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cp07-10-2012 cCouncil Workshop — Review of 2011 Audit- 4: 00 p. m. AGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, JULY 10, 2012 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Hutchinson Evangelical Free Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF JUNE 26, 2012 Action — Motion to approve as presented 7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise ave een a egate tot e Ciry Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14027 — RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2012 CITY OF HUTCHINSON AND STATE PRIMARY AND GENERAL ELECTIONS 2. RESOLUTION NO. 14028 - RESOLUTION SETTING INCOME GUIDELINES FOR DEFERRED ASSESSMENTS 3. ORDINANCE NO. 12 -0691 — AN ORDINANCE AMENDING CHAPTER 31 OF THE HUTCHINSON CITY CODE PERTAINING TO BOARDS AND COMMISSIONS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JULY 10, 2012) 4. ORDINANCE NO. 12 -0690 - AN AMENDMENT TO THE ZONING ORDINANCE SECTION 154.064(C) AND SECTION 154.004 ALLOWING DOG DAYCARE BY CONDITIONAL USE PERMIT IN THE C -4 (FRINGE COMMERCIAL DISTRICT) AND ADDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 REQUESTED BY ADULT TRAINING AND HABILITATION CENTER, PROPERTY OWNER (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 12 -0689 - AN AMENDMENT TO THE ZONING ORDINANCE SECTION 154.063(C) ALLOWING TATOO ESTABLISHMENTS BY CONDITIONAL USE PERMIT IN THE C -3 (CENTRAL COMMERCIAL DISTRICT) REQUESTED BY DOUGLAS MOULTON, APPLICANT (SECOND READING AND ADOPTION) (b) CONSIDERATION FOR APPROVAL OF ISSUING SHORT -TERM 3.2 MALT LIQUOR LICENSE TO MCLEOD COUNTY AGRICULTURAL ASSOCIATION ON AUGUST 15 — 19, 2012, FOR THE CITY COUNCIL AGENDA —JULY 10, 2012 MCLEOD COUNTY FAIR (c) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO ST. ANASTASIA CATHOLIC CHURCH ON SEPTEMBER 8 & 9, 2012 (d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS AND SUPPLEMENTAL AGREEMENTS - CHANGE ORDER NO. 5 —LETTING NO. 1, PROJECT NO. 11 -02 (SCHOOL ROAD NW) - CHANGE ORDER NO. 3 —LETTING NO. 3, PROJECT NO. 11 -04 (2011 PAVEMENT MANAGEMENT PROGRAM -PHASE 1) (e) CONSIDERATION FOR APPROVAL OF CITY /SCHOOL DISTRICT AGREEMENTS - AGREEMENT RELATING TO THE ESTABLISHMENT AND OPERATION OFA JOINTLY SPONSORED PARKS, RECREATION AND COMMUNITY EDUCATION PROGRAM - AGREEMENT RELATING TO THE ESTABLISHMENT AND OPERATION OF A JOINTLY SPONSORED GROUNDS MAINTENANCE PROGRAM - AGREEMENT RELATING TO USE OF FACILITIES - LEASE AGREEMENT WITH PARK ELEMENTARY (fl CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Action — Motion to approve consent agenda 8. PUBLIC HEARINGS — 6:00 P.M. (a) LES KOUBA PARKWAY IMPROVMENTS PHASE 2 PROJECT — LETTING NO. 8, PROJECTNO. 12- 09 Action — Motion to reject — Motion to approve 9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose: to provide Council with information necessary to cra t wise po icy. A ways looking towar t e uture, not monitoring past) 10. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF UPPER MIDWEST ALLIS CHALMERS CLUB EVENT SIGNAGE REQUEST Action — Motion to reject — Motion to approve 11. NEW BUSINESS (a) SUMMARY REVIEW OF 2011 AUDITED FINANCIAL STATEMENTS Action — (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14029 - A RESOLUTION APROVING AND AGREEING TO ENTER INTO AN ADMINISTRATIVE CONTRACT WITH THE HUTCHINSON HRA FOR THE SCDP NORTHEAST NEIGHBORHOOD AND SW NEIGHBORHOOD HOUSING REHABILITATION PROJECT FOR CDAP -11- 0023 -0 -FY 12 AND APPROVALF OF PROCEDURAL GUIDELINES FOR SCDP OWNER OCCUPIED HOUSING REHABILITATION PROGRAM FOR THE NORTHEAST NEIGHBORHOOD AND SW NEIGHBORHOOD AND APPROVAL OF CITY OF HUTCHINSON SECTION 3 PLAN RELATING TO THE SCDP GRANT CDAP -11- 0023 -0 -FY 12 AND CITY COUNCIL AGENDA —JULY 10, 2012 APPROVAL OF EXECUTION OF SMALL CITIES DEVELOPMENT PROGRAM GRANT AGREEMENT CDAP -11- 0023 -O -FY 12 Action — Motion to reject — Motion to approve (c)CONSIDERATION FOR APPROVAL OF CITY OF HUTCHINSON NETWORK SECURITY POLICY Action — Motion to reject — Motion to approve (d) CONSIDERATION FOR APPROVAL OF CRIMINAL JUSTICE INFORMATION SERVICES SECURITY POLICY Action — Motion to reject — Motion to approve (e) DISCUSSION OF REGULATING BODY ART Action — (fl CONSIDERATION FOR APPROVAL OF RE- SETTING AUGUST 14, 2012, CITY COUNCIL MEETING DUE TO 2012 PRIMARY ELECTION Action — Motion to reject — Motion to approve 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy thatguides the organization and Councie the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a) HUTCHINSON UTILITIES COMMISSION MINUTES FROM MAY 30, 2012 (b) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM MAY 15, 2012 (c) FIRE DEPARTMENT MONTHLY REPORT FOR JUNE 2012 13. MISCELLANEOUS 14. ADJOURN MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, JUNE 26, 2012 1. CALL TO ORDER — 5:30 P.M. Mayor teve oo ca e t meeting to order. Members present were Mary Christensen, Bill Arndt, Eric Yost and Chad C e zmowski. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. 2. INVOCATION — Rev. Pasche, Peace Lutheran Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS. DONATIONS AND COMMUNITY SERVICE TO THE CITY Mayor Cook recognized 3M on their 65`h anniversary in the City of Hutchinson. The grand opening of Crow River Winery and the Jaycee Water Carnival were also recognized. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF JUNE 12, 2012 Motion by Christensen, second by Arndt, to approve the minutes as presented. Motion carried unanimously. 7. CONSENT AGENDA (Purpose: onlyfor items requiring Council approval by external entities that would otherwise ave een e egate tot e City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14015 — A RESOLUTION GRANTING APPROVAL TO CHANGE STREET NAME FROM EAU CLAIRE STREET SE TO EAU CLAIRE AVENUE SE LOCATED IN THE SUMMERSET SECOND ADDITION PLAT 2. ORDINANCE NO. 12 -0691 — AN ORDINANCE AMENDING CHAPTER 31 OF THE HUTCHINSON CITY CODE PERTAINING TO BOARDS AND COMMISSIONS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JULY 10, 2012) 3. ORDINANCE NO. 12 -0692 — AN ORDINANCE AMENDING CHAPTERS OF THE HUTCHINSON CITY CODE PERTAINING TO DELEGATION OF ISSUING LICENSES AND PERMITS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JULY 10, 2012) (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF A ONE -LOT PRELIMINARY AND FINAL PLAT OF LYNAUGH'S NORTHVIEW ADDITION SUBMITTED BY MATT AND TERRI LYNAUGH, PROPERTY OWNERS, WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14018) (ko-) CITY COUNCIL MINUTES —JUNE 26, 2012 2. CONSIDERATION OF AN AMENDMENT TO THE ZONING ORDINANCE SECTION 154.064(C) AND SECTION 154.004 ALLOWING DOG DAYCARE BY CONDITIONAL USE PERMIT IN THE C -4 (FRINGE COMMERCIAL DISTRICT) AND ADDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 REQUESTED BY ADULT TRAINING AND HABILITATION CENTER, PROPERTY OWNER, WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 12 -0690 FOR JULY 10, 2012) CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF A 578 SQUARE FOOT ADDITION TO AN EXISTING 581 SQUARE FOOT DETACHED GARAGE LOCATED AT 529 MONROE STREET SE FOR A TOTAL GARAGE AREA OF 1159 SQUARE FEET REQUESTED BY ROGER JOHNSON, APPLICANT, WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14020) 4. CONSIDERATION OF A CONDITIONAL USE PERMIT REQUESTED BY THE EDA TO ALLOW CONSTRUCTION OF A FARMERS MARKET STRUCTURE AND TO RELOCATE THE DEPOT IN THE I/C DISTRICT AT 25 ADAMS STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 1402 1) (c) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS AND SUPPLEMENTAL AGREEMENTS (d) CONSIDERATION FOR APPROVAL OF ITEMS FOR LES KOUBA PARKWAY IMPROVEMENTS PHASE 2 PROJECT (LETTING NO. 8, PROJECT NO. 12 -09) (e) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO HUTCHINSON HOCKEY ASSOCIATION ON OCTOBER 20, 2012, AT HUTCHINSON CIVIC ARENA (f) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO SUSTAINABLE FARMING ASSOCIATION FOR THE MINNESOTA GARLIC FESTIVAL ON AUGUST 11, 2012, AT MCLEOD COUNTY FAIRGROUNDS (g) CONSIDERATION FOR APPROVAL OF ISSUING SHORT TERM 3.2 MALT LIQUOR LICENSE TO NATIONAL ALLIANCE ON MENTAL ILLNESS AT THE MCLEOD COUNTY FAIRGROUNDS ON SEPTEMBER 22, 2012 (h) CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSES - GERALD BREYER TO SELL FIREWORKS IN HUTCHINSON MALL PARKING LOT FROM JUNE 27 — JULY 5, 2012 - KEITH HEIKES OF FACTORY DIRECT TO HOLD FURNITURE SALE IN HUTCHINSON MALL PARKING LOT FROM JULY 25 — AUGUST 5, 2012 - RAFAEL JIMENEZ TO OPERATE AN ICE CREAM TRUCK THROUGHOUT CITY STREETS (i) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 7(a)1, 7(a)3, 7(b)2, 7(b)3 and 7(d) were pulled for separate discussion. CITY COUNCIL MINUTES — JUNE 26, 2012 Motion by Czmowski, second by Yost, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. 7(a)l had further discussion. Council Member Christensen asked the reasoning for renaming the street from Eau Claire Street SE to Eau Claire Avenue. Dan Jochum, Planning Director, explained that streets are north/south and avenues are east/west. This roadway runs east/west. It was noted that the plat was incorrect but the street signage is correct. Motion by Christensen, second by Arndt, to approve Item 7(a)1. Motion carried unanimously. Item 7(a)3 had further discussion. Mayor Cook suggested reviewing all licensing ordinances notjust related to delegation but rather overall revisions. Mayor Cook voiced he wants to ensure that items are followed through and consistent. Motion by Czmowski, second by Christensen to table Item 7(a)3. Motion carried unanimously. Item 7(b)2 had further discussion. Mayor Cook asked about the "daytime hours" language in the ordinance. He suggested perhaps having structured hours listed since "daytime hours" could vary. Dan Jochum, Planning Director, noted setting specific hours would be acceptable. The main notion was to indicate that this ordinance does not pertain to overnight care. Council Member Arndt asked about the difference between the animal shelter on the south end of town and the proposed dog daycare. Mr. Jochum explained that the zoning districts are different from each other which allows for different uses. The applicant, Jason Telander, presented before the Council. Mr. Telander explained that the main purpose of the application is to allow therapeutic resources for ATHC's clients in caring for dogs. Mayor Cook suggested adding language such as "no overnight stays ". Mr. Jochum explained that allowing overnight stays would get more into a kennel or boarding -type situation. If more requests come forward for more extended hours, the Council could consider amending the ordinance. Kennels are currently allowed in 11 and 12 districts. Motion by Arndt, second by Christensen, to approve first reading of Ordinance No. 12 -0690, amending language to read "no overnight stays ". Motion carried unanimously. Item 7(b)3 had further discussion. Mayor Cook suggested it would be helpful to add language stating the small older garage would be removed upon construction of the new garage. This language will be added to the conditions on the Conditional Use Permit. Motion by Yost, second by Cook, to approve Item 7(b)3 with the additional language that the old garage will be removed following construction of the new garage. Motion carried unanimously. Roger Johnson, 529 Monroe Street, presented before the Council. Mr. Johnson noted that he is attempting to construct an attached garage to the home and will demolish the current older garage on the property. Item 7(d) had further discussion. Council Member Yost asked why improvements are being made on Les Kouba Parkway at this time when it is low on the priority list. Kent Exner, City Engineer, noted that these improvements may fit well with current projects and was suggested from the Resource Allocation Committee. An alternative funding source may be available to help support the project. This project has been on the improvement list for the last several years and has been removed each time. Motion by Arndt, second by Christensen, to approve Item 7(d). Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. (a) CONSIDERATION OF COMMENTS AND INPUT ON THE STORM WATER POLLUTION PREVENTION PLAN (SWPPP) FOR THE CITY OF HUTCHINSON � Ca) CITY COUNCIL MINUTES — JUNE 26, 2012 John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson explained that the MPCA requires that the City have a public hearing and consider comments prior to submitting the Storm Water Pollution Prevention Plan (SWPPP) Annual Report for 2011. All cities that maintain a municipal separate storm sewer system must meet this requirement. Mr. Paulson briefly reviewed the various pieces that make up the SWPPP. Motion by Yost, second by Arndt, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Yost, to approve SWPPP for the City of Hutchinson. Motion carried unanimously. 9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. A ways looking toward t e uture, not monitoring past) (a) UPDATE BY CITY OF HUTCHINSON FACILITIES COMMITTEE Dan Jochum, Planning Director, and John Paulson, Environmental Specialist, presented before the Council. Mr. Jochum provided an update on the Facilities Plan, including a list of projects by priority ranking, a list of projects by proposed completion year and the funding plan. Mr. Jochum provided an overview on the various work the Facilities Committee completed on establishing the Plan. This included a condition index system and a project ranking system. The projects were then scheduled a completion year based on this information. Mr. Jochum reviewed the projects scheduled for 2012 and 2013. For 2012, the projects scheduled include the east rink roof, Event Center roof, Library roof, City Center VAV boxes, Cemetery roof, Civic Arena sidewalk, east rink front doors and senior dining sidewalk with a total project cost of $445,175. The projects scheduled for 2013 include the park garage, City Center carpet, senior dining parking lot and Recreation Center air handlers with a total project cost of $557,660. These projects and those scheduled further into the future will be included in the capital improvement plan. Mary Haugen, PRCE Facilities Manager, spoke of the east rink roof and the repairs that it needs. Council Member Czmowski voiced that by following this plan, and putting the funds into these projects, it puts a fork in the City- School District Committee's work on crafting a master plan for some of these facilities' replacement. Staff and the Committee have discussed keeping in mind Joint efforts with the school district. Mayor Cook suggested bringing the City's facilities plan to the City- School District Joint Facilities Committee to see if there are opportunities available. (b) DISCUSSION AND REVIEW OF PROPOSED FIVE -YEAR CAPITAL IMPROVEMENT PLAN Jeremy Carter, City Administrator, presented before the Council. Mr. Carter reviewed summary reports for the five -year capital improvement plan. The capital improvement plan is meant to be a guide for Council and management but does not give authorization for the projects until formally approved based on purchasing authorization thresholds. The five -year capital improvement plan gets updated on an annual basis. Some projects get pushed back to later years, some projects drop off and some projects move up years depending on priorities. Council Member Yost spoke of the priority listings listed on the plan. Mr. Carter explained that regardless of the scheduled year, the priority ranking should truly reflect the priority of the project. 10. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF DOWNTOWN ACTION PLAN CONTRACT WITH HOISINGTON KOEGLER GROUP INC. Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that this item was tabled at the last Council meeting to allow for some revisions to be made to the agreement with the consultant. The purpose of the plan is to continue the revitalization efforts that have been occurring downtown and develop a plan to shape the future of downtown and the river corridor in Hutchinson. It is proposed that the EDA would fund half of the project and the City would look at some partnership opportunities to fund the other half of the project. The goal of this project is to spur the economy and create ka-) CITY COUNCIL MINUTES — JUNE 26, 2012 more growth opportunity. General discussion was held regarding how the reconstruction of Hwy 15 could affect the downtown plan. Motion by Czmowski, second by Yost, to approve downtown action plan contract with Hoisington Koegler Group, Inc. Motion carried unanimously. 11. NEW BUSINESS (a) CONSIDERATION OF AN AMENDMENT TO THE ZONING ORDINANCE SECTION 154.063(C) ALLOWING TATOO ESTABLISHMENTS BY CONDITIONAL USE PERMIT IN THE C -3 (CENTRAL COMMERCIAL DISTRICT) REQUESTED BY DOUGLAS MOULTON, APPLICANT, WITH PLANNING COMMISSION SPLIT VOTE (4 -1) (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 12 -0689 FOR JULY 10, 2012) Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained the discussions held by the Planning Commission and staff pertaining to tattoo establishments. Mr. Jochum noted that tattoo establishments are currently allowed in the 1 -1, I -2 and C -4 districts. The C -3 district includes the downtown area. C -4 is general commercial, such as near the mall on Hwy 15 South or Hwy 7 West. Mayor Cook noted that salons and other service establishments are allowed downtown and he expressed that he doesn't feel that tattoo establishments should be treated any differently from them. Mayor Cook did mention that the City's tattoo ordinance needs to be updated, however it doesn't pertain to the zoning portion of tattoo establishments. Council Member Arndt expressed that he does not wish to have tattoo establishments allowed in the downtown area. Motion by Czmowski, second by Christensen, to waive first reading and set second reading and adoption for July 10, 2012. Roll call vote: Christensen — aye; Arndt — nay; Yost — aye; Czmowski — aye; Cook — aye. Motion carried 4 to 1. (b) CONSIDERATION OF A VARIANCE TO REDUCE FRONT AND SIDE YARD SETBACK TO ALLOW CONSTRUCTION OF AN ATTACHED GARAGE ADDITION AT 529 MONROE STREET SE REQUESTED BY ROGER JOHNSON, APPLICANT, WITH UNFAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14019) Dan Jochum, Planning Director, presented before the Council. Mr. Jochum noted that the Planning Commission denied this request due to the request not meeting the State's definition of practicable difficulties. The Planning Commission and staff both expressed that there are options available for the applicant to construct a garage without reducing the setbacks. Roger Johnson, applicant, presented before the Council. Mr. Johnson asked if any discussion had been held regarding the language difference between R -1 and R -2 districts. This language addresses averages of front yard setback percentages. Mr. Johnson provided information about percentages of the front yard setback in R -1 and it is not addressed at all in R -2 districts. Mr. Johnson requested that he would remain at 6 feet on the sideyard setback but requested that the front yard setback would allow for 23 feet. Mr. Jochum noted that these issues are two separate items and if Mr. Johnson's interpretation is correct, a variance would not be required, but could rather be allowed through staff action via the City code (154.023). Motion by Czmowski, second by Christensen, to approve Resolution No. 14019 denying the variance application. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF TRUNK HWY 15 RETAINING WALL RECONSTRUCTION ENGINEERING SERVICES AMENDMENT (LETTING NO. 5, PROJECT NO. 12 -06) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that Mn/DOT has allocated up to $200,000 for the construction of the Hwy 15 retaining wall project. Due to a more detailed, 6(a-) CITY COUNCIL MINUTES —JUNE 26, 2012 comprehensive project, additional engineering services are required to complete the project in a manner that meets Mn/DOT's and the City's expectations. Therefore, the original design fee of $26,600 has increased to $53,700. The Resource Allocation Committee has reviewed the proposed design fee increase and the general consensus was that it seemed to be appropriate and acceptable. They additional fees are due to additional project work pertaining to the expansion of the intersection radii at 5` Avenue and Main Street to accommodate truck turning movements and stripping options; developing plans and specifications for lighting improvements on the west side of Main Street from 4 Avenue to 5` Avenue; temporary easements; developing design and plans for reconstruction of Wall B; Retaining Wall A scope changes; existing service line review and hydraulic analysis of runoff volume and corresponding spread on Main Street. Motion by Yost, second by Cook, to approve Trunk Hwy 15 Retaining Wall Reconstruction Engineering Services Amendment. Motion carried unanimously. (d) CONSIDERATION OF ORDINANCE NO. 12 -0684 - AN ORDINANCE AMENDING CHAPTER 52 (WATER) OF THE CITY OF HUTCHINSON CODE OF ORDINANCES ADDING LANGUAGE IN SECTION 52.12 AND 52.13; CONNECTION REQUIRED AND PRIVATE WELLS FOR DOMESTIC USE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION AND PUBLIC HEARING FOR JULY 24, 2012) Kent Exner, City Engineer, presented before the Council. Mr. Exner asked that a public hearing be set for July 24, 2012, to review details of the ordinance. Mr. Exner pointed out basic additions to the proposed ordinance in Section 52.13. Mayor Cook suggested that the approval of private wells come forward to the Planning Commission or the City Council as opposed to a decision made by the City Engineer. Mr. Exner and John Paulson both noted that an applicant always has the option to come to the Council should the decision not be favorable to them. The ordinance also addresses a connection requirement to city water utilities. Motion by Czmowski, second by Arndt, to waive first reading and set second reading and adoption and public hearing of Ordinance No. 12 -0684 for July 24, 2012. Motion carried unanimously. (e) CONSIDERATION OF ORDINANCE NO. 12 -0685 - AN ORDINANCE AMENDING CHAPTER 92 (NUISANCES; HEALTH AND SANITATION) OF THE CITY OF HUTCHINSON CODE OF ORDINANCES ADDING LANGUAGE IN 92.5; THE USE OF COAL TAR -BASED SEALER PRODUCTS WITHIN THE CITY OF HUTCHINSON (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION AND PUBLIC HEARING FOR JULY 24, 2012) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that this ordinance pertains to adding language to Chapter 92 prohibiting the use of undiluted coal tar based sealer products. John Paulson, Environmental Specialist, explained that extensive studies have been conducted by State and Federal agencies and have found that undiluted coal tar contain polycyclic aromatic hydrocarbons that do not break down. In 2009, the Minnesota legislature enacted a ban on coal tar -based sealcoats used by State agencies starting July 1, 2010. Some large national retailers no longer sell undiluted coal tar sealers and others do not carry the product in large volumes. The local commercial sealing applicator has communicated that they will transition voluntarily to asphalt based sealers this spring in light of the results of recent PAH studies. Motion by Christensen, second by Yost, to waive first reading and set second reading and adoption and public hearing of Ordinance No. 12 -0685 for July 24, 2012. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF CITY OF HUTCHINSON POLICY 1.23- MANAGEMENT 4(a) CITY COUNCIL MINUTES — JUNE 26, 2012 INFORMATION SYSTEMS AND CONSIDERATION FOR APPROVAL OF ABOLISHING CITY OF HUTCHINSON POLICIES 1.17- ORGANIZATIONS - REQUESTS AND 1.21 -PETS WITHIN VETERANS MEMORIAL BASEBALL FIELD; Jeremy Carter, City Administrator, presented before the Council. Mr. Carter explained that Policy No. 1.23 has minor revisions pertaining to the IT Director language amendments as opposed to an IT Coordinator and IT Committee. Mr. Carter clarified that the IT policy itself is reviewed on an annual basis. Mr. Carter is recommending that Policy Nos. 1.17 and 1.21 be abolished from the City's record. These policies no longer pertain to City practice. Motion by Czmowski, second by Yost, to approve Policy 1.23 and abolish Policy 1.17 and Policy 1.21. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14022 — A RESOLUTION RELATING TO PUBLIC UTILITY REVENUE REFUNDING BONDS, SERIES 2012A; APPROVING THE AMENDMENT TO RESOLUTION NO. 13996 RELATED THERETO Jeremy Carter, City Administrator, noted that this item amends Resolution No. 13996 which amends the $1,000,000 threshold of net value savings. Instead, the net value savings of not less than $700,000 will be revised in the Resolution. Bruce Kimmel, Ehlers & Associates, explained that this is an opportunistic refunding and not a necessary refinancing. Therefore, a savings of $700,000 is still a healthy savings. Motion by Arndt, second by Yost, to approve Resolution No. 14022. Motion carried unanimously. Item 13(b) was considered at this time. See minutes below. (h) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP FOR JULY 10, 2012, TO REVIEW THE 2011 AUDITED FINANCIAL STATEMENTS Motion by Czmowski, second by Christensen, to set Council workshop for July 10, 2012, at 4:00 p.m. to review 2011 audited financial statements. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy that guides the organization and Counci�e the logistics of the Council. May include monitoring reports, policy development and governance process items) (a) PIONEERLAND LIBRARY SYSTEM BOARD MINUTES FROM APRIL 19, 2012 (b) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM JUNE 5, 2012 (c) CITY OF HUTCHINSON FINANCIAL REPORT FOR MAY 2012 (d) CITY OF HUTCHINSON INVESTMENT REPORT FOR MAY 2012 (e) CITY OF HUTCHINSON WEED REPORT FOR MAY 2012 (f) PLANNING COMMISSION MINUTES FROM MAY 15, 2012 (g) JOINT PLANNING BOARD MINUTES FROM MAY 16, 2012 Council Member Yost commented on the large number of properties on the weed notice report. Kent Exner noted that this was more than likely due to it being early in the season. � (00 CITY COUNCIL MINUTES — JUNE 26, 2012 13. MISCELLANEOUS (a) RESOLUTION NO. 14023 — RESOLUTION AUTHORIZING APPLICATION TO DEED BUSINESS DEVELOPMENT CAPITAL GRANTS PROGRAM Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that within the last two weeks, the Minnesota DEED announced a grant program available for economic development projects. Mr. Seppelt would like to submit an application for funds to aid in the development of a business incubator protect. Motion by Arndt, second by Christensen, to approve Resolution No. 14023. Motion carried unanimously. (b) RESOLUTION NO. 14024 — RESOLUTION AUTHORIZING ISSUANCE, AWARDING THE SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B Bruce Kimmel, Ehlers & Associates, presented before the Council. Mr. Kimmel distributed the sale report of $4,795,000 General Obligation Refunding Bonds, Series 2012B. Bids were received earlier today with the low bid coming in at 1.7730% from BAIRD. This interest rate is a bit higher than what was estimated a month ago. A savings of 4.5% is still being seen with this true interest rate. A little over $30,000 per year will be saved for the remainder of the debt service. Maintaining the fund balance allows for the better ratings that the City continually receives. Motion by Arndt, second by Czmowski, to approve Resolution No. 14024. Motion carried unanimously. Mary Christensen — Council Member Christensen noted that she received a complaint about smoking in Evergreen Apartments. Council Member Christensen also commented on her disappointment on the vandalism made to the Hutchinson Brothers statute in Library Square. Bill Arndt — Coun, jl Member Arndt commented on the success of the small play held in the church located On the corner of 2 Avenue SE and Hassan Street. Kent Exner — Open House set for Hwy 15 /CSAH 18 /Airport Road roundabout project on July 11, 2012, 5:00 — 7:30 p.m. at the Hutchinson Event Center. Motion by Arndt, second by Christensen, to set public meeting for July 11, 2012, at 5:00 p.m. at the Hutchinson Event Center. Motion carried unanimously. South Grade Road bridge project with McLeod County will be unveiled in mid -July. Mayor Cook — Mayor Cook commented on the construction of the Habitat for Humanity house on Franklin Street. The elevation appears to be much higher than the surrounding homes. Mr. Carter will have the building official check into it. 14. ADJOURN Motion by Arndt, second by Christensen, to adjourn at 8:40 p.m. Motion carried unanimously �(O_) RESOLUTION NO, 14027 RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2012 CITY OF HUTCHINSON AND STATE PRIMARY AND GENERAL ELECTIONS WHEREAS, Chapter 204B, Section 204B.16, Subd. 1 and Section 20413.2 1, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may designate the location of polling place of all precincts (one, two, and three) and naming of judges for the City and School District Election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the polling place to be used during the 2012 Elections for all precincts will be in the Recreation Center located at 900 Harrington Street S.W., Hutchinson, Minnesota. 2. That the Election Judges are hereby appointed in accordance with the attached list. The City Council also authorizes the City Administrator to make emergency appointments of election judges to fill last- minute vacancies. Adopted by the City Council this 10`h day of July, 2012. Steven W. Cook, Mayor ATTEST: Jeremy J. Carter, City Administrator 769-)1 CITY OF HUTCHINSON AND STATE PRIMARY /GENERAL ELECTIONS 2012 LEANN ANDERSON DONNA BAYSINGER ELAINE BLACK DIANE BOBIER FRANKLIN BOLLER JANET CONNER DORIS DAGGETT GAIL FRANSEN NELLIE GEHRKE MELISSA JACOBSEN ROXANNEJENSEN JOELLEN KIMBALL JANET KLOCKMANN DARLEEN KNIGGE ROB KUENZI ELIZABETH KURTH VANESSA LAHR JEANNE LANGAN MARK LEWANDOWSKI* GLADYS PILGRIM RYAN POWELL CATHERINE PRELLWITZ* DENNIS SCHROEDER* PEARL SEALE ROGER TIEDE SANDY TRAXLER WILLIAM WEGNER PHYLLIS WESELOH *indicates head judge -7(d -)1 M4911- CITY OF 14UTCHINSON RESOLUTION NO. 14028 AMENDING RESOLUTION NO. 13741 ESTABLISHING INCOME GUIDELINES & ASSET LIMITATIONS, FOR SENIOR, DISABLED CITIZENS, ACTIVE DUTY MILITARY RESERVES OR NATIONAL GUARD DEFERRED ASSESSMENTS AND SENIOR & DISABLED CITIZENS REDUCED REFUSE RATE WHEREAS, the Minnesota Statutes provide tax deferral of homestead property for senior citizens, 65 years of age or older, or a person(s) on disability as defined by the Social Security administration, or for members of the National Guard or military reserves in active service for whom it would be a hardship to make payments, and WHEREAS, the home owner can make application for deferred payment of special assessments on forms which can be obtained from the City Administrator's office, and WHEREAS, the home owner /renter can make application for reduced refuse rate on forms, which can be obtained from the City Administrator's office; NOW THEREFORE, the City Council has established the following income guidelines, asset limitations, and verification requirements for applications of deferred assessments and/or reduced refuse rates: To be granted to person(s) with a low income of $25,400.00 per year for one person and $29,000.00 per year for a married couple. 2. To be granted to person(s) with an asset limitation of not to exceed $30,000, excluding the homestead and automobile. 3. Deferred assessment and/or reduced refuse requests may only be applied for if the following documents are submitted at the time of said application. A. Federal Income Tax Form 1040,1040A, 1040EZ; or 7(60 Z Page 2, Resolution 14028 Senior & Active Military Reserves Deferred Assessments Senior Citizens reduced Refuse Rate B. Minnesota Property Tax Refund Form M -1PR Every two years the city can request said information to continue reduced refuse charges; existing reduced refuse accounts shall submit the same documentation to continue the reduced charges. 4. The right of deferment is automatically terminated if: A. The owner dies and the spouse is not otherwise qualified; B. The property or any part thereof is sold, transferred or subdivided; C. The property should lose its homestead status; or D. If for any reason the City determines that there would be no hardship to require immediate or partial payment. Adopted by the City Council this 10th day of July 2012. ATTEST: Jeremy J. Carter Steven W Cook City Administrator Mayor G:IASSESSMEICITY RESOLUTION ORDINANCE NO. 12 -0691 AN ORDINANCE AMENDING CHAPTER 31 OF THE HUTCHINSON CITY CODE PERTAINING TO BOARDS AND COMMISSIONS THE CITY OF HUTCHINSON ORDAINS: § 31.20 ORGANIZATION AND APPOINTMENT. (A) All board and commission appointments authorized by ordinance or resolution shall be made by the Mayor, and each appointment confirmed by the Council. The term of each appointee shall be established and stated at the time of his or her appointment. Except for the Economic Development Authority, no board or commission member shall be appointed to more than two consecutive full terms, exclusive of the fulfullment of an unexpired term or partial term previously served, but shall again be eligible for service following a break in service of not less than one year. New appointees shall assume office on the first day of the first month following their appointment and qualification, or on the first day of the first month following the expiration of the prior term and qualification, whichever shall occur last. Provided, however, that all appointees to boards and commissions shall hold office until their successor is appointed and qualified. All vacancies shall be filled in the same manner as for an expired term, but the appointment shall be only for the unexpired term. (B) All appointed board and commission members shall serve without remuneration, but may be reimbursed for out -of- pocket expenses incurred in the performance of their duties when those expenses have been authorized by the Council before they were incurred. (C) The chair and the secretary shall be chosen from and by the board or commission membership annually to serve for one year. Provided, however, that no chair shall be elected who has not completed at least one year as a member of the board or commission. (D) Any board or commission member may be removed by a four -fifths majority vote of the Council for misfeasance, malfeasance or non- feasance in office and his or her position filled as any other vacancy. (E) Each board and commission shall hold its regular meeting at a time established by it. (F) Except as otherwise provided, this section shall apply to all boards and commissions. All ex- officio members to City boards and commissions shall be non- voting members of the board or commission § 31.21 PLANNING COMMISSION. (A) Establishment and composition. A Planning Commission is hereby established. The Planning Commission shall be composed of seven members of which six shall be residents of the city, but not members of a public body, who shall serve 76x03 staggered five -year terms, and one member of the Council shall be appointed by the Mayor to serve terms expiring on March 31 of each year. The Mayer and the City Attorney shall be ex- officio members. § 31.27 CITY TREE BOARD. (A) Establishment and composition. A City Tree Board is hereby established. The Board shall be composed of five members, four of whom shall serve staggered three - year terms and one of whom shall be a member of the Council and designated by the Council. The Git� -ate Natural Resource Coordinator, or equivalent position, shall serve as an ex- officio member. § 31.26 LIBRARY BOARD. A Library Board ^..mpesed of seven members all of ..::.,....,hall be residents 0 the city w:.d shall serve stagge - °a three year- terms, is hereby established. The Library Board shall consist of seven members, six of whom shall be residents of the city and serve staggered three year term and one of whom shall be a member of the Council and designated by the Council § 31.24 PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY BOARD. (A) Establishment and composition. (1) A Parks, Recreation and Community Education Advisory Board is hereby established under the Joint Powers Agreement entered into on September 1, 1993, between the city and the Independent School District No. 423, in this county. The Board shall be composed of 4-3 7 representatives eensisting of ten positions from the community at large, one representative from the School Board, and one representative from the City Council. and one yeu esenWive e se w t.. Adopted by the Hutchinson City Council this 10`h day of July, 2012 Steven W. Cook Mayor Jeremy J. Carter City Administrator 7(a.) 3 PUBLICATION NO. ORDINANCE NO. 12 -0690 AN ORDINANCE AMENDING SECTION 154.064 (C) AND SECTION 154.004 ALLOWING DOG DAYCARE BY CONDITIONAL USE PERMIT IN THE C -4 (FRINGE COMMERCIAL DISTRICT) AND ADDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 REQUESTED BY ADULT TRAINING AND HABILITATION CENTER THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to amend Sections 154.004 and 154.064 (C) of the City Code to allow dog daycare facilities in the C -4 District as follows: 154.004 DEFINITIONS. DOG DAYCARE. The boarding and regular care for dogs (no holidays, weekends or over - nights) with indoor and outdoor enclosed kennel runs. There would be no more than 12 dogs on the Property at any one time. 154.064 C -4, FRINGE COMMERCIAL DISTRICT. (C) Conditional permitted uses. (1) Permitted uses listed in the C -2 district but not including used car, farm machinery, marine or manufactured home sales; (2) Commercial parking structures; (3) Churches and houses of worship and related facilities; (4) Storage units; and (5) Tattoo establishments and adult- oriented businesses. (6) Towing company offices with fenced impound lots, subject to providing a completely fenced and screened enclosure. Fences must be a minimum of six feet high and constructed of wood or equivalent materials. (7) Dog Daycare EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 10`h day of July, 2012. Attest: Jeremy J. Carter Steven W. Cook City Administrator Mayor '7(a) PUBLICATION NO. ORDINANCE NO. 12 -0689 AN ORDINANCE AMENDING SECTION 154.063 (C) ALLOWING TATOO ESTABLISHMENTS BY CONDITIONAL USE PERMIT IN THE C -3 (CENTRAL COMMERCIAL DISTRICT) THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to amend Section 154.063 (C) of the City Code to allow tattoo establishments in the C -3 District as follows: § 154.063 C -3, CENTRAL COMMERCIAL DISTRICT. (C) Conditional permitted uses. (1) Commercial parking ramps for passenger vehicles only, provided a reservoir space is provided within the structure for holding cars awaiting entrance, which reservoir space shall have a capacity of no less than two vehicles; (2) New or used automobile sales; indoor display area only; (3) Motor fuel and service stations, excluding major repair operation. See Appendix B to this chapter for the off - street parking schedule; (4) A state licensed residential facility serving from seven through 16 persons; (5) Group homes up to 5, 000 square feet; (6) All licensed day care facilities which are not permitted principal uses under state law; (7) Single-family residences applying for additions, decks, garages, remodeling, or other single-family related uses. (8) (a) Drive - through windows (specific considerations of traffic impact, accessibility to appropriate roadways, site plan consideration and other relevant information would be part of the application review). (b) Conditions for residential facilities, group homes, crisis shelters and licensed day care facilities shall not be imposed which are more restrictive than those imposed on conditional uses or other multi family residential property in the same district, unless the additional conditions are necessary to protect the health or the safety of the residents of the residential facility. (9) The requirements of § 154.115 of this code shall apply to the conditional uses described in this section. (I0) Tattoo Establishments EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 10'h day of July, 2012. Attest: Jeremy J. Carter Steven W. Cook City Administrator Mayor 7(A')6 W Short Term 3.2 Malt Liquor Fee: $125.00 111 Hassan Street Southeast Hutchinson, MN 55350 VV'' ..\ (320) 587 -5151 /Fax: (320) 234 -4240 jt_ City of Hutchinson APPLICATION FOR SHORT TERM 3.2 MALT LIQUOR LICENSE - ON SALE In provisions of the City of Hutchinson Municipal Code Chapter 112 All applications must be received at least 10 days before City Council Meeting in order to be considered Applicant Information WLeo4 GotvtH AgViu. R14yoj a Sao •5$7 a Busi ss /Or anization Name Phone Number QD t3o I40- , 1340 Cek?4-1 q /4-ye- ffhtkWvtSgJ -,mO— -Jb Business /Organization Address City State Zip Lee4?A_ C-0" t, - l �A112- _m6 Ty e of Business /Or aniz tion C L4-G K Sao 583 - '79 S Applicant Name Phone Number 22�5 fAcl rIN SC SE *1kr1%h§6 INA-1 Applicant Address Ci State zip Officer(s)/Owner(s) of the Or anization/Business ffnecessm, list additional names on se orate sheet Scot'' - i?j zrsi d-e `+ Name Title ,�/' II t !t L7r-Nj JI W r V1ce- — i:�eeS! oAG11^i Name Title -e— 1,d I-YI 119.Gr C _rlit1rSN e e A." Name Title 3.2 Malt Liquor Sales Information Mi�-Ltod 6vonk -k1 Tiair GrawndS Wed he, *4 615 - _<;W Locatioh of Sales Date(s) oflSalest Ofo Ce- ;ifltnl Aleti C_ .4,cleJ IkVC1. Address (Iontact Person The following items need to be completed and/or attached in order for the application to Application fee paid in full (check or money order): �I yes Ll no Application comnleted in full and siened by applicant: )I ves ❑ no -9 9 The above listed business hereby applies for a license to sell short-term 3.2 MALT LIQUOR for consumption "ON" those . certain premises in the City of Hutchinson described above and to that end represents and state as follows: That said applicant is a citizen of the United States; of good moral character and repute; and has attained the age of 21 years; that he /she is proprietor of this establishment for which the license will be issued if this application is granted. That no manufacturer of such non - intoxicating malt liquors has any ownership, in whole or in part, in said business of said applicant or any interest therein. Cary of hzachnison Application for ShortTenn 3.2 ,Ltalt Liquor License - On -Sale Page 1 of 2 That said applicant makes this application pursuant and subject to all the laws of the State of Minnesota and the ordinances and regulations of said City of Hutchinson applicable thereto, which are hereby made a part hereof, and hereby agrees to observe and obey the same. Each Applicant further states that he /she is not now the holder of, nor has he /she made application for, nor does he intend to make application for a Federal Retail Dealer's Special tax stamp for the sale of intoxicating liquor. I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Fi ',r1"ANA!?t // ' �; [ -em l0 ifs /O�— ignature ofauthor..ed a icant Dal Police Chief Recommendation ❑ approved ❑ denied Notes: Police Chief Signature Date -7(b) Report Page 1 of 1 City of Hutchinson 06/27/2012 12:52:02 PM Order ID: 3934002 Bill To Ship To Mcleod County Ag Assn Mcleod County Ag Assn 40 Century Ave 640 Century Ave PO Box 142 PO Box 142 Hutchinson , MN 55350 Hutchinson , MN 55350 SKU Product Description Price Qty To LIC NONINTOX- License - Non Intoxi, Temp License $ 125.00 1.00 $ 125. OE Sub Total $ 125. Tax Total $ 0. Shipping Total $ 0. Handling Total $ 0. Conv. Fee Total $ 0. X * * * Payment Info * * * Grand Total $ 125. Type Visa Cardholder Name MCLEOD COUNTY AG ASSN Number xxxxxxxxxxxx4298 Authorization 163262 Receipt ID 4110 IMPORTANT -Retain this copy for your records © Copyright 2011 RevTrak Inc. All Rights Reserved. 062712012 12.50.5: 7(b) https: / /secure.revtrak. net / hutch / admin/ StimRptBridge /StimRptBridge.aspx ?sr _print =6433 c... 6/27/2012 Minnesota Department of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 444 Cedar Street Suite 133, St. Paul MN 55101 -5133 (651) 201 -7507 Fax (651) 297 -5259 TTY (651) 282 -6555 W W W.DPS.STATE.MN.US APPLICATION AND PERMIT FOR A 1 TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE ON PYPE OR PRINT INFORMATI NAME OF ORGANIZATION DATE ORGANIZED TAX EXEMPT NUMBER jf 'N 3r5 (�4 Ytoc• OC1 STREET ADDRESS CITY STATE ZIP CODE "/&9 4,4o a iv u L /, Sd t .S` G NAME OFJJ PERSON MAKING APPLICATION BUSINESS PHONE HOME PHONE �} DATES LIQUOR WILL BE SO L TYPE OF ORGANIZATION G col T OFFICER'S NAME ADDRESS}} ORGANIZATION 11,E t). G�I�<ILD S. M&/04- / /CG1E / tl6.Sw-tXIT� /il/lr5'GN, �IN ORGANIZATION OFFICER'S NAME ADDRESS ORGANIZATION OFFICER'S NAME ADDRESS Location license will be used. If an outdoor area, describe %N FlZC N7 C F �CtFrJa� (iCllC d i NG UN Gr2C�u t/)0-S Will the applicant contract for intoxicating liquor service? If so, give the name and address of the liquor licensee providing the service. Will the app)icam carViquor liability insurance? If so, please rovide the carrier's name and amounts of coverage. t 1 F5 l' A-i716- tC, 7l%( rGl A-L mot? - y,�— iYl A- r+rl•� I%E APROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL & GAMBLING ENFORCEMENT CITY /COUNTY DATE APPROVED CITY FEE AMOUNT LICENSE DATES DATE FEE PAID SIGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT I dd NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and /or county tot ea ress above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the License for the event PS-09079 (05;06) 7(c) TO: Mayor & City Council FROM: Kent Exner, DPW /City Engineer RE: Consideration of Improvement Project Change Orders DATE: 07/10/2012 As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction staging changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects. The following Change Orders are proposed as noted: • Change Order No. 5— Letting No. 1/Project No. 11-02— School Rd NW This Change Order addresses the incentive /disincentive for bituminous pavement as outlined within MnDOT Specification 2360. The additional cost results in an increase to the contract in the amount of$1, 908.16 • Change Order No. 3 — Letting No. 3/1roject No. I1 -04 — 2011 Pavement Management Program— Phase t This Change Order addresses the incentive/disincentive for bituminous pavement as outlined within MnDOT Specification 2360. The additional cost results in an increase to the contract in the amount of$360.71. We recommend that the attached project Change Orders be approved. cc: Jeremy Carter, City Administrator _ HUTCHINSON CITY CENTER 9 ^1 ENGINEERING DEPARTMENT 111 HASSAN STREET SE, HLITCINSON MN 55350 PHONE: 320-234-4209 FAX: 320-234-4240 LETTING NO. 1 - PROJECT NO. 11 -01 Dated: 0612812012 CHANGE ORDER NO. 5 Page 1 of 1 Project Location: School Road NW CONTRACTOR: Wm Mueller 8 Sons Inc, 831 Park Ave, P O Box 247, Hamburg MN 55339 Contract Amount $1,417,670.48 Completion Date: 08!30/20114 Revised Completion Date: 0513112012 Description of Change: Item No. Spec. Ref. This Change Order addresses the incentive /disincentive for bftuminous pavement as outlined within MNDOT Specification 2360. The additional cost results in an increase to the contract in the amount of $2,908.16. Item Name Unit Quantity Percent to ity Unit Price Amount INCREASE ITEMS: 34 2360.503 TYPE SPWEA240C WEARING COURSE MIXTURE - STREET (31/2 " -2 LIFTS) (1.5/3.5x$13.74 = $5.89) SY 12180 $13.74 123 LOT 10 - DENSITY INCENTIVE PER SPECIFICATION - 1.F LIFT (1.5/3.5 x $13.74 = $5.89 x 4060' 7.1612%= 290.74 SY) SY 4060 7.1612% $5.891 $1,712.4 290.74 124 LOT 11 - DENSITY INCENTIVE PER SPECIFICATION - 1.5" LIFT (1.5/3.5 x $13.74 = $5.89) SY 4060 3.00% $5.89 $717.4 121.80 125 LOT 12 - DENSITY INCENTIVE PER SPECIFICATION - 1.5' LIFT (1.5/3.5 x $13.74 = $5.89) SY 4060 2.00 °h $5.89 $478.2 81.20 TOTAL INCREASE ITEMS $2,908.1 DECREASE ITEMS: $0.0 TOTAL DECREASE ITEMS $2,808'1 NET INCREASE $2,908.15 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $ 2.908.15 (add)1(deduet). n extension of - - -- days shall be allowed for completion. ORIGINAL PREVIOUS ADDITIONSIDEDUCTIONS THIS ADDITIONIDEDUCT ON TOTAL CONTRACT AMOUNT $1,417,870.48 $34,660.08 $2,90&15 $1,455,238.71 Approved: Approved: Contractor - Wm Mueller 8: Sons Inc Dated: City of Hutchinson - Mayor: Steven W Cook Dated: 07/10/2012 Pproved: Approved: City of Hutchinson - City Engineer: Kent Exner Dated: 07110!2012 City of Hutchinson - City Administrator: Jeremy J Carter Dated: 07110/2012 70 ) HUTCHINSON CITY CENTER ENGINEERING DEPARTMENT 111 HASSAN STREET SE, HUTCINSON MN $5350 PHONE: 320-234-4209 FAX: 320-234-4240 LETTING NO. 3 - PROJECT NO. 11 -04 Dated: 0612612012 CHANGE ORDER NO. 3 Page 1 of 1 Protect Location: 2011 Pavement Management Program - Phase 1 CONTRACTOR: Wm Mueller & Sons, Inc, 831 Park Ave, PO Box 247, Hamburg MN 55339 Phone: 952467.2720 Contract A mount: $427,513.50 Completion Date: 0910912014 Revised Completion Date: 0611512012 Description of Change: This Change Order addresses the incentive /disincentive for bituminous pavement as outlined within Mn/DOT Specification 2360. The additional cost results in an increase to the contract in the amount of $360.73. Item No. Spec. Ref. Item Name UnK QuantKy uaanntity Unit Price Amount INCREASE ITEMS: 62 2360.503 TYPE SPWEA240C WEARING COURSE MIXTURE -STREET SY 1927 6595 $6.24 68 LOT 5 - DENSITY INCENTIVE PER SPECIFICATION - 1.5' LIFT SY 1927 3.0000% $6.24 $360.7 57.81 TOTAL INCREASE ITEMS $360.7 DECREASE ITEMS: $0.0 TOTAL DECREASE ITEMS $360.7 NET INCREASE IL $380.72 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of 360.72 (add)/(deduet). n extension of - - -- days shall be allowed for completion. ORIGINAL PREVIOUS ADDITIONSIDEDUCTIONS THIS ADDITION/DEDUCTION CONTRACT AMOUNT TOTAL $427,513.50 $9,688.75 $360.72 $437,562.97 pproved: Approved: Contractor - Wm Mueller & Sons Inc Dated: City of Hutchinson - Mayor. Steven W Cook Dated: 07/10/2012 Approved: Approved: City of Hutchinson - City Engineer. Kent Exner Dated: 07/10/2012 City of Hutchinson - City Administrator: Jeremy J Carter Dated: 0 711 0/2 01 2 -76:4) AGREEMENT BETWEEN THE CITY OF HUTCHINSON AND ISD 423 RELATING TO THE ESTABLISHMENT AND OPERATION OF A JOINTLY SPONSORED PARKS, RECREATION AND COMMUNITY EDUCATION PROGRAM AGREEMENT, made as of Julylst, 2012, between the CITY OF HUTCHINSON, A MINNESOTA MUNICIPAL CORPORATION ( "City ") and INDEPENDENT SCHOOL DISTRICT NO. 423, MCLEOD COUNTY, MINNESOTA, A MINNESOTA MUTUAL CORPORATION ( "School District "). WHEREAS, the School District is organized for the purpose of providing public school education, including at its discretion Community Education programs and associated recreation programs within its geographical boundaries; and WHEREAS, the City is authorized to and does provide parks, recreation and civic programs to citizens within its geographical boundaries, and WHEREAS, the School District and the City (hereinafter sometimes collectively called the "Sponsors ") within their respective powers, desire to cooperate in the establishment and operation of a total Parks, Recreation and Community Education Program, as that term is defined in Article 1 (a) within the total area encompassed by the boundaries of the City and the School District. NOW, THEREFORE, the Sponsors hereby agree with the other as follows PURPOSE OF AGREEMENT: The Sponsors shall severally, jointly and cooperatively, pursuant to the broad authority contained in Section 471.15 through 471.19, inclusive, and Section 471.59, of Minnesota Statutes and other applicable statutes and their respective express and implied powers, establish and operate a Parks, Recreation and Community Education Program. The term Parks, Recreation and Community Education Program is defined, for the purposes hereof to mean the following: A program of academic improvement, enrichment, vocational improvement, leisure and recreation services, program coordination, and social action utilizing School District physical plants, City Parks and recreation facilities, private resources, if and when available, for all ages, for all social and economic groups residing within the geographic boundaries of the Sponsors. 2. The Sponsors shall be responsible for the operation and maintenance of the Parks, Recreation and Community Education Program, except as otherwise set forth herein. Recommendations shall be received by the School Board and the City Council from time to time, concerning the programming and the operation of the programs from the Parks, Recreation and Community Education Advisory Council. PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY COUNCIL: The Parks, Recreation and Community Education Advisory Council shall consist of nine (9) members who shall be from the following groups: One (1) member to be selected from the School Board annually. 2. One (1) member to be selected from the City Council annually. 3. Seven (7) members at large to be appointed jointly by the School Board and the City Council. "At large" positions shall be for a term of three (3) years. No "at large" member shall serve on the Council for more than two (2) consecutive terms. The Parks, Recreation and Community Education Advisory Council shall include public advertising of the "at large" position with all candidates names forwarded to the Mayor and the School Board Chairperson respectively for City Council and School Board approval. The terms of office shall end on August 31" of each proper year. In case of a vacancy during the term of an "at large" member, the School Board and City Council shall jointly appoint a new member to serve the remainder of the term. In case of the vacancy of a permanent member, (School Board representative or City Council representative) the appropriate unit shall appoint a new member. Besides the nine (9) voting members, a member of the Hutchinson High School Student Council and the Parks, Recreation and Community Education Director shall serve as an ex- officio members with the Director appointing staff as secretary to the Board. The Board shall annually elect one (1) member to serve as chairperson and it may adopt such rules of procedure as it deems compatible. DUTIES OF THE PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY COUNCIL: 1. Serve as official advisory council responsible for all aspects of parks, recreation and community education. 2. Plan and establish a joint parks, recreation and community education program for the School District and City. 3. Review the annual budget and develop recommendations that shall be submitted to the School District and City. 4. Develop programs and recommend policies on parks, recreation and community education according to the needs of the community. 5. Endeavor to secure citizen group participation on all matters of parks, recreation and community education. 6. Perform all other duties and functions as may be requested by the School Board and the City Council. PROGRAM RESPONSIBILITIES: The Parks, Recreation and Community Education Director shall administer the program established by the Board. Prepare annual budgets and submit them for review to the Advisory Council. Upon review and development of recommendations by the Advisory Council, the budgets shall then be submitted to the School Superintendent and the City Administrator for review /revision and presentation to the respective School Board and City Council for their review, revision and approval. We) The approved annual budget shall be submitted to the School Superintendent and the City Administrator each year as requested by the School Superintendent and City Administrator.- The cost of the program will then be allocated to each of the participating parties. The costs of the Parks, Recreation and Community Director's salary, benefits and training will be on an equal obligation of the parties hereto with the School District purchasing those services from the City of Hutchinson. In addition, the school superintendent shall determine the amount, if any, of performance pay the director may be entitled to under the compensation guidelines of the school district. If agreement on the budget is not reached by December 1, operation of the current program will continue on the previous year's amount until approval is reached. Land, playground equipment and supplies furnished by either party hereto shall remain the property of the party so furnished or supplying the same except that nothing herein shall be construed so as to prohibit the purchase of recreational supplies or equipment with the use of joint funds if so agreed to by the parties. It is agreed that the maintenance of City park property and facilities shall remain a function of the city and the maintenance of School District land facilities shall remain a function of the School District. The Director shall strive, to the extent possible, to devote equal working time to both the School District and the City. However, both the City and the School District recognize that an exactly equal apportionment of the director's time is impossible due to city and school schedules, and fluctuations in the requests for services made of the director from the City, School District and members of the public. LIABILITY INSURANCE: Each Sponsor shall maintain public liability insurance coverage upon its public resources made available for the Parks, Recreation and Community Education Program. DIRECT SUPERVISION OF PROGRAM: All activities of the Director in charge of the Community Education Program will be under the direct supervision of the Superintendent of Schools. All activities of the Director in charge of the Parks and Recreation programs will be under the direct supervision of the City Administrator. LENGTH OF AGREEMENT - WITHDRAWAL This Agreement shall remain in force and effect for a three year period ending on June 30", 2015. However, this Agreement may be terminated by either party hereto by written notice to the other party giving at least one (1) year notice prior to the date of desired termination. In the event of such termination, an accounting shall be completed in a manner mutually satisfactory to the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by the respective duly authorized officers of the City Council of Hutchinson and the School Board of Independent School District No. 423. INDEPENDENT SCHOOL DISTRICT NO. 423 CITY OF HUTCHINSON 7 (e) McLeod County, Minnesota McLeod County, Minnesota School Board Chairperson Superintendent of Schools Mayor City Administrator 7Ce) AN AGREEMENT BETWEEN THE CITY OF HUTCHINSON, MINNESOTA AND HUTCHINSON INDEPENDENT SCHOOL DISTRICT #423 RELATING TO THE ESTABLISHMENT AND OPERATION OF A JOINTLY SPONSORED GROUNDS MAINTENANCE PROGRAM THIS AGREMENT entered into this 1s` day of July, 2012, between the CITY OF HUTCHINSON, A MINNESOTA MUNICIPAL CORPORATION ( "City") and INDEPENDENT SCHOOL DISTRICT NO. 423, MCLEOD COUNTY, MINNESOTA, A MINNESOTA MUTUAL COPORATION ( "School District'). WHEREAS, the School District is organized for the purpose of providing public school education and does provide extra curricular activities for which it maintains expenses; playgrounds, ball fields and practice facilities and has adjacent to its buildings, parking areas and sidewalks that it maintains; and WHEREAS, the City is authorized to and does provide and maintain parks, recreation areas, parking areas and sidewalks adjacent to the building that it owns; and WHEREAS, the School District and the City (collectively called the "Sponsors ") within their respective powers, recognizing that through economies of scale there will be cost savings to both the City and School District through a joint agreement to maintain recreation areas and they desire to cooperate in the establishment of operation of a Joint Grounds Maintenance Program. NOW, THEREFORE, the Sponsors hereby agree with each other as follows: PURPOSE OF AGREEMENT: The Sponsors shall severally, jointly and cooperatively, pursuant to the broad authority contained in Minnesota Statute §471.59 and other applicable statutes and their respective express and implied powers, establish and operate a Joint Grounds Maintenance Program. The term Joint Grounds Maintenance Program is defined, for the purposes hereof to mean the following: A program of shared equipment, materials and labor between the Sponsors to more effectively and cost efficiently maintain the parks and recreation areas of each of the Sponsors and the parking areas and sidewalks adjacent to buildings owned by the respective Sponsors. 2. To plan and establish a Grounds Maintenance Program for the green areas of the Sponsors to implement a program mowing; fertilization; herbicide /pesticide treatment; tree pruning; watering; aeration/top dressing; stripping /demarcation of lots and fields; and sign installation. (Parking lot paint by District) -7 3. To plan and establish a Program for snow and ice removal from the parking lots and sidewalks adjacent to the buildings of the Sponsors and to establish a schedule or time table for such snow and ice removal. (Snow hauling by District) 4. To plan and establish a Maintenance Program of the athletic fields and playgrounds of the Sponsors, including tennis courts, baseball /softball fields, and soccer /football fields, which are the real property of the respective Sponsors. (Playground replacement parts by District) 5. Real property, equipment, supplies and employees furnished by either party hereto shall remain the property and/or employees of the party so furnishing them, except that nothing herein shall be construed as to prohibit the purchase of grounds maintenance supplies or equipment with the use of joint funds, if so agreed by the parties. LIABILITY INSURANCE: Each sponsor shall maintain public liability insurance coverage upon its public resources, including its land, buildings, machinery and employees in an amount at least as great as any statutorily imposed exposure. Employees of, and machinery and materials owned by the respective sponsors shall be deemed to remain the employee and resource of that Sponsor for insurance and liability purposes. The Sponsors agree to obtain a separate liability insurance policy to insure the Joint Grounds Maintenance Program, if necessary. SUPERVISION OF PROGRAM: All activities of the grounds Maintenance Program shall be under the direct supervision of the Superintendent of Schools and the City Administrator. LENGTH OF AGREEMENT AND WITHDRAWL: This Agreement shall remain in force and effect for a period of two (2) years from July 1, 2012 thru June 30, 2014. However, this Agreement may be terminated by either party hereto by written notice to the other party with at least one (l) year notice prior to the date of desired termination. CONSIDERATION: The School District agrees to provide a cash payment to the City of Hutchinson in the amount of $72,000.00 annually for the term of this Agreement in consideration for the ground program services identified within the Agreement and provided by the City of Hutchinson. This consideration shall be reviewed annually as part of the budget development process. 2 (e) ACCOUNTING: Each party to this Agreement agrees to make all financial documents available for inspection by the other, if requested, with a three (3) day written notice. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by the respective duly authorized officers of the City Council of Hutchinson, Minnesota and School Board of Independent School District No. 423. INDEPENDENT SCHOOL DISTRICT NO. 423 CITY OF HUTCHINSON McLeod County, Minnesota McLeod County, Minnesota School Board Chairperson Superintendent of Schools Attest: School Board Clerk Dated: Mayor City Administrator Finance Manager Dated: 7(e) USE OF FACH TI'IES HUTCHINSON SCHOOL DISTRICT AND CITY OF HUTCHINSON 2013 -2014 Recreation Center It shall be the policy of the School District and the City of Hutchinson to rent the Recreation Center Building /Burich Arena dry floor facilities at a cost of $40 per hour with the rentee providing a minimum of one building supervisor. Roberts Park/Linden Park (Softball) Estimate 40 days of use, which includes 40 softball games — 10 "A" squad games, 10 "JV squad games, 10 "C" squad games and 10 middle level games As soon as weather permits, usually the first week in April, practice is moved outdoors to Linden and Roberts Park. The above - mentioned 40 days does not account for any inclement weather cancellations. It shall be the policy of the School District and the City of Hutchinson that the school district will rent Roberts /Linden Park for $2,600 per softball season for the above - mentioned use. This cost is based on 40 days X 6 fields. This includes material, labor and use of City equipment. VMF Field (Baseball) Use of Veteran's Memorial Field shall be $1,200 for the season, which includes games and practices. General Guidelines When use of facilities or cancellation is needed because of inclement weather, a contact must be made by noon to the city's PRCE Director by the School Activities Director, and facilities can be used only upon approval of the above - mentioned directors. Renters shall always follow the approved time schedule. Renters shall assist in setup for activities or for the next activities. Renters shall leave the facilities in good condition. The renter's supervisor of the activity must stay until all participants have left the building including emergency situations. 7 (1) 2 LEASE AGREEMENT HUTCHINSON SCHOOL DISTRICT Burich Arena THIS AGREEMENT, made this first day of July 2012 by the City of Hutchinson, a municipal corporation, hereinafter called First Party, and the Independent School District No. 423 of McLeod County, hereinafter called Second Party, WITNESSETH: WHEREAS, the First Party has assumed the operation and maintenance of Burich Arena, through the guidance and recommendation(s) of the Civic Arena Board; WHEREAS, it is the desire of the Second Party to rent Burich Arena for programming to be conducted and sponsored through its physical education program and/or extra - curricular programs; NOW, THEREFORE, in consideration of the premises and the terms and covenants hereinafter set forth, the parties hereby mutually agree as follows: 1. PREMISES: The First Party agrees to lease and hereby does lease, and the Second Party agrees to take and hereby does take Burich Arena, east rink and west rink. 2. TERMS OF LEASE: This lease shall be from the term of July 1, 2012 through June 30, 2014. 3. RENTAL PAYMENT AND GAME RECEIPTS: The Second Party agrees to pay the First Party a rental payment for the premises as shown below: 2012 -13 2013 -14 TOTAL TOTAL Practice Ice 225 hours $155. $160. $34,875. $36,000. 20 Games Varsity /J.V. $675. $700. $13,500. $14,000. TOTAL $48,375 $50,000 Each yearly total amount will be paid on or before April I" of 2013 and 2014 respectively. All game admission receipts shall be the property and responsibility of the Second Party. Hockey games in excess of 20 Varsity /J.V shall be billed at the agreed upon game rates. 4. DEFINITIONS a. "Ice- time" - The period of time the ice is on the floor of the premises and utilized for hockey games and/or practices. b. "Non- Ice - Time" - The period of time no ice is on the floor and utilization is for sports other than hockey, i.e., tennis, track, softball, soccer, baseball. C. Exclusive use - The time the Second Party is in possession of the premises for "ice- time" and "non- ice - time" use, without interference from the First and /or Second Party(s), except for normal maintenance of the building. 5. USE OF FACILITIES: The First Party agrees to lease the premises for exclusive use at the following designated times and activities. 7 «) 3 a. The Second Party shall be allotted 225 hours of ice time per school year. In the event more than 225 hours practice ice time is used, the Second Party shall be billed at the agreed hourly rate. b. All practice time(s) for Boys Squads and Girls Squads shall be scheduled as agreed upon between the city's Facilities & Operations Manager and School Activities Director. C. Game ice -time shall be set by schedule. All hockey games shall be Monday through Saturday, excluding holidays. All regularly scheduled hockey games and dates are set forth in a schedule and may be canceled and/or rescheduled only after mutual consultation of the First Party and the Second Party, or their respective representatives. d. In the event the facility is rendered unfit for hockey use due to fire or any other cause, the Second Party's obligation for rent shall be adjusted on a pro -rata basis and the party of the first part shall refund within 30 days after termination that portion of the rent covering the period of non -use. If the damage cannot be repaired within 30 days, the Second Party may exercise the option to terminate. 