home from 2006 — 2011 and was converted to a nursing home for residents with movement disorders in 2012 and has been vacant for the past several years. " Indicates property described in this noticeco x � � } fir• `` r4 .1 wt Conditional Use Permit Thriving Minds, LLC. 710 Park Island Dr. SW Planning Commission — 7/20/21 Page 2 GENERAL INFORMATION Existing Zoning: R-2 (Medium Density Residential) Property Location: 710 Park Island Dr. S.W. Lot Size: .8 acre Existing Land Use: Previously Birchwood Hospice House. Also used as nursing home for movement disorder patients from 2012 until it closed a few years ago. Adjacent Land Use And Zoning: R-1(Single Family Residential) R-2(Medium Density Residential) Comprehensive Land Use Plan: Traditional Residential Neighborhood Zoning History: A conditional use permit was approved in 2002 for the operation of a Hospice House. The home was operated by ConnectCare from 2006 until July, 2011. In July, 2011, the home was closed and has been unoccupied. A conditional use permit was issued on August 28, 2012 for a nursing home for residents with movement disorders. Applicable Regulations: Section 154.057 and 154.004, Hutchinson City Code Analysis and Recommendation: Staff believes that the proposed application is an appropriate use for this zoning district. Approval of a conditional use permit (CUP) is required in order to allow a licensed nursing home to provide for residents with debilitating diseases located in the R-2 District. A CUP shall be granted only if evidence is presented to establish the following: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Conditional Use Permit Thriving Minds, LLC. 710 Park Island Dr. SW Planning Commission — 7/20/21 Page 3 Staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.057) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. 2. If the proposed nursing home use fails to start business within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 3. If the proposed nursing home use ceases to exist for more than one year, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 4. In the event the use ceases to exist, the house cannot be used as a multiple family dwelling. The use must be kept a type of care facility. 5. A new Conditional Use Permit will be needed if the type of care facility or use of the prorepty were to change in the future. 6. Office space incidental to the on -site operation of the facility is allowed. 7. Parking for the facility must be accommodated in the parking lot and/or garage of the facility. 8. Parking will not be allowed on Park Island Drive for the nursing home. 9. Any remodeling necessary at the facility (main floor or basement) will need a building permit and need to meet all State of Minnesota requirements for this type of facility. HUTCHINSON CITY COUNCIL ntyaf Request for Board Action 7AZ Agenda Item: Short -Term Gambling License - McLeod County Voiture 414 Department: Administration LICENSE SECTION Meeting Date: 7/27/2021 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑✓ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: McLeod County Voiture 414 has submitted a short-term gambling license application into administration for review and processing. The application is for raffles the organization is holding throughout the year of 2022. 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 McLeod County Voiture 414. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: To(` ­7 -r'-t HUTCHIHS# A CITY ON PURPOSE. 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 Apelication Type Short Term Date(s) t,Fee: $30.00 Month/Da QVear — MontheNi ti /Year Or anization Information CA-,& 14 % d 1'" v r Jj Iq ,ia c- et-4�' ;� 1p�s f10 /�e m:m. ''3 ill � ' 873 Name ,�` Phone Number Address where regular meeting are held City State Zip Federal or State ID: W — 61 7 SS '] // Day and time of meetings? l S � QtQ J e, 4 y ti � 1�7oK� h " l -7 = Yoe Is this organization organized under the laws of the State of innesota? 0 yes ❑ no How long has the organization been inexistence? How may members in the organization? What is the purpose of the organization? lyyff eS Sr%&_ s41, tS, -IL In whose custody will organization records be kept? c� n Name Phone Number Address City State zip Duly Authorized Officer of the Organization Information V-' 3���5� A l� True Name Phone Number P= j - �3 V U+ Reside ce A ddress City State Zip Date of Birth: a/ Place of Birth: e— Month/da gear I k I City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes 99ac If yes, explain: _ 8�2a21 NF 2 13 tfw- 4- 4 True Min Maine Phof7e Mfnihet -.r3-o Stc740 Date Qf 13irth: 1 7. 1 Place of Birth- Ri4ge RaVe you ex-er beenconvicted of anv I crime, other flian a tmffik offense? Q yes CIO If }rest explain., How, long have you been a member pf t1le org'anizatictn? I #I V)rk". A -4 Ph4we Number Wwe . 'kKiqtI-OR "me will he JAIWI zip Date(s) apd?or day(s) t-,aniblinge devices xvill bad used 14Qu" of the day gambling devices will be used: Ff)in ej CO AM AM Maximum number of plariq NNIJI-I prizf--s be paid in nioney or merchandise'' —�fflobe-v iyiereb4ndillie, Will refreshments be served during the time the gambling devices will be used? P�e, If yes- will a charge be made for such refreshn-kents? &&s LI 110 Game Infmiatiop l,Q,Caiion #2 IVU#W of III N?--OW"j�IIF0 gIM4* IWO kWj*aJWV Phone &tttre Jddre,vx qf1befitimi where gaine 11411 be p1qutyl QV zip Dale(s) and/or day(s) pinblinz- devices will be used; through AM AM HoqY5 of the day gambling devices, will be used-, From To V - PNI Nja.Ninjuip number of player- Willprizes be paid innioney or merchandise'? LI tnojey 1) piemliandise Will refreshments be sensed during the time the gambling device.: Nvill be. used`? LI yes LI no ifVas,hill charge be ruadc for such refreshments'' Uyes ®no C'ihl Q14t ttei:insdrt 41)) Mwtiv Or Gamihling Beriees Licee_se Page 3 43 list additional names on RTanI g' lrh�f` Pe Gar C. Title 7 0�- ve ��f ��C1 kSGs�� ✓�.Sd �e N Residence.4ddr-ers jo Citi, State Zip CJ d n- e s'eoiiA 4:r-- �2 ft � _ Residence Address 1 GYt g� Citi, t s g 2 to-- State _R Zip -j�7-z fe,z44A , .lecture. Title .r3 0 '2 xd .s /; E, Ie� or mn. Residence Address 0tv State I Officers or Other Persons Paid for Services Information (if necessat t, list additional names on separate sheet) I Marc — k, kcsidersca. ekyegs Batt, Slate Zip - Nowe - - Title -- Residence 4ddpess Cdivv, State Zip 1W a TWO Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulation4 governing the operation and utie of ga;nbling devices (as outlined in City of Hutchinson Ordinance, 114.20 and Minnesota Statutes Chapter 349r Gambling Manager yes ❑ no �✓ Authorized Officer tw s no Iktdpial Initial I declare that the. information 1. have provided on this application is truthful, and I authorize the City of Hutchinson to -investigate the information submitted. Also, 1 have received from the City of Hutchinson a copy of the City Ordinance No. I _t4.20 gelatin" to gambling and I will familiarize Myself with the contents thereof. a-QU4A---I of authorized o cer ©f p ganizotion Signature ql gamu lin,- mi-Inager of Organization Internal Use Onl City Council Q approved Q denied Notes: - a? L Date - cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Temporary Noise Variance / Crow River SnoPros Summer Outing Agenda Item: Department: Police Services LICENSE SECTION Meeting Date: 7/27/2021 Application Complete Yes 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 OF AGENDA ITEM: McLeod County SnoPros request a temporary noise ordinance variance during their summer outing being held at the McLeod County Fairgrounds. Primary Contact: Brian Anderson 320-221-5889 Event Location: McLeod County Fairgrounds Event Date/Times: August 13th and 14th All day event There will be live music both nights and the club is requesting a temporary noise ordinance variance during that time. The band will stop playing on both nights by 11:00 pm. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 0.00 Funding Source: Police Budget FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Good afternoon, My name is Brian Anderson I am the Crow River Sno Pros President, we are holding a summer outing at the Mc McLeod County Fairgrounds August 13tn, 14tn This is an appreciation event held for past members, current members and landowners that allow us to cross their land with our Trails. We will have live music Friday night and Saturday and are seeking permission to extend quiet hours until 11:00 PM both nights, We will be camping and serving food, music will be played each night until 10:00 unless we receive permission to 11:00 PM, public is welcome after meals are served. I really hope you will take into consideration to extend the City Ordinance for quiet hours until 11:00 PM for us, Any question please let me know Brian Anderson 320-221-5889 Cell 320-455-4010 Work Blandersonl@mmm.com email CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 7/14/21- 7/27/21 Check Date ------------------ 07/16/2021 Check ---------------- EFT1501 Vendor Name --------------------------------------------------------------- EFTPS Description ---------------------------------------------------------------------------------------------------------- Payroll6/27/21-7/10/21 Amount ------------------------- 83,522.25 07/16/2021 EFT1402 Child Support Payroll 6/27/21 - 7/10/21 415.78 07/16/2021 EFT1503 MN Dept of Revenue Payroll 6/27/21 - 7/10/21 15,541.01 07/16/2021 EFT1504 Provident Life Ins Payroll 6/27/21- 7/10/21 555.80 07/16/2021 EFT1505 PERA Payroll 6/27/21 - 7/10/21 56,483.20 07/16/2021 EFT1506 Further HSA Payroll 6/27/21 - 7/10/21 13,923.84 07/16/2021 EFT1507 Mission Square Payroll 6/27/21 - 7/10/21 3,666.59 07/16/2021 EFT1508 VOYA Payroll 6/27/21 - 7/10/21 460.00 07/16/2021 EFT1509 MNDCP Payroll 6/27/21- 7/10/21 350.00 07/16/2021 215970 Payroll Check Payroll 6/27/21 - 7/10/21 463.48 07/16/2021 215971 MNPEA Payroll 6/27/21 - 7/10/21 663.00 07/16/2021 215972 Unum Life Insurance Payroll 6/27/21- 7/10/21 1,198.26 07/16/2021 215973 LELS Payroll 6/27/21 - 7/10/21 317.50 07/16/2021 215974 HART Payroll 6/27/21 - 7/10/21 611.06 07/27/2021 215975 A R ENGH HEATING & AIR CONDITIONING A/C REPAIR - HATS 3,775.63 07/27/2021 215976 ACE HARDWARE -1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 782.44 07/27/2021 215977 VOID VOIDED CHECK - 07/27/2021 215978 ALTERNATIVE BUSINESS FURNITURE MESH HIGH BACK CHAIR - ENG 163.30 07/27/2021 215979 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 182.88 07/27/2021 215980 ANIMAL MEDICAL CENTER ON CROW RIVER JUNE PROCESSING/BOARDING FEES - POLICE 964.94 07/27/2021 215981 ANTIL, BARBARA REFUND: CAMPGROUND RESERVATION - PARKS 100.00 07/27/2021 1215982 ARAMARK 7/12 SUPPLIES & SERVICE - LIQUOR HUTCH 171.76 07/27/2021 1215983 ARROWHEAD FORENSICS EVIDENCE BAGS, TENTS W/ SCALE - POLICE 239.72 07/27/2021 215984 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 486.65 07/27/2021 215985 AUTO VALUE - GLENCOE REPAYMENT OF CREDIT ISSUED TWICE - HATS 9.99 07/27/2021 215986 AUTO-CHLOR SYSTEM JUNE DISHWASHER SERVICE - SR DIN 220.00 07/27/2021 215987 BACHMAN'S TREES -STREETS 449.04 07/27/2021 215988 BARGEN INC VARIOUS CRACK REPAIRS - STREETS 6,010.00 07/27/2021 215989 BAUER BUILT INC TIRES- MULTIPLE DEPTS 1,997.26 07/27/2021 215990 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 2,541.20 07/27/2021 215991 BENEFIT EXTRAS INC JUNE COBRA/RETIRE BILLING 43.50 07/27/2021 215992 BENNETT VENTURES INC KEYS & LABOR - EDA 482.83 07/27/2021 215993 BENNY'S MEAT MARKET CONCESSION SUPPLIES FOR SOFTBALL TOURNAMENT 2,928.77 07/27/2021 215994 BERNICK'S CONCESSION SUPPLIES - REC 480.48 07/27/2021 215995 BERTRAM ASPHALT COMPANY, INC. 2021 STREET REPAIRS 69,190.15 07/27/2021 215996 BFG SUPPLY CO MWP PERLITE COARSE - COMPOST 7,474.87 07/27/2021 215997 BLACK GOLD ENVIRONMENTAL SERVICES BURNER CLEAN & TEST FIRE - HATS 527.50 07/27/2021 215998 BLACK HILLS AMMUNITION AMMO - POLICE 317.00 07/27/2021 215999 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 7,342.41 07/27/2021 216000 VOID VOIDED CHECK - 07/27/2021 216001 BROCK WHITE COMPANY LLC LIMESTONE TUBES, BACKER RODS - LIBRARY 142.20 07/27/2021 216002 BRUNKHORST, AUBREY REIMB: SAFETY FOOTWEAR - PARKS 149.99 07/27/2021 216003 BUREAU OF CRIM. APPREHENSION CJDN ACCESS FEES 4/1- 6/30-21- POLICE 390.00 07/27/2021 216004 BW WELDING COLLAR WRENCH FABRICATION - WWTP 95.00 07/27/2021 216005 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 63,260.87 07/27/2021 216006 CANNON RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 581.40 07/27/2021 216007 CARD SERVICES SUPPLIES - MULTIPLE DEPTS 97.99 07/27/2021 216008 CARLSON, MARY LOU UB refund for account: 1-820-0650-6-00 17.59 07/27/2021 216009 CENTRAL HYDRAULICS EQUIPMENT PARTS - HATS 53.64 07/27/2021 216010 CENTRAL MCGOWAN ACETYLENE, HIGH PRESSURE - HATS 122.40 07/27/2021 216011 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 184.01 07/27/2021 216012 CLARKE ENVIRONMENTAL MOSQUITO MGMT JUNE ULV TREATMENT, LIGHT TRAPS 19,200.00 07/27/2021 216013 CONTEGRITY GROUP NEW POLICE FACILITY FEES 19,835.69 07/27/2021 216014 CORNER POST EROSION CONTROL HYDROMULCH: SCHOOL ROAD NORTH - STREETS 690.00 07/27/2021 216015 CREEKSIDE SOILS BROWN MULCH - CITY CTR 166.60 07/27/2021 216016 CROW RIVER PRESS INC 2021 SCULPTURE STROLL BROCHURES - PUBLIC ARTS 365.89 07/27/2021 216017 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 1,503.60 07/27/2021 216018 CUMMINS NPOWER LLC REPAIR MULTIPLE UNITS - POLICE 1,431.34 07/27/2021 216019 DATAWORKS PLUS LLC 9/1/21- 8/31/22 MAINTENANCE FEE - POLICE 183.96 07/27/2021 216020 DAVE'S PALLET SERVICE PALLETS - COMPOST 3,428.00 07/27/2021 216021 DENNIS EISCHENS CONSTRUCTION HRA TIF: BETSY PRICE 10,000.00 07/27/2021 216022 DIRECT PLASTICS BAG FILM -COMPOST 112,640.34 07/27/2021 216023 EATON CORPORATION SINGLE PHASE FERRUPS - POLICE 4,322.00 07/27/2021 216024 ECOLAB PEST ELIMINATION 7/13 PEST CONTROL - POLICE 64.93 07/27/2021 216025 EHLERS & ASSOCIATES INC TAX INCREMENT DIST 4-16 EXPANSION - EDA 9,000.00 07/27/2021 216026 ELECTRO WATCHMAN UPGRADES, MONITORING SERVICES - MULTIPLE DEPTS 4,564.63 07/27/2021 216027 FARM -RITE EQUIPMENT WINDOW, SEAL - PARKS 270.89 07/27/2021 216028 FASTENAL COMPANY SPRAY PAINT- WATER 10.33 07/27/2021 216029 FERGUSON WATERWORKS #2518 HYDRANT WRENCH - WATER 273.05 07/27/2021 216030 FIRST ADVANTAGE LNS OCC HEALTH SOLU EMPLOYEE DRUG TESTING 627.21 07/27/2021 216031 FLOORCOAT MIDWEST, LLC CURTAIN GROUT- WWTP 31,933.00 07/27/2021 216032 FOSTER MECHANICAL HVAC REPAIR & MAINT CHECKS - MULTIPLE DEPTS 1,123.50 07/27/2021 216033 FOSTER, STACY REFUND: TWINS GAME - REC 55.00 07/27/2021 216034 FRITSCH, KATELYN REFUND: CANCELLED SKATE SCHOOL - ARENA 14.00 07/27/2021 216035 FURTHER July 2021 HSA/FSA Adm. Fees 341.30 07/27/2021 1216036 1 FUZE LOGISTICS SERVICES USA INC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 1,000.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 7/14/21- 7/27/21 Check Date ------------------ 07/27/2021 Check ---------------- 216037 Vendor Name --------------------------------------------------------------- GRAINGER Description ---------------------------------------------------------------------------------------------------------- REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS Amount ------------------------- 442.19 07/27/2021 216038 GRANDVIEW VALLEY WINERY COST OF GOODS SOLD - LIQUOR HUTCH 396.00 07/27/2021 216039 HANSEN GRAVEL INC. SAND & CONBIT- PARKS 115.00 07/27/2021 216040 HAWKINS INC CHEMICALS & SUPPLIES - WATER 6,234.41 07/27/2021 216041 HCVN-TV 2ND QTR NUVERA FRANCHISE FEES 17,231.82 07/27/2021 216042 HILLYARD / HUTCHINSON OPERATING SUPPLIES - MULTIPLE DEPTS 421.97 07/27/2021 216043 HJERPE CONTRACTING REPAIR WATER MAIN BREAK - MILWAUKEE AVE 4,286.43 07/27/2021 216044 HOLT MOTORS INC 2012 F550: DOT INSPECTION - PARKS 876.40 07/27/2021 216045 HUTCHINSON CO-OP JUNE FUEL & SERVICES - MULTIPLE DEPTS 28,323.56 07/27/2021 216046 HUTCHINSON HRA TIF: BETSY PRICE 1,000.00 07/27/2021 216047 HUTCHINSON UTILITIES UTILITIES 6/1 - 7/1-21 111,342.86 07/27/2021 216048 HUTCHINSON WHOLESALE #1550 EQUIPMENT PARTS - MULTIPLE DEPTS 105.04 07/27/2021 216049 HUTCHINSON WHOLESALE #1551 EQIUPMENT PARTS - COMPOST 468.99 07/27/2021 216050 HUTCHINSON, CITY OF JUN 2021 STORM DRAINAGE - MULTIPLE DEPTS 6,839.20 07/27/2021 216051 HUTCHINSON, CITY OF REPLENISH ATM 4,000.00 07/27/2021 216052 IDEAL SERVICE INC TROUBLESHOOT PERMEATE PUMP - WWTP 490.00 07/27/2021 216053 INSELMANN, ERIC REIMB: ICE FOR COOLERS @ FIRE CALL 23.16 07/27/2021 216054 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES - HATS 107.95 07/27/2021 216055 J & B PALLET, LLC PALLETS - COMPOST 8,878.40 07/27/2021 216056 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 21,774.65 07/27/2021 216057 K & S MILLWRIGHTS, INC. REMOVAL OF AMASSED GRIT IN WEST OX DITCH - WWTP 16,652.33 07/27/2021 216058 KAHL, DENNIS MOWING MULTIPLE RESIDENTS - STORM WATER 460.00 07/27/2021 216059 KENNA, SANDRA REFUND: TWINS GAME - REC 25.00 07/27/2021 216060 KEY GOVERNMENT FINANCE INC. 2021 PAYMENT FOR ROTOCHOPPER LEASE - COMPOST 87,832.75 07/27/2021 216061 KOEPP, NATALIE REFUND: CANCELLED RESERVATION - PARKS 95.00 07/27/2021 216062 KOHLS SWEEPING SERVICE JUNESERVICES- COMPOST 3,865.00 07/27/2021 216063 KRANZ LAWN & POWER EQUIPMENT PARTS - PARKS 210.97 07/27/2021 216064 KRIS ENGINEERING LOADERPARTS- COMPOST 1,048.28 07/27/2021 216065 KRUEGER, RON REFUND: CAMPGROUND RESERVATION - PARKS 130.00 07/27/2021 216066 KRUGGEL, ALISHA REFUND: SWIM LESSON - REC 40.00 07/27/2021 216067 KWIK TRIP CONCESSION SUPPLIES - REC & WATERPARK 3,209.10 07/27/2021 216068 L & P SUPPLY CO CREEKSIDE GATOR RENTALS, MISC SUPPLIES 2,429.96 07/27/2021 216069 LAKE SUPERIOR COLLEGE MNDOT SPEC BOOK, STANDARD SPECS FOR CONST - ENG 130.00 07/27/2021 216070 LEAGUE OF MN CITIES -INS TRUST 3RD QTR INSURANCE PREMIUMS 73,165.00 07/27/2021 216071 LIQUOR HUTCH SUPPLIES- WATERPARK 129.42 07/27/2021 216072 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 38,133.82 07/27/2021 216073 LOGIS JULY APPL SUP-GIS BASE 7,488.00 07/27/2021 216074 LYNDE & MCLEOD INC. JUNE YARDWASTE - COMPOST 477.86 07/27/2021 216075 M-R SIGN SIGNS & POSTS - STREETS 2,444.79 07/27/2021 216076 MACKEDANZ, TONY REIMB: SUPPLIES FOR FIRE CALL 72.64 07/27/2021 216077 MARTINSON, ANN REFUND: CANCELLED RESERVATION - PARKS 45.00 07/27/2021 216078 MAYLAND, AMANDA REFUND: SWIM LESSONS - REC 190.00 07/27/2021 216079 MAYTAG LAUNDRY & CAR WASH 6/8 - 6/28 LAUNDRY SERVICES - EV CTR 390.84 07/27/2021 216080 MCGRAW, MICHELLE REFUND: SHELTER RENTAL 7/17 @ RIVERSIDE - PARKS 45.00 07/27/2021 216081 MCKIMM MILK TRANSIT CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 471.78 07/27/2021 216082 MCLEOD COUNTY RECORDER MORTGAGE MTK ENTERPRISES - EDA 391.00 07/27/2021 216083 MEDICA AUGUST MEDICAL INSURANCE 151,330.68 07/27/2021 216084 MEEKER WASHED SAND & GRAVEL SAND - COMPOST 3,888.36 07/27/2021 216085 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 400.21 07/27/2021 216086 MENESES, SILVIA REFUND: CANCELLED SWIM LEVEL 3 - REC 40.00 07/27/2021 216087 MEYER LABORATORY INC BOWL CLEANER - PARKS 302.50 07/27/2021 216088 MINI BIFF VARIOUS RENTALS- PARKS 559.33 07/27/2021 216089 MINNESOTA SAFETY COUNCIL AED & SUPPLIES FOR ARENA 982.81 07/27/2021 216090 MINNESOTA STATE BAR ASSOC MARC SEBORA MEMBERSHIP 7/1/21- 6/30/22 324.00 07/27/2021 216091 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 562.25 07/27/2021 216092 MN DEPT OF LABOR & INDUSTRY 2ND QTR 2021 STATE SURCHARGE - BLDG INSPEC 5,337.01 07/27/2021 216093 MORGAN CREEK VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 558.00 07/27/2021 216094 NORTH AMERICAN SAFETY INC GLOVES - PARKS 30.97 07/27/2021 216095 NORTHERN STATES SUPPLY INC NUTS, SCREWS, PLOWBOLTS, WASHERS - HATS 96.06 07/27/2021 216096 NUSS TRUCK& EQUIPMENT CABLE -STREETS 72.76 07/27/2021 216097 O'REILLY AUTO PARTS EQUIPMENT PARTS & SUPPLIES - PARKS 388.36 07/27/2021 216098 OFFICE DEPOT PAPER -STREETS 36.15 07/27/2021 216099 OLSON, SHIRLEY REFUND: DUPLICATE REGISTRATION - COMM ED 40.00 07/27/2021 216100 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,900.50 07/27/2021 216101 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 726.72 07/27/2021 216102 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 24,473.68 07/27/2021 216103 PLIESEIS, TROY REFUND: CANCELLED SHELTER - PARKS 50.00 07/27/2021 216104 PREMIUM WATERS 5 GALLONS - PARKS 52.74 07/27/2021 216105 PRO AUTO MN INC. 2013 CARAVAN: A/C REPAIR - IT 1,016.70 07/27/2021 216106 QUILL CORP PAPER, AIR DUSTERS - POLICE 80.96 07/27/2021 216107 QUINLIVAN & HUGHES P.A. LEGAL SERVICES THRU 5/31/21 5,383.40 07/27/2021 216108 RAMSTAD TECHNOLOGIES LLC OTDR TEST FIBER FROM OFFICE, BLDG 30, BLDG 55 - WWTP 420.00 07/27/2021 216109 RED BULL DISTRIBUTION COMPANY, INC. COST OF GOODS SOLD - LIQUOR HUTCH 170.00 07/27/2021 216110 REFLECTIVE APPAREL FACTORY INC BOMBER JACKETS, T-SHIRTS - STREETS 351.66 07/27/2021 216111 REVIER WELDING WELDING SERVICES - HATS 848.98 07/27/2021 1216112 IROSSMAN, NAOMI UB refund for account: 2-605-2050-8-03 80.22 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 7/14/21- 7/27/21 Check Date ------------------ 07/27/2021 Check ---------------- 216113 Vendor Name --------------------------------------------------------------- RUNNING'S SUPPLY Description ---------------------------------------------------------------------------------------------------------- REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS Amount ------------------------- 745.87 07/27/2021 216114 SAM'S TIRE SERVICE PATROL #2: TIRES - POLICE 584.04 07/27/2021 216115 SCHUFT, KRISTEN REFUND: SWIM LESSON - REC 45.00 07/27/2021 216116 SEPPELT, MILES REIMB: MEALS WITH PROF, LAWNMOWER - EDA 280.64 07/27/2021 216117 SERVICEMASTER PROFESSIONAL SERVICES FIRE CLEANUP SERVICES - EDA 37,023.96 07/27/2021 216118 SHAW, KAREN JUNE YOGA CLASSES - SR CTR 120.00 07/27/2021 216119 SHORT-ELLIOT-HENDRICKSON, INC WATER & SEWER RATE STUDY: THRU 5/31/21 246.00 07/27/2021 216120 SIBLEY COUNTY SHERIFF'S OFFICE CR-20-1359 SUBPOENA - LEGAL 50.00 07/27/2021 216121 SIRCHIE ACQUISITION COMPANY, LLC TESTS, FENTANYL REAGENT - POLICE 166.15 07/27/2021 216122 SKYLINE AGGREGATE BITCON MIX -PARKS 207.68 07/27/2021 216123 SOLUSLED LIGHT BULBS/FIXTURES - ARENA 984.00 07/27/2021 216124 SORENSEN'S SALES & RENTALS HYDRAULIC HAMMER RENTAL - PARKS 125.00 07/27/2021 216125 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 14,456.16 07/27/2021 216126 SOUTHWEST CORRIDOR TRANS COALITION 2021 DUES - ENG 100.00 07/27/2021 216127 SRF CONSULTING GROUP S GRADE RD @ DALE ST INTERSECTION IMPRV - ENG 1,535.02 07/27/2021 216128 STAPLES ADVANTAGE OFFICE & OPERATING SUPPLIES - MULTIPLE DEPTS 441.53 07/27/2021 216129 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 9,200.00 07/27/2021 216130 STREICHER'S PANTS - POLICE 189.98 07/27/2021 216131 SUSTEEN INC RENEWAL FOR DPDESKTOP - POLICE 1,495.00 07/27/2021 216132 SYSCO WESTERN MN CONCESSION SUPPLIES - REC & WATERPARK 2,579.67 07/27/2021 216133 TALL SALES COMPANY JUNE 2021 CREEKSIDE SALES COMMISSIONS 10,420.25 07/27/2021 216134 THOMPSON EXCAVATING LLC BLACK DIRT- COMPOST 1,450.00 07/27/2021 216135 THOMSON REUTERS-WEST JULY LIBRARY PLAN CHARGES - MULTIPLE DEPTS 205.47 07/27/2021 216136 TIMBERWALL LANDSCAPE & MASONRY LANDSCAPE SUPPLIES - PARKS 1,071.39 07/27/2021 216137 UNUM LIFE INSURANCE CO OF AMERICA AUGUST LIFE INSURANCE 2,963.22 07/27/2021 216138 USA BLUE BOOK MANGANESE REAGENT - WATER 81.76 07/27/2021 216139 VERIZON WIRELESS JUN 03 -JUL 02 PHONE SERVICES - POLICE 39.27 07/27/2021 216140 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 17,397.75 07/27/2021 216141 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 476.85 07/27/2021 216142 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 1,816.55 07/27/2021 216143 VIVID IMAGE FORMSTACK EDITS & WEBSITE UPDATES - EDA 90.50 07/27/2021 216144 WASTE MANAGEMENT OF WI -MN REFUSE DISPOSAL FEES TO LANDFILL 16,661.96 07/27/2021 216145 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 1,972.40 07/27/2021 216146 WELKER, DARREL UB refund for account: 1-575-9380-0-01 21.72 07/27/2021 216147 WENDLANDT, JUSTIN REIMB: MARKER LIGHT BULB FOR LADDER 1- FIRE 5.92 07/27/2021 216148 WEST CENTRAL SANITATION INC. JUNE RESIDENTIAL REFUSE 50,939.36 07/27/2021 216149 WICKLUND, STEVE REFUND: TWINS GAME - REC 25.00 07/27/2021 216150 WILSON'S NURSERY INC TREES -STREETS 505.00 07/27/2021 216151 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 2,909.83 07/27/2021 216152 WL HALL CO INTERIOR SERVICE EXPANDABLE REPAIR - EV CTR 707.50 07/27/2021 216153 WM MUELLER & SONS ASPHALT - STREETS 2,625.84 07/27/2021 216154 ZIP'S DIESEL SERVICE SOLENOIDSTOP- CEMETERY 102.98 Total - Check Disbursements: I I $ 1,409,697.24 Department Purchasing Card Activity - June 2021 Date Dept Vendor Name Description Amount 06/01/2021 PLANNING AMAZON Braille restroom sign 17.58 06/02/2021 PLANNING WM SUPERCENTER Cleaning supplies 12.88 06/02/2021 PLANNING MINNESOTA SAFETY COUNCIL Workplace intruder training forJJ 185.00 06/04/2021 PLANNING KYLE SWITCH PLATES Switch plate 23.61 06/21/20211 PLANNING CASH WISE FOODS Peanut oil for sewer drain smell 17.99 06/01/2021 PARK AND REC AMAZON Step Ladder 49.00 06/01/2021 PARK AND REC AMAZON Admit One Ticket Rolls 20.29 06/01/2021 PARK AND REC AMAZON Scrub Sponge 12.99 06/01/2021 PARK AND REC AMAZON Writing Pads 9.80 06/07/2021 PARK AND REC GREEN PAPER PRODUCTS Cups for Concession Stand 129.79 06/07/2021 PARK AND REC WALMART.COM Concessions Supplies 282.86 06/07/20211 PARK AND REC WALMART.COM Pickles, Frozen Fruit, Ice Cream, Smoothie Mix 149.56 06/08/2021 PARK AND REC THE WEBSTAURANT STORE INC Blue Raspberry Slushy Syrup, Cherry Slushy Syrup 530.00 06/08/2021 PARK AND REC THE WEBSTAURANT STORE INC Blue Raspberry Slushy Syrup, Cherry Slushy Syrup 529.58 06/08/2021 PARK AND REC WALMART.COM Difference Charge from previous order on 6-6-2021 0.38 06/08/2021 PARK AND REC AMAZON Whirl Butter 23.48 06/08/2021 PARK AND REC AMAZON Trash Bags, Exam Gloves 117.97 06/09/2021 PARK AND REC WALMART.COM Concessions Supplies 213.22 06/10/20211 PARK AND REC ALDI Frozen Strawberries, Yogurt 134.15 06/10/2021 PARK AND REC WALMART.COM Almond Milk, Ice Cream 42.48 06/10/2021 PARK AND REC INTERNATIONAL PLASTICS Ice Bagger Dispenser 119.18 06/11/2021 PARK AND REC WHENIWORK.COM Employee Scheduling Software 112.00 06/11/2021 PARK AND REC GREEN PAPER PRODUCTS Cups, Lids, Straws 752.00 06/11/2021 PARK AND REC WALMART.COM Almond Milk, Frozen Fruit, Yogurt 135.89 06/11/2021 PARK AND REC WALMART.COM Frozen Fruit, Almond Milk 207.47 06/11/20211 PARK AND REC AMAZON Airhead Candy, Milk Boxes, Chips 173.00 06/11/2021 PARK AND REC AMAZON Professional Blender 77.30 06/11/2021 PARK AND REC AMAZON Airhead Candy, Milk Boxes, Chips 80.64 06/14/2021 PARK AND REC WALMART.COM Propel Packets, Bottled Water, Chicken Bites, Hot Dog Buns 37.60 06/14/2021 PARK AND REC WALMART.COM Concessions Supplies 77.49 06/14/2021 PARK AND REC AMAZON Assorted Candy 108.90 06/14/2021 PARK AND REC AMAZON Dry Erase Markers 37.82 06/14/2021 PARK AND REC WALMART.COM Concessions Supplies 33.39 06/14/2021 PARK AND REC AMAZON Ice Bags 19.98 06/14/2021 PARK AND REC AMAZON Pixy Stick Candy 23.99 06/15/2021 PARK AND REC WALMART.COM Hot Dogs, Strawberries, Lemonade 127.44 06/15/2021 PARK AND REC AMAZON Measuring Cups and Spoons 11.99 06/15/2021 PARK AND REC AMAZON Tortilla Chips, Airheads Candy 109.92 06/15/2021 PARK AND REC AMAZON Beef Jerky 70.00 06/15/2021 PARK AND REC AMAZON Beef Jerky 73.70 06/16/2021 PARK AND REC WALMART.COM Pre -Mixed Juice 23.50 06/17/2021 PARK AND REC AMAZON Disposable Forks 11.99 06/18/2021 PARK AND REC WALMART.COM Pre- Mixed Juice 18.55 06/21/2021 PARK AND REC ALDI Paper Bags, Pineapple Chunks, Blueberries, Grapes, Strawberries, Cantaloupe 10.11 06/21/2021 PARK AND REC AMAZON Sporks 30.58 