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cp11-23-21HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, NOVEMBER 23, 2021 CITY CENTER — COUNCIL CHAMBERS ('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Faith Lutheran Church (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference 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. 15377 — Accepting $1250 Donation from Various Donors for Flagpole Set-up at Senior Center PUBLIC COMMENTS (]his is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to 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 November 9, 2021 (b) Council Workshop of November 9, 2021 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Purchase of Bobcat Skid Loader for Parks Department (b) Consideration for Approval To Sell at Auction 1990 Chevrolet Tanker Truck (c) Consideration for Approval of Resolution No. 15373 — Resolution Authorizing Disposal of Parks and Recreation Department Surplus Property (d) Consideration for Approval of Resolution No. 15374 — Resolution Authorizing Disposal of Creekside Surplus Property CITY COUNCIL AGENDA — November 23, 2021 (e) Consideration for Approval of Resolution No. 15375 - Resolution Establishing Location for Traffic Control Devices (No Parking on Shady Ridge Road NW) (f) Consideration for Approval of Resolution No. 15376 — Resolution Calling for a Public Hearing on the Proposed Revision of Business Subsidies Goals for HutchCobble LLC (g) Consideration for Approval of Resolution No. 15378 — Resolution Calling for a Public Hearing on the Proposed Adoption of a Modification to the Development Program for Development District No. 4 and Establishment of TIF District No. 4-22 (A Redevelopment District) — Jorgensen Hotel (h) Consideration for Approval of Amendment to Grant Agreement with Minnesota Department of Employment & Economic Development for UPONOR Job Creation (i) Consideration for Approval of Amended and Restated Development Agreement Between City of Hutchinson and Silver Lake Capital Partners, LLC 0) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. - NONE purpose o this portion o the agenda is to provi e t e Councilwith information necessary to craft wise policy. Ides items like monthly or annual reports and communications from other entities.) 8. REVIEW OF 2021 PAVEMENT MANAGEMENT PROGRAM REPORT 9. REVIEW OF THE 2021 COMPENSATION STUDY 10. DISCUSSION ON THE PRELIMINARY BUDGET AND TAX LEVY FOR 2022 UNFINISHED BUSINESS NEW BUSINESS 11. APPROVE/DENY FIRST READING OF ORDINANCE NO. 21-827 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO HUTCH UPTOWN COMMONS, LLC 12. APPROVE/DENY ADVERTISEMENT FOR BIDS FOR BURICH ARENA ROOF AND WALL UPGRADES — EAST RINK GOVERNANCE (The purpose o t tis portion of the agenda is to deal with organizational development issues, includingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 2 CITY COUNCIL AGENDA November 23, 2021 13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for October 2021 MISCELLANEOUS 14. STAFF UPDATES 15. COUNCIL/MAYOR UPDATE 16. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO DISCUSS PURCHASE OF REAL PROPERTY LOCATED AT 145 2ND AVENUE SE AND 205 JEFFERSON STREET SE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15377 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; 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 Various Donors (see list) $1,250.00 11/15/2021 WHEREAS, such donations have been contributed to the City of Hutchinson Senior Center towards a new flag pole set-up at the Senior Center. WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation describeds above are hereby accepted by the City of Hutchinson. Adopted by the City Council this 23rd day of November 2021. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor FLAGPOLE DONATIONS 2021 Connie & Curtis Dahl $ 50.00 Home State Bank $ 100.00 Jay Malone Motors $ 50.00 Jeannette Meyer $ 100.00 Jim & Linda Fahey $ 200.00 Knights of Columbus #4797 $ 100.00 Mary Henke $ 50.00 Rhonda Schwarze $ 100.00 Stearns Foundation $ 250.00 StearnsWood Inc. $ 250.00 TOTAL DONATIONS: $ 1,250.00 HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, NOVEMBER 9, 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) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Mary Christensen, Pat May, Chad Czmowski and Dave Sebesta. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by May, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Hutchinson Evangelical Free Church (The invocation is a voluntary expression ojtheprivate 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 PUBLIC COMMENTS (]his 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 October 26, 2021 Motion by Czmowski, second by May, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Issuing Transient Merchant License to Tina Novotny for Pop -Up Sale at The Depot (b) Consideration for Approval of Small Business Saturday Event on November 27, 2021 CITY COUNCIL MINUTES — November 9, 2021 (c) Consideration for Approval of Snowplow Truck and Equipment Purchase (d) Consideration for Approval of Airport Hangar 1790 Memorandum of Lease and Subordination Agreement (e) Consideration for Approval of Resolution No. 15371 — Authorization to Execute MnDOT Aeronautics Maintenance and Operations Agreement and Contract (f) Consideration for Approval of Airport Rescue Grant Program Application (g) Consideration for Approval of Out -of -State Travel for Kent Exner to Attend Transportation Research Board Annual Meeting in Washington D.C. from January 9 — 13, 2022 (h) Consideration for Approval of Issuing Temporary Liquor License to Down With Diabetes Alliance on November 27, 2021, at Hutchinson Event Center (i) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Christensen, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. 2022 PAVEMENT MANAGEMENT PROGRAM (LETTING NO. 1, PROJECT NO. 22-01) (a) Approve/Deny Resolution No. 15369 - Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15370 - Resolution Approving Plans and Specifications and Ordering Advertisement for Bids Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this project includes portions of the following streets: Keith Street SW, Neal Avenue SW, Sunset Street SW, Laura Avenue SW, and Linden Avenue SW. Improvements include roadway reconstruction by construction of grading, water main/services, sanitary sewer, storm sewer, curb and gutter, draintile installation, bituminous surfacing, sidewalk, street lighting, landscaping and appurtenances. Mr. Exner noted that a neighborhood meeting was held on November 3, 2021. Items reviewed included the proposed street improvements, project costs & funding, assessments, hearings/process and the schedule & construction items. The estimated total project cost is $2,760,400 and includes amounts for construction costs, engineering/administration fees, geotechnical testing and street lighting materials. The scheduled bid opening date for the project is December 15, 2021. No public comments were received. Motion by Czmowski, second by Christensen, to close public hearing. Motion carried unanimously. Motion by Czmowski, second by May, to approve Resolution Nos. 15369 and 15370. Motion carried unanimously. purpose o this portion o the agen a is to provide the Councilwith information necessary to craft wise policy. Ides items like monthly or annual reports and communications from other entities.) 2 CITY COUNCIL MINUTES November 9, 2021 UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15372 — ADOPTING CITY'S SNOW REMOVAL AND ICE CONTROL POLICY John Olson, Public Works Manager, presented before the Council. Mr. Olson provided a review of the snow removal and ice control policy document. Mr. Olson noted that typographical and grammatical changes have been made to the document and some other minor changes have been made to improve understandability. Specific areas of the policy reviewed by Mr. Olson included the snow emergency plan, snow removal operations, personnel, equipment, snow removal in municipal parking lots/sidewalks/trails, and items related to private properties. Anyone with questions/concerns regarding snow removal operations should contact Public Works. Motion by Christensen, second by Czmowski, to approve Resolution No. 15372. Motion carried unanimously. 10. APPROVE/DENY APPLICATION FOR FEDERAL SAFETY FUNDS (CSAH 115 & JEFFERSON STREET SE INTERSECTION) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that McLeod County is currently seeking funding for improvements at the intersection of CSAH 115 and Jefferson Street SE. Due to the intersection being adjacent to the city's municipal boundary and realizing that the northerly intersection roadway leg will more than likely be transferred to the City's jurisdiction in the future. McLeod County representatives have requested that the City be a Jjoint applicant to potentially incur $1,000,000 in total grant funding ($500,000 allocated to each public agency). City staff supports this approach and has reviewed the County -prepared application. Mr. Exner provided a brief overview of the preliminary project design layout. Motion by Christensen, second by Sebesta, to approve application for federal safety funds for the CSAH 115 & Jefferson Street SE intersection. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Arts Commission Minutes from September 8, 2021 b) EDA Board Minutes from September 22, 2021 (c) Library Board Minutes from September 27, 2021 MISCELLANEOUS 12. STAFF UPDATES CITY COUNCIL MINUTES November 9, 2021 John Olson — Mr. Olson reminded everyone that the leaf vacuuming service ends November 22, 2021. Kent Exner — Mr. Exner noted that the HAWK crossing system at Hwy 7/Montana Street should begin operation soon. Matt Jaunich — Mr. Jaunich reminded everyone that City offices are closed this Thursday, November I Ph, in honor of Veterans Day. 13. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by May, second by Sebesta, to adjourn at 6:45 p.m. Motion carried unanimously. 0 HUTCHINSON CITY COUNCIL REVIEW OF 2022 ENTERPRISE FUND BUDGETS MINUTES TUESDAY, NOVEMBER 9, 2021, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Chad Czmowski, Pat May, Mary Christensen and Dave Sebesta. Others present were: Matt Jaunich, City Administrator; Marc Sebora, City Attorney; Kent Exner, City Engineer; Andy Reid, Finance Director; Andy Kosek, Creekside Manager; Candice Woods, Liquor Hutch Manager; Tim Gratke, Water/Wastewater Manager REVIEW OF 2022 ENTERPRISE FUND BUDGETS Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that a review of the following budgets will be held at today's workshop: Liquor Hutch, Creekside, Refuse/Garbage, Water/Wastewater/Storm Water. In addition, there will be a review of the local sales tax option and the enterprise fund transfers to the general fund. Lastly, an update will be given on the 2022 budget and tax levy and CIP. 2. Liquor Hutch Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the proposed budget for 2022 which sees a total revenue increase of 9%. Mr. Jaunich noted that from 2007 to 2019, total sales have increased at an average annual rate of 2.8% and the customer count has increased by an average annual rate of 1.4%. In 202, sales increased by 20.4% and customer counts increased 3.5%. It is estimated that 2021 sales will be down by 4% compared to 2020, but up 15.6% from 2019 sales. Proposed expenses for 2022 have increased 8.6%. The 2022 budgeted capital item is a placeholder for future upgrades. The last debt service payment occurred in 2020. The budget includes a proposed transfer to the general fund of $550,000. Mr. Jaunich also provided a 10-year liquor fund forecast. Candice Woods, Manager, presented before the Council. Ms. Woods explained changes to promotions at the store — such as removing the "Ad Match Monday" program effective January 1, 2022. No other programs are changing. Creekside Budget Mr. Jaunich explained that Creekside's 2022 production model includes an 8.4% increase in total bagged sales and a 150.4% increase in bulk sales. The large increase in bulk sales is due to no bitcon sales in 2021. Total expenses are budgeted at an increase of 1.13% and total revenue is budgeted at a 18.2% increase. The transfer to the general fund is budgeted at $110,000, the same as 2021. The ending cash balance for Creekside is budgeted at $2,370,509. Mr. Jaunich also provided a 10-year compost fund forecast. Refuse/Garbage Budget Mr. Jaunich noted that the refuse/garbage budget sees an increase in revenue of 2.9% from 2021. The residential rates have held flat with no rate increase since 2008. Expenses for the refuse/garbage budget will see an increase of 18.3% for 2022. There is a $55,000 transfer that goes out to the tree disease infestation/mitigation fund. The capital outlay assumption for 2022 is based on planned improvements to the source separated operating model. This was originally planned in 2021, but was put on hold due to permitting delays with the MPCA. The model has higher costs due to inflation. Mr. Jaunich provided a 10-year refuse fund forecast. Water Fund Budget Mr. Jaunich explained that the Water Fund budget shows a 1.4% increase in total revenue for 2022. There will be no rate increase in 2022 and hasn't been since 2011. Water fund expenses are budgeted at a 0.3% increase. Transfer to the general fund will remain at $70,000 for 2022. The ending cash balance for the water fund budget is budgeted at $2,220,057. Mr. Jaunich provided a 10-year water fund forecast. Kent Exner, City Engineer, spoke about capital items included in the water fund budget. Wastewater Fund Budget Mr. Jaunich explained that the wastewater fund budget sees a 0.2% increase in revenues for 2022. There will be no rate increases in 2022 and there haven't been since 2011. Total expenses have a budgeted decrease of 17.6%. The wastewater fund budget has an ending cash balance budgeted at $5,369,744. Mr. Jaunich provided a 10-year wastewater fund forecast. Local Option Sales Tax Mr. Jaunich reviewed the local option sales tax program and the purpose of it which is dedicated solely to retiring the debt in water and sewer funds. Mr. Jaunich provided quick facts in reference to local option sales tax, which included: local sales tax on a $100 purchase amounts to $.050; local sales tax is applicable to the same retail purchases, subject to Minnesota sales tax; sale of vehicles by dealers are exempt and instead are subject to an excise fee of $20 per vehicle sold; local sales tax is applicable to any sale made within city limits as determined by the last four digits of your zip code; point of possession determines taxability; purchases item/service received/performed within city limits is subject to the local sales tax; purchased items/service is received/performed outside city limits ex exempt from local sales tax; organizations exempt from paying state sales tax are also exempt from the local sales tax. Mr. Jaunich also reviewed other nearby cities with local sales tax. Mr. Jaunich explained that early retirement of debt is an option if cash reserves are sufficient. While the main purpose of the tax is to retire existing debt, it also allows the City to build healthy cash reserves to help with annual street projects with water & sewer infrastructure improvements, improvements that may be needed in each facility, other projects that create efficiencies and stable water/sewer rates. Mr. Jaunich reviewed the outstanding debt. Stormwater Fund Budget Mr. Jaunich explained that total revenue in the stormwater fund budget is seeing an increase of 3.1%. There is a planned rate increase of 3% over nine classifications. Expenses are budgeted at a 27.6% decrease. City's leaf vacuuming program is accounted for in this fund and street sweeping is also funded by this account. The ending cash balance in the stormwater fund is budgeted at $749,092 for 2022. Mr. Jaunich provided a 10-year stormwater fund forecast. Lastly, Mr. Jaunich provided an overview on enterprise fund transfers to the general fund. Mr. Jaunich noted that the liquor fund continues to do really well. There are no rate changes for garbage, water and sewer users. There is a slight rate increase in the stormwater fees. The enterprise fund transfers into the general fund account for 5.8% of general fund revenue. Cash balances continue to remain healthy. Capital needs are starting to increase in the Creekside/Water/Sewer funds. In addition, regulatory agencies may impact future needs. Mr. Jaunich provided an update on the general fund budget. Mr. Jaunich noted that there have been no changes made to the preliminary budget, tax levy and CIP from September where the proposal was a 7.0% tax levy increase. The wage study was just completed. He is meeting with directors over the next two weeks to discuss department budgets. Mr. Jaunich plans on updating the Council in two weeks. Ideas continue to come in for use of the ARP funds. Mr. Jaunich did provide an updated levy assumption related to the new police facility. He noted that the September debt plan assumed structuring the 2022 police facility debt with larger principal payments in the early years, essentially replacing the principal payments on the existing debt that the City paid off in August 2021. The benefit to this structure is lower debt levies in the later years of the debt plan. The negative is a significant increase in the 2022 debt levy (16.2%) and overall City tax levy (7%). The City can structure the final 2022 debt to place less principal repayments in the first few years of the 2022 police facility debt which will soften the increase to the 2022 debt levy (6.7%) and overall City tax levy (4.5%) but will increase the debt levies in later years. The City can also use additional cash reserves to buy down the new police facility debt. Options include the Community Improvement Fund, General Fund Reserves, Capital Projects Fund and the federal ARPA funds. The updated debt levy assumption includes structuring the 2022 new debt to reduce the principal payments in the first few years and spread across the remaining debt term. It also assumes using $1,000,000 of City reserves to lessen the debt burden throughout the new police debt term. The proceeds from the sale of the existing police facility and EEOC can be used to further reduce future debt tax levies by placing those proceeds in the debt service fund. This has not been factored into the debt plan at this point. Any impact would likely affect the levy years occurring after 2023. The updated levy assumption would increase the overall tax levy by 4.5% which is a 2.6% reduction as proposed in September. The Council had favorable comments on the proposed levy assumption and the adjustment to the debt structure for the new police facility. 3. Adjournment Motion by May, second by Sebesta, to adjourn the workshop at 5:10 p.m. Motion carved unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Bobcat S76 Skid loader for consideration of approving PO# 020202 Agenda Item: Department: Parks LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Randy Carter Agenda Item Type: Presenter: Randy Carter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Landscaping and snow removal is considered to be one of the most essential functions of the Parks Dept. It helps maintain the aesthetics of our community. Skid loaders encounter severe damage from extreme heat, severe cold, debris and heavy payloads. The Parks Department reviewed two skid loaders of equal size and based the recommendation off, the construction of the skid loader, safety features and functionality. The Bobcat S76 has been reviewed by the fleet committee and approved for a 2022 purchase since the old skid loader has met its usable life expectancy. Both quotes are of "State Pricing" and have a reasonable "Trade -IN" allowance and are in reference to the extra long wait time for delivery. BOARD ACTION REQUESTED: Consideration of approving PO# 020202 for $29,900 for Acquisition of Bobcat S76 Skid loader. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes 0 PROJECT SECTION: Total Project Cost: $ 50,529.65 Total City Cost: $ 29,900.00 Funding Source: Equipment replacement fund Remaining Cost: $ 20,629.65 Funding Source: Trade in allowance of old skid loader BobcatProduct Quotation i ® Quotation Number: NEW Date: Ship to Bobcat Dealer Bill To CITY OF HUTCHINSON Crawlbrd's Equipment, CITY OF HUTCHINSON Inc.,Cambridge,MN HUTCHINSON, MN 65350 4898 HWY 95 NW HUTCHINSON, MN 55350 Email: CAMBRIDGE MN 65008 RCARTER@CI.HUTCHINSON.M Phone: (763) 689-1794 N.US Fax: (763) 689-3028 Contact: Charlie Crawford Phone: 763-689-1794 Cellular: 812-860-3960 E Mail: chad rawfordMuip.com Description S76 T4 Bobcat Skid Steer Loader 74.0 HP Tier 4 V2 Bobcat Engine Auxiliary Hydraulics: Variable Flow Backup Alarm Bob -Tack Bobcat Interlock Control System (BICS) Controls: Bobcat Standard Cylinder Cushioning - Lift, Tilt Engine/Hydraulic Performance De -rate Protection Glow Plugs (Automatically Activated) Horn Inshumentation: Standard 5" Display (Rear Camera Ready) with Keyless Start, Engine Temperature and Fuel Gauges, Hour meter, RPM and Warning Indicators. Includes maintenance interval notification, fault display, job codes, quick start, auto idle, and security lockouts. Lift Arm Support Factory Installed P69 Performance Package Power Bob -Tack 7-Pin Attachment Control High Flow Two -Speed C88 Comfort Package Clear Sides Enclosed Cab with Auto HVAC Sound Reduction Touch Display with Radio &amp; Bluetooth Selectable Joystick Controls Attachments 74" Heavy Duty Bucket --- Bolt -On Cutting Edge, 74" Description SIDE LIGHT KIT STROBE LIGHT KIT Total of Items Quoted Freight Charges Dealer Assembly Charges Part No Qty Price Ea. Total M0369 1 $54,488.00 $54,488.00 Lift Path. Vertical Lights, Front and Rear LID Operator Cab Includes: Vinyl Adjustable Vinyl Suspension Seat, Top and Rear Windows, Parking Brake, Seat Bar and Seat Belt Roll Over Protective Structure (BOPS) meets SAE-J 1040 and ISO 3471 Falling Object Protective Structure (FOPS) meets SAE- J1043 and ISO 3449, Level I; (Level 11 is available through Bobcat Parts) Vinyl suspension seat with 2-point seat belt Parking Brake: Wedge Brake System Tires: 12-16.5, 12PR, Bobcat Heavy Duty Warranty: 2 years, or 2000 hours whichever occurs first M0369-PO6-P69 1 $7,643.00 $7,643.00 Dual Direction Bucket Positioning Automatic Ride Control Reversing Fan M0369-P07-C88 1 $9,673.00 $9,673.00 Heated Cloth Air Ride Suspension Seat Premium LED Lights Rear View Camera M0369-RO1-CM 1 $862.00 $862.00 7272680 1 $1,219.00 $1,219.00 6718007 1 $252.00 $252.00 Part No Qty Price Ea. Total 1 $335.00 $335.00 1 $490.00 $490.00 $74,962.00 $713.00 $53.00 Trade-in 2009 BOBCAT S250 A5GM36211 ($19,500.00) Discount skid loader ($17,569.00) Discount DSICOUNT ($5,856.00) Sales total before Taxes and Trades $32,803.00 Taxes: STATE OF MN EXEMPT Quote Total - US dollars $32,803.00 Notes: I All prices subiect to chume without prior notice or oblation. This price quote snnersedes all moodin$ price quotes. I Customer Acceptance: Purchase Order: Authorized Signature: Print: Sign: Date: Fax Trans nission-Form Or . Farm -Rite Egtop meiit: •I�stum pB�x26 =031_ ., Fes:320475-3232' Awl TO FAX f`4(J"Q ISOM DATEIva `01W I...�,.:*...`...,'� I-nN S-�Io bo bcett wq� r T � I °- c 26ScvoJ Re&uc;f;i� 7 " IN6 ppottoTbDOI LED Paac�qe14, ��- eC� I R- �Lev� . mjffs�tn t led �qll. � u gS5 U o an 1 Al1, 46,- r S:. f%410% .� t. %IF n ess Its #� �.°!� cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Request to Sell at Auction 1990 Chevrolet Tanker Truck Agenda Item: Department: Fire LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Mike Schumann Agenda Item Type: Presenter: Mike Schumann Reviewed by Staff ❑] Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The 1990 Chevrolet Tanker Truck is 100% rural owned and was approved to be sold at the last Annual Rural Fire District Meeting. The minutes from that meeting are attached. Because this vehicle is titled to the City of Hutchinson both the City and rural fire district must approve of the sale. BOARD ACTION REQUESTED: Approve to Sell at Auction 1990 Chevrolet Tanker Truck 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 MINUTES 2021 Annual Rural Fire District Meeting Hutchinson Fire Department February 4, 2021 CALL TO ORDER: Chief Mike Schumann called the meeting to order at 7:15 pm at the Hutchinson Event Center with Social Distancing. The meeting started late due to technical difficulties with the go to meeting application being used to allow township representatives to attend virtually. While waiting for the go to meeting to start, Chief Schumann reviewed the 2020 Calls by Township and recognized the Cedar Mills Township for redirecting Cares Act Funding toward the purchase of masks and respirators for the HFD. MEMBERS PRESENT: In Person: Acoma: Tom Dahl, Al Feser Biscay (city of): Donovan Dose Cedar Mills (city of): No Representation Cedar Mills Township: Bruce Krueger, Lorallen Schmeling, Jon Hoff, Karen Kohls; Jon Sanken Ellsworth: No Representation Hassan Valley: Shirley Troska Hutchinson: Craig Powell Lynn: Jackie Reiner, Kurt Reiner, Doug Johnson, Jeremy Bleil City of Hutchinson: Finance Director Andy Reid; City Administrator Matt Jaunich, Mayor Gary Forcier Hutchinson Fire Department: Chief Schumann, Assistant Chief Randy Abelson, Battalion Chief Jason Sturges, Battalion Chief Brandon Vik, Lt Jeff McKay, Lt Daryl Rath, Secretary Dan Sargent Attending Virtually (via go to meeting app): Boon Lake: Tony Kurth, Lisa Radtke, Randy Kruse Collins: Pete Maiers, Russ Corson, Gary Ash Hutchinson: Craig Schmeling, Marlin Swenson Approval of Minutes from the 2020 Meeting Copies of the 2020 Meeting Minutes were distributed prior to the meeting. No changes or corrections submitted. Motion by Tom Dahl of Acoma Township to accept the 2020 Meeting Minutes. Second by Doug Johnson of Lynn Township. Motion Carried. Review of 2020 Annual Report Chief Schumann presented the 2020 Annual Report (see bound copy). Included in the report is a breakdown of 484 emergency calls for service including 152 calls in rural districts. See report for additional details. Question from the floor about Armored Vests. Answered by AC Abelson. Questions about the New Tanker and Grass/Rescue Trucks. Answered by Chief Schumann. Both trucks are on schedule and expected to come in under budget. Questions and discussion about the monetary value of the current Rescue 8 when it is transitioned to a City Utility Vehicle. How much credit will the townships receive based on the value of what was a shared rescue truck and is now going to be a city truck? Answer by Chief Schumann is that it will still be a shared truck to be used as a utility vehicle on both city and rural calls to move people and materials to where they need to go without using personal vehicles or having to roll another engine or tanker for a transportation need that can be handled by a crew cab pickup. Tom Dahl of Acoma Township expressed concern about adding an 8th vehicle to the shared fleet without express approval (a motion) from the townships. Tom Dahl went on to make a motion to keep the 2002 F250 Ford Crew Cab as a Shared Vehicle between City and Townships after the new Crew Cab Grass/Rescue Rig which is also to be a Shared Vehicle is placed in service. Second by Kurt Reiner of Lynn Township. Motion Carried. Question about how much the new Tanker is expected to come in under budget? Answer by Lt McKay is about $2,000 under budget ($263,000 expected cost versus $265,000 budget). Battalion Chief Vik gave an update on Training and the impact of COVID 19. Assistant Chief Abelson gave a verbal report on Hiring and Staffing levels. Battalion Chief Sturges gave a verbal report on Equipment, including radios, COVID related supplies, and the replacement of hard suction hoses used with portable water tanks on rural calls. Old Business Acknowledgement by Chief Schumann that the Tanker and Grass/Rescue replacement truck projects were already discussed. New Business Andy Reid made a Financial Report (overhead presentation) of the 2020 Actuals that showed Actual Costs under budget with a Year End Rural Fund Balance of $40,782. There also was a correction to what was sent out prior to the meeting to account for a discrepancy related to the Becker Mutual Aid Call. Question by Tom Dahl of Acoma Township about over payment of the last rural truck. Answered by Andy Reid that those overpayments are included in the Current Fund Balance. Chief Schumann spoke about maintenance and repairs needed for the current Rescue 8 ($2,000) and Tanker 6 ($23.000). Requested that the 2021 Budget include $25,000 to keep these two trucks in good working order. Andy Reid made an overhead presentation on the Proposed $130,000 Rural Fire Assessment. This led to discussion about how much surplus the townships would like to carry. A 5 minute break was called for to allow the townships to discuss the proposed 2021 Assessment. The meeting resumed with a discussion about the disposition of Tanker 4. Another short break was taken to allow townships to discuss among themselves what they would like to have done with Tanker 4. The meeting resumed with a Motion to sell the 1990 Chevy Tanker Truck by Pete Maiers of Collins Township, to leave the proceeds of the sale in the fund balance, and to set the 2021 Rural Assessment at $130,000. Second by Bruce Krueger of Cedar Mills. Motion Carried. Update by Chief Schumann regarding burn permits online managed by the county versus on paper and managed by the townships. Motion by Kurt Reiner of Lynn Township to pursue the county system. Second by Craig Powell of Hutchinson Township. Motioned Carried by a majority with one "nay" vote by Acoma Township. Chief Schumann indicated that he would be sending a revised version of the 2020 Actual Financial Report to include the "Becker Fire Adjustment" that was covered in Andy Reid's Financial Report but was not yet available for distribution prior to the meeting. Motion by Kurt Reiner of Lynn Township to adjourn. Second by Craig Powell of Hutchinson Township. Motion Carried. Meeting adjourned at 9:52 pm. Minutes submitted by Hutchinson Fire Department Secretary Dan Sargent Next Meeting is Feb 3rd, 2022 cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration approving disposal of surplus property (Resolution #15373). Agenda Item: Department: Parks LICENSE SECTION Meeting Date: 11/2312021 Application Complete N/A Contact: Randy Carter Agenda Item Type: Presenter: Randy Carter Reviewed by Staff �f Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Parks Dept. department has surplus property no longer needed for municipal operations as described: For sale at auction: 1. Western 8' Straight Snow plow 2. Boss Multi V-Blade snow plow 3. John Deere 8' sickle mower 4. VTS removable skid loader Tracks 5. 