6. FIRST PARTY RESPONSIBLITIES: a. To provide all utilities, including heat, light, water, sewer, refuse; maintain all ice - making and cleaning equipment and machines; flooding the ice rinks; cleaning of the ice surfaces; maintaining the parking lot; and the normal maintenance, repair and replacement of dasherboards, goals and nets; and make all necessary structural alterations, repairs and maintenance. b. To provide janitor service for cleaning of the locker and shower area and cleaning of the bleacher area, storage area and upper arena areas as needed. C. To operate, maintain and receive revenues from all concessions and/or vending machines, unless otherwise assigned in whole or part. 7. SECOND PARTY RESPONSIBILITIES: a. To provide personnel and supplies for the sale and collection of admission tickets. b. To provide for payment of any Minnesota sales tax for admission. C. To provide towel and laundry service. d. To designate personnel to supervise students at any time the building is being used by its students under this agreement, and to designate one individual to be responsible for key(s) for use of the building while in use by its students. e. To be responsible for loss or theft of school and /or personnel property while stored or otherwise within the premises. f To make all arrangements and /or payment for announcer(s), scoreboard operator(s), referees and supervisory personnel. g. To designate the coach or supervisor for seeing all pieces of equipment and supplies of the school and players are picked up and properly stored in the areas and cabinets, as provided by the First Party, and to see that all students are out of the building by one -half (1/2) hour after close of practice or game. 7(e) 4 8. RULES AND REGULATIONS: The rules and regulations of Independent School District No. 423 pertaining to student conduct shall be in effect during all times this building is used by the school. Additional policies governing the conduct of students may be developed as needed by Burich Arena and the school administration. The policies, rules and regulations shall be enforced by school personnel as assigned by the school administration and the city personnel as assigned by the city's Facilities & Operations Manager. 9. INSURANCE: The First Party agrees to pay a sum equal to the actual expense for bodily injury and property damage insurance. 10. INDEMNIFICATIONS: The Second Party agrees to save harmless, protect and indemnify the First Party from any and all claims, not fully covered by Section 9 Insurance, of every kind and nature whatsoever arising out of the personal injury or property damage on the leased premises while it is under control of and being used by the party of the second part. Each party agrees to name the other as an "additional insured party" in liability insurance policies. 11. SUCCESSORS AND ASSIGNS: All provisions of the lease, herein stated, are binding upon the successors or assigns of the respective parties. IN WITNESS WHEREOF, the parties have signed this agreement to be effective the day and year above written. In presence of: CITY OF HUTCHINSON BY Mayor BY City Administrator INDEPENDENT SCHOOL DISTRICT NO. 423 BY Chairman BY Clerk Lease This lease agreement is made and entered into this 1 st day of July, 2012, by and between the City of Hutchinson a Minnesota municipal corporation (Lessor) and Independent School District #423 (Lessee). Whereas, Lessee operates an elementary school adjacent to the leased premises; and, Whereas, Lessee currently utilizes the leased premises for the purposes of conducting educational and school related activities; and, Whereas, from time to time school personnel have intervened in situations involving students and members of the general public for the purposes of protecting students; and, Whereas, as currently structured, Lessee, its administrators and other personnel have limited authority to prevent undesirable interaction between students and the public during school hours because the leased premises is owned by the City; and, Whereas, it is the desire of the Lessor and Lessee to ensure the safety of students at the school and, by leasing the premises, school personnel would have authority over third parties that are on the premises, Therefore, for one dollar ($1.00) and other good and valuable consideration, the parties agree as follows: Leased premises. The Lessor, in consideration of all the conditions, and some premises contained herein does hereby lease to the Lessee the following described property in the City of Hutchinson, McLeod County, Minnesota: North Park excepting therefrom the North 412.5 feet of the South 478.5 feet of the East 264 feet, South Half City of Hutchinson Lessee's Use of the Leased Premises. The Lessee agrees that the leased premises shall be used only for those uses commonly associated with the education of students. Such uses shall include, but not be limited to, recess, physical education classes, scientific and other experiments and other educational uses. Hours of Use. Lessee agrees that they shall have the ability to operate under the terms of and for the purposes of this lease between the hours of 7:00 a.m. and 4:00 p.m. each day that school is in session. Additionally, these terms are applicable one hour preceding and following school activities outside the normal hours of operation. Exclusive Use. Lessor agrees that Lessee shall have the exclusive use of the leased premises during the hours mentioned above. Lessee agrees, however, that it will use sound discretion in restricting the use of the leased premises by members of the general `{i e ) public. Both parties recognize that the Lessee shall have the ability to limit the use of the leased premises by third parties during the above - stated hours. Subleases. The parties agree that the Lessee does not have the ability to sublease the premises to third parties. Term. The term of this lease shall be from the last date signed below until June 30, 2016, unless terminated earlier by the parties. Improvements. Lessee shall not make improvements to the leased premises without the permission of the Lessor. All improvements so made shall become the property of the Lessor. Termination. This lease may be terminated for any reason by either party by giving the other a 90 day notice of its intention to do so. Insurance. Lessee shall have in full force and effect a policy of liability insurance for the full term of this lease naming the Lessor as an additional injured in an amount of not less than $1,200,000.00. The Lessee shall provide a certificate of said insurance policy at the time this lease is entered into. Independent School District #423 By Its By Its Date City of Hutchinson Its a _7(e) PAYROLL ELECTRONIC FUNDS TRANSFERS PAYROLL DATE: 06/29/2012 Period Ending Date: 06/23/2012 $58,666.64 IRS - Withholding Tax Account Federal Withholding Employee /Employer FICA Employee /Employer Medicare $11,989.42 MN Department of Revenue State Withholding Tax $39,352.43 Public Employee Retirement Association Employee /Employer PERA/DCP Contributions $2,115.32 TASC Employee Flex Spending Deductions $6,348.52 TASC Employee Contributions to Heath Savings Account $575.00 MNDCP Employee Contributions - Deferred Comp $1,440.00 ING Employee Contributions - Deferred Comp $1,230.00 ICMA Retirement Trust Employee Contributions - Deferred Comp $477.61 MN Child Support System Employee Deductions $0.00 MSRS - Health Savings Plan Employee Deductions to Health Savings Plan $122,194.94 Total Electronic Funds Transfer 7(f) 0 0 0 R55CKREG LOG22001VO Check # Ck Date 171319 7/10/2012 171320 7/10/2012 171321 7/10/2012 171322 7/10/2012 171323 7/10/2012 171324 7/10/2012 171325 7/10/2012 171326 7/10/2012 171327 7/10/2012 171328 7/10/2012 171329 7/10/2012 171330 7/10/2012 171331 7/10/2012 171332 7/10/2012 171333 7/10/2012 171334 7/10/2012 171335 7/10/2012 171336 7/10/2012 171337 7/10/2012 171338 7/10/2012 171339 7/10/2012 171340 7/10/2012 171341 7/10/2012 171342 7/10/2012 171343 7/10/2012 171344 7/10/2012 171345 7/10/2012 171346 7/10/2012 171347 7/10/2012 6/27/12 - 7/10/12 Amount Vendor/ Explanation 326.09 ACE HARDWARE 136.83 AEM MECHANICAL SERVICES, INC 37.41 AG SYSTEMS 134.17 AMERICAN FAMILY INS CO. 6.55 AMERICAN MESSAGING 576.60 AMERICAN SOLUTIONS FOR BUSINES 104.38 AMERICINN 1.81 ARAMARK UNIFORM SERVICE 698.10 ARCTIC GLACIER PREMIUM ICE INC 111.14 ARROWHEAD SCIENTIFIC INC 357.02 ASPEN EQUIPMENT CO 838.07 B & C PLUMBING & HEATING INC 2,162.97 1,359.09 1,610.56 50.00 25,000.00 393.18 876.42 4,090.25 2,148.19 100.00 814.50 2,118.06 1,955.11 40,111.25 I:ATirATilXU]L[C7 CITY OF HUTCHINSON Council Check Register Account Description Business Unit OPERATING SUPPLIES CIVIC ARENA CONTRACT REPAIR & MAINTENANC LIQUOR OPERATIONS CENTRAL GARAGE REPAIR PARK ADMINISTRATION ACCRUED LIFE INSURANCE PAYROLL FUND B/S COMMUNICATIONS INFORMATION SERVICES ADMIN PRINTING & PUBLISHING FINANCE - ADMINISTRATION TRAVEL SCHOOL CONFERENCE WASTEWATER ADMINISTRATION CONTRACT REPAIR & MAINTENANC LIQUOR OPERATIONS CLEANING SUPPLIES HATS OPERATIONS COST OF MIX & SOFT DRINKS LIQUOR OPERATIONS OPERATING SUPPLIES INVESTIGATION CENTRAL GARAGE REPAIR STREETS & ALLEYS PROFESSIONAL SERVICES EVENTS CENTER ADM. RECEIVED NOT VOUCHERED COMPOST FUND B/S BAILEY NURSERIES, INC REPAIR & MAINTENANCE SUPPLIES PARK ADMINISTRATION BERNICK'S FOOD PRODUCTS - CONCESSION CONCESSIONS BERRY, DAWN OTHER REVENUES RECREATION BLDG. & POOL BIOBUSINESS ALLIANCE OF MN OTHER CONTRACTUAL UNALLOCATED GENERAL BLACK GOLD ENVIRONMENTAL SERVI REPAIR & MAINTENANCE SUPPLIES HATS OPERATIONS BRANDON TIRE CO CENTRAL GARAGE REPAIR PARK ADMINISTRATION BRAUN INTERTEC CORP PROFESSIONAL SERVICES LET #111-01 School Rd NW Imp BROCK WHITE CO REPAIR & MAINTENANCE SUPPLIES AIRPORT BROWN, MELANIE OTHER REVENUES RECREATION BLDG. & POOL BRYAN STREICH TRUCKING FREIGHT COMPOST MANUFACTURING BUSHMAN, RAQUEL OPERATING SUPPLIES TOURNAMENTS BUSINESSWARE SOLUTIONS CONTRACT REPAIR & MAINTENANC POLICE ADMINISTRATION C & L DISTRIBUTING COST OF SALES -BEER LIQUOR OPERATIONS 349.50 CALIFORNIA CONTRACTORS SUPPLIE REPAIR & MAINTENANCE SUPPLIES STREETS & ALLEYS 27.87 CENTRAL HYDRAULICS RECEIVED NOT VOUCHERED COMPOST FUND B/S 0 0 171348 7/10/2012 76.95 WASTEWATER ADMINISTRATION CENTRAL LANDSCAPE SUPPLY 171349 7/10/2012 5,268.96 AUTOMOTIVE REPAIR CHEMISOLV CORP 171350 7/10/2012 454.23 MENS SLOWPITCH SOFTBALL CMK SERVICES LLC 171351 7/10/2012 64.00 CONTRACT REPAIR & MAINTENANC EVERGREEN BLDG ADM COFFEE COMPANY 171352 7/10/2012 50.88 SMALL TOOLS CROW RIVER AUTO & TRUCK REPAIR 171353 7/10/2012 24.05 COMPOST FUND B/S CROW RIVER GLASS & SIGNS 171354 7/10/2012 5,360.00 TRAVEL SCHOOL CONFERENCE CROW RIVER OFFICIALS ASSN 171355 7/10/2012 2,682.00 PARK ADMINISTRATION CROW RIVER SIGNS 171356 7/10/2012 350.00 CITY ENGINEER CUSTOMIZED FIRE RESCUE TRAININ 171357 7/10/2012 270.76 OPERATING SUPPLIES DAAK REFRIGERATION 171358 7/10/2012 3,794.35 RECREATION BLDG. & POOL DAY DISTRIBUTING 171359 7/10/2012 1,313.34 ACCRUED DEFERRED COMP DPC INDUSTRIES INC 171360 7/10/2012 173.24 DYNA SYSTEMS 171361 7/10/2012 132.95 EBERT, DICK 171362 7/10/2012 131.46 ECOLAB PEST ELIM 171363 7/10/2012 4,485.00 EHLERS & ASSOCIATES INC 171364 7/10/2012 919.02 ELECTRO WATCHMAN 171365 7/10/2012 2,142.84 ESS BROTHERS & SONS 171366 7/10/2012 292.05 EXNER, KENT 171367 7/10/2012 630.00 EXTREME BEVERAGE LLC 171368 7/10/2012 36.21 FARM -RITE EQUIPMENT 171369 7/10/2012 386.67 FAST WATER PROMOTIONS LLC 171370 7/10/2012 306.24 FASTENAL COMPANY 171371 7/10/2012 261.84 FINANCE & COMMERCE 171372 7/10/2012 4,794.00 FIRE SAFETY USA, INC 171373 7/10/2012 45.10 FIRST CHOICE FOOD & BEVERAGE 5 171374 7/10/2012 57.03 G & K SERVICES 171375 7/10/2012 107.25 GEB ELECTRICAL INC 171376 7/10/2012 129.95 GENIE DRAIN CLEANING 171377 7/10/2012 70.56 GODFATHER'S PIZZA 171378 7/10/2012 87.32 GOODIN COMPANY 171379 7/10/2012 44.07 GRAINGER 171380 7/10/2012 552.65 H.A.R.T. 171381 7/10/2012 404.34 HACH COMPANY 0 OPERATING SUPPLIES TREE INVENTORY CHEMICALS & PRODUCTS WASTEWATER ADMINISTRATION OTHER CONTRACTUAL STREETS & ALLEYS OPERATING SUPPLIES HCDC -EDA AUTOMOTIVE REPAIR POLICE PATROL ADMINISTRATIO BUILDING REPAIRS CHURCH - 105 2nd Ave SE OTHER CONTRACTUAL MENS SLOWPITCH SOFTBALL OPERATING SUPPLIES YOUTH BASEBALL AND SOFTBALI TRAVEL SCHOOL CONFERENCE FIRE - ADMINISTRATION CONTRACT REPAIR & MAINTENANC EVERGREEN BLDG ADM COST OF SALES -BEER LIQUOR OPERATIONS CHEMICALS & PRODUCTS WATER ADM SMALL TOOLS WASTEWATER ADMINISTRATION UNIFORMS & PERSONAL EQUIP WATER ADM RECEIVED NOTVOUCHERED COMPOST FUND B/S PROFESSIONAL SERVICES TAX INCREMENT B/S CONTRACT REPAIR & MAINTENANC LIQUOR OPERATIONS REPAIR & MAINTENANCE SUPPLIES WASTEWATER ADMINISTRATION TRAVEL SCHOOL CONFERENCE CITY ENGINEER COST OF MIX & SOFT DRINKS LIQUOR OPERATIONS CENTRAL GARAGE REPAIR PARK ADMINISTRATION OPERATING SUPPLIES RECREATION BLDG. & POOL REPAIR & MAINTENANCE SUPPLIES STREETS & ALLEYS ADVERTISING CITY ENGINEER SMALL TOOLS RURAL FIREFIGHTERS OFFICE SUPPLIES WATER ADM OPERATING SUPPLIES REFUSE& RECYCLING CONTRACT REPAIR & MAINTENANC CIVIC ARENA CONTRACT REPAIR & MAINTENANC EVERGREEN BLDG ADM OPERATING SUPPLIES RECREATION BLDG. & POOL EQUIPMENT PARTS WATER ADM SAFETY SUPPLIES HATS OPERATIONS ACCRUED DEFERRED COMP PAYROLL FUND B/S PROFESSIONAL SERVICES WASTEWATER ADMINISTRATION 0 0 0 171382 7/10/2012 426.27 HANNEMAN, MARK TRAVEL SCHOOL CONFERENCE POLICE PATROL ADMINISTRATIO 171383 7/10/2012 40.00 HANSEN, ANGIE CIVIC ARENA -FEES & RENTS CIVIC ARENA 171384 7/10/2012 1,460.00 HANSON & VASEK CONSTRUCTION CONTRACT REPAIR & MAINTENANC STREETS & ALLEYS 171385 7/10/2012 2,708.40 HAWKINS INC CHEMICALS & PRODUCTS RECREATION BLDG. & POOL 171386 7/10/2012 1,704.53 HENRYS FOODS INC FOOD PRODUCTS- CONCESSION CONCESSIONS 171387 7/10/2012 4,816.24 HILLER CARPET CONTRACT REPAIR & MAINTENANC HATS OPERATIONS 171388 7/10/2012 153.62 HILLYARD / HUTCHINSON REPAIR & MAINTENANCE SUPPLIES EVENTS CENTER ADM. 171389 7/10/2012 137.84 HIRSHFIELD'S INC REPAIR & MAINTENANCE SUPPLIES CIVIC ARENA 171390 7/10/2012 183,046.39 HJERPE CONTRACTING IMPROV OTHER THAN BLDGS LET #112-01 5TH AVE NW IMPRI 171391 7/10/2012 2,378.92 HOLT MOTORS INC CENTRAL GARAGE REPAIR STREETS & ALLEYS 171392 7/10/2012 500.00 HUTCHINSON AREA CHAMBER OF COP REFUNDS & REIMBURSEMENTS UNALLOCATED GENERAL 171393 7/10/2012 4,324.00 HUTCHINSON AREA HEALTH CARE COMMON AREA MAINTENANCE EVENTS CENTER ADM. 171394 7/10/2012 5,786.54 HUTCHINSON CONVENTION & VISITO LODGING TAX REIMBURSEMENT UNALLOCATED GENERAL 171395 7/10/2012 1,828.41 HUTCHINSON SENIOR ADVISORY BOA OTHER CONTRACTUAL SENIOR CITIZENS CENTER 171396 7/10/2012 503.23 HUTCHINSON WHOLESALE RECEIVED NOT VOUCHERED COMPOST FUND B/S 171397 7/10/2012 5.00 HUTCHINSON, CITY OF MISCELLANEOUS POLICE BUILDING MAINTENANCI 171398 7/10/2012 4,000.00 HUTCHINSON, CITY OF MISCELLANEOUS ATM MACHINE 171399 7/10/2012 29.68 HYVEE FLORAL SHOP MISCELLANEOUS CITY ADMINISTRATOR - ADM 171400 7/10/2012 500.00 INH PROPERTY MANAGEMENT & EASI CONTRACT REPAIR & MAINTENANC WATER ADM 171401 7/10/2012 348.20 INTERSTATE BATTERY SYSTEM MINN EQUIPMENT PARTS STREETS & ALLEYS 171402 7/10/2012 807.18 JACK'S UNIFORMS & EQUIPMENT UNIFORMS & PERSONAL EQUIP POLICE PATROL ADMINISTRATIO 171403 7/10/2012 19,474.66 JEFF MEEHAN SALES INC. ACCRUED COMMISSIONS PAYABLE COMPOST FUND B/S 171404 7/10/2012 187.05 JIM'S GARDEN SERVICE OTHER CONTRACTUAL STREETS & ALLEYS 171405 7/10/2012 784.65 JJ TAYLOR DIST OF MN COST OF SALES -BEER LIQUOR OPERATIONS 171406 7/10/2012 125.00 JOCHUM, DANIEL SAFETY SUPPLIES BUILDING INSPECTION 171407 7/10/2012 128.50 JOES SPORT SHOP OPERATING SUPPLIES TOURNAMENTS 171408 7/10/2012 30.00 JURGENSON, NANCY RENTS -REC BLDG RECREATION BLDG. & POOL 171409 7/10/2012 34.00 KABLE, ELISABETH RECREATION ACTIVITY FEES RECREATION BLDG. & POOL 171410 7/10/2012 312.60 KEEPRS, INC OPERATING SUPPLIES POLICE PATROL ADMINISTRATIO 171411 7/10/2012 209.99 KRAMES STAYWELL LLC OPERATING SUPPLIES RECREATION BLDG. & POOL 171412 7/10/2012 377.67 L & P SUPPLY CO CENTRAL GARAGE REPAIR PARK ADMINISTRATION 171413 7/10/2012 2,566.49 LANDSCAPE CONCEPTS, INC CONTRACT REPAIR & MAINTENANC STREETS & ALLEYS 171414 7/10/2012 90.00 LAUER, BURNELL OTHER CONTRACTUAL SOCCER 171415 7/10/2012 4,080.00 LEAGUE OF MN CITIES -INS TRUST INSURANCE- DEDUCTIBLE COST UNALLOCATED GENERAL 0 171416 171417 171418 171419 171420 171421 171422 171423 171424 171425 171426 171427 171428 171429 171430 171431 171432 171433 171434 171435 171436 171437 171438 171439 171440 171441 171442 171443 171444 171445 171446 171447 171448 171449 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 7/10/2012 147.44 185.00 35.00 24,241.26 1,586.77 701.13 104.34 1,130.11 925.06 1,024.35 128.45 2,077.60 3,120.00 4, 2, 11, 1, MCLEOD COOP POWER ASSN 0 AIRPORT 0 2,706.57 LEAGUE OF MN CITIES -INS TRUST INSURANCE - DEDUCTIBLE COST UNALLOCATED GENERAL 50.00 LENZ, LANA OTHER REVENUES RECREATION BLDG. & POOL 895.00 LEVINE, ERIC TRAVEL SCHOOL CONFERENCE WATER ADM 34,350.85 LOCHER BROTHERS INC COST OF SALES -BEER LIQUOR OPERATIONS 533.20 LTP ENTERPRISES CONTRACT REPAIR & MAINTENANC WATER ADM 94.39 M -R SIGN SIGNS & STRIPPING MATERIALS STREETS & ALLEYS 147.44 185.00 35.00 24,241.26 1,586.77 701.13 104.34 1,130.11 925.06 1,024.35 128.45 2,077.60 3,120.00 4, 2, 11, 1, MCLEOD COOP POWER ASSN UTILITIES AIRPORT MCLEOD COUNTY COURT ADMINISTR� OTHER REVENUES POLICE ADMINISTRATION MCLEOD COUNTY FAIR ADVERTISING LIQUOR OPERATIONS MCLEOD COUNTY HIGHWAY DEPT. STREET MAINT.MATERIALS STREETS & ALLEYS MCLEOD COUNTY SHERIFF'S OFFICE SMALLTOOLS POLICE ADMINISTRATION MCRAITH, JOHN OTHER CONTRACTUAL SPECIAL EVENTS MEHR, BRIAN TRAVEL SCHOOL CONFERENCE MENARDS HUTCHINSON RECEIVED NOT VOUCHERED METRO ATHLETIC SUPPLY INC OPERATING SUPPLIES METRO SWIM SHOP OPERATING SUPPLIES MIDWEST MACHINERY CO MINNESOTA VALLEY TESTING LAB MIX MANUFACTURING 275.00 MWOA 410.00 NORTH SHORE ANALYTICAL INC 337.27 NORTHERN BUSINESS PRODUCTS 273.59 NORTHERN STATES SUPPLY INC 340.99 NU- TELECOM 560.65 NUSS TRUCK & EQUIPMENT 190.10 O'REILLYAUTO PARTS 256.46 OFFICE DEPOT 114.30 OFFICE OF ENTERPRISE TECHNOLOG 663.39 OUTDOOR MOTION 146.48 PAUSTIS & SONS WINE CO 416.45 PHILLIPS WINE & SPIRITS 881.71 PINE VALLEY ECO PRODUCTS 11100 PIONEER 500.00 POSTMASTER RECEIVED NOT VOUCHERED OTHER CONTRACTUAL RECEIVED NOT VOUCHERED TRAVEL SCHOOL CONFERENCE OTHER CONTRACTUAL OPERATING SUPPLIES EQUIPMENT PARTS COMMUNICATIONS CENTRAL GARAGE REPAIR CENTRAL GARAGE REPAIR OFFICE SUPPLIES COMMUNICATIONS OPERATING SUPPLIES COST OF SALES- LIQUOR COST OF MIX & SOFT DRINKS CHEMICALS & PRODUCTS SIGNS & STRIPPING MATERIALS 1:161ir_TC14 WASTEWATER ADMINISTRATION COMPOST FUND B/S GIRLS FASTPITCH SOFTBALL RECREATION BLDG. & POOL COMPOST FUND B/S WASTEWATER ADMINISTRATION COMPOST FUND B/S WASTEWATER ADMINISTRATION WASTEWATER ADMINISTRATION LIQUOR OPERATIONS STREETS & ALLEYS POLICE ADMINISTRATION STREETS & ALLEYS PARK ADMINISTRATION STREETS & ALLEYS MOTOR VEHICLE - ADMINISTRAT POLICE PATROL ADMINISTRATIO LIQUOR OPERATIONS LIQUOR OPERATIONS STREETS & ALLEYS PARK ADMINISTRATION STORM WATERADMINISTRATIOI 0 0 171450 7/10/2012 2,003.89 COMPOST FUND B/S PREMIER TECH PACKAGING 171451 7/10/2012 138.46 FREIGHT PRO AUTO & TRANSMISSION REPAIR 171452 7/10/2012 1,467.39 CONCESSIONS PRO CARE SERVICES INC 171453 7/10/2012 116.29 TRAVEL SCHOOL CONFERENCE QUILL CORP 171454 7/10/2012 1,934.30 HATS OPERATIONS R.J.L. TRANSFER 171455 7/10/2012 10,553.41 CONTRACT REPAIR & MAINTENANC RAPIDS PROCESS EQUIPMENT INC 171456 7/10/2012 228.00 STORM WATER ADMINISTRATIOI ROCK STAR GOURMET INC 171457 7/10/2012 961.52 TRAVEL SCHOOL CONFERENCE RUNNING'SSUPPLY 171458 7/10/2012 50.00 PARK ADMINISTRATION RUTKOWSKI, FRANK 171459 7/10/2012 75.00 OPERATING SUPPLIES SAFE KIDS WORLDWIDE 171460 7/10/2012 2,592.89 PARK ADMINISTRATION SAM'S CLUB 171461 7/10/2012 23,340.33 CONTRACT REPAIR & MAINTENANC POLICE BUILDING MAINTENANCI SCHMELING OIL CO 171462 7/10/2012 34.00 CONTRACT REPAIR & MAINTENANC STREETS & ALLEYS SCHUETZ, MOLLIE 171463 7/10/2012 35.00 SCHWANKE, MAVIS 171464 7/10/2012 428.25 SCOTT'S WINDOW CLEANING SERVIC 171465 7/10/2012 66.60 SEBORA, MARC 171466 7/10/2012 2,677.94 SEH 171467 7/10/2012 68.00 SETLEY, MELANIE 171468 7/10/2012 6,893.16 SOUTHERN WINE & SPIRITS OF MN 171469 7/10/2012 10.00 SOUTHWEST MN CHAPTER OF ICC 171470 7/10/2012 2,244.30 SPRINT 171471 7/10/2012 756.23 STAPLES ADVANTAGE 171472 7/10/2012 72.80 STAR TRIBUNE 171473 7/10/2012 1,000.00 STEELE COUNTY COURT ADMIN 171474 7/10/2012 523.66 STRATEGIC EQUIPMENT 171475 7/10/2012 267.69 STROBES N MORE 171476 7/10/2012 125.00 SZYMANSKI, THOMAS 171477 7/10/2012 20.00 TAPS -LYLE SCHROEDER 171478 7/10/2012 84.78 TARGET BANK 171479 7/10/2012 2,999.00 TEK MECHANICAL 171480 7/10/2012 250.52 TIMBERLAKE LODGE 171481 7/10/2012 441.69 TIMBERLAKE LODGE 171482 7/10/2012 2,922.19 TRI -CITY PAVING 171483 7/10/2012 50.00 TWARDY, STACY 9 RECEIVED NOT VOUCHERED COMPOST FUND B/S RECEIVED NOT VOUCHERED COMPOST FUND B/S CONTRACT REPAIR & MAINTENANC HATS OPERATIONS OFFICE SUPPLIES INVESTIGATION FREIGHT LIQUOR OPERATIONS PROFESSIONAL SERVICES WASTEWATER ADMINISTRATION FOOD PRODUCTS- CONCESSION CONCESSIONS SAFETY SUPPLIES WASTEWATER ADMINISTRATION OTHER REVENUES RECREATION BLDG. & POOL TRAVEL SCHOOL CONFERENCE POLICE PATROL ADMINISTRATIO FOOD PRODUCTS - CONCESSION CONCESSIONS MOTOR FUELS & LUBRICANTS HATS OPERATIONS RECREATION ACTIVITY FEES RECREATION BLDG. & POOL PARK FEES PARK ADMINISTRATION CONTRACT REPAIR & MAINTENANC LIQUOR OPERATIONS TRAVEL SCHOOL CONFERENCE LEGAL PROFESSIONAL SERVICES STORM WATER ADMINISTRATIOI RECREATION ACTIVITY FEES RECREATION BLDG. & POOL COST OF SALES- LIQUOR LIQUOR OPERATIONS TRAVEL SCHOOL CONFERENCE BUILDING INSPECTION COMMUNICATIONS POLICE PATROL ADMINISTRATIO CLEANING SUPPLIES PARK ADMINISTRATION DUES & SUBSCRIPTIONS POLICE ADMINISTRATION OTHER REVENUES POLICE ADMINISTRATION OPERATING SUPPLIES LIQUOR OPERATIONS REPAIR & MAINTENANCE SUPPLIES CITY FIRE UNIFORMS & PERSONAL EQUIP PARK ADMINISTRATION PROFESSIONAL SERVICES EVENTS CENTER ADM. OPERATING SUPPLIES RECREATION BLDG. & POOL CONTRACT REPAIR & MAINTENANC POLICE BUILDING MAINTENANCI TRAVEL SCHOOL CONFERENCE WASTEWATER ADMINISTRATION TRAVEL SCHOOL CONFERENCE WASTEWATER ADMINISTRATION CONTRACT REPAIR & MAINTENANC STREETS & ALLEYS OTHER REVENUES RECREATION BLDG. & POOL 171484 7/10/2012 1,893.57 MOTOR VEHICLE - ADMINISTRAT URBAN COMMUNICATIONS 171485 7/10/2012 1,076.87 CONCESSIONS USPS - HASLER 171486 7/10/2012 69.95 OPERATING SUPPLIES VERTECH SOLUTIONS & SERVICES 171487 7/10/2012 17,627.40 COMPOST FUND B/S VIKING BEER 171488 7/10/2012 3,160.50 TRAVEL SCHOOL CONFERENCE VIKING COCA COLA 171489 7/10/2012 247.83 LET #3 11 -04 2011 Pavement ME VINOCOPIA INC 171490 7/10/2012 38.00 EQUIPMENT PARTS VISSER, SHANNON 171491 7/10/2012 96.62 WAL -MART COMMUNITY 171492 7/10/2012 3,825.00 WCCO -AM 171493 7/10/2012 4,316.00 WEBB PALLET 171494 7/10/2012 10,750.00 WELLNESS INC. 171495 7/10/2012 7,356.00 WESTAFER ENTERPRISES 171496 7/10/2012 298.32 WILLERS, KARL 171497 7/10/2012 3,137.40 WINE COMPANY, THE 171498 7/10/2012 14,731.52 WM MUELLER & SONS 171499 7/10/2012 152,780.30 WM MUELLER & SONS 171500 7/10/2012 1,364.65 WORK CONNECTION, THE 171501 7/10/2012 966.22 ZEP MANUFACTURING CO 171502 7/10/2012 35.20 ZIEGLER, DOREEN Grand Total Payment Instrument Totals Check Total 753,087.81 Total Paymei 753,087.81 0 RENTALS CIVIC ARENA POSTAGE MOTOR VEHICLE - ADMINISTRAT CONTRACT REPAIR & MAINTENANC EVERGREEN BLDG ADM COST OF SALES -BEER LIQUOR OPERATIONS FOOD PRODUCTS- CONCESSION CONCESSIONS COST OF SALES -WINE LIQUOR OPERATIONS RECREATION ACTIVITY FEES RECREATION BLDG. & POOL OPERATING SUPPLIES FIRE DEPT SHARED COST RECEIVED NOT VOUCHERED COMPOST FUND B/S RECEIVED NOT VOUCHERED COMPOST FUND B/S PROFESSIONAL SERVICES SELF INSURANCE FUND B/S ACCRUED COMMISSIONS PAYABLE COMPOST FUND B/S TRAVEL SCHOOL CONFERENCE POLICE PATROL ADMINISTRATIO COST OF SALES -WINE LIQUOR OPERATIONS IMPROV OTHER THAN BLDGS LET #3 11 -04 2011 Pavement ME IMPROV OTHER THAN BLDGS LET #1 11 -01 School Rd NW Imp OTHER CONTRACTUAL COMPOST MANUFACTURING EQUIPMENT PARTS STREETS & ALLEYS CIVIC ARENA -FEES & RENTS CIVIC ARENA R TO: Mayor & City Council FROM: Kent Exner, DPW /City Engineer RE: Public Hearing for Les Kouba Parkway Improvements Phase 2 (Letting No. 8 /Project No. 12 -09) DATE: July 10, 2012 City staff has met with property owners adjacent to the proposed project referenced above. At these meetings, project design details and estimated assessment amounts were provided to them and any questions or comments were addressed. Following a project overview by City staff and potential public comments, we will request that the City move forward with the final preparation of project plans /specifications and future advertisement for bids. The anticipated bid opening date is August 9, 2012, at 10:30 AM. We recommend that the attached Resolutions be approved. cc: Jeremy Carter, City Administrator $ Ca-) RESOLUTION NO. 14025 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 8/PROJECT NO. 12 -09 WHEREAS, a resolution of the City Council adopted the 26th day of June, 2012, fixed a date for a Council Hearing on the following improvements: Les Kouba Parkway NW (Montana to Lind) and Lind Street NW (Les Kouba Pkwy to 3rd Ave) roadway construction and utility infrastructure installations by construction of storm sewer, drain tile, reclamation /removals, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous surfacing, street lighting, landscaping, restoration and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is necessary, cost - effective, and feasible as detailed in the feasibility report. 2. Such improvement is hereby ordered as proposed in the resolution adopted the 26th day of June 2012. 3. Such improvement has no relationship to the comprehensive municipal plan. 4. Kent Exner is hereby designated as the engineer for this improvement. The engineer shall prepare plans and specifications for the making of such improvement. 5. The City Council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of tax exempt bonds. Adopted by the Council this 10th day of July 2012. Mayor: Steven W. Cook City Administrator: Jeremy J. Carter 15 (a) RESOLUTION NO. 14026 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO.8 /PROJECT NO. 12 -09 WHEREAS, the Directorof Engineering /Public Works has prepared plans and specifications for the following described improvement: Les Kouba Parkway NW (Montana to Lind) and Lind Street NW (Les Kouba Pkwy to 3rd Ave) roadway construction and utility infrastructure installations by construction of storm sewer, drain tile, reclamation /removals, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous surfacing, street lighting, landscaping, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering /Public Works shall prepare and cause to be inserted in the official newspaper, the City of Hutchinson Web -Site and in Finance and Commerce, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the Director of Engineering /Public Works until 10:30 am on Thursday, August 9, 2012, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and Director of Engineering /Public Works, will then be tabulated, and the responsibility of the bidders will be considered by the Council at 6:00 pm on Tuesday, September 11, 2012 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering /Public Works and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 10th day of July 2012. Mayor: Steven W Cook City Administrator: Jeremy J. Carter SCa-) 0 C TO: Mayor & City Council FROM: Dan Jochum, Planning Director RE: Allis Chalmers Show Signage Request DATE: July 10, 2012 Please see the attached map regarding where the Upper Midwest Allis Chalmers Show would like to place off - premise signage to direct people to the Fairgrounds for the Orange Spectacular. This is the first year the show is being held at the Fairgrounds and the Club wants to make sure visitors are able to find the Fairgrounds since they are not right off of the Highway. • The Club is requesting two signs that will be no larger than 4'x4'. The first sign is proposed to be located at Highway 15 South and Century Avenue and will say "A -C Show Main Entrance ". The second sign is proposed to be at Highway 15 South and Denver Avenue and will say "A -C Show Camper Entrance ". Staff discussed with the AC Club that these signs should not be advertising signs but rather directional signage to the event. Staff feels that the proposed signs are directional in nature and not advertising in nature. Staff recommends approval of the signage request to allow two off - premise signs to the Upper Midwest Allis Chalmers Club with the following conditions: 1) The signs can be no larger than 4'x4' 2) The signs will say "A -C Show Main Entrance" and "A -C Show Camper Entrance" and be placed according to the attached map. 3) Any signs placed in MnDOT right -of -way will need to be approved by MnDOT. 4) The signs shall be removed at the conclusion of the show. I� Memo TO: Mayor and City Council From: Jean Ward, HRA Executive Director °f ✓/ �� Date: June 27, 2012 Re: Consideration of Resolution to approve Hutchinson HRA administration of NE Neighborhood and SW Neighborhood SCDP, approval of Procedural Guidelines for Owner Occupied Rehab Northeast and SW Neighborhood Project, approval of City of Hutchinson Section 3 Plan relating to NE Neighborhood and SW neighborhood Project and approval of execution of Small Cities Development Program Grant Agreement CDAP -11- 0023 -0-FY12 The Department of Employment and Economic Development has approved our SCDP short application to rehab ten homes in the Northeast or SW Neighborhoods of Hutchinson. In order to proceed with the project, we need to execute the grant agreement, approve the administrative contract between the City of Hutchinson and Hutchinson HRA, approve updated Procedural Guidelines for the Northeast Neighborhood, and approve a Section 3 Plan relating to implementation of SCDP Grant CDAP -11 -0023 -0-FY12. Attached for your review and consideration is: 1. An updated administrative contract between the City of Hutchinson and the Hutchinson HRA for administration of this grant and all program income. 2. Updated Procedural Guidelines for the NE and SW Neighborhood 3. City of Hutchinson Section 3 Plan related to SCDP Grant #CDAP -11 -0023 -0-FY12 4. The State of Minnesota Department of Employment and Economic Development Small Cities Development Program Grant Agreement # CDAP -11 -0023 -0-FY12. 5. Resolution to Approve Administrative Contract, Approve Procedural Guidelines for Owner Occupied Rehab Northeast and SW Neighborhoods, approve Section 3 Plan, and execute Grant Agreement for SCDP CDAP -11 -0023 -0-FY12. The next step is to obtain environmental clearance approval from DEED. Our goal is to start owner occupied rehab construction in late summer. Thank you for your consideration of these items. II(b) RESOLUTION 14029 APPPROVING AND AGREEING TO ENTER INTO AN ADMINISTRATIVE CONTRACT WITH THE HUTCHINSON HRA FOR THE SCDP NORTHEAST NEIGHBORHOOD and SW NEIGHBORHOOD HOUSING REHABILITATION PROJECT FOR CDAP -11- 0023- 0-FY12 AND APPROVAL OF PROCEDURAL GUIDELINES FOR SCDP OWNER OCCUPIED HOUSING REHABILITATION PROGRAM FOR THE NORTHEAST NEIGHBORHOOD AND SW NEIGHBORHOOD AND APPROVAL OF CITY OF HUTCHINSON SECTION 3 PLAN RELATING TO THE SCDP GRANT CDAP -11- 0023- 0-FY12 AND APPROVAL OF EXECUTION OF SMALL CITIES DEVELOPMENT PROGRAM GRANT AGREEMENT CDAP -I1- 0023 -0-FY 12 WHEREAS, the Housing and Redevelopment Authority in and for the City of Hutchinson, Minnesota submitted an SCDP owner occupied rehab application on behalf of the City of Hutchinson, Minnesota, which has been approved for funding; WHEREAS, the Northeast Neighborhood and SW Neighborhood Owner Occupied Housing Rehabilitation Project will be funded via the Small cities Development Program administered by the Minnesota Department of Employment and Economic Development; NOW THEREFORE BE IT RESOLVED that the City of Hutchinson, Minnesota hereby approves the Administrative Contract Amendment with the HRA to administer the SCDP NE Neighborhood project. BE IT FURTHER RESOLVED that the City of Hutchinson approves the Owner Occupied Rehab Procedural Guidelines for the SCDP Northeast Neighborhood and SW Neighborhood project, and BE IT FURTHER RESOLVED that the City of Hutchinson approves the City of Hutchinson Section 3 Plan relating to the SCDP NE Neighborhood and SW Neighborhood project, and BE IT FURTHER RESOLVED that the City of Hutchinson approves execution of the Small Cities Program Grant Agreement CDAP -09- 0077 -0-FY 10. Adopted by the Hutchinson City Council this 10th day of July, 2012 ATTEST: Jeremy Carter City Administrator Steve Cook Mayor G: /HRA/DTED & SCDP Programs/2012 /CC Resoludon for SCDP NE Neighborhood I I Cb) ADMINISTRATIVE CONTRACT BY AND BETWEEN CITY OF HUTCHINSON, MINNESOTA AND HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF HUTCHINSON THIS CONTRACT for Administrative Services is between the City of Hutchinson, MN hereinafter referred to as the "City" and the Housing and Redevelopment Authority In and For the City of Hutchinson, Minnesota, hereinafter referred to as the "HRA ". WITNESSETH: In consideration of the mutual convenience and agreements contained herein, the City and the HRA agree as follows: I. This contract will commence on July 17, 2012 and will continue until terminated by either party according to Paragraph XVII. II. The HRA agrees to act as the administrative agent for the City of Hutchinson to implement the City's Owner Occupied Housing Rehab Program for the Northeast Neighborhood funded through the Small Cities Development Program, CDAP -11- 0023- 0-FY12. In addition, all program income /generated income from all Housing SCDP programs will be administered by the HRA. III. The HRA will receive financial reimbursement from the administrative fees associated with the grant from the City of Hutchinson's Small Cities Development Program funds. IV. As the administering agent for the above described grant, the HRA agrees to perform all tasks enumerated below in a manner which will meet or exceed the terms and conditions imposed upon the City in the Small Cities Development Program Grant Agreement dated the I" of June, 2012, copies of which are attached as Exhibit A. A. Citizen Participation. Comply with all State and Federal participation requirements. B. Compliance with Federal Regulations. Ensure that the following Federal acts or regulations are complied with: 1. Title VI of the Civil Rights Act of 1964 (P.L> 88 -352) which provides that no person in the United States shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. 2. Title VIII of the Civil Rights Acts of 1968 (P.L. 90 -284), known as the Fair Housing Act of 1968, stating that it is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States and prohibits any person from discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including in any way making unavailable or denying a dwelling to any person because of race color, religion, sex or national origin. II(b) Page 1 of 4 C. Project Planning. Coordinate the preparation of program guidelines, contacts, budgets, and other agreements in a manner consistent with applicable State and Federal laws and regulations for all project activities. D. Implementation. The HRA will implement programs authorized under the Small Cities Development Program Grant within the respective limitations of the grant monies provided and/or in accordance with State and Federal requirements. Homeowner Rehabilitation Financing: Develop procedural guidelines for homeowner rehabilitation and implement them in accordance with Federal and State Standards. This would include, but not be limited, to determination of eligibility, and coordination with housing partners; i.e., lenders, contractors, and homeowners. E. Coordination of other funding sources for the project. The HRA will coordinate other applicable programs for the project such as, but not limited to, rehab funds from Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, Southwest Minnesota Housing Partnership and Rural Development. F. Compliance with Equal Opportunity Regulations. Ensure that compliance with Section 3 of the Housing and Urban Development Act of 1968, Federal Equal Employment Opportunity Act and Executive Orders, and Civil Rights Acts of 1964 is maintained. Also responsible for all Fair Housing and Equal Opportunity recordkeeping requirements by the State of Minnesota. G. Financial Recordkeeping and Control. Keep complete and accurate records of all claims and disbursements in accordance with the following procedures: The HRA will examine each claim and verify that the work has been done and/or materials actually provided for the project. 2. Requisitions for the checks will be prepared by the HRA and submitted to the City Finance Director for payment. 3. The City will issue all checks. 4. The HRA will submit a voucher and supporting documentation to the City Finance Director for review who will obtain proper signatures and submit requisitions to the State. V. The City and HRA mutually agree that a mortgage shall be executed in the name of the City of Hutchinson as mortgagee for each loan of monies provided under the Small Cities Development Program to individuals for the purpose of home rehabilitation. In regard to such mortgages and assignments, the HRA shall prepare all documents and obtain all necessary signatures required I I ( h) Page 2 of 4 for proper execution of such documents and file a secured interest with the McLeod County Recorder's Office. VI. For the purposed of this contract, the HRA shall be deemed an independent contractor and not an employee of the City. Any and all employees of the HRA or other persons who engages in the performance of any work or services required by the HRA under this contract, shall not be considered employees of the City and any and all claims that may or might arise on be half of said employees or other persons as a consequence of any act or admission on the part of said employees or the HRA shall in no way be the obligation or responsibility of the City. VII. The HRA will subcontract with the City of Hutchinson Building Department to provide inspections, work write -ups, and construction oversight in the implementation of the grant program. The HRA will subcontract with R & S Inspections, Inc. for lead inspections or lead assessment and clearances. VIII. The HRA specifically agrees to comply with the requirements of 24 CFR 135.20 and to provide such copies of said regulations as may be necessary for the information of parties to contracts as required to contain the Section III clause as set forth in 24 CFR 135.20. IX. Any alteration, variation, modification, or waiver of the provisions of this contract shall be valid only after is has been provided in writing, duly signed by both parties, and attached to the original of this contract. X. The waiver of any of the rights and/or remedies arising under the terms of this contract on any occasion by either party hereto shall not constitute a waiver of any rights and/or remedies in respect to any subsequent breach or default of the terms of this contract. The rights and remedies provided or referred to under the terms of this agreement are cumulative and not mutually exclusive. XI. This contact shall constitute the entire agreement between the parties and shall supersede all prior or written negotiations. XII. The City shall have full access to all records relating to the performance of this agreement. XIII. In performing the provisions of this contract, the HRA agrees to comply with all Federal, State, or local laws all applicable rules, regulations, or standards established by any agency of such governmental units which are now or hereafter promulgated. XIV. In consideration of the prompt and efficient carrying out of the above, the City agrees to reimburse the HRA, for project administration related costs in carrying out the above activities up to an amount not to exceed the maximum allowable as specified by the State of Minnesota, Department of Employment and Economic Development, Community Development Division. During the term of the contract, said monies are to come solely from the Administration funds totally available for the administration for the City of Hutchinson's Small Cities Development Page 3 of 4 1\ M Program, Northeast Neighborhood Rehabilitation Project. For the purposes of this contract, project administration related costs are defined as follows: A. Approved project administration fee of $2,600 per owner occupied rehab project to cover project administration duties including, but not limited to, applicant and loan file, HQS inspection, work write -ups, construction inspection fees, bid solicitation, contract administration, and draw requests. Lead inspection and lead clearance tests are included in the project loan costs. After close out of the grant, project administration fees to administer the rehab revolving loan fund, may be amended by revising the fee schedule on a yearly basis. XV. Should any of the above provisions be subsequently determined by a court of competent jurisdiction to be in violation of any Federal or State laws or to be otherwise invalid, both parties agree that only those provisions so adjudged shall be invalid and that the remainder of this contract shall remain in full force and effect. XVI. ANTITRUST. Contractor (HRA) hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. XVII. The City reserves the right to terminate this contract if the HRA inexcusably fails to perform any of the provisions hereof. Such termination shall occur thirty (30) days after receipt by the HRA of written notice specifying the grounds thereof, unless, prior to that date, the HRA has cured the alleged non - performance of the provisions of this contract. The HRA may terminate this contract with thirty (30) days written notice. IN WITNESS WHERE OF, the parties here to have caused this contract to be duly executed. CITY OF HUTCHINSON MAYOR, CITY OF HUTCHINSON ATTEST: :• BY: BY: CITY ADMINISTRATOR G:/HRA /DTED & SCDP Programs/2012 SCMADWNCONTRACT HOUSING & REDEVELOPMENT AUTHORITY IN & FOR THE CITY OF HUTCHINSON, MN HRA CHAIRPERSON HRA EXECUTIVE DIRECTOR Page 4 of 4 / CITY OF HUTCHINSON, MINNESOTA SCDP OWNER OCCUPIED HOUSING REHABILITATION PROGRAM NORTHEAST NEIGHBORHOOD OR SW PROCEDURAL GUIDELINES The City of Hutchinson through the NE Neighborhood or the SW Neighborhood SCDP owner occupied housing rehabilitation program will provide assistance to eligible applicants for the rehabilitation of properties utilizing Small Cities Development Program funds. The methods of program distribution and eligibility criteria are incorporated in this procedural guide. No person or business will be denied participation in the rehabilitation program due to their race, color, creed, religion, national origin, sex, marital status, reliance on public assistance, age, disability, or familial status. The Hutchinson Housing and Redevelopment Authority, on behalf of the City of Hutchinson, has been appointed Project Administrator. PROGRAM OBJECTIVES FEDERAL OBJECTIVE: The primary objective is to provide financial assistance to low to moderate - income individuals who reside in the target area whose homes are in need of rehabilitation. 2. SECONDARY IMPACTS: Secondary impact is to encourage the preservation of housing and to improve the Northeast Neighborhood. PROGRAM ADMINISTRATION 1. GENERAL ADMINISTRATOR: The City of Hutchinson is contracting with the Hutchinson Housing & Redevelopment Authority (HRA). The Hutchinson HRA is responsible for all phases of the administration of this Small Cities Development single purpose program. The City of Hutchinson will be the Fiscal Agent and responsible for all financial and progress reports. The Hutchinson HRA will have principle responsibility for completion of the Environmental Assessment and development/submission of all required policies and procedures prior to commencement of program delivery. 2. FIELD ADMINISTRATOR: The Hutchinson HRA will be providing the field administration services. The Hutchinson HRA is responsible overall for program delivery including: determination of household eligibility, application completion and loan approval, and rehab loan administration. The Hutchinson HRA has a contract with the City of Hutchinson Building Department for HQS inspection services, work write -ups, rehab project interim and final inspections. The Hutchinson HRA also has a contract with R & S Inspection, Inc. for lead inspections or lead assessments and lead clearance tests. 3. FEDERAL COMPLIANCE: The City and the Hutchinson HRA will share responsibility to comply with Federal Regulations regarding the implementation and administration of this Small Cities Development Project. 4. DATA PRIVACY: Information on program Applicants shall be gathered and released in accordance with the Minnesota Data Practices Act. All information including names, addresses, and the amount of assistance received are considered public data under the Minnesota Data Practices Act. Any other information provided to the program is considered private data. Private data may be released to the following agencies or organizations: City Council of Hutchinson, City of Hutchinson auditors, the Hutchinson HRA, Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, Rural Page 1 of 19 11 (0 Development, SWMNHSP, Lending Institutions and other matching fund agencies, DEED, and HUD. Private data cannot be released to anyone else unless a consent form is completed granting permission. 5. EVIDENCE OF FRAUD: Any administering party participating in the Program shall refer evidence of fraud, misrepresentation, collusion or other misconduct on the part of the Applicant or contractors in connection with the operation of the Program to the State of Minnesota Attorney General for investigation and possible legal action. CONFLICT OF INTEREST 1. GENERAL CONDITIONS: No current or member within the last twelve months of the governing body of the locality and no official, employee, or agent of the local government, nor the Hutchinson HRA, who exercises policy decision - making function or responsibilities in connection with the planning and implementation of the program shall directly or indirectly benefit from this program with the following exception: The authority may make a grant or loan from these funds to a member of the local governing body or public officer of the authority who applies, if the public officer first discloses, as part of the official minutes of a meeting of the authority, that the public officer has applied for the funds, the public officer abstains from voting on the public officer's application and that the City Attorney and DEED have approved an exception to the conflict of interest rules. This prohibition shall continue for one year after an individual's relationship with the Local Government or the Hutchinson HRA ceases. Specific prohibitions are as follows: a. Program Participation: No member of the governing body of the locality, no official, employee, or agent of the local unit of government or the Hutchinson HRA, as defined above, shall accrue direct or indirect program benefits. b. Contractual Relationships: No member of the governing body of the locality, no official, employee, or agent of the local unit of government or the Hutchinson HRA, as defined above, shall obtain direct or indirect interest in any contract, subcontract, or agreement in any activity in this program that provides financial compensation for services. C. Prohibition Extensions: This prohibition extends to contracts or direct benefits in which a spouse, minor child or business partner may have personal or financial interest. 2. DETERMINATION OF CONFLICT OF INTEREST: When questions arise or a situation is unclear an initial Opinion of Conflict of Interest shall be sought from the City Attorney. That Attorney's Opinion will utilize the Conflict of Interest Worksheet (Appendix A) attached to these guidelines and will outline areas that the situation is within or outside applicable Federal Regulations 24 CFR 570, Uniform Administration Requirements and State Statutes 412.311 or 471 -87 through 471.89. The Attorney's Opinion shall be forwarded to DEED Staff, and at DEED's discretion, shall be forwarded to the Minnesota Attorney General for the State's Legal Opinion. ELIGIBLE PROPERTIES SCDP funds will be used to improve properties that meet the following criteria: Page 2 of 19 1 1 CV) The property must be located in the Northeast Neighborhood or SW Neighborhood Housing Rehabilitation Project Area. The specific project boundaries are shown in Appendix B of this procedural Guide. The property must be a homeowner occupied residential structure. Owner Occupied Duplex Housing: Where SCDP funds are granted for rehabilitation of owner occupied duplex units, funds may only be used for: a. Rehabilitation of the structural components of the dwelling b. The internal components of the Owner Occupied portion of the dwelling Funds may not be used for the internal components of the non -owner occupied rental unit of the duplex. If the rental unit is in need of rehabilitation, the owner will be referred to the MHFA HOME Rental Rehabilitation Program or the MHFA 6% Rental Rehabilitation Loan Program. The property to be improved must be a permanent structure. The property to be rehabilitated must be considered suitable for rehab under local definition. No property deemed to be not suitable may be rehabilitated with SCDP funds. Rehabilitation is not remodeling. Remodeling is for convenience or cosmetic purposes. Rehabilitation deals with, in order of priority: (1) health issues and safety issues, including identified lead hazards; and (2) energy conservation, as well as certain long -term preservation of structures such as siding, roofs and foundations. Certain types of rehabilitation can be viewed as lack of maintenance or deferred maintenance. Other types of rehabilitation needs can be viewed as items that wear out or need replacements because of obsolescence. Rehabilitable Building: A building is suitable for rehabilitation when it is structurally sound. To be rehabilitable, a building should be vertically plumb within three degrees and shall have no significant rot on the majority of the floor joists, studs or rafters that are weight bearing. Foundations and basement walls shall not be deteriorated to the extent or so out of alignment that they do not adequately support the building and can not be corrected without complete replacement. Any proposed rehab /modifications to a pre - manufactured home will need prior approval by the manufacturer. If the improvement costs for a structure are 50% more than the County Assessor's Office market value, the dwelling may be deemed not suitable for rehabilitation, at the discretion of the City of Hutchinson Building Department and Hutchinson HRA. An unsuitable unit is a substandard unit with serious defects and is not able to meet a majority of local standards and rehabilitation is neither practical nor economically feasible. Page 3 of 19 1100) The City /HRA would be placing the following two restrictions as to the use of SCDP funds: a. Maximum SCDP funding per property is $24,999. b. The structure must be suitable for rehabilitation. 6. The property must be occupied by low /moderate income households as defined herein. Property that is rehabilitated under this program will meet HQS as a minimum standard. Rehab work will also need to meet the current State Building Code adopted by the City of Hutchinson. 8. No property located within a floodplain will be rehabilitated under this program. 9. No property may receive SCDP rehabilitation project funds if the property has real estate taxes due and payable. 10. No property may receive SCDP rehabilitation project funds unless the home is insured. ELIGIBLE IMPROVEMENTS Improvements made with SCDP funds shall satisfy the following requirements: Health and safety needs and concerns within the housing units to be rehabilitated will always be considered the top priority for funding using SCDP funds. 2. Each improvement must be a permanent general improvement. Permanent general improvements shall include alteration, renovation or repairs upon and in connection with existing structures, which correct defects and deficiencies in the property affecting directly the safety, habitability, energy consumption, or aesthetics of the property. 3. Upon completion of the improvements, the structure must comply with the requirements of the current State Building Code adopted by the City of Hutchinson and HUD Section 8 Housing Quality Standards. 4. If the structure has been determined historically significant by the Minnesota Historical Society, plans for exterior improvements to the structure must be reviewed and commented on by the Minnesota Historical Society. Buildings participating in the program and constructed 50 years prior to the current calendar year will be evaluated in accordance with the guidelines received from the Minnesota Historical Society. Each improvement must be made in compliance with all applicable health, fire prevention, and building codes, provided, however, that no application shall be denied solely because the improvement will not bring such property into full compliance with these codes. No SCDP funds shall be used in whole or in part for the purpose of refinancing or paying off an existing indebtedness. All such funds must be used to finance improvements begun after program application. Page 4 of 19 ' 1 r p\ Other Eligible Project Costs Homes built prior to 1978 are required to have a lead hazard risk assessment or lead paint inspection at the discretion of the HRA; this cost as well as lead clearance costs are considered eligible project costs. Energy audits are considered eligible project costs upon request of the homeowner or other funding sources. INELIGIBLE COSTS The following list of items is examples of what can not be funded with SCDP funds as part of the rehabilitation program. Ineligible improvements include, but are not limited to: 1. Air conditioning; except if verified by a physician ordered for a medical condition. • Central, new installation. • Room air conditioning. 2. Landscaping. *Excavation to correct drainage around the house will be considered an eligible cost. 3. Fireplaces. 4. New construction. 5. Wind generation devices. 6. Window /Door coverings: blinds, curtains, drapes, shades. 7. Out buildings, including sheds, utility buildings, barns, silos, new garages, etc. 8. Wood burning stoves. 9. Heat systems located outside the living space of the structure. 10. Recreational or entertainment facilities including swimming pools, tennis courts, saunas, decks and patios. 11. Assessments for public improvements. 12. Improvements begun prior to approval of the program application. 13. Upgrades to specifications above standard grade for rehabilitation. 14. Appliances 15. Other items deemed not appropriate to the program. ELIGIBLE RECIPIENTS Ownership Requirements: The homeowner must individually or in aggregate have a qualifying interest in the property consisting of at least: a. A 1/3 interest in the Fee Title. Such interests must be subject to a mortgage, and must demonstrate the ability to secure the signatures off all remainder men and spouses with interest in the property as loan guarantors and must appear on record with McLeod County; b. A 1/3 interest as Purchaser in a Contract for Deed. Such interests must secure the signatures of all parties and spouses that have interest in the property both as Contract Vendor(s) and Contract Vendee(s) and must appear on record with McLeod County; C. A valid Life Estate. Life Estates must appear in the records of McLeod County with all remainder men listed. Two Thirds (2/3) of the remainder men must sign the mortgage as loan guarantors; Page 5 of 19 11 (19) b) Ownership by any form of Trust and ownership subject to a reverse mortgage does not meet the ownership requirement. 2. The housing rehabilitation program is designed to be of 100 percent benefit to households of low to moderate incomes. This will be achieved by following the gross income limits as set by the Department of Housing and Urban Development for the Section 8 Existing Housing Program. The 2009 income limits as adjusted for family size are listed below. These limits shall be adjusted periodically upon HUD notification of income revisions. 3. Eligible recipients for housing rehab must have household incomes that do not exceed current 80% HUD McLeod County income limits adjusted for family size, revised yearly by HUD. The current income guidelines are listed below: 4. Household Size Maximum Household Income 1 $40,600 2 $46,400 3 $52,200 4 $58,000 5 $62,650 6 $67,300 7 $71,950 8 $76,600 5. Income for the purpose of this rehabilitation program shall be defined as gross annual income projected for the next twelve months, whenever possible, including salary, commissions, bonuses, interest, dividends, tips, capital gains or sale of securities, annuities, pensions, IRAs, rental property income (adjusted as allowed by the IRS), partnerships, estate or trust income, child support, alimony, social security, aid for families with dependent children and miscellaneous income. Gross annual income from self employment shall be deemed to be the average net profit from said self employment, as declared by the applicant in Schedule C, F or E, Part 111, as appropriate, of the United States Internal Revenue Service Form 1040, or any other such schedule as may be hereafter promulgated, but including all depreciation as income, for the past two years. 6. All income shall be verified in writing. The following examples listed below are considered acceptable. a. An income verification sheet that is signed by a third party at the source of income. Pay stubs may be used as a back up source of verification if the third party income verification form needs further clarification. b. The previous two years tax returns shall be used for those applicants who are self - employed or having variable incomes. C. Signed third party verifications from banks, savings and loans, insurance companies, etc. d. There will be no asset limitation associated with the SCDP loans. Page 6of19 1l (b) The main and foremost improvement priority for this rehabilitation program is directed to the health/safety of project residents. The priorities are as follows: Prioritv No. 1 Health and safety improvements are the primary emphasis of the rehabilitation efforts to be conducted in the project area. As such, they are mandatory requirements. These improvements are as follows in their sub - categorical ranking: 1. Fire detection/safe and obstructed egress 2. Electrical code violations 3. Lead based paint hazards 4. Radon mitigation 5. Surface impermeability to weather, water and rodents 6. Plumbing violations /deficiencies 7. Adequate and sanitary food preparation areas 8. Accessibility modifications for physically handicapped household member(s). Priority No. 2 Energy improvements are also a primary improvement to be conducted in conjunction with health and safety improvements. Improvement priorities are based upon the improvement's estimated energy cost savings per year that will be provided to the household after rehab. *1. Furnace replacement 2. Attic insulation 3. Wall insulation 4. Storm doors 5. Storm Windows 6. Rim joist insulation 7. Door /window weather- stripping * Furnace replacement could, very well, be placed as a No. 1 Priority depending upon the nature and severity of the existing defects. If it is deemed to be a threat to health/safety of the housing occupants, it will receive a No. 1 Priority. Priority No. 3 Basic housing quality components are secondary improvements to be conducted after the health/safety and energy improvements are addressed. These improvements are generally deferred maintenance items and major improvements which will need attention in the immediate future, but which are functional at the present time. They include items such as the following: *I. Roofing 2. Painting 3. Window replacement * Roofing could be a No. 2 Priority depending upon the nature and severity of the project. Page 7 of 19 1 1 (b) APPLICATION AND APPLICATION SELECTION The City /HRA will be approving applications from homes/homeowners, on a first come first serve basis, based on the date and time an executed application is received by the HRA office. Immediate health/safety emergency housing deficiencies determined by the Project Coordinator may receive priority, depending upon severity of deficiency and whether the emergency can be abated temporarily. (Failing furnace in winter, elevated blood lead levels in children etc.) PROJECT FUNDING LOW TO MODERATE INCOME - up to 80% of Area Median Income adjusted for family size. 70% Deferred SCDP Loan - 0% interest; 10 Year term. (10% forgiven per year) 30% owner match required. Non -SCDP financing shall be funds or financing received from private lenders, weatherization programs, City of Hutchinson revolving rehab loan program, MHFA rehabilitation loan program funds, community action agency funds, RD grant/loan funds, MHFA home improvement loan funds, matching funds through SWMNHSP, or any combination of these and other sources of financing or funding. The use of Non -SCDP financing will help promote the cost - effective use of SCDP City Revolving Funds. a. Coordination of available funds will be done by the HRA. b. The decision, as to which Non -SCDP funds may be available, will be based on each applicant's individual financial situation and the requirements of the Non - SCDP funding source. 2. The owner must agree to have all Non -SCDP funds for the rehabilitation work deposited in an escrow account controlled by the project administrator for disbursements to the contractor when the work is satisfactorily completed. Withdrawals can be made only upon written authorization from both the property owner and the Project Administrator. An exception is made if matching funds require direct disbursement to the contractor. REPAYMENT OF SCDP FUNDS SCDP Deferred Loan/Grants shall be secured by a Mortgage and Repayment agreement. 2. In the case of the deferred loan/grant, all persons who signed the application for a deferred loan/grant must enter into an agreement with the City of Hutchinson for repayment of the loan/grant. The agreement shall provide that: In the event that the improved property is sold, transferred or otherwise conveyed within ten years from the date of SDCP loan closing, the recipient shall repay all or a portion of such SCDP deferred loan/grant in accordance with the schedule below: a. 70% Deferred SCDP Loan up to $24,999 30% Owner Match (this includes costs of all changes orders) Owner responsible for project costs $25,000 and over Page 8 of 19 1 1 V If the recipient sells or vacates the property, the repayment terms are as follows: 1) 0 —12 months 100% Repayment 2) 13 — 24 months 90% Repayment 3) 25 — 36 months 80% Repayment 4) 37 — 48 months 70% Repayment 5) 49 — 60 months 60% Repayment 6) 61 - 72 months 50% Repayment 7) 73 - 84 months 40% Repayment 8) 85 - 96 months 30% Repayment 9) 97 - 108 months 20% Repayment 10) 109 - 120 months 10% Repayment 11) 121 months forgiven b. That deferred loan/grant funds due upon sale of the property prior to the official close -out of the grant shall be paid directly to City of Hutchinson, to be used for further rehabilitation projects and shall be deducted from the draw down requests as required by DEED. C. That deferred loan/grant funds due upon sale of property after the official closeout of the grant shall be paid directly to the City of Hutchinson. d. The repayment agreement shall be subordinate to funds provided by private lending institutions and other leveraging sources. e. That if the SCDP funds are used for purposes other than an eligible improvement upon an eligible property, or if the application is found to contain a material misstatement of fact, then the recipient of the deferred loan/grant shall be liable for 100 percent repayment of the deferred loan/grant. f. That the recipient of a deferred loan/grant shall be required to notify the City of Hutchinson immediately upon the sale, transfer or conveyance of the improved property. g. That if the recipient no longer occupies the property, the recipient would be obligated to pay the deferred loan/grant in full at that time. 3. SCDP deferred loans /grants shall be secured by a mortgage. Page 9 of 19 1(hi MARKETING The program administrator, on behalf of the City of Hutchinson, will conduct outreach in the targeted area and will solicit applications for the Northeast Neighborhood Housing Rehabilitation Program utilizing the below listed methods as necessary and/or appropriate: a. Issue press releases advertising community meetings regarding project both to local print and broadcast media. b. Direct mail program information to the homeowners in the target area, regarding program availability. C. Develop posters and brochures and post them in prominent areas in the community. d. Place program flyers door to door in project area. INSPECTIONS OF PROPERTY Process for Lead Hazard Reduction a. At the time of the homeowner's application, each applicant must receive the lead hazard brochure "Renovate Right" Rehabilitation files must indicate that homeowners have received a copy of the brochure. b. All houses built before 1978 must have a risk assessment, performed by a certified lead risk assessor or a lead paint inspection at the discretion of the HRA. The Risk Assessment Report or Lead Inspection will be part of the rehabilitation project file. The Hutchinson HRA has contracted with R &S Inspection, Inc. to conduct the lead risk assessments, but the HRA reserves the right to contract with the lowest responsible provider, if the contract is terminated. C. All homeowners must receive the HUD Notice "Summary Risk Assessment Notice ". Rehabilitation files must show receipt of the Notice. d. Work write ups /specifications will incorporate (or reference by addendum) the required lead hazard reduction options identified within the Risk Assessment Report. The write up /specification will include language on required lead safe work practices, site preparation, prohibited practices and cleaning. This can be accomplished in the work write -ups by reference to MN Rules 4761.1170 -1190, Hazard Reduction Methods. e. Owner- contractor contract language must include prohibition of use of lead -based paint; requirement for trained workers /supervisors and conducting work by MN Dept of Health approved training providers. f According to the lead paint Final Rule requirements for lead safe work practices the following circumstances do not require occupant relocation: 1) Treatment will not disturb lead -based paint or lead contaminated dust, or 2) Treatment of the interior will be completed within one period in eight daytime hours, the site will be contained, and the work will not create other safety, health, or environmental hazards, or 3) Only the building's exterior will be treated; the windows, doors, ventilation intakes, and other openings near the worksite are sealed during Page 10 of 19 140 hazard reduction activities and cleaned afterward; and a lead -free entry is provided, or 4) Treatment will be completed within five calendar days; the work area is sealed; at the end of each day, the area within 10 feet of the containment area is cleared of debris; at the end of each day, occupants have safe access to sleeping areas, bathroom, and kitchen facilities; and treatment does not create other safety, health, or environmental hazards. 5) The Risk Assessor will make a recommendation, based upon the above criteria and the ages of children residing in the household, whether temporary relocation is required. g. Residents must receive a Hazard Reduction Completion Notice, when lead hazard work has been carried out on the property. The rehabilitation files must show receipt of the Notice. h. Only licensed workers and supervisors will carry out lead hazard reduction work. i. All units must receive clearance examination, where risk assessment was conducted and lead hazard reduction was carried out. Trained Sampling Technicians may conduct clearance examinations. A copy of the clearance must be in the project file. j. If temporary relocation is required for homeowner occupants, the homeowner is asked to make arrangements to stay with family or friends. If arrangements with family or friends are not possible, rehabilitation funds may provide for hotel /motel stay for up to 5 nights and is paid out of the total cost of rehabilitation. Therefore, SCDP will pay for 70% of the cost incurred. The homeowner is limited to $100 per night for hotel /motel and mileage at the Federal rate. k. For emergencies whereby high levels of lead have been found or children are contaminated, the City will provide up to $3,000 per household, using program income, for immediate evacuation, temporary shelter, additional housing costs, and mileage costs. 