06/22/2021 PARK AND REC WALMART.COM Popsicles, Snickers Ice Cream, Oreo Ice Cream, Pineapple Chunks 174.29 06/24/2021 PARK AND REC AMAZON Closed Sign 18.65 06/24/2021 PARK AND REC THE WEBSTAURANT STORE INC Credit for previous order (45.00) 06/28/2021 PARK AND REC WALMART.COM String Cheese, Pineapple Chunks 41.76 06/28/2021 PARK AND REC AMAZON Airheads Candy, Chips, Brownie Singles, Skittles, Goldfish 399.99 06/28/2021 PARK AND REC PICKLEBALLCENTRAL Pickleball Nets 1,067.93 06/17/2021 CREEKSIDE SPS COMMERCE May 2021 SPS fees for UH and Bomgaars 295.60 06/15/2021 FINANCE AMAZON DMV - automatic stapler 30.74 06/15/2021 FINANCE AMAZON City Center - Writing pads 8.99 06/21/2021 FINANCE GOUT FINANCE OFFICERS ASSN - GFOA 2021 GFOA award application fee 460.00 06/28/2021 FINANCE AMAZON City Center - 12-pack pens 13.36 06/28/2021 FINANCE AMAZON City Center - document binding rings 9.88 06/01/2021 LIQUOR HUTCH FACEBOOK Facebook advertising 45.83 06/09/2021 LIQUOR HUTCH MENARDS HUTCHINSON Replacement shop vac and paper towels 122.63 06/10/2021 LIQUOR HUTCH AMAZON Replacement ink cartridge 36.67 06/14/2021 LIQUOR HUTCH ENTERTAINING ESSENTIALS Cost of goods misc items for resale 370.52 06/14/2021 LIQUOR HUTCH AMAZON Replacement ink cartridge 70.00 06/14/2021 LIQUOR HUTCH TRUE BRANDS Cost of goods misc items for resale 275.34 06/16/2021 LIQUOR HUTCH RITE INC Cloudretailer monthly POS maintenance fee 267.19 06/23/2021 LIQUOR HUTCH EIG CONSTANTCONTACT.COM Email blast advertising 70.00 06/24/2021 LIQUOR HUTCH RITE INC Ecommerce annual renewal fee 2,308.50 06/24/2021 LIQUOR HUTCH RITE INC Gift Cards 725.39 06/25/2021 LIQUOR HUTCH ACE HARDWARE -1315 Replacement extension cord 2.99 06/04/2021 PUBLIC WORKS MWOA MWOA Conference Registration 275.00 06/07/2021 PUBLIC WORKS DAS MANUFACTURING INC Catch basin markers 2,038.72 06/09/2021 PUBLIC WORKS AVISTA Foulant analysis 773.00 06/10/2021 PUBLIC WORKS OWPSACSTATE Apprenticeship Training- D Paulson 167.00 06/14/2021 PUBLIC WORKS ARGCO Grooved Concentric Reducer 175.88 06/14/2021 PUBLIC WORKS EBAY 12" Cap grooved pipe fitting 45.99 06/21/2021 PUBLIC WORKS PVC FITTINGS ONLINE Pvc elbows 233.77 06/21/2021 PUBLIC WORKS HAYES INSTRUMENT CO Staking Supplies 133.78 06/22/20211 PUBLIC WORKS I UNITED-STATES-FLAG.COM Flags for WWTP Admin Building 120.28 Department Purchasing Card Activity - June 2021 Date Dept Vendor Name Description Amount 06/23/2021 PUBLIC WORKS HACH COMPANY Lab Testing Materials 443.09 06/28/2021 PUBLIC WORKS KEYSTONEPES Insecticide Fungicide 362.76 06/28/2021 PUBLIC WORKS MINNESOTA POLLUTION CONTROLAGENCY MPCA Permit -L10 400.00 06/28/2021 PUBLIC WORKS MINNESOTA POLLUTION CONTROLAGENCY MPCA Permit -L10 9.96 06/25/2021 ADMIN CGMC CGMC Summer Conference Registration 175.00 06/28/2021 ADMIN ARROWWOOD RESORT& CONFERENCE CTR Hotel Registration for CGMC Summer Conference 100.00 06/01/2021 EDA JIMMY JOHNS Sandwiches for meeting 100.10 06/11/2021 EDA LOGMEIN GOTOMEETING GoToMeeting annual subscription 155.34 06/11/2021 EDA ECONOMIC DEVELOPMENT ASSN OF MN Webinar fee 10.00 06/17/2021 EDA SUBWAY Lunches for Finance Team meeting 78.26 06/21/2021 EDA TOWN & COUNTRY TIRE Repair of lawnmower tire 24.04 06/23/20211 EDA WM SUPERCENTER Cutlary napkins plates for board meetings 17.91 06/25/2021 EDA JIMMYS PIZZA Lunches for EDA board meeting 71.96 06/01/2021 POLICE ACTION TARGETS Range Targets 189.03 06/01/2021 POLICE AMAZON Hard drive 74.58 06/07/2021 POLICE AMAZON Notebooks 23.72 06/08/2021 POLICE NTOA Kilian NTOA membership 35.00 06/10/2021 POLICE NTOA B Erlandson NTOA membership 35.00 06/16/20211 POLICE MISSION CRITICAL CONCEPTS, LLC Mielke Bergmann basic swat 1,750.00 06/16/2021 POLICE AMAZON Lanyard clips 11.99 06/16/2021 POLICE POST BOARD LICENSING POST License renewal 450.00 06/21/2021 POLICE MISSION CRITICAL CONCEPTS, LLC Hemling Salazar basic swat 1,750.00 06/04/2021 FIRE WALGREENS Truck picture developing 34.43 06/14/2021 FIRE CASH WISE FOODS Cases of water and gatorade for fires 68.86 06/14/2021 FIRE CASH WISE FOODS Uniform dry cleaning 5.98 06/21/2021 FIRE CASH WISE FOODS Water Carnival parade candy 192.50 06/23/2021 FIRE A H STOCK MANUFACTURING Gaskets for Tanker 6 dump valves 61.41 06/25/2021 FIRE WARRIOR FIRE EQUIPMENT Hydrant tool bags 195.00 06/25/2021 FIRE SPEEDWAY Truck committee new truck visit to factory 61.89 06/25/2021 FIRE BANNER FIRE EQUIPMENT Storz lock kit 61.06 06/28/2021 FIRE CASH WISE FOODS Gatorade, donuts, bananas, muffins 156.43 06/28/2021 FIRE DOMINO'S PIZZA 6 pizzas +tip for live house burn by Meeker County 59.48 06/01/2021 IT AMAZON Toughbook DC charger 29.39 06/03/2021 IT AMAZON Phone cords for Motor Vehicle 19.80 06/04/2021 IT BESTBUY Web cam for Mary 69.99 06/25/2021 IT AMAZON Toner for Sara 120.89 06/28/2021 IT AMAZON Scanner for Eric Levine 871.35 06/29/2021 IT LOGMEIN GOTOMEETING Toll -Free & Call Me Flat Rate Charge 10.79 Total -P-Cards: I I$ 24,008.70 cR HUTCHINSON CITY COUNCIL RUT"WKINSON Request for Board Action A CITY ON PURPOSE. Summary Review and Approval of the 2020 Audited Comprehensive Annual Agenda Item: Financial Report Department: Finance LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Justin Juergensen Agenda Item Type: Presenter: Layne Kockelman Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Layne Kockelman, audit manager of the accounting firm Abdo Eick & Meyers, will present a summary review of the City's 2020 annual financial report. A more detailed review will take place at the 4:30pm council workshop prior to the council meeting. Summary financial statements will be printed in the July 28th edition of the Hutchinson Leader and an electronic copy of the audited financial report will be available on the City website. A hard copy of the financial report will be available to the public at the Hutchinson public library as well as the City Center in the near future. BOARD ACTION REQUESTED: Approve the 2020 comprehensive annual financial report. 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 c� HUTCHINSON CITY COUNCIL KJT'�HINSON Request for Board Action A CITY ON PURPOSE. Resolution 15333 Authorizing Issuance of $14,155,000 General Obligation Bonds, Agenda Item: Series 2021A Department: Finance LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Nick Anhut from Ehlers will review the bids received for the 2021 bond issuance. The new debt, with an estimated par value of $14,155,000 will finance the following 2021 projects: $2,060,000 - G.O. Special Assessment Improvement Bonds (our typical type of bonding) 530,000 - G.O. Tax Abatement Bonds - Hwy 7 W / Montana Street pedestrian crossing system - Jefferson Street extension 4,065,000 - G.O. Wastewater Revenue Bonds (Headworks project at the WWTP) 7,500,000 - G.O. CIP Bonds (new Police Facility) - This is partial bonding need. We will issue additional bonds in early 2022 for the balance of the project The debt service for the G.O. Wateewater Revenue bonds will be paid by operating revenues from the Wastewater fund. The other debt from the above projects will be paid by the City's debt tax levy which will see a one-time increase of approximately 20% due to the new debt on the police facility. The City's Standard & Poors bond rating reaffirmation and report was not available for inclusion with this agenda item. I am hopeful that our rating will be reaffirmed at AA-. I will forward the report separately when it is received. BOARD ACTION REQUESTED: Consider and approve the issuance of $14,155,000 general obligation improvement bonds, series 2021A, by adopting resolution 15333. 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 Debt Tax Levy T T T. CERTIFICATION OF MINUTES RELATING TO $[14,155,000] GENERAL OBLIGATION BONDS, SERIES 2021A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on July 27, 2021, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 15333 RESOLUTION RELATING TO $[14,155,000] GENERAL OBLIGATION BONDS, SERIES 2021A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _27th_ day of July, 2021. (SEAL) Matt Jaunich City Administrator 4818-9452-1072\3 The City Administrator reported that [I ([ 1) proposals for the purchase of the $[14,155,000] General Obligation Bonds, Series 2021A were received prior to 10:00 A.M., Central Time today pursuant to the Preliminary Official Statement distributed to potential purchasers of the Bonds by Ehlers & Associates, Inc., municipal advisors to the City. The bids have been read and tabulated, and the terms of each have been determined to be as follows: (See Attached) 4818-9452-1072\3 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. 15333 RESOLUTION RELATING TO $[14,155,000] GENERAL OBLIGATION BONDS, SERIES 2021A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: SECTION 1. RECITALS. 1.01. Authorization. This Council hereby determines it to be in the best interest of the City to issue and sell its General Obligation Bonds, Series 2021A, consisting of CIP Bonds, Abatement Bonds, Improvement Bonds, and Utility Bonds (collectively the "Bonds") described below to finance the various Projects (as also described below). (a) CIP Bonds. On May 11, 2021, this Council held a public hearing on the questions of approving the City's Capital Improvement Plan (the "Plan") and issuing general obligation capital improvement plan bonds in a principal amount not to exceed $16,000,000 ("CIP Bonds"), after notice duly published in the official newspaper of the City as set forth in Minnesota Statutes, Section 475.521. By resolution duly adopted on May 11, 2021, the Council approved the Plan and authorized the issuance of CIP Bonds, to finance the construction of various capital improvements identified in the Plan, including the construction of a new police facility (the "CIP Project"). No petition was filed requesting a vote on the issuance of the CIP Bonds within 30 days following the public hearing. The portion of the Bonds representing the CIP Bonds ($[ ]) is issued pursuant to Minnesota Statutes, Section 475.521 and Chapter 475. The maximum amount of principal and interest due on the CIP Bonds in any year ($[), combined with the maximum debt service on all other obligations issued by the City under Minnesota Statutes, Section 475.521 ($0), does not exceed 0.16% ($1,617,185) of the estimated market value of all taxable property in the City ($1,010,740,600). (b) Abatement Bonds. This City Council, by resolution duly adopted on May 25, 2021, authorized the issuance of tax abatement bonds (the "Abatement Bonds"), for the purpose of financing certain public infrastructure improvements, including the Highway 7 West/Montana Street Pedestrian Crossing System, Highway 7 East side -walk and trail, and Jefferson Street Extension (the "Abatement Project"). To finance the Abatement Project, this Council, by resolution adopted after a public hearing held May 25, 2021, granted a 2 4818-9452-1072\3 fifteen (15) year abatement of property taxes to be imposed by the City on certain parcels in the City (the "Tax Abatement"), pursuant to the Abatement Act (as defined below). The revenues received by the City from such Tax Abatement are herein referred to as the "Tax Abatement Revenue." The portion of the Bonds representing the Abatement Bonds ($[), is being issued pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act") and Chapter 475. (c) Improvement Bonds. This Council has heretofore ordered various street improvement projects, including the pavement management and 15t Street improvement projects (the "Improvement Project"), to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429. The portion of the Bonds being issued to finance the Improvement Project ($[) is herein referred to as the "Improvement Bonds" and is issued pursuant to Minnesota Statutes, Chapter 429 and 475. (d) Utili . Bonds. The City intends to finance certain improvements (the "Utility Project") to the City's wastewater system (the "System"). The portion of the Bonds being issued to finance the Utility Project ($[) is herein referred to as the "Utility Bonds" and is issued pursuant to Minnesota Statutes, Chapter 444 and 475. The CIP Project, the Abatement Project, the Improvement Project, and the Utility Project are collectively referred to herein as the "Projects." Maturity schedules for each portion of the Bonds are attached hereto as Exhibit A. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent municipal advisor ("Ehlers"), to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the City by Ehlers, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of [Purchaser], of [City, State] (the "Purchaser"), to purchase the Bonds at a price of $[PAR], the Bonds to bear interest at the rates set forth in Section 3.02. 1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Administrator are hereby authorized and directed to execute a contract on the part of the City with the Purchaser for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. SECTION 2. FORM OF BONDS. The Bonds shall be prepared in substantially the form attached as Exhibit B hereto. 4818-9452-1072\3 SECTION 3. BOND TERMS, EXECUTION AND DELIVERY. 3.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota and City Charter to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 3.02. Maturities, Interest Rates, Denominations, Payment. The Bonds shall be originally dated as of the date of issuance thereof, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from their date of original issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Year Amount Rate 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Year Amount Rate 2047 2048 2049 2050 2051 2052 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein, provided that so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 3.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 3.03. Dates, Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 3.07 and upon any subsequent transfer or exchange pursuant to Section 3.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable each February 1 and August 1, commencing August 1, 2022 (each such date, an "Interest Payment Date"), to the person in whose name the Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a 4 4818-9452-1072\3 business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30- day months. 3.04. Redemption. Bonds maturing in 2032 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order of maturity dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on February 1, 2031, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail, to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, provided that notice shall be given to any securities depository in accordance with its operational arrangements. No defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS — ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] Bonds maturing on February 1 in the years 20[_], 20[_], 20[_], and 20[--] (the "Term Bonds") shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 3.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of such Bonds: Term Bond due February 1, 20[_1 Redemption Date (February 1) *Stated Maturity Principal Amount Term Bond due February 1, 20[_1 Redemption Date Principal (February 1) Amount 5 4818-9452-1072\3 *Stated Maturity Notice of redemption shall be given as provided in the preceding paragraph.] 3.05. Appointment of Initial Re ig stray. The City hereby appoints Bond Trust Services Corporation, in Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 3.06. Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its principal corporate trust office a bond register (the "Bond Register") in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that 6 4818-9452-1072\3 the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 3.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in 7 4818-9452-1072\3 accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 3.08. Securities Depository. For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker -dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (a) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this Resolution, registering the transfer of Bonds, and for all other purposes whatsoever, and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the Bond Register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this Resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in 8 4818-9452-1072\3 place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (b) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (d) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (d) hereof. (c) The execution and delivery of the Representation Letter to DTC by the Mayor or City Administrator, if not previously filed, is hereby authorized and directed. (d) In the event that any transfer or exchange of Bonds is permitted under paragraph (a) or (b) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this Resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this Resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. SECTION 4. SECURITY PROVISIONS. 4.01. General Obligation Bonds, Series 2021A Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "General Obligation Bonds, Series 2021A Construction Fund" (the "Construction Fund"), to be held and administered by the City Finance Director separate and apart from all other funds of the City. Within the Construction Fund are established the following accounts: (a) CIP Project Account. The CIP Project Account shall be credited with $[ from the proceeds from the CIP Bonds, representing the estimated cost of the CIP Project ($[) and costs of issuance of the CIP Bonds ($[). The City Administrator shall maintain the CIP Project Account until payment of all costs and expenses incurred in connection with the construction of the CIP Project and costs of issuance of the CIP Bonds have been paid. (b) Abatement Project Account. The Abatement Project Account shall be credited with $[ from the proceeds from the Abatement Bonds, representing the estimated cost of the Abatement Project ($[) and costs of issuance of the Abatement Bonds ($[�). The City Administrator shall maintain the Abatement Project Account until payment of all costs and expenses incurred in connection with the construction of the Abatement Project and costs of issuance of the Abatement Bonds have been paid. (c) Improvement Project Account. The Improvement Project Account shall be credited with $[ from the proceeds from the Improvement Bonds, representing the estimated 9 4818-9452-1072\3 cost of the Improvement Project ($[) and costs of issuance of the Improvement Bonds ($[). The City Administrator shall maintain the Improvement Project Account until payment of all costs and expenses incurred in connection with the construction of the Improvement Project and costs of issuance of the Improvement Bonds have been paid. (d) Utility Project Account. The Utility Project Account shall be credited with $[ from the proceeds from the Utility Bonds, representing the estimated cost of the Utility Project ($[) and costs of issuance of the Utility Bonds ($[). The City Administrator shall maintain the Utility Project Account until payment of all costs and expenses incurred in connection with the construction of the Utility Project and costs of issuance of the Utility Bonds have been paid. From the Construction Fund there shall be paid all costs and expenses related to the construction of the Projects and costs of issuance of the Bonds. After payment of all such costs and expenses, the Construction Fund shall be terminated. All funds on hand in the Construction Fund when terminated shall be credited to the Bond Fund described in Section 4.02 hereof, unless and except as such proceeds may be transferred to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest on the Bonds from federal income taxes. In no event shall funds remain in the Project Fund later than August 19, 2024. 4.02. General Obligation Bonds, Series 2021A Bond Fund. The Bonds shall be payable from a separate General Obligation Bonds, Series 2021A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Within the Debt Service Account (described below) within the Bond Fund are established the following subaccounts: (a) CIP Bonds Subaccount. There shall be credited to the CIP Bonds subaccount the following: (i) the amounts specified in Section 4.01 above, after payment of all costs of the CIP Project; (ii) taxes levied and collected in accordance with this Resolution and allocable to the CIP Bonds; and (iii) any other funds appropriated by this Council for the payment of the CIP Bonds. (b) Abatement Bonds Subaccount. There shall be credited to the Abatement Bonds subaccount the following: (i) the amounts specified in Section 4.01 above, after payment of all costs of the Abatement Project; (ii) Tax Abatement Revenues collected in accordance with this Resolution and allocable to the Abatement Bonds; and 10 4818-9452-1072\3 (iii) taxes levied and collected in accordance with this Resolution and allocable to the Abatement Bonds; and (iv) any other funds appropriated by this Council for the payment of the Abatement Bonds. (c) Improvement Bonds Subaccount. There shall be credited to the Improvement Bonds subaccount the following: (v) the amounts specified in Section 4.01 above, after payment of all costs of the Improvement Project; (vi) special assessments levied and collected in accordance with this Resolution; (vii) taxes levied and collected in accordance with this Resolution and allocable to the Improvement Bonds; and (viii) any other funds appropriated by this Council for the payment of the Improvement Bonds. (d) Utility Subaccount. There shall be credited to the Utility Subaccount the following: (i) the amounts specified in Section 4.01 above, after payment of all costs of the Utility Project; (ii) net revenues of the System, as described in Section 4.05 hereof, (iii) taxes levied and collected in accordance with this Resolution and allocable to the Utility Bonds; and (iv) any other funds appropriated by the Council for the payment of the Utility Bonds. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the City Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one -twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City 11 4818-9452-1072\3 which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional, statutory or charter limitation. 4.03. Levy of Special Assessments. For the payment of a portion of the cost of the Improvement Project financed by the Improvement Bonds, the City has levied special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount of approximately $412,000, which is not less than twenty percent (20%) of the cost of the Improvement Project. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. 4.04. Pledge of Net Revenues. It is hereby found, determined and declared that the City owns and operates the System as a revenue -producing utility and as a convenience, and that the net operating revenues of the System, after deducting from the gross receipts derived from charges for the service, use and availability of the System the normal, current and reasonable expenses of operation and maintenance thereof, will be sufficient, together with any other pledged funds, for the payment when due of the principal of and interest on the Utility Bonds and on any other bonds to which such revenues are pledged. Pursuant to Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the registered owners from time to time of the Bonds that until the Utility Bonds and the interest thereon are discharged as provided in Section 5 or paid in full, the City will impose and collect reasonable charges in accordance with said Section 444.075 for the service, use and availability of its System according to schedules sufficient to produce net revenues sufficient, with other funds pledged to payment of the Utility Bonds, to pay the Utility Bonds and any other bonds to which said net revenues have been pledged; and the net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds and interest thereon when due. Nothing herein shall preclude the City from hereafter making further pledges and appropriations of the net revenues of its System for payment of additional obligations of the City hereafter authorized if the Council determines before the authorization of such additional obligations that the estimated net revenues of the System will be sufficient, together with any other sources pledged to the payment of the outstanding and additional obligations, for payment of the outstanding bonds and such additional obligations. Such further pledges and appropriations of net revenues may be made superior or subordinate to or on a parity with, the pledge and appropriation herein made. 4.05. Pledge of TaxingPower. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of other amounts as set forth in Section 12 4818-9452-1072\3 4.02, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Lever Collection Years Amount See attached schedules The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the tax levies from other legally available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 5. DEFEASANCE. When all of the Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms by depositing with the Registrar on or before that date an amount equal to the principal, redemption premium, if any, and interest then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an earlier designated redemption date. If such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City must have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 6. REGISTRATION, CERTIFICATION OF PROCEEDINGS, INVESTMENT OF MONEYS, ARBITRAGE AND OFFICIAL STATEMENT. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on such Auditor's bond register and that the tax required for the payment thereof has been levied and filed as required by law. 13 4818-9452-1072\3 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and Regulations promulgated thereunder (the "Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Projects will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use or other agreement with any non -governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations, stating the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. Arbitrage Rebate. The City acknowledges that the Bonds may be subject to the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof. 6.06. NOT Qualified Tax Exempt Obligations. The Bonds are not "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. 6.07. Official Statement. The Official Statement relating to the Bonds, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 14 4818-9452-1072\3 6.08. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Projects which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that a declaration of official intent shall not be required (i) with respect to certain de minimis expenditures, if any, with respect to the financed facilities meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the financed facilities as defined in Section 1.150- 2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. SECTION 7. CONTINUING DISCLOSURE. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, `Beneficial Owner" means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve (12) months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2021, the following financial information and operating data in respect of the City (the "Disclosure Information"): 15 4818-9452-1072\3 (A) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: Current Property Valuations, Direct Debt, Tax Levies and Collections, US Census Data/Population Trend, and Employment/Unemployment Data, which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal Market Access System ("EMMA") or to the SEC. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect, provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact"): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; 16 4818-9452-1072\3 (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or similar event of the obligated person; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (0) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and (P) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. For purposes of the events identified in paragraphs (0) and (P) above, the term "financial obligation" means (i) a debt obligation; (ii) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) a guarantee of (i) or (ii). The term "financial obligation" shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also "material" if it is an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occuttence of the event. 17 4818-9452-1072\3 For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection (b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term, Amendments, Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. 18 4818-9452-1072\3 (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 8. AUTHORIZATION OF PAYMENT OF CERTAIN COSTS OF ISSUANCE OF THE BONDS. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Old National Bank on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. 19 4818-9452-1072\3 Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 20 4818-9452-1072\3 EXHIBIT A Maturity Schedules CIP Bonds Abatement Bonds Improvement Bonds Utility Bonds Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 B-1 4818-9452-1072\3 R- 15333 EXHIBIT B Form of Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON GENERAL OBLIGATION BOND, SERIES 2021A Interest Rate REGISTERED OWNER PRINCIPAL AMOUNT Maturity Date February 1, 20 CEDE & CO. THOUSAND DOLLARS Date of Original Issue August 19, 2021 THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, or registered assigns, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360-day year consisting of twelve 30-day months, payable on February 1 and August 1 in each year, commencing August 1, 2022, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof at the principal office of the Registrar described below, the principal hereof are payable in lawful money of the United States of America drawn on Bond Trust Services Corporation, in Roseville, Minnesota, as bond registrar, transfer agent and paying agent (the "Registrar"), or its successor designated under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $[PAR] (the "Bonds"), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date, issued pursuant to a resolution adopted by the City Council on July 27, 2021 (the "Resolution") to pay the cost of construction of various street improvements in the City and is issued pursuant to and in full conformity with the provisions of the City Charter and Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429, 444, 469, and 475. For the full and prompt payment of the principal of and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only in fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single maturities. B-1 4818-9452-1072\3 Bonds maturing in the years 2032 and thereafter are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in the maturities selected by the City and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 2031 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail (or, if applicable, provided in accordance with the operational arrangements of the bond depository), to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS - ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20 and 20 shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Notice of redemption shall be given as provided in the preceding paragraph.] Aggregate Principal Amount As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The Bonds are NOT "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. B-2 4818-9452-1072\3 The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has by the Resolution levied or agreed to levy special assessments on property specially benefitted by certain improvements and covenanted and agreed to collect and apply to payment of the Bonds ad valorem taxes levied on all taxable property in the City, certain tax abatement revenues, and the net revenues of the City's wastewater utility, which taxes, assessments, abatement revenues, and utility revenues, are estimated to be collectible in years and amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due, and has appropriated such taxes, assessments, abatement revenues, and utility revenues to its General Obligation Bonds, Series 2021A Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by manual signature of the authorized representative of the Bond Registrar. B-3 4818-9452-1072\3 IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature City Administrator) (Facsimile Signature Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BOND TRUST SERVICES CORPORATION, as Registrar M. Authorized Representative B-4 4818-9452-1072\3 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for .................. (Cult) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Please insert social security or other identifying number of assignee: B-5 4818-9452-1072\3 Exhibit C PROJECTED TAX LEVIES AND ASSESSMENTS [To Come] 4818-9452-1072\3 CERTIFICATE OF COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY I, the undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution adopted July 27, 2021, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[14,155,000] General Obligation Bonds, Series 2021A, dated as of August 19, 2021, and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of 12021. McLeod County Auditor (SEAL) 4818-9452-1072\3 c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Approve/Deny Funding to Move Harrington Merrill Barn Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 7/27/202'1 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At our May 11 workshop, we heard an update from Historic Hutchinson on the work they have done in town. During that workshop, Historic Hutch talked about the Harrington Merrill Barn that is currently in the ownership of the City (recently purchased Franklin -site home) and their desire to see that kept and preserved at the original home site. Attached to this board action form is a formal request from Historic Hutchinson to the City asking for assistance in moving that structure to the original Harrington Merrill site. If the Council would decide to move forward with this project, staff would recommend that funding come from the Community Improvement Fund. That fund balance currently as an amount great than $2.3 million that could be used to help fund a project like this. BOARD ACTION REQUESTED: Approve/Deny Funding to move the Harrington Merrill Barn to its original site. Fiscal Impact: $ 50,000.00 Funding Source: Community Improvement Fund FTE Impact: Budget Change: Yes Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Historic Hutchinson Hutchinson, MN 55350 www.historichutchinson.m July 20, 2021 Dear Mr. Mayor and Hutchinson City Council Members; On behalf of Historic Hutchinson, we would like to thank you for allowing us to update the City during the workshop on May 11. We are including a copy of the presentation given for your review. As presented, Historic Hutchinson appreciates our partnership with the City. We have raised close to $500,000 to protect Hutchinson's historic assets and entrusted them to the Citizens of our great community. The foresight of previous Mayors and Councils has placed the assets within the parks system to ensure their continued protection. The discovery of the Harrington Merrill barn which was moved from the original site in the 1940's and ended up serving the community as a group home and now purchased by the Hutchinson EDA is a most interesting chain of events that brings this historical asset back full circle. The fact that the City owns the Harrington Merrill Property which is on the National Register of Historic Places, and the original barn is now owned by the Hutchinson EDA, an arm of the City, gives our community a once in a lifetime opportunity to save this historic structure and place the final piece of the puzzle back where it belongs. Historic Hutchinson is requesting the City to fund the moving of the barn back to its original location at a cost not to exceed $50,000. This amount will cover the cost of the mover and a new foundation and any incidentals that will be related to the move. Historic Hutchinson will work with city staff to determine orientation and the moving of the outdoor classroom to a different place on the Harrington Merrill site. In addition, Historic Hutchinson will commit to raising the funds and completing the work to restore the barn to its original look including rebuilding the cupola, cedar shingles and siding. The people of Hutchinson have been very supportive of preserving historic assets. With the help of the City, private donations, several families and estates, community and private foundations, business and leadership groups, we have set the stage for Hutchinson to be able to capitalize on the wonderful story of how we came to be, how we came back after the Dakota conflict of 1862 and how we continue to thrive as a community with a rich history. It is our hope that the partnership between the City of Hutchinson and Historic Hutchinson will continue to flourish to tell our story and serve our citizens with everyone doing their part. Respectfully submitted, Historic Hutchinson To restore, to preserve and to protect the living and structural history and spirit of the Hutchinson area and to showcase these assets now and for the future. HUTCHINSON CITY COUNCIL ca;faf4M Request for Board Action Agenda Item: CONSIDER APPROVAL OF PURCHASE AGREEMENT AND DEVELOPMENT Department: EDA LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Staff is requesting that the City Council consider approval of a Purchase Agreement and Development Agreement with Hutch Uptown Commons, LLC for two city -owned properties: 126 and 135 Franklin Street NW. The Hutchinson EDA has been working on the redevelopment of this area since 2015, having purchased and removed a blighted professional building at 126 Franklin Street in 2016 and purchasing a blighted residential property at 135 Franklin Street in 2020. The residential building is scheduled for removal later this summer. A developer, Hutch Uptown Commons, LLC, is proposing to build a minimum of 15 rental town homes on these two lots starting in 2022. If a grant application with FEMA is approved, it could potentially result in a larger project with more units in that area. The EDA is proposing to sell both lots to the developer for $1. The EDA will be reimbursed approximately $487,872 for its development costs (acquisition, demolition, etc.) through a tax increment financing district established on the site in 2016. A list of the TIF reimbursable costs is included for your review. At the Council meeting staff will have a short presentation on the project and answer any questions you may have. In the meantime, if you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Approval of Purchase Agreement and Development Agreement with Hutch Uptown Commons, LLC and authorization for staff to sign documents Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: -'JiL Hutchinson MINNESOTWS MANUFACTURING CITY MEMORANDUM TO: Hutchinson City Council DATE: July 20, 2021 FROM: Miles R. Seppelt, Economic Development Director RE: Purchase Agreement & Development Agreement with Hutch Uptown Commons LLC Honorable Mayor & City Council, I am writing with some additional information about the proposed Hutch Uptown Commons project. PROJECT AREA: 126 & 135 Franklin Street NW -1r 1ST AVE NW a 2ND AVE NW Gateway Park 114 r r r r r � r PROPOSED DEVELOPMENT: Rental townhomes PROJECT SCEHEDULE (tentative) July 2021 Sign Purchase & Development Agreements August Close on properties Fall — Winter Work through site plan approval process Summer 2022 Construction begins NOTES ON PURCHASE AGREEMENT: ■ Sale of 126 and 135 Franklin Street NW to Hutch Uptown Commons, LLC ■ Price = $1 ■ Minimum development is a 15-unit rental townhome complex ■ Construction must begin within 18 months ■ If Developer fails to meet all conditions, lots are to be sold back to the City for $1 ■ City attorney has reviewed the document and found it to be satisfactory NOTES ON DEVELOPMENT AGREEMENT: ■ Defines the Public Assistance as the sale of the property to the Developer for $1 "in order to encourage the Developer to proceed with the construction of the Development." ■ States that the City will reimburse itself for Qualified Costs from Tax Increment revenue generated by the Private Improvements. ■ Defines the Private Improvements as being a minimum 15-unit Townhome complex ■ States that there will be a Minimum Assessment Agreement on the property to establish a minimum market value. ■ City attorney has reviewed the document and found it to be satisfactory ADDITIONAL NOTES ■ The EDA has applied to the Federal Emergency Management Agency (FEMA) for a grant for the purchase of 125, 135 and 145 Glen Street NW. (please refer to map) ■ The grant would cover up to 75% of the costs of purchasing and removing the properties, and establishing a storm -water feature in their place. ■ We hope to find out in September or October if our grant application is approved. ■ If it is approved, then the developer would pursue a significantly larger project on that city block (please refer to drawing on following page). For now, given that we don't yet know how the FEMA grant will turn out, we're being conservative and planning for a minimum 15-unit project on two lots: 126 and 135 Franklin Street NW. ■ The EDA Board has discussed this project in detail and is recommending approval. If you have any questions or need additional information, please give me a call anytime at 234- 4223. Thank you for your time and consideration. Uptown Commons Expenditures Reimbursable via TIF 126 & 135 Franklin Street NW, Hutchinson, Minnesota Updated: July 20, 2021 1 Property Acquisition - Clinic site 2 Demo costs - Clinic site 3 2016 Property Taxes 4 Environmental Inspection & Testing 5 Abatement Services 6 Hutch Utilities - remove gas service 7 Newspaper Publications for Services 8 Ehlers - TIF startup professional fees 9 McLeod County TIF establishment fee 10 Interest Expense - Interfund Loan clinic site expenditures (Shopko TIF) 11 TIF District 4-16 modification (Ehlers) 12 Property Acquisition - Franklin Street House 13 Newspaper Publications for Services 14 Misc Expense - bank fee for certified check for title company 15 Interest Expense - Interfund Loan Franklin St House (Downtown Loan Fund) 16 Enviormental inspection & testing - Franklin house 17 Abatement Services - Franklin house 18 Remove gas service (HUC) - Franklin House 19 Demoliton / site stabilization - Franklin House (to be determined) 20 Levee Area Walkway Alternatives Study (SEH) [2015-2016] TOTAL * not a cash expenditure - cash will be expended when the district starts generating increment $225,936.00 $23,331.00 $16,020.93 $1,195.00 $2,980.00 $364.18 $121.26 $10,000.00 $100.00 $53,814.68 $9,000.00 $121,320.00 $178.75 $5.00 $1, 620.56 $ 2, 870.00 $ 3, 666.00 $350.85 $0.00 $14,997.94 $487.872.15 VACANT LAND PURCHASE AGREEMENT This Vacant Land Purchase Agreement ("Agreement") is made by and between the City of Hutchinson, a Minnesota municipal corporation ("Seller") and Hutch Uptown Cmmr cns, LLC, a Minnesota Limited Liability Corporation, or assigns ("Buyer") as of this I 1 day of Na V1 2021 ("Effective Date"). In consideration of this Agreement, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, vacant real property located in the City of Hutchinson, County of McLeod, Minnesota, described as follows: Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest corner of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. together with all easements and rights benefitting or appurtenant to the land (collectively, "Property"). The purpose of this transaction is to allow Buyer to construct a rental townhome complex on the Property. 2. Purchase Price and Manner of Payment. The total purchase price ("Purchase Price") to be paid by Buyerto Sellerforthe Property shall be One dollar ($1.00), and shall be payable by in cash or by certified check or bank draft on the date of the closing and upon delivery of the deed as hereinafter provided. Buyer shall pay One Dollar ($1.00) earnest money to Seller ("Earnest Money"), which will be held at Title Company (defined below). Seller acknowledges and agrees that at Closing (defined below), Buyer is entitled to a return of any Earnest Money remaining after payment of the Purchase Price and any Buyer closing costs. 3. Closing. The closing on the purchase and sale contemplated by this Agreement (the "Closing") shall occur within 15 days after the end of the Due Diligence Period (as hereinafter defined), or such other time as mutually agreed to by the parties (the "Closing Date"), at a title company reasonably selected by the parties ("Title Company"). Seller agrees to deliver possession of the Property immediately after Closing. 4. Sale by Ordinance. Buyer acknowledges that sale of city owned real property by the City of Hutchinson is done by ordinance, passage of which is at the sole discretion of the Hutchinson City Council. S. "As Is" Sale. Seller and Buyer agree that upon Closing, the Property shall be sold and that Buyer shall accept possession of the Property on the Closing Date "as is", where is, with all faults, except as specifically warranted and represented by Seller in this Agreement. 6. Good Faith. The parties agree to cooperate and act in good faith in completing this transaction as soon as reasonably possible. 7. Contingencies. The obligations of the Buyer and Seller under this Agreement are contingent upon the following: a. Representations and Warranties. The representations and warranties of Seller contained in this Agreement must be true now to the best of Seller's knowledge and on the Closing Date, as if made on the Closing Date. b. Performance of Seller's Obligations. Seller shall have performed all of the obligations required to be performed by Seller under this Agreement, as and when required by this Agreement. c. Title Evidence. The condition of the Title Evidence (defined below) shall be found acceptable to Buyer. d. Due Diligence and Disclosures. The period of time commencing on the Effective Date and ending on the date that is 180 days after the Effective Date, or such earlier date as Buyer elects, at Buyer's sole option and discretion, is referred to herein as the "Due Diligence Period". Buyer shall have the right to conduct a due diligence inquiry as to the condition of the Property and Buyer's intended use of the Property during the Due Diligence Period. Such investigation shall be at Buyer's expense, although Seller shall provide reasonable cooperation, including, but not limited to, (i) permitting Buyer or its agents to physically enter and inspect the Property, including conducting environmental testing on the property, and (ii) providing Buyer with copies of any and all surveys, appraisals, engineering reports and any and all other documents in Seller's possession, if any, related to the condition and location of the Property. Buyer shall repair and restore any damage to the Property caused by or occurring during Buyer's inspection, and return the Property to substantially the same condition as existed priorto such entry. If Buyer is dissatisfied with the results of the due diligence investigations(s), Buyer may terminate this Agreement by giving written notice to Seller on or before the expiration of the Due Diligence Period. Buyer may close the Due Diligence Period early, at Buyer's sole option and discretion, by providing Seller with written notice that Buyer has completed due diligence and is electing to close on the purchase and sale contemplated by this Agreement. e. Development Agreement. Buyer and Seller shall enter into a Development Agreement containing the following requirements of the Buyer: i. Site needs to be developed with a minimum of a 15-unit rental townhome complex. ii. Construction of the rental townhome complex must be underway within 18 months of the signing of the Development Agreement. iii. Project needs to be consistent with applicable zoning and environmental regulations. iv. Project must adhere to the city's site and project approval processes. v. Buyer is responsible for all due diligence regarding the site. Failure to Meet Contingencies. Should the Buyer fail to meet any contingency, to include those listed in paragraph 7 (e) above, the Seller may take any one or more of the actions set forth below: i. Suspend its performance under this Agreement until it received assurance from the Buyer reasonably acceptable to the Seller that Buyer will continue its performance under this Agreement; ii. Cancel and terminate this Agreement; in which case the Buyer agrees to sell the Property back to the Seller for $1. iii. Withhold the Certificate of Completion; iv. Recover any and all costs and expenses incurred by the Seller for or in connection with the development of the property; v. Take any other action, including legal, equitable or administrative action, which may appear necessary or desirable to the Seller, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Buyer under this Agreement. g. Minimum Assessment Agreement. Buyer and Seller shall enter into a minimum assessment agreement. 8. Termination. Buyer shall have until the end the Due Diligence Period to cancel this Agreement for any failed contingency or any other reason, in Buyer's sole option and discretion. 9. Documents to be Delivered to Buyer at Closing. On the Closing Date, Seller shall execute and deliver to Buyer the following documents: a. Quit Claim Deed. A Quit Claim Deed conveying marketable title to the Property, subject to the following exceptions: (i) zoning laws, ordinances and regulations; and (ii) agreements, easements, conditions, reservations, covenants and restrictions of record, reasonably acceptable to Buyer; and (iii) any and all environmental defects to the property. ,b. Other Documents. Any other document(s) reasonably determined by Buyer or Title Company, to be necessary to transfer the Property, free and clear of all encumbrances except as otherwise provided herein. 10. Items to be Delivered to Seller at Closing. On the Closing Date, Buyer shall execute and/or deliver to Seller the following: a. Purchase Price. The remainder of the Purchase Price, by cash, cashier's check or wire transfer. b. Other Documents. Any other document(s) reasonably determined by Seller to be necessary to carry out the terms of this Agreement and close the transaction. 11. Title and Survey. Developer shall be responsible for performing any and all title and survey examination or due diligence that Developer deems prudent, at Developer's sole cost and expense. Developer acknowledges and agrees that the City is not providing any representations or warranties as to the condition of title and expressly waives any claims Developer may have against the City in connection with any title defects. The Survey and the Title Commitment are sometimes referred to in this Purchase Agreement collectively as the "Title Evidence." Buyer will have until the end of the Due Diligence Period to provide Seller with written objections ("Objections") to the Property based upon the Title Evidence. Seller will have 60 days from receipt of Buyer's written Objections to cure the Objections to the reasonable satisfaction of Buyer. Seller will have 10 business days after it receives the Objections to notify Buyer whether Seller intends to cure the Objections. If Seller notifies Buyer that Seller intends to cure the Objections, then Closing will be delayed for up to 60 days, pending cure of the Objections. Cure of the Objections by Seller shall be reasonable, diligent, and prompt. Pending cure of the Objections, all payments required herein and the Closing will be postponed. If the only Objections are for liens or encumbrances for liquidated amounts that can be released, then there will be no delay in the Closing. If Seller does not notify Buyer that Seller intends to cure the Objections or if Seller notifies Buyer that Seller intends to cure but the Objections are not cured within the 60 day period provided for above, then, at Buyer's option: (i) this Purchase Agreement shawl be null and void and neither party shall be liable to the other, and all Earnest Money paid by the Buyer will be refunded to Buyer or (ii) Buyer may elect to proceed, subject to uncured Objections, in which event, Closing shall proceed. 12. Prorations and Costs. Seller and Buyer agree to the following prorations and allocation of costs regarding this Agreement: [a. Title Insurance and Closing Fee. Buyer will pay any reasonable and customary closing fee or charge imposed by the Title Company. b. Deed Tax. Any and all deed tax shall be paid by Buyer. c. Property Taxes and Special Assessments. On or before the Closing Date, all real estate taxes and special assessments shall be paid as follows: i. Seller shall pay all real estate taxes payable in all years prior to the year of closing. ii. Seller shall pay all special assessments including, but not limited to, sewer and water assessments payable in all years prior to the year of Closing and the year of Closing. iii. General real estate taxes and special assessments payable in the year of Closing shall be prorated between Seller and Buyer as of the Closing Date. iv. Buyer shall pay all general real estate taxes and installments of special assessments payable in all years following the year of Closing. v. Attorneys' Fees. Each party shall pay its own attorneys' fees and expenses, even when arising from any default, collection action or other dispute hereunder. vi. The fees for any real estate representatives retained shall be paid by the party retaining such representative. 