200gal herbicide sprayer This equipment is no longer needed for municipal operations, The intent is to offer this equipment for sale through Fahey Sales at an upcoming auction. Proceeds from these transactions shall be deposited into the Equipment Replacement Fund (701-4951-90540). Adopted by the City Council this 23rd day of November,2021 BOARD ACTION REQUESTED: Consideration of approve/reject disposal of surplus property, Resolution #15373 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 RESOLUTION NO. 15373 RESOLUTION APPROVING DISPOSAL OF PARKS AND REC DEPARTMENT SURPLUS PROPERTY WHEREAS, the Hutchinson Parks and Rec Department has equipment that is no longer needed for municipal operations, AND WHEREAS, the Hutchinson City Code Section 91, Subdivision 3, Paragraph C provides for the sale at auction of surplus equipment, AND NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That the Hutchinson City Council hereby approves the sale at auction of the surplus property identified herein. Items to be sold at auction through Fahey Sales. 1. Western 8' Straight Snow plow 2. Boss Multi V-Blade snow plow 3. John Deere 8' sickle mower 4. DXT removable skid loader Tracks 5. 200ga1 Herbicide Sprayer Proceeds from these transactions shall be deposited into the Equipment Replacement Fund (701-4951- 90540). Adopted by the City Council this 23rd day of November, 2021 Gary Forcier, Mayor ATTEST: Matthew Jaunich, City Administrator cR HUTCHINSON CITY COUNCIL "W NSON Request for Board Action ON PURPOSE. Consideration for approval of disposal of surplus property; Resolution No. 15374 Agenda Item: Department: Creekside LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Andy Kosek Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Creekside's Compost and Refuse Fund's each have one piece of surplus property to be sold at auction. COM P-766-TK1 1993 Ford Truck, 1-Ton w/ service body VIN: 1 FDKE30Ml PHB42766 This unit has been identified as a "Do Not Replace", therfore has not and will not be replaced. REFS-394-FKL 2014 TCM Forklift truck Serial: U1F2-9J1394 This unit was replaced in 2021. The intent is to offer these units for sale at a Fleet & Government Services auction conducted by Fahey Sales in December 2021. Proceeds from the sales will be deposited into the respective funds. BOARD ACTION REQUESTED: Approve/Deny Resolution No. 15374, declaring COMP-766-TK1 and REFS-394-FKL as surplus property for sale at auction Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A RESOLUTION NO. 15374 RESOLUTION TO SELL AT AUCTION SURPLUS PROPERTY WHEREAS, the Hutchinson Compost and Refuse Departments have accumulated surplus property; and WHEREAS, the Hutchinson City Code provides, pursuant to Section 91, Subdivision 3, Paragraph C, for the sale at auction of surplus City property; and WHEREAS, the Compost and Refuse Departments have determined that it is in possession of surplus property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the following surplus City property be sold at auction and proceeds from the sale be credited to the appropriate account: 1. 1993 Ford Truck, 1-Ton w/ Service Body Unit: COMP-766-TK1 VIN: 1 FDKE3 0Ml PHB42766 2. 2014 TCM Forklift Truck Unit: REFS-394-FKL S/N: U1F2-9J1394 Adopted by the City Council this 23rd day of November, 2021. APPROVED: Gary Forcier, Mayor ATTEST: Matt Jaunich, City Administrator HUTCHINSON CITY COUNCIL Cityaf Request for Board Action 79 =-W Agenda Item: Traffic Control Resolution - Shady Ridge Rd NW (Hwy 7 W - Connecticut) Department: PW/Eng LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Kent/John Agenda Item Type: Presenter: Kent/John Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Traffic resolution to restrict parking on west side of Shady Ridge Rd NW between Highway 7 W and Connecticut St NW. Abutting land uses in this area are commercial in nature. This street acts as a collector street in this area. The street in this area is 36' wide. Minimum width for parking on both sides of a collector street is 38'. To improve its functionality as a collector street, staff recommends installing a parking restriction on the west side of Shady Ridge Rd. A map is attached. BOARD ACTION REQUESTED: Approve/deny Resolution No. 15375, a traffic control resolution. Fiscal Impact: 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: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15375 RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES 1. WHERAS, the City of Hutchinson received a request from area property owners, and; 2. WHEREAS, the Police Chief, City Engineer and Public Works Manager agree that the following areas have traffic control concerns which warrant installation and/or removal of traffic control devices, and; 3. WHEREAS, the Hutchinson City Council has the authority to establish locations as points where traffic control devices shall be installed and/or removed, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code, and; 4. WHEREAS, the current width of the street is 36 feet, surrounding property uses are commercial in nature and the minimum width for parking on both sides of a collector street is 38 feet, installation of parking restrictions on the west side will more safely accommodate traffic on this collector street. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: That the Council hereby establishes the following traffic control devices shall be removed: 1. Shady Ridge Rd NW — Install No Parking on the west side of Shady Ridge Rd NW between Highway 7 W and Connecticut St NW. Adopted by the City Council this 23rd day of November, 2021. Gary Forcier, Mayor ATTEST: Matt Jaunich, City Administrator Fmay., ass. ! �� � ♦'fie � � ie � i " iONH!¢� IC111 {T NW NoNoparkin� z w West side of Shady Ridge Rd NW 0 (Hwy 7 W to Connecticut St NW z +� .► x M HUTCHINSON CITY COUNCIL c`=yaf 7 �7 Request for Board Action 7AZ "-va Agenda Item: RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL OU Department: EDA LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In September 2017 the City Council approved a Tax Increment Financing District (TIF) for Hutchcobble, LLC to make it feasible to construct the Cobblestone Inn hotel. TIF was needed to offset the high costs of environmental remediation needed on the site. In setting up the TIF District a job creation goal of 11.5 full-time equivalents (FTE's) was established. In August 2021 the City received a request from Titanium Partners, owners of the project, to revise the job creation goal down to 7.5 FTE, citing operating efficiencies and general economic conditions. The higher level of staffing is simply not required. A copy of the request from Titanium Partners is included for your review. The EDA Board has reviewed the request and is recommending approval. They observed that the main objective of the project was to redevelop the Hwy 7/15 intersection and that job creation was never a primary goal. Per Minnesota statute, the job creation goal can only be revised following a public hearing. At the public hearing, staff will provide additional details and answer any questions that arise. If you have any questions or need additional information, please give me a call anytime at (320) 234-4223. BOARD ACTION REQUESTED: Approval of resolution calling for a public hearing 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: RESOLUTION NO. 15376 A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE PROPOSED REVISION OF BUSINESS SUBSIDIES GOALS FOR HUTCHCOBBLE LLC WHEREAS, Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Act"), provides that the City, as a local government agency within the meaning of the Act, may grant a business subsidy and must establish measurable, specific and tangible goals for the subsidy, to include wage and job goals; and, WHEREAS the City, as a local government agency within the meaning of the Act, has discretion in establishing said wage and job goals; and, WHEREAS, the City of Hutchinson provided a business subsidy to Hutchcobble, LLC on September 26, 2017; and, WHEREAS, Hutchcobble LLC has requested, in light of current economic conditions, a revision of its job creation goals; THEREFORE, BE IT RESOLVED by the City of Hutchinson, that a public hearing on the proposed revision of business subsides goals for Hutchcobble LLC shall be held on December 14, 2021, at 6:00 p.m., at the Hutchinson City Council Chambers in City Center, located at 111 Hassan Street SE, Hutchinson, Minnesota; and, BE IT FURTHER RESOLVED by the City of Hutchinson, that the City Administrator, or his designee, shall cause notice of the public hearing to be published in a newspaper of general circulation in the City of Hutchinson at least once not less than ten (10) days prior to the date fixed for the public hearing; and, BE IT FURTHER RESOLVED by the City of Hutchinson, that a copy of the proposed revision of business subsides goals for HutchCobble LLC shall be available for public inspection, following publication of the notice of public hearing at the Hutchinson City Offices, between the hours of 8:00 a.m. and 4:30 p.m., on normal business days. Adopted by the City Council this 231 day of November 2021. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator August 31, 2021 Mr. Miles R. Seppelt Economic Development Director City of Hutchinson 1164 Benjamin Avenue SE Hutchinson, MN 55350 Dear Mr. Seppelt, I am writing to inquire if it would be possible for the Hutchinson City Council to revise the job creation goal for the Cobblestone Inn Hotel project (TIF 4-19). Currently, the job creation goal is set at 11.5 full-time equivalents. This estimate was based on industry standards at the time the project was first being considered, but failed to factor in efficiencies and productivity gains that came about from the design and operation of the hotel. The hospitality industry, like many others, is finding ways to deliver the same level of service with fewer people. In the 215t century, we simply don't need that level of staffing (11.5 FTE) to operate, and I don't foresee that we ever would. A more achievable goal would be 7.5 full-time equivalents, so I am requesting that the job creation goal for the project be reset to that level. Thank you for your consideration. Sincerely, Brian Forcier President, Titanium Partners LLC 1330 East 3' Street, Duluth, Minnesota 55805 218461-4344 PROPOSED REVISION OF BUSINESS SUBSIDIES GOALS HUTCHCOBBLE LLC Original Job Creation Goal 11.5 full-time equivalents (FTE's) Proposed Job Creation Goal 7.5 full-time equivalents (FTE's) HUTCHINSON CITY COUNCIL fia� Request for Board Action7kia' Agenda Item: RESOLUTION OF THE CITY OF HUTCHINSON, MINNESOTA CALLING FOR Department: EDA LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Brian Forcier, the developer for the Cobblestone Inn hotel, has expressed an interest in redeveloping the Jorgensen Hotel located at 2 Main Street South here in Hutchinson. Mr. Forcier's plan is to redevelop the upper two floors of the building into an up -scale hotel and - if its feasible from a cost and engineering perspective - potentially add one or two floors to the building. Due to the age and poor condition of the structure, redevelopment of the property would not be feasible economically unless public assistance is provided. City staff has determined the building does meet the legal definition of "blight." Mr. Forcier has submitted an application to the City for the establishment of a Tax Increment Financing (TIF) District to help offset costs of redevelopment. A public hearing is required to establish a TIF district and staff is proposing that such hearing be held on December 14, 2021. At the public hearing staff will provide additional details about the project and answer any questions that arise. If you have any questions or need additional information, please give me a call anytime at (320) 234-4223. BOARD ACTION REQUESTED: Approval of resolution calling for a public hearing 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: RESOLUTION NO. 15378 RESOLUTION OF THE CITY OF HUTCHINSON, MINNESOTA CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-22 (A REDEVELOPMENT DISTRICT) BE IT RESOLVED by the City Council (the "Council") for the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Public Hearing. The Council shall meet on December 14, 2021, at approximately 5:30 P.M., to hold a public hearing on the proposed adoption of a Modification to the Development Program for Development District No. 4 and the proposed establishment of Tax Increment Financing District No. 4-22 (a Redevelopment District) therein and the Tax Increment Financing Plan (the "TIF Plan") therefore, which are referred to collectively herein as the "Plans," all pursuant to and in accordance with Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of an area of the former Jorgensen Hotel building site on Main Street South within the City. Section 2. Notice of Public Hearing. Filing of Plans. City staff is authorized and directed to work with Ehlers & Associates, Inc., to prepare the Plans and to forward documents to the appropriate taxing jurisdictions including McLeod County and Independent School District No. 423. The City Administrator is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to December 14, 2021, and to place a copy of the Plans on file in the City Administrator's office at City Hall and to make such copy available for inspection by the public. Dated: November 23, 2021 EXHIBIT A NOTICE OF PUBLIC HEARING City of Hutchinson McLeod County STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson (the "City"), McLeod County, State of Minnesota, will hold a public hearing on December 14, 2021 beginning at approximately 5:30 PM, at the City Council Chambers located at III Hassan St SE, Hutchinson, Minnesota, relating to the City's proposed adoption of a Modification to the Development Program for Development District No. 4 (the "Development District" or the "Modification"), the proposed the establishment of Tax Increment Financing ("TIF") District No. 4-22 (a redevelopment TIF District) (the "TIF District") within the Development District, and the proposed adoption of a TIF Plan of TIF District 4-22 (the "TIF Plan") therefor, pursuant to Minnesota Statutes, 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended. In light of the recent concerns for social distancing as result of the Covid - 19 pandemic, and as an alternative to in person attendance at the public hearing, members of the public are encouraged to provide comments in writing to Miles R. Seppelt, Economic Development Director, City of Hutchinson, at 1164 Benjamin Avenue SE, Hutchinson, MN 55350 or to mseppeltgci.hutchinson.mn.us or by phone at (320) 234-4223 at any time up to 4:00 pm on May 26, 2020. Comments received in this alternative manner will be added to the record at the public hearing for consideration by the City Council. Copies of the Modification and the TIF Plan and a summary of the subsidy agreement are on file and available for public inspection at the office of the Economic Development Director at City Hall. The property to be included in the TIF District is located within the Development District and the City. A map of the Development District and the TIF District therein is set forth below. Subject to certain limitations, tax increment from the TIF District may be spent on eligible uses within the boundaries of the Development District. [See Attached Map of the Development District and the TIF District] All interested persons may appear at the hearing and present their views orally or prior to the meeting in writing. BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA /s/ City Clerk A-1 HUTCHINSON CITY COUNCIL c`=yaf Request for Board Action 7AZ Owl-7 Agenda Item: AMENDMENT TO GRANT AGREEMENT WITH MINNESOTA DEED Department: EDA LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Several years back the Minnesota Department of Employment and Economic Development (DEED) awarded a $450,000 grant to the City of Hutchinson to assist with the expansion of UPONOR to the community. A condition of the grant is that UPONOR create 83 new jobs within two years, that is by December 31, 2021. Due to the COVID pandemic, demand for UPONOR's products declined last year and new hiring stopped, so they will not hit their goal of 83 new jobs created by the end of this year. In response to the pandemic, the Minnesota legislature authorized a 1-year extension for companies to meet their job creation goals. DEED has authorized the 1-year extension for UPONOR, but the City needs to agree and the Grant Agreement language updated accordingly. No city money is involved. The amendment to the grant agreement is enclosed for your review. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Approval of Grant Amendment and authorization for staff to sign 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: Amendment # 2 for Grant Contract Agreement SC 143291 CDAP-18-0007-H-FY18 Grant Contract Agreement Start Date: Original Grant Contract Agreement Expiration Date: Current Grant Contract Agreement Expiration Date: Requested Grant Contract Agreement Expiration Date: 04/20/2018 03/301/2021 03/31/2022 03/31/2023 Total Grant Contract Agreement Amount: Original Grant Contract Agreement Amount: Previous Amendment(s) Total: This Amendment $450,000 $450,000 $ N/A $ N/A This amendment is by and between the State of Minnesota, through the Department of Employment & Economic Development, 332 Minnesota Street, Suite E200, St. Paul, MN 55101 ("State") and City of Hutchinson, I I I Hassan St SE, Hutchinson, MN 55350 ("Grantee"). Recitals 1. The State has a grant contract agreement with the Grantee identified as CDAP-18-0007-H-FY18 ("Original Grant Contract Agreement") to provide funds to assist in the expansion of Uponor, Inc. 2. Uponor, Inc. will not meet their job creation and wage goals by the project Compliance Date. The State and Grantee have agreed to extend the Compliance Date until December 31, 2022 as allowed by Laws of Minnesota 2021, 1st Spec. Sess. chapter 10, article 2, section 21. 3. The State and the Grantee are willing to amend the Original Grant Contract Agreement as stated below. Grant Contract Agreement Amendment In this Amendment, changes to pre-existing Contract Language will use stfil�k for deletions and underlining for insertions. REVISION 1. Term of Agreement, Clause 1.3 "Compliance Date" is amended as follows: 1.3 Compliance Date: Deeembe-r 31December 31, 2022 REVISION 2. Term of Agreement, Clause 1.4 "Expiration Date" is amended as follows: 1.4 Expiration Date: Mafeh 3-1, Z9 March 31, 2023 REVISION 3. Exhibit A, Grantee Duties, Clause 2.2(d) "Job Creation and Wages" is amended as follows: d) If the Borrower fails to meet the job creation and wage goal level commitments on the Compliance Date, the Grantee may, , extend the gr"� Compliance Date af through December 31, 2022, after approval by the State. If, after the extension, the Borrower fails to meet the job creation goal and wage level commitment, the award amount shall be reduced proportionally and the Borrower required to repay the Grantee all or a proportional share of the Loan funds on accelerated term. If the borrower is required to repay a proportional share, the amount shall be determined based upon the difference between the "wage tranche" values defined in section 2.2(b) above and the "wage tranche" value of actual jobs created. The Grantee will then also be required to return to the State all or proportional share of the of the Loan funds. The interest rate on the "accelerated" portion of the loan shall increase to five percent (5.0%) as defined in the Promissory Note. The Original Grant Contract Agreement and any previous amendments are incorporated into this amendment by reference. Rev. 7/20 1. STATE ENCUMBRANCE VERIFICATION Individual certifies that funds have been encumbered as required by Minn. Stat. §16A.15 Signed:�� Date: 11/09/2021 SWIFT Contract/PO No(s). 143291/PR 66589 2.GRANTEE The Grantee certifies that the appropriate person(s) have executed the grant contract on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. Title: Date: 3. STATE AGENCY Title: Date: Distribution: Agency Grantee State's Authorized Representative HUTCHINSON CITY COUNCIL ci=yaf► Request for Board Action 7AZ 0 W1_7 Agenda Item: CONSIDER APPROVAL OF AMENDED AND RESTATED DEVELOPMENT AG� Department: EDA LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: A review of documents related to Tax Increment Financing District (TIF) 4-22 (Warrior Manufacturing) revealed that some needed technical language should be added to the Development Agreement between the City and Silver Lake Capital Partners (which owns the property and building housing Warrior Manufacturing). The changes made are purely technical in nature and do not alter the substance of the Development Agreement. In addition, City Council approval is being requested for the the Tax Increment Revenue Note specified in the Development Agreement. This is a "pay-as-you-go" revenue note to be paid only from the property taxes paid in by Silver Lake Capital Parters, so no City dollars are obligated. The updated Development Agreement and Tax Increment Revenue Note are both enclosed for your review. Both documents been reviewed by the City Attorney and Finance Director and staff is recommending approval. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: (a) Approval of the Amended and Restated Development Agreement between the City of Hutchinson and Silver Lake Capital Partners, LLC and (b) Approval of Tax Increment Revenue Note 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: AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON, MINNESOTA ► k SILVER LAKE CAPITAL PARTNERS, LLC Dated as of November , 2021 THIS INSTRUMENT DRAFTED BY: Fryberger, Buchanan, Smith & Frederick, P.A. 700 Lonsdale Building 302 West Superior Street Duluth, Minnesota 55802 CJV/22546-0 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS............................................................................................ 1 Section 1.1 Definitions................................................................................ 1 ARTICLE 2 REPRESENTATIONS AND WARRANTIES...................................................... 3 Section2.1 By the City.................................................................................. 3 Section 2.2 By the Developer........................................................................ 3 ARTICLE 3 USE, OWNERSHIP OF THE DEVELOPMENT PROPERTY; RESTRICTIONS......... 4 Section3.1 Use.......................................................................................... 4 Section3.2 Ownership.................................................................................. 4 Section 3.3 Damage or Destruction................................................................ 5 ARTICLE 4 CONSTRUCTION OF PROJECT.................................................................. 5 Section 4.1 Construction Plans.................................................................... 5 Section 4.2 Undertaking of Improvements....................................................... 5 Section 4.3 Certificate of Completion............................................................. 5 Section 4.4 Progress Reports....................................................................... 6 Section 4.5 Access to Property..................................................................... 6 ARTICLE 5 DEFENSE OF CLAIMS; INSURANCE............................................................ 6 Section 5.1 Defense of Claims..................................................................... 6 Section 5.2 Insurance................................................................................ 7 ARTICLE 6 PUBLIC ASSISTANCE................................................................................ 8 Section 6.1 Development Costs; Public Assistance ........................................... 8 Section 6.2 Conditions Precedent to Public Assistance ....................................... 9 Section 6.3 Obligations of Developer.............................................................. 9 ARTICLE 7 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER ............................... 9 Section 7.1 Transfer of Property and Assignment .............................................. 10 Section 7.2 Termination of Limitations on Transfer ............................................. 10 ARTICLE 8 EVENTS OF DEFAULT; FEES....................................................................... 10 Section 8.1 Events of Default......................................................................... 10 Section 8.2 Remedies on Default.................................................................... 10 Section 8.3 No Remedy Exclusive................................................................... 11 Section8.4 Waivers...................................................................................... 11 Section 8.5 Agreement to Pay Attorney's Fees ................................................... 11 ARTICLE 9 BUSINESS SUBSIDY STATUTE..................................................................... 12 Section 9.1 Statutory Requirements................................................................. 