2. HQS Inspection Once an applicant has been determined eligible for SCDP funds: a. The HRA contracted Housing Inspectors will conduct the Lead Risk Assessment and a Housing Quality Standards (HQS) property inspection. b. The Housing Inspectors will determine the work necessary to bring the property into compliance with: 1) Generally Accepted Community Standards 2) Minnesota Energy Efficiency Standards as is practical 3) Other standards as required by the Grant Agreement C. The HRA Housing Coordinator will then prepare a Scope of Work (work write - up) that will rectify violations to the housing standards, and local codes. The Scope of Work shall contain the following: 1) Instructions to the bidder 2) Bid proposal Page 11 of 19 11 Cf/� 3) Program warranties 4) General conditions 5) Language for the use of Lead Safe Practices 6) Special Conditions 7) Diagrams and layouts as appropriate or needed 8) Cost estimate for the file Any ineligible cost (not stated in the Scope of Work) that is done during the rehabilitation process shall be paid for by the owner, over and above what the SCDP funds are being used for. REHAB LOAN REVIEW PROCEDURE 1. Each individual rehabilitation project will be presented to a Representative of the HRA Loan Review Committee for approval after eligibility requirements have been investigated, the property has been inspected, work write -ups have been completed, bidding process is complete, project cost has been determined and, if necessary, outside financing for owner match secured. The HRA Loan Review Committee will be presented with a Project Presentation Form that will discuss the project, but not divulge any information that would violate privacy requirements. The Project Presentation Form is attached to the back of the procedural guide. 2. An HRA Loan Review Committee member and the HRA Executive Director will sign the Project Presentation form, which will be presented to the HRA Board for formal loan approval. 3. After approval by the HRA Board, a date for loan closing shall be set. If the project fails to meet an eligibility requirement or is not approved by the HRA Loan Review Committee, the applicant shall be informed in writing by the Housing Rehabilitation Loan Coordinator within ten working days and shall be informed of the appeal process. At the time of loan closing, the owner match will be required and put into an escrow account. ELIGIBLE CONTRACTORS AND BIDDING PROCEDURES All General Contractors must complete a Contractor's Application to participate in the Small Cities Development Program and must furnish the HRA with copies of: Certificate of Insurance and Contractor's Licensing or Certificate of Exception. Upon HRA review and approval of the above documents, the contractor may then be awarded a contract. 2. When lead hazard reduction is required by the risk assessor, lead trained workers will be required on the project. Certification of training must be on file at the HRA office. 3. The contract is between the applicant and the contractor. The applicant will be provided a list of the HRA approved contractors to choose from. However, an applicant is free to choose any licensed contractor whom the applicant may desire. Page 12 of 19 10) 4. Contractors will be allowed to bid on any and all rehabilitation projects. However, no single contractor will be allowed to work on more than three rehabilitation projects at one time. The contract shall be awarded to the lowest base bid unless one of the following circumstances occurs: a. The bid is determined to be unrealistically low by the HRA and the contractor agrees to withdraw the bid. b. The contractor has failed to follow the procedures as outlined in the instructions to the bidders. c. The homeowner does not want the low contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. d. There appears to have been collusion between two or more contractors in which case all bids under question will be thrown out and different contractors solicited for bids. e. The contractor fails to bid according to the specifications and it proves impossible to compare that contractor's bid with the other contractor bids. f. If two bids are tied, preference will be given to the Section 3 Certified Contractor, unless the homeowner refuses. 6. A minimum of two bids shall be solicited for each improvement project. Bidding shall be done on a general contractor basis, unless under certain cases, it will be a significant cost benefit to the homeowner to bid out the individual projects separately. The HRA Housing Rehabilitation Coordinator will make this decision. In the event only one bidder responds, the bid will be compared to the cost estimate to determine whether the bid is reasonable and can be accepted. The HRA Housing Rehab Coordinator /Inspector will make this decision on a case by case basis. 7. The HRA will periodically do press releases about the project to encourage contractor participation. Encouragement of women and minority -owned business to participate will be included in the press releases. 8. All portions of the work must be performed by a contractor. BID SUMMATION AND FINANCIAL PACKAGING Bids will be presented to the property owner. 2. Upon acceptance of a bid by an applicant, the HRA will, working with the property owner, package the project according to: a. Eligibility of the property owner b. Availability of Non -SCDP program funds Page 13 of 19 1'( ) C. Other available funds, and d. The appropriate level of SCDP funding The loan package shall include: a. The applicant's household composition b. Applicant's gross income C. Estimated market value of the property d. Property location e. Applicant's equity in the property f. Proposed rehabilitation activities g. SCDP funding requested h. Other funding to be used in the project 4. The necessary repayment agreements, mortgage and other legal necessary documentation are prepared by the HRA staff. A mortgage shall be placed on the property for the full amount of the SCDP dollars spent on the project. There is a limit of $25,000 of SCDP funding per project. Change orders resulting in a project cost over $25,000 will not be covered by SCDP funds. Homeowners will be expected to finance project costs over $25,000. The HRA Loan Review Committee, during review of a project, reserves the right to where appropriate, waive the $25,000 SCDP limit. Justification will be documented in the file. Sources of owner matches include the MHFA Deferred Loan Program, USDA Rural Development 504 Home Repair Program, Heartland Community Action Agency, Inc. Weatherization Program, AHP, GMHF, City of Hutchinson Housing Rehabilitation Revolving Loan Fund, Hutchinson HRA Rehab Loan — NE Neighborhood or SW Neighborhood, MHFA CFUF and FUF and any other leverage sources that may become available through the Southwest Minnesota Housing Partnership. Financing packages will be assembled by the HRA Program Coordinator based on income eligibility, financing amount available with various sources, and financing tenns. City of Hutchinson Revolving Rehabilitation loan and the HRA Rehab loan funds will be reserved for families between 60 -80% of AMI, because other rehab financing sources will be used first for families at or below 60% AMI. 6. The property owner shall be responsible for paying the recording fee of the mortgage. Closing will then take place with the property owner and other appropriate parties to the closing. Three days after closing the HRA will issue a Notice to Proceed to the accepted contractor(s). CONTRACT PERFORMANCE The Notice to Proceed allows the contractor 90 days to complete, except that weather dependent work on projects where the notice to proceed is issued too late in the building season will allow additional days as determined by the HRA. Change Orders are required to extend ALL contracts. Page 14 of 19 1 1 ( 0 2. 4. Change orders to the contract: a. Require the signatures of the: 1) Homeowner 2) Contractor 3) HRA Housing Program Coordinator 4) The Housing Inspector b. Will be allowed only for the following reasons: 1) To rectify hidden deficiencies that are discovered once the work has begun. 2) To change an approved work specification due to unforeseen difficulties arising after the work has begun that force a delay. 3) To address a deficiency that was inadvertently dropped from the project during project packaging. 4) The work is weather dependent and weather conditions have not allowed the completion of the work. 5) The homeowner preferred contractor is too heavily committed to perform the work within the allotted time and the contractor requests an extension along with a work schedule acceptable to the homeowner and HRA. 6) Unforeseen difficulties develop with the approved work and force a delay. C. Any additional Owner Match funds will be required to be deposited in an escrow account. Interim inspections may be performed by the HRA or City Building Department to monitor work progress and quality of workmanship. If a dispute arises between a property owner and a contractor, the HRA Housing Rehabilitation Coordinator will advise the property owner and contractor to resolve the issue according to the contract and work specifications. If a clarification of the contract and specifications is needed, the HRA Housing Program Coordinator will render an opinion based on the facts presented and the contract. If a solution cannot be found, either party may then appeal the HRA Loan Review Committee and the Project Director - their decision will be final. A contractor's contract may be terminated for any of the following reasons a. Poor work performance on the job site and the demonstrated inability to rectify the poor workmanship. The cost of repairing poor workmanship shall be deducted from any amount owed to the initial contractor for work completed. b. Causing undue damages to a homeowner's property and the inability or unwillingness to correct the damages. The cost of repairing the damages will be deducted from any money owed the contractor for work already completed. C. The contractor lacks sufficient insurance coverage. d. The inability of the contractor to perform the work within the allotted time. Page 15 of 19 t0) e. Irreconcilable and unreasonable differences between the contractor and the property owner. f The contractor requests to be removed from the contract. There will be no penalty associated with this request as long as the request is made within 30 days of receiving the Notice to Proceed. g. Contractors who are removed from a contract shall be removed from the approved contractor's list and shall be prohibited from being awarded any contracts with this program until such time as the problem has been corrected and HRA might reinstate their approved status. PAYMENT 1. All contractors will agree to the payment schedule contained within the contractor's application, which is as follows: a. No pre - payments are allowed for any reason. b. Partial payments will be allowed only for completed portions of the project and a portion of the payment may be subject to retainage payable upon completion of the entire project. C. Payments will be made only after the work is completed according to the specifications contained within the Scope of Work and meets with the approval of the applicant and the HRA after inspection. d. Payments will be made only upon presentation of the following documents: Billing statement 1) Lien waiver 2) Sworn Construction statement 3) Completion Certificate 4) Lead Clearance PROJECT FILES The Housing Rehab Coordinator shall maintain files on each applicant throughout the duration of the project. Those files shall include the following: 1. Section A - File Checklist a. Homeowner Application b. Property Presentation Form/Approved by HRA Loan Review Committee C. Application and Rehabilitation Process Form d. Income Verification Form 1) Employment Verification 2) Second Employment Verification 3) Self - employment Income 4) Bank Verification Page 16 of 19 No) 5) Ul /General Assistance /AFDC Grant Verification 6) Social Security Verification 7) Pension/Retirement Verification 8) Child Support e. Historical Society Clearance f Property Tax Verification g. Title Verification Form h. Property Insurance Verification i. Photo Release Form j. Lead Based Paint Statement/Lead Based Paint Assessment Requirement k. Property Owner Conditions 1. Property Inspection Completed m. Guidelines for Subordination Requests n. Fair Housing Certification Form o. Eligibility/Non- Eligibility Letter 2. Section B - File Checklist a. Change Orders (if applicable) b. Specifications for Rehabilitation (Notice to Bid) C. Notice to Proceed d. Contractor /Property Owner Agreement/Property Owner Conditions e. Contractor Award Notice f. Contractor Non -Award Notice g. Proposal Form/Bid Specification h. Copies of Proposals Received i. Bid Tabulation 3. Section C - File Checklist a. SCDP Deferred Loan Mortgage and Repayment Agreement b. Documentation of Non -SCDP Finances (if applicable) • Escrow Agreement for Owner Match C. Notice of Right of Recision d. Truth in Lending Statement 4. Section D - File Checklist a. Preconstruction Conference Report b. Notice to Proceed C. Contractor Payment Request d. Sworn Construction Statement e. Completion Certificate f. Lien Waiver g. Field Inspection Report 5. Section E - File Checklist a. Owner Evaluation b. Lead Clearance C. Hazard Reduction Completion Notice d. Copy of Filed Repayment Agreement Page 17 of 19 1 1w) 6. Copies of forms as appropriate are appended. 7. HRA at its option may accept documentation and verification from other agencies working with the same applicant. Other agencies at this time are: a. MHFA b. Heartland C. Rural Development d. Southwest Minnesota Housing Partnership APPEALS If an applicant/property owner's application is denied for any reason or is dissatisfied with the level of assistance received, the following procedure is to allow for a standardized appeal /complaint process for all applicants of the Small Cities Development Program. 2. In the event of denial or a complaint, the applicant /complaint: a. Will be informed of the appeal process. b. Will be given a copy of the appeal process. C. Will be given a written notice clearly stating under what condition that the application was denied. 3. The applicant who wishes to appeal the denial of benefits must submit their appeal within 14 days of receipt of denial either orally or in writing to the Housing Rehab Loan Coordinator. That appeal must state: a. The reason(s) for the appeal. b. Information that the applicant believes is pertinent to the appeal. 4. If the applicant is not satisfied with the decision of the Housing Rehab Coordinator, an appeal may made in writing to the Project Director, within 14 days of decision by the Housing Rehab Coordinator. The Project Director shall review all written appeals with the HRA Loan Review Committee. 5. Further appeal may be made to the HRA Loan Review Committee by appearing in person before the committee. The Project Director shall respond to the applicant in writing within 15 working days of appearing before the committee: a. The results of the review b. An explanation of the findings C. The next step the applicant can take if not satisfied with the response Page 18 of 19 lo) 6. If the applicant is denied assistance by the BRA Loan Review Committee; final appeal may be made to: Minnesota Department of Employment and Economic Development I" National Bank Building 332 Minnesota Street Suite E 200 St. Paul, MN 55101 -1351 GENERAL CONDITIONS No project may be started until: a. Grant dollars are made available b. The program is officially up and running C. The application process has been approved d. HRA/homeowner has issued a Notice to Proceed Any work done on a project prior to these steps will mean that part of the project is ineligible for funding. The proceeds received from the repayment of Rehabilitation loans originated SCDP funds will go into a revolving loan fund to provide funds for rehabilitation projects on an ongoing basis. AMENDMENTS These procedural guidelines may be amended in whole or in part or supplemented by the Hutchinson Housing and Redevelopment Authority as deemed appropriate and/or needed and will be effective on the date of issue. G: /HRA /DTED & SCDP Programs /2012 SCDP NE Neighborhood/Procedural Guide 2012 Page 19 of 19 10) City of Hutchinson Section 3 Plan The City of Hutchinson, in conjunction with Small Cities Development Program Grant 4CDAP- 11- 0023- 0-FY12, has the following plan to direct employment and other economic opportunities generated by HUD financial assistance for housing and community development programs, to the greatest extent feasible, toward low and very low income persons, particularly those who are recipients of government assistance for housing. Section 3 is a HUD requirement that is intended to ensure that when employment or contracting opportunities are available on HUD funded projects, preference is given to low and very low income persons or businesses, whenever possible. The City of Hutchinson will attempt to recruit Section 3 Businesses and low income area residents as new hires for the project through: signs regarding the project placed at City Center, the Hutchinson library, Park Towers Apartments, and contact with the local workforce center. The City of Hutchinson will require that all contracts between the homeowner and the contractor providing rehab services will contain the following Equal Opportunity provisions: • Equal Employment Opportunity: "The contractor shall provide equal employment opportunity to all persons without discrimination as to race, color, creed, religion, national origin, sex, age or disability." • Affirmative Action: "To the extent possible and practical, the contractor will take affirmative action to provide employment opportunities to all persons without regard to race, color, creed, religion, national origin, sex, age, or disability." • Section 3: "To the extent feasible, the contractor shall provide opportunities for training and employment to lower income residents of the area, particularly residents of public or federally assisted housing." The City of Hutchinson will require all contractors to complete and submit the Section 3 Business Certification Form prior to awarding contracts. While being a Section 3 business is not required for the program, the City of Hutchinson will give preference, whenever possible and within the guidelines of the City of Hutchinson procurement policy to qualified, competitive Section 3 businesses. J t(b) STATE OF MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION Small Cities Development Program Grant Agreement CDAP -11- 0023- 0-FY12 This Agreement is made on June 1, 2012 between the State of Minnesota acting through the Department of Employment and Economic Development (hereinafter the Grantor) and the City of Hutchinson, 1 I I Hassan Street SE, Hutchinson, MN 55350 -2522 (hereinafter the Grantee). The Grantor has been allocated funds by the United States Department of Housing and Urban Development under the Community Development Block Grant Program (CDBG) and is authorized to administer the funds pursuant to Minnesota Statutes l I6J.401(2). Under Minn. Stat. I I6J.402, the Grantor is empowered to enter into contracts as necessary to perform the Commissioner's duties. The Grantee has made application to the Grantor for the purpose of administering a Small Cities Development Program (SCDP) project for the City of Hutchinson in the manner described in Grantee's "APPLICATION," which is incorporated into this agreement by reference. In consideration of mutual promises set forth below, the parties agree as follows: The Grantor shall grant to the Grantee the total sum of ONE HUNDRED SEVENTY -FIVE THOUSAND FOUR HUNDRED DOLLARS ($175,400), which shall be federal funds appropriated to the State of Minnesota under the CDBG. The Grantee shall perform the activities that are proposed in the application and further are specified under Grant Conditions during the period from June 1, 2012 through December 31, 2014 in accordance with all applicable provisions of Title 1 of the Housing and Community Development Act of 1974, as amended, its implementing regulations particularly federal statutes identified in Title 24 of the Code of Federal Regulations, Part 570, guidelines provided by Grantor and all other applicable state and federal laws. Grantee agrees to complete the project in accordance with the approved budget and within the time frames specified in the application and agreement. Any change in the scope of the project, the budget, or the completion date must be approved in writing by the Grantor. Funds made available pursuant to this agreement shall be used only for expenses incurred in performing and accomplishing such purposes and activities during the grant period described above. Notwithstanding all other provisions of this agreement, it is understood that any reduction or termination of Housing and Urban Development funds provided to the Grantor may result in a like reduction to the Grantee. Where provisions of the Grantee's application are inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over the provisions of the application. 1p) Grant Number: CDAP -11- 0023- 0-FY12 GRANT CONDITIONS The following activities, goals, and budget costs are approved by the Grantor. Any modifications to the budget must have written Grantor approval prior to implementation. 2. Successors and Assignees: The Grantee may neither assign nor transfer any rights or obligations under this grant contract without the prior consent of the Grantor and a fully executed grant agreement executed and approved by the same parties whom executed and approved the grant, or their successors in office. This agreement shall be binding upon any successors or assignees of the parties. 3. Amendments: Any amendment to this grant contract, with the exception of Grant Adjustment Notices (GANs), must be in writing and will not be effective until it has been executed and approved by those parties authorized by resolution to enter into this contract, their successors and assigns, or other party authorized by the Grantee through a formal resolution of its governing body. GANs must be approved by the Grantor in writing, and require a written change request by the Grantee. 4. Waiver: If the state fails to enforce any provisions of this grant agreement that failure does not waive the provisions or its right to enforce it. 5 Pre - Agreement Costs: Grantee may incur administrative costs for this grant prior to the executed grant agreement. This does not include the award of construction contracts prior to environmental clearance. 6. Environmental Compliance: Unless the Grantor indicates otherwise, the Grantee is required to conduct an environmental review on project activities, to comply with the National Environmental Policy Act of 1969 (NEPA), as amended. Disbursement of funds will not occur until Grantee has provided assurances that all NEPA requirements will be met. Environmental clearance must be received by the Grantor and other agencies prior to committing funds for activities. Grantee must maintain environmental review documentation and records. The Grantee may enter into a programmatic agreement with the Minnesota State Historic Preservation Office (MnSHPO) that allows the grantee to not seek further consultation from MnSHPO on eligible properties in eligible rehabilitation projects. Timeliness: The Grantor may cancel this Grant Agreement if it determines that the progress towards completion of the activities is not reasonable. 8. Drug -free Workplace/Drug-Free Workplace Awareness Program: The Grantee agrees to provide a drug -free workplace by notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the Grantee's workplace and specifying actions that will be taken against employees for violation of such prohibition. The Grantee must have an Awareness Program, or establish a drug -free workplace awareness program to inform employees about the dangers of drug abuse, the availability of drug counseling and penalties for violations of the drug -free workplace policy. Prior to release of funds, Grantee 2 10) Number of Number of LMI households households Fed. Activity Unit /persons /persons SCDP Other Obj Code Activity Title Goal served served Funds Funds Total LMH 14A Res Owner Rehab 10 10 10 $149,400 $64,030 $213,430 21A Administration 26,000 0 26,000 Totals $175,400 $64,030 $239,430 2. Successors and Assignees: The Grantee may neither assign nor transfer any rights or obligations under this grant contract without the prior consent of the Grantor and a fully executed grant agreement executed and approved by the same parties whom executed and approved the grant, or their successors in office. This agreement shall be binding upon any successors or assignees of the parties. 3. Amendments: Any amendment to this grant contract, with the exception of Grant Adjustment Notices (GANs), must be in writing and will not be effective until it has been executed and approved by those parties authorized by resolution to enter into this contract, their successors and assigns, or other party authorized by the Grantee through a formal resolution of its governing body. GANs must be approved by the Grantor in writing, and require a written change request by the Grantee. 4. Waiver: If the state fails to enforce any provisions of this grant agreement that failure does not waive the provisions or its right to enforce it. 5 Pre - Agreement Costs: Grantee may incur administrative costs for this grant prior to the executed grant agreement. This does not include the award of construction contracts prior to environmental clearance. 6. Environmental Compliance: Unless the Grantor indicates otherwise, the Grantee is required to conduct an environmental review on project activities, to comply with the National Environmental Policy Act of 1969 (NEPA), as amended. Disbursement of funds will not occur until Grantee has provided assurances that all NEPA requirements will be met. Environmental clearance must be received by the Grantor and other agencies prior to committing funds for activities. Grantee must maintain environmental review documentation and records. The Grantee may enter into a programmatic agreement with the Minnesota State Historic Preservation Office (MnSHPO) that allows the grantee to not seek further consultation from MnSHPO on eligible properties in eligible rehabilitation projects. Timeliness: The Grantor may cancel this Grant Agreement if it determines that the progress towards completion of the activities is not reasonable. 8. Drug -free Workplace/Drug-Free Workplace Awareness Program: The Grantee agrees to provide a drug -free workplace by notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the Grantee's workplace and specifying actions that will be taken against employees for violation of such prohibition. The Grantee must have an Awareness Program, or establish a drug -free workplace awareness program to inform employees about the dangers of drug abuse, the availability of drug counseling and penalties for violations of the drug -free workplace policy. Prior to release of funds, Grantee 2 10) will provide evidence of a drug -free workplace to the Grantor. 9. Prohibition of Excessive Force Policy: The Grantee agrees to adopt and enforce a policy to prohibit the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations (P.L. 101 -144, Section 519). Prior to release of funds, Grantee will provide evidence of a Prohibition of Excessive Force Policy to the Grantor. 10. Residential Anti - displacement and Relocation Assistance Plan: The Grantee agrees to adopt, make public and follow a "residential anti - displacement and relocation assistance plan" in accordance with Section 104(d) of the Housing and Community Development Act of 1974, as amended. This plan must include steps to minimize displacement of residents caused by project activities. Prior to release of funds, Grantee will provide evidence of a Residential Anti - displacement and Relocation Assistance Plan to the Grantor. 11. Fair Housing: Grantee agrees to abide by and promote all Fair Housing Regulations during the grant period, including conducting at least one unique activity to affirmatively further fair housing each year that the grant remains open. Activity(ies) must be reported via the Grantor's Annual Report annually. 12. Policies and Procedures: Where applicable and prior to release of funds, Grantee must approve policies and procedures which are consistent with the Application and consistent with current SCDP guidance and policy. All policies and procedures must adhere to federal and /or state requirements. 13. Federal Labor Standards: When applicable, Grantee must comply with all federal Davis Bacon and Related Act requirements and must submit "Notice of Contract Award" required by the Grantor before using grant funds to pay contractors or subcontractors. 14. Reporting: Grantee shall submit reports annually during the grant period, to Grantor by October 15, or the date designated by the Grantor. All other reports must be in accordance with the reporting requirements set forth in Minnesota Rule 4300.3200. Grantee shall use the reporting forms provided by the Grantor. 15. Accounting: For all expenditures of funds made pursuant to this agreement, Grantee shall keep financial records, including invoices, contracts, receipts, vouchers, and other documents sufficient to evidence in proper detail the nature and propriety of the expenditure. Accounting methods shall be in accordance with "The Common Rule," Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, at 24 CFR, Part 85, as amended. 16. Procurement: The Grantee must maintain documentation that shows that professional services were procured in accordance with "The Common Rule," Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, at 24 CFR, Part 85, as amended. Services obtained from units of government such as HRA, RDC, or nonprofit organizations do not have to be procured by competitive negotiation, but contracts for these services must only be on a cost - reimbursement basis, accounted for in accordance with "The Common Rule." All construction contracts will require competitive bidding, unless waived by the Grantor 17. Audit and Inspection: The Grantee shall comply with the requirements of the Single Audit Act Amendments of 1996 (P.L. 104 -156). When a Grantee expends over $500,000 in federal funds during their fiscal year, an A -133 audit is required. Accounts and records related to the funds provided under this agreement shall be accessible to authorized representatives of the Grantor for purposes of examination and audit. In addition, Grantee will give the U.S. General Accounting Office, the U.S. Department of Housing and Urban Development, State of Minnesota, Department Of Employment and Economic Development, the Legislative Auditor, and State Auditor's Office, through any authorized representatives, access to and the right to examine all records, books, papers, and documents related to the grant for a minimum of six years from the end of this Grant Agreement. The Catalogue of Federal Domestic Assistance (CFDA) number for grants made available from Small Cities is: 14.228. Iwo) 18. Liability: Grantee agrees to indemnify and save and hold Grantor, its agents and employees harmless from any and all claims or causes of action arising from the performance of the Grant by Grantee or Grantee's agents or employees. This clause shall not be construed to bar any legal remedies Grantee may have for the Grantor's failure to fulfill its obligations pursuant to this Agreement. 19. Data Practices Act: The Grantee shall comply with the Minnesota Government Data Practices Act, Chapter 13. 20. Conflict of Interest: The Grantee shall comply with the conflict of interest provisions of Minnesota Statutes Sections 471.87- 471.88, and Subpart K of 24 CFR, Part 570.611 of the Code of Federal Regulations. 21. Payment/Disbursements: Grantor shall disburse funds to the Grantee pursuant to this agreement, based upon a payment request submitted by the Grantee and reviewed and approved by the Grantor. Payment requests will be processed on a bi- weekly calendar provided by Grantor. The amount of grant funds requested must be two thousand dollars ($2,000) or more (except for the final draw). Grantor has authority to withhold administrative funds if adequate progress on contractual goals is not being met. 22. Program Income and local income generated: Program Income is defined as any income equal to or exceeding $35,000 in a federal fiscal year (10/1 -9/30) received by the Grantee from the CDBG (SCDP and federal Minnesota Investment Fund). Any income received from a SCDP grant under $35,000 in a federal fiscal year, is not Program Income, but must be reused for an approved purpose. If a Grantee has an open SCDP grant and receives income (Program Income or not) from that SCDP grant, or previous SCDP grants that are now closed, the amount received must be used for grant activities prior to drawing awarded funds. Program Income will be subtracted from the amount requested on the Disbursement Request Form (DRF). Grantee agrees to have a "Program Income and Local Funds Generated Plan" on file that states how Program Income and local funds generated from the grant will be reused. This plan should state funds will be reused for an approved SCDP purpose and be consistent with the Grantee's application. If the funds received by the Grantee cannot be utilized by the Grantee within a reasonable amount of time, it must be returned to Grantor. Annual Reporting: Following grant closeout, the Grantee must report Program Income funds available at the beginning of the year, Program Income received, Program Income expended, and the Program Income funds balance at the end of the year. This reporting is completed on -line. If the Grantee receives income from a grant of less than $35,000 in a federal fiscal year, it is NOT Program Income and the report should report $0 for Program Income. Grantees must complete the report annually even if there is no Program Income. Annual Program Income reporting will be required as long as the Grantee has Program Income or has outstanding loans for grant funds or Program Income funds. If Program Income is expended, when it is not on an open grant, the Post Closeout Program Income Expenditure Reporting Form must be completed to show accomplishments achieved with those and leveraged funds. 23. The Grantee must comply with Minnesota Statutes, Section 290.9705 by either: A. Depositing with the State, eight percent of every payment made to non - Minnesota construction contractors, where the contract exceeds $100,000; or B. Receiving a waiver from this requirement from the Minnesota Department of Revenue. 24. Anti - Lobbying: The Grantee must not use SCDP funds to pay any person for influencing or attempting to influence an officer or employee of a federal agency, a member of Congress, an officer or employee of Congress, or any employee of a member of Congress in connection with the awarding of any federal contract, the making of a federal grant, the making of a federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. If the Grantee 110 b) uses non - federal funds to conduct any of the aforementioned activities, the Grantee must complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying." Further the Grantee must include the language of this provision in all contracts and subcontracts and all contractors and subcontractors must comply accordingly. 25. Equal Employment & Section 3: Grantee must include Executive Order 11246 (Standard Federal Equal Employment Opportunity Construction Contract Specifications) as well as the Section 3 Clause § 135.38, notice regarding economic opportunities for low and very low income persons in all Grantee bidding and contract documents for which the construction costs exceed $100,000. All Grantees must have a Section 3 plan documenting how they will promote Section 3 and collect the SCDP Section 3 Contractor Certification form when applicable. 26. Uniform Relocation Assistance and Real Property Acquisition Policies Act: Permanent easements of land required for any public facilities improvement made using SCDP funds, or in conjunction with SCDP activities, must be acquired in conformance with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR 24). Budget modification, if necessary to achieve compliance, must be approved in writing by the Grantor. Unless otherwise approved in writing by Grantor, use of SCDP funds to purchase real property is limited to the value established by appraisal(s) conducted in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Reuse of real property that is acquired with SCDP funds must be approved by Grantor. 27. Assessments: Grantee will not assess the SCDP funds share of any public facilities project. 28. Provision for Contracts and Subcontracts: Grantee shall include in any contract or subcontract such provisions as to assure contractor and subcontractor compliance with applicable state and federal laws. 29. Eligible Contractors: Grantees are required to verify that all contractors, subcontractors and sub - recipients are not listed on the Federal publication that lists debarred, suspended and ineligible contractors. Evidence of this determination must be readily available to the Grantor throughout the life of the project. 30. Reduction in Actual Costs: On projects that involve construction of public facilities, new housing construction, conversion for new housing, or rehabilitation of 8 housing units or more under one site: If bids are significantly lower than estimated project costs presented in the Grantor's application, Grantee must contact Grantor. Grant amount may be reduced. 31. Termination and Cancellation: This Grant may be cancelled by the Grantor at any time, upon thirty (30) days written notice to the Grantee. In the event of such cancellation, Grantee shall be entitled to payment, determined on a pro rata basis, for work or services satisfactorily performed. 32. Worker's Compensation: The grantee certifies that it is in compliance with Minnesota Statute 176.181 Subd.02, pertaining to worker's compensation insurance coverage. The Grantee's employers and agents will not be considered state employees. Any claims that may arise under the Minnesota Worker's Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State's obligation or responsibility. 33. Governing Law, Jurisdiction and Venue: Minnesota law, without regard to its choice for law provisions, governs this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 34. Monitoring: Grantee will be monitored through an on -site visit at least once during the grant period. 35. Public Hearing: The Grantee will hold a second public hearing (first was held for submission of Application) midway through the implementation period to solicit public feedback on grant progress and results. The public hearing must be publicly advertised and minutes from the hearing and evidence that the hearing was publicly ll�b) advertised will be provided to the Grantor after the hearing is held. This documentation will be provided by October 15, 2013. 36. Bid Specifications: For projects that involve construction of public facilities, new housing construction, conversion for new housing, or rehabilitation of 8 housing units or more under 1 site: Grantee will provide Grantor with bid specifications (not maps or architectural drawings) for review and approval. 37. Allowable Costs — Grant funds will only be used to reimburse costs that are eligible and allowable under the CDBG program. Grantor will require that Grantee refund any unallowable costs to Grantor. 38. Rental Development Agreement — When applicable and prior to release of funds, the Grantee will provide the Grantor with a development agreement between the Grantee and developer and, if applicable, the Management Company. The agreement(s) will include provisions to ensure that rents charged for housing units and incomes of tenants are adequate to satisfy a National Objective. If applicable, the agreement would also ensure against the economic displacement of any current housing tenants. lo) The Grantor and Grantee acknowledge their assent to this agreement and agree to be bound by its terms through their signatures entered below. GRANTEE: We have read and we agree to all of the above provisions of this agreement. By Title Date By Title Date City of Hutchinson Grant #CDAP -11- 0023- 0-FY12 Awards /2012Awards /2012C..t. sdw STATE OF MINNESOTA by and through the Department of Employment and Economic Development °mil Title DEPUTY COMMISSIONER Date ENCUMBERED: Department of Employment and Economic Development M (Name) Date Encumbered [Individual signing certifies that funds have been encumbered as required by Minnesota Statute 16A.] �0) Utilizing the following chart, provide the status of the current open grant for which you are completing the Short Form Application: All activities in the current open award in which the Short Form Application is requesting funds for must be in either the implementation or completed stage. Key: Units @ Startup Stage: Working on eligibility requirements, inspections, work write -ups, etc. Units @ Implementation Stage: Contractor work on property has begun and in process Units Completed: All work has been completed Use the following format t6 provide specific Information on the activity(s) proposed in your Short Form Application. DEED will give stronger consideration to those Applications whose administrative request per activity is equal to or less than 15% of SCDP hard costs. If the amount of SCDP administration is greater than 15% per activity, justification will be required. Remember to include Program Income as leveraged funds. Fed. Obi. Codes" Use the Key below to Identify Progress Grantee SCDP Cost Per unit SCDP Cost/ without admin Total SCDP Admin SCDP Admin % Total SCDP Costs Total Leveraged Resources Source of Leveraged Funds (Mwk(c)if funds.. co,nnned' -.) Totals LAII Name and 10 14,940 149,400 !49,400 64,030 Owner match 113,430 Funding SCDP Activity SCDP Percentage Grant Unit Units Units @ Units Year SCDP Activity of SCDP End Date Goal @ Completed Activity Funds Funds Startup Implementation Budget Remaining Disbursed Stage Stage City of Owner Hutchinson Occupied 399,100 91,321 7711 1131112 20 3 4 17 1010 Rehab /Admin All activities in the current open award in which the Short Form Application is requesting funds for must be in either the implementation or completed stage. Key: Units @ Startup Stage: Working on eligibility requirements, inspections, work write -ups, etc. Units @ Implementation Stage: Contractor work on property has begun and in process Units Completed: All work has been completed Use the following format t6 provide specific Information on the activity(s) proposed in your Short Form Application. DEED will give stronger consideration to those Applications whose administrative request per activity is equal to or less than 15% of SCDP hard costs. If the amount of SCDP administration is greater than 15% per activity, justification will be required. Remember to include Program Income as leveraged funds. Fed. Obi. Codes" Activity p of units/goals SCDP Cost Per unit SCDP Cost/ without admin Total SCDP Admin SCDP Admin % Total SCDP Costs Total Leveraged Resources Source of Leveraged Funds (Mwk(c)if funds.. co,nnned' -.) Totals LAII Owner Rehab 10 14,940 149,400 !49,400 64,030 Owner match 113,430 Owner Rehab Admin 10 1,600 16,000 1 17.4% 16.000 1 1 16.000 slim Totals 149,400 16,000 175,400 64,030 139,430 ' The following are the Federal Objective codes to be used in the above table in the first column. See "Federal Objectives for Applicants," in the SCDP A- Z Guide, for requirements. • Low to Moderate income persons /households: LIM • Prevent or eliminate slum and blight conditions: S & B • Alleviate urgent community development needs: URG •' Committed funds must be accompanied by a signed letter of commitment, verifying the amount. � lCb) N CITY OF HUTCHINSON HOUSING REHABILITATION PROGRAM FACT SHEET • The City of Hutchinson has been awarded funding for homeowners interested in improving their homes from the Minnesota Department of Employment & Economic Development, Small Cities Development Program (SCDP). • This assistance to Homeowners is in the form of a 0% Interest, Deferred Loan forgiven after 10 years. If the property is sold, title is transferred, or the Borrower no longer lives in the home before the 10 -year forgiveness date, 10% will be forgiven each full year in the home. • The SCDP Loan amount is 70% of the repair costs. 30% of project cost is an Owner Match. Match funds can be obtained from other products available through the Hutchinson HRA. • The maximum SCDP Loan amount available is $24,999, per property. Any costs exceeding this amount will be the responsibility of the Homeowner. • The Main Purpose of the Program is to address Health & Safety Issues, along with other improvements such as Repair or Replacement of the following: ✓ Defective plumbing, heating or electric systems ✓ Roofing, windows and doors ✓ Exterior carpentry such as rotting siding, porches and steps, etc. ✓ Interior carpentry such as stair railing and patching walls & ceilings ✓ Handicap Accessibility Issues • A Minnesota licensed general contractor that is on file at the HRA office will have to do the rehab work and depending if your home has lead -based paint, a Lead - Certified Contractor may be needed. • To Qualify: ✓ You must live in the NE Neighborhood (HWY 15 - North High Dr. — Bluff -HWY 7) or the SW Neighborhood (Main - Sought Grade Rd. - Dale St. - 2nd Ave.) ✓ You must own the home free and clear of debt OR have 1/3 fee title interest in the property, through a Mortgage, Contract of Deed or Life Estate that is on record at the McLeod County Recorder's Office. ✓ You must be current on House Payments and Property Taxes. ✓ You must be able to acquire an Owner Match of 30% of the project cost. Match funds can be obtained from other products available through the Hutchinson HRA. ✓ Your Gross Annual Total Household Income for the SCDP Loan, of any person age 18 or older, including ALL SOURCES of income, cannot exceed the following limits: FAMILY SIZE 1 2 1 3 4 1 5 6 7 8 INCOME LIMIT 40,600 46,400 52,200 1 58,000 62,650 1 67,300 71,950 76,600 C:\ Users \jward\AppData \Local\ Microsoft \Windows \Temporary Internet Files\ Content. Outlook \03Q610AM\Rehabilitation Fact Sheet 2011.docx 1o) HOUSING REHAB EXAMPLE FINANCING Tom & Mary Smith are owners of a single - family home within the rehab target area and have two children. Their house inspection shows a need for $18,000 in repairs: Roof repair $ 8,000 Insulation 31000 Smoke detectors 300 Gutters 500 I Electrical 200 Heating System 3000 Lead Abatement 3000 Total $18,000 The family's income is less than $58,000 (80% AMI for a family of four), so they qualify for rehab funds for the repairs. To pay for the repairs they can access: ♦ 0% deferred rehab loan for 70% of the repair costs ($12,600). 10% of the loan will be forgiven each full year. No principal remains if the family stays in the home for 10 years. ♦ Owner match or other funding for the remaining 30% of repair costs ($5,400). Cash, bank loans and other 0% loans through the Hutchinson HRA can make up the remaining. This is how Tom & Mary will pay for their repairs: $12,600 deferred rehab loan 5.400 low- interest loan from MN Housing Finance Agency* $18,000 Total E] (Check Here) I have read and understand this rehabilitation financing summary sheet. I understand the terms of the program and understand this is not a remodeling program. I have indicated my interest in rehabilitation by signing this pre- application. (Sign Here) * Match funds will vary in their sources and terms. The source of the funds will depend upon your household income, availability of funds, etc. The match funds will be determined with your application. The low interest loan is only an example of the products available. Area Median Family Income Limits (80 %): 1 person $40,600 / 2 persons $46,400 / 3 persons $52,200 / 4 persons $58,000 (these amounts are adjusted each spring) IlCb) . , Rehab Owner Match Options Loan M_ ax. j $5,000 0 %d Monthly Interest City Rate Payments Revolving / 1 Term (upto)! -? HRA Credit Family Size 4 Rehab CRV _ Record'g 86 OZ of AMI 60% of AMI 1 $401600 $30,480 2 1$_46,400 $34,800 3 _� $52,200 1$39,180 - 4 I$58,000 I$43,500 $25,200- ;$62,650 ;$46,9_80 -5 6 1$67,300 $501460 7 $71,950 $53,940 8 - $76,600 '$57,420 - f- - - � - Only evadable it $31,300 '$96,500 not eligible for a ' 48,125 - - - -- I $47,850 FUF Loan Loan M_ ax. j $5,000 0 %d Monthly Interest , Principle Rate Payments 115 %n SMI GMHF Term (upto)! -? 10 years_ Credit Don't Check Check _ Record'g 30 %M/St Pa - $17,700 6 0 $50I ' Fee $46 I $29,000 - _ � $2Q200 $7,650 0% Deferred 0% 0 %, 0 %, Deferred j Forgivable-_]_ 1 %d ARP Forgivable 1 SWHP Discount MFHA 115 %n SMI GMHF AHP RD Deferred L�CFUF 60 - of AMI --% --- - $30,480 MRB I$36,450 50% of AMI 1$25,400 1 30 %M/St Pa - $17,700 6 0 $50I ' - $34 800 $36,450 I $29,000 - _ � $2Q200 1- I $96,500 C$39,180 1$36,450 - $32,650- :,$22,700 $96,500 $43,500 1$36,450 $36,250 $25,200- - !$96,500 $46,980 '09,375 $39150 $27,100 $96,500 $50 460 $42,3.00 $421050 $29,100 $96,500 $53 940 - _- , � $45,200 $44 950 ' $31,300 '$96,500 - $57 420 - ' 48,125 - - - -- I $47,850 $33,300 - -- - - 1$96,500 -f *HH w/ Children i iiMaz $10,000 i LTV 100% :.Assets non- retirement LTV 110% $7,500 - $15,000 1' $5,000 $20,000 $24,999 '1 $35,000 f 0% 0 %, 0 %, Deferred j Forgivable-_]_ 1 %d ARP Forgivable CFUF - Unsecured Discount 5 yrs -1 /60th 115 %n SMI 1$96,500 $85,000 forgiven 30 years $96,500 30 years each 30 days; 20 years Don't Don't !Needs to Check Check Don't Check_ be good! _ - $46 &tax 4 $92 $92 1$12.42 Green admin add to' Criteria ; loan - 4 units '6 Units $5,400 CFUF - Unsecured Discount FUF 115 %n SMI 1$96,500 $85,000 t$96,500 $85,000 $96,500 T$85,000 1$96,500 I $85,00 $96,500 $___ ____1 85,000 $96,500 $85,000 1$96,500 j$85,000 ,$96,500 11$85,000 1$96,500 *One energy improvement _- - $20,000 75 %+ 1 fees 15 years 20 years Don't t r Check 620 $46 -'1$92 -f - Green Criteria 4 %d + fees 1 �10 years 4620 1$92 10 units No LTV $10,000 6.99% (6.49% Auto debit) 10 years - - $92 - Community Fix -Up Fund Targeted.Areas Gross Annual Household Income Limits 1. SCDP Target Area Rehab in Hutchinson Discount Energy Loan Program in Hutchinson $96,500 5 00 Interest Rate (Subordinate Lien) ----www.mnhousing.gov/consumers/rates/inde,x.aspx 5.75% * Check MHFA webpage for current rate. 4.00% _ Term Maximum 20 years Maximum 10 years Loan Limit $2,000 - $35,000 $20,000.00 Debt to Income Ratio (Housing expense + installment loans + revolving accounts + new loan payment) 48% 48% Maximum Loan to Value 110% of after-improved value of property 110% of after- improved value of property Business Use of Home No greater than 49% No greater than 49% _ Mobil Homes No No Separated Spouse Si nature re uirement Mort gage Only Mortgage Only Fees that can he charged to borrower (but not financed by loan proceeds) * $15 credit report fee * Mortgage/document recording fees - —$92 * $15 credit report fee * Mort age /document recording fees - $92 Fees that can be financed by loan proceeds Loan Origination Fee - 1% of Loan Amount Loan Origination Fee - 1% of Loan Amount Title & Lien Search - $25 Title & Lien Search - $25 Loan Document Preparation Fee - $50 Loan Document Pre aration Fee - $50 Rehab advising fee IRehab advisin fee ---- Revised 6 -14 -2012 — G:/HRA/MHFA CFUF &FUF /Information Sheet - - - -- - -- G: /HRA/MHFA CFUF &FUF /Information Sheet 4 New Features and Program Summary The following new program features (highlighted in yellow) will be effective beginning on the date found on Minnesota Housing's web page. Page 1 • Basic energy conservation: Energy Star rated furnace, Improve the basic livability or energy air conditioner, water heater, light fixtures; insulation; Improve the basic livability or energy efficiency of the property, y, including air sealing efficiency of the property, including additions, alterations, renovations • Basic accessibility: Ramp; widening doorways/ additions, alterations, renovations and/ Eligible Improvements and /or repairs, or bring a property hallways; moving electrical outlets and switches, modifying hardware; installing fire alarms, smoke or repairs, or bring a property into into compliance with housing detectors and other alerts; handrails, grab bars, stair compliance with housing maintenance maintenance codes or other public lifts; and bathroom fixture modifications codes or other public standards applicable standards applicable to housing. . For more expansive projects than items listed above, use to housing. the regular Fix -up Fund, Secured or Unsecured option Maximum Loan Amount $35,000 $7,500 $10,000 Minimum Loan Amount $2,000 $2,000 $2,000 Loan to Value Up to 110% of after improved value Up to 110% of after improved value N/A • Combined unsecured loan balances • Combined secured and unsecured •Combined secured and unsecured Fix -up Fund cannot exceed $10,000 Combined Loan Balance/ Fix -up Fund loan balances cannot loan balances cannot exceed $35,000 • Combined secured and unsecured Fix - Fix- exceed $3 up Fund loan balances cannot exceed Loan Consolidation Limits .May consolidate balance of •May not consolidate balance of previously $35,000 previously received Fix -up Fund loan received Fix -up Fund loan • May not consolidate balance of previously received Fix -up Fund loan Interest subordinate lien 5.99% 4'99% 6.99% 1st lien as posted on www.mnhousing.gov Rate* 6.49% for borrowers choosing to complete Auto -Pay Incentives N/A N/A an Authorization Agreement for Monthly Automatic Payment ( "auto debit") at closing Maximum Repayment Term Up to $10,000: 10 years $10,001- $35,000: 20 years 10 years 10 years Minimum Repayment Term 1 year 1 year 3 years Page 1 *Minnesota Housing interest rates are subject to change. The interest rates listed in this reference sheet are correct as of the revision date of this sheet Please visit our website at www.mnhousing.gov for the most curren t effective in terest ra tes. This reference sheet does not contain all the information needed to originate loans for sale to Minnesota Housing. Seethe Minnesota Housing Fix -up Fund Program Procedural Manual at www.mnhousing.gov for complete information. 6 Minnesota Housing 1400 Sibley Street, Suite 300 ) Saint Paul, MN 55101 -1998 ) 800.710.8871) 651.296.8215 ) mnhousing.gov Page 2 05.11.2012 10 SECURED LOANS TOPIC . LOANS Conservation andlor Basic Accessibility improvements MN Housing $400 $400 $250 Lender Processing Fee — Compensation Origination/ 1 % origination fee and other eligible costs 1 % origination fee and other eligible costs (see Lender can not charge origination fee. For Allowable Fees (see Procedural Manual) Procedural Manual) allowable fees, (see Procedural Manual) Minimum Credit Score (borrower and co- borrower/ • 620 . Alternate credit option when • 620 • Alternate credit option when borrower does not • 680 •Alternate credit option not available borrower does not have score have score Minimum 18 months following discharge Minimum 18 months following discharge of Minimum 18 months following discharge Bankruptcy Requirements of Chapter 7 or completion of repayment Chapter 7 or completion of repayment plan on of Chapter 7 or completion of repayment plan on Chapter 13 Chapter 13 plan on Chapter 13 Foreclosure Requirements Minimum 18 months following Minimum 18 months following completion of Minimum 18 months following completion of Redemption Period Redemption Period completion of Redemption Period Loan Documentation No older than 120 days No older than 120 days No older than 120 days Debt to Income 48% 48% 48% Documentation of Documented contact with County Documented contact with County Recorder/ Property tax statement and a copy of the Pro Ownership Property p Recorder /Registrar of Title or with an Registrar of Title or with an Owners and homeowner's deed Owners and Encumbrances Report Encumbrances Report Prepayment Penalty No No No Type of Note Secured. Includes reference to MN Secured. Includes reference to MN State Statute Unsecured OR Unsecured with Automated Payment. Includes reference to MN State State Statute 47.20 47.20 Statute 334.01A • Homeowner Labor Agreement: Executed by borrower when loan proceeds are for a "materials only" item, Homeowner Labor Agreement: and the borrower will be responsible for the work. Homeowner Labor Agreement. Executed New Forms Executed by borrower when loan proceeds are fora "materials only" . Accessibility Evaluation Form for Reduced Interest by borrower when loan proceeds are for "materials item, and the borrower will be Rate: Request prior approval on an item not listed in a only" item, and the borrower responsible for the work. procedural manual will be responsible for the work. • Energy Improvements for Reduced Interest Rate: Resource for establishing product eligibility *Minnesota Housing interest rates are subject to change. The interest rates listed in this reference sheet are correct as of the revision date of this sheet Please visit our website at www.mnhousing.gov for the most curren t effective in terest ra tes. This reference sheet does not contain all the information needed to originate loans for sale to Minnesota Housing. Seethe Minnesota Housing Fix -up Fund Program Procedural Manual at www.mnhousing.gov for complete information. 6 Minnesota Housing 1400 Sibley Street, Suite 300 ) Saint Paul, MN 55101 -1998 ) 800.710.8871) 651.296.8215 ) mnhousing.gov Page 2 05.11.2012 10 TO: Mayor and City Council FROM: Tom Kloss, Director of Information Technology RE: City of Hutchinson Network Security Policy DATE: 7/10/2012 Attached is the City of Hutchinson Information Technology Policy dated July 2012 and intended to replace the existing City of Hutchinson Information Technology Policy of 2006. As is customary, the policy has been reviewed by staff and recommended updates have been incorporated into the proposed policy. A copy of the proposed policy is included for your review. The areas of the policy that have been significantly revised are highlighted for your reference. It is requested that the Council consider the approval of the amended policy at the July 10 Council meeting. I will be in attendance at the meeting to address any questions. 11<<) City of 11 tuchinson Information Technology G P ic oly JULY 2012 SECTION 1— INFORMATION TECHNOLOGY POLICY INTRODUCTION 1.1 Purpose /Overview 1.2 Reporting 1.3 No Expectation of Privacy 1.4 Disciplinary Action 1.5 Separation of Employees SECTION 2 — INFORMATION TECHNOLOGY DEFINITIONS SECTION 3 — INFORMATION TECHNOLOGY USE 3.1 Hardware and Software Acquisition/Purchasing 3.2 Installation, Downloads, and Configuration 3.3 Support 3.4 Licensing 3.5 Data Management and Protection 3.6 Portable Information Systems 3.7 Electronic Mail (Email) — Records Retention/Data Practices 3.8 Internet 3.9 Intranet 3.10 Cell Phones and Pagers - Operational Parameters 3.11 Personal Use of Information Technology Equipment 3.12 Prohibited - Inappropriate Non - business Use 3.13 Violation of Policies or Requirements SECTION 4 — INFORMATION TECHNOLOGY SECURITY 4.1 Purpose 4.2 Logins and Passwords 4.3 Physical Security 4.4 Shut Down Procedures 4.5 Virus Protection 4.6 Remote Network Access 4.7 Mobile Devices 4.8 Wireless Access 4.9 Social Engineering Appendix A Incident Response Plan 2 City of Hutchinson Information Technology Policy Section 1— Information Technology Policy General Information 1.1 Purpose/ Overview: The purpose of this policy is to inform and provide direction to all users regarding appropriate use and management of the City's Information Technology (IT) systems and resources. The intent is to provide a clear understanding of what is expected of employees and management in the area of information technology. All users must be authorized to use City IT systems through the approval of the user's department supervisor and IT Department. Use of City technology equipment is intended for business - related purposes. All computers and peripherals are the property of the City and should be respected as such by all users. Further, the policy sets standards to protect the City of Hutchinson's IT Systems from business interruption, unauthorized or inappropriate access, and to maintain security. This policy applies to all staff, vendors, consultants, volunteers, interns, and all others who have access to or use the City's electronic systems in any form or manner. This policy shall apply equally to all that have access. IT systems include, computers, E -Mail, Internet, Intranet, printers, software, telephones, voice mail, cell phones, pagers, and similar equipment as deemed appropriate. All users are responsible for reading and following information that may be distributed from time - to -time by the IT department about appropriate precautions to protect City IT systems. City employees /users given access to the City's information technology network and computing systems are granted such access to conduct official City business. Such systems have been purchased, installed, and maintained by the City to facilitate the conduct of job responsibilities in the delivery of City services. The City Administrator and the Technology Director are authorized to interpret and /or grant written exceptions to this policy. The written exemptions will be filed in the IT department accompanied by a written request for exemption by a department director. 3 1.2 Reporting Responsibility to Notify Employees should notify their immediate supervisor, the IT Director, the Human Resources Director, the City Administrator or any member of management upon learning of violations of this policy. Employees who violate this policy will be subject to disciplinary action, up to and including termination of employment. Supervisor's Responsibility Managers and supervisors are responsible for ensuring the appropriate use of computers, E -Mail, voicemail, and internet access through training, supervising, coaching, and taking disciplinary action, when necessary. Supervisors shall report any misuse involving any technology system to the IT Director, HR director or City Administrator immediately upon learning of any misuse. 1.3 No Expectation of Privacy The City reserves and intends to exercise the right to monitor and audit contents of E- Mail communications, voice mail communications, use of internet services, and other means of electronic transfer of information for any business purpose. The Information Technology Director will periodically review employee communications to ensure compliance with City policies or to detect policy violations. Directors and supervisors may review electronic communications of the employees they supervise to determine whether there have been any security breaches, violations of City policy, or other violations of duty on the part of employees. 1.4 Disciplinary Action Violation of this policy may be grounds for disciplinary action, up to and including termination of employment with the City of Hutchinson. Discipline does not preclude separate criminal penalties resulting from an employee's illegal use of any IT systems. In signing the acknowledgement form, the employee acknowledges that this document has been read and reviewed and that he /she understands the policy. 1.5 Separation of Employees When an employee leaves employment through resignation or termination, the supervisor is responsible to immediately notify IT. To ensure security and confidentiality for the City's technology systems, IT will disable the user's account and notify Local Government Information Services (LOGIS) to disable the user's account and access to all LOGIS systems and applications. Section 2 — Information Technology Definitions Unless otherwise indicated, the following words and terms have the meanings indicated below: Blog — is short for Web log. A log is a Web page that serves as a publicly accessible personal journal for an individual. Blogs often reflect the personality of the author. City — Refers to the City of Hutchinson Configuration — is the way a system is set up or the assortment of components that make up the system. Configuration can refer to either hardware or software or the combination of both. Download — is a copy of data or software from a main source to a computer device. The term is often used to describe the process of copying a file or software from an online service or bulletin board service to a computer. Downloading can also refer to the copying of a file from a network file server to a computer on the network. Electronic Mail (E -Mail) - is a network application that allows users to exchange messages over networks. Emoticons — electronic facial expressions used to indicate emotions (i.e. smiles -:) or (D) File Server — is an enhanced computer with network operating software that is used for file storage, application functionality, and managing network resources. Information Technology (IT) — manages the process and use of information on multiple platforms. Information Technology (IT) Systems — includes, computers, printers, software, E -Mail, Internet, Intranet, telephones, voice mail, and similar equipment as deemed appropriate. Internet — is the global network connecting millions of computers and networks around the world. Intranet - is network base web site accessible only within an organization. Intranet Web sites look and act just like any other Web site, but firewall security restricts external access. Installation — is the process of connecting and configuring IT systems hardware and software. Licensing — is the legal compliancy of IT systems hardware and software assets. Local Area Network (LAN) — connects computers and buildings together. 5 PDA — is a Personal Digital Assistant (i.e. handheld devices such as Palm Pilots, Windows Pocket PC, B1ackBerry, Treo, HP IPaq, Dell Axim). Peripheral — is a computer or device, internal or external such as a CD -ROM drive, printer, keyboard, mouse, monitor that is not part of the computer itself. Phishing — is the act of sending an E -Mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. Portable Equipment — is the hardware that is small, lightweight and mobile (i.e. laptop computers, tablet pc's, hand -held computers, Personal Data Assistants, projectors, flash drives and digital cameras). Social Engineering — is the act of obtaining or attempting to obtain otherwise secure data by conning an individual into revealing secure information. Phishing is a type of security attack that relies on social engineering. Software — system software includes the operating system and all utilities that enable the computer to function. Application software includes programs that assist users (i.e. word processors, spreadsheets, and database management systems). SPAM — is electronic junk mail or junk newsgroup postings. Spoofing (E -Mail) — is the forging of an E -Mail to make it appear as if it came from somewhere or someone other than the actual source. Users — regular, part -time, and temporary employees, vendors, consultants, volunteers, interns, and other authorized users. 0 Section 3 - Information Technology Use 3.1 Hardware and Software Acquisition/Purchasing The IT Department must approve all hardware and software purchases prior to acquisition to ensure consistency and compatibility with the City's IT network and other systems. No hardware device may be plugged into the City network or connected to a City network- connected device without prior approval from the IT Department. All hardware and software must be owned by the City. Software applications not required for official City business are prohibited. 3.2 Installation, Downloads, and Configuration All users are prohibited from installing and /or downloading software, including product demonstrations, without prior written approval from the IT Director. Written form can be E -Mail. Users are not allowed to manipulate or change hardware and software standard configurations controlling basic computer functioning. Software installed and setup on the computer by IT staff shall not be re- configured by the user. Re- configuring includes any modifications to the operating system configuration files; config.sys, autoexec.bat, initialization files for Windows, or application setup files. Customizing a personal computer is to be limited to items including wallpaper, screen savers, icons, toolbars, and colors. Customizing will be limited to the original software build. No downloading of screensavers or wallpaper will be allowed. Information Technology staff must always be contacted for hardware support. City employees are prohibited from downloading, acquiring, or installing any software (personal, Internet, E -Mail, outside vendor) on hardware including but not limited to; desktops, laptops PDA's, Memory sticks, wireless devices, and servers without prior consent and approval from the IT Department. 