13. Representations and Warranties by Seller. To the best of Seller's knowledge, Seller represents and warrants to Buyer as follows: a. Seller's Documents. The documents delivered by Seller to Buyer at Closing will be valid and binding obligations of Seller, and will be enforceable in accordance with their terms. As -Is. Except as expressly set forth in Section 13 (h) below, (i) the City makes no representations or warranties regarding the Property, (ii) the City hereby disclaims, and Buyer hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous materials on site, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use and (iii) Buyer takes the Property "AS IS", "WHERE IS" and "WITH ALL FAULTS". The Buyer is responsible for all remediation costs associated with the Property. Authority and Capacity. Seller has full authority to enter into this Agreement and complete capacity to understand the terms hereof. Risk of Loss. To the extent the Property suffers any damage prior to the Closing Date, Buyer shall have the option of canceling this Agreement. FIRPTA. Seller is not a "foreign person," "foreign partnership," "foreign trust," or "foreign corporation" under Internal Revenue Code Section 1445, and the rules and regulations promulgated thereunder. Methamphetamine Disclosure. Seller discloses and certifies that, to the best of Seller's knowledge, methamphetamine production has not occurred on the Property. Wells and Septic Systems. Seller certifies that Seller does not know of any wells within the Property, excepting closed environmental monitoring wells. Seller certifies that Seller is not aware of any septic system or other private sewer system on the Property. Environmental Condition. Seller acknowledges there may be hazardous substances on the Property; the Property is not subject to any liens or claims by government or regulatory agencies or third parties arising from the release or threatened release of Hazardous Substances in, on or about the Property; Buyer acknowledges the Property may have been used in connection with the generation, disposal, storage, treatment and transportation of Hazardous Substances; Buyer acknowledges there may have been releases, spills or other discharges of Hazardous Substances on the Property. For purposes of this Agreement, the term "Hazardous Substances" includes but is not limited to substances defined as "hazardous substances," "Toxic substances" or "hazardous wastes" in the Comprehensive Environmental Response Compensation Liability Act of 1980, as amended, 42 U.S.C. §§9601, et seq., and substances defined as "hazardous wastes," "hazardous substances," "pollutants or contaminants" as defined in the Minnesota Environmental Response and Liability Act, Minnesota Statutes Section 115B.02, et seq. The Term "Hazardous Substances" also includes asbestos, polychlorinated biphenyls, petroleum (including crude oil or anyfraction thereof), petroleum product or heating oil. i. FEMA 100-Year Flood Plain. Seller acknowledges the property is located within the FEMA 100-year floodplain. j. Airport Zoning Disclosure. If airport zoning regulations affect the Property, a copy of those airport zoning regulations as adopted can be viewed or obtained at the office of the county recorder where the Property is located. k. Rights of Others to Purchase Property. Seller has not entered into any other contracts for the sale of the Property, nor are there any rights of first refusal or options to purchase the Property or any other rights of others that might prevent the consummation of this Agreement on the terms herein. Proceedings. There is no action, litigation, investigation, condemnation, or proceeding of any kind pending or threatened against Seller or any portion of the Property. 14. Representations and Warranties by Buyer. Buyer hereby represents and warrants to Seller (as of the date of this Agreement and as of the Closing Date): a. Authority and Capacity. Buyer has full power, authority and capacity to enter into and perform this Agreement in accordance with its terms. 15. Final Property Inspection. Seller covenants that between the date of the execution of this Agreement and the Closing Date, Seller will continue to maintain the Property in a fashion that is lawful and consistent with Seller's past practices. Seller will not change or permit the change of the Property in any material way. In addition, Buyer shall be entitled to a final inspection of the Property prior to Closing. 16. Damage. If, prior to the Closing Date, all or any part of the Property is materially damaged casualty, the elements, or any other cause, Seller shall immediately give notice to Buyer of such fact. If the property is damaged by casualty, the elements or any other cause, then this Agreement shall be null and void at Buyer's option provided, however, that if Buyer desires to proceed with its purchase of the Property, Seller shall assign any available insurance proceeds to Buyer. 17. Assignment. Prior to the issuance of a Certificate of Occupancy for the Buyer, Buyer shall not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, or other transfer, with respect to this Agreement, the Development or the Property, or any part thereof or any interest therein, or enter into any contract or agreement to do any of the same, without the prior written approval of the City, which may be withheld at City's sole discretion. No transfer of, or change with respect to, ownership in the Development or the Property or any part thereof, or any interest therein, however consummated or occurring and 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 with respect to the Property and the completion of the Development that the City would have had, had there been no such transfer or change. No sale, assignment, conveyance, lease, or other transfer or approval by the City of the same shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Development, from any of its obligations with respect thereto. Notwithstanding the foregoing, Buyer shall be permitted to assign and/or convey its interest in the Agreement to a business entity in which Buyer holds an interest. 18. Notices. Any notice required or permitted to be given by any party upon the other is deemed delivered in accordance with this Agreement (a) four (4) business days after it is deposited in the United States mail; (b) 24 hours after it is deposited with a nationally - recognized over -night courier; (c) when it is personally delivered; or (d) when it is sent by electronic transmission, and addressed as follows: If to Seller City of Hutchinson ATTN: Miles R. Seppelt Economic Development Director 111 Hassan Street SE Hutchinson, MN 55350 Email: mseppelt@ci.hutchinson.mn.us If to Buyer Hutch Uptown Commons, LLC 6789 Old Viking Blvd NW Nowthen, MN 55303 Email: ward@reagan.com Notices shall be deemed effective on the date they are deemed to be delivered. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 19. Survival. Those provisions set forth in this Agreement relating to representations, warranties, indemnification, proration and payment of expenses, and the availability of attorney's fees upon default of the surviving provisions, shall survive the termination of this Agreement. 20. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving five (5) business days written notice to Buyer. If Buyer fails to cure such default within 5 business days of the date of such notice, this Agreement shall terminate and Seller may retain the Earnest Money and/or exercise any and all rights and remedies available at law or in equity, including, but not limited to, the right to recover money damages and seek specific performance. If Seller defaults under this Agreement, Buyer shall give written notice to Seller. If Seller fails to cure such default within five (5) business days, Buyer shall have the right to terminate this Agreement without further notice and the right to seek recovery of money damages or to seek specific performance of this Agreement. 21. Binding Effect. This Agreement binds and benefits the parties and their successors and assigns. 22. Choice of Law. This Agreement shall be subject to and governed by the laws of the State of Minnesota and all questions concerning the meaning or intention of the terms of this Agreement or concerning the validity thereof, and questions relating to the performance hereunder shall be adjudged and resolved in accordance with the laws of the State of Minnesota. 23. Representation by Attorney. Seller and Buyer acknowledge that each has been represented by an attorney of its own choice with respect to entry into this Agreement or has had an opportunity to be represented by an attorney. Seller acknowledges and agrees that tea,/4 L/ is representing Buyer in regards to this Agreement, and has not provided any legal advice to Seller. Each party is responsible for its own attorney fees. 24. Time of Essence. Time is of the essence in all terms herein. 25. Scrivener's Errors. Seller acknowledges and agrees that Buyer may correct any typographical or scrivener's errors in this Agreement without the consent of Seller in order to effectuate the terms of this Agreement. In the event Buyer makes any such revisions, Buyer will provide a copy of the revised document(s) to Seller. 26. Entire Agreement; Modification; Counterparts and Electronic Signatures. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement and no waiver or amendment of any of its terms shall be effective unless in writing executed by the parties. This Agreement or any amendments may be executed in counterparts, which, taken together, shall constitute one original. The parties agree that this Agreement may be transmitted between themselves by facsimile, email or other electronic means. The parties intend that scanned, faxed, emailed or other electronically produced and/or transmitted signatures constitute original signatures and that a faxed, emailed or other electronically produced and/or transmitted agreement or counterparts containing the signatures of all the parties is binding upon the parties. 27. Buyer and Seller agree to accommodate each other in the event of a 1031 exchange. Seller and Buyer have executed this Agreement as of the date set forth above. SELLER City of Hutchinson By: Gary D. Forcier Its: Mayor and By: Matt Jaunich Its: City Administrator BUYER i Hutch Uptown Commons, LLC By: Matt Ward Hutch Uptown Commons, LLC Its: DEVELOPMENT AGREEMENT by and between City of Hutchinson Minnesota 0 Hutch Uptown Commons, LLC i I P a g e TABLE OF CONTENTS PAGE ArticleI Definitions........................................................................................................................................ 1 Section1.1 Definitions.................................................................................................................... 1 Article 11 REPRESENTATIONS AND WARRANTIES.......................................................................................... 3 Section 2.1 Representations and Warranties by Developer........................................................... 3 Article III PROPERTY TRANSFER.................................................................................................................... 4 Section3.1 Property....................................................................................................................... 4 Section3.2 Closing..........................................................................................................................4 Section 3.3 Purchase Price..............................................................................................................4 Section3.4 Title and Survey............................................................................................................4 Section 3.5 City Closing Documents................................................................................................4 Section 3.6 Closing Costs and Prorations........................................................................................ 4 Section3.7 "AS IS".......................................................................................................................... 5 Section 3.8 Limited Representations.............................................................................................. 5 Article IV DEVELOPMENT..............................................................................................................................5 Section 4.1 Private Improvements.................................................................................................. 5 Section 4.2 Real Property Taxes...................................................................................................... 7 Article V PUBLIC ASSISTANCE........................................................................................................................ 7 Section 5.1 Public Assistance..........................................................................................................7 Section 5.2 Reimbursement for Qualified Costs......................................................................................7 Section 5.3 Minimum Assessment Agreement............................................................................... 7 ArticleVI INSURANCE....................................................................................................................................8 Section 6.1 Insurance by Developer............................................................................................... 8 Section 6.2 Proof of Coverage; General.......................................................................................... 8 Article VII INDEMNIFICATION.......................................................................................................................8 Section 7.1 City Indemnification.....................................................................................................8 Article Vill EVENTS OF DEFAULT................................................................................................................... 9 Section 8.1 Events of Default Defined............................................................................................ 9 Section 8.2 Remedies on Default.................................................................................................. 10 Section 8.3 No Remedy Exclusive................................................................................................. 10 Section 8.4 No Implied Waiver..................................................................................................... 10 Section8.5 City Default................................................................................................................. 10 Section 8.6 Attorneys' Fees and Expenses.................................................................................... 11 Article IX ASSIGNMENT; PROPERTY TRANSFERS......................................................................................... 11 Section 9.1 Assignment; Property Transfers................................................................................. 11 Article X General Provisions........................................................................................................................ 11 Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable .......................... 11 Section 10.2 Equal Employment Opportunity.............................................................................. 11 Section 10.3 Restrictions on Use................................................................................................... 11 Section 10.4 Titles of Articles and Sections.................................................................................. 12 Section 10.5 Business Subsidies Act.............................................................................................. 12 Section 10.6 Term of Agreement.................................................................................................. 12 Section 10.7 Provisions Surviving Termination............................................................................. 12 Article XI MISCELLANEOUS.......................................................................................................................... 12 Section 11.1 Scope of Agreement................................................................................................. 12 Section11.2 Liability..................................................................................................................... 12 Section11.3 Amendments............................................................................................................ 12 Section11.4 Severability............................................................................................................... 12 Section 11.5 Agreement Binding.................................................................................................. 12 Section 11.6 Run with the Land.................................................................................................... 13 Section 11.7 Venue and Law of Governing................................................................................... 13 Section11.8 Litigation................................................................................................................... 13 Section 11.9 No Third -Party Beneficiaries.................................................................................... 13 Section 11.10 Time of the Essence............................................................................................... 13 Section11.11 Notice..................................................................................................................... 13 Section11.12 Recordation............................................................................................................ 13 Section 11.13 Assignability of Agreement.................................................................................... 13 Exhibit A: Legal Description Exhibit B: Site Plan Exhibit C: Minimum Improvements Exhibit D: Form of Quit Claim Deed Exhibit E: Form of Certificate of Occupancy Exhibit F: Form of Development Agreement Memorandum Exhibit G: Estimated City Development Costs This Development Agreement ("Agreement"), is made by and between the City of Hutchinson, a Minnesota municipal corporation ("City") and Hutch Uptown Commons, LLC, a Minnesota Limited Liability Corporation ("Developer") as of this day of , 2021 ("Effective Date") RECITALS: WHEREAS, the City currently owns two properties consisting of (1) an approximately 1-acre lot located at 126 Franklin Street NW, Hutchinson, MN 55350; and (2) an approximately .33-acre lot located at 135 Franklin Street NW, Hutchinson, MN 55350 which real property is legally described on Exhibit A attached hereto and is collectively referred to as the ("Property"); WHEREAS, Developer desires to, and subject to the terms of this Agreement agrees to, develop the Property as rental townhomes in accordance with the site plan attached hereto as Exhibit B ("Site Plan") and meeting the requirements set forth on Exhibit C ("Minimum Improvements"). Such townhomes and all improvements ancillary thereto are herein collectively referred to as the "Private Improvements"; and, WHEREAS, the City has designated a development district in the City denominated Development District No. 4 ("Development District") and has approved a modification to the Development Program for the Development District ("Modification") pursuant to and in accordance with Minnesota Statutes ("M.S."), Sections 469.124 through 469.133 ("Act"), as amended; and, WHEREAS, the City adopted a resolution establishing Tax Increment Financing District No. 4-16, a "redevelopment district" pursuant to M.S., Section 469.174, Subdivision 11 ("TIF District") to pay for qualified project costs and approved a Tax Increment Financing Plan therefore (the "TIF Plan"); and, WHEREAS, in order to achieve the objectives of the Development Program, the Modification, and the TIF Plan, the City intends to reimburse itself through tax increment financing, as described in the TIF Act; and, WHEREAS, the City will apply tax increment revenues generated from the TIF District to (i) reimburse itself for administrative expenses relating to the TIF District to the extent permitted by the TIF Act and, (ii) to reimburse itself, with interest, for certain costs incurred in preparing the Property for redevelopment; and, WHEREAS, the City believes that the development activities associated with the Development pursuant to this Agreement are in the best interests of the City and comply with the applicable state and local laws and requirements under which the Development has been undertaken. NOW THEREFORE, in consideration of the Property and the mutual covenants and agreements herein set forth, the parties do hereby covenant and agree as follows: ARTICLE I DEFINITIONS Section 1.1 Definitions. In this Agreement, unless a different meaning clearly appears from the context: 1 I Page "Act" means Minnesota Statutes, Sections 469.124 through 469.133. "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Approved Plans" means such City -approved plans and specifications. "Available Tax Increment" means the tax increment revenues generated by Tax Increment Financing District No. 4-16 as computed pursuant to Minnesota Statutes, Section 469.177, or its successor. "Business Subsidies Act" means Minnesota Statutes, Sections 116.1.993 through 116J.995. "Certificate of Completion" means a certification in the form attached hereto as Exhibit E, to be provided to the Developer pursuant to this Agreement. "City" means the City of Hutchinson, Minnesota. "City Council" means the City Council of the City of Hutchinson, Minnesota. "Developer" means Hutch Uptown Commons, LLC, and its successors and assigns. "Development Costs" means certain costs incurred and to be incurred by the City, the estimated types and amounts of which are shown on Exhibit G to this Agreement. "Development District" means Development District No. 4 designated pursuant to Minnesota Statutes, Sections 469.124 through 469.133. "Development" means the Private Improvements. "Development Program" shall have the meaning ascribed to it in the Act. "Event of Default" means as any of the events set forth in Section 8.1 hereof. "Modification" means the Modification to the Development Program for Development District No. 4. "Minimum Improvements" means the minimum improvements to be undertaken by the Developer as part of the Development on the Property all as further described in Exhibit C attached hereto. "Private Improvements" means the townhome Development and all improvements ancillary thereto to be undertaken by the Developer. "Property" means the real property legally described on Exhibit A attached hereto. "Public Assistance" means the sale of the property to the Developer for $1. "Qualified Costs" means costs are reimbursable from tax increment pursuant to the TIF Act, which are shown on Exhibit H to this Agreement. 2 1 " r 1. "Site Plan" means the site plan described on Exhibit B attached hereto. "Termination Date" means the earlier of (i) the date on which the TIF District expires or is otherwise terminated, or (ii) the date this Agreement is terminated or rescinded in accordance with its terms. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794. "TIF District" means Tax Increment Financing District No. 4-16 established by the City. "TIF Plan" means the Tax Increment Financing Plan for Tax Increment Financing District No. 4-16 approved by the City. "Unavoidable Delays" means delays which are the result of (i) strikes or other labor troubles, unforeseeable and unavoidable casualties to the Public Improvements or the Private Improvements, (ii) governmental actions that are not in the control of the defaulting party or (iii) severe weather, acts of God, fire or other casualty. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties by Developer. Developer represents and warrants that: (a) Developer is a limited liability company organized and validly existing under the laws of the State of Minnesota. (b) Developer has duly authorized the execution of this Agreement and the performance of its obligations hereunder, and neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement, is prevented, limited by or conflicts with or results in a breach of, any indebtedness, agreement or instrument of whatever nature to which Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (c) Developer will, to the extent required by this Agreement, construct or cause the construction of the Minimum Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations. (d) There are no pending or threatened legal proceedings of which Developer has knowledge that seek to restrain or enjoin the transactions contemplated by this Agreement or which restrict the authority of Developer to execute and deliver this Agreement or the validity of this Agreement. (e) The estimated value of the Development is not less than $2.25 million. (f) To the best of Developer's knowledge and belief, the execution and delivery of this Agreement will not create a conflict of interest prohibited by Minnesota Statutes, Section 469.009, as amended. 3 1 ' (g) Developer has obtained, or will obtain, funding which is sufficient to enable Developer to successfully complete the construction of the Development. (h) The Developer would not undertake the Development without the public assistance to be provided by the City pursuant to this Agreement and the TIF Plan. ARTICLE III PROPERTY TRANSFER Section 3.1 Property. Subject to the terms and conditions of this Agreement and any purchase agreement, the City will convey to Developer, and Developer will purchase and accept from the City the Property. The City shall remove any existing buildings and grade the property by November 1, 2021. Developer authorizes the City to complete this work. Following building removal and site grading by the City, the City shall convey and Developer shall take the Property in its as -is condition and except as expressly set forth in Section 3.8 below, without any representation or warranty concerning the Property (including, without limitation, the warranties of fitness for a particular purpose, tenantability, habitability and use). Section 3.2 Closing. The closing of the sale and purchase of the Property ("Closing") will occur on , 2021, as described in the Vacant Land Purchase Agreement between the City and the Developer dated , 2021 (the "Purchase Agreement"). Section 3.3 Purchase Price. The purchase price for the Property is $1.00, which is payable by Developer to the City at the Closing. Section 3.4 Title and Survey. Developer shall be responsible for performing any and all title and survey examination or due diligence that Developer deems prudent, at Developer's sole cost and expense. Developer acknowledges and agrees that the City is not providing any representations or warranties as to the condition of title and expressly waives any claims Developer may have against the City in connection with any title defects. Section 3.5 City Closing Documents. (a) City Closing Documents. The City will deliver to Developer at the Closing: (i) a quit claim deed duly executed by the City substantially in the form attached hereto as Exhibit D; and (ii) any other items required by this Agreement for the Closing. (b) Developer Closing Documents. Developer will deliver to the City at the Closing: (i) any remaining purchase price specified in Section 3.3; (ii) any other items required by this Agreement for the Closing. Section 3.6 Closing Costs and Prorations. 4 1 P a g e (a) Closing Costs. The City and the Developer will each pay their own respective legal costs associated with the Agreement. Developer will be responsible for any taxes required in connection with the transaction (including all deed tax), all document recording fees, fees associated with the transfer or obtaining of licenses and permits required to operate the Property, and any sales or use taxes required in connection with the transaction. Developer will pay the closing fee and any escrow fees incurred in connection with this transaction. It being the intention of the parties that the City will incur no costs in connection with the transaction contemplated by this Article 3. (b) Taxes and Assessments. Real estate taxes and installments of special assessments with respect to the Property, if any, due and payable in the year in which the Closing occurs will be prorated as of the date of the Closing. Section 3.7 AS IS. Except as expressly set forth in Section 3.8 below, (i) the City makes no representations or warranties regarding the Property, (ii) the City hereby disclaims, and Developer hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous materials on site, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use and (iii) Developer takes the Property "AS IS", "WHERE IS" and "WITH ALL FAULTS". Section 3.8 Limited Representations. The City represents and warrants as of the date hereof and the date of Closing, which representations and warranties shall survive for a period of twelve (12) months following the Closing: (a) Wells. The City certifies and warrants that the City does not know of any "Wells," excepting closed environmental monitoring wells, on the described Property within the meaning of Minn. Stat. § 1031. This representation is intended to satisfy the requirements of that Statute. (b) Methamphetamine. To the actual knowledge of the City, no methamphetamine production has occurred on the Property. This representation is intended to satisfy the requirements of Minnesota Statutes Section 152.0275 Subdiv. 