12 Section 9.2 Description of Business Subsidy......................................................12 Section 9.3 Public Purpose of the Business Subsidy ............................................ 12 Section 9.4 Goals of the Business Subsidy........................................................ 12 ARTICLE 10 GENERAL PROVISIONS..............................................................................12 Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable........... 12 Section 10.2 Equal Employment Opportunity...................................................... 13 Section 10.3 Non-Discrimination........................................................................13 Section 10.4 Titles of Articles and Sections..........................................................13 Section 10.5 Term of Agreement....................................................................... 13 Section 10.6 Provisions Surviving Termination..................................................... 13 ARTICLE 11 ADMINISTRATIVE PROVISIONS...................................................................13 Section 11.1 Notices.......................................................................................13 -1- Section 11.2 Binding Effect.............................................................................. 13 Section 11.3 Severability................................................................................. 14 Section 11.4 Amendments, Changes and Modifications ......................................... 14 Section 11.5 Further Assurances and Corrective Instruments..................................14 Section 11.6 Execution Counterparts................................................................. 14 Section 11.7 Applicable Law............................................................................ 14 Schedule A Development Propery.....................................................................17 Schedule B Improvements & Estimated Costs.....................................................18 Exhibit A Certificate of Completion.................................................................19 Exhibit B Form of TIF Note...........................................................................20 DEVELOPMENT AGREEMENT This Amended and Restated Development Agreement (the "Agreement") is made as of November _, 2021, by and between the City of Hutchinson, Minnesota, a Minnesota municipal corporation (the "City"), and Silver Lake Capital Partners LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, in order to promote job creation in the community and strengthen the local economy the City Council adopted Resolution No. 14397 on August 28, 2018, Adopting a Modification to the Development Program for Development District No. 4; and establishing Tax Increment Financing District No. 4-20 Therein and Adopting a Tax Increment Financing Plan Therefor; and WHEREAS, the City believes that the Development activities associated with the Project pursuant to this Agreement are in the best interests of the City and benefits the health, safety, morals and welfare of its residents, and complies with the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: ARTICLE 1 Definitions Section 1.1 Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Approval Date" means the date upon which the final execution of this agreement takes place. "Benefit Date" is the date when the improvements are finished for the entire project; or when the business occupies the property, whichever is earlier and the business receives a Certificate of Occupancy from the City. "Business Subsidy' means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, and reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business, and as defined by the Business Subsidy Statute. "Business Subsidies Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "Business Subsidy Report" means the annual report required to comply with M.S. 116J.994 Subd. 7.(b). "Capital Investment" means any investment that is defined as depreciable for purposes of the U.S. Internal Revenue Service. "Certificate of Completion" means a certification in the form attached hereto as Exhibit A, 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. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property. "County" means the County of McLeod, Minnesota. "Default Notice" means written notice from the City to the Developer setting forth the Event of Default and the action required to remedy the same. "Developer' means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Qualified Business." "Development Property" means the lot owned by the Developer legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Event of Default" means as any of the events set forth in Article 8, hereof. "Full Time Equivalent Job" means those jobs in which an employee, or multiple employees whose combined time on the job, totals to at least 2,080 hours of work within a 12- month period. "Improvements" means the improvements to be undertaken by the Developer as a part of the Project on the Development Property all as further described in Schedule B attached hereto. "McLeod County' means the County of McLeod, Minnesota, a political subdivision of the State of Minnesota. "Person" means an individual, corporation, partnership, Limited Liability Company, association or any other entity. "Project" means the construction on the Development Property of an addition of approximately 40,800 square feet of warehouse and offices along with additional parking lots and driveways along with related improvements. "Project Costs" means certain costs incurred and to be incurred by the Developer in the acquisition and construction of the Project, the estimated types and amounts of which are shown on Schedule B to this Agreement. "Project Description" means the improvements and project costs as described in Schedule B attached hereto. 4 "Qualified Business" means Silver Lake Capital Partners LLC, a Minnesota limited liability company, and its successors and assigns and is synonymous with "Developer." "Property" means the parcel legally described as Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park, City of Hutchinson, McLeod County, Minnesota compromising 10.85 acres, more or less. "Public Assistance" means the creation of the Economic Development Tax Increment Financing District. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 to 469.1794, as amended. "TIF District" means Tax Increment Financing (Economic Development) District No. 4-20 to be located within Development District No. 4 which qualifies as an economic development district under the TIF Act. "TIF Note" means the Tax Increment Revenue Note which is expected to be executed and delivered by the City to Developer pursuant to Section 6.1 to provide the funds for payment of a portion of the Development Costs, as described in Section 6.1 hereto; the definition of the TIF Note shall include any notes thereafter issued to refund the TIF Note. "Unavoidable Delay' means a failure or delay in a party's performance of its obligations under this Agreement, or during any cure period specified in this Agreement which does not entail the mere payment of money, not within the party's reasonable control, including but not limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which could be resolved by using union labor), fire or other casualty, or lack of materials; provided that within ten (10) days after a party impaired by the delay has knowledge of the delay it shall give the other party notice of the delay and the estimated length of the delay, and shall give the other party notice of the actual length of the delay within ten (10) days after the cause of the delay has ceased to exist. The parties shall pursue with reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall not extend performance of any obligation unless the notices required in this definition are given as herein required. ARTICLE 2 Representations and Warranties Section 2.1 By the City. The City makes the following representations to the Developer: (a) The City is a municipal corporation duly organized and existing under the laws of Minnesota. Under the provisions of the Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. Section 2.2 By the Developer . The Developer represents and warrants that: (b) The Developer is a Minnesota limited liability company, has power to enter into this Agreement and has duly authorized, by all necessary corporate action, the execution and delivery of this Agreement. (c) The Developer shall, subject to Unavoidable Delays, complete the Project in accordance with the terms of this Agreement, and all local, state and federal laws and regulations. (d) At such time or times as may be required by law, the Developer will have complied with all local, state and federal environmental laws and regulations applicable to the Improvements, and will have obtained any and all necessary environmental reviews, licenses, clearances and approvals. The Developer has received no notice or communication from any local, state or federal official that the activities of the Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. The Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure with respect to the Development Property. (e) Neither the execution or 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 by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which the Developer is now a party or by which the Developer is bound. (f) The Developer (i) is not in default in the payment of the principal of or interest on any indebtedness for borrowed money; or (ii) is not in default under any instrument or agreement under and subject to which any indebtedness for borrowed money has been issued. (g) The Developer has no knowledge or information that any member of the City Council or any other officer of the City has any direct or indirect financial interest in the Developer, the Development Property or the Project. (g) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met in connection with the Improvements. Without limitation to the foregoing, the Developer will request and seek to obtain from the City all necessary variances, conditional use permits and zoning changes. (h) The Developer would not undertake the Project without the financial assistance to be provided by the City pursuant to this Agreement. (i) Apart from the assistance to be provided under this Agreement, the Developer shall pay all standard charges and fees due with respect to real estate developments and allocable to the Development Property under City ordinances and the City Code, including but not limited to special assessments for local improvements, sewer and water use charges, building permit fees, plat fees, inspection fees, storm water fees and the like used against the Development Property. M ARTICLE 3 Use, Ownership of Development Property; Restrictions Section 3.1 Use. The Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions and all applicable laws, ordinances and regulations. Section 3.2 Ownership. The Developer hereby represents and warrants that the Developer is the owner in fee simple of the Development Property and that there are no liens, defects or other encumbrances upon title to the Development Property that would hinder the Development of the Development Property by the Developer as contemplated by this Agreement. Section 3.3 Damage or Destruction. Upon any damage or destruction of the Project, or any portion thereof, by fire or other casualty, the Developer shall within one hundred twenty (120) days after such damage or destruction, commence the process required to repair, reconstruct and restore the damaged or destroyed Project, or portion thereof, to substantially the same condition or utility value as existed prior to the event causing such damage or destruction and shall diligently pursue such repair, reconstruction and restoration. ARTICLE 4 Construction of Project Section 4.1 Construction Plans. The Developer shall make available Construction Plans for the Project to the City prior to construction. The City shall approve the Construction Plans in writing if, in the reasonable discretion of the City, the Construction Plans: (a) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (b) are adequate to provide for construction of the Project; and (c) no Event of Default has occurred. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Project. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefore, and shall be made within thirty (30) days after the date of their receipt by the City. If the City rejects the Construction Plans, in whole or in part, the Developer shall submit new or corrected Construction Plans within thirty (30) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. Section 4.2 Undertaking of Improvements. (a) Subject to Unavoidable Delays, the Developer will complete the Project by December 31, 2020, and all in accordance with the terms of the Project Description. (b) All work with respect to the Project shall be in substantial conformity with the Construction Plans approved by the City. Upon approval by the City of the Construction Plans, the Developer shall promptly begin the Project and diligently prosecute the completion the Development of the Development Property through the construction of the improvements in accordance with the requirements of the Project Description. 5 (c) The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. Except for public improvements, which are undertaken by the City or other governmental body and assessed against benefited properties, all street and utility installations, relocations, alterations and restorations shall be at the Developer's expense and without expense to the City. The Developer, at its own expense, shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. Section 4.3 Certificate of Completion. (d) Promptly after completion of the Project in accordance with the Project Description, the Developer will provide the City with a certificate of substantial completion and the City will furnish the Developer with a Certificate of Completion in substantially the form attached hereto as Exhibit A as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of the Developer to complete the Project. The furnishing by the City of such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Mortgagee. (e) If the City shall refuse or fail to provide such Certificate of Completion, the City shall, within fifteen (15) days after the Developer provides the certificate referenced in Section 4.3(a), provide the Developer with a written statement specifying in what respect the Developer has failed to complete the Project in accordance with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for the Developer to obtain the Certificate of Completion. Section 4.4 Progress Reports. Until a Certificate of Completion is issued, the Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a monthly basis, a written report as to the actual progress of work on the Project. Section 4.5 Access to Property. The Developer agrees to permit the City and any of its officers, employees or agents access to the Development Property for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. ARTICLE 5 Defense of Claims; Insurance Section 5.1 Defense of Claims. (a) The Developer shall indemnify and hold harmless the City, its governing body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof (hereinafter, for the purposes of this Section, collectively the "Indemnified Parties") for any expenses (including reasonable attorneys' fees), loss, damage to property, or death of any person occurring at or about, or resulting from any defect in the Project; provided, however, the Developer shall not be required to indemnify any Indemnified Party for any claims or proceedings arising from any negligent or unlawful acts or omissions of such Indemnified Party. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity may be sought against the Developer under this Section 5.1, such person will notify the Developer in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Developer shall assume the defense of such action (including the employment of counsel, who shall be counsel satisfactory to the City) and the payment of expenses insofar as such action shall relate to any alleged liability in respect of which indemnity may be sought against the Developer. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Developer unless the employment of such counsel has been specifically authorized by the Developer. Notwithstanding the foregoing, if the City has been advised by independent counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the Developer, the Developers shall not be entitled to assume the defense of such action on behalf of the City, but the Developer shall be responsible for the reasonable fees, costs and expenses (including the employment of counsel) of the City in conducting its defense. The Developer shall not be liable to indemnify any person for any settlement of any such action effected without the Developer's consent. The omission to notify the Developer as herein provided will not relieve the Developer from any liability which they may have to any Indemnified Party pursuant hereto, otherwise than under this section. (b) The Developer agrees to protect and defend the Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding whatsoever by any person or entity arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Project, as constructed and operated by the Developer. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City, as the case may be. Section 5.2 Insurance (d) The Developer shall keep and maintain the Development Property and Project at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: (1) fire (2) extended coverage perils 7 (3) vandalism and malicious mischief (4) boiler explosion (but only if steam boilers are present) (5) collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ("Full insurable value" shall include the actual replacement cost of the Improvements, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect with respect to any portion of the Improvements to be rehabilitated or renovated as a part of the Project prior to the issuance by the City of a Certificate of Completion under Section 4.3 hereof with respect thereto shall be maintained on an "all-risk" builder's risk basis during the course of construction. The policies required by this Section 5.2 shall be subject to a no coinsurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $10,000. (e) Subject to the terms of any mortgage relating to the Development Property, policies of insurance required by this Section 5.2 shall insure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Improvements then in force complies with this Section 5.2. ARTICLE 6 Public Assistance Section 6.1 Development Costs: Public Assistance. The Developer has agreed to and shall be responsible to pay all of its respective costs of the Project, as herein provided. However, the City, in order to encourage the Developer to proceed with the construction of the Project, and to assist the Developer in paying the costs thereof, is willing to provide the following Public Assistance: (a) The Developer certifies that the site improvement costs will not be less than $253,000. Accordingly, and in consideration of the Developer's obligations and performance under this Agreement, and in order to defray a portion of such costs over time, the City shall execute and deliver to the Developer the TIF Note in the form attached to this Agreement as Exhibit B. The TIF Note shall be executed and delivered by the City to Developer no later than 30 days after the Developer complies with paragraph (c) of this Section 6.1 so long as no Event of Default exists which has not been cured under this Agreement. Interest on the TIF Note shall start to accrue as of the date that the Developer provides the City the documentation for site improvement costs. (b) The Developer acknowledges and agrees, as provided in the TIF Note, that payments under the TIF Note are to be made only as and to the extent that the City shall be able to receive and retain Available Tax Increment on the Payment Dates specified in the TIF Note. If there is insufficient Available Tax Increment on any Payment Date, the Available Tax Increment shall be applied to interest first and thereafter to principal. There shall be no interest on unpaid interest as it accrues. The City shall not be obligated to make any payment or any further payment or payments as provided in the TIF Note if: (i) There is an Event of Default by the Developer under this Agreement that has not been cured as of the Payment Date; or (ii) There is a Transfer without prior approval from the City as provided in Article VII hereof. (c) The Developer further acknowledges and agrees that the City has no obligation to issue and deliver to the Developer the TIF Note until the Developer has provided the City with documentation satisfactory to the City (invoices, receipts, canceled checks, etc.) showing payment of at least $253,000 in costs authorized under the TIF Plan and this Agreement, or such lesser amount as may be approved by the City, in which case the TIF Note shall reflect a lesser amount as the maximum principal amount equal to the costs authorized herein. (d) The TIF Note will be issued without registration under the State or federal securities laws pursuant to an exemption for such issuance; and, accordingly, the TIF Note may not be assigned or transferred in whole or in part, except in accordance with applicable exemptions from such registration requirements and with the consent of the City. Each assignment or transfer of the TIF Note shall attest full compliance with applicable State and federal security laws. Section 6.2 Conditions Precedent to Public Assistance. Notwithstanding anything to the contrary contained herein, the City's obligation to provide the Public Assistance as stated in Section 6.1 shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (i) the Developer shall not be in default under the terms of this Agreement; and (ii) the Developer shall have closed on financing sufficient to pay all costs to be incurred in connection with the Project. In the event that all of the above conditions required to be satisfied as provided in this Section 6.3 have not been satisfied by December 31, 2020, either the City or the Developer may terminate this Agreement. Upon such termination, the provisions of this Agreement relating to the Project shall terminate and, except as provided in Article 8, neither the Developer nor the City shall have any further liability or obligation to the other hereunder. Section 6.3 Obligations of Developer. In consideration for the City Assistance provided in Section 6.1, the Developer commits to: (a) Create 5 new Full -Time Equivalent (FTE) jobs on the Development Property within two (2) years of the Benefit Date. (b) Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date this agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually) 6 ARTICLE 7 Prohibitions Against Assignment and Transfer Section 7.1 Transfer of Property and Assignment. DELETED. Section 7.2 Termination of Limitations on Transfer. DELETED. ARTICLE 8 Events of Default; Fees Section 8.1 Events of Default. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events which occurs and continues for more than thirty (30) days after notice by the defaulting party of such default (and the term "default" shall mean any event which would with the passage of time or giving of notice, or both, be an "Event of Default" hereunder): (a) Failure of the Developer to construct the Project by December 31, 2020. (b) Failure by the Developer to satisfy the requirements of Section 6.4 hereof. (c) Failure of the Developer to furnish the Construction Plans as required hereunder. (d) Failure of the Developer to pay to the City any amounts required to be paid by the Developer hereunder. (e) Failure of the Developer or the City to observe and perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (f) Failure of the Developer to pay any taxes and / or assessments on the Development Property as they become due. (g) Filing of any voluntary petition in bankruptcy or similar proceedings by the Developer; general assignment for the benefit of creditors made by the Developer or admission in writing by the Developer of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against the Developer which are not dismissed or stayed within sixty (60) days. Section 8.2 Remedies on Default. In the event the City desires to exercise any of its rights or remedies as provided herein or otherwise available to the City at law or in equity, the City shall first provide written notice to the Developer setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). The Developer shall have thirty (30) days from receipt of a Default Notice to cure or remedy the Event of Default specified in the Default Notice, or such longer period as may be reasonably required to complete the cure as soon as reasonably possible under the circumstances. If, following the Developer's receipt of a Default Notice, the Developer does not cure or remedy the 10 Event of Default therein specified within the time provided above, the City may take any one or more of the following actions at any time prior to the Developer's curing or remedying the Event of Default: (a) Suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the Developer under this Agreement. (c) Withhold the Certificate of Completion. (d) Take whatever action at law or in equity may appear necessary or desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. In the event the City should fail to observe or perform any covenant, agreement or obligation of the City on its part to be observed and performed under this Agreement, the Developer may take any one or more of the following actions: (a) Suspend its performance under this Agreement until it receives assurances from the City, deemed adequate by the Developer that the City will cure its default and continue its performance under this Agreement. (b) Terminate all rights of the City under this Agreement. (c) Take whatever action at law or in equity may appear necessary or desirable to the Developer to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or to the Developer 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 or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or the Developer to exercise any remedy reserved to them, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.4 Waivers. All waivers by any party to this Agreement shall be in writing. If any provision of this Agreement is breached by any party and thereafter waived by another 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 Agreement to Pay Attorneys' Fees. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefore, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. 11 ARTICLE 9 Business Subsidy Statute Section 9.1 Statutory Requirements. Whereas compliance with provisions of the Minnesota business subsidy statutes (M.S. 116J.993 — 116J.995) require the following, the parties to this Agreement agree to the following Sections of this Article and the provisions contained therein. Section 9.2 Description of Business Subsidy. The Business Subsidy shall consist of the amount received pursuant to the terms of this Agreement and the TIF Note. Section 9.3 Public Purpose of the Business Subsidy. As required by statute, the Business Subsidy must be for a public purpose. In this instance the public purposes are to: (1) Enhance the economic diversity of the city (2) Create high quality job growth (3) Stabilize the community (4) Increase the tax base of the community Section 9.4 Goals of the Business Subsidy. The measurable, specific and tangible goals of the business subsidies shall include: (1) The Qualified business shall create 5 new FTE jobs within two (2) years of the signing of this Development Agreement.. (2) The Qualified business shall Provide a cash wage (exclusive of benefits) for the new FTE jobs created of at least equal to the U.S. Department of Health and Human Services Poverty Level for a family of four as of the date this agreement is signed. (As of May 1, 2019 this was $12.38 per hour or $25,750 annually) ARTICLE 10 General Provisions Section 10.1 Conflicts of Interest; City Representatives Not Individually Liable. No council member, official, employee, or consultant or employees of the consultants of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such council member, official, employee or consultant or employees of the consultants of the City 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 council member, official, employee, or consultant or the employees of the consultants of the City shall be personally liable to the 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 the Developer or successors or on any obligations under the terms of this Agreement. 