3.3 Support The IT Department should be contacted for hardware and software support by utilizing the City's help desk software. Users unable to gain access to the help desk through normal channels and who require immediate assistance, should contact the IT help desk at Ext. 4200. 3.4 Licensing To ensure license compliancy with Federal Law, all software must be purchased by and licensed to the City of Hutchinson and maintained by the City IT Department. Software 7 is licensed to an organization for specific pieces of equipment. If there is any question about the legality of the software usage, contact the IT Department. 1. Development Any software programs, developed for use by the City, become the property of the City. These software programs may not be sold or distributed. This includes, but is not limited to, macros and templates created for word processing, spreadsheets, presentations, and databases. 29 Copyright Laws Most computer software programs, applications and templates are copyrighted, and it is illegal to make copies. Under no circumstances may users make copies of City or privately owned software. City employees are required to abide by federal copyright laws and to abide by all such licensing agreements. If there is any question about the legality and appropriate use of the software, it should be directed to the IT Staff. To avoid violation of the City's license agreements with software vendors, at no time shall any software purchased by the City be installed on any computer that is not owned by the City, or be removed from City offices without authorization by the IT Director. To prove legal ownership of software, the City must have the original diskette s/CD s/DVD and manuals stored on City property. IT staff may periodically check for software that may be in violation of the above policy. 3.5 Data Management and Protection Under the provisions of the Minnesota Data Practices Act, all data stored on computer media owned, leased, or rented by the City is considered to be owned by the City. Data is subject to the Minnesota Data Practices Act and its use and dissemination must be consistent with the data classification under the Minnesota Data Practices Act. Review and investigation of this data will be consistent with those classifications and related requirements. The City's Administration Department should be contacted with questions regarding the classification of public or private data. 1. Data Ownership All software, programs, applications, templates, E -Mail messages, data, and data files, and voicemail messages residing on municipal computer systems or storage media or developed on municipal computer systems are the property of the City of Hutchinson. The city retains the right to access, copy, modify, destroy, delete or erase this property. 0 2. Data Storage Each network user is assigned an individual directory (H:), and workgroup common directory (G:), a city -wide shared directory (I:), and possibly other specialized directories which can be used for storing city business files. The IT Department backs up all data except for any files that are stored on the hard drive of the individual workstation. Employees are encouraged to keep any necessary files on the network. Any files on the local computer will not be the responsibility of IT department. Employees are also expected to delete old files regularly to help maintain adequate system storage capacity. The City reserves the right to delete old files that have not been used for a period of two years. 3. Portable Media Files To facilitate off -site work, users may copy appropriate work files to and from portable media such as diskettes, CD's, or portable drives. No other files or information may be copied to or from the City computers. A current copy of the portable file(s) must be maintained on the City server. Portable media that leaves the City property should only be used to temporarily store data and only City owned media may be used for City data storage. Safekeeping is of the highest priority for portable media containing City data. 4. Password Protection If any software product that the City has purchased has the option to have files password protected, the password must always be shared with the user's appropriate supervisory personnel and the City IT staff. This is the only exception to sharing of IT related passwords. Password protection of files must be approved by the user's supervisor and IT, however, it is not recommended by the IT staff. In any event, the IT Department must be notified that the password option is being activated. 3.6 Portable Information Systems: Portable personal computer(s), laptops, digital cameras, projectors, and other City owned portable equipment can be used for City business, outside of City facilities. When employees check out portable equipment they are expected to provide appropriate "common sense" protection against theft, accidental breakage, environmental damage and other risks. Desktop computers and attached devices are not to be removed from City buildings. The user is responsible for the back up of or loss of any data stored on the standalone or portable computer. IT staff is available to assist in the development of procedures for disaster recovery. 9 3.7 Electronic Mail (E- Mail)- Record Retention/ Data Practices This section of the policy establishes practices to protect the City's E -Mail records and to adhere to the Minnesota Data Practices Act and the General Records Retention Schedule for Minnesota Cities. 1. Purpose The E -Mall system is a City -owned tool and is to be used for matters directly related to the business activities of the City of Hutchinson and as a means to further the City's mission by providing services that are efficient, accurate, timely and complete. In order to provide excellent services, the City promotes strong working relationships among employees and a supportive working environment. For example, news about employees or notices of department events would be considered as City business. Employees are responsible for adhering to City standards when E -Mail is created, sent, forwarded or saved. Failure to adhere puts the City and the individual at risk for legal or financial liabilities, potential embarrassment and other consequences. E -Mail documents are generally considered to be public documents. Use of the City's E -Mail system is a privilege, not a right, which may be revoked at any time for abusive or any inappropriate conduct as determined by the City. 2. Public /Private E -Mail records The contents of E -Mail messages determine whether an E -Mail is public or non- public /private. It is the responsibility of the employee sending an E -Mail to determine whether the E -Mail is public or non - public /private. In the case of E -Mails received from outside of the organization, it is the responsibility of the employee receiving the E -Mail to determine whether it is public or non public /private. If an employee is uncertain whether an E -Mail is public, he /she should contact the Administration Department. When an E -Mail is sent or received externally and it is determined that it is public information, the E -Mail and any attachments to the E -Mail must be retained in order to document the transaction. Therefore, all public E -Mails must be either printed and filed as a hard copy or moved to the City's network Servers. All public E- Mails, whether in hard copy form or contained on the network's drives, must be managed according to the Minnesota Data Practices Act and the General Records Retention Schedule for Minnesota Cities. The content of an E -Mail determines how long the message needs to be retained. E -Mail is intended as a medium of communication, not for information storage; therefore, the E -Mail system should not be used for the storage or maintenance of official City records or other City information. Likewise, E -Mails stored on the network should be limited only to public E -Mails that must be retained according to the Records Retention Schedule. Users are not allowed to auto - forward E -Mail outside the City to a personal E -Mail account (i.e. Hot Mail, Yahoo, etc.). 10 3.8 Internet Access to the Internet through City equipment and connections is a resource and a tool that is provided and is to be used for matters directly related to City business activities. Employees are expected to exercise good judgment. Use of the Internet through City computers is a privilege, not a right, which may be revoked at any time for abusive or any inappropriate conduct as determined by the City. The Internet is available to the City employees for research, education, and communications directly related to the mission, statutory requirements, or work tasks of the City. City employees must honor copyright laws regarding protected commercial software or intellectual property. Individual users of the Internet should minimize unnecessary network traffic that might interfere with the ability of others to make effective use of this shared network resource. Employees are responsible for adhering to City standards when browsing the Internet. Failure to adhere puts the City and the individual at risk for legal or financial liabilities, potential embarrassment and other consequences. The City retains the right to use management software to monitor end user activity. This software may monitor and limit Internet activity in order to ensure the most efficient use of our valuable resources. Access to specific Internet sites may be blocked at the sole discretion of the City. Inappropriate non - business uses include, but are not limited to: audio, live /internet radio, graphic or movie files (to include streaming audio and video, MP3, Jpg, Tif, Gif, Mpg, AVI, etc.); games; jokes; instant messaging; content of an offensive or pornographic nature; copyrighted material and large data files not directly related to City business. These items must not be downloaded from the Internet. These types of files can be large and affect the network or PC performance or carry viruses. Instant messaging is not allowed because it is not protected /encrypted and lacks anti - malware filtering. If additional access is required for the job, the employee must contact thher supervisor. 3.9 Intranet Future Section 3.10 Cell Phones Management reserves the right to determine whether City employees are required to have a cell phone, pager, and /or PDA available depending upon their position and job responsibilities. The City reserves the right to manage its employees, its resource allocation, and its equipment per all existing and subsequent agreements and policies. Department Directors are responsible for implementation of and compliance with this policy. II 1. The use of city assigned and personal cellular/ wireless phones on-the-job has restrictions for use during the following activities due to the distraction and lack of concentration that they present to safe work performance: a) Operating a moving vehicle. Your first responsibility is to safely operate the vehicle. Cellular and other wireless conversations should be kept to an absolute minimum. Any lengthy conversation will require that the vehicle be brought to a stop at a safe location, preferably off the main road. Conversations, taking notes, dialing, answering or reading of displays must be avoided while moving on very busy streets, highways, interchanges, during rush hours or in other heavy or congested traffic. b) Operating maintenance /construction equipment. Use of any cellular phone or other wireless device (to include hands free devices) will not be authorized while operating a moving and/or in gear motorized off road (maintenance /construction) piece of equipment. c) Work site. Use of cellular phones or other wireless devices that will be a distraction to the user and or present an unsafe work environment is not authorized. Such work sites include but are not limited to: Road repair, maintenance and construction, operating or repairing energized equipment such as electrical panels, motors, or energized circuits. d) Use of cellular phones for personal conversations is restricted to non -duty time, such as breaks, lunch, etc. Supervisors will have the authority to restrict or prohibit use of personal cellular phones at any time on-the-job when they consider such situations and use may present a distraction or safety hazard to the employee, co- workers, contractors and /or general public and city or private property. e) Emergency calls. Use of cellular phones or other wireless devices to call for help or to help others in an emergency is permitted. If you observe a serious accident, crime in progress or other serious emergency situation where lives are in danger, call 911, give the exact location and stay on the line as long as the dispatcher requires. However, do not place yourself or others in danger while doing so. If operating a vehicle, pull off the road before placing the call. 3.11 Personal Use of Information Technology Equipment 12 1. General The City of Hutchinson offers users the privilege of personal use of its technology. Personal use of the City technology is not private. Recognizing that users will benefit from using technology, personal use is allowed using the following requirements: • Only City users are to use the computers and computer related peripherals. • Personal use is permitted only during non -work hours. • Users must use their own media (disks, CD's, portable disk drives) and paper. No personal files or data are to be stored on the City file servers or computer hard drives. • Personal use must not interfere with use of the technology for City business. • City technology may not be used for personal use outside City facilities (i.e. no take home use of City technology). • Users will not use City owned equipment for personal gain or profit. 2. E -Mail During working hours, E -Mail will be used exclusively for City business. Employees may write, send and read personal E -Mail correspondence only during non - business hours. Non - business hours are defined as, before 8 am and after 4:30 pm Monday through Friday and weekends. The City retains the right to monitor all E -Mall activity. Using the City E -Mail to participate in any kind of non - business related list servers, broadcast mailing or chain mailing is prohibited. Personal web posting from a City E -Mail account is prohibited. 3. Internet Employees are cautioned that obscene, offensive or other inappropriate information may be encountered while using the Internet. The City and its support contractors cannot entirely prevent this from occurring. City employees and contractors employed by the City are expected to refrain from disseminating such information. Internet use by individuals may be monitored by the IT Department or by department management. This includes external links and services being accessed by employees and City contractors through the City provided Internet service. During working hours, the internet will be used exclusively for City business. Employees may access the internet at the end of a shift only. Personal use of the internet will not be allowed before a shift begins or during breaks and lunch. Personal use at the end of a shift will be allowed but only if the equipment being used is not needed by the next shift and the personal use is not disruptive to others working in the area. 13 4. Desks Telephones The Finance Department will monitor all phone activity and audit for excessive personal use. In the event of excessive personal use, the employee may be required to reimburse for all costs associated with the personal calls and may have phone use privileges revoked. 5. Cellular Telephones The issuance and use of City -owned cellular telephones will be determined by the department head. The City does recognize that occasionally users may need to use the City issued cellular telephone for personal use. City cellular telephones may be used for personal use as long as it does not interfere with the normal duties for the user. The Finance Department will monitor all phone activity and audit for excessive personal use. In the event of excessive personal use, the employee may be required to reimburse for all costs associated with the personal calls and may have phone use privileges revoked. 6. Copiers Employees will reimburse the City of Hutchinson for personal copies at the rate listed in the fee schedule, including two sided copies. Personal copies need to be reimbursed within 24 hours from the date the expense was incurred. 2. Fax Machines All personal faxes, sent or received, on City owned fax machines will be reimbursed to the City of Hutchinson at the rate listed in the fee schedule. Personal faxes need to be reimbursed within 24 hours from the time the expense is incurred. 3. Printers Employees will reimburse the City of Hutchinson for personal use of printers at the rate listed in the fee schedule. Personal prints need to be reimbursed within 24 hrs from the time the expense is incurred. 4. Home Use License The City Administrator, based on job description /function, will approve software packages for home use. The Information Technology Director will provide license information and procedures to the end user prior to installation. Certain software packages have Home Use Licensing. With home use licensing the Information Technology Director will provide account information and procurement instructions upon City Administrator approval. Software rules, regulations and agreements will be discussed and addressed on a case -by- case basis. 14 3.12 Prohibited - Inappropriate Use Use of City computers, software and peripherals for the following is strictly prohibited at all times: • Displaying, printing or transmitting sexually explicit images, messages, and cartoons. • Displaying of "Nude or Partially Denuded figures" as defined in the Hutchinson Municipal Code. • Displaying, printing, or transmitting racial or ethnic slurs or comments, racially derogatory jokes, off -color jokes, or anything that might be construed as harassment or disrespectful of others, including anything that fosters a hostile work environment or perpetuates discrimination on the basis of race, creed, color, age, religion, sex, marital status, status with regard to public assistance, national origin, physical or mental disability or affectional preference. • Reading other employees' E -Mail or documents without permission or without a legitimate business reason. • Using the City's computer systems or knowingly allowing another to use the City's systems for personal profit, commercial product advertisement or partisan political purposes. The E -Mail system may not be used to solicit anyone for commercial ventures, religious or political causes. • Infringing on third party copyrights or other intellectual property rights, license agreements or other contracts; for example, illegally installing or making available copyrighted software. • Inappropriately copying, modifying, distributing, transmitting or displaying files or other data or information resources. • Sharing your user ID or password with any person who uses it to obtain confidential or other information to which they would not normally have access. Sharing your user ID or password with another person deems you solely responsible for the actions of that other person. • Deliberately damaging or disrupting a computing system (hardware or software), altering its normal performance, or causing it to malfunction. • Attempting to gain unauthorized access to internal, remote, or external computer systems. • Attempting to decrypt system or user passwords. • Unauthorized copying of system files. • Intentionally attempting to "crash" network systems or programs. • Willfully introducing computer "viruses" or other disruptive/ destructive programs into the organization network or into external networks. • Sending anonymous E -Mail messages. • Sending chain letters, advertisements, solicitations or non - business related mass mailings. • Concealing the identity of an E -Mail sender or taking someone else's identity. • Participating in Internet "Chat Rooms /Groups" or "Use Net" at any time. • Disclosing confidential proprietary City information via the electronic systems. 15 • Violation of any laws and regulations of the United States or any other nation, or the laws and regulations of any state, city, province or other local jurisdiction in any material way. • Internet based radio is strictly prohibited. (These are sites that allow you to listen to streaming radio or music over the internet) • Any other use that the City deems inappropriate. The policies related to E -Mail and Internet use have the same force and effect during non - business hours as it does during business hours. 3.13 Violation of Policies or Requirements Employees are responsible for adhering to the City's standards when using City systems. Failure to adhere puts our City and the individual at risk for legal or financial liabilities, potential embarrassment and other consequences. Violation of any of these policies or requirements may result in the revocation of the violator's use of any or all City IT systems and may be grounds for disciplinary action, up to and including termination of employment with the City of Hutchinson. Discipline does not preclude separate criminal penalties resulting from an employee's illegal use of any IT systems. SECTION 4 — Information Technology Security 4.1 Purpose The purpose of this section is to ensure, secure, protect, and allow appropriate access to City of Hutchison IT systems and resources. 4.2 Logins and Passwords All users must use and maintain unique City- issued login IDs for computer and network related access. Multi -user or generic login ID are permissible only in special circumstances approved and maintained by IT. User passwords must adhere to the following requirements: 1. Have a minimum of at least eight alphanumeric characters in length. 2. Must be changed every 180 days or as determined by the IT department. 3. Have a least one capital letter, one lower case letter and one numeric digit or character. 4. Have not been previously used in the last ten password rotations. 5. Not include users first or last name. 6. Not be the same as a non -City password (i.e. personal banking account). 16 Appropriate network access shall be assigned by the IT department to each user login ID and users may only log into computers and equipment with their own assigned login ID. Passwords are not to be shared with anyone, and will be forced to change every 180 days or as determined by the IT department. Passwords should not be easily guessed. Anyone forgetting their password, or suspect that their password's security has been compromised, should contact the IT department to be issued a new one, which must then be changed immediately. A user's account will be locked after three unsuccessful password attempts. The user account will remained locked for 30 minutes. After that time, the user may sign in to their account using the correct password. Department heads or supervisors are required to notify IT of new and terminated users. Users should only be granted the access needed to do their job. The IT Director and staff along with the LOGIS network support personnel shall have full network supervisory rights. The password for the Supervisor login will be known by the IT Director and backup personnel only Seasonal Employees will not be granted access to the network unless there is a unique circumstance that requires the access as determined by the City Administrator after consultation with the department director and the IT Director. 4.3 Physical Security Users are expected to provide reasonable security to their computer workstations and related IT equipment. This includes ensuring that passwords are not written down in accessible places, removable media must be kept in a secured area, and that confidential data is not displayed in such a manner that unauthorized personnel can view it. All IT equipment is City property and must remain in the approved areas. Users may not move IT equipment outside of its assigned area without prior approval from the IT department. Designated portable equipment, such as projectors, laptop computers, and digital cameras may be removed from City buildings only for City business. Unassigned portable equipment must be reserved and checked out only to City users. Users are expected to provide appropriate "common sense" protection against theft, breakage, environmental damage, and other risks. Assigned portable network equipment must be docked and connected to the City hard cabled network. When leaving the workstation or building for an extended period, users should log out of applications that access the network or allow communications with other network systems. Employees must immediately report to their IT staff any loss of hardware or software, or compromise of systems. City IT staff will notify LOGIS immediately if applicable. 17 Compromise of the workstations include but are not limited to, viruses, spy ware, passwords, etc. 4.4 Shut Down Procedures Users are required to restart computers at the end of their workday. Network computers should not be powered off. The procedure to exit a network computer is: Start, Shut Down, Restart and power off monitor. Powering off the computer or failing to restart at the end of the day can increase security vulnerabilities. 4.5 Virus Protection All computer workstations, laptops and servers are protected from viruses using up -to- date antivirus and antispyware software. Users may not alter the system's configuration or take other steps to defeat virus protection. All files on removable media must be scanned for viruses prior to opening the file(s) on a City computer. Any files suspected or known to contain viruses must be immediately reported to the IT department for proper handling. 4.6 Remote Network Access - VPN Remote access is defined as the ability to connect to a computer or network from off -site, such as from home, hotel, conference, Internet kiosk, etc. Remote access into the City's network, or any City -owned device, may be granted upon meeting the following conditions: 1. Business - related purpose requested by department head and approved by the City Administrator and IT Manager. Requests must be in writing (email) with a detailed explanation of need and costs associated. 2. Use of City IT approved standard encryption and /or City supported VPN (Virtual Private Network) technology. This access must only be used on City approved devices with the exception of Outlook Web Access. 3. Authentication and access control will be maintained via the City's domain. Valid network login and passwords are required. 4. While remotely connected, no one but the authorized user may have access to the computer making the connection. 5. The remote computer must comply with current anti - virus, firewall, operating system patches, and security parameters as specified by the IT division. All remote users are subject to the rules and regulations set forth in this entire policy for all users. Users should follow proper data practices protocols as directed by Minnesota State Statutes. Storing of business related information on a home computer is prohibited. 4.7 Mobile Devices Mobile devices are defined as compact devices that can contain City owned data such as email, files, pictures, etc. These devices are commonly known as Pocket PC's, Windows Mobile, Itouch, Iphone, and Blackberry PDA's. Mobile devices storing city -owned data (i.e. email, files, pictures, etc) will be purchased, configured, and supported by the City's IT Department. HD Personal mobile devices are not supported by the City's IT department and should not have a direct or wireless connection to the City's infrastructure, including but not limited to the network, computers, laptops and servers. If email access is desired from a mobile device that is not City- owned, users may connect to the Internet from a non -city- access network and utilize Outlook Web Access (OWA) for PDA devices. The OWA address can be obtained from the IT department. All city -owned mobile devices will be recognized as a compliment to a PC /laptop and will adhere to the same security policy measures, for instance regarding software installation, portable media, and disposal. The City -owned mobile devices require an 8 character alphanumeric password that needs to be changed at a minimum of 180 days. These devices will need to be connected to the City's email server or Blackberry server for email synchronization. Storing City -owned data on a mobile provider's network is strictly prohibited (e.g. Verizon Wireless Sync). If a mobile device is lost or stolen, the end user will report this to the IT Department as soon as possible. 4.8 Wireless Access Unauthorized wireless access into the City's computer network is strictly prohibited. Wireless access, is defined but not limited to, 802.11 (WiFi), Bluetooth, WiMax and cellular technologies. Users may not attempt to scan, connect to, or install any wireless computing device on City equipment or property. Wireless access must be authorized and configured by the City's IT department. Up -to -date virus protection, security patches, and firewall hardware and /or software must be utilized. Any authorized wireless access must utilize standards -based encryption approved by the City's IT department, and conform to adopted security practices as governed by the City and /or state and federal government requirements. 4.9 Social Engineering At some point, an employee may be a victim of social engineering. Social engineering is the act of manipulating people into performing actions or divulging confidential information. While similar to a confidence trick or simple fraud, the term typically applies to trickery or deception for the purpose of information gathering, fraud, or computer system access; in most cases the attacker never comes face -to -face with the victim. Example: An employee may receive a phone call stating the caller is a support person from a company the City deals with. They may ask for user names, passwords etc. If this type of situation is encountered, contact the Director of IT or the direct supervisor, immediately. ***Employees are required to sign off on the overall IT Policy to demonstrate their willingness to adhere to the policy. 19 Employee Copy Affidavit of Receipt I (print name) have seen and been given the City of Hutchinson "Information Technology Policy" (revised January, 2006) and agree to abide by its terms. I fully understand that all information on the file server or the local workstation is the property of the City of Hutchinson, and therefore will be subject to periodic checks. I also understand that violation of any part of the policy will lead to disciplinary action up to and including termination. Signature Affidavit of Receipt Date 7/2012 Employer Copy I (print name) have seen and been given the City of Hutchinson "Information Technology Policy" (revised January, 2006) and agree to abide by its terms. I fully understand that all information on the file server or the local workstation is the property of the City of Hutchinson, and therefore will be subject to periodic checks. I also understand that violation of any part of the policy will lead to disciplinary action up to and including termination. Signature 20 Date 7/2012 TO: Mayor and City Council FROM: Tom Moss, Director of Information Technology RE: Criminal Justice Information Services (CJIS) Security Policy DATE: 7/10/2012 Attached is the Criminal Justice Information Services (CJIS) Security Policy dated June 9, 2011. One of the requirements of accessing information from the CJIS network is to adhere to a strict level of network security standards. This policy applies to all staff or computers systems that access information from the CJIS network. (Entire Police Department, IT staff and Legal staff) A copy of the proposed policy is included for your review. Staff is recommending adoption of the CJIS security policy, as written, to comply with FBI requirements. It is requested that the Council consider the approval of the Criminal Justice Information Services (CJIS) Security Policy at the July 10 Council meeting. I will be in attendance at the meeting to address any questions. J� o) U. S. Department of Justice Federal Bureau of Investigation Criminal Justice Information Services Division .r 10 Criminal Justice Information Services (CJIS) Security Policy Version 5.0 2/09/2011 CJISD- ITS -DOC- 08140 -5.0 Prepared by: CJIS Information Security Officer Approved by: CJIS Advisory Policy Board 11 0) Law enforcement needs timely and secure access to services that provide data wherever and whenever for stopping and reducing crime. In response to these needs, the Advisory Policy Board (APB) recommended to the Federal Bureau of Investigation (FBI) that the Criminal Justice Information Services (CJIS) Division authorize the expansion of the existing security management structure in 1998. Administered through a shared management philosophy, the CJIS Security Policy contains information security requirements, guidelines, and agreements reflecting the will of law enforcement and criminal justice agencies for protecting the sources, transmission, storage, and generation of Criminal Justice Information (CJI). The Federal Information Security Management Act of 2002 provides further legal basis for the APB approved management, operational, and technical security requirements mandated to protect CJI and by extension the hardware, software and infrastructure required to enable the services provided by the criminal justice community. The essential premise of the CJIS Security Policy is to provide appropriate controls to protect the full lifecycle of CJI, whether at rest or in transit. The CJIS Security Policy provides guidance for the creation, viewing, modification, transmission, dissemination, storage, and destruction of CJI data. This policy applies to every individual— contractor, private entity, noncriminal justice agency representative, or member of a criminal justice entity —with access to, or who operate in support of, criminal justice services and information. The CJIS Security Policy integrates Presidential directives, Federal laws, FBI directives and the criminal justice community's APB decisions along with nationally recognized guidance from the National Institute of Standards and Technology. The Policy is presented at both strategic and tactical levels and is periodically updated to reflect the security requirements of evolving business models. The policy features modular sections enabling more frequent updates to address emerging threats and new security measures. The provided security criterion assists agencies with designing and implementing systems to meet a uniform level of risk and security protection while enabling agencies the latitude to institute more stringent security requirements and controls based on their business model and local needs. The CJIS Security Policy strengthens the partnership between the FBI and CJIS Systems Agencies (CSA), including, in those states with separate authorities, the State Identification Bureaus. Further, as use of criminal history record information for noncriminal justice purposes continues to expand, the CJIS Security Policy becomes increasingly important in guiding the National Crime Prevention and Privacy Compact Council and State Compact Officers in the secure exchange of criminal justice records. The policy describes the vision and captures the security concepts that set the policies, protections, roles, and responsibilities with minimal impact from changes in technology. The policy empowers CSAs with the insight and ability to tune their security programs according to their needs, budgets, and resource constraints while remaining compliant with the baseline level of security set forth in this policy. The CJIS Security Policy provides a secure framework of laws, standards, and elements of published and vetted policies for accomplishing the mission across the broad spectrum of the criminal justice and noncriminal justice communities. 2/09/2011 11 ' CJISD- ITS -DOC- 08140 -5.0 l Mr. George A, White, FBI CJIS Information Security Officer Mr. Jean W. Archambauft Chief, Technical Planning and Control Unit Mr. William G. McKinsey, Chief, Information Technology Management Section Mr. Jerome M. Pander, Deputy Assistant Director, FBI CJIS Division Mr. Daniel D. Roberts, Assistant Director, FBI CJIS Division Captain Charles E- Bush, Vice - Chair, Security and Access Subcommittee Captain William M. Tatun, Chair, Security and Access Subcommittee Captain Thomas W. Turner, Second Vice- Chair; Advisory Policy Board Mr. William Casey, First Vice Chair, Advisory Policy Board Colonel Steven F. Cumoletti, Chairman, Advisory Policy Board 2/09/2011 CJ I S D- I TS -DOC- 08140 -5.0 , i t U' M `01) ii Executive Summaryi Approvals......................................................................................................... ............................... Tableof Contents .............................................................................................. ............................... i Listof Figures ................................................................................................. ............................... vi l IIntroduction ............................................................................................... ............................... 1.1 Purpose ................................................................................................... ..............................1 1.2 Scope ...................................................................................................... ..............................1 1.3 Relationship to Local Security Policy and Other Policies ..................... ..............................1 1.4 Terminology Used in This Document .................................................... ..............................2 1.5 Distribution of the CJIS Security Policy ................................................ ..............................2 2 CJIS Security Policy Approach ................................................................. ..............................3 2.1 CJIS Security Policy Vision Statement .................................................. ..............................3 2.2 Architecture Independent ....................................................................... ..............................3 2.3 Risk Versus Realism .............................................................................. ..............................3 3 Roles and Responsibilities ......................................................................... ..............................4 3.1 Shared Management Philosophy 4 3.2 Roles and Responsibilities for Agencies and Parties ............................. ..............................4 3.2.1 CJIS Systems Agencies CSA 5 3.2.2 CJIS Systems Officer ( CSO) ........................................................ ..............................5 3.2.3 Terminal Agency Coordinator ( TAC) .......................................... ..............................6 3.2.4 Criminal Justice Agency ( CJA) .................................................... ..............................6 3.2.5 Noncriminal Justice Agency ( NCJA) ........................................... ..............................6 3.2.6 Contracting Government Agency CGA 7 3.2.7 Agency Coordinator AC ............................................... ............................... 3.2.8 CJIS System Agency Information Security Officer (CSA ISO) .. ..............................7 3.2.9 Local Agency Security Officer LASO ••••••••- ••••••••••••.••••.•••••••••••8 3.2.10 FBI CJIS Division Information Security Officer (FBI CJIS ISO ) .............................8 3.2.11 Repository Manager ............................................................... ............................... 3.2.12 Compact Of ficer ........................................................................... ..............................9 4 Criminal Justice and personally identifiable Information ......................... .............................10 4.1 Criminal Justice Information (CJI) ....................................................... .............................10 4.1.1 Criminal History Record Information ( CHRI) ............................ .............................10 4.2 Access, Use and Dissemination of Criminal History Record Information (CHRI) and NCICHot File Information ................................................................... .............................10 4.2.1 Terminology 10 4.2.2 Proper Access, Use, and Dissemination ...................................... .............................11 4.2.2.1 Proper Use of CHRI .............................................................. .............................11 4.2.2.2 Proper Use of Hot File Inf ormation ..................................... ..............................1 l 4.2.2.2.1 Use for Official Purposes ............................................. ............................... 11 4.2.2.2.2 Access and Dissemination for Other Authorized Purposes ........................ 11 4.2.2.2.3 CSO Authority in Other Circumstances ...................... ............................... 11 4.2.3 Storage ......................................................................................... .............................12 2/09/2011 ' C1ISD- ITS -DOC- 08140 -5.0 4.2.4 Justification and Penalties ........................................................... .............................12 4.2.4.1 Justification ........................................................................... .............................12 4.2.4.2 Penalties ................................................................................ .............................12 4.3 Personally Identifiable Information ( PII) .............................................. .............................12 5 Policy and Implementation ....................................................................... .............................13 5.1 Policy Area 1: Information Exchange Agreements .............................. .............................14 5.1.1 Information Exchange ................................................................. .............................14 5.1.1.1 Information Handling ............................................................ .............................14 5.1.1.2 State and Federal Agency User Agreements ........................ .............................14 5.1.1.3 Criminal Justice Agency User Agreements .......................... .............................15 5.1.1.4 Inter - Agency and Management Control Agreements ........... .............................15 5.1.1.5 Private Contractor User Agreements and CJIS Security Addendum .................15 5.1.1.6 Agency User Agreements ..................................................... .............................16 5.1.1.7 Security and Management Control Outsourcing Standard ... .............................16 5.1.2 Monitoring, Review, and Delivery of Services ........................... .............................17 5.1.2.1 Managing Changes to Service Providers .............................. .............................17 5.1.3 Secondary Dissemination ............................................................ .............................17 5.1.4 References / Citations / Directives .................................................. .............................17 5.2 Policy Area 2: Security Awareness Training ........................................ .............................18 5.2.1 Awareness Topics ....................................................................... .............................18 5.2.1.1 All Personnel ......................................................................... .............................18 5.2.1.2 Personnel with Physical and Logical Access ........................ .............................18 5.2.1.3 Personnel with Information Technology Roles .................... .............................19 5.2.2 Security Training Records ........................................................... .............................19 5.2.3 References / Citations / Directives .................................................. .............................20 5.3 Policy Area 3: Incident Response ......................................................... .............................21 5.3.1 Reporting Information Security Events ....................................... .............................21 5.3.1.1 Reporting Structure and Responsibilities .............................. .............................21 5.3.1.1.1 FBI CJIS Division Responsibilities ............................. ............................... 21 5.3.1.1.2 CSA ISO Responsibilities ............................................ ............................... 21 5.3.2 Management of Information Security Incidents .......................... .............................22 5.3.2.1 Incident Handling .................................................................. .............................22 5.3.2.2 Collection of Evidence .......................................................... .............................22 5.3.3 Incident Response Training ......................................................... .............................22 5.3.4 Incident Monitoring ..................................................................... .............................22 5.3.5 References/ Citations / Directives .................................................. .............................23 5.4 Policy Area 4: Auditing and Accountability ......................................... .............................24 5.4.1 Auditable Events and Content (Information Systems) ................ .............................24 5.4.1.1 Events .................................................................................... .............................24 5.4.1.1.1 Content ........................................................................... .............................24 5.4.2 Response to Audit Processing Failures ....................................... .............................25 5.4.3 Audit Monitoring, Analysis, and Reporting ................................ .............................25 5.4.4 Time Stamps ................................................................................ .............................25 5.4.5 Protection of Audit Information .................................................. .............................25 CJIS 011 CJISD- lTS -DOC- 08140 -5.0 ` J 5.4.6 Audit Record Retention ............................................................... .............................25 5.4.7 Logging NCIC and III Transactions ............................................ .............................25 5.4.8 Reserved for Future Use .............................................................. .............................26 5.4.9 Reserved for Future Use .............................................................. .............................26 5.4.10 References/ Citations / Directives .................................................. .............................26 5.5 Policy Area 5: Access Control .............................................................. .............................27 5.5.1 Account Management ................................................................. .............................27 5.5.2 Access Enforcement .................................................................... .............................27 5.5.2.1 Least Privilege ...................................................................... .............................27 5.5.2.2 System Access Control ......................................................... .............................28 5.5.2.3 Access Control Criteria ......................................................... .............................28 5.5.2.4 Access Control Mechanisms ................................................. .............................28 5.5.3 Unsuccessful Login Attempts ..................................................... .............................29 5.5.4 System Use Notification .............................................................. .............................29 5.5.5 Session Lock ............................................................................... .............................29 5.5.6 Remote Access ............................................................................ .............................30 5.5.6.1 Personally Owned Information Systems ............................... .............................30 5.5.6.2 Publicly Accessible Computers ............................................ .............................30 5.5.7 Wireless Access Restrictions ...................................................... .............................30 5.5.7.1 All 802.1Ix Wireless Protocols ............................................ .............................30 5.5.7.2 Legacy 802.11 Protocols ....................................................... .............................31 5.5.7.3 Cellular .................................................................................. .............................32 5.5.7.3.1 Cellular Risk Mitigations ............................................. ............................... 32 5.5.7.3.2 Voice Transmissions Over Cellular Devices ............... ............................... 33 5.5.7.4 Bluetooth ............................................................................... .............................33 5.5.8 References / Citations / Directives .................................................. .............................34 5.6 Policy Area 6: Identification and Authentication ................................. .............................36 5.6.1 Identification Policy and Procedures ........................................... .............................36 5.6.1.1 Use of Originating Agency Identifiers in Transactions and Information Exchanges..................................................................................... .............................36 5.6.2 Authentication Policy and Procedures ........................................ .............................36 5.6.2.1 Standard Authentication ( Password) ..................................... .............................37 5.6.2.2 Advanced Authentication ...................................................... .............................37 5.6.2.2.1 Advanced Authentication Policy and Rationale .......... ............................... 37 5.6.2.2.2 Advanced Authentication Decision Tree ..................... ............................... 38 5.6.3 Identifier and Authenticator Management .................................. .............................40 5.6.3.1 Identifier Management .......................................................... .............................40 5.6.3.2 Authenticator Management ................................................... .............................40 5.6.4 Assertions .................................................................................... .............................41 5.6.5 References / Citations / Directives .................................................. .............................41 5.7 Policy Area 7: Configuration Management .......................................... .............................44 5.7.1 Access Restrictions for Changes ................................................. .............................44 5.7.1.1 Least Functionality ................................................................ .............................44 5.7.1.2 Network Diagram .................................................................. .............................44 CJIS2/09/2011 iii1ra\ JISD- ITS -DOC- 08140 -5.0 1 ` ) 5.7.2 Security of Configuration Documentation .................................. .............................44 5.7.3 References / Citations / Directives .................................................. .............................44 5.8 Policy Area 8: Media Protection ........................................................... .............................46 5.8.1 Media Storage and Access .......................................................... .............................46 5.8.2 Media Transport .......................................................................... .............................46 5.8.2.1 Electronic Media in Transit .................................................. .............................46 5.8.2.2 Physical Media in Transit ..................................................... .............................46 5.8.3 Electronic Media Sanitization and Disposal ............................... .............................46 5.8.4 Disposal of Physical Media ......................................................... .............................46 5.8.5 References/ Citations / Directives .................................................. .............................47 5.9 Policy Area 9: Physical Protection ....................................................... .............................48 5.9.1 Physically Secure Location ......................................................... .............................48 5.9.1.1 Security Perimeter ................................................................. .............................48 5.9.1.2 Physical Access Authorizations ............................................ .............................48 5.9.1.3 Physical Access Control ....................................................... .............................48 5.9.1.4 Access Control for Transmission Medium ........................... .............................48 5.9.1.5 Access Control for Display Medium .................................... .............................48 5.9.1.6 Monitoring Physical Access ................................................. .............................49 5.9.1.7 Visitor Control ...................................................................... .............................49 5.9.1.8 Access Records ..................................................................... .............................49 5.9.1.9 Delivery and Removal .......................................................... .............................49 5.9.2 Controlled Area ........................................................................... .............................49 5.9.3 References / Citations / Directives .................................................. .............................50 5.10 Policy Area 10: System and Communications Protection and Information Integrity .......51 5.10.1 Information Flow Enforcement ................................................... .............................51 5.10.1.1 Boundary Protection ............................................................. .............................51 5.10.1.2 Encryption ............................................................................. .............................52 5.10.1.3 Intrusion Detection Tools and Techniques ........................... .............................52 5.10.1.4 Voice Over Internet Protocol ................................................ .............................52 5.10.2 Facsimile Transmission of CJI .................................................... .............................53 5.10.3 Partitioning and Virtualization .................................................... .............................53 5.10.3.1 Partitioning ............................................................................ .............................53 5.10.3.2 Virtualization ........................................................................ .............................53 5.10.4 System and Information Integrity Policy and Procedures ........... .............................54 5.10.4.1 Patch Management ................................................................ .............................54 5.10.4.2 Malicious Code Protection .................................................... .............................54 5.10.4.3 Spam and Spyware Protection .............................................. .............................54 5.10.4.4 Personal Firewall .................................................................. .............................55 5.10.4.5 Security Alerts and Advisories ............................................. .............................55 5.10.4.6 Information Input Restrictions .............................................. .............................55 5.10.5 References/ Citations / Directives .................................................. .............................56 5.11 Policy Area 11: Formal Audits ............................................................. .............................57 5.11.1 Audits by the FBI CJIS Division ................................................. .............................57 5.11.1.1 Triennial Compliance Audits by the FBI CJIS Division ...... .............................57 5.11.1.2 Triennial Security Audits by the FBI CJIS Division ............ .............................57 5.11.2 Audits by the CSA ....................................................................... .............................57 2/09/2011 iv ��� CJISD- ITS -DOC- 08140 -5.0 `` 5.11.3 Special Security Inquiries and Audits ......................................... .............................57 5.11.4 References / Citations / Directives .................................................. .............................57 5.12 Policy Area 12: Personnel Security ...................................................... .............................59 5.12.1 Personnel Security Policy and Procedures .................................. .............................59 5.12.1.1 Minimum Screening Requirements for Individuals Requiring Access to CJI:..59 5.12.1.2 Personnel Screening for Contractors and Vendors ............... .............................60 5.12.2 Personnel Termination ................................................................ .............................60 5.12.3 Personnel Transfer ....................................................................... .............................60 5.12.4 Personnel Sanctions ..................................................................... .............................60 5.12.5 References /Citations /Directives .................................................. .............................61 Appendix A Terms and Definitions .......................................................... ............................... A -1 AppendixB Acronyms ................................................................................. ............................B -1 Appendix C Network Topology Diagrams .................................................. ............................0 -1 Appendix D Sample Information Exchange Agreements ........................ ............................... D -1 Appendix E Security Forums and Organizational Entities ....................... ............................... E -1 Appendix F IT Security Incident Response Form .................................... ............................... F -1 AppendixG Virtualization ....................................................................... ............................... G -1 Appendix H Security Addendum ............................................................. ............................... H -1 AppendixI References ................................................................................. ............................I -1 Appendix J Noncriminal Justice Agency Supplemental Guidance .............. ............................J -1 Appendix K Criminal Justice Agency Supplemental Guidance ............... ............................... K -1 2/09/2011 v ���� CJISD- ITS- DOC- 08140 -5.0 Figure 1 - Overview Diagram of Strategic Functions and Policy Components ..............................4 Figure 2 - Information Exchange Agreements Implemented by a Local Police Department ........ 17 Figure 3 - Security Awareness Training Implemented by a Local Police Department .................20 Figure 4 - Incident Response Process Initiated by an Incident in a Local Police Department ......23 Figure 5 - Local Police Department's Use of Audit Logs ................................. .............................26 Figure 6 - A Local Police Department's Access Controls ................................ .............................35 Figure 7 - A Local Police Department's Authentication Controls ................... .............................41 Figure 8 - Authentication Decision for Known Location ................................. .............................42 Figure 9 - Authentication Decision for Unknown Location ............................. .............................43 Figure 10 - A Local Police Department's Configuration Management Controls ..........................45 Figure 11 - A Local Police Department's Media Management Policies .......... .............................47 Figure 12 - A Local Police Department's Physical Protection Measures ......... .............................50 Figure 13 - A Local Police Department's Information Systems & Communications Protections.56 Figure 14 - The Audit of a Local Police Department ....................................... .............................58 Figure 15 - A Local Police Department's Personnel Security Controls ............ .............................61 2/09/2011 vi C1ISD- ITS -DOC- 08140 -5.0 t 1 INTRODUCTION This section details the purpose of this document, its scope, relationship to other information security policies, and its distribution constraints. 1.1 Purpose The CJIS Security Policy provides Criminal Justice Agencies (CJA) and Noncriminal Justice Agencies (NCJA) with a minimum set of security requirements for the access to Federal Bureau of Investigation (FBI) Criminal Justice Information Services (CJIS) Division systems and information and to protect and safeguard Criminal Justice Information (CJI). This minimum standard of security requirements ensures continuity of information protection. The essential premise of the CJIS Security Policy is to provide the appropriate controls to protect CJI, from creation through dissemination; whether at rest or in transit. The CJIS Security Policy integrates Presidential directives, Federal laws, FBI directives, the criminal justice community's Advisory Policy Board (APB) decisions along with nationally recognized guidance from the National Institute of Standards and Technology (KIST) and the National Crime Prevention and Privacy Compact Council (Compact Council). 1.2 Scope At the consent of the advisory process, and taking into consideration Federal law and state statutes, the CJIS Security Policy applies to all entities with access to, or who operate in support of, FBI CJIS Division's services and information. The CJIS Security Policy provides minimum security requirements associated with the creation, viewing, modification, transmission, dissemination, storage, or destruction of CJI. Entities engaged in the interstate exchange of CJI data for noncriminal justice purposes are also governed by the standards and rules promulgated by the Compact Council. 1.3 Relationship to Local Security Policy and Other Policies The CJIS Security Policy may be used as the sole security policy for the agency. The local agency may complement the CJIS Security Policy with a local policy, or the agency may develop their own stand -alone security policy; however, the CJIS Security Policy shall always be the minimum standard and local policy may augment, or increase the standards, but shall not detract from the CJIS Security Policy standards. The agency shall develop, disseminate, and maintain formal, documented procedures to facilitate the implementation of the CJIS Security Policy and, where applicable, the local security policy. The policies and procedures shall be consistent with applicable laws, Executive Orders, directives, policies, regulations, standards, and guidance. Procedures developed for CJIS Security Policy areas can be developed for the security program in general, and for a particular information system, when required. This document is a compendium of applicable policies in providing guidance on the minimum security controls and requirements needed to access FBI CJIS information and services. These policies include Presidential directives, Federal laws, FBI directives and the criminal justice community's APB decisions. State, local, and Tribal CJA may implement more stringent 2/09/2011 I ]\ CJISD-ITS -DOC- 08140-5.0 11 � a policies and requirements. Appendix I contains the references while Appendix E lists the security forums and organizational entities referenced in this document. 1.4 Terminology Used in This Document The following terms are used interchangeably throughout this document: • Agency and Organization: The two terms in this document refer to any entity that submits or receives information, by any means, to /from FBI CJIS systems or services. Information and Data: Both terms refer to CJI. • System, Information System, Service, or named applications like NCIC: all refer to connections to the FBI's criminal justice information repositories and the equipment used to establish said connections. Appendix A and B provide an extensive list of the terms and acronyms. 1.5 Distribution of the CJIS Security Policy The CJIS Security Policy is a publically available document and may be posted and shared without restrictions. 2/09/2011 2 C1ISD- ITS -DOC- 08140 -5.0 `10 2 CJIS SECURITY POLICY APPROACH The CJIS Security Policy represents the shared responsibility between FBI CJIS, CJIS Systems Agency (CSA), and the State Identification Bureaus (SIB) of the lawful use and appropriate protection of CJI. The policy provides a baseline of security requirements for current and planned services and sets a minimum standard for new initiatives. 2.1 CJIS Security Policy Vision Statement The executive summary of this document describes the vision in terms of business needs for confidentiality, integrity, and availability of information. The APB collaborates with the FBI CJIS Division to ensure that the policy remains updated to meet ever - changing business, technology and security needs. 2.2 Architecture Independent Due to advancing technology and evolving business models, the FBI CJIS Division is transitioning from legacy stovepipe systems and moving toward a flexible services approach. Systems such as National Crime Information Center (NCIC), National Instant Criminal Background Check System (NICS), and Integrated Automated Fingerprint Identification System (IAFIS) will continue to evolve and may no longer retain their current system platforms, hardware, or program name. However, the data and services provided by these systems will remain stable. The CJIS Security Policy looks at the data (information), services, and protection controls that apply regardless of the implementation architecture. Architectural independence is not intended to lessen the importance of systems, but provide for the replacement of one technology with another while ensuring the controls required to protect the information remain constant. This objective and conceptual focus on security policy areas provide the guidance and standards while avoiding the impact of the constantly changing landscape of technical innovations. The architectural independence of the policy provides agencies with the flexibility for tuning their information security infrastructure and policies to reflect their own environments. 