2(m). (c) Sewage Treatment System Disclosure. For the purposes of satisfying any applicable requirements of Minn. Stat. § 115.55, the City discloses and certifies that to the City's actual knowledge, no sewage is generated on the Property. ARTICLE IV DEVELOPMENT Section 4.1 Private Improvements. (a) Development and Construction Obligations. Developer will design and build the Private Improvements in accordance with the Approved Plans. Developer shall commence physical construction of the Private Improvements no later than the later to occur of (a) eighteen (18) months after of the Effective Date and (b) six (6) months following Closing (the "Commencement Deadline") and shall diligently pursue completion of the Private Improvements. Subject to Unavoidable Delays, the Private Improvements shall be completed no later than December 31, 2023. Developer will construct, or cause 5 1 P a g e the construction of, all of the Private Improvements in strict accordance with this Agreement and applicable federal, state and local laws, ordinances, rules and regulations. (b) Plans. Developer shall deliver to the City all plans, specifications and working drawings for the Development (of sufficient scope and detail to satisfy requirements for obtaining all necessary permits, for obtaining firm cost bids and for directing the construction of the Development) for the City's prior approval, such approval not to be unreasonably withheld, conditioned or delayed. Developer shall not commence construction on the Private Improvements until the City has approved the plans, specifications and working drawings for the Development in accordance with this paragraph. (c) Zoning and Land Use Approvals; Building Permits; Fees. (i) Developer shall submit the appropriate application materials as required under the City municipal code. Developer shall be responsible for applying for and obtaining all land use and zoning approvals necessary for the Private Improvements. All zoning and land use approvals shall be in accordance with the ordinances of the City. (ii) Developer shall comply in all respects with all applicable City building codes and construction requirements and shall be responsible for obtaining all building permits with respect to construction of the Private Improvements. Developer shall be responsible for paying, or causing to be paid, to the City and all other governmental agencies the cost of all applicable permit fees and licenses required for construction of the Private Improvements. (iii) No approval by the City of the Approved Plans under Section 4.1(b) shall relieve Developer of the obligation to comply with the terms of this Agreement, the Purchase Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Private Improvements. No approval by the City shall constitute a waiver of an Event of Default. Further, Developer is not excused from the necessity of obtaining environmental, navigational, design, business or safety approvals that may be required by applicable federal, state and local laws, ordinances, rules and regulations. (d) Changes. If Developer desires to make any material change in the Approved Plans, then Developer shall submit the proposed change to the City for its approval, which approval shall not be unreasonably withheld, conditioned or delayed provided such change does not vary from the Minimum Improvements, which Minimum Improvements are set forth on Exhibit C. (e) Certificate of Occupancy. Developer will notify the City when it has fully completed construction of the Private Improvements. The City will promptly inspect the Private Improvements to determine whether the Private Improvements have been constructed in substantial conformity with the Approved Plans. If the City determines that the Private Improvements have not been constructed in conformity with the Approved Plans, the City shall, within ten (10) business days of its inspection, deliver a written statement to Developer indicating that the Private Improvements have not been constructed in substantial conformity with the Approved Plans and the terms of this Agreement, along with a list detailing such deficiencies. At such time as the City determines that the Private Improvements have been fully completed in conformity with the Approved Plans and this Agreement, the City shall promptly deliver a Certificate of Occupancy to Developer substantially in the form attached hereto as Exhibit E. It will be the responsibility of Developer to provide for the recording of the Certificate of Occupancy and the payment of any costs for such recording. 6 1 P a g e (f) Progress Reports/City Access. Until a Certificate of Occupancy is issued, Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a quarterly basis, a written report as to the actual progress of work on the Private Improvements. Upon reasonable prior notice from the City, Developer agrees to permit the City and any of its officers, employees or agents access to the Private Improvements for the purpose of inspection of all work being performed in connection with the Development. Section 4.2 Real Property Taxes. Prior to the Termination Date, the Developer shall pay all real property taxes payable with respect to all and any parts of the Property acquired and owned by it until the Developers' obligations have been assumed by any other person pursuant to the provisions of this Agreement or title to the Property is vested in another person. The Developer agrees that prior to the Termination Date: (1) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the ad valorem property taxation of real property contained on the Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings with respect to the Property, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (2) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Property determined by any tax official to be applicable to the Development or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings with respect to the Property; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (3) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.1813, or any other State or federal law, of the ad valorem property taxation of the Property between the date of execution of this Agreement and the Termination Date. ARTICLE V PUBLIC ASSISTANCE Section 5.1 Public Assistance. The Developer has agreed to and shall be responsible to pay all of its respective costs of the Development, as herein provided. However, the City, in order to encourage the Developer to proceed with the construction of the Development, shall sell the Property to the Developer for $1. Section 5.2 Reimbursement for Qualified Costs. The City will reimburse itself for its Qualified Costs of Development from Tax Increment revenue generated by the Private Improvements. Section 5.3 Minimum Assessment Agreement. The City and Developer will enter into a Minimum Assessment Agreement in order to establish the minimum market value of the Property. 7 1 P a g e ARTICLE VI INSURANCE Section 6.1 Insurance by Developer. (a) Developer will provide and maintain or cause to be maintained at all times during the process of constructing the Private Improvements and, from time to time at the request of the City, will furnish the City with proof of payment of premiums on: (i) Builder's risk insurance, written on the so-called "Builder's Risk - Completed Value Basis," in an amount equal to 100% of the insurable value of the Private Improvements at the date of completion, and with coverage available in non -reporting form on the so-called "all risk" form of policy. (ii) Workers' compensation insurance, with statutory coverage. (iii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's/Contractor's Policy, with limits against bodily injury and property damage of not less than $2,500,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used), written on an occurrence basis. In each case the City shall be named as an additional insured to the extent of its interest and the City shall be protected in form and content reasonably satisfactory to the City. Section 6.2 Proof of Coverage: General. All insurance required in this Article shall be taken out and maintained with responsible insurance companies which are authorized under the laws of the State of Minnesota to assume the risks covered thereby. Each policy must contain a provision that the insurer will not cancel nor modify the policy without giving written notice to the insured at least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen (15) days prior to the expiration of any policy, Developer, or its successor or assign, must renew the existing policy or replace the policy with another policy conforming to the provisions of this Article. In lieu of separate policies, Developer or its successor or assign, may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein. ARTICLE VII INDEMNIFICATION Section 7.1 City Indemnification. (a) Developer covenants and agrees that the City and its governing body members, officers, agents, servants and employees ("City Indemnified Parties") shall not be liable for, and Developer agrees to indemnify and hold harmless the City Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring after Closing at or about or resulting from (a) Developer's performance of or failure to perform or breach of its obligations under this Agreement or (b) the negligence or willful misconduct of Developer or its employees, agents, contractors and designees. (b) Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding arising 8 1 P a g e out of or with respect to the construction, installation, ownership, and operation of the Property or the Private Improvements. (c) Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding arising out of or with respect to this Agreement. (d) Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding by reason of any lien or claim of lien for labor, services or materials (including allowances for interest or profit) of any general contractor, subcontractor or sub -subcontractor, materialmen or any persons whatsoever, or by reason of any equitable or statutory lien against the Private Improvements, arising by reason of or in the course of any construction, improvement or work of any nature, whether heretofore completed, now in progress or hereafter to be done. (e) None of the City Indemnified Parties shall be liable to Developer or to any third party for any consequential or other damages that may arise out of delays of any kind relating to activities undertaken pursuant to this Agreement, including but not limited to delays due to environmental conditions, court challenges or elements outside the control of the City Indemnified Parties. ARTICLE VIII EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement: (a) Subject to Unavoidable Delays, failure by Developer to complete construction of the Private Improvements pursuant to the terms, conditions and limitations of this Agreement. (b) Failure by Developer to commence physical construction of the Private Improvements by the Commencement Deadline. (c) Failure by Developer to provide and maintain any insurance required to be maintained by Article VI. (d) Failure by Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement not otherwise set forth in this Section 8.1 and Developer fails to cure (or diligently work to cure) such failure within thirty (30) days after the City notifies Developer of such failure. (e) Developer's filing of any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Code or under any similar federal or state law. (f) The making of an assignment for the benefit of Developer's creditors. (g) The making of an assignment of this Agreement or sale or transfer of the Property in violation of this Agreement. 9 1 P a g c (h) Developer's admittance in writing of its inability to pay its debts generally as they become due. (i) The adjudication of Developer as bankrupt or insolvent; or a petition or answer proposing the adjudication of Developer as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law which is filed in any court and such petition or answer is not be discharged or denied within 60 days after the filing thereof, or a receiver, trustee or liquidator of Developer, or of the Development, or part thereof, is appointed in any proceeding brought against Developer, and is not discharged within 60 days after such appointment, or if Developer consents to such appointment. Section 8.2 Remedies on Default. Whenever any Event of Default referred to in Section 8.1 occurs, the City may take any one or more of the actions set forth below: (a) Suspend its performance under this Agreement until it receives assurances from Developer reasonably acceptable to the City that Developer will cure its default and continue its performance under this Agreement; (b) Cancel and terminate this Agreement; in which case the Developer agrees to sell the Property back to the City for $1. (c) Withhold the Certificate of Completion; (d) Recover any and all costs and expenses incurred by the City for or in connection with this Agreement; or, (e) Take any other legal, equitable or administrative action, which may appear necessary or desirable to the City, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant to the Developer under this Agreement. Section 8.3 No Remedy Exclusive. No remedy hereunder is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right accruing upon any default shall impair any such right or shall be construed to be a waiver thereof, but any such right may be exercised from time to time and as often as may be deemed expedient. Section 8.4 No Implied Waiver. In the event any agreement contained herein should be breached by any party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.5 City Default. The City shall be in default under this Agreement ("City Default") in the event the City fails to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement and the City fails to cure such failure within thirty (30) days after Developer notifies the City of such failure, subject to Unavoidable Delays. Upon the occurrence of a City Default, Developer will have the right to exercise any of the following remedies: 101Page (i) seek specific performance or other equitable relief or (ii) sue for money damages. Developer shall not be entitled to terminate this Agreement. Section 8.6 Attorneys' Fees and Expenses. Each party shall pay its own attorneys' fees and expenses, even when arising any default, collection action or other dispute hereunder. ARTICLE IX ASSIGNMENT; PROPERTY TRANSFERS Section 9.1 Assignment; Property Transfers. Prior to the issuance of a Certificate of Occupancy for the Developer, Developer shall not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, or other transfer, with respect to this Agreement, the Development or the Property, or any part thereof or any interest therein, or enter into any contract or agreement to do any of the same, without the prior written approval of the City, which may be withheld in the City's sole discretion. No transfer of, or change with respect to, ownership in the Development or the Property or any part thereof, or any interest therein, however consummated or occurring and 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 with respect to the Property and the completion of the Development that the City would have had, had there been no such transfer or change. No sale, assignment, conveyance, lease, or other transfer or approval by the City of the same shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Development, from any of its obligations with respect thereto. ARTICLE X GENERAL PROVISIONS Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable. No member, official, employee, or consultant or employee of a consultant of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or the consultant's employees or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, consultant or consultant's employee, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successors or on any obligations under the terms of this Agreement. Section 10.2 Equal Employment Opportunity. Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. Section 10.3 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property, or any part thereof, that Developer, and such successors and assigns, shall devote the Property to, and only to and in accordance with, the uses specified in the Development Program, this Agreement and other agreements entered into between the Developer and the City, and shall not discriminate upon the basis of race, color, creed, religion, national origin, sex, marital status, disability, status with regard to public assistance, sexual orientation, and familial status in the sale, lease, or rental or in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof. 11 IPage Section 10.4 Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.5 Business Subsidies Act. Based on the representations of the Developer contained in Section 2.1 of this Agreement, the Public Assistance being provided by the City to the Developer under this Agreement is not a business subsidy under the Minnesota Business Subsidies Act and a subsidy agreement as described in Minnesota Statutes, Section 116J.994, Subd. 3 and Subd. 4 is not being entered by the City and Developer. Section 10.6 Term of Agreement. This Agreement shall terminate upon the earlier to occur of (i) reimbursement of the Developer's costs by the City as provided in Section 5.1 hereof, (ii) the decertification of the TIF District; or (iii) the City and the Developer agree in writing to terminate this Agreement; it being expressly agreed and understood that the provisions of this Agreement are intended to survive the expiration and satisfaction of any security instruments placed of record contemporaneously with this Agreement, if such expiration and satisfaction occurs prior to the expiration of the term of this Agreement, as stated in this Section 10.6. Section 10.7 Provisions Surviving Termination. Sections 7.1 and 8.6 hereof shall survive any termination, rescission, or expiration of this Agreement with respect to or arising out of any event, occurrence, or circumstance existing prior to the date thereof ARTICLE XI MISCELLANEOUS Section 11.1 Scope of Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and no statements, promises, or inducements that are not contained in this Agreement will be binding on the parties. All exhibits, schedules, or other attachments referenced in this Agreement are hereby incorporated into this Agreement by such reference and are deemed to be an integral part of this Agreement. Section 11.2 Liability. No member, official, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City for any amount which may become due to Developer on any obligations under the terms of this Agreement. Under no circumstances shall the City be liable for any consequential or special damages in connection with this Agreement or the transactions contemplated herein. Section 11.3 Amendments. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. Section 11.4 Severability. If any part, term, or provision of this Agreement is held by a court to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, term, or provision, and the rights of the parties will be construed as if the part, term, or provision was never part of this Agreement. Section 11.5 Agreement Binding. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, personal representatives, successors and assigns. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same instrument. 121Page Section 11.6 Run with the Land. The covenants and restrictions set forth in this Agreement shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions set forth in the Agreement shall inure only to the benefit of the City and may be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. Section 11.7 Venue and Law of Governing. This Agreement shall be construed under and in accordance with the laws of the State of Minnesota. Section 11.8 Litigation. Each party will reasonably cooperate with the others with respect to any litigation commenced by third parties in connection with this Agreement. Section 11.9 No Third -Party Beneficiaries. It is the intention of the parties to this Agreement that no person who is not a party signatory to this Agreement shall, under a third -party beneficiary theory or otherwise, have any rights or interests hereunder, and no such other party shall have standing to complain of any parties' exercise of, or alleged failure to exercise, its rights and obligations under this Agreement. Section 11.10 Time of the Essence. Time is of the essence of this Agreement. Section 11.11 Notice. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid; sent by facsimile transmission; or given to a nationally recognized overnight courier service for next business day delivery and addressed as follows: If to Developer: Hutch Uptown Commons, LLC 6789 Old Viking Blvd NW Nowthen, MN 55303 Attn: Matt Ward If to City: City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 Attn: City Administrator The above addresses may be changed at any time by the parties by notice given in the manner provided above. The parties agree that electronically reproduced signatures such as by facsimile transmission are valid for execution or amendment of this Agreement and that electronic transmission/facsimile is an authorized form of notice as that term is used in this Agreement. Section 11.12 Recordation. Concurrently with the execution of this Agreement, the parties shall execute and record a memorandum of Agreement substantially in the form attached hereto as Exhibit F. Developer shall be responsible for all costs of recordation of such memorandum of Agreement. Section 11.13 Assignability of Agreement. This Agreement may be assigned only with the written consent of the City. 131Page EXECUTED ON: HUTCH UPTOWN COMMONS, LLC, a Minnesota limited liability company This day of 2021 By: Name: Matt Ward Title: Sole Member Title: Sole Member HUTCH UPTOWN COMMONS, LLC STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2021, by Matt Ward, the Sole Member of Hutch Uptown Commons LLC, a Minnesota limited liability company, which is the Manager of Hutch Uptown Commons, LLC, a Minnesota limited liability company, on behalf of the limited liability company. Notary Public 141Paae EXECUTED ON: This _ day of , 2021 STATE OF MINNESOTA ) )ss. COUNTY OF MCLEOD ) CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator The foregoing instrument was acknowledged before me this _ day of , 20 by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: 1-1 15 Exhibit A Legal Description Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest corner of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. A-1 Exhibit B Concept Site Plan [Appended behind this cover page] B-1 Exhibit C Minimum Improvements 15-unit townhome development C-1 Exhibit D Form of Quit Claim Deed (Top 3 inches reserved for recording data) QUITCLAIM DEED Business Entity to Business Entity eCRV number: DATE: .2021 DEED TAX DUE: $[... ] FOR VALUABLE CONSIDERATION, CITY OF HUTCHINSON, a municipal corporation and political subdivision of the state of Minnesota ("Grantor"), hereby conveys and quitclaims to HUTCH UPTOWN COMMONS, LLC, a limited liability company under the laws of Minnesota ("Grantee"), real property in McLeod County, Minnesota, legally described on attached Exhibit A together with all hereditaments and appurtenances belonging thereto (the "Property"). Check here if all or part of the described real property is Registered (Torrens) ❑ This Deed conveys after -acquired title. Grantor warrants that Grantor has not done or suffered anything to encumber the property. The Property is conveyed subject to the terms of that certain Development Agreement dated [, 2021] between Grantor and Grantee. Check applicable box: ❑ The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: [...].) ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. D-1 GRANTOR: CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator STATE OF MINNESOTA COUNTY OF MCLEOD ss. The foregoing instrument was acknowledged before me this _ day of , 20 , by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: 1-1 D-2 Exhibit A to Quit Claim Deed Legal Description Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest corner of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. E-1 Exhibit E Form of Certificate of Occupancy A. HUTCH UPTOWN COMMONS, LLC, a Minnesota limited liability company ("Developer"), pursuant to the Development Agreement with the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the State of Minnesota ("City"), dated , 2021 ("Agreement"), has agreed to plan, design, finance, acquire, develop, and construct certain improvements on the property legally described on Schedule I attached hereto as more particularly described in the Agreement. B. Developer has substantially completed construction of the Private Improvements as required under the Agreement. C. The issuance of this Certificate of Occupancy by the City is not intended nor shall it be construed to be a warranty or representation by the City as to the structural soundness of Private Improvements, including, but not limited to, the quality of materials, workmanship or the fitness of the Private Improvements for its proposed use. NOW THEREFORE, this is to certify that all construction and other physical improvements specified to be done and made by Developer with regard to the Private Improvements have been substantially completed, and the provisions of the Agreement imposing obligations on Developer to construct the Private Improvements as required under the Agreement, are hereby satisfied and terminated, and the Recorder in and for McLeod County, Minnesota is hereby authorized to record this instrument, to be a conclusive determination of the satisfactory termination or said provisions of the Agreement. [Remainder of page intentionally blank.] E-2 Dated: 120 EXECUTED ON: This day of 12021 CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator STATE OF MINNESOTA COUNTY OF MCLEOD ss. The foregoing instrument was acknowledged before me this_ day of , 20 , by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public E-3 SCHEDULEI Legal Description Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest corner of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. F-1 Exhibit F Form of Development Agreement Memorandum MEMORANDUM OF DEVELOPMENT AGREEMENT THIS MEMORANDUM OF DEVELOPMENT AGREEMENT ("Memorandum"), is made this day of , 2021 by and between the HUTCH UPTOWN COMMONS, LLC, a Minnesota limited liability company ("Developer") and the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the state of Minnesota ("City"): WITNESSETH: WHEREAS, Developer and the City entered into that certain Development Agreement dated 2021 (the "Agreement"), whereby Developer agreed to construct certain improvements (the "Improvements") upon the real property located in the City of Hutchinson, McLeod County, Minnesota and legally described on the attached Exhibit A (the "Property"); and, WHEREAS, in accordance with the terms of the Agreement Developer has agreed to construct the Improvements; and, WHEREAS, the Agreement contains certain obligations, covenants and restrictions as further set forth therein; and WHEREAS, the City and Developer desire to give record notice of said Agreement. NOW, THEREFORE, in consideration of the foregoing, the City and Developer agree as follows: 1. Minimum Improvements. The Developer has agreed to construct the Improvements in accordance with the terms of the Agreement. 