12 Section 10.2 Equal Employment Opportunity. The 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 Non -Discrimination. The Developer agrees for itself, and its successors and assigns, that it shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. 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 Term of Agreement. This Agreement shall terminate when 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 10.5. Section 10.6 Provisions Surviving Termination. Sections 5.1 and 8.5 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 11 Administrative Provisions. Section 11.1 Notices. All notices, certificates or other communications required to be given to the City and the Developer hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in certified form with postage fully prepaid and addressed as follows: If to the City: City of Hutchinson City Hall 111 Hassan Street SE Hutchinson, Minnesota 55350 Attn: City Administrator If to the Developer: Silver Lake Capital Partners LLC 1145 51h Avenue SE Hutchinson, MN 55350 Attn: Paul Soukup The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. Section 11.2 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. 13 Section 11.3 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 11.4 Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. Section 11.5 Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property or the Improvements or for carrying out the expressed intention of this Agreement. Section 11.6 Execution Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 11.7 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the conflicts -of -laws principles thereof. 14 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA s And Mayor City Administrator SILVER LAKE CAPITAL PARTNERS LLC 2 Its 15 STATE OF MINNESOTA ) COUNTY OF MCLEOD ) SS. The foregoing instrument was acknowledged before me this day of , 2019, by Gary Forcier, the Mayor, and Matt Jaunich, the City Administrator, of the City of Hutchinson, Minnesota, a Minnesota municipal corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of .2019. Notary Public STATE OF MINNESOTA ) COUNTY OF ) SS. The foregoing instrument was acknowledged before me this day of , 2019, by , the owner of Silver Lake Capital Partners LLC, a Minnesota limited liability company, on behalf of the company. IN WITNESS WHEREOF, I have set my hand and my official seal this day of 12019. Notary Public 16 TAX PARCEL SCHEDULE A DEVELOPMENT PROPERTY Parcel Number Address 23-470-0010 1145 511 Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota 17 SCHEDULE B IMPROVEMENTS & ESTIMATED COSTS 1. Site work + Soil Correction $687,735 2. Site Utilities (Sewer / Water) $175,500 3. Asphalt Driveways / Parking Lot $146,144 4. Concrete Driveways 47,190 SF $306,735 5. Concrete Curb $34,680 6. Landscaping Allowance $25,000 7. Ext Lighting $20,000 Site Costs Above $1,395,794 LB OH&P $69,790 Total Site work Costs $1,465.584 IN EXHIBIT A CERTIFICATE OF COMPLETION WHEREAS, Silver Lake Capital Partners LLC (the "Developer ") is the owner and the Developer of property in the City of Hutchinson and the State of Minnesota described on Schedule "A" attached hereto and made a part hereof (the "Development Property"); and WHEREAS, the Development Property is subject to the provisions of a certain Amended and Restated Development Agreement (the "Agreement") dated May , 2021, by and between the Developer and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, the Developer has fully and duly performed all of the covenants and conditions of the Developer under the Agreement with respect to the completion of the Project (as defined in the Agreement); NOW, THEREFORE, it is hereby certified that all requirements of the Developer under the Agreement with respect to the completion of the Project have been completed and duly and fully performed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Agreement as they relate to the completion of the Project. All other covenants and conditions of the Agreement shall remain in effect and are not terminated hereby. Dated this day of , 201_ CITY OF HUTCHINSON, MINNESOTA am STATE OF MINNESOTA COUNTY OF MCLEOD Its SS. The foregoing instrument was acknowledged before me this day of , 2019, by the of the City of Hutchinson, Minnesota. Notary Public 19 No. R- EXHIBIT B FORM OF TAX INCREMENT REVENUE NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON, MINNESOTA TAX INCREMENT REVENUE NOTE, SERIES 2021 Principal Amount Annual Rate 5.00% THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. The CITY OF HUTCHINSON, MINNESOTA, a municipal corporation and political subdivision of the State of Minnesota (the "City'), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the Principal Amount specified above at the Annual Rate specified above (the "Payment Amounts"), to Hutchinson Refrigerated Warehouse, LLC, a Minnesota limited liability company (the "Registered Owner"), or its registered assigns, but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The Payment Amounts due on this Note shall be payable solely from, and to the extent that the City shall receive the Available Tax Increment, as hereinafter defined. For purposes of this Note, Available Tax Increment shall mean 90% of the Tax Increment received by the City from McLeod County with respect to the Development Property described on Exhibit A hereto and improvements thereon, located in the City's Tax Increment Financing (Economic Development) District No. 4-20 (the "TIF District") within its Development District No. 4 during the six months preceding any Payment Date specified below and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "TIF Act") (after deduction of the state auditor fee and the County Auditor fee) and subject to Section 4.3 of the Agreement. Interest payable on this Note shall start to accrue as of the later of the following dates: (i) the Registered Owner provides the City the documentation for Site Improvement Costs as required by the Agreement; and (ii) the City issues the Certificate of Completion for the Minimum Improvements. Payments under this Note shall be applied first to accrued interest and then to the unpaid principal amount hereof. There shall be no accruing on any unpaid interest. The payments on this Note shall be made by the City on a semi-annual basis on February 1 and August 1 commencing August 1, 2021 (which payment Registered Owner has previously received), and continuing through February 1, 2030 (each referred to herein as a "Payment Date"). This Note shall terminate and be of no further force and effect on February 2, 2030, or upon payment in full of the principal and interest on this Note, or on any date upon which the City shall have terminated the Agreement (hereinafter defined), whichever occurs earliest ("Maturity"). The City's obligation hereunder to pay each Payment Amount on the respective Payment Dates shall be further conditioned on the fact that there shall not at the time have occurred and be continuing an Event of Default under that certain Amended and Restated Contract for Private Development, dated as of November _, 2021, as the same may be amended from time to time (the "Agreement"), by and between the City and the Registered Owner, and, further, if pursuant to the occurrence of an Event of Default under the Agreement the City elects to cancel and rescind the Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to the provisions of the Agreement for a fuller statement of the definitions of Tax Increment and Available Tax Increment and the rights and obligations of the City to pay the Payment Amounts of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest on this Note and no property or other asset of the City, save and except the above -referenced Available Tax Increment, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the TIF Act. The obligations on this Note are payable solely from Available Tax Increment as defined in the Agreement derived from the City's Tax Increment Financing (Economic Development) District No. 4-20 which the City duly established within its Development District No. 4. Except as hereinafter qualified and subject to Section 6.1(d) of the Agreement, this Note may not be assigned but, upon such assignment, the assignor shall promptly notify the City at the office of the City Administrator by registered mail, and the assignee shall surrender the same to the City Administrator either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. 2 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, 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 thereon. IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Chair and attested by its City Administrator and has caused this Note to be issued on and dated CITY OF HUTCHINSON, MINNESOTA By Its Mayor ATTEST: By Its City Administrator CERTIFICATE OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2021, was on said date registered in the name of Silver Lake Capital Partners LLC and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. Date of Signature of Registered Owner Registration City Administrator Silver Lake Capital Partners LLC 1145 511 Avenue SE Hutchinson, MN 55350 Federal Tax ID No.: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Note on the books kept for registration of the within Note, 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 Note in every particular, without alteration or any change whatsoever. The City Administrator will not effect transfer of this Note unless the information concerning the assignee requested below is provided. Name and Address: Taxpayer Identification Number: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. TAX PARCEL EXHIBIT A TO TAX INCREMENT REVENUE NOTE Development Property Parcel Number Address 23-470-0010 1145 511 Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota No. R-1 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON, MINNESOTA TAX INCREMENT REVENUE NOTE, SERIES 2021 Principal Amount Annual Rate $253,000 5.00% THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 80A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. The CITY OF HUTCHINSON, MINNESOTA, a municipal corporation and political subdivision of the State of Minnesota (the "City"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the Principal Amount specified above at the Annual Rate specified above (the "Payment Amounts"), to Warrior MFG, LLC, a Minnesota limited liability company (the "Registered Owner"), or its registered assigns, but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The Payment Amounts due on this Note shall be payable solely from, and to the extent that the City shall receive the Available Tax Increment, as hereinafter defined. For purposes of this Note, Available Tax Increment shall mean 90% of the Tax Increment received by the City from McLeod County with respect to the Development Property described on Exhibit A hereto and improvements thereon, located in the City's Tax Increment Financing (Economic Development) District No. 4-20 (the "TIF District") within its Development District No. 4 during the six months preceding any Payment Date specified below and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "TIF Act") (after deduction of the state auditor fee and the County Auditor fee) and subject to Section 4.3 of the Agreement. Interest payable on this Note shall start to accrue as of the later of the following dates: (i) the Registered Owner provides the City the documentation for Site Improvement Costs as required by the Agreement; and (ii) the City issues the Certificate of Completion for the Minimum Improvements. Payments under this Note shall be applied first to accrued interest and then to the unpaid principal amount hereof. There shall be no accruing on any unpaid interest. The payments on this Note shall be made by the City on a semi-annual basis on February 1 and August 1 commencing August 1, 2021 (which payment Registered Owner has previously received), and continuing through February 1, 2030 (each referred to herein as a "Payment Date"). This Note shall terminate and be of no further force and effect on February 2, 2030, or upon payment in full of the principal and interest on this Note, or on any date upon which the City shall have terminated the Agreement (hereinafter defined), whichever occurs earliest ("Maturity"). The City's obligation hereunder to pay each Payment Amount on the respective Payment Dates shall be further conditioned on the fact that there shall not at the time have occurred and be continuing an Event of Default under that certain Amended and Restated Contract for Private Development, dated as of August 21, 2019, as the same may be amended from time to time (the "Agreement"), by and between the City and the Registered Owner, and, further, if pursuant to the occurrence of an Event of Default under the Agreement the City elects to cancel and rescind the Agreement, the City shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to the provisions of the Agreement for a fuller statement of the definitions of Tax Increment and Available Tax Increment and the rights and obligations of the City to pay the Payment Amounts of this Note, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a revenue obligation and not a general obligation of the City and is payable by the City only from the sources and subject to the qualifications stated or referenced herein. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest on this Note and no property or other asset of the City, save and except the above -referenced Available Tax Increment, is or shall be a source of payment of the City's obligations hereunder. This Note is issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the TIF Act. The obligations on this Note are payable solely from Available Tax Increment as defined in the Agreement derived from the City's Tax Increment Financing (Economic Development) District No. 4-20 which the City duly established within its Development District No. 4. Except as hereinafter qualified and subject to Section 6.1(d) of the Agreement, this Note may not be assigned but, upon such assignment, the assignor shall promptly notify the City at the office of the City Administrator by registered mail, and the assignee shall surrender the same to the City Administrator either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, 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 thereon. IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, by its City Council, has caused this Note to be executed by the manual signatures of its Chair and attested by its City Administrator and has caused this Note to be issued on and dated CITY OF HUTCHINSON, MINNESOTA By Its Mayor ATTEST: By Its City Administrator CERTIFICATE OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2021, was on said date registered in the name of Warrior Mfg, LLC and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. Date of Signature of Registered Owner Registration City Administrator Warrior Mfg, LLC 1145 511 Avenue SE Hutchinson, MN 55350 Federal Tax ID No.: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Note on the books kept for registration of the within Note, 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 Note in every particular, without alteration or any change whatsoever. The City Administrator will not effect transfer of this Note unless the information concerning the assignee requested below is provided. Name and Address: Taxpayer Identification Number: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF FOR VALUE, OR TRANSFERRED, WITHOUT (i) AN OPINION OF COUNSEL APPROVED BY THE ISSUER THAT SUCH SALE, DISPOSITION OR TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933 AND UNDER APPLICABLE STATE SECURITIES LAWS, OR (ii) SUCH REGISTRATION. THE TRANSFERABILITY OF THIS NOTE IS SUBJECT TO RESTRICTIONS (a) REQUIRED BY FEDERAL AND STATE SECURITIES LAWS AND THE RULES, REGULATIONS, AND INTERPRETATIONS OF THE GOVERNMENTAL AGENCIES ADMINISTERING SUCH LAWS, AND THE PROCEDURE ESTABLISHED BY THE ISSUER TO EFFECT COMPLIANCE THEREWITH, GOVERNING UNREGISTERED SECURITIES, AND (b) AGREED TO BY THE OWNER OF SUCH SECURITIES. THIS NOTE HAS NOT BEEN REGISTERED UNDER CHAPTER 30A OF THE MINNESOTA SECURITIES LAWS OR APPLICABLE STATE BLUE SKY LAWS AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW. TAX PARCEL EXHIBIT A TO TAX INCREMENT REVENUE NOTE Development Property Parcel Number Address 23-470-0010 1145 511 Avenue SE Hutchinson, Minnesota, 55350 LEGAL DESCRIPTION Block 1, Lot 1, Hutchinson Fifth Avenue Industrial Park City of Hutchinson, McLeod County, Minnesota CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/9/21 - 11/23/21 Check Date ---------------- 11/5/2021 Check ------------------- EFT1572 Vendor Name ------------------------------------------------------- EFTPS Description ----------------------------------------------------------------------------- Payroll 10/17/21- 10/30/21 Amount ----------------------- 66,172.42 11/5/2021 EFT1573 Child Support Payroll 10/17/21- 10/30/21 415.78 11/5/2021 EFT1574 MN Dept of Revenue Payroll 10/17/21- 10/30/21 13,030.69 11/5/2021 EFT1575 Provident Life Payroll 10/17/21- 10/30/21 493.04 11/5/2021 EFT1576 PERA Payroll 10/17/21- 10/30/21 56,789.06 11/5/2021 EFT1577 Further HSA Payroll 10/17/21- 10/30/21 15,613.97 11/5/2021 EFT1578 Mission Square Payroll 10/17/21- 10/30/21 3,395.00 11/5/2021 EFT1579 VOYA Payroll 10/17/21- 10/30/21 460.00 11/5/2021 EFT1580 MNDCP Payroll 10/17/21 - 10/30/21 350.00 11/5/2021 101375 EMPLOYEE CHECK Payroll 10/17/21- 10/30/21 48.61 11/5/2021 101376 NCPERS Minnesota Payroll 10/17/21- 10/30/21 304.00 11/5/2021 101377 HART Payroll 10/17/21- 10/30/21 563.81 11/23/2021 101378 48FORTY SOLUTIONS, LLC PALLETS - COMPOST 10,455.78 11/23/2021 101379 ACE HARDWARE - 1315 STAIN & VARIOUS SUPPLIES - PARKS 699.99 11/23/2021 101380 ACE HARDWARE - 6762 KEYS -COMPOST 15.44 11/23/2021 101381 ADVANCED ENGINEERING & ENVIRONMENTAL OCT WWTF & WTP SCADA DESIGN 6,256.65 11/23/2021 101382 ADVANCED POWER SERVICES, INC GENERATOR INSPECTIONS- POLICE 795.00 11/23/2021 101383 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 287.28 11/23/2021 101384 AMERICAN WATER WORKS ASSN E LEVINE MEMBERSHIP -WATER 344.00 11/23/2021 101385 ANDERSON CHEMICAL COMPANY PROCHILL -WWTP 1,985.75 11/23/2021 101386 AP DEVELOPMENT CORPORATION TENKSOLAREQUIPMENT -WWTP 1,020.00 11/23/2021 101387 ARAMARK 11/1 SUPPLIES & SERVICE - LIQUOR HUTCH 197.52 11/23/2021 101388 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,346.85 11/23/2021 101389 AUTOVALUE- GLENCOE EQUIPMENT PARTS -HATS 567.42 11/23/2021 101390 BATTLE LAKE SENIOR CENTER CARDS & ENVELOPES - SR CTR 70.00 11/23/2021 101391 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 9,026.60 11/23/2021 101392 BENEFIT EXTRAS INC AUG- OCTCOBRA/RETIREE BILLING 196.50 11/23/2021 101393 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 724.18 11/23/2021 101394 BLUE NOTE OFF SITE BAR & EV CTR FEES-APPREC DINNER 281.00 11/23/2021 101395 BOETTCHER, CHARLES STRIP/WAX FLOORS -WATER 700.00 11/23/2021 101396 BOLTON & MENK INC. DESIGN WORK FOR OTTER/CAMPBELL LAKES, AIRPORT RUNWAY 7,328.10 11/23/2021 101397 BRAUN INTERTEC CORP NEW POLICE STATION: SERVICES THRU 10/30/21 277.50 11/23/2021 101398 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 22,415.90 11/23/2021 101399 BRUNKHORST, MARISSA REIMB: SAFETY FOOTWEAR - PARKS 127.49 11/23/2021 101400 BUCHHOLZ, MACKENZIE REFUND: COACHING SOCCER - REC 30.00 11/23/2021 101401 C & C CONTRACTING & STRIPING PARKING LOT C STRIPING - STREETS 850.00 11/23/2021 101402 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 36,056.92 11/23/2021 101403 CARD SERVICES SUPPLIES - SR CTR 34.62 11/23/2021 101404 CARS ON PATROL SHOP LLC REPAIRS & TOWS - POLICE 517.01 11/23/2021 101405 CENTRAL HYDRAULICS EQUIPMENT PARTS- MULTIPLE DEPTS 1,363.08 11/23/2021 101406 CENTRAL MCGOWAN REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 245.74 11/23/2021 101407 CERTIFIED CRIME FIGHTER ANNUAL SUBSCRIPTION - POLICE 1,800.00 11/23/2021 101408 CINTAS CORPORATION SUPPLIES&SERVICE- MULTIPLEDEPTS 219.45 11/23/2021 101409 COLDSPRING ROSE NICHE FRONT -CEMETERY 574.00 11/23/2021 101410 CONTEGRITYGROUP NEW POLICE FACILITY THRU 11/1/21 28,124.18 11/23/2021 101411 COOL AIR MECHANICAL INC INSPECTION & REPAIRS -ARENA 3,876.00 11/23/2021 101412 COUNTRYSIDE FLAGPOLE FLAGPOLE FOR SENIOR CENTER FUNDRAISING PROJECT 3,049.00 11/23/2021 101413 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 1,209.60 11/23/2021 101414 CULLIGAN WATER NEW POLICE FACILITY THRU 11/1/21 10.85 11/23/2021 101415 DARWIN MONUMENT RESET MONUMENTS -CEMETERY 650.00 11/23/2021 101416 DAVE'S PALLET SERVICE PALLETS - COMPOST 3,428.00 11/23/2021 101417 DEMING CONSTRUCTION INC NEW POLICE FACILITY: #1 THRU 11/1/21 73,701.00 11/23/2021 101418 DIRECT PLASTICS PLAIN UFILM EYEMARKONLY-COMPOST 3,082.07 11/23/2021 101419 DOG -ON -IT -PARKS BAGS - PARKS 92.00 11/23/2021 101420 E2 ELECTRICAL SERVICES INC VARIOUS REPAIRSAT MULTIPLE LOCATIONS 5,683.37 11/23/2021 101421 ENERGY SALES INC MOTOR BLOWER -ARENA 728.01 11/23/2021 101422 ERICKSON ENGINEERING CO LLC REPAIR TO BRIDGES- ENG 90.00 11/23/2021 101423 FARM -RITE EQUIPMENT BOBCATGRAPPLE BUCKET -COMPOST 3,851.36 11/23/2021 101424 FASTENAL COMPANY OPERATING SUPPLIES- MULTIPLE DEPTS 756.70 11/23/2021 101425 FERGUSON WATERWORKS #2518 REP LIDS, CB LID & PLUGS - WATER 1,076.04 11/23/2021 101426 FIRSTADVANTAGE LNSOCC HEALTH SOLU DRUG TESTING 259.50 11/23/2021 101427 FIRST CHOICE FOOD & BEVERAGE SOLUTI COFFEE - SR DINING 83.10 11/23/2021 101428 FOBBE ELECTRIC NEW POLICE FACILITY: #2 THRU 11/1/21 15,200.00 11/23/2021 101429 FORD METRO INC NEW POLICE FACILITY: #1 THRU 11/1/21 14,744.00 11/23/2021 101430 FOSTER MECHANICAL VARIOUS REPAIRS- MULTIPLE DEPTS 1,080.29 11/23/2021 1101431 IFRYKMAN,ALICIA REFUND: CANCELLED BASKETBALL- REC 110.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/9/21 - 11/23/21 Check Date ---------------- 11/23/2021 Check ------------------- 101432 Vendor Name ------------------------------------------------------- FURTHER Description ----------------------------------------------------------------------------- October 2021 HSA/FSA Adm. Fees Amount ----------------------- 338.30 11/23/2021 101433 GALCO INDUSTRIAL ELECTRONICS UNIVERSAL SIGNAL CONDITIONER - WWTP 569.63 11/23/2021 101434 GAVIN, JANSSEN & STABENOW, LTD SEPT PROSECUTIONS- LEGAL 3,300.00 11/23/2021 101435 GEIKEN'S GUIDE & GUARD, LLC DARE TEACHING - POLICE 562.50 11/23/2021 101436 GOOD NEWS HEATING & A/C TIF: BERNADETTE SCHARPE - HRA 4,272.00 11/23/2021 101437 GOPHER STATE FIRE EQUIPMENT CO. VARIOUS PROJECTS- POLICE 262.00 11/23/2021 101438 GRAINGER REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 681.72 11/23/2021 101439 HACH COMPANY PHOSVER - WWTP 198.60 11/23/2021 101440 HARTFORD, THE 2021/22 SOLAR ARRAY INSURANCE POLICY 6,348.00 11/23/2021 101441 HILLYARD/ HUTCHINSON TP, TOWELS, BAGS, LINERS- HATS 616.48 11/23/2021 101442 HJERPE CONTRACTING CREEKSIDE PIPE EXTENSION PROJECT 4,713.10 11/23/2021 101443 HOLLANDER, JODY REFUND: BASKETBALL- REC 240.00 11/23/2021 101444 HOLT-PETERSON BUS 12/12/21 SR TRIP TO ORCHESTRA HALL 745.00 11/23/2021 101445 HUTCHFIELD SERVICES INC NOVJANITORIALSERVICES - HATS 1,415.00 11/23/2021 101446 HUTCHINSON CO-OP OCT FUEL & SERVICES - MULTIPLE DEPTS 10,013.85 11/23/2021 101447 HUTCHINSON HEALTH NEW EMPLOYEE HEALTH SCREEN 125.00 11/23/2021 101448 HUTCHINSON HRA TIF: BERNADETTE SCHARPE - HRA 427.20 11/23/2021 101449 HUTCHINSON UTILITIES UTILITIES 10/1- 11/1'21 73,654.09 11/23/2021 101450 HUTCHINSON UTILITIES 1ST ORDER OF STREET LIGHT LED CONVERSION 39,782.56 11/23/2021 101451 HUTCHINSON WHOLESALE #1550 MISCSUPPLIES- MULTIPLEDEPTS 13.53 11/23/2021 101452 HUTCHINSON WHOLESALE #1551 GRINDER: AIR FILTER -COMPOST 300.21 11/23/2021 101453 HUTCHINSON WHOLESALE #1552 ANTIFREEZE - PARKS 54.32 11/23/2021 101454 HUTCHINSON, CITY OF OCT 2021 STORM DRAINAGE 6,635.46 11/23/2021 101455 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERIES - HATS 272.87 11/23/2021 101456 INTERSTATE DISTRIBUTION & MFG BEARINGS - COMPOST 145.81 11/23/2021 101457 JADE ERICKSON CONSTRUCTION LLC GARAGE PAD FOR RANGE - POLICE 11,100.00 11/23/2021 101458 JAY MALONE MOTORS ACTUATOR FOR ENGINEERING VEHICLE 108.00 11/23/2021 101459 JLR GARAGE DOOR SERVICE L/M 380 UT TRANS - HATS 53.69 11/23/2021 101460 JOANIE'SCATERING LLC 2021 RECOGNITION DINNER 1,808.72 11/23/2021 101461 JOE'SSPORT SHOP BASKETBALLT-SHIRTS -REC 1,388.80 11/23/2021 101462 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD -LIQUOR HUTCH 26,193.40 11/23/2021 101463 JOHNSON CONTROLS FIRE PROTECTION LP ALARM SYSTEM CONTRACT- EV CTR 202.34 11/23/2021 101464 JOHNSON, GAVIN UB refund for account: 3-210-5160-7-05 37.56 11/23/2021 101465 J U U L CONTRACTI NG CO RIP RAP POND LINDENAVE - STORM WATER 2,447.97 11/23/2021 101466 KAHNKE BROTHERS NURSERY DEVELOPMENT TREES - STREETS 1,078.25 11/23/2021 101467 KEVITT EXCAVATING LLC NEW POLICE FACILITY: #2 THRU 11/1/21 163,875.00 11/23/2021 101468 KOHLS SWEEPING SERVICE PILING CONCRETE&ASPHALT - CREEKSIDE 982.50 11/23/2021 101469 L & P SUPPLY CO SOLENOID-WWTP 19.45 11/23/2021 101470 LANO EQUIPMENT OF NORWOOD LENS -CEMETERY 36.67 11/23/2021 101471 LARAWAY ROOFING INC REPAIR LEAK BY SCUPPER - HATS 542.00 11/23/2021 101472 LENARZ, TRISHA PHOTOGRAPHY-REC 599.99 11/23/2021 101473 LIEN, MIKE REIMB: MPCA CONF- WATER 178.88 11/23/2021 101474 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 33,031.50 11/23/2021 101475 LOGIS NETWORK SERVICES - IT 8,534.25 11/23/2021 101476 LYNDE & MCLEOD INC. OCT YARDWASTE - COMPOST 502.38 11/23/2021 101477 MACQUEEN EQUIP LLC POWER BAND BELT - STORM WATER 150.31 11/23/2021 101478 MADDEN GALANTER HANSEN LLP OCT LABOR RELATION SERVICES 42.65 11/23/2021 101479 MARCO TECHNOLOGIES, LLC OCT/NOV PRINTING CONTRACTS - ENTERPRISE CENTER 25.47 11/23/2021 101480 MARCO TECHNOLOGIES, LLC OCT/NOV PRINTING CONTRACTS- MULTIPLE DEPTS 249.15 11/23/2021 101481 MCLEOD COU NTY AUDITOR -TREASURER 2021 ASSESSMENT & MAINT FEES 61,204.50 11/23/2021 101482 MCLEOD COUNTY RECORDER RESOLUTIONS - MULTIPLE DEPTS 230.00 11/23/2021 101483 MCLEOD COUNTY RECORDER NOTARY PUBLIC RECORDING - POLICE 40.00 11/23/2021 101484 MEEKER WASHED SAND &GRAVEL SAND-CREEKSIDE 1,535.81 11/23/2021 101485 MENARDS HUTCHINSON REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 508.03 11/23/2021 101486 MERLE MARSHALUS HANGAR CARE LLC REPAIRS -AIRPORT 2,040.14 11/23/2021 101487 MESERB 2021 FALL CONF: T GRATKE - WWTP 100.00 11/23/2021 101488 MILLNER HERITAGE VINEYARD & WINERY COST OF GOODS SOLD - LIQUOR HUTCH 1,252.80 11/23/2021 101489 MINI BIFF NEW POLICE FACILITY THRU 11/1/21 191.76 11/23/2021 101490 MINNESOTA DEPT OF HEALTH 2O22 LICENSE RENEWAL - EV CTR 315.00 11/23/2021 101491 MINNESOTA DEPT OF MOTOR VEHICLE 2021 SILVERADO REGISTRATION 37.00 11/23/2021 101492 MINNESOTA PETROLEUM SERVICE HOSE RRPAIR- AIRPORT 625.88 11/23/2021 101493 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 467.40 11/23/2021 101494 MISSOURI RIVER ENERGY SERVICES M SEBORA: LEGAL SEMINAR REGISTRATION 150.00 11/23/2021 101495 MOTION SPORTS