2.3 Risk Versus Realism Every "shall" statement contained within the CJIS Security Policy has been scrutinized for risk versus the reality of resource constraints and real -world application. The purpose of the CJIS Security Policy is to establish the minimum security requirements; therefore, individual agencies are encouraged to implement additional controls to address agency specific risks. 2/09/2011 3 CISD- ITS -DOC- 08140 -5.0 I1 (C� ` 3 ROLES AND RESPONSIBILITIES 3.1 Shared Management Philosophy In the scope of information security, the FBI CJIS Division employs a shared management philosophy with federal, state, local, and tribal law enforcement agencies. Although an advisory policy board for the NCIC has existed since 1969, the Director of the FBI established the CJIS APB in March 1994 to enable appropriate input and recommend policy with respect to CJIS services. Through the APB and its Subcommittees and Working Groups, consideration is given to the needs of the criminal justice and law enforcement community regarding public policy, statutory and privacy aspects, as well as national security relative to CJIS systems and information. The Advisory Process represents federal, state, local, and tribal law enforcement and criminal justice agencies throughout the United States, its territories, and Canada. The FBI has a similar relationship with the Compact Council, which governs the interstate exchange of criminal history records for noncriminal justice purposes. The Compact Council is mandated by federal law to promulgate rules and procedures for the use of the Interstate Identification Index (III) for noncriminal justice purposes. To meet that responsibility, the Compact Council depends on the CJIS Security Policy as the definitive source for standards defining the security and privacy of records exchanged with noncriminal justice practitioners. 3.2 Roles and Responsibilities for Agencies and Parties It is the responsibility of all agencies covered under this policy to ensure the protection of CJI between the FBI CJIS Division and its user community. The following figure provides an abstract representation of the strategic functions and roles such as governance and operations. Figure 1- Overview Diagram of Strategic Functions and Policy Components 2/09/2011 CJI SD- ITS -DOC- 08140 -5.0 This section provides a description of the following entities and roles: 1. CJIS Systems Agency. 2. CJIS Systems Officer. 3. Terminal Agency Coordinator. 4. Criminal Justice Agency. 5. Noncriminal Justice Agency. 6. Contracting Government Agency. 7. Agency Coordinator. 8. CJIS Systems Agency Information Security Officer. 9. Local Agency Security Officer. 10. FBI CJIS Division Information Security Officer. 11. Repository Manager. 12. Compact Officer. 3.2.1 CJIS Systems Agencies (CSA) The CSA is responsible for establishing and administering an information technology security program throughout the CSA's user community, to include the local levels. The head of each CSA shall appoint a CJIS Systems Officer (CSO). The CSA may impose more stringent protection measures than outlined in this document. Such decisions shall be documented and kept current. 3.2.2 CJIS Systems Officer (CSO) The CSO is an individual located within the CSA responsible for the administration of the CJIS network for the CSA. Pursuant to The Bylaws for the CJIS Advisory Policy Board and Working Groups, the role of CSO shall not be outsourced. The CSO may delegate responsibilities to subordinate agencies. The CSO shall set, maintain, and enforce the following: 1. Standards for the selection, supervision, and separation of personnel who have access to CJI. 2. Policy governing the operation of computers, access devices, circuits, hubs, routers, firewalls, and other components that comprise and support a telecommunications network and related CJIS systems used to process, store, or transmit CJI, guaranteeing the priority, confidentiality, integrity, and availability of service needed by the criminal justice community. a. Ensure appropriate use, enforce system discipline, and ensure CJIS Division operating procedures are followed by all users of the respective services and information. b. Ensure state /federal agency compliance with policies approved by the APB and adopted by the FBI. 2/09/2011 5 ( ` C11SD- ITS -DCC- 08140 -5.0 ,1`r c. Ensure the appointment of the CSA ISO and determine the extent of authority to the CSA ISO. d. The CSO, or designee, shall ensure that a Terminal Agency Coordinator (TAC) is designated within each agency that has devices accessing CJIS systems. e. Ensure each agency having access to CJI has someone designated as the Local Agency Security Officer. f Approve access to FBI CJIS systems. g. Assume ultimate responsibility for managing the security of CJIS systems within their state and/or agency. h. Perform other related duties outlined by the user agreements with the FBI CJIS Division. 3. Outsourcing of Criminal Justice Functions a. Responsibility for the management of the approved security requirements shall remain with the CIA. Security control includes the authority to enforce the standards for the selection, supervision, and separation of personnel who have access to CJI; set and enforce policy governing the operation of computers, circuits, and telecommunications terminals used to process, store, or transmit CJI; and to guarantee the priority service needed by the criminal justice community. b. Responsibility for the management control of network security shall remain with the CJA. Management control of network security includes the authority to enforce the standards for the selection, supervision, and separation of personnel who have access to CJI; set and enforce policy governing the operation of circuits and network equipment used to transmit CJIS data; and to guarantee the priority service as determined by the criminal justice community. 3.2.3 Terminal Agency Coordinator (TAC) The TAC serves as the point -of- contact at the local agency for matters relating to CJIS information access. The TAC administers CJIS systems programs within the local agency and oversees the agency's compliance with CJIS systems policies. 3.2.4 Criminal Justice Agency (CJA) A CIA is defined as a court, a governmental agency, or any subunit of a governmental agency which performs the administration of criminal justice pursuant to a statute or executive order and which allocates a substantial part of its annual budget to the administration of criminal justice. State and federal Inspectors General Offices are included. 3.2.5 Noncriminal Justice Agency (NCJA) A NCJA is defined (for the purposes of access to CJI) as an entity or any subunit thereof that provides services primarily for purposes other than the administration of criminal justice. 2/09/2011 6 \ C1ISD- ITS -DOC- 08140 -5.0 I 1 Ca/ 3.2.6 Contracting Government Agency (CGA) A CGA is a government agency, whether a CJA or a NCJA, that enters into an agreement with a private contractor subject to the CJIS Security Addendum. The CGA entering into an agreement with a contractor is to appoint an agency coordinator. 3.2.7 Agency Coordinator (AC) An AC is a staff member of the CGA who manages the agreement between the Contractor and agency. The AC shall be responsible for the supervision and integrity of the system, training and continuing education of employees and operators, scheduling of initial training and testing, and certification testing and all required reports by NCIC. The AC shall: 1. Understand the communications, records capabilities, and needs of the Contractor which is accessing federal and state records through or because of its relationship with the CGA. 2. Participate in related meetings and provide input and comments for system improvement. 3. Receive information from the CGA (e.g., system updates) and disseminate it to appropriate Contractor employees. 4. Maintain and update manuals applicable to the effectuation of the agreement, and provide them to the Contractor. 5. Maintain up -to -date records of Contractor's employees who access the system, including name, date of birth, social security number, date fingerprint card(s) submitted, date security clearance issued, and date initially trained, tested, certified or recertified (if applicable). 6. Train or ensure the training of Contractor personnel. If Contractor personnel access NCIC, schedule the operators for testing or a certification exam with the CSA staff, or AC staff with permission from the CSA staff. Schedule new operators for the certification exam within six (6) months of assignment. Schedule certified operators for biennial re- certification testing within thirty (30) days prior to the expiration of certification. Schedule operators for other mandated class. 7. The AC will not permit an untrained/untested or non - certified Contractor employee to access CH or systems supporting CJI where access to CJI can be gained. 8. Where appropriate, ensure compliance by the Contractor with NCIC validation requirements. 9. Provide completed applicant fingerprint cards on each Contractor employee who accesses the system to the CJA (or, where appropriate, CSA) for criminal background investigation prior to such employee accessing the system. 10. Any other responsibility for the AC promulgated by the FBI. 3.2.8 CJIS System Agency Information Security Officer (CSA ISO) The CSA ISO shall: 1. Serve as the security point of contact (POC) to the FBI CJIS Division ISO. 2/09/2011 C11SD- ITS -DOC- 08140 -5.0 �) 2. Document technical compliance with the CJIS Security Policy with the goal to assure the confidentiality, integrity, and availability of criminal justice information to the user community throughout the CSA's user community, to include the local level. 3. Document and provide assistance for implementing the security - related controls for the Interface Agency and its users. 4. Establish a security incident response and reporting procedure to discover, investigate, document, and report to the CSA, the affected criminal justice agency, and the FBI CJIS Division ISO major incidents that significantly endanger the security or integrity of CH. 3.2.9 Local Agency Security Officer (LASO) Each LASO shall: 1. Identify who is using the CSA approved hardware, software, and firmware and ensure no unauthorized individuals or processes have access to the same. 2. Identify and document how the equipment is connected to the state system. 3. Ensure that personnel security screening procedures are being followed as stated in this policy. 4. Ensure the approved and appropriate security measures are in place and working as expected. 5. Support policy compliance and ensure CSA ISO is promptly informed of security incidents. 3.2.10 FBI CJIS Division Information Security Officer (FBI CJIS ISO) The FBI CJIS ISO shall: 1. Maintain the CJIS Security Policy. 2. Disseminate the FBI Director approved CJIS Security Policy. 3. Serve as a liaison with the CSA's ISO and with other personnel across the CJIS community and in this regard provide technical guidance as to the intent and implementation of operational and technical policy issues. 4. Serve as a point -of- contact (POC) for computer incident notification and distribution of security alerts to the CSOs and ISOs. 5. Assist with developing audit compliance guidelines as well as identifying and reconciling security - related issues. 6. Develop and participate in information security training programs for the CSOs and ISOs, and provide a means by which to acquire feedback to measure the effectiveness and success of such training. 7. Maintain a current ISO homepage on the Law Enforcement Online (LEO) network and keep the CSOs and ISOs updated on pertinent information via the iso(&Ieo.gov email address. 2,09,2011 8 C11SD- ITS -DOC- 08140 -5.0 �1 3.2.11 Repository Manager The State Identification Bureau (SIB) Chief, i.e. Repository Manager, is the designated manager of the agency having oversight responsibility for a state's fingerprint identification services. If both state fingerprint identification services and CJIS systems control are managed within the same state agency, the SIB Chief and CSO maybe the same person. 3.2.12 Compact Officer Pursuant to the National Crime Prevention and Privacy Compact, each party state shall appoint a Compact Officer who shall ensure that Compact provisions and rules, procedures, and standards established by the Compact Council are complied with in their respective state. 2/09/2011 9 1 CJISD- ITS -DOC- 08140 -5.0 `I C t) 4 CRIMINAL JUSTICE AND PERSONALLY IDENTIFIABLE INFORMATION _ 4.1 Criminal Justice Information (CJI) Criminal Justice Information is the term used to refer to all of the FBI CJIS provided data necessary for law enforcement and civil agencies to perform their missions including, but not limited to biometric, identity history, biographic, property, and case /incident history data. The following categories of CJI describe the various data sets housed by the FBI CJIS architecture: 1. Biometric Data —data derived from one or more intrinsic physical or behavioral traits of humans typically for the purpose of uniquely identifying individuals from within a population. Used to identify individuals, to include: fingerprints, palm prints, iris scans, and facial recognition data. 2. Identity History Data — textual data that corresponds with an individual's biometric data, providing a history of criminal and/or civil events for the identified individual. 3. Biographic Data — information about individuals associated with a unique case, and not necessarily connected to identity data. Biographic data does not provide a history of an individual, only information related to a unique case. 4. Property Data — information about vehicles and property associated with crime. 5. Case /Incident History — information about the history of criminal incidents. The intent of the CJIS Security Policy is to ensure the protection of the aforementioned CJI until such time as the information is either released to the public via authorized dissemination (e.g. within a court system or when presented in crime reports data), or is purged or destroyed in accordance with applicable record retention rules. 4.1.1 Criminal History Record Information (CHRI) Criminal History Record Information (CHRI), sometimes informally referred to as "restricted data", is a subset of CJI. Due to its comparatively sensitive nature, additional controls are required for the access, use and dissemination of CHRI. In addition to the dissemination restrictions outlined below, Title 28, Part 20, Code of Federal Regulations (CFR), defines CHRI and provides the regulatory guidance for dissemination of CHRI. While the CJIS Security Policy attempts to be architecturally independent, the III and the NCIC are specifically identified in Title 28, Part 20, CFR, and the NCIC Operating Manual, as associated with CHRI. 4.2 Access, Use and Dissemination of Criminal History Record Information (CHRI) and NCIC Hot File Information This section describes the requirements for the access, use and dissemination of CHRI and NCIC hot file information. 4.2.1 Terminology Information obtained from the III is considered CHRI. Proper access to, and use and dissemination of, data from these files shall be consistent with the use and dissemination policies to 2/09/2011 0I S D-ITS- D OC- 08140 -5.0 concerning the III described in Title 28, Part 20, CFR, and the NCIC Operating Manual. The following files shall be protected as CHRI: 1. Gang File. 2. Known or Appropriately Suspected Terrorist File. 3. Convicted Persons on Supervised Release File. 4. Immigration Violator File (formerly the Deported Felon File). 5. National Sex Offender Registry File. 6. Historical Protection Order File of the NCIC. 7. Identity Theft File. The remaining NCIC files are considered "hot files." 4.2.2 Proper Access, Use, and Dissemination 4.2.2.1 Proper Use of CHRI The III shall be accessed only for an authorized purpose. Further, CHRI shall only be used for an authorized purpose consistent with the purpose for which III was accessed. Dissemination to another agency is authorized if (a) the other agency is an Authorized Recipient of such information and is being serviced by the accessing agency, or (b) the other agency is performing personnel and appointment functions for criminal justice employment applicants. 4.2.2.2 Proper Use of Hot File Information 4.2.2.2.1 Use for Official Purposes NCIC hot files may be accessed for any authorized purpose consistent with the inquiring agency's responsibility. Information obtained may be re- disseminated to (a) other government agencies or (b) private entities authorized by law to receive such information for any purpose consistent with their responsibilities. 4.2.2.2.2 Access and Dissemination for Other Authorized Purposes NCIC hot files may be accessed for other purposes consistent with the resources of the inquiring agency; however, requests for bulk data are discouraged. Information derived from national hot file records for other than law enforcement purposes can be used by authorized criminal justice personnel only to confirm the status of a person or article (i.e., wanted or stolen). An inquiring agency is authorized to charge a nominal administrative fee for such service. The commercial dissemination of hot file information is prohibited. 4.2.2.2.3 CSO Authority in Other Circumstances If no federal, state or local law or policy prohibition exists, the CSO may exercise discretion to approve or deny dissemination of hot file information. 2/09/2011 1I CJISD- ITS -DOC- 08140 -5.0 11C�) 4.2.3 Storage When CHRI is stored, agencies shall establish appropriate administrative, technical and physical safeguards to ensure the security and confidentiality of the information. These records shall be stored for extended periods only when they are key elements for the integrity and/or utility of case files and/or criminal record files. See section 5.9 for physical security controls. 4.2.4 Justification and Penalties 4.2.4.1 Justification In addition to the use of purpose codes and logging information, all users shall provide a reason for all III inquiries whenever requested by NCIC System Managers, CSAs, local agency administrators, or their representatives. 4.2.4.2 Penalties Improper access, use or dissemination of CHRI and Hot File information is serious and may result in administrative sanctions including, but not limited to, termination of services and state and federal criminal penalties. 4.3 Personally Identifiable Information (PII) For the purposes of this document, PII is information which can be used to distinguish or trace an individual's identity, such as name, social security number, or biometric records, alone or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, or mother's maiden name. Any FBI CJIS provided data maintained by an agency, including but not limited to, education, financial . transactions, medical history, and criminal or employment history may include PII. A criminal history record for example inherently contains PII as would an N -DEx case file. PII shall be extracted from CH for the purpose of official business only. Agencies shall develop policies, based on state and local privacy rules, to ensure appropriate controls are applied when handling PII extracted from CJI. Due to the expansive nature of PII, this policy does not specify auditing, logging, or personnel security requirements associated with the life cycle of PII. 12 2/09/2011 CJI S D- ITS -DOC- 08140 -5.0 IM) 5 POLICY AND IMPLEMENTATION The policy areas focus upon the data and services that the FBI CJIS Division exchanges and provides to the criminal justice community and its partners. Each policy area provides both strategic reasoning and tactical implementation requirements and standards. While the major theme of the policy areas is concerned with electronic exchange directly with the FBI, it is understood that further dissemination of CJI to Authorized Recipients by various means (hard copy, e-mail, web posting, etc.) constitutes a significant portion of CJI exchanges. Regardless of its form, use, or method of dissemination, CJI requires protection throughout its life. Not every consumer of FBI CJIS services will encounter all of the policy areas therefore the circumstances of applicability are based on individual agency /entity configurations and usage. Use cases within each of the policy areas will help users relate the policy to their own agency circumstances. The policy areas are: • Policy Area 1— Information Exchange Agreements • Policy Area 2— Security Awareness Training • Policy Area 3— Incident Response • Policy Area 4— Auditing and Accountability • Policy Area 5— Access Control • Policy Area 6— Identification and Authentication • Policy Area 7— Configuration Management • Policy Area 8 —Media Protection • Policy Area 9— Physical Protection • Policy Area 10— Systems and Communications Protection and Information Integrity • Policy Area 11— Formal Audits • Policy Area 12— Personnel Security 2/09/2011 13 CISD- ITS -DOC- 08140 -5.0 j ( Cd 5.1 Policy Area 1: Information Exchange Agreements The information shared through communication mediums shall be protected with appropriate security safeguards. The agreements established by entities sharing information across systems and communications mediums are vital to ensuring all parties fully understand and agree to a set of security standards. 5.1.1 Information Exchange Before exchanging CJI, agencies shall put formal agreements in place that specify security controls. The exchange of information may take several forms including electronic mail, instant messages, web services, facsimile, hard copy, and information systems sending, receiving and storing CJI. Information exchange agreements outline the roles, responsibilities, and data ownership between agencies and any external parties. Information exchange agreements for agencies sharing CJI data that is sent to and/or received from the FBI CJIS shall specify the security controls and conditions described in this document. Information exchange agreements shall be supported by documentation committing both parties to the terms of information exchange. As described in subsequent sections, different agreements and policies apply, depending on whether the parties involved are CJAs or NCJAs. See Appendix D for examples of Information Exchange Agreements. There may be instances, on an ad -hoc basis, where CJI is authorized for further dissemination to Authorized Recipients not covered by an information exchange agreement with the releasing agency. In these instances the dissemination of CJI is considered to be secondary dissemination. See Section 5.1.3 for secondary dissemination guidance. 5.1.1.1 Information Handling Procedures for handling and storage of information shall be established to protect that information from unauthorized disclosure, alteration or misuse. Using the requirements in this policy as a starting point, the procedures shall apply to the handling, processing, storing, and communication of CJI. These procedures apply to the exchange of CJI no matter the form of exchange. The policies for information handling and protection also apply to using CJI shared with or received from FBI CJIS for noncriminal justice purposes. In general, a noncriminal justice purpose includes the use of criminal history records for purposes authorized by federal or state law other than purposes relating to the administration of criminal justice, including — but not limited to - employment suitability, licensing determinations, immigration and naturalization matters, and national security clearances. 5.1.1.2 State and Federal Agency User Agreements Each CSA head or SIB Chief shall execute a signed written user agreement with the FBI CJIS Division stating their willingness to demonstrate conformity with this policy before accessing and participating in CJIS records information programs. This agreement shall include the standards and sanctions governing utilization of CJIS systems. As coordinated through the particular CSA or SIB Chief, each Interface Agency shall also allow the FBI to periodically test 14 0!1 CJIS I!J\ GISD- ITS -DOC- 08140 -5.0 `G / the ability to penetrate the FBI's network through the external network connection or system per authorization of Department of Justice (DOJ) Order 2640.2F. All user agreements with the FBI CJIS Division shall be coordinated with the CSA head. 5.1.1.3 Criminal Justice Agency User Agreements Any CJA receiving access to FBI CJIS data shall enter into a signed written agreement with the appropriate signatory authority of the CSA providing the access. The written agreement shall specify the FBI CJIS systems and services to which the agency will have access, and the FBI CJIS Division policies to which the agency must adhere. These agreements shall include: 1. Audit. 2. Dissemination. 3. Hit confirmation. 4. Logging. 5. Quality Assurance (QA). 6. Screening (Pre - Employment). 7. Security. 8. Timeliness. 9, Training. 10. Use of the system. 11. Validation. 5.1.1.4 Inter- Agency and Management Control Agreements A NCJA (government) designated to perform criminal justice functions for a CJA shall be eligible for access to the CJI. Access shall be permitted when such designation is authorized pursuant to Executive Order, statute, regulation, or inter- agency agreement. The NCJA shall sign and execute a management control agreement (MCA) with the CJA, which stipulates management control of the criminal justice function remains solely with the CJA. The MCA may be a separate document or included with the language of an inter - agency agreement. An example of an NCJA (government) is a city IT department. 5.1.1.5 Private Contractor User Agreements and CJIS Security Addendum The CJIS Security Addendum is a uniform addendum to an agreement between the government agency and a private contractor, approved by the Attorney General of the United States, which specifically authorizes access to criminal history record information, limits the use of the information to the purposes for which it is provided, ensures the security and confidentiality of the information is consistent with existing regulations and the CJIS Security Policy, provides for sanctions, and contains such other provisions as the Attorney General may require. Private contractors who perform criminal justice functions shall meet the same training and certification criteria required by governmental agencies performing a similar function, and shall be subject to the same extent of audit review as are local user agencies. All private contractors who perform criminal justice functions shall acknowledge, via signing of the CJIS Security 2/09/2011 15 C1ISD- ITS -DOC- 08140 -5.0 1 I (d Addendum Certification page, and abide by all aspects of the CJIS Security Addendum. The CJIS Security Addendum is presented in Appendix H. Modifications to the CJIS Security Addendum shall be enacted only by the FBI. 1. Private contractors designated to perform criminal justice functions for a CJA shall be eligible for access to CJI. Access shall be permitted pursuant to an agreement which specifically identifies the agency's purpose and scope of providing services for the administration of criminal justice. The agreement between the CJA and the private contractor shall incorporate the CJIS Security Addendum approved by the Director of the FBI, acting for the U.S. Attorney General, as referenced in Title 28 CFR 20.33 (a)(7). 2. Private contractors designated to perform criminal justice functions on behalf of a NCJA (government) shall be eligible for access to CJI. Access shall be permitted pursuant to an agreement which specifically identifies the agency's purpose and scope of providing services for the administration of criminal justice. The agreement between the NCJA and the private contractor shall incorporate the CJIS Security Addendum approved by the Director of the FBI, acting for the U.S. Attorney General, as referenced in Title 28 CFR 20.33 (a)(7). 5.1.1.6 Agency User Agreements A NCJA (public) designated to request civil fingerprint -based background checks, with the full consent of the individual to whom a background check is taking place, for noncriminal justice functions, shall be eligible for access to CJI. Access shall be permitted when such designation is authorized pursuant to federal law or state statute approved by the U.S. Attorney General. An NCJA (public) receiving access to FBI CJIS data shall enter into a signed written agreement with the appropriate signatory authority of the CSA/SIB providing the access. An example of a NCJA (public) is a county school board. A NCJA (private) designated to request civil fingerprint -based background checks, with the full consent of the individual to whom a background check is taking place, for noncriminal justice functions, shall be eligible for access to CJI. Access shall be permitted when such designation is authorized pursuant to federal law or state statute approved by the U.S. Attorney General. An NCJA (private) receiving access to FBI CJIS data shall enter into a signed written agreement with the appropriate signatory authority of the CSA/SIB providing the access. An example of a NCJA (private) is a local bank. All NCJAs accessing CJI shall be subject to all pertinent areas of the CJIS Security Policy (see Appendix J for supplemental guidance). Each NCJA that directly accesses FBI CJI shall also allow the FBI to periodically test the ability to penetrate the FBI's network through the external network connection or system per authorization of Department of Justice (DOJ) Order 2640.2F. 5.1.1.7 Security and Management Control outsourcing Standard Channelers designated to request civil fingerprint -based background checks or noncriminal justice ancillary functions on behalf of a NCJA (public) or NCJA (private) for noncriminal justice functions shall be eligible for access to CJI. Access shall be permitted when such designation is authorized pursuant to federal law or state statute approved by the U.S. Attorney General. All Channelers accessing CJI shall be subject to the terms and conditions described in 16 2/09/2011 UISD- ITS -DOC- 08140 -5.0 the Compact Council Security and Management Control Outsourcing Standard. Each Channeler that directly accesses CH shall also allow the FBI to conduct periodic penetration testing. Channelers leveraging CJI to perform civil functions on behalf of an Authorized Recipient shall meet the same training and certification criteria required by governmental agencies performing a similar function, and shall be subject to the same extent of audit review as are local user agencies. 5.1.2 Monitoring, Review, and Delivery of Services As specified in the inter - agency agreements, MCAs, and contractual agreements with private contractors, the services, reports and records provided by the service provider shall be regularly monitored and reviewed. The CIA shall maintain sufficient overall control and visibility into all security aspects to include, but not limited to, identification of vulnerabilities and information security incident reporting/response. The incident reporting/response process used by the service provider shall conform to the incident reporting/response specifications provided in this policy. 5.1.2.1 Managing Changes to Service Providers Any changes to services provided by a service provider shall be managed by the CJA. This includes provision of services, changes to existing services, and new services. Evaluation of the risks to the agency shall be undertaken based on the criticality of the data, system, and the impact of the change. 5.1.3 Secondary Dissemination If CHRI is released to another authorized agency, and that agency was not part of the releasing agency's primary information exchange agreement(s), the releasing agency shall log such dissemination. 5.1.4 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 2 - Information Exchange Agreements Implemented by a Local Police Department A local police department executed a Memorandum of Understanding (MOU) for the interface with their state CSA. The local police department also executed an MOU (which included an MCA) with the county information technology (IT) department for the day -to -day operations of their criminal- justice infrastructure. The county IT department, in turn, outsourced operations to a local vendor who signed the CJIS Security Addendum. 2/09/2011 CJI S D- ITS -DOC- 08140 -5.0 n ItCC)) 5.2 Policy Area 2: Security Awareness Training Basic security awareness training shall be required within six months of initial assignment, and biennially thereafter, for all personnel who have access to CJI. The CSO /SIB may accept the documentation of the completion of security awareness training from another agency. Accepting such documentation from another agency means that the accepting agency assumes the risk that the training may not meet a particular requirement or process required by federal, state, or local laws. 5.2.1 Awareness Topics A significant number of topics can be mentioned and briefly discussed in any awareness session or campaign. To help further the development and implementation of individual agency security awareness training programs the following baseline guidance is provided. 5.2.1.1 All Personnel At a minimum, the following topics shall be addressed as baseline security awareness training for all authorized personnel with access to CJI: 1. Rules that describe responsibilities and expected behavior with regard to CJI usage. 2. Implications of noncompliance. 3. Incident response (Points of contact; Individual actions). 4. Media protection. 5. Visitor control and physical access to spaces — discuss applicable physical security policy and procedures, e.g., challenge strangers, report unusual activity. 6. Protect information subject to confidentiality concerns — hardcopy through destruction. 7. Proper handling and marking of CJI. 8. Threats, vulnerabilities, and risks associated with handling of CJI. 9. Dissemination and destruction. 5.2.1.2 Personnel with Physical and Logical Access In addition to 5.2.1.1 above, the following topics, at a minimum, shall be addressed as baseline security awareness training for all authorized personnel with both physical and logical access to CJI: 1. Rules that describe responsibilities and expected behavior with regard to information system usage. 2. Password usage and management — including creation, frequency of changes, and protection. 3. Protection from viruses, worms, Trojan horses, and other malicious code. 4. Unknown e- mail /attachments. 5. Web usage — allowed versus prohibited; monitoring of user activity. 2/09/2011 CJ I S D-ITS -D OC- 08140 -5.0 is I (CC) 6. Spam. 7. Social engineering. 8. Physical Security— increases in risks to systems and data. 9. Media Protection. 10. Handheld device security issues — address both physical and wireless security issues. 11. Use of encryption and the transmission of sensitive /confidential information over the Internet — address agency policy, procedures, and technical contact for assistance. 12. Laptop security— address both physical and information security issues. 13. Personally owned equipment and software —state whether allowed or not (e.g., copyrights). 14. Access control issues — address least privilege and separation of duties. 15. Individual accountability — explain what this means in the agency. 16. Use of acknowledgement statements — passwords, access to systems and data, personal use and gain. 17. Desktop security--discuss use of screensavers, restricting visitors' view of information on screen (mitigating "shoulder surfing "), battery backup devices, allowed access to systems. 18. Protect information subject to confidentiality concerns —in systems, archived, on backup media, and until destroyed. 19. Threats, vulnerabilities, and risks associated with accessing CJIS Service systems and services. 5.2.1.3 Personnel with Information Technology Roles In addition to 5.2.1.1 and 5.2.1.2 above, the following topics at a minimum shall be addressed as baseline security awareness training for all Information Technology personnel (system administrators, security administrators, network administrators, etc.): 1. Protection from viruses, worms, Trojan horses, and other malicious code — scanning, updating definitions. 2. Data backup and storage — centralized or decentralized approach. 3. Timely application of system patches —part of configuration management. 4. Access control measures. 5. Network infrastructure protection measures. 5.2.2 Security Training Records Records of individual basic security awareness training and specific information system security training shall be documented, kept current, and maintained by the CSO /SIB /Compact Officer. Maintenance of training records can be delegated to the local level. 2/09/2011 19 CJISD- ITS -DOC- 08140 -5.0 I I(d 0 11 • 5.2.3 References/Citations/Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 3 - Security Awareness Training Implemented by a Local Police Department A local police department with a staff of 20 sworn law- enforcement officers and 15 support personnel worked with a vendor to develop role- specific security - awareness training, and required all staff to complete this training upon assignment and every two years thereafter. The local police department scheduled the sworn law- enforcement training to coincide with their NCIC certification training. The vendor maintained the training records for the police department's entire staff, and provided reporting to the department to help it ensure compliance with the CJ1S Security Policy. 2/09/2011 CJISD- ITS -DOC- 08140 -5.0 20 110) 5.3 Policy Area 3: Incident Response There has been an increase in the number of accidental or malicious computer attacks against both government and private agencies, regardless of whether the systems are high or low profile. Agencies shall: (i) establish an operational incident handling capability for agency information systems that includes adequate preparation, detection, analysis, containment, recovery, and user response activities; (ii) track, document, and report incidents to appropriate agency officials and/or authorities. ISOs have been identified as the POC on security- related issues for their respective agencies and shall ensure LASOs institute the CSA incident response reporting procedures at the local level. Appendix F contains a sample incident notification letter for use when communicating the details of an incident to the FBI CJIS ISO. 5.3.1 Reporting Information Security Events The agency shall promptly report incident information to appropriate authorities. Information security events and weaknesses associated with information systems shall be communicated in a manner allowing timely corrective action to be taken. Formal event reporting and escalation procedures shall be in place. Wherever feasible, the agency shall employ automated mechanisms to assist in the reporting of security incidents. All employees, contractors and third party users shall be made aware of the procedures for reporting the different types of event and weakness that might have an impact on the security of agency assets and are required to report any information security events and weaknesses as quickly as possible to the designated point of contact. 5.3.1.1 Reporting Structure and Responsibilities 5.3.1.1.1 FBI CJIS Division Responsibilities The FBI CJIS Division shall: 1. Manage and maintain the CJIS Division's Computer Security Incident Response Capability (CSIRC). 2. Serve as a central clearinghouse for all reported intrusion incidents, security alerts, bulletins, and other security - related material. 3. Ensure additional resources for all incidents affecting FBI CJIS Division controlled systems as needed. 4. Disseminate prompt advisories of system threats and operating system vulnerabilities to all CSOs and ISOs through the use of the isona,leo.eov e-mail account, to include but not limited to: Product Security Bulletins, Virus Bulletins, and Security Clips. 5. Track all reported incidents and/or trends. 6. Monitor the resolution of all incidents. 5.3.1.1.2 CSA ISO Responsibilities The CSA ISO shall: 2109/2011 21 CJ I S D- ITS -DOC- 08140 -5.0 �' (CO I . Assign individuals in each state, federal, and international law enforcement organization to be the primary point of contact for interfacing with the FBI CJIS Division concerning incident handling and response. 2. Identify individuals who are responsible for reporting incidents within their area of responsibility. 3. Collect incident information from those individuals for coordination and sharing among other organizations that may or may not be affected by the incident. 4. Develop, implement, and maintain internal incident response procedures and coordinate those procedures with other organizations that may or may not be affected. 5. Collect and disseminate all incident- related information received from the Department of Justice (DOJ), FBI CJIS Division, and other entities to the appropriate local law enforcement POCs within their area. 6. Act as a single POC for their jurisdictional area for requesting incident response assistance. 5.3.2 Management of Information Security Incidents A consistent and effective approach shall be applied to the management of information security incidents. Responsibilities and procedures shall be in place to handle information security events and weaknesses effectively once they have been reported. 5.3.2.1 Incident Handling The agency shall implement an incident handling capability for security incidents that includes preparation, detection and analysis, containment, eradication, and recovery. Wherever feasible, the agency shall employ automated mechanisms to support the incident handling process. Incident - related information can be obtained from a variety of sources including, but not limited to, audit monitoring, network monitoring, physical access monitoring, and user /administrator reports. The agency incorporates the lessons learned from ongoing incident handling activities into the incident response procedures and implements the procedures accordingly. 5.3.2.2 Collection of Evidence Where a follow -up action against a person or agency after an information security incident involves legal action (either civil or criminal), evidence shall be collected, retained, and presented to conform to the rules for evidence laid down in the relevant jurisdiction(s). 5.3.3 Incident Response Training The agency shall ensure general incident response roles responsibilities are included as part of required security awareness training. 5.3.4 Incident Monitoring The agency shall track and document information system security incidents on an ongoing basis. The CSA ISO shall maintain completed security incident reporting forms until the subsequent 22 2/09/2011 ` CJISD- ITS -DOC- 08140 -5.0 FBI triennial audit or until legal action (if warranted) is complete; whichever time -frame is greater. 5.3.5 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 4 - Incident Response Process Initiated by an Incident in a Local Police Department A state ISO received a notification from a local police department that suspicious network activity from a known botnet was detected on their network. The state ISO began the process of collecting all pertinent information about this incident, e.g. incident date /time, points -of- contact, systems affected, nature of the incident, actions taken, etc. and requested that the local police department confirm that their malware signatures were up to date. The state ISO contacted both the FBI CJIS ISO and state CSO to relay the preliminary details of this incident. The FBI CJIS ISO instructed the involved parties to continue their investigation and to submit an incident response form once all the information had been gathered. The FBI CJIS ISO contacted the lead for the FBI CSIRC to inform them that an incident response form was forthcoming. The state ISO gathered the remainder of the information from the local police department and submitted a completed incident response form to the FBI CJIS ISO who subsequently provided it to the FBI CSIRC. The FBI CSIRC notified the Department of Justice Computer Incident Response Team (DOJCIRT). The state ISO continued to monitor the situation, passing relevant details to the FBI CJIS ISO, ultimately determining that the botnet was eliminated from the local police department's infrastructure. Subsequent investigations determined that the botnet was restricted to the department's administrative infrastructure and thus no CJI was compromised. 2/09/2011 23r, C1ISD- ITS -DOC- 08140 -5.0 , (�.) 5.4 Policy Area 4: Auditing and Accountability Agencies shall implement audit and accountability controls to increase the probability of authorized users conforming to a prescribed pattern of behavior. Agencies shall carefully assess the inventory of components that compose their information systems to determine which security controls are applicable to the various components. Auditing controls are typically applied to the components of an information system that provide auditing capability (servers, etc.) and would not necessarily be applied to every user -level workstation within the agency. As technology advances, more powerful and diverse functionality can be found in such devices as personal digital assistants and cellular telephones, which may require the application of security controls in accordance with an agency assessment of risk. 5.4.1 Auditable Events and Content (information Systems) The agency's information system shall generate audit records for defined events. These defined events include identifying significant events which need to be audited as relevant to the security of the information system. The agency shall specify which information system components carry out auditing activities. Auditing activity can affect information system performance and this issue must be considered as a separate factor during the acquisition of information systems. The agency's information system shall produce, at the application and/or operating system level, audit records containing sufficient information to establish what events occurred, the sources of the events, and the outcomes of the events. The agency shall periodically review and update the list of agency - defined auditable events. In the event an agency does not use an automated system, manual recording of activities shall still take place. 5.4.1.1 Events The following events shall be logged: 1. Successful and unsuccessful system log -on attempts. 2. Successful and unsuccessful attempts to access, create, write, delete or change permission on a user account, file, directory or other system resource. 3. Successful and unsuccessful attempts to change account passwords. 4. Successful and unsuccessful actions by privileged accounts. 5. Successful and unsuccessful attempts for users to access, modify, or destroy the audit log file. 5.4.1.1.1 Content The following content shall be included with every audited event: 1. Date and time of the event. 2. The component of the information system (e.g., software component, hardware component) where the event occurred. 3. Type of event. 2/09/2011 24 CJISD - ITS -DOC- 08140 -5.0 I I CCO 4. User /subject identity. 5. Outcome (success or failure) of the event. 5.4.2 Response to Audit Processing Failures The agency's information system shall provide alerts to appropriate agency officials in the event of an audit processing failure. Audit processing failures include, for example: software/hardware errors, failures in the audit capturing mechanisms, and audit storage capacity being reached or exceeded. 5.4.3 Audit Monitoring, Analysis, and Reporting The responsible management official shall designate an individual or position to review /analyze information system audit records for indications of inappropriate or unusual activity, investigate suspicious activity or suspected violations, to report findings to appropriate officials, and to take necessary actions. Audit review /analysis shall be conducted at a minimum once a week. The frequency of review /analysis should be increased when the volume of an agency's processing indicates an elevated need for audit review. The agency shall increase the level of audit monitoring and analysis activity within the information system whenever there is an indication of increased risk to agency operations, agency assets, or individuals based on law enforcement information, intelligence information, or other credible sources of information. 5.4.4 Time Stamps The agency's information system shall provide time stamps for use in audit record generation. The time stamps shall include the date and time values generated by the internal system clocks in the audit records. The agency shall synchronize internal information system clocks on an annual basis. 5.4.5 Protection of Audit Information The agency's information system shall protect audit information and audit tools from modification, deletion and unauthorized access. 5.4.6 Audit Record Retention The agency shall retain audit records for at least 365 days. Once the minimum retention time period has passed, the agency shall continue to retain audit records until it is determined they are no longer needed for administrative, legal, audit, or other operational purposes. This includes, for example, retention and availability of audit records relative to Freedom of Information Act (FOIA) requests, subpoena, and law enforcement actions. 5.4.7 Logging NCIC and III Transactions A log shall be maintained for a minimum of one (1) year on all NCIC and III transactions. The III portion of the log shall clearly identify both the operator and the authorized receiving agency. III logs shall also clearly identify the requester and the secondary recipient. The identification on the log shall take the form of a unique identifier that shall remain unique to the individual requester and to the secondary recipient throughout the minimum one year retention period. 2/09/2011 25 CJISD- ITS- DOC-08140 -5.0 11 P 1 5.4.8 Reserved for Future Use 5.4.9 Reserved for Future Use 5.4.10 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 5 - Local Police Department's Use of Audit Logs A state CSO contacted a local police department regarding potentially inappropriate use of CHRI that was retrieved using the local department's ORI. The state CSO requested all relevant information from the police department to reconcile state NCIC and III logs against local police department logs. The police department provided the combination of their CJI processing application's logs with relevant operating system and network infrastructure logs to help verify the identity of the users conducting these queries. The review of these logs substantiated the CSO's suspicion. 2109/2011 26 CJISD- ITS -DOC- 08140 -5.0 I I (d) 5.5 Policy Area 5: Access Control Access control provides the planning and implementation of mechanisms to restrict reading, writing, processing and transmission of CJIS information and the modification of information systems, applications, services and communication configurations allowing access to CJIS information. 5.5.1 Account Management The agency shall manage information system accounts, including establishing, activating, modifying, reviewing, disabling, and removing accounts. The agency shall validate information system accounts at least annually and shall document the validation process. The validation and documentation of accounts can be delegated to local agencies. Account management includes the identification of account types (i.e., individual, group, and system), establishment of conditions for group membership, and assignment of associated authorizations. The agency shall identify authorized users of the information system and specify access rights /privileges. The agency shall grant access to the information system based on: 1. Valid need -to -know /need -to -share that is determined by assigned official duties. 2. Satisfaction of all personnel security criteria. The agency responsible for account creation shall be notified when: 1. A user's information system usage or need -to -know or need -to -share changes. 2. A user is terminated or transferred or associated accounts are removed, disabled, or otherwise secured. 5.5.2 Access Enforcement The information system shall enforce assigned authorizations for controlling access to the system and contained information. The information system controls shall restrict access to privileged functions (deployed in hardware, software, and firmware) and security- relevant information to explicitly authorized personnel. Explicitly authorized personnel include, for example, security administrators, system and network administrators, and other privileged users with access to system control, monitoring, or administration functions (e.g., system administrators, information system security officers, maintainers, system programmers). Access control policies (e.g., identity -based policies, role -based policies, rule -based policies) and associated access enforcement mechanisms (e.g., access control lists, access control matrices, cryptography) shall be employed by agencies to control access between users (or processes acting on behalf of users) and objects (e.g., devices, files, records, processes, programs, domains) in the information system. 5.5.2.1 Least Privilege The agency shall approve individual access privileges and shall enforce physical and logical access restrictions associated with changes to the information system; and generate, retain, and review records reflecting all such changes. The agency shall enforce the most restrictive set of 2/09/2011 27 CJISD- ITS -DOC- 08140 -5.0 1 t( d) rights /privileges or access needed by users for the performance of specified tasks. The agency shall implement least privilege based on specific duties, operations, or information systems as necessary to mitigate risk to CJI. This limits access to CJI to only authorized personnel with the need and the right to know. Logs of access privilege changes shall be maintained for a minimum of one year or at least equal to the agency's record retention policy — whichever is greater. 5.5.2.2 System Access Control Access control mechanisms to enable access to CJI shall be restricted by object (e.g., data set, volumes, files, records) including the ability to read, write, or delete the objects. Access controls shall be in place and operational for all IT systems to: 1. Prevent multiple concurrent active sessions for one user identification, for those applications accessing CJI, unless the agency grants authority based upon operational business needs. Agencies shall document the parameters of the operational business needs for multiple concurrent active sessions. 2. Ensure that only authorized personnel can add, change, or remove component devices, dial -up connections, and remove or alter programs. 5.5.2.3 Access Control Criteria Agencies shall control access to CJI based on one or more of the following: 1. Job assignment or function (i.e., the role) of the user seeking access. 2. Physical location. 3. Logical location. 4. Network addresses (e.g., users from sites within a given agency may be permitted greater access than those from outside). 5. Time -of -day and day -of- week/month restrictions. 5.5.2.4 Access Control Mechanisms When setting up access controls, agencies shall use one or more of the following mechanisms: 1. Access Control Lists (ACLs). ACLs are a register of users (including groups, machines, processes) who have been given permission to use a particular object (system resource) and the types of access they have been permitted. 2. Resource Restrictions. Access to specific functions is restricted by never allowing users to request information, functions, or other resources for which they do not have access. Three major types of resource restrictions are: menus, database views, and network devices. 3. Encryption. Encrypted information can only be decrypted, and therefore read, by those possessing the appropriate cryptographic key. While encryption can provide strong access control, it is accompanied by the need for strong key management. If encryption of stored information is employed as an access enforcement mechanism, the 28 2,/09/2011 CJI S D- ITS -DOC- 08140 -5.0 �, r� cryptography used is Federal Information Processing Standards (FIPS) 140 -2 (as amended) compliant (see section 5.10.1.2 for encryption requirements). 4. Application Level. In addition to controlling access at the information system level, access enforcement mechanisms are employed at the application level to provide increased information security for the agency. 5.5.3 Unsuccessful Login Attempts Where technically feasible, the system shall enforce a limit of no more than 5 consecutive invalid access attempts by a user (attempting to access CJI or systems with access to CJI). The system shall automatically lock the account /node for a 10 minute time period unless released by an administrator. 5.5.4 System Use Notification The information system shall display an approved system use notification message, before granting access, informing potential users of various usages and monitoring rules. The system use notification message shall, at a minimum, provide the following information: 1. The user is accessing a restricted information system. 2. System usage maybe monitored, recorded, and subject to audit. 3. Unauthorized use of the system is prohibited and maybe subject to criminal and/or civil penalties. 4. Use of the system indicates consent to monitoring and recording. The system use notification message shall provide appropriate privacy and security notices (based on associated privacy and security policies or summaries) and remain on the screen until the user acknowledges the notification and takes explicit actions to log on to the information system. Privacy and security policies shall be consistent with applicable laws, Executive Orders, directives, policies, regulations, standards, and guidance. System use notification messages can be implemented in the form of warning banners displayed when individuals log in to the information system. For publicly accessible systems: (i) the system use information is available and when appropriate, is displayed before granting access; (ii) any references to monitoring, recording, or auditing are in keeping with privacy accommodations for such systems that generally prohibit those activities; and (iii) the notice given to public users of the information system includes a description of the authorized uses of the system. 5.5.5 Session Lock The information system shall prevent further access to the system by initiating a session lock after a maximum of 30 minutes of inactivity, and the session lock remains in effect until the user reestablishes access using appropriate identification and authentication procedures. Users shall directly initiate session lock mechanisms to prevent inadvertent viewing when a device is unattended. A session lock is not a substitute for logging out of the information system. In the interest of officer safety, devices that are: (1) part of a police vehicle; or (2) used to perform dispatch functions and located within a physically secure location, are exempt from this requirement. Note: an example of a session lock is a screen saver with password. 2/09/2011 29 CJISD- ITS -DOC- 08140 -5.0 It V 5.5.6 Remote Access The agency shall authorize, monitor, and control all methods of remote access to the information system. Remote access is any temporary access to an agency's information system by a user (or an information system) communicating temporarily through an external, non - agency - controlled network (e.g., the Internet). The agency shall employ automated mechanisms to facilitate the monitoring and control of remote access methods. The agency shall control all remote accesses through managed access control points. The agency may permit remote access for privileged functions only for compelling operational needs but shall document the rationale for such access in the security plan for the information system. 5.5.6.1 Personally Owned Information Systems A personally owned information system shall not be authorized to access, process, store or transmit CJI unless the agency has established and documented the specific terms and conditions for personally owned information system usage. This control does not apply to the use of personally owned information systems to access agency's information systems and information that are intended for public access (e.g., an agency's public website that contains purely public information). 5.5.6.2 Publicly Accessible computers Utilizing publicly accessible computers to access, process, store or transmit CJI is prohibited. Publicly accessible computers include but are not limited to: hotel business center computers, convention center computers, public library computers, public kiosk computers, etc. 5.5.7 Wireless Access Restrictions The agency shall: (i) establish usage restrictions and implementation guidance for wireless technologies; and (ii) authorize, monitor, control wireless access to the information system. Wireless technologies, in the simplest sense, enable one or more devices to communicate without physical connections— without requiring network or peripheral cabling. Examples of wireless technologies include, but are not limited to: 802.11x, cellular networks, Bluetooth, satellite and microwave. Wireless technologies require at least the minimum security applied to wired technology and, based upon the specific technology, may require some additional security controls as described below. 5.5.7.1 All 802.11x Wireless Protocols Agencies shall: 1. Perform validation testing to ensure rogue APs (Access Points) do not exist in the 802.11 Wireless Local Area Network (WLAN) and to fully understand the wireless network security posture. 2. Maintain a complete inventory of all Access Points (APs) and 802.11 wireless devices. 30 2/09/2011 ) C11SD4TS -DOC- 08140 -5.0 14 C� 3. Place APs in secured areas to prevent unauthorized physical access and user manipulation. 4. Test AP range boundaries to determine the precise extent of the wireless coverage and design the AP wireless coverage to limit the coverage area to only what is needed for operational purposes. 5. Enable user authentication and encryption mechanisms for the management interface of the AP. 6. Ensure that all APs have strong administrative passwords and ensure that all passwords are changed in accordance with section 5.6.2.1. 7. Ensure the reset function on APs is used only when needed and is only invoked by authorized personnel. Restore the APs to the latest security settings, when the reset functions are used, to ensure the factory default settings are not utilized. 8. Change the default service set identifier (SSID) in the APs. Disable the broadcast SSID feature so that the client SSID must match that of the AP. Validate that the SSID character string does not contain any agency identifiable information (division, department, street, etc.) or services. 9. Enable all security features of the wireless product, including the cryptographic authentication, firewall, and other privacy features. 10. Ensure that encryption key sizes are at least 128 -bits and the default shared keys are replaced by unique keys. 11. Ensure that the ad hoc mode has been disabled unless the environment is such that the risk has been assessed and is tolerable. Note: some products do not allow disabling this feature; use with caution or use different vendor. 12. Disable all nonessential management protocols on the APs and disable hypertext transfer protocol (HTTP) when not needed or protect HTTP access with authentication and encryption. 13. Enable logging (if supported) and review the logs on a recurring basis per local policy. At a minimum logs shall be reviewed monthly. 14. Segregate, virtually (e.g. virtual local area network (VLAN) and ACLs) or physically (e.g. firewalls), the wireless network from the operational wired infrastructure. Limit access between wireless networks and the wired network to only operational needs. 15. When disposing of access points that will no longer be used by the agency, clear access point configuration to prevent disclosure of network configuration, keys, passwords, etc. 5.5.7.2 Legacy 802.11 Protocols Wired Equivalent Privacy (WEP) and Wi -Fi Protected Access (WPA) cryptographic algorithms, used by all pre- 802.11i protocols, do not meet the requirements for FIPS 140 -2 and are to be used only if additional security controls are employed. 2/09/2011 31 C1ISD4TS -DOC- 08140 -5.0 I I f J ) Agencies shall follow the guidelines below regarding wireless implementation and cases where the WEP and WPA security features are used to provide wireless security in conjunction with the CJIS required minimum encryption specifications. 1. Deploy media access control (MAC) access control lists (ACL); however, MAC ACLs do not represent a strong defense mechanism by themselves because they are transmitted in the clear from WLAN clients to APs so they can be captured easily. 2. Enable WEP/WPA. 3. Ensure the default shared keys are replaced by more secure unique keys. 4. Enable utilization of key - mapping keys rather than default keys so that sessions are unique when using WEP. 5.5.7.3 Cellular Cellular telephones, smartphones (i.e. Blackberry, iPhones, etc.), personal digital assistants (PDA), and "aircards" are examples of cellular handheld devices or devices that employ cellular technology. Additionally, cellular handheld devices typically include Bluetooth, infrared, and other wireless protocols capable of joining infrastructure networks or creating dynamic ad hoc networks. Cellular devices are at risk due to a multitude of threats and consequently pose a risk to the enterprise. Threats to cellular handheld devices stem mainly from their size, portability, and available wireless interfaces and associated services. Examples of threats to cellular handheld devices include: 1. Loss, theft, or disposal. 2. Unauthorized access. 3. Malware. 4. Spam. 5. Electronic eavesdropping. 6. Electronic tracking (threat to security of data and safety of law enforcement officer). 7. Cloning (not as prevalent with later generation cellular technologies). 8. Server- resident data. 5.5.7.3.1 Cellular Risk Mitigations Organizations shall, at a minimum, ensure that cellular devices: 1. Apply available critical patches and upgrades to the operating system. 2. Are configured for local device authentication. 3. Use advanced authentication. 4. Encrypt all CJI resident on the device. 5. Erase cached information when session is terminated. 6. Employ personal firewalls. 32 2/09/2011 �Q� CJ ISD- ITS -DOC- 08140 -5.0 7. Employ antivirus software. 5.5.7.3.2 Voice Transmissions Over Cellular Devices Any cellular device used to transmit CJI via voice is exempt from the encryption and authentication requirements when an officer determines there is an immediate need for the CJI to further an investigation or situations affecting the safety of an officer or the general public. 5.5.7.4 Bluetooth Bluetooth is an open standard for short-range radio frequency (RF) communication and is used primarily to establish wireless personal area networks (WPAN), commonly referred to as ad hoc networks or piconets. A piconet is composed of two or more Bluetooth devices in close physical proximity that operate on the same channel using the same frequency hopping sequence and can scale to include up to seven active slave devices and up to 255 inactive slave devices. Bluetooth voice and data transfer technology has been integrated into many types of business and consumer devices, including cellular phones, personal digital assistants (PDA), laptops, automobiles, printers, and headsets. Bluetooth does not provide end -to -end, audit, or non - repudiation security services. If such services are needed, they shall be provided through additional, higher -layer means in addition to the Bluetooth specification and 802.11 standards. The cryptographic algorithms employed by the Bluetooth standard are not FIPS approved. When communications require FIPS- approved cryptographic protection, this can be achieved by employing application -level FIPS - approved encryption over the native Bluetooth encryption. Agencies shall: 1. Provide users with a list of precautionary measures they should take to better protect handheld Bluetooth devices from theft. The organization and its employees should be responsible for its wireless technology components because theft of those components could lead to malicious activities against the organization's information system resource. 