2. Effect of Memorandum. This Memorandum is intended to provide notice of the fact of the existence of the Agreement and is not intended to create a legally binding agreement, therefore in the event of a conflict between the terms of the Agreement and this Memorandum, the terms of the Agreement shall control in all respects. 3. Other Terms and Conditions. All other obligations, covenants, terms and provisions set forth in the Agreement are hereby incorporated by reference, and made a part hereof. 4. Copy of Agreement. A copy of the Agreement is on file at the offices of the City. 5. Runs with the Land. The Agreement and the covenants set forth therein shall run with title to the Property and shall be binding upon all present and future owners and occupants of the Property. [Signature pages follow.] F-2 IN WITNESS WHEREOF, the parties have executed this Memorandum as of the date set forth above. EXECUTED ON: CITY OF HUTCHINSON This day of , 2021 By: Name: Its: Mayor By: Name: Its: City Administrator STATE OF MINNESOTA COUNTY OF MCLEOD ss. The foregoing instrument was acknowledged before me this _ day of , 20 by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public F-3 HUTCH UPTOWN COMMONS, LLC, a Minnesota limited liability company This _ day of 2021 By: Name: Matt Ward Title: Sole Member STATE OF MINNESOTA ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2021, by Matt Ward, the Sole Member of Hutch Uptown Commons LLC, a Minnesota limited liability company, which is the Manager of Hutch Uptown Commons, LLC, a Minnesota limited liability company, on behalf of the limited liability company. Notary Public F-4 EXHIBIT A Property Lots 1, 2, 3, 4, 5 Block 41, North Half Hutchinson and Lots 9 & 10, Block 42, North Half Hutchinson, Excepting therefrom that part of Lot Ten (10) described as follows: Beginning at the southwest corner of said Lot 10, Block 42, North half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning. Exhibit G Estimated City Development Costs City's Qualified Costs through 6/30/2021 NO ITEM COST 1 * Property acquisition (clinic site) $225,936.00 2 * Demolition of existing building / site stabilization (clinic) $23,331.00 3 * 2016 Property Taxes (clinic) $16,020.93 4 * Environmental Inspection & Testing (clinic) $1,195.00 5 * Abatement Services (clinic) $2,980.00 6 * Hutch Utilities — remove gas service (clinic) $364.18 7 * Newspaper publications for Services $121.26 8 * Ehlers —TIF 4-16 startup professional fees $10,000.00 9 * McLeod County TIF establishment fee $100.00 10 * Interest expense — Interfund loan clinic site expenditures (SHOPKO TIF) TBD 11 * Property acquisition (Franklin Street house) $121,320.00 12 * Newspaper Publications for Services (Franklin house) $178.75 13 * Misc. Expense — bank fee for certified check for title company (Franklin) $5.00 14 * Interest expense — Interfund Loan Franklin Street House (DNTN loan fund) TBD 15 * Levee Area Walkway Alternatives Study (SEH) $14,997.94 16 * Ehlers —TIF District 4-16 Modification professional fees $9,000.00 17 * Environmental Inspection & Testing (Franklin House) $2,870.00 18 * Abatement Services (Franklin House) $3,666.00 19 * Remove gas service (HUC) — Franklin House $350.85 20 * Demolition / site stabilization (Franklin House) [TBD] TOTAL $487,872.15 *Denotes Qualified Cost reimbursable with tax increment revenues. The City estimates that approximately $500,000 of the total Qualified Costs will be reimbursed with tax increment revenues. ICSI HUTCHINSON CITY COUNCIL Cityaf Request for Board Action 7A =-z7 Agenda Item: Water & Wastewater Preliminary Rate Structure & Methodology Department: PW/Eng LICENSE SECTION Meeting Date: 7i27/2021 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As reviewed and discussed at the recent City Council workshop meeting (July 13, 2021), City staff believes that the proposed Water and Wastewater rate approach and methodology is appropriate and should be finalized prior to the preparation of corresponding enterprise fund 2022 budgets later this fall. Per the attached workshop presentation materials, we propose that Council approve the preliminary Water and Wastewater rate structures as outlined on pages #22 and #26 (Sanitary Sewer Rate Tables and Water Rate Tables, respectively). At this meeting, City staff will provide an outline of the upcoming utility user outreach and input process that will be administered prior to the City Council ultimately considering the adoption of these rates (possibly the Council's last meeting in September or first meeting in October). BOARD ACTION REQUESTED: Approval of Preliminary Water & Wastewater Rate Structure & Methodology 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: City of Hutchinson Water & Sewer Rate Study July 13, 2021 i SEH Karen Cavett Water & Sewer Rate Study • Background information • Goals • Existing Water Rate Structure • Water Conservation Rate Structures • Existing Sewer Rate Structure • Recommendations SEH Building a Better World for All of Us® Water & Sewer Rate Study Background Data * Historical water demand (gallons/day) • Projected population growth • Projected commercial & industrial growth • Water Use: — Single Family — Multi -Family — Commercial — Industrial SEH ing a Better Wog forAll of Us® Water & Sewer Rate Study Background Data • Historical water demand(gallons/day) 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 /k SEH Monthly Water Use —Water Demand 2015* —Water Demand 2016 —Water Demand 201 * Average Monthly Flow Year Total Gallons per Month 2015 506,960 42,250 2016 487,900 40,650 2017 495,480 1 41,290 Select lower flow year to model projected income Building a Better Wo' ! for All of Us® Water & Sewer Rate Study Background Data 2017 Total Sewer Sold By Customer Class [1000 gal] ■ RES-CONDO 2,874 1% RES- APARTMENT 45,492 11% i 140 NDUSTRIAL 87,951 22% ■ RES-DUPLEX ' RES-MOBILE 3,663 HOME 12,476 1% 3% COMMERCIAL 68,767 17% RESIDENTIAL 177,947 45% Total Water Use: 61 % residential SEH . - . Water & Sewer Rate Study Goals: • Promote water conservation • Comply with state mandated requirements: Minnesota Statues, Section 103G.291 Requires public water suppliers serving more than 1,000 people to adopt demand reduction measures, including a water conservation rate or a uniform rate with a conservation program • Provide fair and equitable rates • Generate sufficient revenue stability - Define revenue requirements for the next 5 years - Establish a long-range plan (2026 local sales tax expires) SEH Building a Better World for All of Us® Current Water Rate Structure Base Charge +Usage Charge ($/1000 gal) Base Charge = $7.35 Usage Charge = — Residential/Retail to 150,000 gal/month = $ 4.34 — Commercial to 150,000 to 3,000,000 gal/month = $3.18 — Industrial over 3,000,000 gal/month = $2.36 Current Rate Structure: Decreasing Block A SEH BlAkding a Better World for All of Us® Recommended Rate Structure After considering a variety of rate structures, the proposed rate structure for • Water consists of: — Base (availability) charge — Commodity charges, increasing block (tiered) for residential — Commodity charges, flat rate for non-residential • Sewer consists of: — Base (availability) charge — Commodity charge (flat) based on monthly water use A — Loading charges SEH Building a Better World for All of Us® Water & Sewer Base Charge • Residential — Centered around residential equivalent unit (REU). — Normalizes water use by comparing customer use to a typical single-family residential customer. — Fair and equitable. — One REU = 4,000 gallons/month • Single Family Residential — One single family customer = one REU — Same as current rate structure A SEH Building a Better World for All of Us Water & Sewer Base Charge • Multi -Family Residential — Assign one REU to each unit served by a connection. — Apply a reduction multiplier to account for Multi- family customers using less water. • One multi -family REU = 2,600 gallon/month • 65% of the average single-family water use. - One multi -family residential unit = 0.65 REU — Change from current rate structure, which bills by the connection. A SEH Building a Better World for All of Us Water & Sewer Base Charge Commercial/Industrial — Assign a multiplier based on the meter size, water meter equivalent factor. — American Water Works Association (AWWA), based on meter capacity relative to a residential meter. 3/4 1 3 16 1 2.5 4 25 1.5 5 6 50 2 A SEH :, Water & Sewer Base Charge • Commercial/Industrial — May use less than the capacity of the meter, but the City is required to provide the capacity for that meter size regardless of how much water is used. — Encourages the right sizing of the meters and improving the capacity of the system. — Change from current rate structure, which bills by the connection. A SEH Water Commodity Charge • Residential — Increase Block — blocks/tiers base on water use, once volumes used reach the next block/tier, a higher rate is applied to that use. 0 to 5,999 gallons 6,000 to 11,999 gallons Greater than 12,000 gallons 25% Rate Increases between blocks A SEH Building a Better World for All of Us Water Commodity Charge • Residential — Encourages conservation by starting the second block at the greatest difference between warm weather use and the base flow. — Fair and equitable by including about 90% of the single-family customers in the first block. J Multi -family rates will be determined based on the average water use per customer (REU). — Change from the current rate structure, which is a decreasing block. A SEH Building a Better World for All of Us® Water Commodity Charge I; w D O c a /k SEH Water - Cumulative Percent of Single FamilyAvg. Monthly Demand vs Base Avg. & Warm Avg. 2017 - -Annual Average 17 -Base Average 17 (Oct -Apr) —Warm Average 17 (May -Sep) 100% 90% I I I 80% I I I I 70% I I 60% I I 50% I I I I 40% I I I I 30% I I I I 20% I I 10% Block 1 I Block 2 I Block 3 0% 1 1 I I 1 I I I 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Gallons per Month (1000 Gallons) Building a BE :r World for All of Us® Water Commodity Charge • Commercial/Industrial — Flat Rate Structure, no change with volume of water used. — Fair and equitable by recognizing the water use by Commercial/Industrial is essential. — Change from current rate structure, which is a decreasing block. A SEH Building a Better World for All of Us® Water Commodity Charge Water- Cumulative Percent of Commercial Avg. Monthly Demand vs Base Avg. & Warm Avg. 2017 —Annual Average 17 Base Average 17 (Oct -Apr) —Warm Average 17 (May -Sep) 100% 90% 80% 70% N N 60% D 0 50% c a> 40% a 30% 20% 10% 0%- o Ip t0 00 00 00 ^p ^R 40 40 00 lop p 60 00 00 �o 0 00 00 00 J, Gallons per Month (1000 Gallons) /� SEH ing a BE :r Wo forAll of Us® Water Commodity Charge Water - Cumulative Percent of Industrial Avg. Monthly Demand vs Base Avg. & Warm Avg. 2017 —Annual Average 17 - Base Average 17 (Oct -Apr) —Warm Average 17 (May -Sep) 100% 90% 80% 70% w 60% w w 50% c U 40% a 30% 20% 10% 0% SEH 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Gallons per Month (1000 Gallons) Building a Better World for All of Us® Irrigation Meters • Meters available for irrigation, which will not be charged sanitary sewer base or commodity charges. • 25% increase to the commodity rates, because it is non -essential water use. • Annual administrative fee of $25. • Deduction applied May 1 through September 30. SEH ing a BE :r Wo forAll of Us® Sanitary Sewer Commodity Charge • Flat rate per volume of water, applied to all customers. • Billing based on each month's water consumption. — Encourages water conservation. • Change from current rate structure, which is a flat rate billed on the January and February average. SEH Building a Better World for All of Us® Sanitary Sewer Loading Charge Changes account for update to unique loading -related treatment requirements over the years. Addresses both treatment costs and the effect of proposed changes to sanitary sewer commodity charges. Applies to Significant Industrial Users (SIU). SEH �U�� Sanitary Sewer Rate Tables Sanitary Sewer Base 2021 2 Commodity 2021 2022 Connection $6.41 $10.00 All Users, per 1,000 gal $6.42 $6.42 REU $6.41 $6.50 Meter Size 3/4 $6.41 $10.00 1 $6.41 $25.00 1.5 $6.41 $50.00 2 $6.41 $80.00 3 $6.41 $160.00 4 $6.41 $250.00 6 $6.41 $500.00 A SEH BAilding a Better World for All of Us® A SEH Sanitary Sewer Rate Examples Residential - SF Total 2021 2022 1000 gal $12.83 $16.42 4,000 gal $32.09 $35.68 8,000 gal $57.77 $61.36 12,000 gal $83.45 $87.04 Residential - MF Total (3,000 al) 2021 2022 4 Units $83.45 $103.04 10 Units $199.01 $257.60 100 Units $1, 932.41 $2, 576.00 Building a Better World for All of Us® Sanitary Sewer Rate Examples Non -Residential Total 5,000 gal 50,000 gal 1,000,000 gal 2021 2022 2021 2022 2021 2022 1 inch $38.51 $57.10 $327.41 $346.00 $6,426.41 $6,445.00 1.5 inch $38.51 $82.10 $327.41 $371.00 $6,426.41 $6,470.00 2 inch $38.51 $112.10 $327.41 $401.00 $6,426.41 $6,500.00 3 inch $38.51 $192.10 $327.41 $481.00 $6,426.41 $6,580.00 4 inch $38.51 $282.10 $327.41 $571.00 $6,426.41 $6,670.00 6 inch $38.51 $532.10 $327.41 $821.00 $6,426.41 $6,920.00 A SEH Sanitary Sewer Rate Examples Base CornmodIty LoadsTotal SIU 1 —Current $76.92 $183,495.80 $38,804.12 $222,376.84 SIU 1 — Proposed $6,000.00 $183,495.80 $54,584.74 $244,080.54 SIU 2 — Current $76.92 $72,394.45 $610.70 $73,082.07 SIU 2 — Proposed $120.00 $72,394.45 $923.15 $73,437.60 SIU 3 — Current $76.92 $156,642.68 $206,801.21 $363,520.81 SIU 3 - Proposed $6,000.00 $156,642.68 $282,890.52 $445,533.20 Annual Fee A SEH Building a Better World for All of Us® Water Rate Tables Water Base . 2021 gngg Commodity 2021 2022 Connection $7.35 $9.00 Residential, per 1,000 gal REU $7.35 $5.85 Block 1 < 6,000 $4.34 $3.00 Meter Size Block 3 < 12,000 $4.34 $3.75 3/4 $7.35 $9.00 Block 4 >_ 12,000 $4.34 $4.69 1 $7.35 $22.50 Non -Residential, per 1,000 gal 1.5 $7.35 $45.00 All Usage $4.34-$2.39 $3.00 2 $7.35 $72.00 3 $7.35 $144.00 4 $7.35 $225.00 6 $7.35 $450.00 A SEH Buiidirig a Better World for All of Us® A SEH Water Rate Examples Residential - SF Total 2021 2022 1,000 gal $11.69 $12.00 ,000 gal $24.71 $21.00 8,000 gal $42.07 $34.50 12,000 gal $59.43 $49.50 Residential - MF Total (3,000 al) 2021 2022 Units $59.43 $59.40 10 Units $137.55 $148.50 100 Units $1,309.35 $1,485.00 Building a Better World for All of Us® Water Rate Examples Non -Residential Total 5,000 gal 50,000 gal 1,000,000 gal 2021 2022 2021 2022 2021 2022 1 inch $29.05 $37.50 $224.35 $172.50 $3,361.35 $3,022.50 1.5 inch $29.05 $60.00 $224.35 $195.00 $3,361.35 $3,045.00 2 inch $29.05 $87.00 $224.35 $222.00 $3,361.35 $3,072.00 3 inch $29.05 $159.00 $224.35 $294.00 $3,361.35 $3,144.00 4 inch $29.05 $240.00 $224.35 $375.00 $3,361.35 $3,225.00 6 inch $29.05 $465.00 $224.35 $600.00 $3,361.35 $3,450.00 Water Rate Examples Base Commodity Total SIU 1 —Current $88.20 $185,858.88 $185,947.0 SIU 1 — Proposed $5,400.00 $194,976.00 $200,376.0 SIU 2 — Current $529.20 $101,627.52 $102,156.72 SIU 2 — Proposed $14,580.00 $102,996.00 $117,576.0 SIU 3 — Current $176.40 $107,246.16 $107,422.5 SIU 3 - Proposed $5,940.00 $97,236.00 $103,176.0 Annual Fee A SEH J 5FH Water and Sewer Rate Examples Residential - SF ���.. Total (3,000 al) 2021 2022 Units $142.88 $162.44 10 Units $336.56 $406.10 100 Units $3,241.76 $4,061.00 Building a Better World for All of Us® Water and Sewer Rate Examples =A& .-Reside5,000 Total gal 50,000 gal 1,000,000 gal 2021 2022 2021 2022 2021 2022 1 inch $67.56 $94.60 $551.76 $518.50 $9,787.76 $9,467.50 1.5 inch $67.56 $142.10 $551.76 $566.00 $9,787.76 $9,515.00 2 inch $67.56 $199.10 $551.76 $623.00 $9,787.76 $9,572.00 3 inch $67.56 $351.10 $551.76 $775.00 $9,787.76 $9,724.00 4 inch $67.56 $522.10 $551.76 $946.00 $9,787.76 $9,895.00 6 inch $67.56 $997.10 $551.76 $1,421.00 $9,787.76 $10,370.00 Questions? SEH HUTCHINSON CITY COUNCIL Cityaf Request for Board Action 79 =-n-? Agenda Item: Water Conservation Plan Implementation - Drought Warning Department: PW/Eng LICENSE SECTION Meeting Date: 7i27/2021 Application Complete N/A Contact: Eric Levine/John Paulson Agenda Item Type: Presenter: John Paulson Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency I' r Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff received notification from the Minnesota Department of Natural Resources to begin implementation of Water Conservation Plans in response to the widespread drought in the state. The State Drought Plan specifies actions for water suppliers to take in response to the drought warning. The actions in Stage 1 Demand Reductions of the City of Hutchinson Water Conservation Plan include the following: - Restriction on lawn and garden sprinkling, irrigation, and personal car washing between the hours of 9am and 6pm - Inform customers of this water conservation request and restriction City website, Facebook page, Press Release in Hutchinson Leader Meet with large water users (using > 10% of total City use) Preparation of information needed to implement Stage 1 of the City Water Conservation Plan is already undervov. The water use restriction is meant to reduce water waste that occurs during non -essential water use activities. Irrigation is not being banned, rather it is being restricted to periods of time that provides the most benefit to vegetation. Other water conservation practices, such as water reuse are encouraged but must be done in accordance with state and local rules. DO NOT use wastewater for irrigation or other outdoor uses. City staff will be available to answer any questions that you may have. BOARD ACTION REQUESTED: Approval of Implementing the City of Hutchinson Water Conservation Plan Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: MDEPARTMENT OF NATURAL RESOURCES July 16, 2021 Dear water suppliers in areas with severe drought conditions, With more than 50 percent of Minnesota experiencing severe drought and some areas experiencing extreme drought, the Minnesota Department of Natural Resources (DNR) has determined that the state is now in the drought warning phase. With this designation, the DNR and others are taking additional steps such as restricting some water uses. Water Supplier Actions Needed The State Drought Plan specifies actions that water suppliers must implement once the state is elevated to drought warning phase. 1. Population over 1,000 - Public water suppliers implement appropriate water use restrictions contained in their Water Supply Plan. a. Your plan can be found in your MPARS account, under the Attachments tab. b. Begin implementing your Water Supply demand reduction measures in Plan Part 2 (Tables 18, 19). These actions can be supported by measures that are identified in the Water Supply Plan, Part 3 Water Conservation. 2. All Water Suppliers - Public water suppliers will implement water use reduction actions with a goal of reducing water use to 50% above January levels. a. For example: A city uses 4 million gallons of water in January, and normally uses 6.8 million in August. During the drought warning phase, they should only use 6 million gallons in August. b. Websites with water conservation messages: DNR Water Conservation webpage and https://www.ready.gov/drought. Significant demand reduction is achievable by restricting or banning non -essential outdoor water use, especially lawn irrigation, power washing buildings, car washing and swimming pool filling. Encourage customers to fix leaks, install water saving devices and water -efficient appliances. Have conversations with your biggest water users and ask them how they might reduce water use, especially during peak times. Use a variety of communication methods: Large exterior signs around the community, mailing/emailing all customers, radio station announcements, Facebook posts or other social media, and a news release to any local media. Explain the critical situation and that you need everyone's help. Ask customers to conserve water as much as possible. Other Suggestions: • During times of severe drought, monitor your water levels closely. Keep in mind that water quality may be impacted by increased concentrations of contaminants. • Please alert your local DNR hydrologist to any water supply concerns or issues during the summer. • Si to receive GovDe livery updates about drought in Minnesota, drought preparations and response, and important ways to conserve water. Best regards, Randall Doneen Conservation Assistance and Regulations (CAR) Section Managers Ecological & Water Resources Phone: 651-259-5156 Email: randall.doneen@state.mn.us mndnr.gov City of Hutchinson Water Supply Plan — Water Conservation Plan activities summary Table 22. Short and long-term demand reduction conditions, triggers and actions Protect surface water flows O Low stream flow conditions O increase promotion of conservation O Reports of declining measures NA wetland and lake levels O Other. O other. Shoat -tam demand reduction O Extremely high seasonal Enforce the critical water deficiency Mess than 1 year water demand (more than ordinance to restrict or prohibit lawn double winter demand) watering, vehicle washing, golf course O Loss of treatment capacity: and park Irrigation & other nonessential 10 —15% drop In pump output uses. O tack of water in storage O Supply augmentation through O State drought plan � - Water alloation: Stage I: it ban non- 0 Well fnterferenoe essential water use between 9 am and 6 Other. Supply shortage: S pm, Stage 2 = enforce odd -even lawn or 10 foot drop in static irrigation, ban car washing, restrict elevation, industrial and most large commercial by 10% of average daily usage. Meet with high water users to discus users contingerKy plan. Appendix 7 Cite of Hutchinson Critical Water Deficiency Ordinance and Water Emergency Enforcement Response Plan 4 52 06 SHORTAGES; RESTRICTED USES AND HOURS. (A) Whenever the city shall determine that a shortage of water threatens the city, it may entirely prohibit water use or hmit the times and hours during witch water may be used from The city water system for lawn and garden spnnldm& tmgation, car washing, air conditioning and other uses, or either or any of them It is tmlawfid for any water conwiner to cause or permit water to be used in violation of this detemmnation after public announcement thereof has been made through the news media specifically uidacating the restrictions thereof (B) The City Administrator or his or her designee shall have the authority to declare the terms and conditions of the water use restrictions, and the restrictions shall become effective immediately following public annotnicesuent of the same. The restrictions shall be confirmed by the City Council at the next regularly scheduled meetrno the"ll' i; 89 Code, J 3.20) (Am. Ord 97-197, passed 7-8-97) Penal see § 10 99 WATER EMERGENCY ENFORCEMENT RESPONSE PLAN A. ENFORCEMENT RESPONSE PLAN Non-compliance issues can be classified under three categories: • Banned Water Use Violations • Illegal Connection Violations • Water Conservation Violations Water staff will be responsibie for Implementation of this ERP and will discover a non- compliance issue during routine inspections of the distribution system or through review of reports and testing data. Communications will follow between the responsible party and water staff to remedy the Issue. Depending on severity, water staff will send a notice of violation and request a response of what caused the non- compliance and what the responsible party will do to correct and prevent any future incidents. Non -compliant water use that causes Hutchinson Water Plant to violate their MnDNR Water Appropriations Permit will be subject to the enforcement measures described In the Hutchinson City Code of Ordinance and further legal action as deemed necessary. The water staff will work with the responsible party to ensure that measures are Implemented to avoid further non-compliance. MEETING MINUTES HUTCHINSON SUSTAINABILITY ADVISORY BOARD Monday, April 19, 2021 5:30 p.m. Hutchinson City Center 1. CALL TO ORDER 5:30 P.M. The April 19, 2021 Sustainability Advisory Board was an in -person meeting called to order by John Paulson at 5:30 p.m. Board members in attendance were, John Lofdahl, Jeremy Carter, Nathan Winter, Brandon Begnaud. Board members absent were Andy Nissen. Also present were John Paulson, City Project/Environmental/Regulatory Manager, John Olson, City Public Works Manager, Donovan Schuette, City Arborist. 2. PLEDGE OF ALLEGIANCE 3. ELECTION OF OFFICERS A. CHAIR — Jeremy Carter was nominated for Chairman B. VICE CHAIR — Nathan Winter was nominated for Vice Chairman Approved unanimously 4. CONSENT AGENDA 5. NEW BUSINESS A. CONSIDERATION OF GRANT CONTRACT WITH MINNESOTA DNR FOR LAKE/RIVER IMPROVEMENTS John Paulson addressed the Board and gave a brief overview of the project and a status update regarding the DNR Grant. B. MS4 SWPPP SUBMITTAL TO MPCA John Paulson addressed the Board and gave a brief overview of the MS4 SWPPP application and information related to TMDL Waste Load Allocations. 6. UNFINISHED BUSINESS 7. COMMUNICATION FROM STAFF A. FORESTRY UPDATE Donovan Schuette addressed the Board and gave an overview of the 2020 Forestry Program. The overview included information about Emerald Ash Agenda Hutchinson Planning Commission April 15, 2014 Page 2 Borer and efforts underway to treat for the insect as well as diversification efforts. John Olson added information about current City funds available for diversification and methods to prioritize removals and replacements. B. UPCOMING MEETINGS John Paulson noted that the Board will plan on meeting the third Monday of each month. A meeting request will be sent out two weeks in advance of a meeting. In the event that a meeting will not be held a notification will be sent out at the same time. An agenda will be sent 1 week in advance with packet information sent out by the end of the week before the meeting. C. GREEN STEP CITIES ANNUAL REPORT John Paulson addressed the Board and gave a brief overview of the Green Step Cities Annual Report. A discussion was held about various aspects of the report and further development of best practices. D. HUTCHINSON UTILITIES 100% NET ZERO CARBON POWER SUPPLY Jeremy Carter provided an update on Hutchinson Utilities progress towards achieving a 100% net zero carbon power supply. How they achieve net zero through use of renewable energy purchases in combination with purchasing Renewable Energy Credits was also explained. 