AND SAFETY PRODUCTS 10 BLUE SKATE HELPERS -ARENA 1,640.00 11/23/2021 101496 NAVARRO, JON REFUND: HUSA BOYS SOCCER - REC 105.00 11/23/2021 1101497 NERO ENGINEERING LLC OCT HEADWORKSCONSTSERVICES -WWTP 20,477.60 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/9/21 - 11/23/21 Check Date ---------------- 11/23/2021 Check ------------------- 101498 Vendor Name ---- --------- ------------------------------------------ NESS, GARY Description ----------------------------------------------------------------------------- UB refund for account: 1-570-4220-8-01 Amount ----------------------- 64.17 11/23/2021 101499 NORTH AMERICAN SAFETY INC GLASSES -WWTP 151.23 11/23/2021 101500 NORTHERN BUSINESS PRODUCTS BINDER CLIPS - POLICE 1.99 11/23/2021 101501 NORTHERN STATES SUPPLY INC EQUIPMENT PARTS- HATS 309.01 11/23/2021 101502 NUVERA NOVPHONESERVICES- MULTIPLEDEPTS 6,001.64 11/23/2021 101503 O'REILLY AUTO PARTS ACTIVATOR, BED LINER - PARKS 214.34 11/23/2021 101504 OFFICE DEPOT OFFICE SUPPLIES- MULTIPLE DEPTS 201.17 11/23/2021 101505 ORWOLL, COURTNEY SIGN &AWNING GRANT- EDA 2,000.00 11/23/2021 101506 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 4,498.75 11/23/2021 101507 PEAT INC. SPHAGNUM FINE CROMWELL -COMPOST 11,682.25 11/23/2021 101508 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 4,894.28 11/23/2021 101509 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 12,696.76 11/23/2021 101510 PINGEON, KELSEY UB refund for account: 3-926-7300-2-02 62.68 11/23/2021 101511 PIONEERLAND LIBRARY SYSTEM 4TH QTR 2021 FUNDING REQUEST 44,197.50 11/23/2021 101512 PLUMBING & HEATING BY CRAIG PIPE REPAIR - LIQUOR HUTCH 499.00 11/23/2021 101513 PLUNKETTS PEST CONTROL 11/1 PEST CONTROL -ARENA 37.86 11/23/2021 101514 PREMIER TECH CHRONOS INFEED HOPPER, CONVEYOR & FEEDER - COMPOST 31,290.00 11/23/2021 101515 PREMIUM WATERS NOV SERVICE - PARKS 9.00 11/23/2021 101516 PTM DOCUMENTSYSTEMS 1099'S FOR 2021- FINANCE 90.40 11/23/2021 101517 PUMP & METER SERVICE INC DEF NOZZLE HOLDER - HATS 86.51 11/23/2021 101518 QUADE ELECTRIC PARKING LOT LIGHT BULBS- WATER 42.00 11/23/2021 101519 QUILL CORP TRASH BAGS, TOWELS, GLOVES - ARENA 553.81 11/23/2021 101520 QUINLIVAN & HUGHES P.A. ACCOUNTING APPEAL- LEGAL 225.00 11/23/2021 101521 RABAGO, BRENDA REFUND: COACHING SOCCER - REC 60.00 11/23/2021 101522 RAHN PAINTING & CONTRACTING LLC NOV 2021 SNOW CONTRACT- MULTIPLE DEPTS 575.00 11/23/2021 101523 RAMAKER&ASSOCIATES INC SYSTEMSUPPORT- CEMETERY 2,650.00 11/23/2021 101524 RED BULL DISTRIBUTION COMPANY, INC. COST OF GOODS SOLD - LIQUOR HUTCH 85.00 11/23/2021 101525 ROYAL WASH HOUSE OCT LAUNDRY SERVICES - EV CTR 201.19 11/23/2021 101526 RUNNING'SSUPPLY REPAIR&MAINTSUPPLIES - MULTIPLEDEPTS 432.89 11/23/2021 101527 SAM'S TIRE SERVICE 2TIRES -CREEKSIDE 794.00 11/23/2021 101528 SCHWICKERT'S TECTA AMERICA LLC 2021 ROOFING INSPECTIONS OF CITY FACILITIES 6,975.00 11/23/2021 101529 SEPPELT, MILES REIMB: MILEAGE FOR MNEDF MTG - EDA 150.08 11/23/2021 101530 SHI INTERNATIONAL CORP ACROBAT PRO DC - IT 18.00 11/23/2021 101531 SHORT-ELLIOT-HENDRICKSON, INC PD TRAINING CENTER ENG SERVICES: THRU 9/30/21 2,742.70 11/23/2021 101532 SJM CONSTRUCTION LLC CHAPEL CEILING REPAIR -CEMETERY 3,450.00 11/23/2021 101533 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 34,759.60 11/23/2021 101534 SPARTAN STEEL ERECTORS INC NEW POLICE FACILITY: #1 THRU 11/1/21 9,500.00 11/23/2021 101535 STANDARD PRINTING-N-MAILING POSTAGE 10/24 - 11/7'21- VARIOUS DEPTS 364.84 11/23/2021 101536 STAPLES ADVANTAGE OFFICE SUPPLIES- MULTIPLE DEPTS 437.86 11/23/2021 101537 STURGES, JASON REIMB: FIRE CHIEFS CONF - FIRE 15.00 11/23/2021 101538 SUN LIFE FINANCIAL OCTOBER DENTAL CLAIMS 14,133.80 11/23/2021 101539 SWEETHAVEN TONICS LLC COST OF GOODS SOLD - LIQUOR HUTCH 416.00 11/23/2021 101540 THEIN WELL WELL 7 RECOVERY CLEAN - WATER 54,628.00 11/23/2021 101541 THOMSON REUTERS-WEST ONLINE/SOFTWARE SUBS- MULTIPLE DEPTS 1,253.60 11/23/2021 101542 TRI-POINT PRODUCTS INC 2022 CALENDAR -ARENA 247.60 11/23/2021 101543 TRUE BRANDS COST OF GOODS SOLD - LIQUOR HUTCH 9.90 11/23/2021 101544 UNITED FARMERS COOP FUEL - HATS 23,905.05 11/23/2021 101545 USA BLUE BOOK BALL VALVES - WWTP 216.92 11/23/2021 101546 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 2O,172.76 11/23/2021 101547 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 720.90 11/23/2021 101548 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 464.00 11/23/2021 101549 VIVID IMAGE WEBSITE UPDATES- MULTIPLE DEPTS 776.00 11/23/2021 101550 WACONIA TREE FARMS DEVELOPMENT TREES - STREETS 685.00 11/23/2021 101551 WASTE MANAGEMENTOF WI -MN REFUSE DISPOSAL FEES TO LANDFILL 5,981.31 11/23/2021 101552 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 271.26 11/23/2021 101553 WELCOME NEIGHBOR HUTCH NEW RESIDENTVISITS- LIQUOR HUTCH 60.00 11/23/2021 101554 WEST CENTRAL SANITATION INC. OCTREFUSE- MULTIPLEDEPTS 51,952.90 11/23/2021 101555 WILKENS INDUSTRIES STAUBCONNECTORS- COMPOST 98.77 11/23/2021 101556 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 1,893.15 11/23/2021 101557 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 3,746.92 11/23/2021 101558 WITTE SOD FARMS INC SOD- REC BLDG 640.00 11/23/2021 101559 WL HALL CO INTERIOR SERVICE PREV MAINTON PANEL SYSTEM - EV CTR 1,795.00 11/23/2021 101560 WM MUELLER & SONS 2021 STREET REPAIRS 10,758.11 11/23/2021 101561 ZACK'S INC CLEANER, TOWELS, GLOVES, SQUEEGEE - HATS 648.61 11/23/2021 101562 ZEP SALES AND SERVICE ZEP CLEANER - HATS 1,001.74 11/23/2021 1101563 ZIEGLER INC IDURAMAX,FILTERS- COMPOST 361.51 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 11/9/21 - 11/23/21 Check Date ---------------- il/23/2021 Check --------- ---------- 101564 Vendor Name ----- -------- ----- ----- -------------------------------- ZI P'S DIESEL SERVICE Description ----------------------------------------------------------------------------- KUBOTAPARTS- STORMWATER Amount ----------------------- 114.74 Total - Check Disbursements: $ 1,305,102.36 Department Purchasing Card Activity - October 2021 Date Department Vendor Name Description Amount 10/29/2021 ADMIN CASH WISE FOODS Water and Ice for Historic Bus Tour 10.96 10/3/2021 ADMIN CGMC CGMC Fall Conference Registration 170.00 10/10/2021 CREEKSIDE SPS COMMERCE Sept 2021 SPS fees - Bomgaars 89.00 10/6/2021 CREEKSIDE SPS COMMERCE Sept 2021 SPS fees - UH 132.80 10/29/2021 EDA JIMMYS PIZZA EDA Board lunches 80.32 10/22/2021 EDA MUDDY COW HUTCHINSON Finance team lunches 163.44 10/21/2021 EDA DEED COMMUNICATIONS DEED webinar 30.00 10/21/2021 EDA DEED COMMUNICATIONS Credit card service fee 0.75 10/7/2021 EDA DEED COMMUNICATIONS Minnesota Marketing Partnership (MMP) dues 700.00 10/7/2021 EDA DEED COMMUNICATIONS MMP credit card service fee 17.43 10/31/2021 FINANCE EZBUSINESS FEE Monthly city dept p-card fee 15.00 10/22/2021 FINANCE TRAINING LLC Supervisor training webinar-J.Juergensen 110.00 10/19/2021 FINANCE WALMART City Center soda for vending machine 124.56 10/18/2021 FINANCE AMAZON Admin - File folder labels 12.86 10/18/2021 FINANCE AMAZON Finance - scissors for new employee 5.24 10/17/2021 FINANCE AMAZON Library - Liquid hand soap 21.99 10/12/2021 FINANCE AMAZON DMV - Automatic Stapler & brochure display 209.44 10/12/2021 FINANCE AMAZON City Center -Address labels 22.76 10/12/2021 FINANCE AMAZON CityCenter- envelopes 13.72 10/27/2021 FIRE CASH WISE FOODS Funeral Flowers - Schmidt 53.93 10/26/2021 FIRE CASH WISE FOODS Sheet cake - Badge pinning & Retirements 49.99 10/25/2021 FIRE RADISSON Duluth MSFCA conf - rooms - B. Vik 432.33 10/25/2021 FIRE RADISSON Duluth MSFCA conf - rooms - R. Abelson 288.22 10/25/2021 FIRE RADISSON Duluth MSFCA conf - rooms - J. Sturges 288.22 10/25/2021 FIRE RADISSON Duluth MSFCA conf - rooms - M. Schumann 288.22 10/25/2021 FIRE TRAPPER FETES STEAKHOUSE Duluth MSFCA conf - meal (group) 40.00 10/24/2021 FIRE INCLINE STATION BOWLING Duluth MSFCAconf - meal (group) 26.65 10/24/2021 FIRE SPEEDWAY Duluth MSFCA conf - fuel St. Cloud 78.00 10/20/2021 FIRE CASH WISE FOODS Supplies - Badge pinning & retirement 109.50 10/11/2021 FIRE POWER BRAKE & SPRING E-2 front shocks - (1/2 city - 1/2 rural) 458.00 10/6/2021 FIRE OPTICSPLANET INC. Red polo uniform shirts (backordered items) 109.18 10/4/2021 FIRE MINN FIRE SVC CERT BOARD MN firefighter license certification renew 200.00 10/26/2021 IT AMAZON Hard Drive for Backups 129.99 10/24/2021 IT KWIKTRIP Gas for South Dakota Cyber class 19.73 10/24/2021 IT CLUBHOUSE HOTEL & SUITES Cyber Security Class Hotel Stay 151.00 10/24/2021 IT VERIZON WIRELESS Phone charger for City van 42.59 10/20/2021 IT AMAZON Keyboard for Kristie 49.99 10/18/2021 IT AMAZON Keyboard for Justin J 49.99 10/5/2021 IT NEWEGG Media Converter Solar Array 112.21 10/1/2021 IT AMAZON Spare Keyboards for stock 99.95 10/29/2021 LIQUOR HUTCH WINE WELL CHILLER CO Replacement wine well chiller 1,985.94 10/29/2021 LIQUOR HUTCH ALCOHOL AND GAMBLING ENFO State of MN Retail Buyers Card Renewal 20.00 10/29/2021 LIQUOR HUTCH ALCOHOL AND GAMBLING ENFO Online processing fee for above 0.50 10/24/2021 LIQUOR HUTCH EIG CONSTANTCONTACT.COM Email blast advertising 70.00 10/24/2021 LIQUOR HUTCH MENARDS HUTCHINSON Paint for store maintenance 14.00 10/20/2021 LIQUOR HUTCH MENARDS HUTCHINSON Misc cleaning supplies 110.79 10/17/2021 LIQUOR HUTCH RITE INC Cloudretailer monthly fee 267.19 10/12/2021 LIQUOR HUTCH AMAZON Replacement store vacuum 182.31 10/26/2021 PARK & REC UMM MARCH BAND Senior Trips -Tickets to U of M Marching Band 816.00 10/22/2021 PARK & REC CHANHASSEN DINNER THEATRES Senior Trips - Deposit for Chanhassen Tickets 270.00 10/11/2021 PARK & REC WHENIWORK.COM Employee Scheduling App 84.00 10/6/2021 PARK & REC EZ SHARP Glide Pads, Diamond Dressers, Hand Hones, Skate Clamp Dial 145.50 10/3/2021 PARK & REC AMAZON Trash Bags, Leaf Trash Bags 39.62 10/19/2021 PLANNING AMAZON Microwave for breakroom 129.99 10/17/2021 PLANNING AMERICAN PLANNING ASSN Planning Certification Membership 673.00 10/31/2021 POLICE BCA TRAINING EDUCATION DMTRefresher/ Sickmann 75.00 10/31/2021 POLICE BCA TRAINING EDUCATION DMT Refresher/ Berry 75.00 10/17/2021 POLICE HOLIDAY INN SOTA Conf Lodging 454.08 10/5/2021 POLICE AMAZON Gun Safe 56.69 10/3/2021 POLICE AMAZON Soap 91.50 Department Purchasing Card Activity - October 2021 Date Department Vendor Name Description Amount 10/29/2021 PUBLIC WORKS FIRE HOSE DIRECT WWTF Hose Adapters 162.52 10/27/2021 PUBLIC WORKS U OF M CONTLEARNING John P. - Erosion Control Training 120.00 10/27/2021 PUBLIC WORKS U OF M CONTLEARNING John P. - Erosion Control Training 115.00 10/26/2021 PUBLIC WORKS AMAZON WTP Lights Batteries 79.99 10/24/2021 PUBLIC WORKS AWWA.ORG AWWA Operations Guide 75.00 10/24/2021 PUBLIC WORKS EBAY Tim G. - Cell Phone Case 24.66 10/24/2021 PUBLIC WORKS EBAY WWTF Safety Lock Clasps 29.72 10/19/2021 PUBLIC WORKS CCI HOTEL RESCOUNTER Mike L. - WTP Operations Training 150.73 10/12/2021 PUBLIC WORKS CUSTOMER ELATION INC Public Works Emergency Phone Line 114.75 10/12/2021 PUBLIC WORKS CUSTOMER ELATION INC Public Works Emergency Phone Line 114.75 10/10/2021 IPUBLICWORKS AMAZON Graco Ultra Cordless Airless Paint Sprayer 579.00 Total - P-Cards: I I i $12,135.19 u HUTCHINSON A CITY ON PURPOSE. November 2021 City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 To: Honorable Mayor and City Council members Matt Jaunich, City Administrator Kent Exner, DPW/City Engineer From: John Olson, Public Works Manager Subject: 2021 Pavement Management Report Pavement Management The City uses a pavement management system to collect and manage information about the condition of its pavement. Since 1996, this system has helped the City manage its significant investments in pavement. Pavements under the City's jurisdiction are worth well over $200 million (+/- $15,000 per capita) in replacement value. The pavement management system helps to make the best use of available funds by providing decision -makers with important information related to pavement conditions and maintenance options. Using this information, maintenance activities can be scheduled in a timely manner to help preserve pavement at less expense over time. The goal of pavement management is to do the right treatment to the right pavement at the right time at the lowest possible cost, in order to prolong the life of pavement. Pcl Excellent C,00d 4096 Drop in Quality Fair 7596 of Life Poor Very Poor Failed N' N ` \Spending S1 on preservation here_ 4096 Drop in Quality Miles Category 74.9 — City rated 2.5 — City unrated 6.7—MnDOT 6.1— McLeod Co. 90.2 -Total miles ...elirninates or delays spending S6 to S10 on rehabilitation or reconstruction here. + 1296 of Life 0 5 10 15 20 1 Budget Recommendation Capital and maintenance funding sources are limited. It is also necessary to utilize some of the available resources for purposes that do not directly affect system -wide PCI ratings. For example, spending for utilities, streetlights, trees, trails, sidewalks, signs, etc. does not affect the PCI score, but are important to any project. Over time, higher spending for other purposes can result in a larger backlog of work, driving down system -wide PCI ratings. Pavement management software allows us to evaluate various budget scenarios. Looking at various scenarios helps to determine the effect of various plans on system -wide PCI. Over time, Public Works has established standard scenarios of maintaining the existing PCI, increasing PCI by 10% and decreasing PCI by 10%, looking out over a 20-year period to determine the most economically advantageous 5-year project list. Projects appearing in all three selections generally demonstrate significant economic value and/or positive affect on system -wide PCI ratings. Budget Recommendation The budget for capital projects ends up at around $3.9 million per year. This represents a substantial increase compared to previous years. The primary sources of cost increases include: • Oil price increases, including fuel cost increases • Materials cost increases and limited availability • Labor cost increases and labor shortages • Additional project selection to maintain PCIs of 65-75 CAPTIAL (* spending not affecting PCI ratings: streetlights, trees, streetscape items, sidewalks, etc.): Construction/partial reconstruction $1,867,836 Reclaim/overlay 1,526,313 Spending not affecting PCI ratings* 509,167 Total capital improvements $3.903,616 GO Improvement Bonds $1,900,000 Assessments 976,000 Municipal State Aid 500,000 Total capital funding $3,376,000 Capital shortfall $ 527,616 2 The budget for maintenance projects ends up at around $283,000 per year, plus in-house patching and repairs of about $140,000. Maintenance costs have also increased due to fuel cost increases and materials cost increases/availability. Assuming current maintenance funding will remain at $400,000, the resulting shortfall is $23,000. MAINTENANCE: In-house patching & repairs $ 140,000 Maintenance overlays 75,000 Pavement preservation 151,000 Crack repair 57,000 Total maintenance projects $ 423,000 General fund $ 175,000 Infrastructure maintenance 225,000 Total maintenance funding $ 400,000 Capital shortfall $ 23,000 c Pavement Condition Index (PCI) PCI is determined by periodically conducting physical surveys. Physical surveys are usually done every three years. Pavement distresses for each section are identified and cataloged. Typical pavement distresses include: Cause: Typical distress: Insufficient strength Alligator cracking, longitudinal cracking, potholes, rutting Environmental effects Transverse cracking, block cracking, reflective cracking, frost heaves Materials related Bumps & sags, corrugation, depressions, edge cracking, flushing, lane/shoulder drop-off, polished aggregate, raveling, shoving, slippage cracks Previous maintenance Patches During physical surveys, distresses are assigned low, medium, or high severity ratings that are entered into the pavement management system. Distress entries result in calculated deductions. The sum of all deductions is subtracted from 100 to arrive at the pavement section's PCI. The weighted average of the PCI's for all sections are combined to calculate system -wide PCI. Some streets do not get rated, including streets under State or County jurisdiction and streets under City jurisdiction that are undeveloped or unpaved. PCI is based on a 100-point scale (100 = no distresses, 0 = fully deteriorated street). Categorizing the PCI scores helps to identify potential maintenance options. A 5-tier condition rating is used: Excellent 86-100 Green Good 71-85 Blue Adequate 51-70 Yellow Marginal 36-50 Orange Poor 0-35 Red The City's stated goal has been to maintain an average system -wide PCI of 65 to 75. In 2018, Public Works surveyed some other agencies in Minnesota to see what their target PCI was. On average, the target PCI for other agencies was 70. Physical surveys capture pavement conditions at a specific time. Between physical surveys, system -wide PCI is estimated by applying standard decay calculations to each pavement section. The last physical survey was completed in 2020. The next physical survey is scheduled for 2023. Estimated PCI for the pavement network following the 2021 construction season (excluding in- house maintenance) was 75. This represents a decrease of one point compared to the physical survey conducted in 2020. 4 Past system -wide PCI ratings have been: Year System -wide PCI rating 2021 75 Estimate 2020 76 2007 69 2017 76 2004 77 2014 71 1996 72 2011 66 System -wide PCI's vary over time. PCI ratings have been nearly the same between 2017 and 2021. Maintaining the system at steady PCI's indicate that appropriate projects are being selected and funding levels are adequate. This is the ideal situation, fulfilling the overall goal of pavement management. Pavement Inventory The majority of pavements are rated on a regular basis. However, some streets are not rated because they are undeveloped or unpaved. No ratings are given to pavements under County or State jurisdiction. Center - Classification Line Miles PCI City streets -rated 74.9 75 City streets-unrated 2.5 n/a State highways-unrated 6.7 n/a County roads-unrated 6.1 n/a Total 90.2 Over time, the City's pavement network has grown by new construction and/or from turn -back of other agencies' roadways at an annual pace of about 1.5% over the last 20 years. In 2021, Jefferson St NE (Washington Ave E to 15Y Ave NE), 0.08 miles, was newly constructed adjacent to the new Police facility site. No streets were turned back to the City in 2021. Data Analysis Assuming the 2022-2026 Capital Improvement Plan (CIP) is implemented as proposed, it appears system -wide PCI will remain within the 65 - 75 range for the next 5-year period. This prediction assumes proposed spending levels remain in place and that provisions are made to account for the rising construction costs. C In the past ten years ending in 2020, maintenance overlay projects were performed on an average of 9,300 square yards (SY) of pavement per year. In 2021, 13,285 SY of maintenance overlays were performed. Pavement management data continues to indicate a growing need for overlays. This is likely because the City had focused on biennial seal coat projects the previous 10 —15 years and these pavement now need higher levels of maintenance. Streets in poor condition include some west of the Recreation Center. These streets will be addressed as part of the south-central trunk storm sewer project. Another grouping of streets in the downtown area are identified as being in marginal or poor condition and a third grouping of streets in poor condition can be found in the Clifton Heights addition. There are a few streets in poor condition located in the southeast neighborhoods. Project Alternatives for Pavement Maintenance Public Works operators typically focus on streets in Excellent or Good condition, because maintenance efforts for these streets are typically very cost-effective. Public Works operators have become very good at making high quality pavement repairs that last for several years. Streets rated as Good, Adequate or Marginal are evaluated to determine whether localized repairs can be coupled with other maintenance strategies to increase the street's longevity at a reasonable cost. Streets in Marginal or Poor condition eventually are maintained for safety -related issues until a capital project is feasible. The most commonly used project alternatives are listed from most expensive to least expensive: Strategy Description Cost/SY New construction new infrastructure where none existed Reconstruction existing infrastructure replaced by new infrastructure Partial reconstruction street, curb & gutter, drainage, minimal utility work Full -depth reclamation street surface, drainage, minimal curb, gutter& utility work Structural overlay remove >2" of surface, resurface, other work very limited Maintenance overlay remove Q" of surface, resurface, no other work Spray injection asphalt and aggregate targeted application, usually on large cracks Seal coat/fog seal asphalt and aggregate application, full -width of street Replay sealant polymerized agricultural based asphalt sealant Crack Repair rout and apply sealant to cracks, over -band larger cracks Project Development $165.00 $165.00 $130.00 $40.00 $20.25 $13.50 $4.00 $2.50 $1.80 $0.30 Whenever possible, projects are developed to maximize pavement lifespan. Ideally, less expensive maintenance projects are done early and at critical points during the service life to prolong the pavement's service life. When the PCI drops too low, maintenance projects are no longer an option. All pavements eventually decay to the point where costly capital projects are needed. There are 1,504,208 SY of pavement in inventory. The mix of projects, on average, over the last ten years has been: Capital projects: Construct/reconstruct 101,988 29.5% Partial reconstruct 117,327 33.9% Reclaim 64,352 18.6% Overlay -Structural 62,323 18.0% Total 345,990 100.0% Annual network projects 2.3% Street lifecycle equivalent 43 years Maintenance projects: Patch, Maint overlay Seal coat/fog seal Replay Sealant Crack repair 94,786 6.6% 368,471 25.7% 472,808 32.9% 499,540 34.8% 1,435,605 100.0% 9.5% 10 years The City's CIP and maintenance budgets include projects that should result in maintaining an average system -wide PCI of 65 to 75 for the next five years. Actual PCI scores are based upon physical surveys conducted. During the period covered by the current CIP, physical surveys are scheduled for 2023 and 2026. Public Works Operators make high quality, long-lasting pavement repairs on streets in Excellent and Good condition. In the past, Public Works operators typically placed about 150 tons of bituminous patch material annually. Over the last three years, Public Works operators have placed an average of just short of 350 tons of bituminous patch material per year, more than twice as much as usual. Frost Damage Sometimes, a significant challenge to maintaining PCI's of 65 - 75 comes in the form of severe weather. Following severe winters, there is always the chance for frost -damaged streets. In 2019, following a particularly severe winter, repairs to frost -damaged streets cost an additional $164,000. The typical repair process for frost -damage streets includes having Public Works Operators excavate, install geotextile fabric, and place aggregate material in frost -damaged areas. Contractors typically patch and pave larger frost -damaged areas, while smaller areas may be patched and paved by Public Works Operators. 7 Condition Ratings Q6.00-35 MARGINAL:36-50 ADEQUATE:51-70 GOOD:71-85 EXCELLENT: 85-100 Overall rating Rated streets Not rated Total PCI by Quadrant Northwest Northeast Southwest Southeast Rated streets Not rated Network Length Miles %% SY Area 2021 2020 395,338 74.9 83.0% 1,504,208 75 76 80,893 15.3 17.0% 415,301 na 476,231 90.2 100.0% 1,919,509 75 76 Length Miles 74,224 14.1 45,814 8.7 172,200 32.6 103,100 19.5 395,338 74.9 %% SY Area 15.5% 264,844 9.6% 181,514 36.2% 639,364 21.7% 418,486 83.0% 1,504,208 80,893 15.3 17.0% 415,301 476,231 90.2 100.0% 1,919,509 2021 2020 77 78 72 72 73 72 77 81 75 76 na na 75 76 PCI by Designation Length Miles %% SY Area 2021 2020 Local Roads 300,036 56.8 63.0% 1,106,071 73 73 MSA streets 60,890 11.6 12.8% 268,964 77 79 County Rd turn back 22,721 4.3 4.8% 74,656 87 88 C.S.A.H. turn back 10,601 2.0 2.2% 46,640 91 95 Trunk Hwy turn back 1,090 0.2 0.2% 7,877 100 100 Rated streets 395,338 74.9 83.0% 1,504,208 75 76 Not rated 80,893 15.3 17.0% 415,301 na na Network 476,231 90.2 100.0% 1,919,509 75 76 • attached for reference are photos of streets with various PCI ratings. 8 PCI by mileage (74.9 mi.) Excellent Good Adequate Marginal Poor 30.0 25.0 20.6 20.0 15.0 12.6 4.7 J409Y 27.5° J1680 p 86-100 71-85 51-70 36-50 PCI by area (1,504,209 SY) 700,000 Excellent Good Adequate Marginal 621,348 600,000 r, 500,000 400,000 300,000 '•2L}1,923 200,000 130,053 102,559''••.., 100,000 1.30 86-100 51-70 36-50 PCI = 100 PCI = 80 10 PCI = 70 46 PCI = 50 PCI = 50 II PCI = 40 14 PCI = 10 12 City of Hutchinson Public Works Roadway Maintenance Work Plan Considering the department's responsibilities, roadway maintenance has the most effect on the greatest number of people, so it is among the top maintenance activities done by the department. Roadway maintenance represents a significant amount of the department's time, resources and budget. The average pavement section in Hutchinson is about 539 feet long (about 1.6 typical city blocks). There are 90.2 miles of street and 883 sections of street. 15.3 miles and 104 sections are not rated because they are under the State jurisdiction, County jurisdiction or are undeveloped or unpaved. Street condition #sections LF Mi. Sq Ft Sq Yds %°% Poor (0-35) 82 33,699 6.4 1,170,479 130,053 9% Marginal (36-50) 50 24,770 4.7 923,032 102,559 6% Adequate (51-70) 107 66,520 12.6 2,177,304 241,923 17% Good (71-85) 209 108,780 20.6 3,674,934 408,326 27% Excellent (86-100) 331 161,569 30.6 5,592,129 621,348 41% Not rated 104 80,893 15.3 3,737,706 415,300 n/a All roadways 883 476,231 90.2 17,275,584 1,919,508 Department resources Time allocation: Approximately 3,500 hours (1.7 FTE) for roadway maintenance. General Fund: Approximately $212,000 for materials and repairs. Capital Projects Fund: Approximately $275,000 for preservation and repairs. Priority of streets to maintain: 1) Priority routes (as identified in the snow removal & ice control policy) 2) Business districts (including downtown, highway districts, schools, hospitals, etc.) 3) Parade routes (focus on pedestrian safety) 4) Residential streets 13 Most roadway sections are in EXCELLENT and GOOD condition (68%). Maintenance for these sections focuses on preservation: 1) Replay pavement preservation. Replay pavement preservation consists of first sweeping and cleaning the section. Bio-based preservation material is then applied at a rate of approximately 0.20 gallons/sq yd. In 30-60 minutes, the roadway is open to traffic. For high traffic roadways, dividing applications into two or three passes allows work to be done under traffic. At this point, it appears likely that sections will receive Replay pavement preservation applications at least three times, every 6-8 years. This work is typically done by a contractor. 2) Surface treatments. Other surface treatments are available, have been used, and will continue to be considered, based on their cost and effectiveness. Surface treatments include products like Reclamite, GSB88, T-MAT, MACMAT or other polymerized asphalt or petroleum based products. These products are designed to reintroduce binders that lock in aggregates while reducing the effects of oxidization. This work is typically done by a contractor. 3) Crack repair. Crack repair for sections in excellent condition consists of routing and sealing cracks to at least %" x %" using high -quality crack repair material. Cracks are over -banded so material does not extend more than %" above the grade of adjoining pavement. This work is typically done by a contractor. 