2. Maintain a complete inventory of all Bluetooth- enabled wireless devices and addresses (BD _ADDRs). A complete inventory of Bluetooth- enabled wireless devices can be referenced when conducting an audit that searches for unauthorized use of wireless technologies. 3. Change the default setting of the Bluetooth device to reflect the organization's security policy. Because default settings are generally not secure, a careful review of those settings should be performed to ensure that they comply with the organization's security policy. 4. Set Bluetooth devices to the lowest necessary and sufficient power level so that transmissions remain within the secure perimeter of the organization. Setting Bluetooth devices to the lowest necessary and sufficient power level ensures a secure range of access to authorized users. The use of Class 1 devices should be avoided due to their extended range (approximately 100 meters). 5. Choose personal identification number (PIN) codes that are sufficiently random and long. Avoid static and weak PINS, such as all zeroes. PIN codes should be random so that they cannot be easily reproduced by malicious users. Longer PIN codes are more resistant to 2/09/2011 33 C11SD- ITS -DOC- 08140 -5.0 1 k brute force attacks. For Bluetooth v2.0 (or earlier) devices, an eight- character alphanumeric PIN shall be used. 6. For v2.1 devices using Secure Simple Pairing, avoid using the "Just Works" model. The "Just Works" model does not provide protection against man-in -the- middle (MITM) attacks. Devices that only support Just Works should not be procured if similarly qualified devices that support one of the association models (i.e. Numeric Comparison, Out of Band, or Passkey Entry) are available. 7. Bluetooth devices should be configured by default as, and remain, undiscoverable except as needed for pairing. Bluetooth interfaces should be configured as non - discoverable, which prevents visibility to other Bluetooth devices except when discovery is specifically needed. Also, the default self - identifying or discoverable names provided on Bluetooth devices should be changed to anonymous unidentifiable names. 8. Invoke link encryption for all Bluetooth connections regardless of how needless encryption may seem (i.e. no Security Mode 1). Link encryption should be used to secure all data transmissions during a Bluetooth connection; otherwise, transmitted data is vulnerable to eavesdropping. 9. If multi -hop wireless communication is being utilized, ensure that encryption is enabled on every link in the communication chain. Every link should be secured because one unsecured link results in compromising the entire communication chain. 10. Ensure device mutual authentication is performed for all accesses. Mutual authentication is required to provide verification that all devices on the network are legitimate. 11. Enable encryption for all broadcast transmission (Encryption Mode 3). Broadcast transmissions secured by link encryption provide a layer of security that protects these transmissions from user interception for malicious purposes. 12. Configure encryption key sizes to the maximum allowable. Using maximum allowable key sizes provides protection from brute force attacks. 13. Establish a "minimum key size" for any negotiation process. Establishing minimum key sizes ensures that all keys are long enough to be resistant to brute force attacks. See Section 5.10.1.2 for minimum key encryption standards. 14. Use Security Mode 3 in order to provide link -level security prior to link establishment. 15. Users do not accept transmissions of any kind from unknown or suspicious devices. These types of transmissions include messages, files, and images. With the increase in the number of Bluetooth enabled devices, it is important that users only establish connections with other trusted devices and only accept content from these trusted devices. 5.5.8 References/Citations/Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. 34 2/09/2011 \ CJ I SD.ITS-DOC-08 140-5.0 Figure 6 - A Local Police Department's Access Controls A local police department purchased a new computer - assisted dispatch (CAD) system that integrated with their state CSA's CJI interfaces. In doing so, the police department employed least- privilege practices to ensure that its employees were only given those privileges needed to perform their jobs, and as such, excluding IT administrators, employees had only non - administrative privileges on all equipment they used. The police department also used ACLs in the operating systems to control access to the CAD client's executables. The CAD system used internal role -based access controls to ensure only those users that needed access to CJI were given it. The police department performed annual audits of user accounts on all systems under their control including remote access mechanisms, operating systems, and the CAD system to ensure all accounts were in valid states. The police department implemented authentication - failure account lockouts, system use notification via login banners, and screen - saver passwords on all equipment that processes CJI. 2/09/2011 35 \ CJISD- ITS -DOC- 08140 -5.0 1 `Cdl 5.6 Policy Area 6: Identification and Authentication The agency shall identify information system users and processes acting on behalf of users and authenticate the identities of those users or processes as a prerequisite to allowing access to agency information systems or services. 5.6.1 Identification Policy and Procedures Each person who is authorized to store, process, and/or transmit CJI shall be uniquely identified. A unique identification shall also be required for all persons who administer and maintain the system(s) that access CJI or networks leveraged for CJI transit. The unique identification can take the form of a full name, badge number, serial number, or other unique alphanumeric identifier. Agencies shall require users to identify themselves uniquely before the user is allowed to perform any actions on the system. Agencies shall ensure that all user IDs belong to currently authorized users. Identification data shall be kept current by adding new users and disabling and/or deleting former users. 5.6.1.1 Use of Originating Agency Identifiers in Transactions and Information Exchanges An FBI authorized originating agency identifier (ORI) shall be used in each transaction on CJIS systems in order to identify the sending agency and to ensure the proper level of access for each transaction. The original identifier between the requesting agency and the CSA/SIB /Channeler shall be the ORI, and other agency identifiers, such as user identification or personal identifier, an access device mnemonic, or the Internet Protocol (IP) address. Agencies may act as a servicing agency and perform transactions on behalf of authorized agencies requesting the service. Servicing agencies performing inquiry transactions on behalf of another agency may do so using the requesting agency's ORI. Servicing agencies may also use their own ORI to perform inquiry transactions on behalf of a requesting agency if the means and procedures are in place to provide an audit trail for the current specified retention period. Because the agency performing the transaction may not necessarily be the same as the agency requesting the transaction, the CSA/SIB /Channeler shall ensure that the ORI for each transaction can be traced, via audit trail, to the specific agency which is requesting the transaction. Audit trails can be used to identify the requesting agency if there is a reason to inquire into the details surrounding why an agency ran an inquiry on a subject. Agencies assigned a P (limited access) ORI shall not use the full access ORI of another agency to conduct an inquiry transaction. 5.6.2 Authentication Policy and Procedures Authentication refers to mechanisms or processes that verify users are valid once they are uniquely identified. The CSA/SIB may develop an authentication strategy which centralizes oversight but decentralizes the establishment and daily administration of the security measures for access to CJI. Each individual's identity shall be authenticated at either the local agency, CSA, SIB or Channeler level. The authentication strategy shall be part of the agency's audit for policy compliance. The FBI CJIS Division shall identify and authenticate all individuals who establish 36 2/09/2011 C1ISD- ITS -DOC- 08140 -5.0 1l ta� direct web -based interactive sessions with FBI CJIS Services. The FBI CJIS Division shall authenticate the ORI of all message -based sessions between the FBI CJIS Division and its customer agencies but will not further authenticate the user nor capture the unique identifier for the originating operator because this function is performed at the local agency, CSA, SIB or Channeler level. 5.6.2.1 Standard Authentication (Password) Agencies shall follow the secure password attributes, below, to authenticate an individual's unique ID. Passwords shall: 1. Be a minimum length of eight (8) characters on all systems. 2. Not be a dictionary word or proper name. 3. Not be the same as the Userid. 4. Expire within a maximum of 90 calendar days. 5. Not be identical to the previous ten (10) passwords. 6. Not be transmitted in the clear outside the secure location. 7. Not be displayed when entered. 5.6.2.2 Advanced Authentication Advanced Authentication (AA) provides for additional security to the typical user identification and authentication of login ID and password, such as: biometric systems, user -based public key infrastructure (PKI), smart cards, software tokens, hardware tokens, paper (inert) tokens, or "Risk -based Authentication" that includes a software token element comprised of a number of factors, such as network information, user information, positive device identification (i.e. device forensics, user pattern analysis and user binding), user profiling, and high -risk challenge /response questions. 5.6.2.2.1 Advanced Authentication Policy and Rationale The requirement to use or not use AA is dependent upon the physical, personnel and technical security controls associated with the user location. For example, AA shall not be required for users requesting access to CJI from within the perimeter of a physically secure location (Section 5.9), when the technical security controls have been met (Sections 5.5 and 5.10). Conversely, if the technical security controls have not been met AA shall be required even if the request for CJI originates from within a physically secure location. Section 5.6.2.2.2 provides agencies with a decision tree to help guide AA decisions. INTERIM COMPLIANCE: 1. For interim compliance, users accessing CJI from devices associated with, and located within, a police vehicle are exempt from the AA requirement until September 30th 2013 if the information system being used has not been procured or upgraded anytime after September 30th, 2005. For the purposes of this policy, a police vehicle is defined as an enclosed criminal justice conveyance with the capability to comply, during operational periods, with Section 5.9.1.3. 2/09/2011 37 C1ISD- ITS -DOC- 08140 -5.0 2. Internet Protocol Security (IPSec) does not meet the 2011 requirements for advanced authentication; however, agencies that have funded/implemented IPSec in order to meet the AA requirements of CJIS Security Policy v.4.5 may continue to utilize IPSec for AA until 2013. Examples: a. A police officer runs a query for CJI from his/her laptop mounted in a police vehicle. The police officer leverages a cellular network as the transmission medium; authenticates the device using IPSec key exchange; and tunnels across the cellular network using the IPSec virtual private network (VPN). IPSec was funded and installed in order to meet the AA requirements of CJIS Security Policy version 4.5. AA requirements are waived until 2013. b. A detective accesses CJI from various locations while investigating a crime scene. The detective uses an agency managed laptop with IPSec installed and leverages a cellular network as the transmission medium. IPSec was funded and installed in order to meet the AA requirements of CJIS Security Policy version 4.5. AA requirements are waived until 2013. EXCEPTION: AA shall be required when the requested service has built AA into its processes and requires a user to provide AA before granting access. EXAMPLES: a. A user, irrespective of his/her location, accesses the LEO website. The LEO has AA built into its services and requires AA prior to granting access. AA is required. b. A user, irrespective of their location, accesses a State's portal through which access to CJI is facilitated. The State Portal has AA built into its processes and requires AA prior to granting access. AA is required. 5.6.2.2.2 Advanced Authentication Decision Tree The following AA Decision Tree, coupled with figures 8 and 9 below, assist decision makers in determining whether or not AA is required. 1. Can request's originating location be determined physically? If either (a) or (b) below are true the answer to the above question is "yes ". Proceed to question 2. a. The IP address is attributed to a physical structure; or b. The mnemonic is attributed to a specific device assigned to a specific location that is a physical structure. If neither (a) or (b) above are true then the answer is "no ". Skip to question number 4. 2. Does request originate from within a physically secure location (that is not a police vehicle) as described in section 5.9.1? If either (a) or (b) below are true the answer to the above question is "yes ". Proceed to question 3. 38 CJIS 011 CJISD- ITS- DOC- 08140 -5.0 la a. The IP address is attributed to a physically secure location; or b. If a mnemonic is used it is attributed to a specific device assigned to a specific physically secure location. If neither (a) or (b) above are true then the answer is "no". Decision tree completed. AA required. 3. Are all required technical controls implemented at this location or at the controlling agency? If either (a) or (b) below are true the answer to the above question is "yes ". Decision tree completed. AA requirement waived. a. Appropriate technical controls listed in sections 5.5 and 5.10 are implemented; or b. The controlling agency (i.e. parent agency or agency leveraged as conduit to FBI CJIS data) extends its wide area network controls down to the requesting agency and the extended controls provide assurance equal or greater to the controls listed in sections 5.5 and 5.10. If neither (a) or (b) above are true then the answer is "no". Decision tree completed. AA required. 4. Does request originate from an agency- managed user device? If either (a) or (b) below are true the answer to the above question is "yes ". Proceed to question 5. a. The static IP address or MAC address can be traced to registered device; or b. Certificates are issued to agency managed devices only and certificate exchange is allowed only between authentication server and agency issued devices. If neither (a) or (b) above are true then the answer is "no". Decision tree completed. AA required. 5. Is the agency managed user device associated with a law enforcement conveyance? If any of the (a), (b), or (c) statements below is true the answer to the above question is "yes ". Proceed to question 6. a. The static IP address or MAC address is associated with a device associated with a law enforcement conveyance; or b. The certificate presented is associated with a device associated with a law enforcement conveyance; or c. The mnemonic presented is associated with a specific device assigned and that device is attributed to a law enforcement conveyance. If none of the (a), (b), or (c) statements above are true then the answer is "no". Skip to question number 7. 2,09/2011 39 1 A0) CJI SD- ITS -DOC- 08140 -5.0 6. Has there been an acquisition or upgrade since 2005? If any of the (a), (b), (c), or (d) statements below are true the answer to the above question is "yes ". Proceed to question number 7. a. The "green- screen" MDTs have been replaced with laptops or other mobile devices; or b. An upgrade of technology exceeding 25% of the cost of the system being upgraded has taken place; or c. Any upgrade to the system encryption module has taken place; or d. Any upgrade to the system that is not replacing like technology has taken place. If none of the (a), (b), (c), or (d) statements above are true then the answer is "no". Decision tree completed. AA requirement waived. 7. Was IPSec implemented to meet the requirements of Policy Version 4.5? If either (a) or (b) below are true the answer to the above question is "yes ". Decision tree completed. AA requirement is waived. a. The budget acquisition of IPSec was completed prior to January ls`, 2009 and IPSec was subsequently implemented; or b. Implementation of IPSec was completed prior to January 1", 2009. If neither (a) or (b) above are true then the answer is "no". Decision tree completed. AA required. 5.6.3 Identifier and Authenticator Management The agency shall establish identifier and authenticator management processes. 5.6.3.1 Identifier Management In order to manage user identifiers, agencies shall: 1. Uniquely identify each user. 2. Verify the identity of each user. 3. Receive authorization to issue a user identifier from an appropriate agency official. 4. Issue the user identifier to the intended party. 5. Disable the user identifier after a specified period of inactivity. 6. Archive user identifiers. 5.6.3.2 Authenticator Management In order to manage information system authenticators, agencies shall: 1. Define initial authenticator content. 40 2 /09/2011 C1ISD- ITS -DOC- 08140 -5.0 (tCa ) Establish administrative procedures for initial authenticator distribution, for lost/compromised, or damaged authenticators, and for revoking authenticators. 3. Change default authenticators upon information system installation. 4. Change /refresh authenticators periodically. Information system authenticators include, for example, tokens, user -based PKI certificates, biometrics, passwords, and key cards. Users shall take reasonable measures to safeguard authenticators including maintaining possession of their individual authenticators, not loaning or sharing authenticators with others, and immediately reporting lost or compromised authenticators. 5.6.4 Assertions Identity providers can be leveraged to identify individuals and assert the individual's identity to a service or to a trusted broker who will in -turn assert the identity to a service. Assertion mechanisms used to communicate the results of a remote authentication to other parties shall be: 1. Digitally signed by a trusted entity (e.g., the identity provider). 2. Obtained directly from a trusted entity (e.g. trusted broker) using a protocol where the trusted entity authenticates to the relying party using a secure protocol (e.g. transport layer security [TLS]) that cryptographically authenticates the verifier and protects the assertion. Assertions generated by a verifier shall expire after 12 hours and shall not be accepted thereafter by the relying party. 5.6.5 References /Citations /Directives Appendix C contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 7 - A Local Police Department's Authentication Controls During the course of an investigation, a detective accessed CH from a hotel room using an agency issued mobile broadband card. To gain access, the detective first established the remote session via a secure virtual private network (VPN) tunnel (satisfying the requirement for encryption), then was challenged to enter both password and the value from a hardware token (satisfying the requirement for advanced authentication). Once the detective's credentials were validated, his identity was asserted by the infrastructure to all authorized applications needed to complete his investigation. 2/09/2011 CJISD- ITS -DOC- 08140 -5.0 41\ 1Cc `\ ) • r -1 U 0 Figure 8 - Authentication Decision for Known Location Yes Yes, 2/09/2011 CJ I S D- ITS -DOC- 08140 -5.0 Wil _FLIT, �m-I�I`��jIII�I��I� 42 k`f c-1 E C] 0 Figure 9 - Authentication Decision for Unknown Location Incoming CJI cress Reque, Can requesfs p"cal See Figure 8 Orginalirg locaflun tie es No 94 Goes request >"nate frorn an agercv-managed 14 o or Unknown user device? 95 is he agency nanagod user device assodat 2 with a Law Enforcement Cbnvftarte? Yes No or Unknown Has there been an acqLusition or upgracle since 20054 Was I PSec implamented to r, of No meat the AA requirements Qf Pcf;cy version _—Yes Figure 9 0110112011 2/09/2011 43 CJISD-ITS-DOC-08140-5.0 5.7 Policy Area 7: Configuration Management 5.7.1 Access Restrictions for Changes Planned or unplanned changes to the hardware, software, and/or firmware components of the information system can have significant effects on the overall security of the system. The goal is to allow only qualified and authorized individuals access to information system components for purposes of initiating changes, including upgrades, and modifications. Section 5.5, Access Control, describes agency requirements for control of privileges and restrictions. 5.7.1.1 Least Functionality The agency shall configure the application, service, or information system to provide only essential capabilities and shall specifically prohibit and/or restrict the use of specified functions, ports, protocols, and/or services. 5.7.1.2 Network Diagram The agency shall ensure that a complete topological drawing depicting the interconnectivity of the agency network, to criminal justice information, systems and services is maintained in a current status. See Appendix C for sample network diagrams. The network topological drawing shall include the following: 1. All communications paths, circuits, and other components used for the interconnection, beginning with the agency -owned system(s) and traversing through all interconnected systems to the agency end - point. 2. The logical location of all components (e.g., firewalls, routers, switches, hubs, servers, encryption devices, and computer workstations). Individual workstations (clients) do not have to be shown; the number of clients is sufficient. 3. "For Official Use Only" (FOUO) markings. 4. The agency name and date (day, month, and year) drawing was created or updated. 5.7.2 Security of Configuration Documentation The system configuration documentation often contains sensitive details (e.g. descriptions of applications, processes, procedures, data structures, authorization processes, data flow, etc.) Agencies shall protect the system documentation from unauthorized access consistent with the provisions described in section 5.5 Access Control. 5.7.3 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. 44 2109/2011 CJISD- ITS -DOC- 08140 -5.0 Figure 10 - A Local Police Department's Configuration Management Controls A local police department decided to update their CAD system, and in doing so tracked all changes made to their infrastructure in a configuration management journal, updated their network topology documents to include all new components in their architecture, then marked all documentation as FOUO and stored them securely. 2/09/2011 45 ` CJISD- ITS -DOC- 08140 -5.0 ,lf�� 5.8 Policy Area 8: Media Protection Media protection policy and procedures shall be documented and implemented to ensure that access to electronic and physical media in all forms is restricted to authorized individuals. Procedures shall be defined for securely handling, transporting and storing media. 5.8.1 Media Storage and Access The agency shall securely store electronic and physical media within physically secure locations or controlled areas. The agency shall restrict access to electronic and physical media to authorized individuals. If physical and personnel restrictions are not feasible then the data shall be encrypted per section 5.10.1.2. 5.8.2 Media Transport The agency shall protect and control electronic and physical media during transport outside of controlled areas and restrict the activities associated with transport of such media to authorized personnel. 5.8.2.1 Electronic Media in Transit "Electronic media" means electronic storage media including memory devices in laptops and computers (hard drives) and any removable, transportable digital memory media, such as magnetic tape or disk, optical disk, flash drives, external hard drives, or digital memory card. Controls shall be in place to protect electronic media containing CJI while in transport (physically moved from one location to another) to help prevent compromise of the data. Encryption, as defined in section 5.10.1.2 of this policy, is the optimal control during transport; however, if encryption of the data isn't possible then each agency shall institute other controls to ensure the security of the data. 5.8.2.2 Physical Media in Transit The controls and security measures in this document also apply to CJI in physical (printed documents, printed imagery, etc.) form. Physical media shall be protected at the same level as the information would be protected in electronic form. 5.8.3 Electronic Media Sanitization and Disposal The agency shall sanitize, that is, overwrite at least three times or degauss electronic media prior to disposal or release for reuse by unauthorized individuals. Inoperable electronic media shall be destroyed (cut up, shredded, etc.). The agency shall maintain written documentation of the steps taken to sanitize or destroy electronic media. Agencies shall ensure the sanitization or destruction is witnessed or carried out by authorized personnel. 5.8.4 Disposal of Physical Media Physical media shall be securely disposed of when no longer required, using formal procedures. Formal procedures for the secure disposal or destruction of physical media shall minimize the risk of sensitive information compromise by unauthorized individuals. Physical media shall be 2/09/2011 46 CJISD - ITS -DOC- 08140 -5.0 I1( 1) destroyed by shredding or incineration. Agencies shall ensure the disposal or destruction is witnessed or carried out by authorized personnel. 5.8.5 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 11 - A Local Police Department's Media Management Policies A local police department implemented a replacement CAD system that integrated to their state's CSA and was authorized to process CJI. The police department contracted with an off -site media manager to store backups of their data in the contractor's vaults, but the contractor was not authorized to process or store CJI. To ensure the confidentially of the police department's data while outside its perimeter, they encrypted all data going to the contractor with Advanced Encryption Standard (AES) -256. The police department rotated and reused media through the contractor's vaults periodically, and when it required destruction, the police department incinerated the media to irreversibly destroy any data on it. CJIS 01I CJIS o(d) D- ITS- DOC -OS 140 -5.0 5.9 Policy Area 9: Physical Protection Physical protection policy and procedures shall be documented and implemented to ensure CJI and information system hardware, software, and media are physically protected through access control measures. 5.9.1 Physically Secure Location A physically secure location is a facility or an area, a room, or a group of rooms within a facility with both the physical and personnel security controls sufficient to protect CJI and associated information systems. The physically secure location is subject to criminal justice agency management control; SIB control; FBI CJIS Security addendum; or a combination thereof. Sections 5.9.1.1 — 5.9.1.9 describe the physical controls required in order to be considered a physically secure location, while section 5.12 describes the minimum personnel security controls required for unescorted access to a physically secure location. For interim compliance, and for the sole purpose of meeting the advanced authentication policy, a police vehicle shall be considered a physically secure location until September 3O`h 2013. For the purposes of this policy, a police vehicle is defined as an enclosed criminal justice conveyance with the capability to comply, during operational periods, with section 5.9.1.3. 5.9.1.1 Security Perimeter The perimeter of physically secure location shall be prominently posted and separated from non- secure locations by physical controls. Security perimeters shall be defined, controlled and secured in a manner acceptable to the CSA or SIB. 5.9.1.2 Physical Access Authorizations The agency shall develop and keep current a list of personnel with authorized access to the physically secure location (except for those areas within the permanent facility officially designated as publicly accessible) or shall issue credentials to authorized personnel. 5.9.1.3 Physical Access Control The agency shall control all physical access points (except for those areas within the facility officially designated as publicly accessible) and shall verify individual access authorizations before granting access. 5.9.1.4 Access Control for Transmission Medium The agency shall control physical access to information system distribution and transmission lines within the physically secure location. 5.9.1.5 Access Control for Display Medium The agency shall control physical access to information system devices that display CJI and shall position information system devices in such a way as to prevent unauthorized individuals from accessing and viewing CJI. 2/09/2011 CJ I SD- ITS -DOC- 08140 -5.0 48 1 lam) 5.9.1.6 Monitoring Physical Access The agency shall monitor physical access to the information system to detect and respond to physical security incidents. 5.9.1.7 Visitor Control The agency shall control physical access by authenticating visitors before authorizing escorted access to the physically secure location (except for those areas designated as publicly accessible). The agency shall escort visitors at all times and monitor visitor activity. 5.9.1.8 Access Records The agency shall maintain visitor access records to the physically secure location (except for those areas officially designated as publicly accessible) that includes: 1. Name and agency of the visitor. 2. Signature of the visitor. 3. Form of identification. 4. Date of access. 5. Time of entry and departure. 6. Purpose of visit. 7. Name and agency of person visited. The visitor access records shall be maintained for a minimum of one year. Designated officials within the agency shall review the visitor access records frequently for accuracy and completeness. 5.9.1.9 Delivery and Removal The agency shall authorize and control information system - related items entering and exiting the physically secure location. 5.9.2 Controlled Area If an agency cannot meet all of the controls required for establishing a physically secure location, but has an operational need to access or store CJI, the agency shall designate an area, a room, or a storage container, as a "controlled area" for the purpose of day -to -day CJI access or storage. The agency shall, at a minimum: 1. Limit access to the controlled area during CJI processing times to only those personnel authorized by the agency to access or view CJI. 2. Lock the area, room, or storage container when unattended. 3. Position information system devices and documents containing CJI in such a way as to prevent unauthorized individuals from access and view. 4. Follow the encryption requirements found in section 5.10.1.2 for electronic storage (i.e. data "at rest") of CJI. 2/09/2011 49 CJISD4TS -DOC- 08140 -5.0 ` 5.9.3 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure V - A Local Police Department's Physical Protection Measures A local police department implemented a replacement CAD system that was authorized to process CJI over an encrypted VPN tunnel to the state's CSA. The police department established a physically separated wing within their precinct separated by locked doors, walls, and a monitored security system within which CJI was processed by dispatchers, officers, and detectives. Only those persons with the appropriate authorizations were permitted within this wing unless accompanied by such a person. Within this secure wing the police department further segregated the back -office information systems' infrastructure within a separately controlled area restricted only to those authorized administrative personnel with a need to enter. so \> II CJISD - t VC 1ISD- ITS- DOC -OS 140 -s.0 1 5.10 Policy Area 10: System and Communications Protection and Information Integrity Examples of systems and communications safeguards range from boundary and transmission protection to securing an agency's virtualized environment. In addition, applications, services, or information systems must have the capability to ensure system integrity through the detection and protection against unauthorized changes to software and information. This section details the policy for protecting systems and communications infrastructures. 5.10.1 Information Flow Enforcement The network infrastructure shall control the flow of information between interconnected systems. Information flow control regulates where information is allowed to travel within an information system and between information systems (as opposed to who is allowed to access the information) and without explicit regard to subsequent accesses to that information. In other words, controlling how data moves from one place to the next in a secure manner. Examples of controls that are better expressed as flow control than access control (see section 5.5) are: 1. Prevent CJI from being transmitted unencrypted across the public network. 2. Block outside traffic that claims to be from within the agency. 3. Do not pass any web requests to the public network that are not from the internal web proxy. Specific examples of flow control enforcement can be found in boundary protection devices (e.g. proxies, gateways, guards, encrypted tunnels, firewalls, and routers) that employ rule sets or establish configuration settings that restrict information system services or provide a packet filtering capability. 5.10.1.1 Boundary Protection The agency shall: 1. Control access to networks processing CJI. 2. Monitor and control communications at the external boundary of the information system and at key internal boundaries within the system. 3. Ensure any connections to the Internet, other external networks, or information systems occur through controlled interfaces (e.g. proxies, gateways, routers, firewalls, encrypted tunnels). See Section 5.10.4.4 for guidance on personal firewalls. 4. Employ tools and techniques to monitor network events, detect attacks, and provide identification of unauthorized use. 5. Ensure the operational failure of the boundary protection mechanisms do not result in any unauthorized release of information outside of the information system boundary (i.e. the device shall "fail closed" vs. "fail open "). 6. Allocate publicly accessible information system components (e.g. public Web servers) to separate sub networks with separate, network interfaces. Publicly accessible information 2/09/2011 51 CJISD4TS -DOC- 08140 -5.0 p) systems residing on a virtual host shall follow the guidance in section 5.10.3.2 to achieve separation. 5.10.1.2 Encryption 1. Encryption shall be a minimum of 128 bit. 2. When CH is transmitted outside the boundary of the physically secure location, the data shall be immediately protected via cryptographic mechanisms (encryption). EXCEPTIONS: See sections 5.5.7.3.2 and 5.10.2. 3. When CJI is at rest (i.e. stored electronically) outside the boundary of the physically secure location, the data shall be protected via cryptographic mechanisms (encryption). 4. When encryption is employed, the cryptographic module used shall be certified to meet FIPS 140 -2 standards. Note 1: Subsequent versions of approved cryptographic modules that are under current review for FIPS 140 -2 compliancy can be used in the interim until certification is complete. Note 2: While FIPS 197 (Advanced Encryption Standard) certification is desirable, a FIPS 197 certification alone is insufficient as the certification is for the algorithm only vs. the FIPS 140 -2 standard which certifies the packaging of an implementation. 5. For agencies using public key infrastructure technology, the agency shall develop and implement a certificate policy and certification practice statement for the issuance of public key certificates used in the information system. Registration to receive a public key certificate shall: a) Include authorization by a supervisor or a responsible official. b) Be accomplished by a secure process that verifies the identity of the certificate holder. c) Ensure the certificate is issued to the intended party. 5.10.1.3 Intrusion Detection Tools and Techniques The agency shall implement network -based and/or host -based intrusion detection tools. The CSA/SIB shall, in addition: 1. Monitor inbound and outbound communications for unusual or unauthorized activities. 2. Send individual intrusion detection logs to a central logging facility where correlation and analysis will be accomplished as a system wide intrusion detection effort. 3. Employ automated tools to support near -real -time analysis of events in support of detecting system -level attacks. 5.10.1.4 Voice Over Internet Protocol Appropriate agency officials must explicitly authorize the use of Voice over Internet Protocol (VoIP). Agencies using the VoIP protocol shall: 2/0912011 52 CJISD- ITS- DOC-08140 -5.0 1 1. Establish usage restrictions and implementation guidance for VoIP technologies. 2. Document, monitor and control the use of VoIP within the agency. 5.10.2 Facsimile Transmission of CJI CJI transmitted via facsimile is exempt from encryption requirements. 5.10.3 Partitioning and Virtualization As resources grow scarce, agencies are increasing the centralization of applications, services, and system administration. Advanced software now provides the ability to create virtual machines that allows agencies to reduce the amount of hardware needed. Although the concepts of partitioning and virtualization have existed for a while, the need for securing the partitions and virtualized machines has evolved due to the increasing amount of distributed processing and federated information sources now available across the Internet. 5.10.3.1 Partitioning The application, service, or information system shall separate user functionality (including user interface services) from information system management functionality. The application, service, or information system shall physically or logically separate user interface services (e.g. public web pages) from information storage and management services (e.g. database management). Separation may be accomplished through the use of one or more of the following: 1. Different computers. 2. Different central processing units. 3. Different instances of the operating system. 4. Different network addresses. 5. Other methods approved by the FBI CJIS ISO. 5.10.3.2 Virtualization Virtualization refers to a methodology of dividing the resources of a computer (hardware and software) into multiple execution environments. Virtualized environments are authorized for criminal justice and noncriminal justice activities. In addition to the security controls described in this policy, the following additional controls shall be implemented in a virtual environment: 1. Isolate the host from the virtual machine. In other words, virtual machine users cannot access host files, firmware, etc. 2. Maintain audit logs for all virtual machines and hosts and store the logs outside the hosts' virtual environment. 3. Virtual Machines that are Internet facing (web servers, portal servers, etc.) shall be physically separate from Virtual Machines that process CJI internally. 4. Device drivers that are "critical" shall be contained within a separate guest. 2/09/2011 53 CJ I S D- I TS- DOC- 08140 -5.0 The following are additional technical security control best practices and should be implemented wherever feasible: I . Encrypt network traffic between the virtual machine and host. 2. Implement IDS and IPS monitoring within the virtual machine environment. 3. Virtually firewall each virtual machine from each other (or physically firewall each virtual machine from each other with an application layer firewall) and ensure that only allowed protocols will transact. 4. Segregate the administrative duties for the host. Appendix G provides some reference and additional background information on virtualization. 5.10.4 System and Information Integrity Policy and Procedures 5.10.4.1 Patch Management The agency shall identify applications, services, and information systems containing software or components affected by recently announced software flaws and potential vulnerabilities resulting from those flaws. The agency (or the software developer /vendor in the case of software developed and maintained by a vendor /contractor) shall develop and implement a local policy that ensures prompt installation of newly released security relevant patches, service packs and hot fixes. Local policies should include such items as: 1. Testing of appropriate patches before installation. 2. Rollback capabilities when installing patches, updates, etc. 3. Automatic updates without individual user intervention. 4. Centralized patch management. Patch requirements discovered during security assessments, continuous monitoring or incident response activities shall also be addressed expeditiously. 5.10.4.2 Malicious Code Protection The agency shall implement malicious code protection that includes automatic updates for all systems with Internet access. Agencies with systems not connected to the Internet shall implement local procedures to ensure malicious code protection is kept current (i.e. most recent update available). The agency shall employ virus protection mechanisms to detect and eradicate malicious code (e.g., viruses, worms, Trojan horses) at critical points throughout the network and on all workstations, servers and mobile computing devices on the network. The agency shall ensure malicious code protection is enabled on all of the aforementioned critical points and information systems and resident scanning is employed. 5.10.4.3 Spam and Spyware Protection The agency shall implement spam and spyware protection. 2/09/2011 54 CJISD - ITS -DOC- 08140 -5.0 1 d) The agency shall: 1. Employ spam protection mechanisms at critical information system entry points (e.g. firewalls, electronic mail servers, remote - access servers). 2. Employ spyware protection at workstations, servers and/or mobile computing devices on the network. 3. Use the spam and spyware protection mechanisms to detect and take appropriate action on unsolicited messages and spyware /adware, respectively, transported by electronic mail, electronic mail attachments, Intemet accesses, removable media (e.g. diskettes or compact disks) or other removable media as defined in this policy document. 5.10.4.4 Personal Firewall A personal firewall shall be employed on all devices that are mobile by design (i.e. laptops, handhelds, personal digital assistants, etc.). For the purpose of this policy, a personal firewall is an application that controls network traffic to and from a computer, permitting or denying communications based on policy. At a minimum, the personal firewall shall perform the following activities: 1. Manage program access to the Intemet. 2. Block unsolicited requests to connect to the PC. 3. Filter incoming traffic by IP address or protocol. 4. Filter incoming traffic by destination ports. 5. Maintain an IP traffic log. 5.10.4.5 Security Alerts and Advisories The agency shall: 1. Receive information system security alerts /advisories on a regular basis. 2. Issue alerts /advisories to appropriate personnel. 3. Document the types of actions to be taken in response to security alerts /advisories. 4. Take appropriate actions in response. 5. Employ automated mechanisms to make security alert and advisory information available throughout the agency as appropriate. 5.10.4.6 Information Input Restrictions The agency shall restrict the information input to any connection to FBI CJIS services to authorized personnel only. Restrictions on personnel authorized to input information to the information system may extend beyond the typical access controls employed by the system and include limitations based on specific operational /project responsibilities. 2/09/2011 55 CJISD- ITS -DOC- 08140 -5.0 \1 O) 5.10.5 References/Citations/Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 13 - A Local Police Department's Information Systems & Communications Protections A local police department implemented a replacement CAD system within a physically secure location that was authorized to process CJI using a FIPS 140 -2 encrypted VPN tunnel over the Internet to the state's CSA. In addition to the policies, physical and personnel controls already in place, the police department employed firewalls both at their border and at key points within their network, intrusion detection systems, a patch - management strategy that included automatic patch updates where possible, virus scanners, spam and spyware detection mechanisms that update signatures automatically, and subscribed to various security alert mailing lists and addressed vulnerabilities raised through the alerts as needed. 56 2/09/2011 CJISD - ITS -DOC- 08140 -5.0 5.11 Policy Area 11: Formal Audits Formal audits are conducted to ensure compliance with applicable statutes, regulations and policies. 5.11.1 Audits by the FBI CJIS Division 5.11.1.1 Triennial Compliance Audits by the FBI CJIS Division The FBI CJIS Division is authorized to conduct audits, once every three (3) years as a minimum, to assess agency compliance with applicable statutes, regulations and policies. The CJIS Audit Unit (CAU) shall conduct a triennial audit of each CSA in order to verify compliance with applicable statutes, regulations and policies. This audit shall include a sample of CJAs and, in coordination with the SIB, the NCJAs. Audits may be conducted on a more frequent basis if the audit reveals that an agency has not complied with applicable statutes, regulations and policies. The FBI CJIS Division shall also have the authority to conduct unannounced security inspections and scheduled audits of Contractor facilities. 5.11.1.2 Triennial Security Audits by the FBI CJIS Division The FBI CJIS Division is authorized to conduct security audits of the CSA and SIB networks and systems, once every three (3) years as a minimum, to assess agency compliance with the CJIS Security Policy. This audit shall include a sample of CJAs and NCJAs. Audits may be conducted on a more frequent basis if the audit reveals that an agency has not complied with the CJIS Security Policy. 5.11.2 Audits by the CSA Each CSA shall: 1. At a minimum, triennially audit all CJAs and NCJAs which have direct access to the state system in order to ensure compliance with applicable statutes, regulations and policies. 2. In coordination with the SIB, establish a process to periodically audit all NCJAs, with access to CJI, in order to ensure compliance with applicable statutes, regulations and policies. 3. Have the authority to conduct unannounced security inspections and scheduled audits of Contractor facilities. 5.11.3 Special Security Inquiries and Audits All agencies having access to CJI shall permit an inspection team to conduct an appropriate inquiry and audit of any alleged security violations. The inspection team shall be appointed by the APB and shall include at least one representative of the CJIS Division. All results of the inquiry and audit shall be reported to the APB with appropriate recommendations. 5.11.4 References /Citations /Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. 2109/2011 57 CISD- ITS -DOC- 08140 -5.0 j \P) Figure 14 - The Audit of a Local Police Department A local police department implemented a replacement CAD system that integrated to their state's CSA and was authorized to process CJI. Shortly after the implementation, their state's CSA The police ss CJI. conducted an audit of their policies, procedures, and systems that proce department supplied all architectural and policy documentation, including detailed network diagrams, to the auditors in order to assist them in the evaluation. The auditors discovered a deficiency in the police department's systems and marked them "out" in this aspect of the FBI CJIS Security Policy. The police department quickly addressed the deficiency and took corrective action, notifying the auditors of their actions. 58 2/09/2011 CJIS ]I SD- ITS -DOC- 08140 -5.0 5.12 Policy Area 12: Personnel Security Having proper security measures against the insider threat is a critical component for the CJIS Security Policy. This section's security terms and requirements apply to all personnel who have access to unencrypted CJI including those individuals with only physical or logical access to devices that store, process or transmit unencrypted CJI. 5.12.1 Personnel Security Policy and Procedures 5.12.1.1 Minimum Screening Requirements for Individuals Requiring Access to CJI: 1. To verify identification, a state of residency and national fingerprint -based record checks shall be conducted within 30 days of assignment for all personnel who have direct access to CJI and those who have direct responsibility to configure and maintain computer systems and networks with direct access to CJI. When appropriate, the screening shall be consistent with: (i) 5 CFR 731.106; (ii) Office of Personnel Management policy, regulations, and guidance; and (iii) agency policy, regulations, and guidance. (See Appendix J for applicable guidance regarding noncriminal justice agencies performing adjudication of civil fingerprint submissions.) Federal entities bypassing state repositories in compliance with federal law may not be required to conduct a state fingerprint -based record check. 2. All requests for access shall be made as specified by the CSO. The CSO, or their designee, is authorized to approve access to CJI. All CSO designees shall be from an authorized criminal justice agency. 3. If a felony conviction of any kind exists, the hiring authority in the Interface Agency shall deny access to CJI. However, the hiring authority may ask for a review by the CSO in extenuating circumstances where the severity of the offense and the time that has passed would support a possible variance. 4. If a record of any other kind exists, access to CJI shall not be granted until the CSO or his/her designee reviews the matter to determine if access is appropriate. 5. If the person appears to be a fugitive or has an arrest history without conviction, the CSO or his/her designee shall review the matter to determine if access to CJI is appropriate. 6. If the person is employed by a NCJA, the CSO or his/her designee, and, if applicable, the appropriate board maintaining management control, shall review the matter to determine if CJI access is appropriate. This same procedure applies if this person is found to be a fugitive or has an arrest history without conviction. 7. If the person already has access to CJI and is subsequently arrested and or convicted, continued access to CJI shall be determined by the CSO. This does not implicitly grant hiring/firing authority with the CSA, only the authority to grant access to CJI. 8. If the CSO or his/her designee determines that access to CJI by the person would not be in the public interest, access shall be denied and the person's appointing authority shall be notified in writing of the access denial. 2/09/2011 59 CJISD- ITS -DOC- 08140 -5.0 1 f 9. Support personnel, contractors, and custodial workers with access to physically secure locations or controlled areas (during CH processing) shall be subject to a state and national fingerprint -based record check unless these individuals are escorted by authorized personnel at all times. It is recommended individual background re- investigations be conducted every five years unless Rap Back is implemented. 5.12.1.2 Personnel Screening for Contractors and Vendors In addition to meeting the requirements in paragraph 5.12.1.1, contractors and vendors shall meet the following requirements: 1. Prior to granting access to CJI, the CGA on whose behalf the Contractor is retained shall verify identification via a state of residency and national fingerprint -based record check. 2. If a record of any kind is found, the CGA shall be formally notified and system access shall be delayed pending review of the criminal history record information. The CGA shall in turn notify the Contractor- appointed Security Officer. 3. When identification of the applicant with a criminal history has been established by fingerprint comparison, the CGA or the CJA (if the CGA does not have the authority to view CHRI) shall review the matter. 4. A Contractor employee found to have a criminal record consisting of felony conviction(s) shall be disqualified. 5. Applicants shall also be disqualified on the basis of confirmations that arrest warrants are outstanding for such applicants. 6. The CGA shall maintain a list of personnel who have been authorized access to CJI and shall, upon request, provide a current copy of the access list to the CSO. Applicants with a record of misdemeanor offense(s) may be granted access if the CSO determines the nature or severity of the misdemeanor offense(s) do not warrant disqualification. The CGA may request the CSO to review a denial of access determination. 5.12.2 Personnel Termination The agency, upon termination of individual employment, shall immediately terminate access to CJI. 5.12.3 Personnel Transfer The agency shall review CJI access authorizations when personnel are reassigned or transferred to other positions within the agency and initiate appropriate actions such as closing and establishing accounts and changing system access authorizations. 5.12.4 Personnel Sanctions The agency shall employ a formal sanctions process for personnel failing to comply with established information security policies and procedures. 2/09/2011 60 C1ISD- ITS -DOC- 08140 -5.0 5.12.5 References/Citations/Directives Appendix I contains all of the references used in this policy and may contain additional sources that apply to this section. Figure 15 - A Local Police Department's Personnel Security Controls A local police department implemented a replacement CAD system that integrated to their state's CSA and was authorized to process CJI. In addition to the physical and technical controls already in place, the police department implemented a variety of personnel security controls to reduce the insider threat. The police department used background screening consistent with the FBI CJIS Security Policy to vet those with unescorted access to areas in which CJI is processed, including the IT administrators employed by a contractor and all janitorial staff. The police department established sanctions against any vetted person found to be in violation of stated policies. The police department re- evaluated each person's suitability for access to CJI every five years. 2/09/2011 61 CJISD- ITS -DOC- 08140 -5.0 ' (!d) APPENDIX A TERMS AND DEFINITIONS Access to Criminal Justice Information — The physical or logical (electronic) ability, right or privilege to view, modify or make use of Criminal Justice Information. Administration of Criminal Justice — The detection, apprehension, detention, pretrial release, post -trial release, prosecution, adjudication, correctional supervision, or rehabilitation of accused persons or criminal offenders. It also includes criminal identification activities; the collection, storage, and dissemination of criminal history record information; and criminal justice employment. In addition, administration of criminal justice includes "crime prevention P rograms" to the extent access to criminal history record information is limited to law enforcement agencies for law enforcement programs (e .g. record checks of individuals who participate in Neighborhood Watch or "safe house" programs) and the result of such checks will not be disseminated outside the law enforcement agency. Agency Coordinator (AC) — A staff member of the Contracting Government Agency who manages the agreement between the Contractor and agency. Agency Liaison (AL) — Coordinator of activities between the criminal justice agency and the noncriminal justice agency when responsibility for a criminal justice system has been delegated by a criminal justice agency to a noncriminal justice agency, which has in turn entered into an agreement with a contractor. The agency liaison shall, inter alia, monitor compliance with system security requirements. In instances in which the noncriminal justice agency's authority is directly from the CJIS systems agency, there is no requirement for the appointment of an agency liaison. Authorized User /Personnel — An individual, or group of individuals, who have been appropriately vetted through a national fingerprint -based record check and have been granted access to CJI data. Authorized Recipient — (1) A criminal justice agency or federal agency authorized to receive CHRI pursuant to federal statute or executive order; (2) A nongovernmental entity authorized by federal statute or executive order to receive CHRI for noncriminal justice purposes; or (3) A government agency authorized by federal statute or executive order, or state statute which has been approved by the United States Attorney General to receive CHRI for noncriminal justice purposes. Availability — The degree to which information, a system, subsystem, or equipment is operable and in a useable state; frequently represented as a proportion of time the element is in a functioning condition. Biographic Data — Information collected about individuals associated with a unique case, and not necessarily connected to identity data. Biographic Data does not provide a history of an individual, only information related to a unique case. Biometric Data — When applied to CJI, it is used to identify individuals, and includes the following types: finger prints, palm prints, DNA, iris, and facial recognition. Case / Incident History — All relevant information gathered about an individual, organization, incident, or combination thereof, arranged so as to serve as an organized record to provide A -1 2/09/2011 OISD- ITS -DOC- 08140 -5.0 analytic value for a criminal justice organization. In regards to CJI, it is the information about the history of criminal incidents. Channeler — An FBI approved contractor, who has entered into an agreement with an Authorized Recipient(s), to receive noncriminal justice applicant fingerprint submissions and collect the associated fees. The Channeler ensures fingerprint submissions are properly and adequately completed, electronically forwards fingerprint submissions to the FBI's CJIS Division for national noncriminal justice criminal history record check, and receives electronic record check results for dissemination to Authorized Recipients. A Channeler is essentially an "expediter" rather than a user of criminal history record check results. CJIS Advisory Policy Board (APB) — The governing organization within the FBI CJIS Advisory Process composed of representatives from criminal justice and national security agencies within the United States. The APB reviews policy, technical, and operational issues relative to CJIS Division programs and makes subsequent recommendations to the Director of the FBI. CJIS Audit Unit (CAU) — The organization within the FBI CJIS Division responsible to perform audits of CSAs to verify compliance with the CJIS Security Policy. CJIS Security Policy — The FBI CJIS Security Policy document as published by the FBI CJIS ISO; the document containing this glossary. CJIS Systems Agency (CSA) — A duly authorized state, federal, international, tribal, or territorial criminal justice agency on the CJIS network providing statewide (or equivalent) service to its criminal justice users with respect to the CJIS data from various systems managed by the FBI CJIS Division. There shall be only one CSA per state or territory. In federal agencies, the CSA may be the interface or switch to other federal agencies connecting to the FBI CJIS systems. CJIS Systems Agency Information Security Officer (CSA ISO) — The appointed FBI CJIS Division personnel responsible to coordinate information security efforts at all CJIS interface agencies. CJIS Systems Officer (CSO) — An individual located within the CJIS Systems Agency responsible for the administration of the CJIS network on behalf for the CJIS Systems Agency. Compact Council — The entity created by the National Crime Prevention and Privacy Compact of 1998 that has the authority to promulgate rules and procedures governing the use of the III system for noncriminal justice purposes. Compact Officers — The leadership of the Compact Council, oversees the infrastructure established by the National Crime Prevention and Privacy Compact Act of 1998, which is used by ratifying states to exchange criminal records for noncriminal justice purposes. Their primary responsibilities are to promulgate rules and procedures for the effective and appropriate use of the III system. Computer Security Incident Response Capability (CSIRC) — A collection of personnel, systems, and processes that are used to efficiently and quickly manage a centralized response to any sort of computer security incident which may occur. Confidentiality — The concept of ensuring that information is observable only to those who have been granted authorization to do so. 2/09/2011 A-2 CJIS D- ITS -DOC- 08140 -5.0 Contractor — A private business, agency or individual which has entered into an agreement for the administration of criminal justice or noncriminal justice functions with a Criminal Justice Agency or a Noncriminal Justice Agency. Also, a private business approved by the FBI CJIS Division to contract with Noncriminal Justice Agencies to perform noncriminal justice functions associated with civil fingerprint submission for hiring purposes. Contracting Government Agency (CGA) — The government agency, whether a Criminal Justice Agency or a Noncriminal Justice Agency, which enters into an agreement with a private contractor. Crime Reports Data — The data collected through the Uniform Crime Reporting program and reported upon annually by the FBI CJIS division used to analyze the crime statistics for the United States. Criminal History Record Information (CHRI) — A subset of CJI. Any notations or other written or electronic evidence of an arrest, detention, complaint, indictment, information or other formal criminal charge relating to an identifiable person that includes identifying information regarding the individual as well as the disposition of any charges. Criminal Justice Agency (CJA) — The courts, a governmental agency, or any subunit of a governmental agency which performs the administration of criminal justice pursuant to a statute or executive order and which allocates a substantial part of its annual budget to the administration of criminal justice. State and federal Inspectors General Offices are included. Criminal Justice Agency User Agreement — A terms -of- service agreement that must be signed prior to accessing CJI. This agreement is required by each CJA and spells out user's responsibilities, the forms and methods of acceptable use, penalties for their violation, disclaimers, and so on. Criminal Justice Conveyance — A criminal justice conveyance is any mobile vehicle used for the purposes of criminal justice activities with the capability to comply, during operational periods, with the requirements of section 5.9.1.3. Criminal Justice Information (CJI) — Criminal Justice Information is the abstract term used to refer to all of the FBI CJIS provided data necessary for law enforcement agencies to perform their mission and enforce the laws, including but not limited to: biometric, identity history, person, organization, property, and case /incident history data. In addition, CJI refers to the FBI CJIS - provided data necessary for civil agencies to perform their mission; including, but not limited to data used to make hiring decisions. Criminal Justice Information Services Division (FBI CJIS or CJIS) — The FBI division responsible for the collection, warehousing, and timely dissemination of relevant CJI to the FBI and to qualified law enforcement, criminal justice, civilian , academic, employment, and licensing agencies. Data — See Information and CJI. Degauss — Neutralize a magnetic field to erase information from a magnetic disk or other storage device. In the field of information technology, degauss has become synonymous with erasing information whether or not the medium is magnetic. In the event the device to be degaussed is not magnetic (e.g. solid state drive, USB storage device), steps other than magnetic degaussing may be required to render the information irretrievable from the device. A -3 2/09/2011 r CJ IS 13- ITS- DOC-08140-5.0 t l� Department of Justice (DoJ) — The Department within the U.S. Government responsible to enforce the law and defend the interests of the United States according to the law, to ensure public safety against threats foreign and domestic, to provide federal leadership in preventing and controlling crime, to seek just punishment for those guilty of unlawful behavior, and to ensure fair and impartial administration of justice for all Americans. Direct Access — (1) Having the authority to access systems managed by the FBI CJIS Division, whether by manual or automated methods, not requiring the assistance of, or intervention by, any other party or agency (28 CFR, Chapter 1, Part 20). (2) Having the authority to query or update national databases maintained by the FBI CJIS Division including national queries and updates automatically or manually generated by the CSA. Dissemination — The transmission/distribution of CH to Authorized Recipients within an agency. Federal Bureau of Investigation (FBI) — The agency within the DOJ responsible to protect and defend the United States against terrorist and foreign intelligence threats, to uphold and enforce the criminal laws of the United States, and to provide leadership and criminal justice services to federal, state, municipal, and international agencies and partners. FBI CJIS Information Security Officer (FBI CJIS ISO) — The FBI personnel responsible for the maintenance and dissemination of the FBI CJIS Security Policy; the liaison between the FBI and the CSA's ISOs and other relevant security points -of- contact (POCs); the provider of technical guidance as to the intent and implementation of technical policy issues; the POC for computer incident notification which also disseminates security alerts to the CSOs and ISOs. Federal Information Security Management Act (FISMA) — The Federal Information Security Management Act of 2002, a US Federal law that established information security standards for the protection of economic and national security interests of the United States. It requires each federal agency to develop, document, and implement an agency -wide program to provide information security for the information and information systems that support the operations and assets of the agency, including those provided or managed by another agency, contractor, or other source. For Official Use Only (FOLIO) — A caveat applied to unclassified sensitive information that may be exempt from mandatory release to the public under the Freedom of Information Act (FOIA), 5 U.S.0 522. In general, information marked FOUO shall not be disclosed to anybody except Government (Federal, State, tribal, or local) employees or contractors with a need to know. Guest Operating System — An operating system that has emulated hardware presented to it by a host operating system. Also referred to as the virtualized operating system. Host Operating System — In the context of virtualization, the operating system that interfaces with the actual hardware and arbitrates between it and the guest operating systems. It is also referred to as a hypervisor. Hypervisor — See Host Operating System. Identity History Data — Textual data that corresponds with an individual's biometric data, providing a history of criminal and/or civil events for the identified individual. Information — See data and CJI. 2/09/2011 A -4 CJISD- ITS -DOC- 08140 -5.0 Information Exchange Agreement — An agreement that codifies the rules by which two parties engage in the sharing of information. These agreements typically include language which establishes some general duty -of -care over the other party's information, whether and how it can be further disseminated, penalties for violations, the laws governing the agreement (which establishes venue), procedures for the handling of shared information at the termination of the agreement, and so on. This document will ensure consistency with applicable federal laws, directives, policies, regulations, standards and guidance. Information Security Officer (ISO) — Typically a member of an organization who has the responsibility to establish and maintain information security policy, assesses threats and vulnerabilities, performs risk and control assessments, oversees the governance of security operations, and establishes information security training and awareness programs. The ISO also usually interfaces with security operations to manage implementation details and with auditors to verify compliance to established policies. Information System — A system of people, data, and processes, whether manual or automated, established for the purpose of managing information. Integrated Automated Fingerprint Identification System (IAFIS) — The national fingerprint and criminal history system maintained by the FBI CJIS Division that provides the law enforcement community with automated fingerprint search capabilities, latent searching capability, electronic image storage, and electronic exchange of fingerprints and responses. Integrity — The perceived consistency of expected outcomes, actions, values, and methods of an individual or organization. As it relates to data, it is the concept that data is preserved in a consistent and correct state for its intended use. Interconnection Security Agreement (ISA) — An agreement much like an Information Exchange Agreement as mentioned above, but concentrating more on formalizing the technical and security requirements pertaining to some sort of interface between the parties' information systems. Interface Agency — A legacy term used to describe agencies with direct connections to the CSA. This term is now used predominantly in a common way to describe any sub - agency of a CSA or SIB that leverages the CSA or SIB as a conduit to FBI CJIS information. Interstate Identification Index (I11) — The CJIS service that manages automated submission and requests for CHRI that is warehoused subsequent to the submission of fingerprint information. Subsequent requests are directed to the originating State as needed. Law Enforcement Online (LEO) — A secure, Intemet -based communications portal provided by the FBI CJIS Division for use by law enforcement, first responders, criminal justice professionals, and anti - terrorism and intelligence agencies around the globe. Its primary purpose is to provide a platform on which various law enforcement agencies can collaborate on FOUO matters. Local Agency Security Officer (LASO) — The primary Information Security contact between a local law enforcement agency and the CSA under which this agency interfaces with the FBI CJIS Division. The LASO actively represents their agency in all matters pertaining to Information Security, disseminates Information Security alerts and other material to their constituents, maintains Information Security documentation (including system configuration A -5 2/09/2011 CnSD- ITS -DOC- 08140 -5.0 data), assists with Information Security audits of hardware and procedures, and keeps the CSA informed as to any Information Security needs and problems. Management Control Agreement (MCA) — An agreement between parties that wish to share or pool resources that codifies precisely who has administrative control over, versus overall management and legal responsibility for, assets covered under the agreement. An MCA must ensure the CJA's authority remains with regard to all aspects of section 3.2.2. The MCA usually results in the CJA having ultimate authority over the CJI supporting infrastructure administered by the NCJA. National Crime Information Center (NCIC) — An information system which stores CJI which can be queried by appropriate Federal, state, and local law enforcement and other criminal J ustice agencies. National Instant Criminal Background Check System (NICS) — A system mandated by the Brady Handgun Violence Prevention Act of 1993 that is used by Federal Firearms Licensees (FFLs) to instantly determine via telephone or other electronic means whether the transfer of a firearm would be in violation of Section 922 (g) or (n) of Title 18, United States Code, or state law, by evaluating the prospective buyer's criminal history. National Institute of Standards and Technology (KIST) — Founded in 1901, NIST is a non- regulatory federal agency within the U.S. Department of Commerce whose mission is to promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic and national security. Noncriminal Justice Agency (NCJA) — A governmental agency, or any subunit thereof, that provides services primarily for purposes other than the administration of criminal justice. Examples of services include, but not limited to, employment suitability, licensing determinations, immigration and naturalization matters, and national security clearances. NCJA (Government) — A Federal, state, local, or tribal governmental agency or any subunit thereof whose charter does not include the responsibility to administer criminal justice, but may have a need to process CJI. An example would be the central IT organization within a state government that administers equipment on behalf of a state law- enforcement agency. NCJA (Private) — A private agency or subunit thereof whose charter does not include the responsibility to administer criminal justice, but may have a need to process CJI. An example would include a local bank. NCJA (Public) — A public agency or sub -unit thereof whose charter does not include the responsibility to administer criminal justice, but may have a need to process CJI. An example would include a county school board which uses CHRI to assist in employee hiring decisions. Noncriminal Justice Purpose — The uses of criminal history records for purposes authorized by federal or state law other than purposes relating to the administration of criminal justice, including employment suitability, licensing determinations, immigration and naturalization matters, and national security clearances. Office of Management and Budget (OMB) — The agency within the Executive Branch of the Federal government responsible to oversee the preparation of the federal budget, to assist in the supervision of other Executive Branch agencies, and to oversee and coordinate the Presidential Administration's procurement, financial management, information, and regulatory policies. 