8. ADJOURNMENT Public Arts Commission MINUTES June 10, 2021 5:30 Zoom In attendance: Justin Beck, Morgan Baum, Brandon Begnaud, Steve Cook, Jackie Fuchs, Patrick Hiltner, Lynn Neumann Not in attendance: Dan Jochum (ex officio), Kay Voigt • Approve minutes from May 13th meeting o Correction Lynn's last name o Motion to approve Justin, seconded Jackie • Sculpture Stroll Update: o All pieces installed ■ Randy is looking at raising 'Hey, Mary Lou!" o Brochures — second printing ■ Need to get some at the Rec Center ■ Got them to all the hotels o Requests for artist payments have been submitted, 8 have been paid, last 3 timing o Ribbon cutting? ■ Jackie and Morgan will stage a cutting o Other? ■ New competition: Delano has added a Stroll ■ Jackie disconnected the Instagram account from also posting on Facebook. o Finances ■ Seed money: $15,985.10 balance, still need to pay for stainless steel for top of blocks (shared expense with city). Waiting for receipts ■ $15,000 annual funding allocation: $4,041.84 (*we started-$2,083 from 2020 due to purchases), but we have $3,978 bills to be paid (3 more artist payments, People's Choice award, second run of brochures and nameplates. Remaining $463. • Darwin Wolf maintenance proposal o Artists who created Fountain of Life, initially sent a note to Kay Voigt and then talked to Steve. o Darwin met with Randy, Sara, and Steve about restorations o Maintenance is currently being done by Randy, but he is very busy. Lynn and Sara are in favor of hiring someone. o We have a $5,000 annual capital improvement fund set aside for maintenance of public arts (can roll over up to $10k), Darwin's proposal would fit in those parameters. o Darwin estimated $575K in value of our bronze public art. o Staff training would be included. o Morgan moved, Jackie Seconded that we recommend to city staff to hire Darwin for year one of his proposal. Approval was unanimous. ■ Lynn to check to see if there are any requirements in past contracts about who does maintenance. • Mary Hodson community murals idea update o No news, Justin will stay in touch with Mary. • Bridge/underpass mural idea o Lynn saw the mural in a conference magazine and shared with the PAC as a possible idea. o Location everyone thought would be nice is out by the School Road underpass o Is graffiti a problem under there? 3M makes anti -graffiti film so maybe we can work with them. o What would be the process for going forward? ■ Talk to PRCE & City Staff, Council ■ Consider desired "theme". ■ Call for proposals. ■ Create a selection plan. o Everyone keep talking about it • Future meeting format o Everyone was comfortable with going back to in person meetings. o Library meeting room is still unavailable. Lynn offered Rec Center, depending on their schedule. o Next meeting 5:30pm at the Rec Center, Thursday, July 8th • Board membership update o Kay is not here, but her 2nd term is up August 2021 - start brainstorming. o Steve is still considering his future, does not want to chair after this fall. 0 Kay Johnson is interested in joining the commission, Melissa Starke will have her fill out an interest form. • Other? o Lynn has connected with Fern Cloud (great, great, granddaughter of Little Crow) about the Little Crow statue, scheduling a phone call; a PRCE board member may have some connections to they can reach out to. 0 Seat of Sound, Randy is working on getting it up, will update the brochure when complete. 0 2020 made 1250 brochures; 2021 already made 1,750 brochures, will likely need more. o Chatter in the community about pooling (hahaha) funds to buy the shark ($55K) 6:05pm moved to adjourn HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Teleconference Call (GoToMeeting) Tuesday, June 15, 2021, 7:00 AM Minutes CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order via telephone. Members Present: Gary Forcier, Steve Jensen, Robin Kashuba via telephone, and Kim Merwin via telephone. Staff Present: Jean Ward and Judy Flemming. a. Approve the Hutchinson HRA Regular Board Meeting agenda and any agenda additions and/or corrections. Gary Forcier moved to approve the agenda as presented. Kim Merwin seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON MAY I8, 202I Gary Forcier moved to approve the Minutes of the regular board meeting and Robin Kashuba seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. FINANCIAL REPORTS Gary Forcier moved to approve: a. City Center General Fund payments of $16,017.70 for checks 9188 to 9191 b. Park Towers operating account payments of $29,713.73 for checks 15367 to 15396. c. April 30, 2021 Park Towers financial statements d. May 31, 2021 City Center financial statements Kim Merwin seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Jensen — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. 4. PARK TOWERS a. FYI: Park Towers June Newsletter b. Park Towers operations update 1) Box Score Vacancy Report: Two vacant apartments (1 handicapped accessible) as of June 9, 2021 2) 2021 CFP funds available July 1, 2021 after Jean worked with both the D.C. & local HUD offices to get it setup. 5. REVIEW OF DRAFT CITY CENTER BUDGET Jean Ward reviewed with the Board the draft City Center Budget. The budget will be finalized once the new Executive Director is hired. 6. CONSIDERATION OF CITY HILP REHAB PROJECT Steve Jensen moved to approved the City HILP Rehab project for 636 Glen Street SW. Kim Merwin seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Jensen — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. June 15, 2021 Minutes Pagel of 2 7. CONSIDERATION OF RESOLUTION #2021-3 ALLOWING EMERGENCY REPAIRS TO COMMENCE UPON LOAN REVIEW COMMITTEE APPROVAL Gary Forcier moved to approve Resolution #2021-3 Allowing emergency repairs to commence upon Loan Review Committee approval. Steve. Jensen seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Jensen — Aye; Kashuba -- Aye & Merwin — Aye. The motion carried unanimously. CONSIDERATION OF 2021 HUTCHINSON HOUSING NEEDS AND HRA CASH BALANCE REPORT The Board discussed ideas for housing programs that will be relevant to the housing needs of Hutchinson. 9. REVIEW OF CITY WINDSHIELD SURVEY COMPARISON - FYI 10. CONSIDERATION OF REVISION TO LIVE AND WORK IN HUTCHINS_ ON GRANT PROGRAM Steve Jensen moved to approve the revision to ,the Live and Work in Hutchinson Grant Program. Gary Forcier seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Jensen — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. 11. HIRING PROCESS EXECUTIVE DIRECTOR a. The Board feels that the Hiring Committee members approved last month is all that is needed. 12. COMMUNICATIONS • Gary Forcier made a motion to resume having in -person HRA Board Meetings next month. Steve Jensen seconded. Roll Call: Kotlarz — Aye; Forcier — Aye; Jensen — Aye; Kashuba — Aye & Merwin — Aye. The motion carried unanimously. 13. ADJOURNMENT Steve Jensen moved to adjourn and Gary Forcier seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director ary For ier, Secretary/Treasurer June 15, 2021 Minutes Page 2 of 2 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, June 15, 2021 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The June 15t', 2021 Planning Commission meeting was called to order by Chairman Lofdahl at 5:30 p.m. Members in bold were present Chairman Lofdahl, Vice Chairman Hacker, Commissioner Garberg, Commissioner Wirt, Commissioner Sebesta, Commissioner Hantge, and Commissioner Janssen. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, John Olson, City Public Works, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney, Tom Gifferson, Police Chief, Andrea Schwartz, City of Hutchinson Permit Technician and Madison Newcomb, City of Hutchinson Planning and Building Assistant. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED May 18, 2021. Motion by Commissioner Garberg to approve May 18, 2021 meeting minutes. Second by Commissioner Wirt. Motion approved. 4. PUBLIC HEARINGS A. CONSIDERATION OF A SKETCH PLAN AND REZONE A PROPERTY FROM C-3 TO MXD LOCATED AT 126 & 135 FRANKLIN ST NW. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Wirt asked what the maximum height in that area is. Mr. Jochum responded with 35 ft, with options to look at variances to make the project happen. Will have to work with the DNR since it is located within the shoreland district/floodplain. In order to make something like this work in the area, the project goes more vertical. Commissioner Wirt noted these drawing are very preliminary but asked if there was a way to have some citizen input on design. Jochum responded that during the site plan process, the community can come and voice opinions. He also remarked that this project will look like it belongs in Hutchinson and will be well done. Minutes Hutchinson Planning Commission June 15, 2021 Page 2 Commissioner Lofdahl asked if this would be the only MXD use development, but Mr. Jochum responded the property with the Highfield Apartments by Kwik trip is MXD use. He also commented that MXD use is really popular among cities. Commissioner Lofdahl was wondering if this was considered spot zoning. Mr. Jochum noted that since this is included in our comprehensive plan, it is not considered spot zoning. Commissioner Hacker inquired about the Franklin house and how it is in the floodplain and how this will get done. Mr. Jochum responded that with a little big of fill, 6 inches or so, by the time the foundation goes in it is out of the floodplain. There will be a survey and elevation to ensure it is out of the floodplain. Greg Witt, 125 Glen St, owns 3 houses in the area being looked at for redevelopment. He remarked that he agrees with the rezoning of the area. He noted a couple of items: firstly, the initial appraisals done are now 2 years old and would have to get redone. Secondly, these properties are in the floodplain. Thirdly, between the second house next to the river and his house — there is a sanitary sewer line running through the property. Mr. Jochum noted that engineering is aware of that piece of the project, and are looking at ways to realign that. Janice Rannow, 135 Glen St NW, manages apartments and noted that there are no vacancies. She asked if the sketch plan that was presented was for both the clinic site and the group home. Mr. Jochum responded that this is for both properties, and depending on the FEMA grant it could encompass more of that area. Rannow also asked if the FEMA grant does not go through if there will be some sort of sight barrier, like a tree line, along their backyards. Mr. Jochum noted there will be work done with the elevation and number of units, along with exploring other opportunities if that grant doesn't go through. Greg Witt noted that if the FEMA grant goes through, their properties wouldn't be developed, it would be park ground. Mr. Jochum responded that the project would need ponding and green space. Commissioner Lofdahl mentioned we are limited to 25% lot coverage. Mr. Jochum noted without further stormwater treatment that is true, but it is virtually impossible to do a project of this size at 25% impervious coverage. Motion by Commissioner Wirt, second by Commissioner Lofdahl close hearing at 5:51 p.m. Motion by Commissioner Hacker to approve. Second by Commissioner Sebesta. Motion approved. Item will be on City Council consent agenda on 06/22/2021 & 7/13/2021. B. CONSIDERATION OF AN AMENDMENT TO THE ZONING ORDINANCE FOR THE C-3 DOWNTOWN ZONING DISTRICT REGARDING CONDITIONALLY PERMITTED USES. Minutes Hutchinson Planning Commission June 15, 2021 Page 3 Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Sebesta remarked that it is a good plan. Mr. Jochum responded that there could be 100 employees down there. Commissioner Wirt mentioned there could be a tradeoff if we could find a use that would either generate retail sales or community involvement and activity to draw more people into that area than light manufacturing would. Mr. Jochum noted that those users aren't showing interest in that building. The property went to auction and the people bidding on it are investors. There is more risk waiting for someone to come along. Commissioner Lofdahl noted that if it is light industrial there will be rules on parking, and there is opportunity for more development on that lot. Commissioner Hacker remarked that this is a great use, the market is not supporting this type of property and that this will allow some alternative uses for that property. Mr. Jochum noted that he has spoken to people that do retail leasing and that the price they sold that building for someone would have bought it if they wanted it. Commissioner Garberg noted that guests of Hutchinson always remark how beautiful and vibrant our town is, he doesn't believe light manufacturing right on main street on the river would fair well. Jochum responded that OHLY is currently downtown and on the river. Commissioner Garberg said if it was off of main street he wouldn't have a problem with it. Mr. Jochum responded that the business looking to go in there will have a very nice -looking building. The risk is a lot higher to not do anything, the building would potentially just sit there since there are no users in town. Commissioner Wirt mentioned that our downtown is struggling with customers and light manufacturing with a fixed number of employees don't do a lot of shopping. Mr. Jochum responded that retail in downtown Hutchinson, other than boutique shopping, is a thing of the past. Discussion continued on the location and potential outcomes of the property. Commissioner Garberg asked if the City has ever thought about buying the property. Mr. Jochum responded that the City has already extended its debt with the new police station. The City doesn't have the resources to buy each building and redevelop it. Commissioner Wirt would like to see a higher definition of what light industrial really is and what potential uses could be. Mr. Jochum responded that as of right now light manufacturing isn't allowed with a conditional use permit. With a conditional use permit, we can regulate so much more. Minutes Hutchinson Planning Commission June 15, 2021 Page 4 Discussion on current market trends with big box stores and development opportunities. Motion by Commissioner Sebesta, second by Commissioner Wirt to close hearing at 6:17 p.m. Motion by Commissioner Sebesta to approve, Second by Commissioner Hacker. Roll call vote was taken, Sebesta — Aye, Hacker — aye, Lofdahl — aye, Garberg — nay, Wirt - nay. Motion carried 3 votes to 2. Item will be on City Council agenda on 06/22/2021 for consideration of first reading of ordinance. 5. NEW BUSINESS A. NONE 6. UNFINISHED BUSINESS A. 7. COMMUNICATION FROM STAFF A. UPCOMING MEETINGS B. The month of May only saw one new house permit, expecting a short-term slowdown with material prices rising. 8. ADJOURNMENT Motion was made by Commissioner Sebesta to adjourn the meeting, second by Lofdahl. Meeting was adjourned at 6:20 p.m. c� HUTCHINSON CITY COUNCIL HINsif)Pi Request for Board Action A CITY ON PURPOSE. Quarterly Public Arts Commission Financial Update Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At the end of 2020, 1 started preparing quarterly financial reports for the Public Arts Commission. The goal is to inform the PAC on its expenditures and available fund balance to help in planning for future projects. I thought it would be good to present these reports to council as well so you can see how the funding is being spent. Total funds of $17,829 are available to the PAC as of June 30, 2021 The funding is broken down into two components as follows: 1) City council dedicates $15,000 annually from the Community Improvement fund for PAC operations. The June 2021 balance is $1,844. 2) City council set aside $25,000 of seed money for public art within the Public Sites fund. The June 2021 balance is $15,985. Attached is the June 2021 financial summary. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: Govern, Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A u __ HUTCHINSON A CITY ON PURPOSE PUBLIC ARTS COMMISSION - Fund Balance Summary as of June 30, 2021 2020 Carryover Fund Balance (2,082.99) 2021 Annual Funding 15,000.00 2021 Donations Received 1,000.00 2021 Expenditures (12,073.04) 2021 Fund Balance 1,843.97 City Council Seed Money Balance 15,985.10 613012021 Public Arts Fund Balance 17,829.07 EXPENDITURES: DATE VENDOR DESCRIPTION AMOUNT ARTIST HONORARIUMS & AWARDS 05/11/2021 Hilde DeBruyne 2021 Sculpture Stroll Honorarium 1,000.00 05/25/2021 Dale Lewis 2021 Sculpture Stroll Honorarium 1,000.00 05/25/2021 Ruth Gee 2021 Sculpture Stroll Honorarium 1,000.00 05/31/2021 Kimber Fiebiger 2021 Sculpture Stroll Honorarium 1,000.00 05/31/2021 Gail Katz -James 2021 Sculpture Stroll Honorarium 1,000.00 05/31/2021 Kyle Fokken 2021 Sculpture Stroll Honorarium 1,000.00 05/31/2021 James Pedersen 2021 Sculpture Stroll Honorarium 1,000.00 05/31/2021 Wolf Bronze LLC 2021 Sculpture Stroll Honorarium 1,000.00 06/22/2021 Bad River Artworks 2021 Sculpture Stroll Honorarium 1,000.00 06/22/2021 Jamie Lynn Weinfurter 2021 Sculpture Stroll Honorarium 1,000.00 06/22/2021 Timothy James & Aidan DeMarais 2021 Sculpture Stroll Honorarium 1,000.00 11,000.00 SCULPTURE STROLL ANNUAL COSTS 03/31/2021 Crow River Press 2021 Sculpture Stroll Brochures 475.17 06/22/2021 Crow River Press 2021 Sculpture Stroll Brochures 282.88 06/30/2021 Menards Pillar cap for Seat of Sound base 44.99 803.04 OTHER PAC COSTS 06/30/2021 Viking Signs "Hutch Public Arts" signage 270.00 270.00 TOTAL EXPENDITURES 12,073.04 CITY COUNCIL PUBLIC ARTS SEED MONEY 12/31/2020 Balance 17,517.60 3/9/2021 Vetter Stone Company Limestone Blocks for Sculpture Stroll (50% cost share) (1,532.50) Current Balance 15,985.10 cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. June 2021 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 7/27/2021 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: For Council review, attached are the June Financial Reports for the general fund and enterprise funds. Also attached is the June Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: Govern, Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT JUNE YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes 2,909,687 2,909,687 5,442,779 2,533,092 53.5 2,740,479 5,270,910 52.0 Other Taxes 10,868 91,588 305,000 213,412 30.0 72,226 305,000 23.7 Licenses & Permits 29,878 274,635 380,300 105,665 72.2 245,367 388,450 63.2 Intergovernmental Revenue 7,745 50,689 1,716,788 1,666,099 3.0 57,040 1,730,963 3.3 Charges for Services 285,019 1,158,159 2,786,834 1,628,675 41.6 806,440 2,790,585 28.9 Miscellaneous Revenues 52,370 121,429 246,250 124,821 49.3 109,097 245,500 44.4 Transfers -In - 466,798 2,723,191 2,256,393 17.1 466,798 2,666,191 17.5 Fines & Forfeitures 3,569 20,737 55,000 34,263 37.7 22,884 55,000 41.6 Capital Contributions - - 40,000 40,000 - - - - TOTAL REVENUES 3,299,136 5,093,722 13,696,142 8,602,420 37.2 4,520,332 13,452,599 33.6 Wages & Benefits 719,254 3,889,552 9,245,778 5,356,226 42.1 3,854,707 9,162,882 42.1 Supplies 126,960 436,140 882,622 446,482 49.4 345,542 858,150 40.3 Services & Charges 204,161 1,167,058 2,755,282 1,588,224 42.4 1,111,298 2,679,017 41.5 Miscellaneous Expenses 17,325 129,807 684,310 554,503 19.0 135,799 647,550 21.0 Transfers -Out - 54,075 108,150 54,075 50.0 52,500 105,000 50.0 Capital Outlay 8,554 18,170 20,000 1,830 90.8 - - - TOTAL EXPENDITURES 1,076,255 5,694,800 13,696,142 8,001,342 41.6 5,499,846 13,452,599 40.9 NET REVENUE 2,222,880 (601,078) - 601,078 (979,514) - REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 ACTUALS JUNE General Fund Expense by Department YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 3,050 17,228 50,099 32,871 34.4 18,143 52,344 34.7 City Administrator 35,948 210,463 491,611 281,148 42.8 201,382 459,709 43.8 Elections - - - - - 9,084 17,750 51.2 Finance Department 40,805 198,219 382,169 183,950 51.9 179,800 381,325 47.2 Motor Vehicle 21,369 127,031 251,241 124,210 50.6 120,224 266,912 45.0 Assessing - - 61,152 61,152 - - 61,152 - Legal 22,699 135,516 321,917 186,401 42.1 135,503 317,092 42.7 Planning 12,736 72,288 164,302 92,014 44.0 72,002 161,262 44.6 Information Services 33,867 281,177 587,903 306,726 47.8 261,197 600,314 43.5 City Hall Building 26,809 96,323 190,079 93,756 50.7 75,802 178,342 42.5 Police Department 288,627 1,613,111 3,607,758 1,994,647 44.7 1,568,274 3,549,011 44.2 Hospital Security 25,648 147,881 328,598 180,717 45.0 140,596 332,790 42.2 Emergency Management 4,505 10,358 17,280 6,922 59.9 10,004 12,280 81.5 Safety Committee - 9,364 11,210 1,846 83.5 9,525 11,200 85.0 Fire Department 32,313 180,902 369,510 188,608 49.0 161,438 360,455 44.8 Protective Inspections 23,071 135,009 326,560 191,551 41.3 134,064 309,570 43.3 Engineering 35,946 200,773 465,890 265,117 43.1 241,164 487,309 49.5 Streets & Alleys 111,521 672,275 1,588,741 916,466 42.3 717,154 1,565,147 45.8 Park/Recreation Administration 24,838 136,396 316,616 180,220 43.1 125,629 274,158 45.8 Recreation 26,603 120,790 260,435 139,645 46.4 88,669 255,586 34.7 Senior Citizen Center 5,357 22,472 93,715 71,243 24.0 28,329 92,499 30.6 Civic Arena 18,177 135,990 373,185 237,195 36.4 163,527 374,475 43.7 Park Department 111,864 446,178 994,819 548,641 44.9 360,776 987,146 36.5 Recreation Building 11,213 83,908 248,129 164,221 33.8 93,335 245,543 38.0 Events Center 21,052 119,125 275,259 156,134 43.3 100,985 268,922 37.6 Evergreen Building 3,228 12,581 30,725 18,144 40.9 10,059 30,725 32.7 Library 48,543 105,142 222,820 117,678 47.2 101,129 222,760 45.4 Waterpark 60,845 79,901 355,833 275,932 22.5 14,337 352,761 4.1 Cemetery 7,628 59,563 138,320 78,757 43.1 63,053 132,284 47.7 Airport 25,609 81,448 131,541 50,093 61.9 70,879 124,878 56.8 Unallocated General Expense (7,616) 183,390 1,038,725 855,335 17.7 223,785 966,898 23.1 TOTAL EXPENDITURES 1,076,255 5,694,800 13,696,142 8,001,342 41.6 5,499,846 13,452,599 40.9 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT JUNE YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 686,117 3,486,164 6,809,000 3,322,836 51.2 3,675,000 6,473,000 56.8 Miscellaneous Revenues 534 1,300 2,500 1,200 52.0 1,436 3,000 47.9 TOTAL REVENUES 686,652 3,487,464 6,811,500 3,324,036 51.2 3,676,436 6,476,000 56.8 Cost of Sales 530,370 2,687,850 5,159,602 2,471,752 52.1 2,798,261 4,871,710 57.4 Wages & Benefits 58,177 327,876 757,179 429,303 43.3 308,244 703,600 43.8 Supplies 2,213 7,735 22,600 14,865 34.2 8,716 22,600 38.6 Services & Charges 31,477 136,909 259,365 122,456 52.8 126,890 247,950 51.2 Miscellaneous Expenses 2 38 6,700 6,662 0.6 35 6,700 0.5 Transfers -Out - - 550,000 550,000 - - 500,000 - CapitalOutlay 6,153 15,000 8,847 41.0 15,000 Depreciation Expense - 77,000 77,000 - 82,500 Debt Service - - - - - - 128,228 - TOTAL EXPENDITURES 622,239 3,166,562 6,847,446 3,680,884 46.2 3,242,146 6,578,288 49.3 NET REVENUE 64,412 320,903 (35,946) (356,849) 434,290 (102,288) Year to Date Sales June Sales Comments 2021 2020 Change 2021 2020 Change Liquor Sales Revenue: Liquor 1,239,057 1,255,844 -1.3% 223,327 226,082 -1.2% Beer 1,687,379 1,815,342 -7.0% 369,733 393,297 -6.0% Wine 475,994 520,355 -8.5% 72,678 84,328 -13.8% Other 83,735 83,459 0.3% 20,379 18,825 8.3% Total Sales 3,486,164 3,675,000 -5.1% 686,117 722,533 -5.0% Customer Count 119,285 123,677 -3.6% 22,852 23,653 -3.4% Average Sale per Customer $29.23 $29.71 -1.6% $30.02 $30.55 -1.7% Gross Profit $798,314 $876,740 $155,747 $150,097 Gross Margin on Sales 22.9% 23.9% 22.7% 20.8% Our sales revenue comparison of 2021 to 2020 is going to look somewhat strange for a few months as we compare what I'd call stabilized pandemic revenue for 2021 to abnormally high pandemic revenue in 2020. While the June 2021 sales have decreased 5% from June 2020 sales, it is actually 10% higher than the June 2019 sales. It maybe more beneficial to compare the 2021 sales to our 2021 budget. Through June, the year-to-date sales revenue is 10% higher than our budgeted revenue while the June monthly sales are 2.8% higher than budget. Water Fund Sales Sales - Other Local Sales Tax Charges for Services Miscellaneous Revenues TOTAL REVENUES REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 ACTUALS JUNE YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 170,000 786,569 1,715,000 928,431 45.9 862,581 1,780,000 48.5 47,450 296,748 549,950 253,202 54.0 288,240 544,500 52.9 135,380 406,589 737,000 330,411 55.2 289,960 737,000 39.3 3,301 50,165 65,700 15,535 76.4 43,582 56,000 77.8 3,864 21,719 47,000 25,281 46.2 14,234 67,000 21.2 359,994 1,561,790 3,114,650 1,552,860 50.1 1,498,597 3,184,500 47.1 Wages & Benefits 46,287 238,820 546,882 308,062 43.7 246,139 542,656 45.4 Supplies 16,307 73,207 140,150 66,943 52.2 82,403 138,137 59.7 Services & Charges 39,241 227,492 500,950 273,458 45.4 335,890 496,350 67.7 Miscellaneous Expenses - 1,539 15,000 13,461 10.3 643 15,000 4.3 Transfers -Out - 70,000 70,000 - - 60,000 - CapitalOutlay 865,219 865,219 802,900 830,176 96.7 Depreciation Expense - 1,160,000 1,160,000 - 1,296 1,100,000 0.1 Debt Service - 207,323 1,465,215 1,257,892 14.1 195,496 1,485,955 13.2 TOTAL EXPENDITURES 101,835 748,381 4,763,416 4,015,035 15.7 1,664,767 4,668,274 35.7 NET of REVENUES & EXPENDITURES 258,159 813,410 (1,648,766) (2,462,176) (166,170) (1,483,774) Year to Date Wafer Sales Comments 2021 2020 Change Water Sales Revenue: Residential 547,135 541,790 1.0% Commercial 146,143 133,522 9.5% Industrial 93,291 187,269 -50.2% Water Sales 786,569 862,581 -8.8% Base Charge 219,047 215,255 1.8% WAC Charge 52,903 34,125 55.0% Other 24,798 38,861 -36.2% Other Sales 296,748 288,240 3.0% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT JUNE YTD BUDGET BALANCE USED ACTUAL BUDGET USED Wastewater Fund Sales 262,277 1,356,134 2,782,000 1,425,866 48.7 1,389,006 2,710,000 51.3 Sales - Other 32,456 260,409 568,150 307,741 45.8 236,186 488,000 48.4 Local Sales Tax 135,380 406,589 737,000 330,411 55.2 289,960 737,000 39.3 Licenses & Permits - 6,000 6,500 500 92.3 5,800 6,500 89.2 Charges for Services 1,125 2,375 7,500 5,125 31.7 5,950 7,500 79.3 Miscellaneous Revenues 5,740 22,361 97,500 75,139 22.9 35,198 112,500 31.3 TOTAL REVENUES 436,978 2,053,868 4,198,650 2,144,782 48.9 1,962,100 4,061,500 48.3 Wages & Benefits 58,893 331,610 752,715 421,105 44.1 331,656 725,428 45.7 Supplies 20,333 94,549 225,000 130,451 42.0 101,043 216,362 46.7 Services & Charges 47,706 385,936 762,200 376,264 50.6 283,386 778,500 36.4 Miscellaneous Expenses - 19,766 40,000 20,234 49.4 23,359 40,000 58.4 Transfers -Out - - 80,000 80,000 - - 60,000 - Capital Outlay 68,712 305,831 2,358,219 2,052,388 13.0 485,880 866,957 56.0 Depreciation Expense - - 1,125,000 1,125,000 - - 1,250,000 - Debt Service - 423,011 1,389,965 966,954 30.4 406,905 1,402,320 29.0 TOTAL EXPENDITURES 195,644 1,560,704 6,733,099 5,172,395 23.2 1,632,230 5,339,567 30.6 NET of REVENUES & EXPENDITURES 241,334 493,164 (2,534,449) (3,027,613) 329,870 (1,278,067) Year to Date Sewer Sales Comments 2021 2020 Change Wastewater Sales Revenue: Residential 798,013 786,323 1.53T. Commercial 220,063 225,599 -2.5% Industrial - Flow 182,411 254,451 -28.3% Industrial - Violation Surcharges 155,647 122,633 26.9% Sewer Sales 1,356,134 1,389,006 -2.4% Base Charge 189,280 186,387 1.6% SAC Charge 69,529 44,850 55.0% Other 1,600 4,950 -67.7% Other Sales 260,409 236,186 10.3% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT JUNE YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 104,932 619,791 1,220,000 600,209 50.8 597,665 1,190,000 50.2 Sales - Other 3,872 21,630 49,600 27,970 43.6 21,135 47,600 44.4 Intergovernmental Revenue - 2,592 12,500 9,908 20.7 - 12,500 - Miscellaneous Revenues 1,099 4,944 20,000 15,056 24.7 8,813 22,000 40.1 TOTAL REVENUES 109,902 648,957 1,302,100 653,143 49.8 627,613 1,272,100 49.3 Wages & Benefits 18,645 88,295 225,933 137,638 39.1 90,604 202,269 44.8 Supplies 2,228 13,209 64,400 51,191 20.5 18,815 61,400 30.6 Services & Charges 72,756 360,474 817,220 456,746 44.1 321,602 797,800 40.3 Miscellaneous Expenses 215 215 1,000 785 21.5 408 1,000 40.8 Transfers -Out - - 55,000 55,000 - - 55,000 - CapitalOutlay 29,567 865,500 835,933 3.4 11,266 180,700 6.2 Depreciation Expense - - 162,000 162,000 - - 140,000 - TOTAL EXPENDITURES 93,844 491,760 2,191,053 1,699,293 22.4 442,695 1,438,169 30.8 NET of REVENUES & EXPENDITURES 16,058 157,197 (888,953) (1,046,150) 184,918 (166,069) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 Comaost Fund Sales Intergovernmental Revenue Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2021 ACTUALS JUNE YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 216,622 2,377,603 2,289,000 (88,603) 103.9 2,418,695 2,367,400 102.2 1,280 4,866 70,000 65,134 7.0 4,330 87,750 4.9 1,941 6,822 32,000 25,178 21.3 12,763 35,000 36.5 219,843 2,389,291 2,391,000 1,709 99.9 2,435,788 2,490,150 97.8 154,326 1,443,103 1,582,500 139,397 91.2 1,467,457 1,543,550 95.1 (58,185) (314,261) (674,000) (359,739) 46.6 (378,954) (654,200) 57.9 57,827 342,519 798,104 455,585 42.9 338,937 749,909 45.2 8,602 55,798 123,500 67,702 45.2 61,614 114,300 53.9 12,219 86,291 259,000 172,709 33.3 115,051 330,900 34.8 542 3,426 11,000 7,574 31.1 2,254 12,700 17.7 - - 110,000 110,000 - - 110,000 - 109,515 376,500 266,985 29.1 36,727 567,580 6.5 - 282,500 282,500 - - 260,000 - - 66,089 161,642 95,553 40.9 63,902 161,642 39.5 175,331 1,792,481 3,030,746 1,238,265 59.1 1,706,988 3,196,381 53.4 44,511 596,810 (639,746) (1,236,556) 728,800 (706,231) Year to Date Sales Comments 2021 2020 Change Compost Sales Bagged 2,044,326 1,985,720 3.0% Bulk 101,221 235,064 -56.9% Other (Freight) 232,056 197,912 17.3% Total Sales 2,377,603 2,418,695 -1.7% Gross Profit 934,500 951,239 Gross Margin 39.3% 39.3% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT JUNE YTD BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 83,699 500,125 1,000,000 499,875 50.0 484,313 964,735 50.2 Sales - Other - - 3,500 3,500 - 589 3,500 16.8 Licenses & Permits 100 1,675 4,800 3,125 34.9 3,370 4,500 74.9 Charges for Services - - - - - - - - Miscellaneous Revenues 2,715 15,397 15,350 (47) 100.3 9,145 15,750 58.1 TOTAL REVENUES 86,513 517,197 1,023,650 506,453 50.5 497,417 988,485 50.3 Wages & Benefits 21,272 119,184 276,724 157,540 43.1 118,113 266,484 44.3 Supplies 1,209 6,735 35,425 28,690 19.0 37,253 26,362 141.3 Services & Charges 9,156 31,915 196,350 164,435 16.3 59,770 212,900 28.1 Miscellaneous Expenses - 8,298 18,000 9,702 46.1 8,143 18,000 45.2 Capital Outlay 99,889 739,000 639,111 13.5 - 436,328 - Depreciation Expense - 240,000 240,000 - - 225,000 - Debt Service - 144,111 225,789 81,678 93.5 124,411 209,689 70.2 TOTAL EXPENDITURES 31,638 410,131 1,731,288 1,321,157 23.7 347,690 1,394,763 24.9 NET of REVENUES & EXPENDITURES 54,876 107,066 (707,638) (814,704) 149,727 (406,278) Oppenheimer & Co. Inc. 85 Broad Street STATEMENT OF OLPENHE�IM�k New York, 00 10004 Trans ctsBu in ACCOUNT Transacts Business on All Principal Exchanges Assets maturing during the next 60 days appear at the end of this statement. Special Message This statement has been provided to you through electronic delivery. Thank you for helping us 'Go Green'! Portfolio Summary This Previous Estimated Period Period Annual Income 06/30/21 05/31/21 Advantage Bank Deposits' $374.55 $62425 $0.01 Mutual Funds 6,076,974.93 6,069,451.29 1,616.47 Municipal Bonds 9,161,809.35 9,188,032.80 224,08325 Certificates of Deposit 6,873,458.13 7,386,041.01 169,265.50 C $hA=UMt3 Wft 1,M41 00U Total Asset Value #ii,S1b,706,37 U2,644,1046 1394,966 $ Net Value of Accrued Interest $111,242.12 $92,276.45 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Eligible for FDIC insurance up to standard maximum insurance amounts; Not SIPC insured. Account Number: D25-5019707 Tax ID Number: ON FILCK For the Period: 06/01/21 - 06/30/21 Last Statement: 05/31/21 Page 1 of 12 CITY OF HUTCHINSON MINNESOTA III HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Professional SULLIVAN,C/FAY,J 5HX (800)258-3387 Internet Address: www.opco.com Income Summary Office Serving Your Account 100 SOUTH 5TH ST SUITE 2200 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Corporate Interest $14,445.25 $100,266.42 Municipal Interest 3,767.10 105,450.28 Dividends 151.00 812.27 Tula) RepartaNu illf.111114 16 L206,1M.07 PPENHEIMEK Executive Summary CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 Summary Totals Original Face $15,534,000 Current Face (Par) $15,534,000 Market Principal $16,035,267 Accrued Interest $109,668 Cash & Cash Alternatives $0 Fixed Income Funds $0 Equity Balance $0 Total Portfolio Value $16,144,935 Next 12mo Cpn Cash Flow $372,189 Generic Annual Cpn Cash Flow $393,349 Weighted Averages Coupon' 2.532 % Maturity 1.83 yrs Duration 1.71 Yield to Worst 0.207% Yield to Maturity 0.243 % Market Price' 103.227 Tax Lots Holdings Included 44 of 44 'Par-Wld, an else Mkt-Wtd. Avg lire used Ior principal paydowns, and perpetual securities are assigned a 40 year maturity. Muni- 57.1% CD- 42.9% 40% 20% 0% I' O�'O�'On'O�'O�'O�'O�'O�'O�'O�O�O�O�O�O�O�O�^O O�Oa0a0a0aO�0a0aOaOa0aOh0'ti�a\ Qe Moody's S&P 0 Fed Tax -Exempt Fed Taxable Subj to Cap Gains Subj to AMT $80,000 UST/AGY/CD - PR/ETM Aaa AAA 40% $60,000 As AA A 'A $40,000 Bea BBB Be 20% BB -Be <BB NR $20,000 NR None None � > 0% 20% 40% 60% 60% 100% el' t� a" ) Q e� �' > O'10'LO"�ObOg060'�000oi,tiO,ti'1,ti'y,ti"�,tit,tiq,ti6,ti'�,ti0,doi,1O,1'1,y'y,y"�,lb,yq,y6,l'�,y0,loi,�00x 'r 000'10'LO'rOD+Oh060'�o00A.tiO.ti'1.ti'L.ti'r.tib,tih.tiO.ti'1.ti0.tiA',yO,y'1,y'L,l'r,lb,yh,l6,L'1,lO,Loi Includes coupon cash flows for the next 12 months, from 07/01/2021 to 061302022. Includes all tax lot holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Includes coupon cash flows for the next 12 months, Bom 07/012021 to 06/302022. Projected Principal Paydowns for CMOs are produced by applying current pool speeds which are updated weekly. Assuming similar market conditions going forward, Projected Principal Paydowns for Pass-7hru securities are produced by calculating and applying concurrent historical speeds to future paydown schedules. Page 3 of 21 PPENHEIMEK Totals & Averages @ Current Market CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $15,534,000 $15,534,000 44 0 44 Valid Tax Lot Holdings' Includes all tax lot holdings with recognized CUSIP and quantity. Priced Original Face Value $15,534,000 Priced Current Face Value $15,534,000 Tax Lot Holdings Included 44 of 44 Priced Market Principal $16,035,267 Average Coupon 2.532% Average Market Price 103.227 Includes all tax lot holdings with recognized CUSIP, quantity and market price on reporting date. Average coupon and market price weighted by market principal. Portfolio Totals Original Face Value Current Face Value Market Principal Value Accrued Interest Total Market Value Cash & Cash Alternatives Fixed Income Funds Equity Balance Total Portfolio Value Next 12mo Cpn Cash Flow Generic Annual Cpn Cash Flow Tax Lot Holdings Included $15,534,000 $15,534,000 $16,035,267 $109,668 $16,144,935 $0 $0 $0 $16,144,935 $372,189 $393,349 44 of 44 Portfolio Averages Coupon Maturity Duration Convexity Yield to Worst Yield to Maturity After Tax YTW Taxable Equivalent YTW After Tax YTM Taxable Equivalent YTM Market Price 2.532% 1.83 yrs 1.71 0.052 0.207% 0.243% 0.207% 0.207% 0.243% 0.243% 103.227 Includes all tax lot holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Portfolio average values are market -weighted, unless otherwise noted. Coupon and market price are par -weighted. All prices have been normalized to par. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Includes coupon cash flows for the next 12 months, from 07/01/2021 to 06/30/2022. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.00%, a State of WA, and a State Tax rate of WA. Generic Annual Cpn Cash Flow is simply coupon rate times current face value, and does not consider acquisition date, redemption dates, long/short first coupons, ex -dividend dates, payment delays, etc. Duration and convexity figures represent moditled duration to worst. Page 4 of 21 PPENHEIMEK Totals & Averages @ Acquisition CITY OF HUTCHINSON report as of 07/01/2021 XXXX)CX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $15,534,000 Portfolio Totals Portfolio Averages $15,534,000 Original Face Value $15,534,000 Yield to Worst (cost) 2.094% 44 Face Value at Acquisition $15,534,000 Yield to Worst (mkt) 0.207% 0 Original Principal Cost $15,675,587 Yield to Maturity (cost) 2.094% 44 Adjusted Principal Cost $15,580,067 Yield to Maturity (mkt) 0.243% Current Market Principal $16,035,267 Original Acquisition Price 100.911 Estimated Gain/(Loss) $455,200 Adjusted Cost Price 100.297 Tax Lot Holdings Included 44 of 44 Current Market Price 103.227 Valid Tax Lot Holdings' includes all tax lot holdings with recognized CUSIP and quantity. Original Face Value $15,534,000 Face Value at Acquisition $15,534,000 Tax Lot Holdings Included 44 of 44 Original Principal Cost $15,675,587 Average Acquisition Price 100.911 Includes all tax lot holdings with recognized CUSIP, quantity, acquisition date/price, full analytical calculations at acquisition, market price, and full analytical calculations on reporting date. Average values Qa cost are weighted by respective original total acquisition costs. Includes all tax lot holdings with recognized CUSIP, quantity, and acquisition date/price. All prices have been normalized to par. Average acquisition price is weighted by original principal cost. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Page 5 of 21 PPENHEIMEK Position Details CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield 69138SCB2 1,026 xmoorx9707 -/- OXFORD ACADEMY & CENT SCH 1.250 % 100.019 Maturity 07/08/2021 -2.143% (w) Muni 6.60% Held (MIG 1/-) DIST N Y 07/08/2021 0.01 Material Events I General Obligation I Education I BQ I Interest at Maturity 87270LCJO 245 xmoorx9707 -/- TIAA FSB JACKSONVILLE FLA 2.050% 100.067 Maturity 07/12/2021 -2.005% (w) CD 1.58% Held FDIC Cert #: 34775 071122021 0.02 Death Put I EVER I Semi -Annual Pay I Restricted States: OH,TX 02007GEC3 245 xxxxxx9707 -/- ALLY BK MIDVALE UTAH 2.950 % 100.266 Maturity 08/02/2021 -0.636% (w) CD 1.58% Held FDIC Cert #: 57803 08/022021 0.07 Death Put I GMATBK I Semi -Annual Pay 89214PCA5 245 xxxxxx9707 -/- TOWNEBANK PORTSMOUTH VA 3.000% 100.729 Maturity 09/27/2021 -0.203%(w) CD 1.58% Held FDIC Cert #: 35095 09272021 0.23 Death Put I TOWN I Semi -Annual Pay I Restricted Stales: NC,VA 227563BK8 245 xxxxxx9707 -/- CROSS RIV BK TEANECK N J 1.800% 100.671 Maturity 11/15/2021 -0.055% (w) CD 1.58% Held FDIC Cert#: 58410 11/152021 0.36 Death Put I CRORVR I Semi -Annual Pay 34415LAN1 245 xxxxxx9707 -/- FOCUS BK CHARLESTON MO 2.100% 100.837 Maturity 11/24/2021 -0.066%(w) CD 1.58% Held FDIC Cert #: 1426 11242021 0.39 Acq Date Tot Adj Cost Mkt Principal Unreal GIL ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost -2.143%-2.143% 07/13/2020 $1,025,041 $1,025,195 - - 100.834 / 0.401% 100.004 $12,741 . -2.005%-2.005% 07/12/2019 $245,000 $245,164 $164 100.000 / 2.050 % 100.000 $2,408 0.1% -0.636%-0.636% 08/02/2018 $245,000 $245,652 $652 100.000 / 2.950 % 100.000 $3,049 0.3% -0.203%-0.203% 09/26/2018 $245,000 $246,786 $1,786 100.000 / 3.000% 100.000 $2,054 0.7% -0.055% -0.056 11/13/2019 $245,000 $246,644 $1,644 100.000 / 1.800% 100.000 $652 0.7% -0.066%-0.066% 11/24/2017 100.000 / 2.100% Death Put I FSSBKC I Semi -Annual Pay 249218AU2 290 xxxxxx9707 Aa3/- DENVER COLO PUB SCHS CTFS 2.698% 101.015 Maturity 12/15/2021 0.296% (w) 0.296% 0.296% 05/14/2020 Muni 1.87% Held (A831--) PARTN 1211W021 0.44 102.428 / 1.050 Material Events I Federally Taxable I Make Whole Call I Extraordinary Calls I Certificate of Participation I Education I Semi -Annual Pay 8562845Z3 247 xxxxxx9707 -/- STATE BK INDIA NEW YORK N Y 2.350 % 101.315 Maturity 01/26/2022-0.003% (w)-0.003% -0.003% 05/09/2017 CD 1.59% Held FDIC Cert #: 33682 01262022 0.55 100.000 / 2.349% Death Put I Foreign I Emerging I STBINC I Semi -Annual Pay I , I Restricted States: MT,OH,TX 081383Q87 430 xxxxxx9707 Al/AA BEMIDJI MINN 5.000% 102.784 Maturity 02/01/2022 0.108% (w) 0.108% 0.108% 03/18/2020 Muni 277% Held (All--) 021012022 0.56 106.618 / 1.400% S&P Outlook Stable I General Obligation I Recreation I AGMC Insured I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. Forpreferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.00%, a State of WA, and a State Tax rate of WA. Page 6 of 21 $245,000 $247,051 $2,051 100.000 $606 0.8% $291,969 $292,944 $974 100.679 $440 0.3% $247,000 $250,248 $3,248 100.000 $2,560 1.3% $438,742 $441,971 $3,229 102.033 $9,257 0.7% PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 Position Details CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 264474GV3 1,000 xxxxxx9707 Aa2l- DULUTH MINN INDPT SCH DIST 5.000% 102.499 Maturity 02/01/2022 0.597% (w) 0.597% 0.597% 03/26/2020 $1,013,460 $1,024,990 Muni 8.44% Held (Bail-) NO709 CTFS PARTN 02/012022 0.56 104.29712.600% 101.345 $21,528 Material Events I Certificate of Participation I Education I Semi -Annual Pay 38148PGX9 247 xxxxxx9707 -/- GOLDMAN SACHS BK USA 2.300% 101.559 Maturity 03/08/2022 -0.022% (w) -0.022%-0.022% 06/09/2017 $247,000 $250,851 $3,851 CD 1.59% Held FDIC Cert A, 33124 03/082022 0.67 100.000 / 2.299% 100.000 $1,868 1.6% Death Put I GS I Semi -Annual Pay 87164XPZ3 245 xxxxxx9707 -/- SYNCHRONYBANK 2.400% 101.813 Maturity 04/07/2022 -0.006%(w) -0.006%-0.006% 05/09/2017 $245,000 $249,442 $4,442 CD 1.58% Held FDIC Cert A, 27314 04/072022 0.75 100.000 / 2.400% 100.000 $1,450 1.8% Death Put I SYF I Semi -Annual Pay I Restricted States: TX 574446GV6 500 xxxxxx9707 Aa1/- MARYSVILLE MICH PUB SCHS DIST 2.317% 101.587 Maturity 05/01/2022 0.375% (w) 0.375% 0.375% 05/09/2017 $494,230 $507,935 $13,705 Muni 3.22% Held (A3/-) O5/01/2022 0.81 98.84612.565% 98.846 $2,092 2.8% Material Events I Federally Taxable I General Obligation I Education I Semi -Annual Pay 64971WJ35 500 xxxxxx9707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 1.650% 101.202 Maturity 05/01/2022 0.181% (w) 0.181% 0.181% 05/09/2017 $497,125 $506,010 $8,885 Muni 322% Held (As 1/-) FIN AUTH REV O5/01/2022 0.82 99.42511.771% 99.425 $1,490 1.8% Material Events I Federally Taxable I S&P Outlook Stable I Make Whole Call I Revenue I Government I Semi -Annual Pay 977100GU4 500 xxxxxx9707 Aa2l- WISCONSIN ST GEN FD ANNUAL 1.720% 101.277 Maturity 05/01/2022 0.160% (w) 0.160% 0.160% 08/26/2020 Muni 322% Held (Aav--) APPROPRIATION REV OW01/2022 0.82 102.208 / 0.400% Federally Taxable I State Taxable I Make Whole Call I Pro -Bata I Revenue I GovemmeM I Semi -Annual Pay 13281 NYX4 205 xxxxxx9707 Aal/AA CAMDEN CNN N J IMPT AUTH REV - 0.591 % 100.340 Maturity 07/15/2022 0.259% (w) 0.259% 0.259% 09/10/2020 Muni 1.32% Held (Aeim CROSSROADS REDEV PROJ 07/152022 1.02 100.351 / 0.400% Material Events I Federally Taxable I S&P Outlook Stable I Short First Coupon I Revenue I Government I Semi -Annual Pay 15721 UCT4 245 xx)0=9707 -/- CFBANK FAIRLAWN OH 3.250% 103.314 Maturity 07/19/2022 0.049% (w) 0.049% 0.049% 12/19/2018 CD 1.58% Held FDIC Cert A, 28263 07/192022 1.02 100.000 / 3.250 Death Put I CFBK I Monthly Pay I Restricted States: CA,PR,TN,TX 02587DV47 245 xxxxxx9707 -/- AMERICAN EXPRESS CENTURIAN BK 2.350 % 102.465 Maturity 08/08/2022 0.088% (w) 0.088% 0.088% 08/08/2017 CD 1.58% Held CTF DEP PROGRAM BOOK ENTRY 08/08/2022 1.07 100.000 / 2.350 FDIC Cert A, 27471 Death Put I AXP I Semi -Annual Pay I Restricted States: OH, TX Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (Y7M9. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 7 of 21 $505,390 $506,385 $995 101.078 $1,553 02% $205,400 $205,697 $297 100.195 $575 0.1% $245,000 $253,119 $8,119 100.000 $371 3.3% $245,000 $251,039 $6,039 100.000 $2,335 2.5% PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 Position Details CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 01748DAY2 245 xmooa9707 -/- ALLEGIANCE BK TEX HOUSTON 2.200% 102.762 Matudly 11/03/2022 0.120% (w) 0.120% 0.120% 11/03/2017 $245,000 $251,767 $6,767 CD 1.58% Held FDIC Cert A, 58629 11/032022 1.31 100.000 / 2.200% 100.000 $44 2.8% Death Put I ABTX I Monthly Pay I Restricted States: TX 254672WU8 245 xmooa9707 -/- DISCOVER BK 2.450% 103.204 Matudly 11/18/2022 0.109% (w) 0.109% 0.109% 05/09/2017 $245,000 $252,850 $7,850 CD 1.58% Held FDIC Cert A, 5649 11/18/2022 1.35 100.000 / 2.450 % 100.000 $806 3.2% Death Put I DFS I Semi -Annual Pay 214201GK5 150 xxxxxx9707 A2/- COOK CNTY ILL SCH DIST NO 0.000% 97.185 Matudly 12/01/2022 2.046% (w) 2.046% 2.046% 10/27/2020 $148,296 $145,778 ($2,519) Muni 0.97%% Held (a) 089MAYWOOD 12/012022 1.39 98.34110.800% 98.864 $0 (1.7%) Material Events I Federally Taxable I State Taxable I General Obligation I Education I AGMC Insured 949495AQ8 245 xxxxxx9707 -/- WELLS FARGO NATL BK WEST LAS V 1.900% 102.679 Matudly 01/17/2023 0.152% (w) 0.152% 0.152% 01/17/2020 $245,000 $251,564 $6,564 CD 1.58% Held FDIC Cert A, 27389 01/17/2023 1.51 100.000 / 1.900% 100.000 $242 2.7% Death Put I WFC I Monthly Pay 58404DDMO 245 xxxxxx9707 -/- MEDALLION BK UTAH 2.850% 104.482 Matudly 03/06/2023 0.156% (w) 0.156% 0.156% 03/05/2019 $245,000 $255,981 $10,981 CD 1.58% Held FDIC Cert A, 57449 03/062023 1.63 100.000 / 2.850 % 100.000 $19 4.5% Death Put I MEDBNK I Monthly Pay I Restricted States: AL,OH,TX 149159MQ5 245 xxxxxx9707 -/- CATHAY BK LOS ANGEL CALIF 3.150% 105.696 Matudly 06/08/2023 0.182% (w) 0.182% 0.182% 06/08/2018 $245,000 $258,955 $13,955 CD 1.58% Held FDIC Cert A, 18503 06/082023 1.88 100.000 / 3.150% 100.000 $592 5.7% Death Put I CATY I Semi -Annual Pay I Restricted States: CA, NY 856425AR4 245 xxxxxx9707 -/- STATE BANK OF LISMORE LISMORE 3.100% 105.715 Matudly 06/27/2023 0.201% (w) 0.201 % 0.201% 06/27/2018 $245,000 $259,002 $14,002 CD 1.58% Held MN 06272023 1.92 100.000 / 3.100 % 100.000 $187 5.7% FDIC Cert #., 8190 Death Put I SBKLIS I Monthly Pey 45581 EAX9 245 xxxxxx9707 -/- INDUSTRIAL & COML BK CHINA USA 3.300% 106.144 Matudly 06/30/2023 0.196% (w) 0.196% 0.196% 08/30/2018 $245,000 $260,053 $15,053 CD 1.58% Held FDIC Cert A, 24387 06/30/2023 1.92 100.000 / 3.300% 100.000 $133 5.1% Death Put I INDCMB I Monthly Pay I Restricted States: NON-USACCOUNTS 75472RAW1 245 xxxxxx9707 -/- RAYMOND JAMES BK NATL ASSN 1.700% 103.102 Matudly 08/14/2023 0.223% (w) 0.223% 0.223% 02/14/2020 $245,000 $252,600 $7,600 CD 1.58% Held FDIC Cert A, 33893 08/142023 2.06 100.000 / 1.700 % 100.000 $1,620 3.1% Death Put I RJF I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTM9. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 8 of 21 PPENHEIMEK Position Details (continued...) report as of 0710112021 Position Details CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield 59833LAF9 245 xxxxxx9707 -I- MIDWEST INDPT BK MO 3.150% 106.424 Maturity 09/18/2023 0.226%(w) CD 1.58% Held FDIC Cart A, 25849 09/18/2023 2.13 Death Put I MIDINB I Monthly Pay 61760ARSO 245 xxxxxx9707 -/- MORGAN STANLEY PRIVATE BK 3.550% 107.586 Maturity 11/08/2023 0.298% (w) CD 1-58% Held NATL 11/082023 2.26 FDIC Cart A, 34221 Death Put I MS I Semi -Annual Pay 538036CZ5 245 xxxxxx9707 -!- LIVE OAK BANKING COMPANY 2.500% 105.466 Maturity 12/132023 0.251 % (w) CD 1.58% Held WILMINGTON NC 12/132023 2.37 FDIC Cent A, 58665 Death Put I LIVOAK I Monthly Pay 06251AV80 245 xxxxxx9707 -/- BANK HAPOALIM B M NEW YORK 3.200% 107.471 Maturity 01/232024 0.259% (w) CD 1.58% Held FDIC Cart A, 33686 01232024 2.43 Death Put I Foreign I Emerging I HAPOAL I Semi -Annual Pay I Restricted Stales: MT,TX 20033AP91 245 xxxxxx9707 -/- COMENITY CAP BK UTAH 3.100% 107.377 Maturity 02/152024 0.267% (w) CD 1.58% Held FDIC Cart A, 57570 02/152024 2.51 Death Put I ADS I Monthly Pay I Resricted States: OH,TX 057864AZ3 485 xxxxxx9707 Aa2/AA BALDWIN CNTY ALA PUB BLDG AUTH 3.000% 106.814 Maturity 03/012024 0.414% (w) Muni 3.12% Held (Aa2/--) BLDG REV - JAIL PROJ 03/012024 2.54 Material Events I S&P Outlook Stable I Extraordinary Calls I Revenue I Government I Semi -Annual Pay 90348JJQ4 245 xxxxxx9707 -/- UBS BK USA SALT LAKE CITY UT 2.900% 107.169 Maturity 04/032024 0.278% (w) CD 1.58% Held FDIC Cart A, 57565 04/032024 2.64 CITY OF HUTCHINSON XXXXXX9707 Acq Date Tot Adj Cost Mkt Principal Unreal GIL ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 0.226% 0.226% 09/1712018 $245,000 $260,739 $15,739 100.000 13.150 % 100.000 $402 6.4% 0.298% 0.298% 11/08/2018 $245,000 $263,586 $18,586 100.000 / 3.550 % 100.000 $1,406 7.6% 0.251% 0.251% 12/13/2017 $245,000 $258,392 $13,392 100.000 / 2.500% 100.000 $84 5.5% 0.259% 0.259% 01/23/2019 $245,000 $263,304 $18,304 100.000 / 3.200% 100.000 $3,523 7.5% 0.267% 0.267% 02/1512019 $245,000 $263,074 $18,074 100.000 / 3.100% 100.000 $437 74% 0.414% 0.414% 03/20/2020 101.867 / 2.500% 0.278% 0.278% 04/03/2019 100.000 / 2.900% Death Put I UBS I Monthly Pay 20056UAV6 500 xxxxxx9707 -/AA COMMERCE CALIF CMNTY DEV 3.000% 106.504 Maturity 08/012024 0.849% (w) 0.849% 0.849% 05/09/2017 Muni 3.22% Held (VA) COMMN SUCCESSOR AGY TAX 08/012024 2.91 105.319 / 2.200% ALLOCATION Federally Taxable I S&P Outlook Stable I DID I Revenue I Government I AGMC Insured I Semi -Annual Pay 438687KT1 1,000 xxxxxx9707 Aal/- HONOLULU HAWAII CITY & CNTY 1.832% 103.549 Maturity 08/012024 0.662% (w) 0.662% 0.662% 10/30/2019 Muni 6.44% Held (As 1/-) 08/012024 2.97 99.600 / 1.920 % Material Events I Federally Taxable I Make Whole Call I General Obligation I Government I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTM9. Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 9 of 21 $491,174 $518,048 $26,874 101.273 $5,052 5.5% $245,000 $262,564 $17,564 100.000 $58 72% $511,805 $532,520 $20,715 102.361 $6,458 4.0% $996,000 $1,035,490 $39,490 99.600 $7,888 4.0% PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 CUSIP Curr Face Account # Mdy / S&P Coupon Mkt Px Acq Date Tot Adj Cost Mkt Principal Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield ATY TEY Acq Px / Yid Adj Cost Px Accr Int % Adj Cost 20772,13,19 570 xmooa9707 Aa3/A+ CONNECTICUTST 2.400% 105.347 Maturity 08/15/2024 0.659%(w) 0.659% 0.659% 07/11/2019 $568,906 $600,478 $31,572 Muni 3.67% Held (AaV-) 0811WO24 2.98 99.80812.440% 99.808 $5,358 5.5% Material Events I Federally Taxable I S&P Outlook Stable I General Obligation I Government I Semi -Annual Pay 64971QJ38 500 xmooa9707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 2.600% 102.510 Next Call 11/01/2022 0.685% (w) 0.685% 0.685% 05/09/2017 $486,750 $512,550 $25,800 Muni 322% Held (As 1/-) FIN AUTH REV 11/01/2024 1.30 Maturity 11/01/2024 1.817% 1.817% 1.817% 97.350 12.998% 97.350 $2,347 5.3% Material Events I Federally Taxable I S&P Outlook Stable I Callable I Revenue I Government I Semi -Annual Pay 696583GV9 460 xxxxxx9707 Aal/AAA PALM BEACH FLA REV 2.500% 104.906 Maturity 01/01/2025 1.063% (w) 1.063% 1.063% 01/08/2020 $466,928 $482,568 $15,640 Muni 2.96% Held (As 1/-) 01/012025 3.34 102.120 / 2.050 % 101.506 $160 3.3% Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay 59013KFJO 245 xxxxxx9707 -/- MERRICK BK SOUTH JORDAN UTAH 1.800% 104.985 Maturity 01/31/2025 0.396% (w) 0.396% 0.396% 01/31/2020 $245,000 $257,213 $12,213 CD 1.58% Held FDIC Cert A, 34519 01/31/2025 3.46 100.000 / 1.800% 100.000 $72 5.0% Death Put I MERICK I Monthly Pay I Restricted States: OH,TX 16166NCL7 300 xxxxxx9707 -IAA- CHASKA MINN ECONOMIC DEV 3.430% 107.299 Maturity 02/01/2025 1.329% (w) 1.329% 1.329% 02/03/2020 $316,827 $321,897 $5,070 Muni 1.93% Held (-/-) AUTHLEASE REV 02/012025 3.33 107.752 / 1.800% 105.609 $4,430 1.6% Material Events I Federally Taxable I State Taxable I S&P Outlook Negative I Revenue I Industrial I Semi -Annual Pay 05465DAE8 245 xxxxxx9707 -/- AXOS BK SAN DIEGO CALIF 1.650% 104.553 Maturity, 03/26/2025 0.417% (w) 0.417% 0.417% 03/26/2020 $245,000 $256,155 $11,155 CD 1.58% Held FDIC Cert A, 35546 03/262025 3.61 100.000 / 1.650 % 100.000 $111 4-6% Death Put I BOR I Monthly Pay 29278TMJ6 245 xxxxxx9707 -/- ENERBANK USA UT 2.000% 105.986 Maturity 10/31/2025 0.597% (w) 0.597% 0.597% 10/31/2019 $245,000 $259,666 $14,666 CD 1.58% Held FDIC Cert A, 57293 10/31/2025 4.14 100.000 / 2.000% 100.000 $81 6.0% Death Put I CMS I Monthly Pay I Restricted Stales: OH,TX 032879UV8 500 xxxxxx9707 -/AA ANCHOR BAY MICH SCH DIST 1.250% 100.271 Maturity 05/01/2026 1.192% (w) 1.192% 1.192% 07/16/2020 $503,035 $501,355 ($1,680) Muni 3.22% Held (-/-) 05/01/2026 4.65 100.726/1.120% 100.607 $1,128 (0.3%) Material Events I Federally Taxable I S&P Outlook Negative I Short First Coupon I General Obligation I Education I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. For preferred securities, # of shams is displayed instead of current face value, which is represented in thousands (000). The (w) in the Yield column indicates which yield value is the Yield to Worst (YTM. Duration figure represents modified duration to worst. ATY(TEY calculations use a Fed Tax rate of 0.00%, a Cap Gains Tax rate of 0.0091, a State of WA, and a State Tax rate of WA. Page 10 of 21 r ppENHEIMEk Coupon Cash Flow - Year 1 CITY OF HUTCHINSON report as of 0710112021 XXXXXX9707 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 Ju122 Total %Tot Agency Agency Pass-Thru Asset -Backed CD $13,190 $15,517 $13,576 $9,760 $19,238 $10,681 $13,891 $11,894 $9,272 $9,919 $14,101 $10,835 $151,873 40.8% CMO - - - - - - - - - - - - - - Corporate - - - - - - - - - Muni: Fed Tax $6,356 $28,645 - $23,842 $3,767 $6,356 $28,645 - $23,842 $121,454 32.6% Muni: Tax -Exempt $12,812 $35,750 $7,275 - - - $35,750 $7,275 - $98,862 26.6% Muni: Subj AMT - - - - - - - Pfd: Fed Tax Pfd: Tax -Exempt Pfd: Cap Gains Treasury Total $32,358 $79,912 $20,851 $9,760 $43,081 $14,448 $20,246 $76,289 $16,547 $9,919 $37,944 $10,835 $372,189100.0% Fed Tax -Exempt $12,812 $35,750 $7,275 - - - - $35,750 $7,275 - - - $98,862 26.6 Fed Taxable $19,546 $44,162 $13,576 $9,760 $43,081 $14,448 $20,246 $40,539 $9,272 $9,919 $37,944 $10,835 $273,327 73.4% Subj to Cap Gains - - - - - - - - - - - - - - Subj to AMT Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Subj to AMT $80,000 $60,000 $40,000 $20,0$00 ■ ■ . � E M . ■ - � E Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 Jul'22 Includes all tax holdings with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Includes coupon cash Mows for the next 12 months, from 07/01/2021 to 06/30/2022. Totals are the sum of rounded displayed values. The cash flows displayed are only estimates. Your actual interest and principal payments may be higher or lower than these estimates. Projected Principal Paydowns for CMOs are produced by applying current pool speeds which are updated weekly. Assuming similar market conditions going forward, Projected Principal Paydowns for Pass-Thru securities are produced by calculating and applying concurrent historical speeds to future paydown schedules. Page 11 of 21 PPENHEIMEK Maturity & Duration - All CITY OF HUTCHINSON report as of 07/01/2021 XXXX)CX9707 e 20% a a v a of 0% I, OryyO�,y0�n�0�'b0�yO.t00�'� O�00�00.,00,,10.,'LO.,'�O.,bO,,y0.,00,,'� 0,,00,,�i ObOOb10b'LOb'�O�Obh Ob00b10bQOb00yO ,tiyC�y� Qe 4 a 40% e o 0 O 20% m aR 0% I' O~ pti p'S pb ph Ob 91 00 p0 ,ti0 ,tit ,ti'L ,ti'S ,tib ,tih ,tib ,tit ,ti0 ,tioi .LO .L1 .L'L .L'S .Lb .Lh .Lb .L1 .L0 .Loi .50 Ox 00 O~ Oti O� ODl Oci OH 01' 00 00' ,ti0 ,tiff ,ti'V ,ti'N ,tiD: ,tick' ,tiH ,tit ,ti0 ,ti�i' ,LO' ,Lti ,L'V ,L^i ,Lti ,Lh' ,Lry ,L1 ,L0 ,L0' '� Displays represent % ofmarket principal for all tax lot holdings with a recognized CUSIP, quantity, Current market price and full analytical wiculations. Average Ilfe used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Duration figure represents modified duration to worst. Year Curr Face % Mkt Principal % I Range 2021 $2,540,000 16.35% $2,549,435 15.90% 00-01 2022 $5,004,000 32.21% $5,098,082 31.79% 01-02 2023 $2,205,000 14.19% $2,320,870 14.47% 02-03 2024 $3,790,000 24.40% $3,988,027 24.87% 03-04 2025 $1,495,000 9.62% $1,577,498 9.84% 04-05 2026 $500,000 3.22% $501,355 3.13% 05-06 2027 06-07 2028 07-08 2029 08-09 2030 09-10 2031 10-11 2032 11-12 2033 12-13 2034 13-14 2035 14-15 2036 15-16 2037 16-17 2038 I 17-18 2039 18-19 2040 I 19-20 2041 20-21 2042 I 21-22 2043 i 22-23 2044 I 23-24 2045 24-25 2046 I 25-26 2047 26-27 2048 27-28 2049 28-29 2050 29-30 2051+ 30+ Perpetual Page 12 of 21 Curr Face % Mkt Principal $6,209,000 39.97% $6,287,267 39.21% $3,060,000 19.70% $3,158,354 19.70% $4,270,000 27.49% $4,510,794 28.13% $1,250,000 8.05% $1,317,833 8.22% $745,000 4.80% $761,021 4.75%