4) Localized repairs. Localized repairs are made to address specific areas of distress in pavements. Whenever possible, distresses are milled or cut out to reach pavement in sound condition. Approximately 2-3" of pavement is removed, tacked, and bituminous material is placed to match the grade of adjoining pavement. As necessary, bituminous material may need to be removed down to the base material. After any base repairs are made, bituminous material is placed in lifts of 2-3" until matching the grade of adjoining pavements. Public Works operators typically address work in smaller distress areas, while contractors typically address larger distress areas. Roadway sections in ADEQUATE condition make up the next largest grouping (17%). Maintenance for these sections focuses on improving the section's condition: 1) Crack repair. Crack repair for streets in good/adequate condition may consist of routing and sealing low severity cracks, using mastic material and/or lower grade material for medium severity cracks (with or without routing). Spray injection patching or localized repairs may be made to address high severity cracks. Public Works operators typically address work in smaller distress areas. Contractors are used to address larger distress areas. 2) Spray infection patching. Spray injection patching may be used to address medium to high severity cracks, primarily as a method to improve ride quality. 14 3) Localized repairs. Localized repairs are made to address specific areas of distress in pavements. Whenever possible, distresses are milled or cut out to reach pavement in sound condition. Approximately 2-3" of pavement is removed, tacked, and bituminous material is placed to match the grade of adjoining pavement. As necessary, bituminous material may need to be removed down to the base material. After any base repairs are made, bituminous material is placed in lifts of 2-3" until matching the grade of adjoining pavements. Skin patching of large areas may also be done. Skin patching consists of a layer of bituminous material no more than 2" in depth being placed over distressed pavement or grade imperfections. Skin patches do not typically extend from curb to curb, nor are they usually more than 25% of a roadway section's length. Public Works operators typically address work in smaller distress areas. Contractors are used to address larger distress areas. 4) Seal coating. Once crack repairs and/or localized repairs have been completed, the roadway section may be a candidate for seal coating. Seal coating consists of sweeping and cleaning the section, placing bituminous oil, placing aggregate, sweeping up loose aggregate and applying a fog seal. This work is typically done by a contractor. 5) Maintenance overlay. Once crack repairs and localized repairs are complete, the roadway section may be a candidate for a maintenance overlay. Maintenance overlays consist of placing a layer of bituminous material no more than 2" in depth over repaired pavement or grade imperfections. Maintenance overlays generally extend from curb to curb and typically address at least 25% of a roadway section's length. Public Works operators typically prepare the roadway for the maintenance overlay by milling curb edges, milling around utility structures, and making necessary minor repairs before installing the overlay. Maintenance overlay paving is typically done by a contractor. Roadway sections in MARGINAL and POOR condition make up the least amount of sections (15%). Maintenance for these sections focuses on the safety of users: 1) Safety -related repairs. The focus for these sections is generally limited to repairs necessary to address safety concerns. Work will generally focus on crosswalks and travelled portions of the section (the center 24'). Work outside of the travelled portions of the pavement section focuses on addressing any significant safety concerns. 2) Localized repairs. Localized repairs will be done on sections in marginal or poor condition, when authorized by the Public Works Manager or designee. Generally localized repairs will be not be authorized unless the repair will likely move the section into a higher condition category or be effective for at least two years. The Public Works department maintains a list of pavement sections that need to be reconstructed. Once a section is placed on the reconstruction list, maintenance activities are primarily focused on addressing safety concerns related to potentially hazardous conditions. 15 Factors that are evaluated to determine if sections need to be reconstructed include, but are not limited to: • Pavement surface conditions warrant reconstruction (< PCI 40) • Preservation is no longer cost effective • Subgrade failure • Failure of curb, gutter and drainage improvements • High or low grade on the roadways' crown that affect drainage • Traffic considerations • Capacity considerations • Functional considerations • Safety considerations • Condition of associated utilities • Condition of associated municipal infrastructure Identifying sections that need reconstruction helps the department allocate its resources to pavement repairs that maximize cost -benefit. Local Repairs A typical maintenance/patching day includes transporting material and equipment, preparing work sites, conducting patching/repair work and cleaning up. Most Public Works operators' work focuses on sections with PCIs from 51-100. The following identifies why City operators focus on sections with PCIs of 51-100: 1) Capable operators — Current Public Works operators are skilled at making small, localized pavement repairs. 2) Adequate equipment — Equipment currently owned by the City allows Public Works operators to make high -quality pavement repairs. 3) Contracting is expensive — Many contractors focus on larger jobs, so contractors are usually only willing to do small repairs if they are highly profitable. 4) PCIs from 51-100 — Repairing defects is typically cost-effective. 5) PCIs 50 or less — Repairing defects is typically not cost-effective. Limiting maintenance on streets with PCIs 50 or lower to addressing safety concerns and hazards typically allows adequate time necessary to perform more cost-effective repairs on sections with PCIs 51-100, without increasing crew size. Using Public Works operators, equipment and resources to address sections with PCIs between 51-100 results in more streets receiving attention. 16 Crew assignments: 1— Site Preparation 2 — Patcher 3 — Driver 4— Raker/Finisher 5 — Roller Operator 6 — Truck driver Typical Crew Size* = As few as one employee when placing cold mix, to as many as six crew members when hauling and placing larger quantities of bituminous materials * Crew size does not take traffic control into account. For situations requiring significant traffic control efforts, additional crewmembers are assigned as needed. Light Roadway Maintenance Equipment: • 1-ton dump truck • 9,900# tilt -bed trailer • 46" vibratory roller/compactor • 1-ton w/ flatbed -dump • 3.5 cubic yard heated asphalt trailer w/ 50 gal tack oil • Walk -behind blower • Backpack blower • Miscellaneous hand tools (Seasonal maintenance personnel can operate the aforementioned equipment without special licenses. Early and late in the season, one load of 3.5 cubic yards is typically adequate for patching. The 46" roller is adequate for most municipal applications.) Heavy Roadway Maintenance Equipment: • 2 ea. Tandem -axle dump trucks • Single -axle dump truck for debris • Wheel loader • Tilt -bed trailer for skid steer loader • Skid steer loader • Skid steer attachments: 1) Bucket; 2) Hydraulic breaker; 3) Asphalt Planer; 4) Pickup Broom; 5) Kick off broom. (Full-time, regular operators operate this equipment. Larger repairs will typically require some or all of this equipment.) 17 City of Hutchinson Centerline Map 2021 Pavement Management Report N W E S 5-year Proiect Selection Preservation Maintenance Capital project 5-year CIP Ofc-� \-0p .rtsrmo � � �µeP wte wic Mw qru S I �cxASA�mv mou[ w I R rs spow- SpL Fv,PFW�Y RM A r3 22 �� AVE AlI 5c Ei ('4-,tF sb' 3 Ei 1 B `w wTSA -a � R ew � l I W � w e S i -Paul,�� ONVE 9W L�1gSJ GOESEL Si E F w; flW T T mwRME Sw ' 17 ♦ s,- y— SW LE"S ME 9M B e E % RaoeRrs I; I .;`�IOyL JL u L 'MT. coenEt sr 4ew orxtx��sw � uwJcN ' N wMP RCM w NNE (� NG(31NVt BWLEMIO f c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Review of the 2021 Compensation Study Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Please see the attached memo and supporting documents. BOARD ACTION REQUESTED: No Action Required. Discussion Only Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A u HUTCHINSON A CITY ON PURPOSE. Memo To: Mayor and City Council From: Matt Jaunich, City Administrator Date: 11/23/21 Re: 2021 Compensation Study Report Office of the City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 320-234-4241/Fax 320-234-4240 Please find attached to this memo a copy of the final report of our 2021 compensation study prepared by Keystone Compensation Group. I'll be touching on this memo and the attached reports at the council meeting. Attached for your review is the market comparison group, the overall program review report, the proposed revised position classification table, the proposed new Seasonal/Temporary/Part Time Pay Program, and our previous Seasonal/Temporary Pay Program. Backaround Back in 2016, the City hired Keystone Compensation Group, LLC to conduct a comprehensive job evaluation and compensation program review and update for all of the City positions. This had been the first comprehensive review in over 11 years. A key outcome of that study was redesigning the salary ranges and aligning the compensation program with the market to create the compensation system that we have today. Back in February of this year, Administration once again asked Keystone to conduct a job evaluation and compensation review. This review was on a smaller sale then the 2016 study and the purpose of the review was to confirm the City's competitive position of our compensation program relative to the market. Along with taking a look at the market, we also gave department heads an opportunity to submit job re-evaluation requests for jobs that have changed significantly since the last review was conducted in 2016. Overall, we received requests to reevaluate twenty (20) jobs. Of those twenty jobs, four jobs increased by one level, two jobs went down by one level, one job was new and was evaluated and assigned accordingly, and thirteen jobs remained unchanged. Those jobs that were reviewed and the impact it had on our position classification table can be found in Appendix A of the report. It is important to keep in mind that the following principles were used while evaluating the twenty job requests: 1. The evaluation process is mainly concerned with job functions, which are driven by the services delivered. Therefore, evaluations focus on the job not the employee. 2. The evaluation process is not the right tool to recognize employees for performance or heavy workload. It is concerned with the essential job functions and getting work done. 3. Jobs are not evaluated in isolation of the remaining jobs within the City. The relative relationship among all the jobs within the City affects the final job grade. This is important for the City to maintain compliance with the State pay equity requirements. 4. The final job grade is determined by the combination of internal job evaluation and the market at the same time. A statistical regression line is used to develop the policy trendline for the overall pay program of the City. Based off of this, jobs were evaluated and assigned to their job grades while maintaining appropriate internal relationships among jobs within each department and the City. (Job Calibration) Please note that it is our intention to do another comprehensive review of the entire compensation program in 5 years (10 years after our last one). Takeaways from the Reuort • Our current salary range midpoints are at 96% of the market indicating that we are lagging behind the market by 4% • The consultant is projecting a 3% market movement for next year • Considering the current market and the proposed market movement for next year, it is the recommendation to move our pay grid by 7% next year (proposed structure can be found on page 6 of the program review report) • From a pay perspective, currently we are administrating employees` salaries at 104% of job midpoints • The proposed new pay structure takes into consideration that we will move our part-time positions (grades PT Cust., PT Liq., & PT Comp.) to our new seasonal/ temporary/part-time pay program On top of this, we also had our consultant review our seasonal/temporary pay program and he recommended several changes to the program. A couple of key points: 2 • It is recommended that our regular part-time positions be added to this pay program • Our current schedule has too many levels (pay grades) and steps and not sufficient and/or meaningful progression within each of the levels (between steps) • The consultant recommended that we simplify our schedule and the proposed new schedule can be found in Appendix B • Market data on our seasonal/temporary positions were fairly limited, but we were able to get a decent amount of benchmark data to put a plan together • The changes in the seasonal/temporary/part-time pay program will have a significant financial impact on next year's budget Estimated Costs of the Prouosed Chancies Staff has looked into the costs of the proposed changes within this plan and it is estimated to cost the City $146,631 next year with the majority of these costs associated with the seasonal pay adjustments. These costs have already been factored into the proposed budget for 2022. Hutchinson's Comuensation Strateciv Please keep in mind that the compensation strategy for the City of Hutchinson to compete for talent in the marketplace is based on four key pillars: 1. What is our market for talent? Who do we compete with? 29 Cities and Counties, generally comparable in size and type of services delivered; where City draw talent (see attached market area) 2. Where does the City intend to position its pay program relative to the market? City's salary range midpoints are aligned with market median 3. What does the City intend to pay for? City's pay philosophy is to reward employees for contributions as determined by the performance evaluation process 4. How does the City administer its pay program and grant pay increases? Merit increases are determined based on performance and pay within the range Hutchinson's Comuensation Obiectives As you look at the report and consider the proposed changes and impacts it will have on the city, please keep in mind the City's six compensation objectives: 1. To establish and maintain a compensation plan that enables the City of Hutchinson to be highly competitive within our defined market 2. To lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve 3. To ensure, subject to the financial condition of the City, that employees receive fair and equitable compensation in relation to their individual contributions to the City's success 4. To follow the principles of pay equity in establishing and maintaining pay relationships among positions based on the categories of the Keystone Point Factor System 5. To ensure program flexibility necessary to meet changing economic, competitive, technological, and regulatory conditions encountered by the City 6. To balance compensation and benefit needs with available resources I'll be going through this report at our meeting on Tuesday. Please let me know if you have any questions or need any additional information. Matt 4 u HUTCHINSON A CITY ON PURPOSE. Confidential CITY OF HUTCHINSON, MINNESOTA 2021 COMPENSATION PROGRAM REVIEW Prepared by Keystone Compensation Group LLC October 2021 Minneapolis, MN SS427 Telephone: 612.810.3522 E-Mail: Sabboud(@keystonecomp.net Web: www.keystonecomp.net KEYSTONE COMPENSATION GROUP - Keystone Compensation Group LLC I www.keystonecomp.net 1612.810.3522 CITY OF HUTCHINSON 2021 COMPENSATION PROGRAM REVIEW TABLE OF CONTENTS Objectives of This Study -------------------------------------------------------------------------- Steps for Completing This Project ------------------------------------------------------------- General Market Compensation Increase Trends-------------------------------------------- Key Observations Based on Program Review and AnaIysis------------------------------- Proposed 2022 Salary Structure---------------------------------------------------------------- Summary of Program Review and Conclusions --------------------------------------------- Graphs and Scatterplots Showing Results of Compensation Program AnaIytics------ Pa_7, I1 Page# 12 OBJECTIVES OF THIS STUDY Keystone Compensation Group LLC conducted a compressive compensation program review and update for the City of Hutchinson (City) in 2016. A key outcome of that study was redesigning the salary ranges and aligning the compensation program with the market. City leadership asked Keystone in 2021 to conduct a smaller scale review to confirm the competitive position of the compensation program relative to the market. This study included: 1. Review job reevaluation requests from managers and evaluate 20 jobs to confirm their grades. 2. Collect market data for 32 benchmark jobs representing a cross-section sample of jobs within the City. This step was completed internally with assistance from Keystone. 3. Prepare compensation analytics with the purpose of understanding the overall position of City's compensation program relative to the external market. 4. Prepare a summary of observations and recommendations. This report includes a summary of the steps we followed to conduct this study, results of our analysis, and recommendations for adjusting the 2022 salary ranges. Additional supporting information and analysis are provided separately to the HR Director in electronic files. Keystone Compensation Group LLC P: y 13 STEPS FOR COMPLETING THIS PROJECT 1. HR staff worked with each of the department managers to confirm any significant changes in job duties and ensure that job descriptions within their departments are current. 2. Several department managers submitted requests for job evaluation review when they believed that a job has experienced significant changes in its duties. Keystone consultants reviewed the reevaluation requests and evaluated 20 jobs. The current job evaluation system was used to evaluate these jobs and assign them to their grades. 4. Consultant reviewed the results of the reevaluation requests with the City Administrator and HR Director. A summary of job grade changes and relevant observations was provided separately to HR. 5. Collected market information for 32 benchmark jobs using the approved market reference group of government agencies. This survey was administered by City's HR staff. 6. Used the combination of job grades and market data to compare current salary ranges and actual pay with the market. 7. Prepared the comparisons between current salary range midpoints and market mean/median for actual pay to determine the competitive position of the salary ranges. 8. Met with the City Administrator and HR Director to review results of this study. Keystone Compensation Group LLC - 14 GENERAL MARKET COMPENSATION INCREASE TRENDS* • Nationally, the total salary increase budget was 2.9% in 2021 and is projected to increase by 3.3% in 2022. • Salary structure adjustment was 1.7% in 2021 and is expected to go up by 2.1% in 2022. Industry 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-P ■ Finance & 2.8% 3.0% 3.0% 3.2% 3.1% 3.0% 3.2% 3.3% 3.2% 2.8% 3.2% Insurance Healthcare 2.7% 2.8% 2.5% 2.7% 2.9% 2.9% 3.0% 3.1% 2.7% 2.9% 3.2% Systems Manufacturing 2.9% 3.1% 2.9% 3.0% 3.0% 3.0% 3.1% 3.2% 2.7% 3.0% 3.3% Retail 2.8% 2.8% 2.9% 3.0% 2.9% 2.9% 3.1% 3.0% 2.4% 3.0% 3.2% Public 1.7% 2.1% 2.9% 2.7% 3.2% 2.7% 2.7% 3.2% 3.2% 2.5% 3.0% Administration Construction 2.6% 2.7% 3.7% 2.9% 3.4% 3.4% 3.4% 3.9% 3.4% 3.3% 3.4% Non-profit 3.0% 3.0% 3.0% 3.2% 3.3% 3.0% 3.0% 3.2% 3.0% 3.0% 3.0% (national) Minnesota (all 2.9% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.2% 2.8% 2.9% 3.3% ind.) Small Co. $30- 3.1% 3.1% 3.1% 3.2% 3.1% 3.1% 3.2% 3.5% 3.1% 3.3% 3.6% 100 mm * 2012-2022 Nationwide WorldatWork Salary Planning Surveys & Other Sources Keystone Compensation Group LLC Page 15 KEY OBSERVATIONS BASED ON PROGRAM REVIEW AND ANALYSIS 1) For the propose of this analysis, 32 jobs out of a total of 67 fulltime jobs in the City were benchmarked with the market. These jobs represent about 50% of City jobs and cover all grades within the salary structure. 2) There were 59 employees (out of 104 fulltime) in the benchmark jobs accounting for approximately 57% of total City employees. This sample should be sufficient given that the purpose of this study is confirming the overall position of the compensation program relative to the market. 3) Currently, the City is administering its compensation program at 104% of range midpoint vs. 101.4% in 2016. There are significant variations in this ratio among jobs and employees. 4) When we compared actual pay for City's benchmark jobs with market median, we found out that City's pay level is 100% of market. However, actual pay ratio for jobs in grades 170 and higher is 105% vs. 94.2% for jobs in grades 160 and lower. 5) Current salary range midpoints are at 96% of market mean indicating that they are lagging the market by 4%. 6) Actual City's pay for all jobs as a percent of current midpoints is 104%. However, this ratio is 109% for employees in grades 170 and higher vs. 99% for employees in grades 160 and lower. See the pay penetration graph on page #10. Additionally, the internal pay ratio for permanent part-time jobs is 98% of their midpoints. 7) The proposed 2022 salary structure incorporates a 4% market adjustment and a 3% projected market movement for next year. Total adjustment for the 2021 ranges is 7%. See page #6 for a side -by -side comparison of 2021 and the proposed 2022 salary ranges. Keystone Compensation Group LLC 2021 Hutchinson Structure Grade MIN MID MAX Range Spread % 260 $51.14 $63.92 $76.70 50.0% 250 $48.19 $60.24 $72.29 50.0% 240 1 $45.70 $57.12 1 $68.54 50.0% 230 $43.65 $54.56 $65.47 50.0% 220 $39.79 $49.74 $59.69 50.0% 210 $37.74 $47.18 $56.62 50.0% 200 $35.91 $44.89 1 $53.87 50.0% 190 $32.51 $40.64 W.77 50.0% 180 $30.01 $37.51 $45.01 50.0% 170 $27.46 $34.32 $41.18 50.0% 160 $26.14 $32.68 1 $39.22 50.0% 150 $24.10 $30.12 $36.14 50.0% 140 $22.74 $28.43 $34.12 50.0% 130 $21.14 $26.43 $31.72 50.0% 120 $19.32 $24.15 1 $28.98 50.0% 110 1 $16.82 $21.02 $25.22 50.0% 100 1 $15.00 $18.75 $22.50 50.0% 2022 Hutchinson Structure Grade MIN MID MAX Range Spread % 260 $54.72 $68.39 $82.07 50.0% 250 $51.57 $64.46 $77.35 50.0% 240 $48.89 $61.12 1 $73.34 50.0% 230 $46.70 $58.38 $70.06 50.0% 220 $42.58 $53.22 $63.87 50.0% 210 $40.39 $50.48 $60.58 50.0% 200 $38.43 W.03 $57.64 50.0% 190 $34.79 $43.48 $52.18 50.0% 180 $32.11 W.14 W.16 50.0% 170 $29.38 $36.72 $44.07 50.0% 160 $27.97 $34.97 $41.96 50.0% 150 $25.78 $32.23 $38.67 50.0% 140 $24.34 $30.42 $36.50 50.0% 130 $22.62 $28.28 $33.94 50.0% 120 $20.67 $25.84 $31.01 50.0% 110 $17.99 $22.49 1 $26.99 50.0% 100 $16.05 $20.06 1 $24.08 50.0% 16 P.._. 17 SUMMARY OF PROGRAM REVIEW AND CONCLUSIONS 1. This study was conducted to confirm the alignment of Hutchinson's compensation program with the reference market. 2. Thirty-two (32) benchmark jobs representing a cross-section of City jobs and grades were analyzed. 3. Twenty jobs were reevaluated to confirm their grades. Reevaluation results were provided separately. 4. This study showed that City's salary ranges are at 96% of market, or 4% below the market as defined in the compensation strategy. This strategy states that ranges midpoints should be aligned with market median. 5. The comparison of City's actual pay for benchmark jobs with market median and mean showed that Hutchinson is paying right at market. 6. However, when City's actual pay data were analyzed by grade, we found out that jobs in grades 170 and higher are paid at 105% of market vs. 94% for jobs in grades 160 and lower. This trend was also evident when we compared actual pay with the current midpoints for all City jobs. 7. The City is administering employees' salaries at 104% of job midpoints. However, this ratio is 109% for jobs in grades 170 and above vs. 99% for jobs in grades 160 and lower. 8. Based on available national forecasts for 2022, the salary budget increase for the public administration sector is expected to be 3.0%. 9. We used the information we learned about the current program position relative to the market and the 2022 project salary budget increase to prepare a draft for the 2022 salary ranges. These ranges reflect 4% market adjustment and 3% market trend to update the 2021 ranges for 2022. 10. In the following pages we show graphic illustrations of the results of this market study to better help us understand compensation program attributes. Keystone Compensation Group LLC $80.00 $75.00 $70.00 $65.00 $60.00 $55.00 a, $50.00 > $45.00 0 0 _ $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10 00 le Relationship of 2021 Hutchinson Salary Range Midpoints to Market Mean by Grade e Current Range Midpoint a Grade MKT Mean R' = 0.9649 i b — — —CH Range Midpoint Line — — — Market Mean Lined i ® R' = 0.9971 Qi ' e 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Job Grade Keystone Compensation Group LLC a Comparison of Hutchinson Actual Pay with Reference Market Mean $80.00 $75.00 R' = 0.9171 $70.00 - C CH Average Hourly Rate B Market Weighted Mean - - - - - $65.00 - — — CH Actual Pay — — — Market Mean Line - - - R' = 0.928t; - ®- $55.00 - j- v $50.00Cr 2 $45.00 • - '� - - _ $40.00 S s 4 m a i $35.00 • $ S i $30.00 ® '��� • • ' $25.00 a, b $20.00 $15.00 $10.00 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Job Grade Keystone Compensation Group LLC Page 110 Relationship of Average CH Actual Pay to Grade Midpoint (Range Penetration) 120.00% 115.00% 110.00% 0 i 105.00% O • a 0 0 p 100.00% • is • oc • a 95.00% 90.00% 85.00% 80.00% 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Job Grade Keystone Compensation Group LLC I11 Comparison of Hutchinson Average Actual Pay Relative to Range Midpoir $75.00 $70.00 • Grade Midpoint • CH Avg Pay $65.00 — — — CH Midpoint Line — — — CH Actual Pay Line i $60.00 i $55.00 $50.00 i . $45.00 > 'o $40.00 i e1 i i ' ' e 2 I4VI I'® $35.00 i ' • i $30.00 $25.00 $20.00 s ' ® s� $15.00 $10.00 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 Job Grade Keystone Compensation Group LLC 2021 COMPENSATION STUDY City of Hutchinson Peer Group City of Hutchinson Peer Group Name Population Name Population Fairmont 10,299 Willmar 20,226 Waconia 13,277 Northfield 20,494 Worthington 13,522 Hastings New Ulm 13,562 Farmington 23,123 Brainerd 13,755 Meeker County 23,256 Fergus Falls 13,766 Faribault 23,912 Marshall 13,835 Champlin 2 4—,21 -3 4 Monticello 13,886 Austin 25,679 Alexandria 14,156 Chanhassen 26,278 Hutchinson 14,282 Owatonna 26,314 Renville County 14,588 Prior Lake 27,005 Sibley County 14,899 Winona 27,252 Bemidji 16,318 Chaska 27,692 Red Wing 16,443 McLeod County 35,963 Buffalo 16,558 Carver County 107,179 Albert Lea 18,132 Wright County 138,531 IPopulation Data Source: 2019 Minnesota State Demographer Market Definition: 29 Cities and Counties comparable in size, type of services delivered, and where the City's talent pool exists APPENDIX A CITY OF HUTCHINSON 2021 Position Classification Table Grade Position 110 PT Adaptive Recreation Coordinator 110 PT Compost Scale Operator 110 PT Maintenance - City Center 110 PT Custodian - Event Center/Recreation Center 110 PT Liquor Sales Clerk 110 PT Office Specialist - Event Center 110 PT PRCE Receptionist 120 Administrative Secretary - Public Works 120 General Maintenance Worker - Event Center 120 Licensing Clerk FT/PT 120 Recreation Facility Maintenance Technician 120 PT Recreation Specialist/Concessions Coordinator 120 Utility Billing Specialist 120 Watet/Wastewater Technician 120 Planning/Building/EDATechnician 130 Compost Laborer 130 Emergency Dispatcher - FT/PT 130 Engineering Administrative Specialist 130 Hospital Security Guard - FT/PT 130 Human Resources/AdministratiVeTechriiclan 130 Planning and Building Administrative Specialist 130 Police Administrative Specialist 130 Police Supplemental Services Specialist 130 Public Works Maintenance Operator 130 Wastewater Maintenance Operator 130 Water Plant Operator 140 Compost Equipment Operator 448 140 Lab Technician/Wastewater Operatad= 140 Parks Maintenance Equipment Operator 140 Payroll/Benefits Specialist 140 Plant Equipment M 140 Police Investigations Specialist 140 PRCE Facilities Operations Specialist 140 Senior Accounting Specialist 140 Senior Liquor Sales Clerk 140 Senior Public Works Maintenance Operator 140 Senior Water Plant Operator 140 Senior Wastewater Operator Grade Position 150 Equipment Mechanic erg n agnt,..,anee Lead d n..eFate 150 Parks Maintenance Specialist 150 Sales & Marketing Specialist 150 IT Technician 160 Arborist 160 Building Inspector 160 dt*ve Assist t City Clerk/Paralegal 160 Maintenance Lead Operator 160 Police Officer - FT/PT 170 Event Center Coordinator 170 Recreation Services Coordinator 170 Senior Engineering Specialist 170 Server/Network Technician 180 Building Official 180 Facilities Manager 180 Motor Vehicle Deputy Registrar 1 180 Police Sergeant 180 Project/Environmental/Regulatory Manager 180 Recreation Facilities Operations Manager 4-99 4-&G WateF Supertriser Police Lieutenant �190 TJC Rer--- Far-Alities ll..e 11A-...