2/09/2011 A -6 C1ISD- ITS -DOC- 08140 -5.0 it r _I Outsourcing — The process of delegating in -house operations to a third -party. For instance, when the administration of criminal justice functions (network operations, dispatch functions, system administration operations, etc.) are performed for the criminal justice agency by a city or county information technology department or are contracted to be performed by a vendor. Outsourcing Standard — National Crime Prevention and Privacy Compact Council's Outsourcing Standard. The Compact Council's uniform standards and processes for the interstate and Federal -State exchange of criminal history records for noncriminal justice purposes. Physically Secure Location — A facility or an area, a room, or a group of rooms, within a facility with both the physical and personnel security controls sufficient to protect CH and associated information systems. For interim compliance, a police vehicle shall be considered a physically secure location until September 30th, 2013. For the purposes of this policy, a police vehicle is defined as an enclosed criminal justice conveyance with the capability to comply, during operational periods, with section 5.9.1.3. Personal Firewall — An application which controls network traffic to and from a computer, permitting or denying communications based on a security policy. Personally Identifiable Information (PII) — PII is information which can be used to distinguish or trace an individual's identity, such as name, social security number, or biometric records, alone or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, or mother's maiden name. Property Data — Information about vehicles and property associated with a crime. Rap Back — An IAFIS service that allows authorized agencies to receive notification of subsequent criminal activity reported to the FBI committed by persons of interest. Repository Manager — The designated manager of the agency having oversight responsibility for a CSA's fingerprint identification services. If both state fingerprint identification services and CJIS systems control are managed within the same state agency, the repository manager and CSO may be the same person. Secondary Dissemination — The promulgation of CJI from a releasing agency to an authorized recipient agency when the recipient agency has not been previously identified in a formal information exchange agreement. Security Addendum (SA) — A uniform addendum to an agreement between the government agency and a private contractor, approved by the Attorney General of the United States, which specifically authorizes access to criminal history record information, limits the use of the information to the purposes for which it is provided, ensures the security and confidentiality of the information consistent with existing regulations and the CJIS Security Policy, provides for sanctions, and contains such other provisions as the Attorney General may require. Sensitive But Unclassified (SBU) — Designation of information in the United States federal government that, though unclassified, often requires strict controls over its distribution. SBU is a broad category of information that includes material covered by such designations as For Official Use Only (FOUO), Law Enforcement Sensitive (LES), Sensitive Homeland Security Information, Security Sensitive Information (SSI), Critical Infrastructure Information (CII), etc. Some categories of SBU information have authority in statute or regulation (e.g. SSI, CII) while 2/09/2011 A -7 CJISD- ITS -DOC- 08140 -5.0 ( it )) others, including FOUO, do not. As of May 9, 2008, the more appropriate terminology to use is Controlled Unclassified Information (CUI). Service — The organized system of apparatus, appliances, personnel, etc, that supply some tangible benefit to the consumers of this service. In the context of CJI, this usually refers to one of the applications that can be used to process CJI. Shredder — A device used for shredding documents, often as a security measure to prevent unapproved persons from reading them. Strip -cut shredders, also known as straight -cut or spaghetti -cut, slice the paper into long, thin strips but are not considered secure. Cross -cut shredders provide more security by cutting paper vertically and horizontally into confetti -like pieces. Social Engineering — The act of manipulation people into performing actions or divulging confidential information. While similar to a confidence trick or simple fraud, the term typically applies to trickery or deception for the purpose of information gathering, fraud, or computer system access; in most cases the attacker never comes face -to -face with the victim. Software Patch — A piece of software designed to fix problems with, or update, a computer program or its supporting data. This includes fixing security vulnerabilities and other bugs and improving the usability or performance. Though meant to fix problems, poorly designed patches can sometimes introduce new problems. As such, patches should be installed in a test environment prior to being installed in a live, operational system. Patches often can be found in multiple locations but should be retrieved only from sources agreed upon through organizational policy. State and Federal Agency User Agreement — A written agreement that each CSA or SIB Chief shall execute with the FBI CJIS Division stating their willingness to demonstrate conformance with the FBI CJIS Security Policy prior to the establishment of connectivity between organizations. This agreement includes the standards and sanctions governing use of CJIS systems, as well as verbiage to allow the FBI to periodically audit the CSA as well as to allow the FBI to penetration test its own network from the CSA's interfaces to it. State Compact Officer — The representative of a state that is party to the National Crime Prevention and Privacy Compact, and is the chief administrator of the state's criminal history record repository or a designee of the chief administrator who is a regular full -time employee of the repository. State Identification Bureau (SIB) — The state agency with the responsibility for the state's fingerprint identification services. State Identification Bureau (SIB) Chief — The SIB Chief is the designated manager of state's SIB. If both state fingerprint identification services and CJIS systems control are managed within the same state agency, the SIB Chief and CSO may be the same person. System — Refer to connections to the FBI's criminal justice information repositories and the equipment used to establish said connections. In the context of CJI, this usually refers to applications and all interconnecting infrastructure required to use those applications that process CJI. 2/09/2011 A-8 CJISD- ITS -DOC- 08140 -5.0 11 /Ct ) Terminal Agency Coordinator (TAC) — Serves as the point -of- contact at the local agency for matters relating to CJIS information access. A TAC administers CJIS systems programs within the local agency and oversees the agency's compliance with CJIS systems policies. Virtualization — Refers to a methodology of dividing the resources of a computer (hardware and software) into multiple execution environments, by applying one or more concepts or technologies such as hardware and software partitioning, time - sharing, partial or complete machine simulation or emulation allowing multiple operating systems, or images, to run concurrently on the same hardware. 2/09/2011 A -9 C11SD- ITS -DCC- 08140 -5.0 1 1Cd, LJ APPENDIX B ACRONYMS 2/09/2011 B-1 CJISD-ITS-DOC-08140-5.0 I I cp`) AA AC ACL AES ............. 11 ................ . . . ........... ......... . ..... ................................ . .. . . . ........... AP Advanced Authentication ... .... ....... ................ ... . ........ Agency Coordinator .... . .. . ......... 11 ... . ............. . . . . .... . .. . . .......... . . . .... . ........... . . ..... Access Control List Advanced Encryption Standard .............. - -- I .. . . . ............ . . . .............................. . . .. . . .............. . ... . . . . ..... ... . . ..... .. . . . .................................. . .. . ................ .................... .............. . Access Point APB .. . .. . . ... . .. . ................................ . .. . . . ............ -.- . . . ........... Advisory Policy Board ...... ... . .. . . ........ . . . .......... . . . .... . ....... . .......... . . . . . BD-ADDR --.1 .......... . . ....... ...................... . . . . . . . ....................... . . . ....... . . ......... . .. . ....... ........................ . .. . .. . ...... . .... . . . . . . ................ . ....... . .... .. . .............. . ..... Bluetooth-Enabled Wireless Devices and Addresses -.- ... ..... . ... . ..... ...1--.1 CAD ............... . . . . ............................. .. . .. . .............. ............... - . ..... - ......... ............ . . . ...... . - -------- Computer-Assisted Dispatch .. .. . .......... . .. . . ......... . ........... . . . ... . ....................... . . . ....... . ............. ...... CAU I . ........... .. . .... .............. . . . ............ . ... . .. . ..... CJIS Audit Unit •....... . ..... . . .......................... . ......... . ............ . . . ... . .............. ---- ....... . ..... . . . ........ ..... .......... .. .............. . .. . ................. . ........ . . ..... . .. . . .... CFR .................................................................... .. . . .. .......... ..................... Code of Federal Regulations ............. - ----- ............ I .............. -- .. . ........................... -- . . .. . ........ -- ... . . . . ............................... CGA ......... . . ... . ...... . ........... . ............ .......... . . .... ........ . . . .. . ..... ...... Contracting Government Agency ...... . ...... ------ --- CHRI Criminal History Record Information CJA Criminal Justice Agency . . ................. ... ................ . .................... . .. . . .......................... .. . . . ............. Cil . . ................... . .... .. .. ... ---- . ..... . ............. . . . ..... ........... I .... .... . ............. . I ....... . ............. . ... . . .... .............. . ... ............ .................. ..... . .................... .......... . .. . ..... . ........... ............... ... .. . ................ Criminal Justice Information .......... . . CJIS ... . ..... . ........ . .. . - . . .... . . . .............. I - Criminal Justice Information Services Con0ps .. ........... .... . .................... . . ........... Concept of Operations CSA ................... I .............. ...................... . . ..... . ..... . . . . .............. ........... CJIS Systems Agency I ......... . .... -.- ....................... ---- . ............. . .. . ...... . . . ............. . ................... ......................................... . ................ CSIRC ......... . . . .... . .................. Computer Security Incident Response Capability .. . .. .. .... .... ....... ... . -- "..- . . ....... -.- CSO .................. . ... . ........ . ................ . ...... . .. . ................. . . . . . .... . ... CJIS Systems Officer . .......... . .......... . . . . . . . . . .................... DAA . . . ........ . ........ Designated Approving Authority DoJ ...... ........... .. .- ......................................... .......... Department of Justice ........... I I -- ...... . ....................... I..., I.".'"' .... . .... . . . .. . ...... . ................. DoJCERT I . ......... . . .......... ............. . .. . . . . ............ ....................................... . ..... DOJ Computer Emergency Response Team 2/09/2011 B-1 CJISD-ITS-DOC-08140-5.0 I I cp`) FBI Federal Bureau of Investigation FIPS Federal Information Processing Standards FISMA Federal Information Security Management Act FOIA Freedom of Information Act FOUO For Official Use Only HTTP Hypertext Transfer Protocol IAFIS Integrated Automated Fingerprint Identification System IDS Intrusion Detection System III Interstate Identification Index IP Internet Protocol IPS Intrusion Prevention System IPSEC Internet Protocol Security ISA Interconnection Security Agreement ISO Information Security Officer IT Information Technology LASO Local Agency Security Officer LEO Law Enforcement Online MAC Media Access Control MCA Management Control Agreement MITM Man-in- the - Middle MOU Memorandum of Understanding NCIC National Crime Information Center NCJA Noncriminal Justice Agency NICS National Instant Criminal Background Check System NIST National Institute of Standards and Technology 2/09/2011 B-z C1ISD. ITS -DOC- 08140 -5.0 IV) OMB Office of Management and Budget ORI ................... . Originating Agency Identifier PDA Personal Digital Assistant PII Personally Identifiable Information PIN _._........ Personal Identification Number PKI _ Public Key Infrastructure POC Point -of- Contact QA Quality Assurance RF Radio Frequency SA Security Addendum SCO State Compact Officer SIB State Identification Bureau SIG Special Interest Group SP Special Publication SSID Service Set Identifier TAC Terminal Agency Coordinator TLS Transport Layer Security VLAN Virtual Local Area Network VoIP Voice Over Internet Protocol VPN Virtual Private Network WEP ...._ ............. Wired Equivalent Privacy WLAN Wireless Local Area Network WPA Wi -Fi Protected Access 2/09/2011 3 C11SD- ITS- DOC- 08t40 -5.0 B -3 11 APPENDIX C NETWORK TOPOLOGY DIAGRAMS Network diagrams, i.e. topological drawings, are an essential part of solid network security. Through graphical illustration, a comprehensive network diagram provides the "big picture" — enabling network managers to quickly ascertain the interconnecting nodes of a network for a multitude of purposes, including troubleshooting and optimization. Network diagrams are integral to demonstrating the manner in which each agency ensures criminal justice data is afforded appropriate technical security protections and is protected during transit and at rest. The following diagrams, labeled Appendix C.1 -A through C.1 -E, are examples for agencies to utilize during the development, maintenance, and update stages of their own network diagrams. By using these example drawings as a guideline, agencies can form the foundation for ensuring compliance with Section 5.7.1.2 of the CJIS Security Policy. The purpose for including the following diagrams in this policy is to aid agencies in their understanding of diagram expectations and should not be construed as a mandated method for network topologies. It should also be noted that agencies are not required to use the identical icons depicted in the example diagrams and should not construe any depiction of a particular vendor product as an endorsement of that product by the FBI CJIS Division. Appendix C.1 -A is a conceptual overview of the various types of agencies that can be involved in handling of CJIS data, and illustrates several ways in which these interconnections might occur. This diagram is not intended to demonstrate the level of detail required for any given agency's documentation, but it provides . the reader with some additional context through which to digest the following diagrams. Take particular note of the types of network interfaces in use between agencies, in some cases dedicated circuits with encryption mechanisms, and in other cases VPNs over the Internet. This diagram attempts to show the level of diversity possible within the law enforcement community. These diagrams in no way constitute a standard for network engineering, but rather, for the expected quality of documentation. The next four topology diagrams are of two separate types: those for strictly conceptual agencies, C.1 -13 through C.1 -D, and one documenting an actual municipal law- enforcement agency's equipment, C.1 -E. For C.1 -13 through C.1 -D, the details identifying specific "moving parts" in the diagrams by manufacturer and model are omitted, but it is expected that any agencies producing such documentation will provide diagrams with full manufacturer and model detail for each element of the diagram as is demonstrated in C.1 -E. Note that the quantities of clients should be documented in order to assist the auditor in understanding the scale of assets and information being protected. Appendix C.1 -13 depicts a conceptual state law enforcement agency's network topology and demonstrates a number of common technologies that are in use throughout the law enforcement community (some of which are compulsory per CJIS policy, and some of which are optional) including Mobile Broadband cards, VPNs, Firewalls, Intrusion Detection Devices, VLANs, and so forth. Note that although most state agencies will likely have highly- available configurations, the example diagram shown omits these complexities and only shows the "major moving parts" for clarity but please note the policy requires the logical location of all components be shown. The level of detail depicted should provide the reader with a pattern to model future documentation from, but should not be taken as network engineering guidance. 2/09/2011 C -1 CJISD - ITS -DOC- 08140 -5.0 �r� l Appendix C.1 -C depicts a conceptual county law enforcement agency. A number of common technologies are presented merely to reflect the diversity in the community, including proprietary Packet - over -RF infrastructures and advanced authentication techniques, and to demonstrate the fact that agencies can act as proxies for other agencies. Appendix C.1 -13 depicts a conceptual municipal law enforcement agency, presumably a small one that lacks any precinct -to -patrol data communications. This represents one of the smallest designs that could be assembled that, assuming all other details are properly considered, would meet the criteria for Section 5.7.1.2. This diagram helps to demonstrate the diversity in size that agencies handling criminal justice data exhibit. Appendix C.l -E depicts an actual municipal police force's topology, and demonstrates the level of detail suitable to assist an auditor. It also shows a few more common technologies in use, namely thin - client computing, advanced authentication services, and so on. 2/09/2011 C -2 CJISD- ITS -DOC- 08140 -5.0 1 l cc') '2 V Figure C -I -A Overview: Conceptual Connections Between Various Agencies Overview: Conceptual Connections Between Various Agencies Ded"W ouwu r�+ Y 2/09/2011 CJI SD- ITS -DOC- 08140 -5.0 C -3 Figure C -1 -C Conceptual Topology Diagram for a County Law Enforcement Agency Conceptual Topology Diagram For A County L OpACated nearar1a Intama CireWt To Cbaits To .State I Murw:ip* s L= RMW t III�fILS[If INa+r+rt �OIBCtpfl E> EtgYGnp1 Card * BUP- RK MQ-2 ExNPUW F CAD Q�t WA.K — — — - F" tN ,uMMtYIYr EW.TtITTI:N (� � SLMiISlO3CtHiECSId+ f Vvl-• 2/09/2011 01 SD- ITS -DOC- 08140 -5.0 ,aw Enforcement Agency WN Turnel6 Tn FAuruapa4tisa Yia Irnenret' r. .t Fk"w IWN 12CWOWn[ limed BY -AA .�.• �.,: r , t TLS wn�, 6 N�0 . ...... � .. Hosnd er State CA6C1ern Appendix C.1 0110112011 C -5 Figure C -1 -D Conceptual Topology Diagram for a Municipal Law Enforcement Agency Conceptual Topology Diagram For A Municipal Law Enforcement Agency Quake m vPN T VA Incemal kudKa d Stale I Inierrst Tn CounFY Inui -w-t Exlranal' Router Ro" 1 Rau:erl Fikaw�l WN, j fIPS 7J0-2 COmpLan[ _ =! I ECtiant to115 We8APP tyCAp Flaeled 5Y m +.178 -u¢ +AA R:. +A.A. ... .. ,» . FIF3 M62GlYpcLWTfWGiVRL16N 2/09/2011 CJISD- ITS -DOC- 08140 -5.0 1011M Appendix C.1-0 01/O1t2011 C -6 APPENDIX D SAMPLE INFORMATION EXCHANGE AGREEMENTS D -1. CJIS User Agreement CRIMINAL JUSTICE INFORMATION SERVICES (CJIS) SYSTEMS USER AGREEMENT The FBI CJIS Division provides state -of -the -art identification and information services to the local, state, tribal, federal, and international criminal justice communities, as well as the noncriminal justice community, for licensing and employment purposes. These services are administered and maintained by the FBI CJIS Division and managed in cooperation with the CJIS Systems Agency (CSA) and its administrator for CJIS data, the CJIS Systems Officer (CSO). The CJIS Systems include, but are not limited to: the Interstate Identification Index (III); National Crime Information Center (NCIC); Uniform Crime Reporting (UCR), whether summary or incident -based reporting to the National Incident -Based Reporting System; Fingerprint Identification Record System; Law Enforcement National Data Exchange (N -DEx); Law Enforcement Online; and the National Instant Criminal Background Check System (NICS). The FBI CJIS Division provides the following services to its users, as applicable: 1. Operational, technical, and investigative assistance. 2. Telecommunication lines to state, federal, and regulatory interfaces. 3. Legal and legislative review of matters pertaining to all CJIS Systems. 4. Timely information on all aspects of all CJIS Systems and other related programs by means of operating manuals, code manuals, technical and operational updates, various newsletters, information letters, frequently asked questions, and other relevant documents. 5. Training assistance and up -to -date materials provided to each CSO, NICS Point of Contact (POC), state Compact Officer, State Administrator, Information Security Officer (ISO), and other appropriate personnel. 6. Ongoing assistance to Systems' users through meetings and briefings with the CSOs, State Administrators, Compact Officers, ISOs, and NICS State POCs to discuss operational and policy issues. 7. Advisory Process through which authorized users have input as to the policies and procedures governing the operation of CJIS programs. 2/09/2011 C11SD- ITS -DOC- 08140 -5.0 D -1 mc') 8. National Crime Prevention and Privacy Compact Administrative Office through which states and other authorized users may submit issues concerning the noncriminal justice use of the III System. 9. Annual NICS Users Conference. 10. Audit. 11. Staff research assistance. PART 1 The purpose behind a designated CSO is to unify responsibility for Systems user discipline and to ensure adherence to established procedures and policies within each signatory state /territory/tribal agency and by each federal user. This agreement outlines the responsibilities of each CSO as they relate to all CJIS Systems and other related CJIS administered programs. These individuals are ultimately responsible for planning necessary hardware, software, funding, and training for access to all CJIS Systems. To ensure continued access as set forth above, the CSA agrees to adhere to all applicable CJIS policies including, but not limited to, the following: The signatory state/tribal agency will provide fingerprints that meet submission criteria for all qualifying arrests. In addition, states /tribal agencies will make their records available for interstate exchange for criminal justice and other authorized purposes unless restricted by state/tribal law, and, where applicable, continue to move toward participation in the III and, upon ratification of the National Crime Prevention and Privacy Compact, the National Fingerprint File. 2. Appropriate and reasonable quality assurance procedures; e.g., hit confirmation, audits for record timeliness, and validation, must be in place to ensure that only complete, accurate, and valid information is maintained in the CJIS Systems. 3. Biannual file synchronization of information entered into the III by participating states. 4. Security - Each agency is responsible for appropriate security measures as applicable to physical security of terminals and telecommunication lines; personnel security to include background screening requirements; technical security to protect against unauthorized use; data security to include III use, dissemination, and logging; and security of criminal history records. Additionally, each CSO must ensure that all agencies establish an 2/09/2011 CJ I S D- ITS -DOC -081 40 -5.0 D -2 information security structure that provides for an ISO and complies with the CJIS Security Policy. 5. Audit - Each agency shall be responsible for complying with all audit requirements for use of CJIS Systems. Each CSO is responsible for completing a triennial audit of all agencies with access to CJIS Systems through the CSO's lines. 6. Training - Each agency shall be responsible for training requirements, including compliance with operator training mandates. 7. Integrity of the Systems - Each agency shall be responsible for maintaining the integrity of the system in accordance with FBI CJIS Division/state/federal/tribal policies to ensure only authorized terminal access; only authorized transaction submission; and proper handling and dissemination of CJIS data. Each agency shall also be responsible for computer security incident reporting as required by the CJIS Security Policy. The following documents are incorporated by reference and made part of this agreement for CSA users: 1. Bylaws for the CJIS Advisory Policy Board and Working Groups. 2. CJIS Security Policy. 3. Interstate Identification Index Operational and Technical Manual, National Fingerprint File Operations Plan, NCIC 2000 Operating Manual, UCR Handbook -NIBRS Edition, and National Incident -Based Reporting System Volumes 1, 2, and 4. 4. National Crime Prevention and Privacy Compact, 42 United States Code (U.S.C.) § 14616. 5. NCIC Standards and UCR Standards, as recommended by the CJIS Advisory Policy Board. 6. The National Fingerprint File Qualification Requirements. 7. Title 28, Code of Federal Regulations, Parts 20 and 25, §50.12, and Chapter IX. 8. Electronic Fingerprint Transmission Specifications. 2/09/2011 D -3 CJISD - ITS -DOC- 08140 -5.0 9. Other relevant documents, to include: NCIC Technical and Operational Updates, CJIS Information Letters, NICS User Manual, NICS Interface Control Document. 10. Applicable federal, state, and tribal laws and regulations. PART 2 Additionally, there are authorized federal regulatory recipients and other authorized users that provide electronic fingerprint submissions through a CJIS Wide Area Network (WAN) connection (or other approved form of electronic connection) to the CJIS Division that are required to comply with the following CJIS policies: 1. The authorized user will provide fingerprints that meet submission criteria and apply appropriate and reasonable quality assurance procedures. 2. Security - Each agency is responsible for appropriate security measures as applicable to physical security of communication equipment; personnel security to include background screening requirements; technical security to protect against unauthorized use; and security of criminal history records. 3. Audit - Each authorized user shall be responsible for complying with all audit requirements for CJIS Systems. Additionally, each authorized user is subject to a triennial audit by the CJIS Division Audit staff. 4. Training - Each authorized user receiving criminal history record information shall be responsible for training requirements, including compliance with proper handling of criminal history records. The following documents are incorporated by reference and made part of this agreement for non -CSA authorized users: 1. CJIS Security Policy. 2. National Crime Prevention and Privacy Compact, 42 U.S.C. §14616. 3. Title 28, Code of Federal Regulations, Parts 20 and 25, § 50.12, and Chapter IX. 4. Other relevant documents, to include CJIS Information Letters. 2/09/2011 D-4 CJ I SD- ITS -DOC- 08140 -5.0 11Cd� 5. Applicable federal, state, and tribal laws and regulations. GENERAL PROVISIONS Funding: Unless otherwise agreed in writing, each party shall bear its own costs in relation to this agreement. Expenditures will be subject to federal and state budgetary processes and availability of funds pursuant to applicable laws and regulations. The parties expressly acknowledge that this in no way implies that Congress will appropriate funds for such expenditures. Termination: 1. All activities of the parties under this agreement will be carried out in accordance to the above - described provisions. 2. This agreement may be amended or terminated by the mutual written consent of the parties authorized representatives. Either party may terminate this agreement upon 30 -days written notification to the other party. Such notice will be the subject of immediate consultation by the parties to decide upon the appropriate course of action. In the event of such termination, the following rules apply: a. The parties will continue participation, financial or otherwise, up to the effective date of termination. b. Each party will pay the costs it incurs as a result of termination. c. All information and rights therein received under the provisions of this agreement prior to the termination will be retained by the parties, subject to the provisions of this agreement. 2/09/2011 D -5 CJ I S D- I TS- DOC- 08140 -5.0 ACKNOWLEDGMENT AND CERTIFICATION As a CSO or CJIS WAN Official (or other CJIS authorized official), I hereby acknowledge the duties and responsibilities as set out in this agreement. I acknowledge that these duties and responsibilities have been developed and approved by CJIS Systems users to ensure the reliability, confidentiality, completeness, and accuracy of all information contained in, or obtained by means of, the CJIS Systems. I further acknowledge that failure to comply with these duties and responsibilities may result in the imposition of sanctions against the offending state /agency; other federal, tribal, state, and local criminal justice users; and approved noncriminal justice users with System access, whether direct or indirect. The Director of the FBI (or the National Crime Prevention and Privacy Compact Council), may approve sanctions to include the termination of CJIS services. I hereby certify that I am familiar with all applicable documents that are made part of this agreement and to all applicable federal and state laws and regulations relevant to the receipt and dissemination of documents provided through the CJIS Systems. This agreement is a formal expression of the purpose and intent of both parties and is effective when signed. It may be amended by the deletion or modification of any provision contained therein, or by the addition of new provisions, after written concurrence of both parties. The "Acknowledgment and Certification" is being executed by the CSO or CJIS WAN Official (or other CJIS authorized official) in both an individual and representative capacity. Accordingly, this agreement will remain in effect after the CSO or CJIS WAN Official (or other CJIS authorized official) vacates his/her position or until it is affirmatively amended or rescinded in writing. This agreement does not confer, grant, or authorize any rights, privileges, or obligations to any third party. 2/09/2011 D -6 CJ I S D- ITS -DOC -0 8140 -5.0 11� � SYSTEMS USER AGREEMENT Please execute either Part 1 or Part 2 PART 1 Date: CJIS Systems Officer Printed Name /Title CONCURRENCE OF CSA HEAD: Date: CSA Head Printed Name /Title PART 2 Date: CJIS WAN Official (or other CJIS Authorized Official) Printed Name /Title CONCURRENCE OF CJIS WAN AGENCY HEAD: Date: CJIS WAN Agency Head Printed Name/Title 2/09/2011 D -7 CJ I S D -I T S- DOCC- 08140 -5.0 11(�� FBI CJIS DIVISION: Date: Daniel D. Roberts Assistant Director FBI CJIS Division * The FBI Designated Federal Officer should be notified when a CSO or other CJIS WAN /authorized Official vacates his/her position. The name and telephone number of the Acting CSO or other CJIS WAN /authorized Official, and when known, the name and telephone number of the new CSO or other CJIS WAN /authorized Official, should be provided. Revised: 05/03/2006 2/09/2011 k�CS0 CJI S D- ITS -DOC- 08140 -5.0 D -2. Management Control Agreement Management Control Agreement Pursuant to the CJIS Security Policy Version 5, Sections 3.2.2 and 5.1, it is agreed that with respect to administration of that portion of computer systems and network infrastructure interfacing directly or indirectly with the state network (Network Name) for the interstate exchange of criminal history/criminal justice information, the (Criminal Justice Agency) shall have the authority, via managed control, to set and enforce: (1) Priorities. (2) Standards for the selection, supervision, and termination of personnel. (3) Policy governing operation of justice systems, computers, access devices, circuits, hubs, routers, firewalls, and any other components, including encryption, that comprise and support a telecommunications network and related criminal justice systems to include but not limited to criminal history record/criminal justice information, insofar as the equipment is used to process or transmit criminal justice systems information guaranteeing the priority, integrity, and availability of service needed by the criminal justice community. (4) Restriction of unauthorized personnel from access or use of equipment accessing the State network. (5) Compliance with all rules and regulations of the (Criminal Justice Agency) Policies and CJIS Security Policy in the operation of all information received. "Responsibility for management of security control shall remain with the criminal justice agency." CJIS Security Policy Version 5.0, Section 3.2. This agreement covers the overall supervision of all (Criminal Justice Agency) systems, applications, equipment, systems design, programming, and operational procedures associated with the development, implementation, and maintenance of any (Criminal Justice Agency) system to include NCIC Programs that may be subsequently designed and/or implemented within the (Criminal Justice Agency). John Smith, CIO Date Any State Department of Administration Joan Brown, CIO Date (Criminal Justice Agency) D -9 2/09/2011 CJISD - ITS -DOC- 08140 -5.0 1` D -3. Noncriminal Justice Agency Agreement & Memorandum of Understanding MEMORANDUM OF UNDERSTANDING BETWEEN THE FEDERAL BUREAU OF INVESTIGATION AND (Insert Name of Requesting Organization) FOR THE ESTABLISHMENT AND ACCOMMODATION OF THIRD -PARTY CONNECTIVITY TO THE CRIMINAL JUSTICE INFORMATION SERVICES DIVISION'S WIDE AREA NETWORK 1. PURPOSE: This Memorandum of Understanding (MOU) between the Federal Bureau of Investigation (FBI) and (insert requesting organization's name), hereinafter referred to as the "parties," memorializes each party's responsibilities with regard to establishing connectivity to records services accessible via the Wide Area Network (WAN) of the FBI's Criminal Justice Information Services (CJIS) Division. 2. BACKGROUND: The requesting organization, (insert requesting organization's name), being approved for access to systems of records accessible via the CJIS WAN, desires connectivity to the CJIS WAN or via a secure Virtual Private Network (VPN) Connection (Internet) to the CJIS WAN. The CJIS Division has created a framework for accommodating such requests based on the type of connection. In preparing for such non - CJIS - funded connectivity to the CJIS WAN, the parties plan to acquire, configure, and place needed communications equipment at suitable sites and to make electronic connections to the appropriate systems of records via the CJIS WAN. 2/09/2011 D -10 C11SD- ITS- DOC- 08140 -5.0 To ensure that there is a clear understanding between the parties regarding their respective roles in this process, this MOU memorializes each party's responsibilities regarding the development, operation, and maintenance of third -party connectivity to the CJIS WAN. Unless otherwise contained in an associated contract, the enclosed terms apply. If there is a conflict between terms and provisions contained in both the contract and this MOU, the contract will prevail. 3. AUTHORITY: The FBI is entering into this MOU under the authority provided by Title 28, United States Code (U.S.C.), Section 534; 42 U.S.C. § 14616; and/or Title 28, Code of Federal Regulations, Part 906. 4. SCOPE: a. The CJIS Division agrees to: i. Provide the requesting organization with a "CJIS WAN Third -Party Connectivity Package" that will detail connectivity requirements and options compatible with the CJIS Division's WAN architecture upon receipt of a signed nondisclosure statement. ii. Configure the requesting organization's connection termination equipment suite at Clarksburg, West Virginia, and prepare it for deployment or shipment under the CJIS WAN option. In the Secure VPN arrangement only, the third party will develop, configure, manage, and maintain its network connectivity to its preferred service provider. iii. Work with the requesting organization to install the connection termination equipment suite and verify connectivity. iv. Perform installation and/or routine maintenance on the requesting organization's third -party dedicated CJIS WAN connection termination equipment after coordinating with the requesting organization's designated point of contact (POC) and during a time when the CJIS Division's technical personnel are near the requesting organization's site. v. Perform periodic monitoring and troubleshooting of the requesting organization's CJIS WAN connection termination equipment. Software patches will be maintained on the dedicated CJIS WAN connected network equipment only. Under the Secure VPN option, no availability or data thru -put rates will be guaranteed. 2/09/2011 D -11 CMD- ITS -DOC- 08140 -5.0 vi. Provide 24 hours a day, 7 days a week uninterrupted monitoring from the CJIS Division's Network Operations Center. vii. Provide information regarding potential hardware end -of -life replacement cycles to the requesting organization for its budgeting purposes. viii. Maintain third -party dedicated CJIS WAN connection termination equipment as if in the CJIS Division's operational environment. ix. Update the appropriate software on the requesting organization's dedicated connection termination equipment connected to the CJIS WAN (i.e., Cisco Intemetwork Operating System, SafeNet frame relay encryptor firmware, etc.) pursuant to the requesting organization's authorized maintenance contracts. x. Provide a POC and telephone number for MOU- related issues. b. The (insert requesting organization's name) agrees to: i. Coordinate requests for third -party connectivity to the CJIS WAN or the Secure VPN with the CJIS Division's POC. ii. Purchase hardware and software that are compatible with the CJIS WAN. iii. Pay for the telecommunications infrastructure that supports its connection to the CJIS WAN or Secure VPN. iv. Maintain telecommunication infrastructure in support of Secure VPN connectivity. v. Provide any /all hardware and software replacements and upgrades as mutually agreed to by the parties. vi. Pay for all telecommunication requirements related to its connectivity. vii. Provide required information for dedicated service relating to Data Link Connection Identifiers, Circuit Identifier, Permanent Virtual Circuit Identifiers, 2/09/2011 D-1 2 C11SD- ITS- DOC -08 I40 -5.0 ��cd� Local Exchange Carrier Identifier, POC, location, etc., as determined by the parties. viii. Transport the CJIS WAN connection termination equipment suite to the CJIS Division for configuration and preparation for deployment under the dedicated service option. ix. Provide registered Internet Protocol information to be used by the requesting organization's system to the CJIS Division. x. Provide the CJIS Division with six months advance notice or stated amount of time for testing activities (i.e., disaster recovery exercises). xi. Provide the CJIS Division with applicable equipment maintenance contract numbers and level of service verifications needed to perform software upgrades on connection termination equipment. xii. Provide the CJIS Division with applicable software upgrade and patch images (or information allowing the CJIS Division to access such images). xiii. Transport only official, authorized traffic over the Secure VPN. xiv. Provide a POC and telephone number for MOU- related issues. 5. FUNDING: There are no reimbursable expenses associated with this level of support. Each party will fund its own activities unless otherwise agreed to in writing. This MOU is not an obligation or commitment of funds, nor a basis for transfer of funds, but rather is a basic statement of understanding between the parties hereto of the nature of the relationship for the connectivity efforts. Unless otherwise agreed to in writing, each party shall bear its own costs in relation to this MOU. Expenditures by each party will be subject to its budgetary processes and to the availability of funds and resources pursuant to applicable laws, regulations, and policies. The parties expressly acknowledge that the above language in no way implies that Congress will appropriate funds for such expenditures. 6. SETTLEMENT OF DISPUTES: Disagreements between the parties arising under or relating to this MOU will be resolved only by consultation between the parties and will not be referred to any other person or entity for settlement. 2/09/2011 CJ I S D- ITS -DOC- 08140 -5.0 D -13 k(d) 7. SECURITY: It is the intent of the parties that the actions carried out under this MOU will be conducted at the unclassified level. No classified information will be provided or generated under this MOU. 8. AMENDMENT, TERMINATION, ENTRY INTO FORCE, AND DURATION: a. All activities of the parties under this MOU will be carried out in accordance with the above - described provisions. b. This MOU may be amended or terminated by the mutual written consent of the parties' authorized representatives. c. Either party may terminate this MOU upon 30 -days written notification to the other party. Such notice will be the subject of immediate consultation by the parties to decide upon the appropriate course of action. In the event of such termination, the following rules apply: i. The parties will continue participation, financial or otherwise, up to the effective date of the termination. ii. Each party will pay the costs it incurs as a result of the termination. iii. All information and rights therein received under the provisions of this MOU prior to the termination will be retained by the parties, subject to the provisions of this MOU. 9. FORCE AND EFFECT: This MOU, which consists of nine numbered sections, will enter into effect upon signature of the parties and will remain in effect until terminated. The parties should review the contents of this MOU annually to determine whether there is a need for the deletion, addition, or amendment of any provision. This MOU is not intended, and should not be construed, to create any right or benefit, substantive or procedural, enforceable at law or otherwise by any third party against the parties, their parent agencies, the United States, or the officers, employees, agents, or other associated personnel thereof. The foregoing represents the understandings reached between the parties. 2/09/2011 D -14 CJ ISD- ITS -DOC- 08140 -5.0 tk fd FOR THE FEDERAL BUREAU OF INVESTIGATION DANIEL D. ROBERTS Date Assistant Director Criminal Justice Information Services Division FOR THE (insert requesting organization name) Date 2/09/2011 CJIS D- ITS -DOC- 08140 -5,0 D -15 ll�d� D -4. Interagency Connection Agreement CRIMINAL JUSTICE INFORMATION SERVICES (CJIS) Wide Area Network (WAN) USER AGREEMENT BY INTERIM REMOTE LATENT USERS The responsibility of the FBI CJIS Division is to provide state -of -the -art identification and information services to the local, state, federal, and international criminal justice communities, as well as the civil community for licensing and employment purposes. The data provided by the information systems administered and maintained by the FBI CJIS Division are routed to and managed in cooperation with the designated interface agency official. This information includes, but is not limited to, the Interstate Identification Index (III), National Crime Information Center (NCIC), Uniform Crime Reporting (UCR)/National Incident -Based Reporting System (NIBRS), and the Integrated Automated Fingerprint Identification System (IAFIS) programs. In order to fulfill this responsibility, the FBI CJIS Division provides the following services to its users: ■ Operational, technical, and investigative assistance; ■ Telecommunications lines to local, state, federal and authorized interfaces; • Legal and legislative review of matters pertaining to IAFIS, CJIS WAN and other related services; ■ Timely information on all aspects of IAFIS, CJIS WAN, and other related programs by means of technical and operational updates, various newsletters, and other relative documents; ■ Shared management through the CJIS Advisory Process and the Compact Council; ■ Training assistance and up -to -date materials provided to each designated agency official, and; ■ Audit. 2/09/201 l CESD- ITS -DOC- 08140 -5.0 D -16 1 1(d) The concept behind a designated interface agency official is to unify responsibility for system user discipline and ensure adherence to system procedures and policies within each interface agency. These individuals are ultimately responsible for planning necessary hardware, software, funding, training, and the administration of policy and procedures including security and integrity for complete access to CJIS related systems and CJIS WAN related data services by authorized agencies. The following documents and procedures are incorporated by reference and made part of this agreement: • CJIS Security Policy; • Title 28, Code of Federal Regulations, Part 20; • Computer Incident Response Capability (CIRC); ■ Applicable federal and state laws and regulations. To ensure continued access as set forth above, the designated interface agency agrees to adhere to all CJIS policies, including, but not limited to, the following: The signatory criminal agency will provide fingerprints for all qualifying arrests either via electronic submission or fingerprint card that meet submission criteria. In addition, the agency will make their records available for interstate exchange for criminal justice and other authorized purposes. 2. The signatory civil agency with legislative authority will provide all qualifying fingerprints via electronic submission or fingerprint card that meet submission criteria. Appropriate and reasonable quality assurance procedures must be in place to ensure that only complete, accurate, and valid information is maintained in the system. 4. Security - Each agency is responsible for appropriate security measures as applicable to physical security of terminals and telecommunications lines; Interim Distributed Imaging System (IDIS) equipment shall remain stand- 2/09/2011 D -17 CJ I SD- ITS -DOC- 08140 -5.0 \\ (d) alone devices and be used only for authorized purposes; personnel security to meet background screening requirements; technical security to protect against unauthorized use; data security, dissemination, and logging for audit purposes; and actual security of criminal history records. Additionally, each agency must establish an information security structure that provides for an Information Security Officer (ISO) or a security point of contact. 5. Audit - Each agency shall be responsible for complying with the appropriate audit requirements. 6. Training - Each agency shall be responsible for training requirements, including compliance with training mandates. 7. Integrity of the system shall be in accordance with FBI CJIS Division and interface agency policies. Computer incident reporting shall be implemented. Until states are able to provide remote latent connectivity to their respective latent communities via a state WAN connection, the CJIS Division may provide direct connectivity to IAFIS via a dial-up connection or through the Combined DNA Index System ( CODIS) and/or National Integrated Ballistics Information Network (NIBIN) connections. When a state implements a latent management system and is able to provide intrastate connectivity and subsequent forwarding to IAFIS, this agreement may be terminated. Such termination notice will be provided in writing by either the FBI or the state CJIS Systems Agency. It is the responsibility of the local remote latent user to develop or acquire an IAFIS compatible workstation. These workstations may use the software provided by the FBI or develop their own software, provided it is IAFIS compliant. The CJIS Division will provide the approved modem and encryptors required for each dial -up connection to IAFIS. The CJIS Communication Technologies Unit will configure and test the encryptors before they are provided to the user. Users requesting remote latent connectivity through an existing CODIS and/or NIBIN connection must receive verification from the FBI that there are a sufficient number of Ethernet ports on the router to accommodate the request. If at any time search limits are imposed by the CJIS Division, these individual agency connections will be counted toward the total state allotment. 2/09/2011 D-18 CISD- ITS- DOC -08140-5.o I t(d ) ACKNOWLEDGMENT AND CERTIFICATION As a CJIS WAN interface agency official serving in the CJIS system, I hereby acknowledge the duties and responsibilities as set out in this agreement. I acknowledge that these duties and responsibilities have been developed and approved by CJIS system users in order to ensure the reliability, confidentiality, completeness, and accuracy of all information contained in or obtained by means of the CJIS system. I further acknowledge that a failure to comply with these duties and responsibilities may subject our agency to various sanctions adopted by the CJIS Advisory Policy Board and approved by the Director of the FBI. These sanctions may include the termination of CJIS service. As the designated CJIS WAN interface agency official serving in the CJIS system, I hereby certify that I am familiar with the contents of the Title 28, Code of Federal Regulations, Part 20; CJIS Security Policy; Computer Incident Response Capability; and applicable federal or state laws and regulations applied to IAFIS and CJIS WAN Programs for the dissemination of criminal history records for criminal and noncriminal justice purposes. Signature Print or Type CJIS WAN Agency Official Date CONCURRENCE OF FEDERAL /REGULATORY AGENCY HEAD OR STATE CJIS SYSTEMS OFFICER (CSO): Signature Title State CSO 2/09/2011 CJ IS D- ITS -DOC- 08140 -5.0 Print or Type Date D -19 � k(d ) FBI CJIS DIVISION: Signature - Daniel D. Roberts Assistant Director Title Date * If there is a change in the CJIS WAN interface agency official, the FBI Designated Federal Employee must be notified in writing 30 days prior to the change. 5/27/2004 UA modification reflects change in CTO title to CSO. 2/09/2011 D -20 CJISD- ITS- DOC -OS 140 -5.0 kk(d) APPENDIX E SECURITY FORUMS AND ORGANIZATIONAL ENTITIES AntiOnline ... . .. . ............ ........ . ........... . ......... I ....... . . ......... . ............. . . ..... .......... I . . ........... . ............... - .................................... . . .. . ............. . ..... . . ........... . ....... Black Hat ....... . .. ........................... . . .... . ....................... . . ..................... . ... I ....... . ............. I ...... . ........... .... .................. ....... . .............. . ....... . . ................. . . . . .......................... CIO.com CSO Online .. . ......... . ............. . . .... . ... ........... . ....... . CyberSpeak Podcast . ............. ... . .......... ................. ....... . . . . . ......... . ............ . .. ......... ... ....... . ........ ..... .. . ........... FBI Criminal Justice information Services Division (CJIS) ............ . ......... . . Forrester Security Forum ........ . ................. . . ........ . ........ . . .... . .............. -- ... . ... .............. .. Forum of Incident Response and Security Teams (FIRST) ........... ........ . ......... ............................... --- ................................... . ......................................................................... ............. . ........................................................................... Information Security Forum (ISF) Information Systems Audit and Control Association (ISACA) ......... ... ... . ........ . Information Systems Security Association (ISSA) . .... . ............. . . ......... . ...... Infosyssec I-- . — . ... . ...... . . . . ..... . .... International Organization for Standardization (ISO) -.1.1 ..... . ................... . ............ I ........ . .... - ......... . ......... . . .......... ..... . .... . ..................... . .. ............................................. . .................. .................. . .. ...... . .. . ..................... . ......................... . . ............ . ........... . . . ............. International Information Systems Security Certification Consortium, Inc. (ISC)2 . . .... . .................. . ............................................................ . ......................... . ....................................... ....................... . . ........... ......... . . ........... . .... . ..... . . . ......... . . . . . .. . . . ...................... Metasploit ........ . . .... . ......... . ............ Microsoft Developer Network (MSDN) Information Security ... . ........ . ...... . . .... . . ........ National Institute of Standards and Technology (NIST) . ............... - ................... . ... ........... . .. Open Web Application Security Project (OWASP) .......... ...... ....... ................................ ........... SANS (SysAdmin, Audit, Network, Security) Institute .......................................... ........... . ........... . .... . .......... - ......................................... . . . .......... - .................. . .... . .................. . ....... . ..... . ...... . ....... . .... . ......................... . ............................. . ...... . . . .. . .......... . . . ...... - SC Magazine .1.1- ................ - ......... ... ...... .. I .............. ...... - .... ........ .................. .... ........... ............. .......................................... ............... ............................................................... Schneier.corn --- ......... ............ . . - .... . ....... .... . ........ . .. . . . ......... . .. .......... Security Focus ............... .......... ... The Register . .......... ..... .................. US Computer Emergency Response Team (CERT) . ....... US DoJ Computer Crime and Intellectual Property Section (CCIPS) E-1 2/09/2011 CJISD-ITS-DOC-08140-5.0 APPENDIX F IT SECURITY INCIDENT RESPONSE FORM (Sample Form) FBI CJIS DIVISION INFORMATION SECURITY OFFICER (ISO) COMPUTER SECURITY INCIDENT RESPONSE CAPABILITY (CSIRC) DATE OF REPORT: DATE OF INCIDENT: POINT(S) OF CONTACT: _ LOCATION(S) OF INCIDENT: SYSTEM(S) AFFECTED: METHOD OF DETECTION: NATURE OF INCIDENT: INCIDENT DESCRIPTION: ACTIONS TAKEN /RESOLUTION: Copies To: George White (FBI CJIS Division ISO) 1000 Custer Hollow Road Clarksburg, WV 26306 -0102 (304) 625 -5849 ueorae.white(a- ), leo.gov or iso(dleo.eov 2/09/2011 CJ ISD- ITS -DOC- 08140.5.0 REPORTING FORM (mm/dd/yyyy) ( mm/dd/yyyy) PHONE /EXT /E -MAIL: Rob Richter (FBI CJIS CSIRC POC) 1000 Custer Hollow Road/Module D -2 Clarksburg, AN 26306 -0102 (304) 625 -5044 john.richter @leo.gov or iso(aleo.aov F -1 APPENDIX G VIRTUALIZATION This appendix documents security considerations for implementing and operating virtual environments that process, store, and/or transmit Criminal Justice Information. The FBI CJIS ISO has fielded several inquiries from various states requesting guidance on implementing virtual environments within their data centers. With the proliferation of virtual environments across industry in general there is a realistic expectation that FBI CJIS Auditors will encounter virtual environments during the upcoming year. Criminal Justice Agencies (CJAs) and Noncriminal Justice Agencies (NCJAs) alike need to understand and appreciate the foundation of security protection measures required for virtual environments. From Microsoft's Introduction to Windows Server 2008 http://www.microsoft.com/windowsserver2008/en/usihvperv.M x: "Server virtualization, also known as hardware virtualization, is a hot topic in the IT world because of the potential for serious economic benefits. Server virtualization enables multiple operating systems to run on a single physical machine as virtual machines (VMs). With server virtualization, you can consolidate workloads across multiple underutilized server machines onto a smaller number of machines. Fewer physical machines can lead to reduced costs through lower hardware, energy, and management overhead, plus the creation of a more dynamic IT infrastructure. " From a trade publication, kernelthread.com httv://www.kemelthread.com/i)ublications/virtualization/: "virtualization is a framework or methodology of dividing the resources of a computer into multiple execution environments, by applying one or more concepts or technologies such as hardware and software partitioning, time - sharing, partial or complete machine simulation, emulation, quality of service, and many others. From an Open Source Software developer huv://www.kallasoft.com/t)c-bardware-virtualization-basics/: " Virtualization refers to virtualizing hardware in software, allowing multiple operating systems, or images, to run concurrently on the same hardware. There are two main types of virtualization software: • "Type -1 Hypervisor, which runs 'bare- metal' (on top of the hardware) • "Type -2 Hypervisor which requires a separate application to run within an operating system "Type] hypervisors usually offer the best in efficiency, while Type -2 hypervisors allow for greater support of hardware that can be provided by the operating system. For the developer, power user, and small business IT professionals, virtualization offers the same basic idea of collapsing multiple physical boxes into one. For instance, a small business can run a web server and an Exchange server without the need for two boxes. Developers and power users can use the ability to contain different development environments without the need to modify their main operating system. Big businesses can also benefit from virtualization by allowing G -1 2/09/2011 CJISD - ITS -DOC- 08140 -5.0 \k(d) software maintenance to be run and tested on a separate image on hardware without having to take down the main production system. " Industry leaders and niche developers are bringing more products to market every day. The following article excerpts, all posted during September 2008, on www.virtualization.com are examples of industry offerings. "Microsoft and Novell partnered together for joint virtualization solution. Microsoft and Novell are announcing the availability of a joint virtualization solution optimized for customers running mixed - source environments. The joint offering includes SUSE Linux Enterprise Server configured and tested as an optimized guest operating system running on Windows Sever 2008 Hyper -V, and is fully support by both companies' channel partners. The offering provides customers with the first complete, fully supported and optimized virtualization solution to span Windows and Linux environments. " "Sun Microsystems today account the availability of Sun xVM Server software and Sun xVM Ops Center 2. 0, key components in its strategy. Sun also announced the addition of comprehensive services and support for Sun xVM Server software and xVM Ops Center 2.0 to its virtualization suite of services. Additionally, Sun launched xVMserver.org, a new open source community, where developers can download the first source code bundle for SunxVM Server software and contribute to the direction and development of the product. " "NetEx, specialist in high -speed data transport over TCP, today announced Virtual HyperlP bandwidth optimization solutions for VMware environments that deliver a threefold to tenfold increase in data replication performance. Virtual HyperlP is a software -based Data Transport Optimizer that operates on the VMware ESX server and boost the performance of storage replication applications from vendors such as EMC, NetApp, Symantec, IBM, Data Domain, and FalconStor. Virtual HyperlP mitigates TCP performance issues that are common when moving data over wide —area network (WAN) connections because of bandwidth restrictions, latency due to distance and /or router hop counts, packet loss and network errors. Like the company's award - winning appliance - based HyperlP, Virtual HyperlP eliminates these issues with an innovative software design developed specifically to accelerate traffic over an IP based network. " From several sources, particularly: http: / /www. windowsecurity.com/ articles /security- virutalization.html http: / /csrc.nist. gov /publications/ drafts /6--= 64rev2 /draft- sp800- 64- Revision2.pdf Virtualization provides several benefits: • Make better use of under - utilized servers by consolidating to fewer machines saving on hardware, environmental costs, management, and administration of the server infrastructure. • Legacy applications unable to run on newer hardware and /or operating systems can be loaded into a virtual environment — replicating the legacy environment. 