-.ge- eatie—n Fatiens 190 Assistant Finance Director 190 Wastewater Supervisor 190 Water Supervisor 200 Compost Manager 200 Economic Development Director 200 Fire Chief 200 Liquor Sales Manager 200 Public Works Manager 220 Finance Director 220 Human Resources Director 220 Information Technology Director 220 Parks/Recreation/Community Ed (PRCE) Director 220 Planning Director 230 City Attorney 150 Compost Coordinator 230 Police Chief/Emergency Management Director 150 Inspector 230 Public Works Director/City Engineer 150 Engineering Specialist 260 City Administrator NOTES Job grades for four (4) jobs increased by one grade level. Job grades for thirteen (13) jobs remained unchanged. Job grades for two (2) jobs decreased by one job level. One (1) new job was evaluated and assigned to the appropriate grade. APPENDIX B 2022 City of Hutchinson Seasonal / Tem ora / Part Time Pay Schedule Pay Level 85% 90% 93% 96% 100% 104% Level A $12.00 $12.40 $12.80 $13.35 $13.90 Level B $14.00 $14.50 $14.95 $15.60 $16.20 Level C $16.20 $16.75 $17.30 $18.00 $18.75 Level D $19.35 $20.00 $20.65 $21.50 $22.40 Level E $23.80 $25.20 $26.10 $26.90 $28.00 $29.15 Positions by Pay Level Level A Arena Attendant Bike/Park Patrol Event Center Attendant Event Center Maintenance Gymnastics Aide PRCE Office Staff Rec Center Attendant Rec Center Attendant/Janitor Rink/Warming House Attendant Scorekeeper Tournament Worker Any other non -lifeguard employee under 18 Level B Adaptive Recreation Assistant Admissions/Pool Attendant Concessions Worker Concessions Lead* Lifeguard Lifeguard Shift Lead* Lifeguard Scheduler** Seasonal Arena Lead Worker Skating Instructor Swimming Instructor Temporary Liquor Sales Clerk Water/Wastewater Laborer Youth Coach Level C Engineering Survey Crew Head Lifeguard Park Maintenance Parks Maintenance Specialist Parks Seasonal Maintenance Lead* Part Time Liquor Sales Clerk Part Time Compost Monitor Public Works Maintenance Assistant Public Works Intern Public Works Laborer Public Works Maintenance Specialist Youth Head Coach Level D Arena Attendant/HVAC Mechanic Lifeguard Supervisor Public Works Equipment Operator (CDL) Swimming Supervisor Tournament Coordinator Level E Aquatic Center Manager * - Add $.25/hour for additional duties ** - Add $1.50/hour for additional duties 2021 CITY OF HUTCHINSON SEASONAL PAY GRID - AMENDED 6-2021 Step 1 Step 2 Step 3 Step 4 Step 5 Pay Grade Minimum Maximum S/1- 1 11.08 11.25 11.50 11.75 12.00 S/T 2 11.50 11.75 12.00 12.25 12.50 S/T 3 11.75 12.00 12.25 12.50 12.75 S/T 4 12.00 12.25 12.50 12.75 13.00 S/T 5 12.25 12.50 12.75 13.00 13.25 S/T 6 12.50 13.00 13.50 14.00 14.50 S/T 7 12.75 13.61 14.48 15.34 16.20 S/T 8 13.75 14.69 15.63 16.56 17.50 S/T 9 14.75 15.76 16.78 17.79 18.80 S/T 10 15.75 16.84 17.93 19.01 20.10 S/T 11 1 16.751 17.911 19.081 20.241 21.40 S/T 12 1 21.751 23.291 24.831 26.361 27.90 2021 City of Hutchinson S/T 1 Concessions Worker Event Center Attendant Gymnastics Aide PRCE Office Staff Seasonal/Temporary Position Classification Table S/T Positions by Grade S/T 6 Adaptive Recreation Assistant Youth Head Coach Rec Center Attendant Rink/Warming House Attendant Scorekeeper Tournament Worker Admissions/Pool Attendant Any other non -lifeguard employee under 18 (arena, park maint., etc) S/T 2 Lifeguard Skating Instructor * Temporary Liquor Sales Clerk Water/Wastewater Laborer Youth Coach S/T 7 Public Works Intern (W/WW/Forestry/Environmental) S/T 8 Engineering Survey Crew Head Lifeguard Seasonal/Temporary Planning/Building Office Worker Public Works Maintenance Specialist Parks Maintenance Specialist S/T 9 Arena Attendant/HVAC Mechanic S/T 10 S/T 11 S/T 3 Lifeguard Supervisor Arena Attendant Bike/Park Patrol Concession Lead Event Center Maintenance Lifeguard - Shift Leader ** Park Maintenance ** Public Works Laborer Rec Center Attendant/Janitor Swimming Instructor S/T 4 Public Works Maintenance Assistant (Forestry/Streets/ Jetter) S/T 5 Parks Seasonal Maintenance Lead Lifeguard Scheduler Seasonal Arena Lead Worker Public Works Equipment Operator (CDL) Swimming Supervisor Tournament Coordinator S/T 12 Aquatic Center Manager * Compensation for temporary liquor sales clerk is $13.00/hour based on market demand. (2020) ** Positions are primarily mowing or performing building/grounds maintenance. (parks/airport/ cemetery) *** Positions truly support and perform duties similar to or with the full time maintenance employees. cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Discussion on the Preliminary Budget and Tax Levy for 2022 Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City Staff would like to have a discussion on changes made to the preliminary budget and tax levy prior to the truth -in -taxation hearing that is scheduled for Tuesday, December 7. Proposed budget and tax levy updates have been included. BOARD ACTION REQUESTED: No Action Required. Discussion Only Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REVENUES: Taxes Other Taxes Licenses & Permits Intergovernmental Revenue Charges for Services Fines & Forfeitures Miscellaneous Revenues Transfers -In Liquor Fund Water & Sewer Funds Compost Fund Hutch Utilities Comm HSA Contrib-Self Insurance Total Transfers -In Fund Balance TOTAL REVENUES EXPENDITURES: Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay TOTAL EXPENDITURES NET REVENUES General Fund Revenues & Expenses Actual Budget 2022 BUDGET Change from Sept Change from 2021 2020 2021 September Current Amount % Amount % 5,267,063 5,442,779 5,622,096 5,620,359 (1,737) 0.0% 177,580 3.3% 279,336 305,000 305,000 305,000 - 0.0% - 0.0% 511,768 380,300 438,450 443,100 4,650 1.1% 62,800 16.5% 1,757,583 1,716,788 1,741,420 1,744,541 3,121 0.2% 27,753 1.6% 2,014,590 2,786,834 2,811,835 2,810,774 (1,061) 0.0% 23,940 0.9% 45,158 55,000 55,000 55,000 - 0.0% - 0.0% 404,027 246,250 256,750 256,500 (250) -0.1% 10,250 4.2% - 0.0% 500,000 550,000 550,000 550,000 0.0% - 0.0% 120,000 150,000 150,000 150,000 - 0.0% - 0.0% 110,000 110,000 110,000 120,000 10,000 9.1% 10,000 9.1% 1,867,192 1,867,191 1,867,191 1,867,191 - 0.0% - 0.0% 69,000 46,000 23,000 23,000 - 0.0% (23,000) -50.0% 2,666,192 2,723,191 2,700,191 2,710,191 10,000 0.4% (13,000) 0.0% - 40,000 - - - 0.0% (40,000) -100.0% 12,945,717 13,696,142 13,930,742 13,945,465 14,723 0.1% 249,323 1.8% 8,537,132 9,245,778 9,400,544 9,431,522 30,978 0.3% 185,744 2.0% 681,900 882,622 924,115 934,515 10,400 1.1% 51,893 5.9% 2,462,576 2,755,282 2,785,184 2,758,529 (26,655) -1.0% 3,247 0.1% 593,815 684,310 705,586 705,586 0.0% 21,276 3.1% 105,000 108,150 110,313 110,313 0.0% 2,163 2.0% 24,458 20,000 5,000 5,000 - 0.0% (15,000) -75.0% 12,404,882 13,696,142 13,930,742 13,945,465 14,723 0.1% 249,323 1.8% 540,835 - - - - - Wages & Benefits: Wage Study Impact Pay Grade inflation shift to 7% from initial 2% assumption 46,274 Impact from Pay Grade changes for affected employees 22,382 Seasonal Pay adjustment 77,975 Total Wage Study Impact 146,631 Health Premium 5% reduction; 0% assumed in September (47,438) Engineering Assistant 50% split with HRA (34,946) Event Center reorganization due to retirement (25,336) Other miscellaneous adjustments (7,933) Total Change from September preliminary levy 30,978 Budgetary Changes from Department Meetings: Various increases to Charges for Services revenue 33,885 Increase Creekside transfer to General fund 10,000 Various increases to Supplies expense (10,400) Various decreases to Services & Charges expense 26,655 Total Departmental Savings to Budgets 60,140 Engineering Fee reduction due HRA 50% split (34,946) Net Departmental Budgetary Savings 25,194 PRELIMINARY LEVIES FOR 2022 2021 2022 % Chg General Fund 5,400,779 5,580,096 3.3% Tax Abatement 30,000 30,000 0.0% Total General Fund 5,430,779 5,610,096 3.3% Debt Funds 2,200,000 2,555,797 16.2% Total City Tax Lpu.v 7,630,779 8,165,893 7.0% EDA Levy $200,325 $222,817 11.2% HRA Levy 200,000 208,000 4.0% TOTAL TAX IMPACT $8,031,104 $8,596,710 7.0% LEVY SCENARIO FOR 2022 Change 2021 2022 % Chg from Prelim General Fund 5,400,779 5,578,359 3.3% 0.0% Tax Abatement 30,000 30,000 0.0% 0.0% Total General Fund 5,430,779 5,608,359 3.3% 0.0% Debt Funds 2,200,000 2,348,252 6.7% -9.4% Total City Tax Levy 7,630,779 7,956,611 4.3% -2.7% EDA Levy $200,325 $222,817 11.2% 0.0% HRA Levy 200,000 208,000 4.0% 0.0% TOTAL TAX IMPACT $8,031,104 $8,387,428 4.4% -2.6% PRELIMINARY TAX IMPACT 2022 Tax Levy Options Current Sept Prelim Adopted 2021 Option #1 Option #2 Option #3 Option #4 Option #5 General Fund levy. 3.3% 0.0% 0.0% 2.5% 3.3% 3.3% Debt levy. 0.0% 0.0% 6.75,,, 6.7% 6.7% 16.2% TAX CAPACITY $ 11,945,110 $ 13,196,969 $ 13,196,969 $ 13,196,969 $ 13,196,969 $ 13,196,969 % Change 10.5% 10.5% 10.5% 10.5% 10.5% Tax Levy - General Fund 5,430,779 5,430,779 5,430,779 5,566,548 5,608,359 5,610,096 Tax Levy - Debt Service 2,200,000 2,200,000 2,348,252 2,348,252 2,348,252 2,555,797 TOTAL LEVY $ 7,630,779 $ 7,630,779 $ 7,779,031 $ 7,914,800 $ 7,956,611 $ 8,165,893 Total Levy % Increase over 2021 0.0% 1.9% 3.7% 4.3% 7.0% Tax Rate 63.882% 57.822% 58.946% 59.974% 60.291% 61.877% Change in Tax Rate -6.060% -4.936% -3.908% -3.591 % -2.005% Homestead Property: 2022 Tax Levy Options Adopted 2021 Option #1 Option #2 Option #3 Option #4 Option #5 Median Home Value $ 186,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Homestead Exclusion (20,500) (19,200) (19,200) (19,200) (19,200) (19,200) Net Taxable Value $ 165,500 $ 180,800 $ 180,800 $ 180,800 $ 180,800 $ 180,800 % Change 9.2% 9.2% 9.2% 9.2% 9.2% Estimated City Tax 1,057 1,045 1,066 1,084 1,090 1,119 Change from 2021 $ (11) $ 9 $ 28 $ 34 $ 62 % Change -1.0% 0.9% 2.7% 3.2% 5.9% $3,500,000- $3,000,000 '---- $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Projected Debt Tax Levy - September �wx� riiR�OE ixsw4los 17 (t lEJfF7,OH !}OMA77 illQ7� -- �®rio 39,[1iYY! JdilikY.�r�'� _ii926P6� 6Y pM�Mr C9,77i,M9 �2ri7,7e J n� iiW s>�IMa t ehd I I I i I i 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Existing Levy ©Proposed Future Issues I•Equipment Debt =Police Facility —Current Target Levy —New Debt Levy Total 0 $3,500,000 $3,000,000 i $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Projected Debt Tax Levy - December OJT". lmrn � glil�kl Pirp — I I I I .I I I I I I I I 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Existing Levy ®Proposed Future Issues I•Equipment Debt =Police Facility —Current Target Levy —New Debt Levy Total HUTCHINSON CITY COUNCIL ntyaf Request for Board Action7AZ =- Agenda Item: FIRST READING OF AN ORDINANCE OF THE CITY OF HUTCHINSON, MIN% Department: EDA LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of the Franklin redevelopment project the City will be selling two parcels to Hutch Uptown Commons LLC. To accomplish this, the City Council will have to adopt an ordinance authorizing the sale of municipally owned land. The first reading of the ordinance will be at the November 14th City Council meeting, with the 2nd reading and adoption on December 14th. The City Council approved the Purchase and Development Agreements with Hutch Uptown Commons, LLC earlier this year. The project will be for the construction of rental town homes on the "Old Medical Clinic" site and "Franklin House" site at the north end of Franklin Street. The Developer has indicated that construction could potentially begin in mid -summer 2022. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: First reading Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 21-827 PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF MUNICIPALLY OWNED REAL PROPERTY THE CITY OF HUTCHINSON ORDAINS: Section 1. That the municipally owned real property legally described as follows: 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 comer 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 comer 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. for good and valuable consideration is hereby transferred and conveyed to Hutch Uptown Commons, LLC, or its successor or assigns as agreed upon in the purchase agreement. Section 2. The City Administrator, Matthew Jaunich, or his designee is authorized to sign any and all documents on behalf of the City to effectuate the closing of this transaction. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this 14th day of December, 2021. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL c`=yaf Request for Board Action 7AZ Owl-7 Agenda Item: Burich Arena roof and wall upgrades - east rink Department: PRCE - Burich Arena LICENSE SECTION Meeting Date: 11/23/2021 Application Complete N/A Contact: Mary Haugen/Lynn Newna Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Facilities Committee has been working with the Engineering/Architectural firm ISG to create plans and specifications for Burich Arena - east rink roofing and exterior wall upgrades. The original intent of this process was to identify options and cost estimates for replacing the original roof, (1977). During various inspections by city staff and consultants, deficiencies in the existing cement block walls and steel wall sheeting were identified. This lead to an expansion of the scope of the project to include options to prevent further moisture infiltration and damage from occurring, especially where the roofing material transitions to the sidewalls. Over time, moisture has continued to create problems with the roof insulation and it has extended down into the sidewalls, causing failure of interior paint adhesion. This project is similar in scope and look as the recent upgrade to the Recreation Center. This project was originally scheduled for summer of 2021. With major street work happening in the area around the Arena and Recreation Center, a decision was made to replace the parking lot and Recreation Center sidewalks in 2021 and move this project to 2022. We have included basic plans and specifications that the team has created. The plans include new roofing, insulation, interior ceiling liner and covering the existing exterior walls with a new facade. We have included a bid alternate for work to upgrade interior wall panels in the spectator seating area. The committee believes that these improvements are necessary and will help protect and preserve the building envelope for the next generation. The "Probable Cost Estimate" for the project is $1,678,000. The facility fund currently has this amount reserved for this project to be completed in 2022. This number is only an estimate; current market conditions are highly variable. We believe that a bid opening date of December 23rd, with construction commencing in April, will provide a desirable project to potential bidders. For this project to move forward, your approval is requested to advertise for bids and to set a bid opening date. of December 23rd, 2021 City staff along with Contegrity Group Construction Management will be available to answer questions. BOARD ACTION REQUESTED: Request council approval to advertise for bids and set bid opening date for Burich Arena - east rink roof and exterior walls upgrade. Fiscal Impact: $ 1,678,000.00 Funding Source: Facilities fund FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 1,678,000.00 Total City Cost: $ 1,678,000.00 Funding Source: Facilities fund Remaining Cost: $ 0.00 Funding Source: Architecture Engineering Environmental Planning ISGlncmm OWNER: FROM: Hutchinson Parks, Recreation and ISG - Minneapolis West Office Community Education 6465 Wayzata Boulevard, Suite 970 900 Harrington Street St. Louis Park, Minnesota 55426 Hutchinson, Minnesota 55350 Contact: Patrick Vos Contact: Mary Haugen Phone: 952.426.0699 Phone: 320.587.2975 Email: Patrick.Vos@ISGInc.com BURIDH ARENA REROOF AND FACADE HUTCHINSON. MINNESOTA IMPROVEMENTS ISG PROJECT # 20-24450 ABBREVIATIONS _ _ s MATERIALS KEY �vnww.w TAGS AND SYMBOLS nu-m ' a (AD 1C' iw am s �. EtiFj.00.yu.on 000nn��n. 4�,,� ! �� PROJECT INDEX: OWNER: PROJECT MANAGING OFFICE: ADDRESS: I HUTCHINSON PARKS, BURICH MENA RECREATION AND COMMUNITY EII HJUJA�If.TaI9T4R'9M EDUCATION HUT[NYciOX tl01 &T+ iSY MARV HAUGEN muvrwo 900 HARRINGTON STREET ` HUTCHINSON, MINNESOTA ST]5D 320.587.2975 �BURICH ARENA REROOF AND FACADE IMPROVEMENTS TITLE SHEET, SHEETINDEX PROJECT GENERAL NOTES G7-70 6�� O am�a EXTERIOR WALL - EW 1 „a -,a �I RIRIORWALL-EW5 „rz „a (mil EXTERIOR WALL - EWl UEXTERIOR WALL - EW4 BURICN ARENA REROOF AND FACADE IMPROVEMENTS TYPICAL ASSEMBLIES T ROOF �R2 EA Al-01 SHEET NOTESI{ll�TG _ aro KEYNOLGI 14" ` O EAST DEMOLITION ELEVATI(+ { /1 N,a=ORi TH DEMOLITION ELEVATION vo - I /1 Tow WEST DEMOLITION ELEVATION BURICH ARENA REROOF AND FACADE IMPROVEMENTS Hn rave �.rem..,.�..o. 11 III I I DEMOLITION I ELEVATIONS, EVATION , .. .. .. .. .. .. -.I '!.... .. .. .. '.e .. TYPICAL ��G�� Il�u �fl�llal[Iluu ll�I !IIIIiIIE I�IBllil�i![l��l�f I,I11111�J��1 IU��II�IIIIf➢I[��f�u1 b I I[�II! _ t DEMOL SECTION TION /1SDM DEMOLITION ELEVATION A A7-77 SHEETNGTUF KEYNOTE LEGEND nl n n. &�E",OLITION�E�M BURICH ARENA REROOF AND FACADE IMPROVEMENTS DEMOLITION SECTION DOORTYPES I SHF NOTES 'Wm0'ISw61WNPR ., - rl aA- - - .I BURICH ARENA ' I - -_ REROOF AND FACADE IMPROVEMENTS /� - - . - . - . - . - - - - - . - . - . - - - - - - - - - - -_-_- _- - - - -- -- -- - - - -- - - - - -- yF L FIRST FLOOR �y I PLAN _ �1 FIRST FLOOR PLAN v va=ru A Al-21 =ILING FINISH SCHEDULE T SHEET NOTES L I I I I " BURICH ARENA REROOF AND FACADE IMPROVEMENTS I II I FI FIRST FLOOR REFLECTED CEILING PLAN �l FIRST FLOOR REFLECTED CEILING PLAN Ll ie=io SHEET NOTES Hill 11 � -%. k4 RTERIOR FINISH —E— SH= NOTES L EAST ELEVATION jo T 7.7- 7 -7-1:.-.- Z-d A (:2) NORTH �ILEVATION ORO OWEST ELEVATIOI (,D SOUTH ELEVATION BURICH ARENA REROOF AND FACADE IMPROVEMENTS ...— `izi AB iz EXTERIOR ELEVATIONS— ~ HORIZONTAL OPTION A2-1 I & ,lJIffjlNG SECTION INS KE OTELEGEND Z�7 BURICH ARENA BUILDING SECTIOM�EW REROOF AND FACADE IMPROVEMENTS ...- BUILDING SECTIONS A3-11 0 RT I "I —.oars (D%ALL =10N L�SE=N T�, (D%ALL SECTION VIA w --Ms GDAL S�TION _ WALL =10N GD, 'Ift BURICH ARENA REROOF AND FACADE IMPROVEMENT WALL SECTIONS —IF--- L =10N EA Y G) CORNER TRANSITION DETAIL G, �L.SECTION rE- I-:- E Moo" 5 Mr PLAN DETAIL BURICH ARENA REROOF AND FACADE IMPROVEMENTS ...- WALL SECTIONS A3-22 QTMNSITION �DETAI CORNERS (3) EASE DETAIL 15 �"VEF� DOOR �O�AIL 'n 07MISITION TRANSITION PIERS (11 -D "-_ 'TAll �F &r ,VE�D FAII 9 ROOF TRANSITION DETAIL al-W-1YAP ,"'L I S MR � &D �IR MEAD DETAIL BURICH ARENA REROOF AND FACADE IMPROVEMENTS DETAILS ;"m HUTCHINSON CITY COUNCIL Request for Board Action October 2021 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 11/23/2021 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 October Financial Reports for the general fund and enterprise funds. Also attached is the October 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 OCTOBER 31, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT OCTOBER YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - 2,909,687 5,442,779 2,533,092 53.5 2,740,479 5,270,910 52.0 Other Taxes 66,085 252,141 305,000 52,859 82.7 199,121 305,000 65.3 Licenses & Permits 29,216 455,805 380,300 (75,505) 119.9 475,020 388,450 122.3 Intergovernmental Revenue 324,322 1,700,422 1,716,788 16,366 99.0 1,712,853 1,730,963 99.0 Charges for Services 66,761 1,818,959 2,786,834 967,875 65.3 1,275,706 2,790,585 45.7 Miscellaneous Revenues 11,064 163,059 246,250 83,191 66.2 168,663 245,500 68.7 Transfers -In 466,798 1,400,394 2,723,191 1,322,797 51.4 1,400,394 2,666,191 52.5 Fines & Forfeitures 3,892 35,789 55,000 19,211 65.1 35,343 55,000 64.3 Capital Contributions - - 40,000 40,000 - - - - TOTAL REVENUES 968,138 8,736,257 13,696,142 4,959,885 63.8 8,007,581 13,452,599 59.5 Wages & Benefits 853,688 7,350,321 9,240,778 1,890,457 79.5 6,868,673 9,162,882 75.0 Supplies 35,621 685,206 882,622 197,416 77.6 594,553 858,150 69.3 Services & Charges 165,814 2,055,858 2,760,282 704,424 74.5 2,025,914 2,679,017 75.6 Miscellaneous Expenses 44,339 288,004 684,310 396,306 42.1 227,119 647,550 35.1 Transfers -Out 54,075 108,150 108,150 - 100.0 105,000 105,000 100.0 Capital Outlay 3,279 40,029 20,000 (20,029) 200.1 6,458 - - TOTAL EXPENDITURES 1,156,816 10,527,567 13,696,142 3,168,575 76.9 9,827,716 13,452,599 73.1 NET REVENUE (188,678) (1,791,311) - 1,791,311 (1,820,136) - REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 2021 ACTUALS OCTOBER General Fund Expense by Department YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 7,372 34,411 50,099 15,688 68.7 31,477 52,344 60.1 City Administrator 42,618 383,265 491,611 108,346 78.0 342,706 459,709 74.5 Elections - 62 - (62) - 19,186 17,750 108.1 Finance Department 20,649 299,231 382,169 82,938 78.3 290,853 381,325 76.3 Motor Vehicle 19,595 220,476 251,241 30,765 87.8 205,157 266,912 76.9 Assessing - - 61,152 61,152 - - 61,152 - Legal 19,102 236,285 321,917 85,632 73.4 224,672 317,092 70.9 Planning 13,020 127,945 164,302 36,357 77.9 122,767 161,262 76.1 Information Services 37,312 450,252 587,903 137,651 76.6 457,162 600,314 76.2 City Hall Building 19,609 165,198 190,079 24,881 86.9 132,799 178,342 74.5 Police Department 301,377 2,881,585 3,607,758 726,173 79.9 2,744,444 3,549,011 77.3 Hospital Security 24,570 255,436 328,598 73,162 77.7 247,555 332,790 74.4 Emergency Management 162 13,819 17,280 3,461 80.0 11,919 12,280 97.1 Safety Committee - 11,099 11,210 111 99.0 9,950 11,200 88.8 Fire Department 48,073 327,637 369,510 41,873 88.7 294,055 360,455 81.6 Protective Inspections 23,494 237,728 326,560 88,832 72.8 228,889 309,570 73.9 Engineering 44,623 360,207 465,890 105,683 77.3 388,212 487,309 79.7 Streets & Alleys 143,754 1,298,321 1,588,741 290,420 81.7 1,389,943 1,565,147 88.8 Park/Recreation Administration 17,514 216,097 316,616 100,519 68.3 217,184 274,158 79.2 Recreation 19,591 211,667 260,435 48,768 81.3 149,490 255,586 58.5 Senior Citizen Center 6,951 46,693 93,715 47,022 49.8 41,006 92,499 44.3 Civic Arena 30,526 219,026 373,185 154,159 58.7 232,940 374,475 62.2 Park Department 61,367 786,543 994,819 208,276 79.1 670,351 987,146 67.9 Recreation Building 15,399 154,105 248,129 94,024 62.1 136,593 245,543 55.6 Events Center 16,937 194,951 275,259 80,308 70.8 172,920 268,922 64.3 Evergreen Building 2,694 23,381 30,725 7,344 76.1 13,800 30,725 44.9 Library 2,757 161,030 222,820 61,790 72.3 198,538 222,760 89.1 Waterpark 3,491 353,156 355,833 2,677 99.2 37,737 352,761 10.7 Cemetery 15,625 117,897 138,320 20,423 85.2 117,210 132,284 88.6 Airport 5,525 113,843 131,541 17,698 86.5 98,414 124,878 78.8 Unallocated General Expense 193,110 626,221 1,038,725 412,504 60.3 599,788 966,898 62.0 TOTAL EXPENDITURES 1,156,816 10,527,567 13,696,142 3,168,575 76.9 9,827,716 13,452,599 73.1 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT OCTOBER YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 566,962 5,967,554 6,809,000 841,446 87.6 6,213,768 6,473,000 96.0 Miscellaneous Revenues 94 2,083 2,500 417 83.3 2,213 3,000 73.8 TOTAL REVENUES 567,056 5,969,637 6,811,500 841,863 87.6 6,215,981 6,476,000 96.0 Cost of Sales 396,152 4,558,552 5,159,602 601,050 88.4 4,750,693 4,871,710 97.5 Wages & Benefits 57,483 584,140 757,179 173,039 77.1 557,350 703,600 79.2 Supplies 4,205 15,708 22,600 6,892 69.5 15,261 22,600 67.5 Services & Charges 18,982 233,071 259,365 26,294 89.9 222,131 247,950 89.6 Miscellaneous Expenses - 5,738 6,700 962 85.6 5,569 6,700 83.1 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 476,822 5,403,362 6,847,"6 1,444,084 78.9 5,551,005 6,578,288 84.4 NET REVENUE 90,234 566,275 (35,946) (602,221) 664,976 (102,288) Year to Date Sales October Sales Comments 2021 2020 Change 2021 2020 Change Liquor Sales Revenue: Liquor 2,094,207 2,101,058 -0.3% 209,598 211,572 -0.9% Beer 2,924,802 3,104,061 -5.8% 261,834 273,763 -4.4% Wine 798,098 861,813 -7.4% 81,807 90,778 -9.9% Other 150,447 146,837 2.5% 13,723 12,212 12.4% Total Sales 5,967,554 6,213,768 -4.0% 566,962 588,325 -3.6% Gross Profit $1,409,001 $1,463,075 $170,810 $131,154 Gross Margin on Sales 23.6% 23.5% 30.1 % 22.3% Customer Count 203,717 210,213 -3.1% 20,066 20,866 -3.8% Average Sale per Customer $29.29 $29.56 -0.9% $28.25 $28.20 0.2% Labor to Sales Ratio 9.8% 9.0% 10.1 % 9.4% Our sales revenue comparison of 2021 to 2020 is going to look somewhat strange when we compare what I'd call stabilized pandemic revenue for 2021 to abnormally high pandemic revenue in 2020. While the October 2021 sales have decreased 3.6% from October 2020 sales, it is actually 17% higher than the October 2019 sales. It may be more beneficial to compare the 2021 sales to our 2021 budget. Through October, the year-to-date sales revenue is 8.8% higher than our budgeted revenue and the October monthly sales are 9.8% 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 OCTOBER 31, 2021 2021 ACTUALS OCTOBER YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 165,975 1,662,156 1,715,000 52,844 96.9 1,635,951 1,780,000 91.9 51,384 506,627 549,950 43,323 92.1 514,101 544,500 94.4 72,262 652,765 737,000 84,235 88.6 578,253 737,000 78.5 3,301 63,367 65,700 2,333 96.4 56,758 56,000 101.4 891 39,332 47,000 7,668 83.7 34,916 67,000 52.1 293,812 2,924,247 3,114,650 190,403 93.9 2,819,980 3,184,500 88.6 Wages & Benefits 42,422 426,689 546,882 120,193 78.0 420,846 542,656 77.6 Supplies 18,634 127,038 140,150 13,112 90.6 121,011 138,137 87.6 Services & Charges 63,527 440,708 500,950 60,242 88.0 373,797 496,350 75.3 Miscellaneous Expenses 225 1,764 15,000 13,236 11.8 1,261 15,000 8.4 Transfers -Out - - 70,000 70,000 - - 60,000 - CapitalOutlay 865,219 865,219 954,480 830,176 115.0 Depreciation Expense - 1,160,000 1,160,000 - 1,296 1,100,000 0.1 Debt Service - 1,388,056 1,465,215 77,159 94.7 1,378,117 1,485,955 92.7 TOTAL EXPENDITURES 124,807 2,384,255 4,763,416 2,379,161 50.1 3,250,806 4,668,274 69.6 NET of REVENUES & EXPENDITURES 169,005 539,992 (1,648,766) (2,188,758) (430,827) (1,483,774) Year to Date Wafer Sales Comments 2021 2020 Change Water Sales Revenue: Residential 1,133,911 1,065,466 6.4% Commercial 327,335 280,261 16.8% Industrial 200,910 290,223 -30.8% Water Sales 1,662,156 1,635,951 1.6% Base Charge 365,889 360,400 1.5% WAC Charge 82,653 90,095 -8.3% Other 58,086 63,607 -8.7% Other Sales 506,627 514,101 -1.5% The increase in 2021 water usage is primarily due to the dry summer resulting in higher lawn irrigation for residential and commercial properties. Local sales tax continues to outperform expectations, up $74,500 from last year at this time. Expenditures are down significantly from last year due to the large capital expense for the Main Street project in 2020. Wastewater Fund Sales Sales - Other Local Sales Tax Licenses & Permits Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 2021 ACTUALS OCTOBER YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 219,575 2,242,311 2,782,000 539,689 80.6 2,279,591 2,710,000 84.1 40,164 429,022 568,150 139,128 75.5 433,531 488,000 88.8 72,262 652,765 737,000 84,235 88.6 578,253 737,000 78.5 - 6,000 6,500 500 92.3 6,000 6,500 92.3 - 2,900 7,500 4,600 38.7 7,475 7,500 99.7 5,984 64,630 97,500 32,870 66.3 74,134 112,500 65.9 337,985 3,397,629 4,198,650 801,021 80.9 3,378,984 4,061,500 83.2 62,637 602,297 752,715 150,418 80.0 575,958 725,428 79.4 19,097 169,417 225,000 55,583 75.3 160,810 216,362 74.3 30,794 796,573 762,200 (34,373) 104.5 523,273 778,500 67.2 248 20,157 40,000 19,843 50.4 28,082 40,000 70.2 - - 80,000 80,000 - - 60,000 - 368,968 1,543,680 2,358,219 814,539 65.5 518,479 866,957 59.8 - - 1,125,000 1,125,000 - - 1,250,000 - 1,379,575 1,389,965 10,390 99.3 1,316,825 1,402,320 93.9 TOTAL EXPENDITURES 481,745 4,511,698 6,733,099 2,221,401 67.0 3,123,427 5,339,567 58.5 NET of REVENUES & EXPENDITURES (143,760) (1,114,070) (2,534,449) (1,420,379) 255,557 (1,278,067) Year to Date Sewer Sales Comments 2021 2020 Change Wastewater Sales Revenue: Residential 1,344,597 1,327,711 1.33T. Commercial 357,871 380,661 -6.0% Industrial - Flow 314,095 367,671 -14.6% Industrial - Violation Surcharges 225,748 203,548 10.9% Sewer Sales 2,242,311 2,279,591 -1.6% Base Charge 316,120 311,860 1.4% SAC Charge 108,629 116,121 -6.5% Other 4,273 5,550 -23.0% Other Sales 429,022 433,531 -1.0% Local sales tax continues to outperform expectations, up over $75,000 from last year at this time. Expenditures are up for 2021 due to the Headworks and SCADA capital projects and related professional services. A majority of the Headworks project is being financed by the $4,000,000 of bonds issued in August. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT OCTOBER YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 106,465 1,047,858 1,220,000 172,142 85.9 1,006,703 1,190,000 84.6 Sales - Other 3,915 31,650 49,600 17,950 63.8 34,941 47,600 73.4 Intergovernmental Revenue - 6,131 12,500 6,369 49.1 9,650 12,500 77.2 Miscellaneous Revenues 702 12,017 20,000 7,983 60.1 16,546 22,000 75.2 TOTAL REVENUES 111,081 1,097,656 1,302,100 204,444 84.3 1,067,839 1,272,100 83.9 Wages & Benefits 17,273 159,891 225,933 66,042 70.8 164,249 202,269 81.2 Supplies 1,682 26,851 64,400 37,549 41.7 47,284 61,400 77.0 Services & Charges 67,522 637,475 817,220 179,745 78.0 604,464 797,800 75.8 Miscellaneous Expenses - 215 1,000 785 21.5 19,079 1,000 1,907.9 Transfers -Out - - 55,000 55,000 - - 55,000 - CapitalOutlay 37,204 66,771 865,500 798,729 7.7 40,138 180,700 22.2 Depreciation Expense - - 162,000 162,000 - - 140,000 - TOTAL EXPENDITURES 123,681 891,203 2,191,053 1,299,850 40.7 875,214 1,438,169 60.9 NET of REVENUES & EXPENDITURES (12,600) 206,453 (888,953) (1,095,406) 192,626 (166,069) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 2021 2020 2021 ACTUALS 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT OCTOBER YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund Sales 41,771 2,570,248 2,289,000 (281,248) 112.3 2,802,970 2,367,400 118.4 Intergovernmental Revenue - - - - - - - - Charges for Services 420 12,558 70,000 57,442 17.9 12,379 87,750 14.1 Miscellaneous Revenues 954 18,082 32,000 13,918 56.5 80,399 35,000 229.7 TOTAL REVENUES 43,144 2,600,888 2,391,000 (209,888) 108.8 2,895,748 2,490,150 116.3 Cost of Sales 27,661 1,584,613 1,582,500 (2,113) 100.1 1,799,928 1,543,550 116.6 Inventory Cost Adjustment (47,246) (525,607) (674,000) (148,393) 78.0 (616,391) (654,200) 94.2 Wages & Benefits 54,531 590,229 798,104 207,875 74.0 580,118 749,909 77.4 Supplies 8,435 101,221 123,500 22,279 82.0 109,792 114,300 96.1 Services & Charges 17,290 197,518 259,000 61,482 76.3 210,901 330,900 63.7 Miscellaneous Expenses (1,050) 8,447 11,000 2,553 76.8 12,218 12,700 96.2 Transfers -Out - 110,000 110,000 - - 110,000 - Capital Outlay 224,411 376,500 152,089 59.6 454,052 567,580 80.0 Depreciation Expense - 282,500 282,500 - - 260,000 - Debt Service - 153,922 161,642 7,720 95.2 151,735 161,642 93.9 TOTAL EXPENDITURES 59,621 2,334,755 3,030,746 695,991 77.0 2,702,353 3,196,381 84.5 NET of REVENUES & EXPENDITURES (16,477) 266,133 (639,746) (905,879) 193,395 (706,231) Year to Date Sales Comments 2021 2020 Change Compost Sales Bagged 2,149,933 2,163,816 -0.6% Bulk 171,554 384,466 -55.4% Other (Freight) 248,761 254,688 -2.3% Total Sales 2,570,248 2,802,970 -8.3% Gross Profit 985,635 1,003,042 Gross Margin 38.3% 35.8% Bulk Sales Our bulk sales revenue continues to lag behind last year's level due to the lack of bitcon inventory. Creekside has contracted with a vendor to crush the current supply of concrete and asphalt this fall to provide bitcon inventory for 2022 operations. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING OCTOBER 31, 2021 Storm Water Utility Sales Sales - Other Licenses & Permits Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES Comments Capita Outlay 2021 ACTUALS OCTOBER YTD 2021 2020 2021 AVAILABLE % BDGT 2020 YTD 2020 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 83,976 835,734 1,000,000 164,266 83.6 808,253 964,735 83.8 414 759 3,500 2,741 21.7 589 3,500 16.8 335 4,205 4,800 595 87.6 6,285 4,500 139.7 - - - - - 130 - - 401 18,604 15,350 (3,254) 121.2 16,301 15,750 103.5 85,126 859,301 1,023,650 164,349 83.9 831,558 988,485 84.1 24,220 220,855 276,724 55,869 79.8 205,036 266,484 76.9 2,968 15,967 35,425 19,458 45.1 46,951 26,362 178.1 11,450 85,693 196,350 110,657 43.6 176,461 212,900 82.9 225 8,523 18,000 9,477 47.3 8,362 18,000 46.5 - 99,889 739,000 639,111 13.5 - 436,328 - - 240,000 240,000 - - 225,000 - - 167,151 225,789 58,638 93.5 149,551 209,689 70.2 38,864 598,078 1,731,288 1,133,210 34.5 586,361 1,394,763 42.0 46,262 261,224 (707,638) (968,862) 245,196 (406,278) The 2021 expenditure is for a new leaf vacuum. Oppenheimer & Co. Inc. 85 Broad Street STATEMENT OF OEPENIFMIM��k New York, 00 10004 Trans ctsBu in ACCOUNT cgjw 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 10/31 /21 09/30/21 Advantage Bank Deposits' $0.00 $374.55 $0.00 Mutual Funds 5,988,258.44 6,478,361.34 1,473.11 Government Agency Bonds 497,950.00 0.00 5,900.00 Municipal Bonds 8,063,252.00 8,099,326.15 211,270.75 Certificates of Deposit 6,315,185.53 6,332,871.71 151,993.00 C shA=UrAI Wft 8b74T 1,096,4f Total Asset Value 20,i0S 40614 $20,912.=16 '#370 G 6 tI6 Net Value of Accrued Interest $88,849.26 $68,866.56 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 FILE For the Period: 10/01/21 - 10/31/21 Last Statement: 09/30/21 Page 1 of 11 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 Advantage Bank Dep Interest $0.00 $0.16 Corporate Interest 8,666.94 154,094.69 Municipal Interest 0.00 196,288.56 Dividends 128.67 1,327.58 TOWRaaarta6la 46,>S&M ON1,710,99 PPENHEIMEK Executive Summary CITY OF HUTCHINSON report as of 1110112021 XXXXXX9707 Summary Totals Original Face $14,669,000 Current Face (Par) $14,669,000 Market Principal $15,025,930 Accrued Interest $67,724 Cash & Cash Alternatives $0 Fixed Income Funds $0 Equity Balance $0 Total Portfolio Value $15,093,654 Next 12mo Cpn Cash Flow $315,623 Generic Annual Cpn Cash Flow $370,664 Weighted Averages Coupon' 2.527 % Maturity" 1.90 yrs Duration 1.77 Yield to Worst 0.513 % Yield to Maturity 0.615 % Market Price' 102.433 Tax Lots Holdings Included 43 of 43 'Par-Wld, an else Mkt-wtd. Avg lire used Ior principal paydowns, and perpetual securities are assigned a 40 year maturity. 40% . Muni- 54.7% CD- 42.0% Agy - 3.3% 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 Fed Tax -Exempt Fed Taxable Subj to Cap Gains Subj to AMT UST/AGY/CD — PR/ETM Aaa $60,000 AAA - 40% As AA A A $40,000 Bea BBB Be 20% BB $20,000 -Be <BB NR I NR None None �,y� .ry, 0c'{;' �'{)' j'{;' �'{%'{% ��'{% d{;' d{;''{% 0% ( y� ,p 0% 20% 40% 60% 80% 100% t� O" ) Q e� �' el' O'10'LO"�ObOg060'1000oi,tiO,ti'1,ti'y,ti"�,tit,tiq,ti6,ti'1,ti0,doi,1O,1'1,y'y,y"�,lb,yq,y6,l'1,y0,loi,�00x 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 'r Includes coupon cash flows for the next 12 months, from 11/01/2021 to 10/312022. 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, from 11/012021 to 10/312022. 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 23 PPENHEIMEK Totals & Averages @ Current Market CITY OF HUTCHINSON report as of 1110112021 XXXXXX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $14,669,000 $14,669,000 43 0 43 Valid Tax Lot Holdings' includes all tax lot holdings with recognized CUSIP and quantity. Priced Original Face Value $14,669,000 Priced Current Face Value $14,669,000 Tax Lot Holdings Included 43 of 43 Priced Market Principal $15,025,930 Average Coupon 2.527% Average Market Price 102.433 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 $14,669,000 $14,669,000 $15,025,930 $67,724 $15,093,654 $0 $0 $0 $15,093,654 $315,623 $370,664 43 of 43 Portfolio Averages Coupon Maturity Duration Convexity Current Yield Yield to Worst Yield to Maturity After Tax YTW Taxable Equivalent YTW After Tax YTM Taxable Equivalent YTM Market Price 2.527% 1.90 yrs 1.77 0.057 2.467% 0.573% 0.615% 0.573% 0.573% 0.615% 0.615% 102.433 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 rioted. 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 11/01/2021 to 10/31/2022. 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, lorg'Mort first coupons, ex -dividend dates, payment delays, etc. Duration and convexity figures represent modified duration to worst. Page 4 of 23 PPENHEIMEK Totals & Averages @ Acquisition CITY OF HUTCHINSON report as of 1110112021 XXXXXX9707 Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $14,669,000 Portfolio Totals Portfolio Averages $14,669,000 Original Face Value $14,669,000 Yield to Worst (cost) 2.123% 43 Face Value at Acquisition $14,669,000 Yield to Worst (mkt) 0.573% 0 Original Principal Cost $14,802,038 Yield to Maturity (cost) 2.123% 43 Adjusted Principal Cost $14,694,719 Yield to Maturity (mkt) 0.615% Current Market Principal $15,025,930 Original Acquisition Price 100.907 Estimated Gain/(Loss) $331,211 Adjusted Cost Price 100.175 Tax Lot Holdings Included 43 of 43 Current Market Price 102.433 Valid Tax Lot Holdings' includes all tax lot holdings with recognized CUSIP and quantity. Original Face Value $14,669,000 Face Value at Acquisition $14,669,000 Tax Lot Holdings Included 43 of 43 Original Principal Cost $14,802,038 Average Acquisition Price 100.907 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 23 PPENHEIMEK Position Details CITY OF HUTCHINSON report as of 1110112021 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 227563BK8 245 xmoorx9707 4- CROSS RIV BK TEANECK N J 1.800% 100.082 Maturity 11/15/2021 -0.688% (w) -0.688% -0.688% 11/1312019 $245,000 $245,201 $201 Co 1-67% Held FDICCert#: 58410 IIIIW021 0.03 Cuff Yield - 1.799% 100.000/1.800% 100.000 $2,102 7..:v, Death Put I CRORVR I Semi -Annual Pay 34415LAN1 245 xmoorx9707 -/- FOCUS BK CHARLESTON MO 2.100% 100.146 Maturity 11/24/2021 -0.433% (w) -0.433% -0.433% 11/24/2017 $245,000 $245,358 $'b8 Co 1-67% Held FDIC Cert #: 1426 11242021 0.06 Cuff Yield - 2.097 % 100.000 / 2.100% 100.000 $2,298 m Death Put 1 FSSBKC I Semi -Annual Pay 249218AU2 290 xxxxxx9707 Aa3/- DENVER COLO PUB SCHS CTFS 2.598% 100.279 Maturity 12/15/2021 0.204% (w) 0.204% 0.204% 05/14/2020 $290,519 $290,809 $290 Muni 1.98% Held (Aay) PARTN 1211W021 0.12 Curr Yield - 2.591% 102.428 / 1.050% 100.179 $2,888 - Material Events I Federally Taxable I Make Whole Call I Extraordinary Calla I Certificate of Participation I Education I Semi -Annual Pay 8562845Z3 247 xxxxxx9707 -/- STATE BK INDIA NEW YORK N Y 2.350% 100.561 Maturity 01/26/2022 -0.087% (w) -0.087% -0.087% 05/09/2017 $247,000 $248,386 $1,386 Co 1.68% Held FDIC Cert #: 33682 01262022 0.23 Cuff Yield - 2.337% 100.00012.349% 100.000 $1,590 0.6% Death Put I Foreign I Emerging I SBIIN I Semi -Annual Pay 1 • 1 Restricted Stales: MT,OH,TX 081383Q87 430 xxxxxx9707 Al/AA BEMIDJI MINN 5.000% 101.179 Maturity 02/01/2022 0.173% (w) 0.173% 0.173% 03/18/2020 $433,750 $435,070 $1,320 Muni 2.93% Held (A1/-) 02/012022 0.24 Cuff Yield - 4.942 % 106.618 / 1.400% 100.872 $5,494 0.3% S&P Outlook Stable I General Obligation I Recreation I AGMC Insured I Semi -Annual Pay 264474GV3 1,000 xxxxxx9707 Aa2l- DULUTH MINN INDPT SCH DIST 5.000% 101.057 Maturity 02/01/2022 0.660% (w) 0.660% 0.660% 03/26/2020 $1,005,740 $1,010,570 $4,830 Muni 6.82% Held (Be it-) N0709 CTFS PARTN 02/012022 0.24 Cuff Yield - 4.948% 104.29712.600% 100.574 $12,778 0.5% Material Events I Certificate of Participation I Education I Semi -Annual Pay 38148PGX9 247 xxxxxx9707 -/- GOLDMAN SACHS BK USA 2.300% 100.798 Maturity 03/08/2022 -0.030% (w) -0.030% -0.030% 05/09/2017 $247,000 $248,971 $1,971 Co 1.68% Held FDIC Cert #: 33124 03/082022 0.34 Cuff Yield - 2.282% 100.000 / 2.299% 100.000 $872 0.8% Death Put I GS I Semi -Annual Pay 87164XPZ3 245 xxxxxx9707 -/- SYNCHRONYBANK 2.400% 101.024 Maturity 04/07/2022 -0.011%(w) -0.011% -0.011% 05/09/2017 $245,000 $247,509 $2,509 Co 1-67% Held FDIC Cert #: 27314 04/072022 0.42 Cuff Yield - 2.376 % 100.000 / 2.400% 100.000 $435 1.0% Death Put I SYF I Semi -Annual Pay I Restricted States: TX 574446GV6 500 xxxxxx9707 Aa1/- MARYSVILLE MICH PUB SCHS DIST 2.317% 100.954 Maturity 05/01/2022 0.384% (w) 0.384% 0.384 % 05/09/2017 $494,230 $504,770 $10,540 Muni 3.41% Held (AV-) 05/012022 0.49 Cuff Yield - 2.295% 98.84612.565% 98.846 $64 2.1% Material Events I Federally Taxable 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 (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 6 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 1110112021 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 64971 WJ35 500 xxx>ooc9707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 1.650% 100.693 Maturity 05/01/2022 0.247% (w) 0.247% 0.247% 05/09/2017 $497,125 $503,465 $6,340 Muni 3.41% Held (As 1/-) FIN AUTH REV 05/01/2022 0.49 Cuff Yield - 1.639% 99.425/1.771% 99.425 $46 1-3% Material Events I Federally Taxable I S&P Outlook Stable I Make Whole Call I Revenue I Government I Semi -Annual Pay 977100GU4 500 xxx>ooc9707 Aa21- WISCONSIN ST GEN FD ANNUAL 1.720% 100.763 Maturity 05/01/2022 0.175% (w) 0.175 % 0.175 % 08/26/2020 $503,255 $503,815 $560 Muni 3.41% Held (Aaw) APPROPRIATION REV 05/01/2022 0.49 Cuff Yield - 1.707% 102.208 / 0.400% 100.651 $48 0.1% Material Events I Federally Taxable I State Taxable I Make Whole Call I Pm-Rata I Revenue I Government I Semi -Annual Pay 13281 NYX4 205 xxxxxx9707 Aal/AA CAMDEN CNTY N J IMPT AUTH REV - 0.591% 100.285 Maturity 07/15/2022 0.183 % (w) 0.183 % 0.183 % 09/10/2020 $205,273 $205,584 $312 Muni 1-40% Held (Aa1/--) CROSSROADS REDEV PROJ 07/152022 0.70 Curr Yield - 0.589% 100.351 / 0.400% 100.133 $363 0.2% Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay 15721UCT4 245 xxxxxx9707 -/- CFBANK FAIRLAWN OH 3.250% 102.283 Maturity 07/19/2022 0.020% (w) 0.020% 0.020% 12/19/2018 $245,000 $250,593 $5,593 Co 1-67% Held FDIC Cert A, 28263 07/192022 0.70 Cuff Yield - 3.177 % 100.000 / 3.250% 100.000 $327 2.3% Death Put I CFBK I Monthly Pay I Restricted States: CA,PR,TN,TX 02587DV47 245 xxxxxx9707 -/- AMERICAN EXPRESS CENTURIAN BK 2.350% 101.752 Maturity 08/08/2022 0.049 % (w) 0.049 % 0.049 % 08/08/2017 $245,000 $249,292 $4,292 Co 1-67% Held CTF DEP PROGRAM BOOK ENTRY 08/082022 0.76 Cum Yield - 2.310% 100.000 / 2.350% 100.000 $1,372 1.8% FDIC Cert A, 27471 Death Put I AXP I Semi -Annual Pay I Restricted States: OH, TX 01748DAY2 245 xxxxxx9707 -/- ALLEGIANCE BK TEX HOUSTON 2.200% 102.039 Maturity 11/03/2022 0.159% (w) 0.159 % 0.159 % 11/03/2017 $245,000 $249,996 $4,996 Co 1.67% Held FDIC Cert A, 58629 11/032022 0.99 Cuff Yield - 2.156% 100.000 / 2.200% 100.000 $0 2.0% Death Put I ABTX I Monthly Pay I Restricted States: TX 254672WU8 245 xxxxxx9707 -/- DISCOVER BK 2.450% 102.372 Maturity 11/18/2022 0.169% (w) 0.169% 0.169% 05/09/2017 $245,000 $250,811 $5,811 Go 1-67% Held FDIC Cart A, 5649 11/182022 1.02 Cuff Yield - 2.393 % 100.000 / 2.450% 100.000 $2,779 2.4% Death Put; DFS I Semi -Annual Pay 214201GK5 150 xxxxxx9707 A2/- COOK CNTY ILL SCH DIST NO 0.000% 97.803 Maturity 12/01/2022 2.072% (w) 2.072% 2.072% 10/27/2020 $148,677 $146,704 ($1,972) Muni 1-02% Held (a) 089MAYWOOD 12/012022 1.07 Cuff Yield - 0.000% 98.34110.800% 99.118 $0 (1.3%) 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% 102.010 Maturity 01/17/2023 0.230 % (w) 0.230 % 0.230 % 01/17/2020 $245,000 $249,924 $4,925 Co 1-67% Held FDIC Cert A, 27389 01/172023 1.19 Curr Yield - 1.863 % 100.000 / 1.900% 100.000 $217 2.0% Death Put I WFC I Monthly 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 7 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 1110112021 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 58404DDMO 245 xxxxxx9707 -I- MEDALLION BK UTAH 2.850% 103.466 Maturity 03/06/2023 0.253% (w) 0.253% 0.253% 03/05/2019 $245,000 $253,492 $8,492 Co 1.57% Hold FDIC Cert A, 57449 03/062023 1.32 Cuff Yield - 2.755% 100.000 / 2.850% 100.000 $555 3 s% Death Put I MEDBNK I Monthly Pay I Restricted States: AL,OH,TX 149159MQ5 245 xxxxxx9707 -/- CATHAY BK LOS ANGEL CALIF 3.150% 104.469 Maturity 06/08/2023 0.337% (w) 0.337% 0.337% 06/08/2018 $245,000 $255,949 $10,949 Co 1-67% Held FDIC Cert A, 18503 06/082023 1.55 Cuff Yield - 3.015% 100.000 / 3.150 % 100.000 $3,129 4.5% Death Put I CATY I Semi -Annual Pay I Restricted States: CA, NY 856425AR4 245 xxxxxx9707 -/- STATE BANK OF LISMORE LISMORE 3.100% 104.509 Maturity 06/27/2023 0.353% (w) 0.353% 0.353% 06/27/2018 $245,000 $256,047 $11,047 Co 1.57% Held MN 06272023 1.61 Cuff Yield - 2.966% 100.00013.100% 100.000 $146 4.5% FDIC Cert#., 8190 Death Put I SBKLIS I Monthly Pay 45581EAX9 245 xxxxxx9707 -/- INDUSTRIAL & COML BK CHINA USA 3.300% 104.861 Maturity 06/30/2023 0.353% (w) 0.353% 0.353% 08/30/2018 $245,000 $256,909 $11,909 CD 1.67% Held FDIC Cert A, 24387 06/30/2023 1.62 Cuff Yield - 3.147% 100.000 / 3.300% 100.000 $89 4.9% Death Put I INDCMB I Monthly Pay I Restricted States: NON-USACCOUNTS 75472RAW1 245 xxxxxx9707 -/- RAYMOND JAMES BK NATL ASSN 1.700% 102.292 Maturity 08/14/2023 0.405% (w) 0.405% 0.405% 02/14/2020 $245,000 $250,615 $5,615 Co 1.57% Held FDIC Cert A, 33893 081142023 1.75 Cum Yield - 1.662% 100.000 / 1.700% 100.000 $924 z.­ 4 Death Put I RJF I Semi -Annual Pay 59833LAF9 245 xxxxxx9707 -/- MIDWEST INDPT BK MO 3.150% 105.079 Maturity 09/18/2023 0.428% (w) 0.428% 0.428% 09/17/2018 $245,000 $257,444 $12,444 Co 1-67% Held FDIC Cert A, 25849 09/182023 1.82 Cuff Yield - 2.998% 100.000 / 3.150% 100.000 $359 5.1% Death Put I MIDINB I Monthly Pay 61760ARSO 245 xxxxxx9707 -!- MORGAN STANLEY PRIVATE BK 3.550% 106.020 Maturity 11/08/2023 0.540% (w) 0.540% 0.540% 11/08/2018 $245,000 $259,749 $14,749 Co 1-57% Held NATL 111082023 1.93 Cuff Yield - 3.348% 100.00013.550% 100.000 $4,265 9_09, FDIC Cert A, 34221 Death Put I MS I Semi -Annual Pay 538036CZ5 245 xxxxxx9707 -!- LIVE OAK BANKING COMPANY 2.500% 104.192 Maturity 12/13/2023 0.502% (w) 0.502% 0.502% 12/13/2017 $245,000 $255,270 $10,270 Co 1.57% Held WILMINGTON NC 121132023 2.06 Cuff Yield - 2.399% 100.00012.500% 100.000 $34 4.2% FDIC Cert A, 58665 Death Put I LIVOAK I Monthly Pay 06251AV80 245 xxxxxx9707 -/- BANK HAPOALIM B M NEW YORK 3.200% 105.898 Maturity 01/23/2024 0.526%(w) 0.526% 0.526% 01/23/2019 $245,000 $259,450 $14,450 Co 1-57% Held FDIC Cert A, 33686 0123/2024 2.14 Cuff Yield - 3.022% 100.000 / 3.200% 100.000 $2,212 5.9% Death Put I Foreign I Emerging I HAPOAL I Semi -Annual Pay I Restricted Stales: MT,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 (YT149. 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 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 1110112021 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 20033AP91 245 xrzroorx9707 -/- COMENITY CAP BK UTAH 3.100% 105.790 Maturity 02/15/2024 0.549%(w) 0.549% 0.549% 02/15/2019 $245,000 $259,186 °b1.166 Co 1.67% Held FDIC Cart A, 57570 0211WO24 2.20 Cuff Yield - 2.930% 100.00013.100% 100.000 $395 ` k Death Put I ADS I Monthly Pay I Restricted Stales: OH,TX 057864AZ3 485 xmoorx9707 Aa2/AA BALDWIN CNTY ALA PUB BLDG AUTH 3.000% 105.817 Maturity 03/01/2024 0.484% (w) 0.484% 0.484% 03/20/2020 $490,437 $513,212 $2z,77b Muni 3.31% Held (A82/--) BLDG REV - JAIL PROJ 0310112024 2.25 Cuff Yield - 2.835% 101.867 / 2.500% 101.121 $2,506 4-6% 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% 105.555 Maturity 04/03/2024 0.584% (w) 0.584% 0.584% 04/03/2019 $245,000 $258,610 $13,610 Co 1.67% Held FDIC Cart A, 57565 04/03/2024 2.34 Cuff Yield - 2.747% 100.000 / 2.900% 100.000 $0 5.6% Death Put I UBS I Monthly Pay 20056UAV6 500 xxxxxx9707 -/AA COMMERCE CALIF CMNTY DEV 3.000% 105.196 Maturity 08/01/2024 1.073% (w) 1.073% 1.073% 05/09/2017 $510,590 $525,980 $15,390 Muni 3.41% Held (4A) COMMN SUCCESSOR AGY TAX 08/01/2024 2.62 Cuff Yield - 2.852% 105.319 / 2.200% 102.118 $3,833 3.0% 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 Aa1/- HONOLULU HAWAII CITY & CNTY 1.832% 102.509 Maturity 08/01/2024 0.904% (w) 0.904% 0.904% 10/30/2019 $996,000 $1,025,090 $29,090 Muni 6.82% Held (As 1/-) 08/01/2024 2.67 Cuff Yield - 1.787% 99.600 / 1.920 % 99.600 $4,682 2.9% Material Events I Federally Taxable I Make Whole Call I General Obligation I Government I Semi -Annual Pay 20772,13,19 570 xxxxxx9707 Aa3/A+ CONNECTICUT ST 2.400% 103.990 Maturity 08/15/2024 0.944% (w) 0.944% 0.944% 07/11/2019 $568,906 $592,743 $23,837 Muni 3.89% Held (AaV--) 0811WO24 2.68 Cuff Yield - 2.308% 99.808/2.440% 99.808 $2,964 42% Material Events I Federally Taxable I S&P Outlook Stable I General Obligation I Government I Semi -Annual Pay 64971QJ38 500 xxxxxx9707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 2.600% 101.847 Next Call 11/01/2022 0.732% (w) 0.732% 0.732% 05/09/2017 $486,750 $509,235 $22,485 Muni 3.41% Held (As 1/-) FIN AUTH REV 1110112024 0.98 Maturity 11/01/2024 1.962% 1.962% 1.962% 97.35012.998% 97.350 $72 4.6% Cuff Yield - 2.553% Material Events I Federally Taxable I S&P Outlook Stable I Callable I Revenue I Government I Semi -Annual Pay 287299MR9 150 xxxxxx9707 -/AA+ ELK GROVE VILLAGE ILL 1.000% 99.695 Maturity 01/01/2025 1.098% (w) 1.098% 1.098% 11/01/2021 $150,000 $149,542 ($458) Muni 1.02% Held (a) 01/01/2025 3.09 Cuff Yield - 1.003% 100.000/1.000% 100.000 $396 (0.3%) Federally Taxable I Stale Taxable I S&P Outlook Stable I Short First Coupon I General Obligation I Government I Semi -Annual Pay 696583GV9 460 xxxxxx9707 Aal/AAA PALM BEACH FLA REV 2.500% 104.570 Maturity 01/01/2025 1.027% (w) 1.027% 1.027% 01/08/2020 $466,297 $481,022 $14,725 Muni 3.14% Held (As1/--) 01/01/2025 3.02 Cuff Yield - 2.391% 102.12012.050% 101.369 $3,897 3.2% Material Events I Federally Taxable I S&P Outlook Stable I Revenue I Government I Semi -Annual Pay Includes all tax lot holdings with recognized CUSIP. Forpreferred securities, # of shares 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 9 of 23 PPENHEIMEK Position Details (continued...) CITY OF HUTCHINSON report as of 1110112021 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 59013KFJO 245 xmooa9707 -/- MERRICK BK SOUTH JORDAN UTAH 1.800% 103.334 Maturity 01/31/2025 0.760% (w) 0.760% 0.760% 01/31/2020 $245,000 $253,168 �8 ite Co 1.57% Held FDIC Cart A, 34519 01/312025 3.15 Cum Yield - 1.742% 100.000 / 1.800% 100.000 $36 r . n Death Put I MERICK I Monthly Pay I Restricted States: OH,TX 16166NCL7 300 xmooa9707 -/AA- CHASKA MINN ECONOMIC DEV 3.430% 105.869 Maturity 02/01/2025 1.567% (w) 1.567% 1.567% 02/03/2020 $315,336 $317,607 $2,271 Muni 2.05% Held AUTHLEASE REV 02/012025 3.06 Cuff Yield - 3.240% 107.752 / 1.800% 105.112 $2,630 ` I 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 % 102.961 Maturity 03/26/2025 0.766% (w) 0.766% 0.766% 03/26/2020 $245,000 $252,254 $7,254 Co 1.57% Held FDIC Cart A, 35546 03/262025 3.30 Cuff Yield - 1.603% 100.000 / 1.650% 100.000 $89 3.0% Death Put I BOR I Monthly Pay 29278TMJ6 245 xxxxxx9707 -/- ENERBANK USA UT 2.000% 104.723 Maturity 10/31/2025 0.798% (w) 0.798% 0.798% 10/31/2019 $245,000 $266,671 $11,571 Co 1.57% Held FDIC Cart A, 57293 10/312025 3.84 Cuff Yield - 1.910% 100.000 / 2.000% 100.000 $40 4.7% Death Put I CMS I Monthly Pay I Restricted Stales: OH,TX 032879UV8 500 xxxxxx9707 -/AA ANCHOR BAY MICH SCH DIST 1.250% 99.515 Maturity 05/0172026 1.362% (w) 1.362 % 1.362 % 07/16/2020 $502,835 $497,575 ($5,260) Muni 3.41% Held (-/-) 05101/2026 4.35 Cuff Yield - 1.256% 100.726/1.120% 100.567 $35 (1.0%) Material Events I Federally Taxable I S&P Outlook Stable I General Obligation I Education I Semi -Annual Pay 89235MLD1 245 xxxxxx9707 -/- TOYOTA FINL SVGS BK HEND NV 0.950% 99.767 Maturity 07/22/2026 1.001%(w) 1.001% 1,001% 07/22/2021 $245,000 $244,429 ($571) Co 1.57% Held FDIC Cart A, 57542 07222026 4.59 Cuff Yield - 0.952% 100.000 / 0.950% 100.000 $663 (0.2%) Death Put I TOYFBN I Semi -Annual Pay I Restricted States: OH,TX 3130APC45 500 xxxxxx9707 Aaa/AA+ FEDERAL HOME LOAN BANKS 1.180% 99.590 Next Call 11/26/2021 7.359% 7.359% 7.359% 10/26/2021 $500,000 $497,950 ($2,050) Agy 3.41% Held 10262026 4.82 Maturity Cuff Yield 10/26/2026 - 1.265% (w) 1A85% 1.265% 1.265% 100.000/1.180% 100.000 $98 (0.4%) Moody's Outlook Stable I S&P Outlook Stable I Callable I FHLB 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 10 of 23 r ppENF EIMEk Coupon Cash Flow - Year 1 CITY OF HUTCHINSON report as of 1110112021 XXXXXX9707 Nov'21 Dec'21 Jan'22 Feb'22 Mal'22 Apr'22 May'22 Jun'22 Jul'22 Aug'22 Sep'22 Agency $2,950 Agency Pass-Thru - Asset -Backed - - - - - - CD $19,238 $10,681 $15,064 $11,894 $9,272 $9,919 $14,101 $10,835 $11,854 $11,257 $6,311 CMO - - - - - - - - - - - Corporate - - - - - - - Muni: Fed Tax $23,842 $3,767 $6,993 $28,645 - $23,842 $7,106 $28,645 - Muni: Tax -Exempt - - - $35,750 $7,275 - - - $7,275 Muni: Subj AMT - - - Pfd: Fed Tax Pfd: Tax -Exempt Pfd: Cap Gains Treasury - - - - - - - - - Total $43,081 $14,448 $22,057 $76,289 $16,547 $12,869 $37,944 $10,835 $18,959 $39,902 $13,586 Fed Tax -Exempt - - - $35,750 $7,275 - - - - - $7,275 Fed Taxable $43,081 $14,448 $22,057 $40,539 $9,272 $12,869 $37,944 $10,835 $18,959 $39,902 $6,311 Subj to Cap Gains - - - - - - - - - - - Subj to AMT Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Subj to AMT $60,000 $40,000 Oct'22 42v22 Total %Tot $2,950 $5,900 1.9 $6,157 $136,582 43.3% $122,841 38.9 $50,300 15.9 $9,107 $315,623100.0% - $50,300 15.9 $9,107 $265,323 84.1% $20,000 ■M■ N W M■MMEM � $0 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'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 11/01/2021 to 10/31/2022. 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 23 PPENHEIMEK Maturity & Duration - All CITY OF HUTCHINSON report as of 1110112021 XXXXXX9707 40% o e X 20% ry 0 m o � 0% ' I ti1P S, ���gyp ab §5 "q 'b-,p°°'ry°b" b°'°p°'ti°ryoy�c'e� Qe 9 40% d� v 20% m 0% I o� oti o� o° o+' o° 01 0� o° ti° ti~ 4 ti� tia tih tib tit ti� ti°j ti° ti~ titi ti� tia tih tib tit y° ti°' '�° o' °o °ti °ti °^i °Dr oh °H °1' °0 °°' ,tio ,titi ,titi ,ti'N tia tih' ,tiH ,tit ,ti0 ,tioi' .yo' .yti .yti .y^i tia tih' ,Lki ,L1 ,L0 ,y°' 'S 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 psydowns, and perpetual securities are assigned a 40 year maturity. Duration figure represents modified duration to worst. Year Curr Face % Mkt Principal % Range Curr Face % Mkt Principal % 2021 $780,000 5.32% $781,368 5.20% 00-01 $5,889,000 40.15% $5,948,623 39.59% 2022 $5,004,000 34.11% $5,055,537 33.65% 01-02 $2,355,000 16.05% $2,437,646 16.22% 2023 $2,205,000 15.03% $2,295,400 15.28% 02-03 $3,535,000 24.10% $3,689,541 24.55% 2024 $3,790,000 25.84% $3,943,506 26.24% 03-04 $1,645,000 11.21% $1,710,166 11.38% 2025 $1,645,000 11.21% $1,710,166 11.38% 04-05 $1,245,000 8.49% $1,239,954 8.25% 2026 $1,245,000 8.49% $1,239,954 8.25% 05-06 2027 - 06-07 2028 I 07-OB 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 t 2038 17-18 2039 18-19 4 2040 19-20 2041 20-21 4 2042 21-22 ` 2043 22-23 4 2044 23-24 2045 24-25 2046 25-26 + 2047 26-27 2048 27-28 2049 28-29 2050 29-30 r 2051+ 30+ Perpetual I I Page 12 of 23