2/09/2011 O -2 CJ I S D-1 TS- DOC- 08140 -5.0 • Provides for isolated portions of a server where trusted and untrusted applications can be ran simultaneously — enabling hot standbys for failover. • Enables existing operating systems to run on shared memory multiprocessors. • System migration, backup, and recovery are easier and more manageable. Virtualization also introduces several vulnerabilities: • Host Dependent. • If the host machine has a problem then all the VMS could potentially terminate. • Compromise of the host makes it possible to take down the client servers hosted on the primary host machine. • If the virtual network is compromised then the client is also compromised. • Client share and host share can be exploited on both instances. Potentially this can lead to files being copied to the share that fill up the drive. These vulnerabilities can be mitigated by the following factors: • Apply "least privilege" technique to reduce the attack surface area of the virtual environment and access to the physical environment. • Configuration and patch management of the virtual machine and host, i.e. Keep operating systems and application patches up to date on both virtual machines and hosts. • Install the minimum applications needed on host machines. • Practice isolation from host and virtual machine. • Install and keep updated antivirus on virtual machines and the host. • Segregation of administrative duties for host and versions. • Audit logging as well as exporting and storing the logs outside the virtual environment. • Encrypting network traffic between the virtual machine and host IDS and IPS monitoring. • Firewall each virtual machine from each other and ensure that only allowed protocols will transact. 2/09/2011 CJI SD- ITS- D0608140 -5.0 G -3 i«d> APPENDIX H SECURITY ADDENDUM The following pages contain the legal authority, purpose, and genesis of the Criminal Justice Information Services Security Addendum (H2 -H4); the Security Addendum itself (1-15 -1-16); and the Security Addendum Certification page (1-17). 2/09/2011 CJI SD- ITS -DOC- 08140 -5.0 H -1 ko' FEDERAL BUREAU OF INVESTIGATION CRIMINAL JUSTICE INFORMATION SERVICES SECURITY ADDENDUM Legal Authority for and Purpose and Genesis of the Security Addendum Traditionally, law enforcement and other criminal justice agencies have been responsible for the confidentiality of their information. Accordingly, until mid -1999, the Code of Federal Regulations Title 28, Part 20, subpart C, and the National Crime Information Center (NCIC) policy paper approved December 6, 1982, required that the management and exchange of criminal justice information be performed by a criminal justice agency or, in certain circumstances, by a noncriminal justice agency under the management control of a criminal justice agency. In light of the increasing desire of governmental agencies to contract with private entities to perform administration of criminal justice functions, the FBI sought and obtained approval from the United States Department of Justice (DOJ) to permit such privatization of traditional law enforcement functions under certain controlled circumstances. In the Federal Register of May 10, 1999, the FBI published a Notice of Proposed Rulemaking, announcing as follows: 1. Access to CHRI (Criminal History Record Information] and Related Information, Subject to Appropriate Controls, by a Private Contractor Pursuant to a Specific Agreement with an Authorized Governmental Agency To Perform an Administration of Criminal Justice Function (Privatization). Section 534 of title 28 of the United States Code authorizes the Attorney General to exchange identification, criminal identification, crime, and other records for the official use of authorized officials of the federal government, the states, cities, and penal and other institutions. This statute also provides, however, that such exchanges are subject to cancellation if dissemination is made outside the receiving departments or related agencies. Agencies authorized access to CHRI traditionally have been hesitant to disclose that information, even in furtherance of authorized criminal justice functions, to anyone other than actual agency employees lest such disclosure be viewed as unauthorized. In recent years, however, governmental agencies seeking greater efficiency and economy have become increasingly interested in obtaining support services for the administration of criminal justice from the private sector. With the concurrence of the FBI's Criminal Justice Information Services (CJIS) Advisory Policy Board, the DOJ has concluded that disclosures to private persons and entities providing support services for criminal justice agencies may, when subject to appropriate controls, properly be viewed as permissible disclosures for purposes of compliance with 28 U.S.C. 534. We are therefore proposing to revise 28 CFR 20.33(a)(7) to provide express authority for such arrangements. The proposed authority is similar to the authority that already exists in 28 CFR 20.21(b)(3) for state and local CHRI systems. Provision of CHRI under this authority would only be permitted pursuant to a specific agreement with an authorized governmental 2/09/2011 H -2 CJ I S D- ITS -DOC -0 8140 -5.0 Wd) agency for the purpose of providing services for the administration of criminal justice. The agreement would be required to incorporate a security addendum approved by the Director of the FBI (acting for the Attorney General). The security addendum would specifically authorize access to CHRI, limit the use of the information to the specific purposes for which it is being provided, ensure the security and confidentiality of the information consistent with applicable laws and regulations, provide for sanctions, and contain such other provisions as the Director of the FBI (acting for the Attorney General) may require. The security addendum, buttressed by ongoing audit programs of both the FBI and the sponsoring governmental agency, will provide an appropriate balance between the benefits of privatization, protection of individual privacy interests, and preservation of the security of the FBI's CHRI systems. The FBI will develop a security addendum to be made available to interested governmental agencies. We anticipate that the security addendum will include physical and personnel security constraints historically required by NCIC security practices and other programmatic requirements, together with personal integrity and electronic security provisions comparable to those in NCIC User Agreements between the FBI and criminal justice agencies, and in existing Management Control Agreements between criminal justice agencies and noncriminal justice governmental entities. The security addendum will make clear that access to CHRI will be limited to those officers and employees of the private contractor or its subcontractor who require the information to properly perform services for the sponsoring governmental agency, and that the service provider may not access, modify, use, or disseminate such information for inconsistent or unauthorized purposes. Consistent with such intent, Title 28 of the Code of Federal Regulations (C.F.R.) was amended to read: § 20.33 Dissemination of criminal history record information. a) Criminal history record information contained in the Interstate Identification Index (III) System and the Fingerprint Identification Records System (FIRS) may be made available: 1) To criminal justice agencies for criminal justice purposes, which purposes include the screening of employees or applicants for employment hired by criminal justice agencies. 2) To noncriminal justice governmental agencies performing criminal justice dispatching functions or data processing/information services for criminal justice agencies; and 3) To private contractors pursuant to a specific agreement with an agency identified in paragraphs (a)(1) or (a)(6) of this section and for the purpose of providing services for the administration of criminal justice pursuant to that agreement. The agreement must incorporate a security addendum approved by the Attorney General of the United 2/09/2011 H -3 CJISD- ITS -DOC- 08140 -5.0 States, which shall specifically authorize access to criminal history record information, limit the use of the information to the purposes for which it is provided, ensure the security and confidentiality of the information consistent with these regulations, provide for sanctions, and contain such other provisions as the Attorney General may require. The power and authority of the Attorney General hereunder shall be exercised by the FBI Director (or the Director's designee). This Security Addendum, appended to and incorporated by reference in a government- private sector contract entered into for such purpose, is intended to insure that the benefits of privatization are not attained with any accompanying degradation in the security of the national system of criminal records accessed by the contracting private party. This Security Addendum addresses both concerns for personal integrity and electronic security which have been addressed in previously executed user agreements and management control agreements. A government agency may privatize functions traditionally performed by criminal justice agencies (or noncriminal justice agencies acting under a management control agreement), subject to the terms of this Security Addendum. If privatized, access by a private contractor's personnel to NCIC data and other CJIS information is restricted to only that necessary to perform the privatized tasks consistent with the government agency's function and the focus of the contract. If privatized the contractor may not access, modify, use or disseminate such data in any manner not expressly authorized by the government agency in consultation with the FBI. 2/09/2011 H-4 CJ IS D- ITS- DOC-0 8140-5.0 \k�i� FEDERAL BUREAU OF INVESTIGATION CRIMINAL JUSTICE INFORMATION SERVICES SECURITY ADDENDUM The goal of this document is to augment the CJIS Security Policy to ensure adequate security is provided for criminal justice systems while (1) under the control or management of a private entity or (2) connectivity to FBI CJIS Systems has been provided to a private entity (contractor). Adequate security is defined in Office of Management and Budget Circular A- 130 as "security commensurate with the risk and magnitude of harm resulting from the loss, misuse, or unauthorized access to or modification of information." The intent of this Security Addendum is to require that the Contractor maintain a security program consistent with federal and state laws, regulations, and standards (including the CJIS Security Policy in effect when the contract is executed), as well as with policies and standards established by the Criminal Justice Information Services (CJIS) Advisory Policy Board (APB). This Security Addendum identifies the duties and responsibilities with respect to the installation and maintenance of adequate internal controls within the contractual relationship so that the security and integrity of the FBI's information resources are not compromised. The security program shall include consideration of personnel security, site security, system security, and data security, and technical security. The provisions of this Security Addendum apply to all personnel, systems, networks and support facilities supporting and/or acting on behalf of the government agency. 1.00 Definitions 1.01 Contracting Government Agency (CGA) - the government agency, whether a Criminal Justice Agency or a Noncriminal Justice Agency, which enters into an agreement with a private contractor subject to this Security Addendum. 1.02 Contractor - a private business, organization or individual which has entered into an agreement for the administration of criminal justice with a Criminal Justice Agency or a Noncriminal Justice Agency. 2.00 Responsibilities of the Contracting Government Agency. 2.01 The CGA will ensure that each Contractor employee receives a copy of the Security Addendum and the CJIS Security Policy and executes an acknowledgment of such receipt and the contents of the Security Addendum. The signed acknowledgments shall remain in the possession of the CGA and available for audit purposes. 3.00 Responsibilities of the Contractor. 3.01 The Contractor will maintain a security program consistent with federal and state laws, regulations, and standards (including the CJIS Security Policy in effect when the contract is executed), as well as with policies and standards established by the Criminal Justice Information Services (CJIS) Advisory Policy Board (APB). 4.00 Security Violations. 4.01 The CGA must report security violations to the CJIS Systems Officer (CSO) and the Director, FBI, along with indications of actions taken by the CGA and Contractor. H -5 2/09/2011 CJ I SD- ITS -DOC- 08140 -5.0 IV% 4.02 Security violations can justify termination of the appended agreement. 4.03 Upon notification, the FBI reserves the right to: a. Investigate or decline to investigate any report of unauthorized use; b. Suspend or terminate access and services, including telecommunications links. The FBI will provide the CSO with timely written notice of the suspension. Access and services will be reinstated only after satisfactory assurances have been provided to the FBI by the CJA and Contractor. Upon termination, the Contractor's records containing CHRI must be deleted or returned to the CGA. 5.00 Audit 5.01 The FBI is authorized to perform a final audit of the Contractor's systems after termination of the Security Addendum. 6.00 Scope and Authority 6.01 This Security Addendum does not confer, grant, or authorize any rights, privileges, or obligations on any persons other than the Contractor, CGA, CIA (where applicable), CSA, and FBI. 6.02 The following documents are incorporated by reference and made part of this agreement: (1) the Security Addendum; (2) the NCIC 2000 Operating Manual; (3) the CJIS Security Policy; and (4) Title 28, Code of Federal Regulations, Part 20. The parties are also subject to applicable federal and state laws and regulations. 6.03 The terms set forth in this document do not constitute the sole understanding by and between the parties hereto; rather they augment the provisions of the CJIS Security Policy to provide a minimum basis for the security of the system and contained information and it is understood that there may be terms and conditions of the appended Agreement which impose more stringent requirements upon the Contractor. 6.04 This Security Addendum may only be modified by the FBI, and may not be modified by the parties to the appended Agreement without the consent of the FBI. 6.05 All notices and correspondence shall be forwarded by First Class mail to: Assistant Director Criminal Justice Information Services Division, FBI 1000 Custer Hollow Road Clarksburg, West Virginia 26306 2/09/2011 CJIS D- ITS -DOC- 08140 -5.0 M � lP) FEDERAL BUREAU OF INVESTIGATION CRIMINAL JUSTICE INFORMATION SERVICES SECURITY ADDENDUM CERTIFICATION I hereby certify that I am familiar with the contents of (1) the Security Addendum, including its legal authority and purpose; (2) the NCIC 2000 Operating Manual; (3) the CJIS Security Policy; and (4) Title 28, Code of Federal Regulations, Part 20, and agree to be bound by their provisions. I recognize that criminal history record information and related data, by its very nature, is sensitive and has potential for great harm if misused. I acknowledge that access to criminal history record information and related data is therefore limited to the purpose(s) for which a government agency has entered into the contract incorporating this Security Addendum. I understand that misuse of the system by, among other things: accessing it without authorization; accessing it by exceeding authorization; accessing it for an improper purpose; using, disseminating or re- disseminating information received as a result of this contract for a purpose other than that envisioned by the contract, may subject me to administrative and criminal penalties. I understand that accessing the system for an appropriate purpose and then using, disseminating or re- disseminating the information received for another purpose other than execution of the contract also constitutes misuse. I further understand that the occurrence of misuse does not depend upon whether or not I receive additional compensation for such authorized activity. Such exposure for misuse includes, but is not limited to, suspension or loss of employment and prosecution for state and federal crimes. Printed Name /Signature of Contractor Employee Date Printed Name /Signature of Contractor Representative Date Organization and Title of Contractor Representative 2/09/2011 C1IS D- ITS -DOC- 08140 -5.0 H -7 I k(d) APPENDIX REFERENCES White House Memo entitled "Designation and Sharing of Controlled Unclassified Information (CUI), May 9, 2008 [CJIS RA] CJIS Security Policy Risk Assessment Report; August 2008; For Official Use Only, Prepared by: Noblis; Prepared for: U.S. Department of Justice, Federal Bureau of Investigation, Criminal Justice Information Services Division, 1000 Custer Hollow Road, Clarksburg, WV 26306 [FBI SA 8/20061 Federal Bureau of Investigation, Criminal Justice Information Services, Security Addendum; 8/2006; Assistant Director, Criminal Justice Information Services, FBI, 1000 Custer Hollow Road, Clarksburg, West Virginia 26306 [FISMA] Federal Information Security Management Act of 2002; House of Representatives Bill 2458, Title III - Information Security [FIPS 199] Standards for Security Categorization of Federal Information and Information Systems; Federal Information Processing Standards Publication, FIPS PUB 199; February 2004 [FIPS 200] Minimum Security Requirements for Federal Information and Information Systems; Federal Information Processing Standards Publication, FIPS PUB 200; March 2006 [FIPS 201] Personal Identity Verification for Federal Employees and Contractors; Federal Information Processing Standards Publication, FIPS PUB 201 -1 [NIST SP 800 -14] Generally Accepted Principles and Practices for Securing Information Technology Systems; NIST Special Publication 800-14 [NIST SP 800 -25] Federal Agency Use of Public Key Technology for Digital Signatures and Authentication; NIST Special Publication 800-25 [NIST SP 800 -30] Risk Management Guide for Information Technology Systems; NIST Special Publication 800-36 [NIST SP 800 -321 Introduction to Public Key Technology and the Federal PKI Infrastructure; NIST Special Publication 800-32 [NIST SP 800 -341 Contingency Planning Guide for Information Technology Systems; NIST Special Publication 800-34 [NIST SP 800 -351 Guide to Information Technology Security Services; NIST Special Publication 800-35 [NIST SP 800 -361 Guide to Selecting Information Technology Security Products; NIST Special Publication 800-36 [NIST SP 800 -39] Managing Riskfrom Information Systems, An Organizational Perspective; NIST Special Publication 800-39 [NIST SP 800 -401 Procedures for Handling Security Patches; NIST Special Publication 800- 40 [NIST SP 800 -44] Guidelines on Securing Public Web Servers; NIST Special Publication 800-44 2/09/2011 CJ I SD- ITS -DOC- 08140 -5.0 ktw) [NIST SP 800-451 Guidelines on Electronic Mail Security; NIST Special Publication 800 -45, Version 2 [NIST SP 800-461 Security for Telecommuting and Broadband Communications; NIST Special Publication 800-46 [NIST SP 800 -18] Wireless Network Security: 802.11, Bluetooth, and Handheld Devices; NIST Special Publication 8008 [NIST SP 800 -52] Guidelines on the Selection and Use of Transport Layer Security; NIST Special Publication 800-52 [NIST SP 800 -53] Recommended Security Controls for Federal Information Systems; NIST Special Publication 800 -53, Revision 2 [NIST SP 800 -53A] Guide for Assessing the Security Controls in Federal Information Systems, Building Effective Security Assessment Plans; NIST Special Publication 800 -53A [NIST SP 800-601 Guide for Mapping Types of Information and Information Systems to Security Categories; NIST Special Publication 800 -60, Revision 1, DRAFT [NIST SP 800-63 -1] Electronic Authentication Guideline; NIST Special Publication 800 -63- 1; DRAFT [NIST SP 800 -64] NIST Special Publication 800-64 [NIST SP 800 -661 An Introductory Resource Guide for Implementing the Health Insurance Portability and Accountability Act (HIPAA); NIST Special Publication 800-66 [NIST SP 800-68] Guidance for Securing Microsoft Windows XP Systems for IT Professionals: A NIST Security Configuration Checklist; NIST Special Publication 800-68 [NIST SP 800 -70] Security Configuration Checklists Program for IT Products; NIST Special Publication 800-70 [NIST SP 800 -72] Guidelines on PDA Forensics; NIST Special Publication 800-72 [NIST SP 800 -731 Integrated Circuit Card for Personal Identification Verification; NIST Special Publication 800 -73; Revision 1 [NIST SP 800 -76] Biometric Data Specification for Personal Identity Verification; NIST Special Publication 800-76 [NIST SP 800 -77] Guide to IPSec VPNs; NIST Special Publication 800-77 [NIST SP 800 -781 Cryptographic Algorithms and Key Sizes for Personal Identity Verification; NIST Special Publication 800-78 [NIST SP 800 -81] Secure Domain Name System (DNS) Deployment Guide; NIST Special Publication 800-81 [NIST SP 800 -841 Guide to Test, Training, and Exercise Programs for IT Plans and Capabilities; NIST Special Publication 800-84 [NIST SP 800 -86] Guide to Integrating Forensic Techniques into Incident Response•, NIST Special Publication 800-86 2/09/2011 1 -2 CJISD - ITS -DOC- 08140 -5.0 t( c1 [NIST SP 800 -871 Codes for the Identification of Federal and Federally Assisted Agencies; NIST Special Publication 800-87 [NIST SP 800 -961 PIV Card /Reader Interoperability Guidelines; NIST Special Publication 800-96 [NIST SP 800 -97] Guide to IEEE 802.11 is Robust Security Networks; NIST Special Publication 800-97 [NIST SP 800 -1211 Guide to Bluetooth Security, NIST Special Publication 800 -121 [NIST SP 800 -124] Guidelines on Cell Phone and PDA Security, NIST Special Publication 800 -124 [OMB A -1301 Management of Federal Information Resources; Circular No. A -130; Revised; February 8, 1996 [OMB M -04-041 E- Authentication Guidance for Federal Agencies; OMB Memo 04-04; December 16, 2003 [OMB M-06-15] Safeguarding Personally Identifiable Information; OMB Memo 06-15; May 22, 2006 [OMB M- 06-16] Protection of Sensitive Agency Information; OMB Memo 06-16; June 23, 2006 [OMB M- 06-191 Reporting Incidents Involving Personally Identifiable Information and Incorporating the Cost for Security in Agency Information Technology Investments; OMB Memo 06-19; July 12, 2006 [OMB M -07 -16] Safeguarding Against and Responding to the Breach of Personally Identifiable Information; OMB Meme 07 -16; May 22, 2007 [Surviving Security] Surviving Security: How to Integrate People, Process, and Technology; Second Edition; 2004 [USC Title 5, Section 5521 Public information; agency rules, opinions, orders, records, and proceedings; United States Code, Title 5 - Government Agency and Employees, Part I - The Agencies Generally, Chapter 5 - Administrative Procedure, Subchapter II - Administrative Procedure, Section 552. Public information; agency rules, opinions, orders, records, and proceedings [USC Title 44, Section 3506] Federal Information Policy; 01/02/2006; United States Code, Title 44 - Public Printing and Documents; Chapter 35 - Coordination of Federal Information Policy; Subchapter I - Federal Information Policy, Section 3506 2/09/2011 CJISD- ITS -DOC- 08140 -5.0 1 -3 APPENDIX J NONCRIMINAL JUSTICE AGENCY SUPPLEMENTAL GUIDANCE This supplemental guidance for noncriminal justice agencies (NCJA) is provided specifically for those whose only access to FBI CJIS data is authorized by legislative enactment or federal executive order to request civil fingerprint -based background checks for licensing, employment, or other noncriminal justice purposes, via their State Identification Bureau and/or Channeling agency. This guidance does not apply to criminal justice agencies covered under an active user agreement with the FBI CJIS Division for direct connectivity to the FBI CJIS Division via the FBI CJIS Wide Area Network. Examples of the target audience for this supplemental guidance include school boards, banks, medical boards, gaming commissions, alcohol and tobacco control boards, social services agencies, pharmacy boards, etc. The information below identifies the sections of the CJIS Security Policy most closely related to the NCJA's limited scope of interaction with CJI. 1. The following CJIS Security Policy sections comprise the minimum standard requirements in all situations: a. 3.2.9 — Local Agency Security Officer (LASO) b. 5.1.1.6 — Agency User Agreements c. 5.1.1.7 — Security and Management Control Outsourcing Standard* d. 5.1.3 — Secondary Dissemination e. 5.2.1.1 — Security Awareness Training f. 5.3 — Incident Response g. 5.4.6 — Audit Record Retention h. 5.8 — Media Protection i. 5.9.2 — Controlled Area j. 5.11 — Formal Audits" k. 5.12 — Personnel Security * ** * Note: Outsourcing Standard applies when contracting with channeling or outsourcing agency. * *Note: States shall periodically conduct audits of NCJAs. The FBI CJIS Division shall triennially conduct audits of a sampling of NCJAs. * ** Note: See the National Crime Prevention and Privacy Compact Council's Outsourcing Standard for Contractor background check requirements. 2. Agencies located within states having passed legislation authorizing or requiring civil fingerprint -based background checks for personnel with access to criminal history record information for the purposes of licensing or employment shall follow the guidance in section 5.12. Agencies located within states without this authorization or 2/09/2011 1-1 C A S D- ITS - DOC- 08140 -5.0 �lCd) requirement are exempted from the fingerprint -based background check requirement until such time as appropriate legislation has been written into law. 3. When receiving CJI via encrypted e-mail or downloading from a web -site and subsequently storing the information as an encrypted electronic image Authorized Recipients should, in addition to all of the aforementioned sections, focus on compliance with policy sections: a. 5.5.2.4 — Access Control — Encryption b. 5.6 — Identification and Authentication (web -site access) c. 5.10.1.2 — System and Communications Protection — Encryption 4. When receiving CJI via e -mail or retrieving CJI from a website and subsequently storing the CJI electronically, Authorized Recipients should, in addition to l.a —l.k above, focus on compliance with policy sections: a. 5.5.2.4 — Access Control — Encryption b. 5.6 — Identification and Authentication c. 5.7 — Configuration Management d. 5.10 —System and Communications Protection and Information Integrity 5. If an NCJA further disseminates CJI via encrypted e -mail to Authorized Recipients, located outside the NCJA's designated controlled area, the NCJA should, in addition to l.a -3.c above, focus on compliance with policy sections: a. 5.7 — Configuration Management b. 5.10 —System and Communications Protection and Information Integrity 6. If an NCJA further disseminates CJI via secure website posting to Authorized Recipients, located outside the NCJA's designated controlled area, the NCJA should focus on all sections outlined in l .a -4.d above. 2/09/2011 CJIS D- ITS -DOC- 08140 -5.0 1 -2 11(d) APPENDIX K CRIMINAL JUSTICE AGENCY SUPPLEMENTAL GUIDANCE This supplemental guidance is directed toward those criminal justice agencies that have historically not been subject to audit under the CJIS Security Policy guidelines. The target audience typically gains access to CJI via fax, hardcopy distribution or voice calls; does not have the capability to query state or national databases for criminal justice information; and, may have been assigned an originating agency identifier (ORI) but is dependent on other agencies to run queries on their behalf. This guidance does not apply to criminal justice agencies covered under an active information exchange agreement with another agency for direct or indirect connectivity to the state CSA — in other words those agencies traditionally identified as "terminal agencies ". The information below identifies the sections of the CJIS Security Policy the target audience will most often encounter: 1. The following CJIS Security Policy sections comprise the minimum standard requirements in all situations: a. 3.2.9 — Local Agency Security Officer (LASO) b. 5.1.1.3 — Criminal Justice Agency User Agreements c. 5.1.3 — Secondary Dissemination d. 5.2.1.1 — Security Awareness Training e. 5.3 — Incident Response f. 5.4.6 — Audit Record Retention g. 5.8 — Media Protection h. 5.9 — Physical Security i. 5.10.2 — Facsimile Transmission of CJI j. 5.11 — Formal Audits* k. 5.12 — Personnel Security *Note: States shall triennially audit all CJAs 2. When receiving CJI via encrypted e-mail or downloading from a web -site and subsequently storing the information as an encrypted electronic image Authorized Recipients should, in addition to all of the aforementioned sections, focus on complying with policy sections: a. 5.5.2.4 — Access Control — Encryption b. 5.6 — Identification and Authentication c. 5.10.1.2 — System and Communications Protection — Encryption 2/09/2011 K -1 C ISD- ITS -DOC- 08140 -5.0 l lcd ) 3. When receiving CH via e -mail or retrieving CJI from a website and subsequently storing the CJI electronically, Authorized Recipients should, in addition to l.a —l.k above, focus on complying with policy sections: a. 5.5.2.4 — Access Control — Encryption b. 5.6 — Identification and Authentication c. 5.7 — Configuration Management d. 5.10— System and Communications Protection and Information Integrity 2/09/2011 K 2 C11SD- ITS -DOC- 08140 -5.0 `k�d 146B.01, 2011 Minnesota Statutes 2011 Minnesota Statutes 146B.01 DEFINITIONS. Page 1 of 3 Subdivision 1. Scope. The terms defined in this section apply to this chapter. Subd. 2. Aftercare. "Aftercare" means written instructions given to a client, specific to the procedure rendered, on caring for the body art and surrounding area. These instructions must include information on when to seek medical treatment. Subd. 3. Antiseptic. "Antiseptic" means an agent that destroys disease - causing microorganisms on human skin or mucosa. Subd. 4. Body art. "Body art" or "body art procedures" means physical body adornment using, but not limited to, tattooing and body piercing. Body art does not include practices and procedures that are performed by a licensed medical or dental professional if the procedure is within the professional's scope of practice. Subd. 5. Body art establishment. "Body art establishment" or "establishment" means any structure or venue, whether permanent, temporary, or mobile, where body art is performed. Mobile establishments include vehicle- mounted units, either motorized or trailered, and readily moveable without dissembling and where body art procedures are regularly performed in more than one geographic location. Subd. 6. Body piercing. "Body piercing" means the penetration or puncturing of the skin by any method for the purpose of inserting jewelry or other objects in or through the body. Body piercing also includes branding, scarification, suspension, subdermal implantation, microdermal, and tongue bifurcation. Body piercing does not include the piercing of the outer perimeter or the lobe of the ear using a presterilized single -use stud - and -clasp ear - piercing system. Subd. 7. Branding. "Branding" means an indelible mark burned into the skin using instruments of thermal cautery, radio hyfrecation, and strike branding. Subd. 8. Commissioner. "Commissioner" means the commissioner of health. Subd. 9. Contaminated waste. "Contaminated waste" means any liquid or semiliquid blood or other potentially infectious materials; contaminated items that would release blood or other potentially infectious materials in a liquid or semiliquid state if compressed; items that are caked with dried blood or other potentially infectious materials and are capable of releasing these materials during handling; and sharps and any wastes containing blood and other potentially infectious materials, as defined in Code of Federal Regulations, title 29, section 1910.1030, known as "Occupational Exposure to Bloodborne Pathogens." Subd. 10. Department. "Department" means the Department of Health. Subd. 11. Equipment. "Equipment" means all machinery, including fixtures, containers, vessels, tools, devices, implements, furniture, display and storage areas, sinks, and all other apparatus and appurtenances used in the operation of a body art establishment. Subd. 12. Guest artist. "Guest artist" means an individual who performs body art procedures according to the requirements under section 146B.04. Subd. 13. Hand sink. "Hand sink" means a sink equipped with potable hot and cold water held under pressure, used for washing hands, wrists, arms, or other portions of the body. 1 I Ce) https: / /www. revisor .mn.gov /statutes / ?id= 146B.01 6/28/2012 14613.01, 2011 Minnesota Statutes Page 3 of 3 Subd. 30. Tattooing. "Tattooing" means any method of placing indelible ink or other pigments into or under the skin or mucosa with needles or any other instruments used to puncture the skin, resulting in permanent coloration of the skin or mucosa. Tattooing also includes micropigmentation and cosmetic tattooing. Subd. 31. Technician. "Technician" or "body art technician" means any individual who is licensed under this chapter as a tattoo technician or as a body piercing technician or as both. Subd. 32. Temporary body art establishment. "Temporary body art establishment" means any place or premise operating at a fixed location where an operator performs body art procedures for no more than 21 days in conjunction with a single event or celebration. Subd. 33. Tongue bifurcation. "Tongue bifurcation" means the cutting of the tongue from the tip to the base, forking at the end. History: 2010 c 317 s 1 I I CO https: / /www. revisor .mn.gov /statutes / ?id= 146B.01 6/28/2012 146B.02, 2011 Minnesota Statutes Page 1 of 2 2011 Minnesota Statutes 146B.02 ESTABLISHMENT LICENSE PROCEDURES. Subdivision 1. General. Beginning January 1, 2011, no person acting individually or jointly with any other person may maintain, own, or operate a body art establishment in the state without an establishment license issued by the commissioner in accordance with this chapter, except as permitted under subdivision 8 or 9. Subd. 2. Requirements. (a) Each application for an initial establishment license and for renewal must be submitted to the commissioner on a form provided by the commissioner accompanied with the applicable fee required under section 146B.10. The application must contain: (1) the name(s) of the owner(s) and operator(s) of the establishment; (2) the location of the establishment; (3) verification of compliance with all applicable local and state codes; (4) a description of the general nature of the business; and (5) any other relevant information deemed necessary by the commissioner. (b) The commissioner shall issue a provisional establishment license effective until the commissioner determines after inspection that the applicant has met the requirements of this chapter. Upon approval, the commissioner shall issue a body art establishment license effective for three years. Subd. 3. Inspection. (a) Within the period of the provisional establishment license, and thereafter at least one time during each three -year licensure period, the commissioner shall conduct an inspection of the body art establishment and a review of any records necessary to ensure that the standards required under this chapter are met. (b) The commissioner shall have the authority to enter a premises to make an inspection. Refusal to permit an inspection constitutes valid grounds for licensure denial or revocation. (c) If the establishment seeking licensure is new construction or if a licensed establishment is remodeling, the establishment must meet all local building and zoning codes. Subd. 4. Location restricted. No person may perform a body art procedure at any location other than a body art establishment licensed under this chapter except as permitted under subdivisions 8 and 9. Subd. 5. Transfer and display of license. A body art establishment license must be issued to a specific person and location and is not transferable. A license must be prominently displayed in a public area of the establishment. Subd. 6. Establishment information. The following information must be kept on file for three years on the premises of the establishment and must be made available for inspection upon request by the commissioner: (1) a description of all body art procedures performed by the establishment; (2) copies of the spore tests conducted on each sterilizer; and https://www.revisor.mn.gov/statutes/?id=146B.02 Ce) 6/28/2012 14613.02, 2011 Minnesota Statutes Page 2 of 2 (3) the following information for each technician or guest artist employed or performing body art procedures in the establishment: (i) name; (ii) home address; (iii) home telephone number; (iv) date of birth; (v) copy of an identification photo; and (vi) license number or guest artist license number. Subd. 7. Establishments located in a private residence. If the body art establishment is located within a private residence, the space where the body art procedures are performed must: (1) be completely partitioned off, (2) be exclusively used for body art procedures, except for licensed practices under chapter 155A which must be performed in compliance with the health and safety standards in this chapter; (3) be separate from the residential living, eating, and bathroom areas; (4) have a separate and secure entrance accessible without entering the residential living, eating, and bathroom areas; (5) meet the standards of this chapter; and (6) be made available for inspection upon the request of the commissioner. Subd. 8. Temporary events permit. (a) An owner or operator of a temporary body art establishment shall submit an application for a temporary events permit to the commissioner at least 14 days before the start of the event. The application must include the specific days and hours of operation. The owner or operator shall comply with the requirements of this chapter. (b) The temporary events permit must be prominently displayed in a public area at the location. (c) The temporary events permit, if approved, is valid for the specified dates and hours listed on the application. No temporary events permit shall be issued for longer than a 21 -day period, and may not be extended. Subd. 9. Exception. (a) Any body art establishment located within a county or municipal jurisdiction that has enacted an ordinance that establishes licensure for body art establishments operating within the jurisdiction shall be exempt from this chapter if the provisions of the ordinance meet or exceed the provisions of this chapter. Any county or municipal jurisdiction that maintains an ordinance that meets this exception may limit the types of body art procedures that may be performed in body art establishments located within its jurisdiction. (b) Any individual performing body art procedures in an establishment that meets an exception under this subdivision must be licensed as a body art technician under this chapter. History: 2010 c 317 s 2 10 https: / /www. revisor .mn.gov /statutes / ?id= 146B.02 6/28/2012 14613.03, 2011 Minnesota Statutes 2011 Minnesota Statutes 146B.03 LICENSURE FOR BODY ART TECHNICIANS. Page 1 of 3 Subdivision 1. Licensure required. (a) Effective January 1, 2011, no individual may perform tattooing unless the individual holds a valid tattoo technician license issued by the commissioner under this chapter, except as provided in subdivision 3. (b) Effective January 1, 2011, no individual may perform body piercing unless the individual holds a valid body piercing technician license issued by the commissioner under this chapter, except as provided in subdivision 3. (c) If an individual performs both tattooing and body piercing, the individual must hold a valid dual body art technician license. Subd. 2. Designation. (a) No individual may use the title of "tattooist," "tattoo artist," "tattoo technician," "body art practitioner," "body art technician," or other letters, words, or titles in connection with that individual's name which in any way represents that the individual is engaged in the practice of tattooing or authorized to do so, unless the individual is licensed and authorized to perform tattooing under this chapter. (b) No individual may use the title "body piercer," "body piercing artist," "body art practitioner," "body art technician," or other letters, words, or titles in connection with that individual's name which in any way represents that the individual is engaged in the practice of body piercing or authorized to do so, unless the individual is licensed and authorized to perform body piercing under this chapter. (c) Any representation made to the public by a licensed technician must specify the types of body art procedures the technician is licensed to perform. Subd. 3. Exceptions. (a) The following individuals may perform body art procedures within the scope of their practice without a technician's license: (1) a physician licensed under chapter 147; (2) a nurse licensed under sections 148.171 to 148.285; (3) a chiropractor licensed under chapter 148; (4) an acupuncturist licensed under chapter 14713; (5) a physician's assistant licensed under chapter 147A; or (6) a dental professional licensed under chapter 150A. (b) A guest artist under section 14613.04 may perform body art procedures in accordance with the requirements of section 14613.04. Subd. 4. Licensure requirements. An applicant for licensure under this section shall submit to the commissioner on a form provided by the commissioner: (1) proof that the applicant is over the age of 18; (2) the type of license the applicant is applying for; (3) all fees required under section 14613.10; https://www.revisor.mn.gov/statutes/?id=146B.03 Ii(G) 6/28/2012 14613.03, 2011 Minnesota Statutes Page 2 of 3 (4) proof of completing a minimum of 200 hours of supervised experience within each area for which the applicant is seeking a license, and must include an affidavit from the supervising licensed technician; (5) proof of having satisfactorily completed coursework within the year preceding application and approved by the commissioner on bloodborne pathogens, the prevention of disease transmission, infection control, and aseptic technique. Courses to be considered for approval by the commissioner may include, but are not limited to, those administered by one of the following: (i) the American Red Cross; (ii) United States Occupational Safety and Health Administration (OSHA); or (iii) the Alliance of Professional Tattooists; and (6) any other relevant information requested by the commissioner. Subd. 5. Action on licensure applications. (a) The commissioner shall notify the applicant in writing of the action taken on the application. If the application is approved, the commissioner shall issue a tattoo technician license, a body piercing technician license, or a dual body art technician license. (b) If licensure is denied, the applicant must be notified of the determination and the grounds for it, and the applicant may request a hearing under chapter 14 on the determination by filing a written statement with the commissioner within 30 days after receipt of the notice of denial. After the hearing, the commissioner shall notify the applicant in writing of the decision. Subd. 6. Licensure term; renewal. (a) A technician's license is valid for two years from the date of issuance and may be renewed upon payment of the renewal fee established under section 146B.10. (b) At renewal, a licensee must submit proof of continuing education approved by the commissioner in the areas identified in subdivision 4, clause (5). Subd. 7. Temporary licensure. (a) The commissioner may issue a temporary license to an applicant who submits to the commissioner on a form provided by the commissioner: (1) proof that the applicant is over the age of 18; (2) all fees required under section 148B.10; and (3) a letter from a licensed technician who has agreed to provide the supervision to meet the supervised experience requirement under subdivision 4, clause (4). (b) Upon completion of the required supervised experience, the temporary licensee shall submit documentation of satisfactorily completing the requirements under subdivision 4, clauses (3) and (4), and the applicable fee under section 146B.10. The commissioner shall issue a new license in accordance with subdivision 4. (c) A temporary license issued under this subdivision is valid for one year and may be renewed for one additional year. Subd. 8. License by reciprocity. The commissioner shall issue a technician's license to a person who holds a current license, certification, or registration from another state if the commissioner https://www.revisor.mn.gov/statutes/?id=146B.03 o (e) 6/28/2012 14613.03, 2011 Minnesota Statutes Page 3 of 3 determines that the standards for licensure, certification, or registration in the other jurisdiction meet or exceed the requirements for licensure stated in this chapter and a letter is received from that jurisdiction stating that the applicant is in good standing. Subd. 9. Transfer and display of license. A license issued under this section is not transferable to another individual. A valid license must be displayed at the establishment site and available to the public upon request. Subd. 10. Transition period. Until January 1, 2012, the supervised experience requirement under subdivision 4, clause (4), shall be waived by the commissioner if the applicant submits to the commissioner evidence satisfactory to the commissioner that: (1) the applicant has performed at least 2,080 hours within the last five years in the body art area in which the applicant is seeking licensure; or (2) the applicant completed more than 1,040 hours but less than 2,080 hours within the last five years in the body art area in which the applicant is seeking licensure and has successfully completed at least six hours of coursework provided by one of the following entities: Alliance of Professional Tattooists, Association of Professional Piercers, or Compliance Solutions International. History: 2010 c 317 s 3; 2011 c 110 art 2 s 1,2 https: / /www. revisor .mn.gov /statutes / ?id= 146B.03 ��(O 6/28/2012 146B.04, 2011 Minnesota Statutes 2011 Minnesota Statutes 146B.04 TEMPORARY LICENSURE FOR GUEST ARTISTS. Page 1 of 1 Subdivision 1. General. Before an individual may work as a guest artist, the commissioner shall issue a temporary license to the guest artist. The guest artist shall submit an application to the commissioner on a form provided by the commissioner. The form must include: (1) the name, home address, and date of birth of the guest artist; (2) the name of the licensed technician sponsoring the guest artist; (3) proof of having satisfactorily completed coursework within the year preceding application and approved by the commissioner on bloodborne pathogens, the prevention of disease transmission, infection control, and aseptic technique; (4) the starting and anticipated completion dates the guest artist will be working; and (5) a copy of any current body art credential or licensure issued by another local or state jurisdiction. Subd. 2. Guest artists. A guest artist may not conduct body art procedures for more than 30 days per calendar year. If the guest artist exceeds this time period, the guest artist must apply for a technician's license under section 14613.03. History: 2010 c 317 s 4; 2011 c 110 art 2 s 3 https: / /www. revisor .mn.gov /statutes / 9*id= 146B.04 t(e) 6/28/2012 14613.05, 2011 Minnesota Statutes 2011 Minnesota Statutes Page 1 of 1 146B.05 GROUNDS FOR DENIAL OF AN ESTABLISHMENT LICENSE OR EMERGENCY CLOSURE. Subdivision 1. General. If any of the following conditions exist, the owner or operator of a licensed establishment may be ordered by the commissioner to discontinue all operations of a licensed body art establishment or the commissioner may refuse to grant or renew, suspend, or revoke licensure: (1) evidence of a sewage backup in an area of the body art establishment where body art activities are conducted; (2) lack of potable, plumbed, or hot or cold water to the extent that handwashing or toilet facilities are not operational; (3) lack of electricity or gas service to the extent that handwashing, lighting, or toilet facilities are not operational; (4) significant damage to the body art establishment due to tornado, fire, flood, or another disaster; (5) evidence of an infestation of rodents or other vermin; (6) evidence of any individual performing a body art procedure without a license as required under this chapter; (7) evidence of existence of a public health nuisance; (8) use of instruments or jewelry that are not sterile; (9) failure to maintain required records; (10) failure to use gloves as required; (11) failure to properly dispose of sharps, blood or body fluids, or items contaminated by blood or body fluids; (12) failure to properly report complaints of potential bloodborne pathogen transmission to the commissioner; or (13) evidence of a positive spore test on the sterilizer if there is no other working sterilizer with a negative spore test in the establishment. Subd. 2. Licensure or reopening requirements. Prior to license approval or renewal or the reopening of the establishment, the establishment shall submit to the commissioner satisfactory proof that the problem condition causing the need for the licensure action or emergency closure has been corrected or removed by the operator of the establishment. A body art establishment may not reopen without the written approval of the commissioner and a valid establishment license. History: 2010 c 317 s 5 1k(t) https: / /www. revisor .mn.gov /statutes / ?id= 146B.05 6/28/2012 14613.06, 2011 Minnesota Statutes ->n-ii Minnesota Statutes 146B.06 HEALTH AND SAFETY STANDARDS. Page 1 of 3 Subdivision 1. Establishment standards. (a) The body art establishment must meet the health and safety standards in this subdivision before a licensed technician may conduct body art procedures at the establishment. (b) The procedure area must be separated from any other area that may cause potential contamination of work surfaces. (c) For clients requesting privacy, at a minimum, a divider, curtain, or partition must be provided to separate multiple procedure areas. (d) All procedure surfaces must be smooth, nonabsorbent, and easily cleanable. (e) The establishment must have an accessible hand sink equipped with: (1) liquid hand soap; (2) single -use paper towels or a mechanical hand drier or blower; and (3) a nonporous washable garbage receptacle with a foot - operated lid or with no lid and a removable liner. (t) All ceilings in the body art establishment must be in good condition. (g) All walls and floors must be free of open holes or cracks and be washable and no carpeting may be in areas used for body art procedures unless the carpeting is entirely covered with a rigid, nonporous, easily cleanable material. (h) All facilities within the establishment must be maintained in a clean and sanitary condition and in good working order. (i) No animals may be present during a body art procedure, unless the animal is a service animal. Subd. 2. Standards for equipment, instruments, and supplies. (a) Equipment, instruments, and supplies must comply with the health and safety standards in this subdivision before a licensed technician may conduct body art procedures. (b) Jewelry used as part of a body art procedure must be made of surgical implant -grade stainless steel, solid 14 -karat or 18 -karat white or yellow gold, niobium, titanium, or platinum, or a dense low- porosity plastic. Use of jewelry that is constructed of wood, bone, or other porous material is prohibited. (c) Jewelry used as part of a body art procedure must be free of nicks, scratches, or irregular surfaces and must be properly sterilized before use. (d) Reusable instruments must be thoroughly washed to remove all organic matter, rinsed, and sterilized before and after use. (e) Needles must be single -use needles and sterilized before use. (f) Sterilization must be conducted using steam heat or chemical vapor. at) https: / /www.revisor.mn.gov /statutes / ?id= 146B.06 6/28/2012 14613.06, 2011 Minnesota Statutes Page 2 of 3 (g) All sterilization units must be operated according to the manufacturer's specifications. (h) At least once a month, but not to exceed 30 days between tests, a spore test must be conducted on each sterilizer used to ensure proper functioning. If a positive spore test result is received, the sterilizer at issue may not be used until a negative result is obtained. (i) All inks and other pigments used in a body art procedure must be specifically manufactured for tattoo procedures. 0) Immediately before applying a tattoo, the ink needed must be transferred from the ink bottle and placed into single -use paper or plastic cups. Upon completion of the tattoo, the single - use cups and their contents must be discarded. (k) All tables, chairs, furniture, or other procedure surfaces that may be exposed to blood or body fluids during the body art procedure must be cleanable and must be sanitized after each client with a liquid chemical germicide. (1) Single -use towels or wipes must be provided to the client. These towels must be dispensed in a manner that precludes contamination and disposed of in a nonporous washable garbage receptacle with a foot - operated lid or with no lid and a removal liner. (m) All bandages and surgical dressings used must be sterile or bulk - packaged clean and stored in a clean, closed nonporous container. (n) All equipment and instruments must be maintained in good working order and in a clean and sanitary condition. (o) All instruments and supplies must be stored clean and dry in covered containers. (p) Single -use disposable barriers or a chemical germicide must be used on all equipment that cannot be sterilized as part of the procedure as required under this section including, but not limited to, spray bottles, procedure light fixture handles, and tattoo machines. Subd. 3. Standards for body art procedures. (a) All body art procedures must comply with the health and safety standards in this subdivision. (b) The skin area subject to a body art procedure must be thoroughly cleaned with soap and water, rinsed thoroughly, and swabbed with an antiseptic solution. Only single -use towels or wipes may be used to clean the skin. (c) Whenever it is necessary to shave the skin, a new disposable razor or a stainless steel straight edge must be used. The disposable razor must be discarded after use. The stainless steel straight edge must be thoroughly washed to remove all organic matter and sterilized before use on another client. (d) No body art procedure may be performed on any area of the skin where there is an evident infection, irritation, or open wound. (e) Single -use nonabsorbent gloves of adequate size and quality to preserve dexterity must be used for touching clients, for handling sterile instruments, or for handling blood or body fluids. Nonlatex gloves must be used with clients or employees who request them or when petroleum products are used. Gloves must be changed if a glove becomes damaged or comes in contact with any nonclean surface or objects or with a third person. At a minimum, gloves must be discarded ,0 https: / /www. revisor .mn.gov /statutes / ?id= 146B.06 6/28/2012 14613.06, 2011 Minnesota Statutes Page 3 of 3 after the completion of a procedure on a client. Upon leaving the procedure area, hands and wrists must be washed before putting on a clean pair of gloves and after removing a pair of gloves. Subd. 4. Standards for technicians. (a) Technicians must comply with the health and safety standards in this subdivision. (b) Technicians must scrub their hands and wrists thoroughly before and after performing a body art procedure, after contact with the client receiving the procedure, and after contact with potentially contaminated materials. (c) A technician may not smoke, eat, or drink while performing body art procedures. (d) A technician may not perform a body art procedure if the technician has any open sores visible or in a location that may come in contact with the client. Subd. 5. Contamination standards. (a) Infectious waste and sharps must be managed according to sections 116.76 to 116.83 and must be disposed of by an approved infectious waste hauler at a site permitted to accept the waste, according to Minnesota Rules, parts 7035.9100 to 7035.9150. Sharps ready for disposal must be disposed of in an approved sharps container. (b) Contaminated waste that may release liquid blood or body fluids when compressed or that may release dried blood or body fluids when handled must be placed in an approved red bag that is marked with the international biohazard symbol. (c) Contaminated waste that does not release liquid blood or body fluids when compressed or handled may be placed in a covered receptacle and disposed of through normal approved disposal methods. (d) Storage of contaminated waste on site must not exceed the overflow level of any container. History: 2010 c 317 s 6; 2011 c 110 art 2 s 4 �qt) https: / /www. revisor .mn.gov /statutes / ?id= 146B.06 6/28/2012 146B.07, 2011 Minnesota Statutes Page 1 of 3 2oii Minnesota Statutes 146B.07 PROFESSIONAL STANDARDS. Subdivision 1. Proof of age. (a) A technician shall require proof of age before performing any body art procedure on a client. Proof of age must be established by one of the following methods: (1) a valid driver's license or identification card issued by the state of Minnesota or another state that includes a photograph and date of birth of the individual; (2) a valid military identification card issued by the United States Department of Defense; (3) a valid passport; (4) a resident alien card; or (5) a tribal identification card. (b) Before performing any body art procedure, the technician must provide the client with a disclosure and authorization form that indicates whether the client has: (1) diabetes; (2) a history of hemophilia; (3) a history of skin diseases, skin lesions, or skin sensitivities to soap or disinfectants; (4) a history of epilepsy, seizures, fainting, or narcolepsy; (5) any condition that requires the client to take medications such as anticoagulants that thin the blood or interfere with blood clotting; or (6) any other information that would aid the technician in the body art procedure process evaluation. (c) The form must include a statement informing the client that the technician shall not perform a body art procedure if the client fails to complete or sign the disclosure and authorization form, and the technician may decline to perform a body art procedure if the client has any identified health conditions. (d) The technician shall ask the client to sign and date the disclosure and authorization form confirming that the information listed on the form is accurate. (e) Before performing any body art procedure, the technician shall offer and make available to the client personal draping, as appropriate. Subd. 2. Parent or legal guardian consent; prohibitions. (a) A technician may perform body piercings on an individual under the age of 18 if the individual's parent or legal guardian is present and a consent form and the authorization form under subdivision 1, paragraph (b) is signed by the parent or legal guardian in the presence of the technician, and the piercing is not prohibited under paragraph (c). (b) No technician shall tattoo any individual under the age of 18 regardless of parental or guardian consent. ,4) https: / /www. revisor .mn.gov /statutes / 9*id= 146B.07 6/28/2012 146B.07, 2011 Minnesota Statutes Page 2 of 3 (c) No nipple or genital piercing, branding, scarification, suspension, subdermal implantation, microdermal, or tongue bifurcation shall be performed by any technician on any individual under the age of 18 regardless of parental or guardian consent. (d) No technician shall perform body art procedures on any individual who appears to be under the influence of alcohol, controlled substances as defined in section 152.01, subdivision 4, or hazardous substances as defined in rules adopted under chapter 182. (e) No technician shall perform body art procedures while under the influence of alcohol, controlled substances as defined under section 152.01, subdivision 4, or hazardous substances as defined in the rules adopted under chapter 182. (f) No technician shall administer anesthetic injections or other medications. Subd. 3. Informed consent. Before performing a body art procedure, the technician shall obtain from the client a signed and dated informed consent form. The consent form must disclose: (1) that a tattoo is considered permanent and may only be removed with a surgical procedure and that any effective removal may leave scarring; or (2) that body piercing may leave scarring. Subd. 4. Client record maintenance. For each client, the body art establishment operator shall maintain proper records of each procedure. The records of the procedure must be kept for three years and must be available for inspection by the commissioner upon request. The record must include the following: (1) the date of the procedure; (2) the information on the required picture identification showing the name, age, and current address of the client; (3) a copy of the authorization form signed and dated by the client required under subdivision 1, paragraph (b); (4) a description of the body art procedure performed; (5) the name and license number of the technician performing the procedure; (6) a copy of the consent form required under subdivision 3; and (7) if the client is under the age of 18 years, a copy of the consent form signed by the parent or legal guardian as required under subdivision 2. Subd. 5. Aftercare. A technician shall provide each client with verbal and written instructions for the care of the tattooed or pierced site upon the completion of the procedure. The written instructions must advise the client to consult a health care professional at the first sign of infection. Subd. 6. State and local public health regulations. An operator and technician shall comply with all applicable state, county, and municipal requirements regarding public health. Subd. 7. Notification. The operator of the body art establishment shall immediately notify the commissioner and local health authority of any reports they receive of a potential bloodborne pathogen transmission. ob) https: / /www. revisor .mn.gov /statutes / ?id= 146B.07 6/28/2012 146B.07, 2011 Minnesota Statutes Page 3 of 3 History: 2010 c 317 s 7 1 \0 https: / /www.revisor.mn.gov /statutes / ?id= 146B.07 6/28/2012 14613.08, 2011 Minnesota Statutes 2oii Minnesota Statutes 146B.08 INVESTIGATION AND GROUNDS FOR DISCIPLINARY ACTION. Page 1 of 2 Subdivision 1. Investigations of complaints. The commissioner may initiate an investigation upon receiving a signed complaint or other signed written communication that alleges or implies that an individual or establishment has violated this chapter. According to section 214.13, subdivision 6, in the receipt, investigation, and hearing of a complaint that alleges or implies an individual or establishment has violated this chapter, the commissioner shall follow the procedures in section 214.10. Subd. 2. Rights of applicants and licensees. The rights of an applicant denied licensure are stated in section 14613.03, subdivision 5. A licensee may not be subjected to disciplinary action under this section without first having an opportunity for a contested case hearing under chapter 14. Subd. 3. Grounds for disciplinary action. The commissioner may take any of the disciplinary actions listed in subdivision 4 on proof that a technician or an operator of an establishment has: (1) intentionally submitted false or misleading information to the commissioner; (2) failed, within 30 days, to provide information in response to a written request by the commissioner; (3) violated any provision of this chapter; (4) failed to perform services with reasonable judgment, skill, or safety due to the use of alcohol or drugs, or other physical or mental impairment; (5) aided or abetted another person in violating any provision of this chapter; (6) been or is being disciplined by another jurisdiction, if any of the grounds for the discipline are the same or substantially equivalent to those under this chapter; (7) not cooperated with the commissioner in an investigation conducted according to subdivision 1; (8) advertised in a manner that is false or misleading; (9) engaged in conduct likely to deceive, defraud, or harm the public; (10) demonstrated a willful or careless disregard for the health, welfare, or safety of a client; (11) obtained money, property, or services from a client through the use of undue influence, harassment, duress, deception, or fraud; (12) failed to refer a client to a health care professional for medical evaluation or care when appropriate; or (13) been convicted of a felony -level criminal sexual conduct offense. "Conviction" means a plea of guilty, a verdict of guilty by a jury, or a finding of guilty by a court. Subd. 4. Disciplinary actions. If the commissioner finds that a technician or an operator of an establishment should be disciplined according to subdivision 3, the commissioner may take any one or more of the following actions: \kce) https: / /www.revisor.mn.gov /statutes / ?id= 146B.08 6/28/2012 14613.08, 2011 Minnesota Statutes Page 2 of 2 (1) refuse to grant or renew licensure; (2) suspend licensure for a period not exceeding one year; (3) revoke licensure; (4) take any reasonable lesser action against an individual upon proof that the individual has violated this chapter; or (5) impose, for each violation, a civil penalty not exceeding $10,000 that deprives the licensee of any economic advantage gained by the violation and that reimburses the department for costs of the investigation and proceedings resulting in disciplinary action, including the amount paid for services of the Office of Administrative Hearings, the amount paid for services of the Office of the Attorney General, attorney fees, court reporters, witnesses, reproduction of records, department staff time, and expenses incurred by department staff. Subd. 5. Consequences of disciplinary actions. Upon the suspension or revocation of licensure, the technician or establishment shall cease to: (1) perform body art procedures; (2) use titles protected under this chapter; and (3) represent to the public that the technician or establishment is licensed by the commissioner. Subd. 6. Reinstatement requirements after disciplinary action. A technician who has had licensure suspended may petition on forms provided by the commissioner for reinstatement following the period of suspension specified by the commissioner. The requirements of section 14613.03 for renewing licensure must be met before licensure may be reinstated. History: 2010 c 317 s 8 https: / /www. revisor .mn.gov /statutes / ?id= 146B.08 6/28/2012 14613.09, 2011 Minnesota Statutes eon Minnesota Statutes 146B.09 COUNTY OR MUNICIPAL REGULATION. Page 1 of 1 Nothing in this chapter preempts or supersedes any county or municipal ordinance relating to land use, building and construction requirements, nuisance control, or the licensing of commercial enterprises in general. History: 2010 c 317 s 9 �0 https: / /www. revisor .mn.gov /statutes / ?id= 146B.09 6/28/2012 146B.10, 2011 Minnesota Statutes Page 1 of 1 2011 Minnesota Statutes 14613.10 FEES. Subdivision 1. Licensing fees. (a) The fee for the initial technician licensure and biennial licensure renewal is $100. (b) The fee for temporary technician licensure is $100. (c) The fee for the temporary guest artist license is $50. (d) The fee for a dual body art technician license is $100. (e) The fee for a provisional establishment license is $1,000. (f) The fee for an initial establishment license and the three -year license renewal period required in section 146B.02, subdivision 2, paragraph (b), is $1,000. (g) The fee for a temporary body art establishment permit is $75. (h) The commissioner shall prorate the initial two -year technician license fee and the initial three -year body art establishment license fee based on the number of months in the initial licensure period. Subd. 2. Penalty for late renewals. The penalty fee for late submission for renewal applications is $75. Subd. 3. Deposit. Fees collected by the commissioner under this section must be deposited in the state government special revenue fund. History: 2010 c 317 s 10; 2011 c 110 art 2 s 5 �4) https: / /www. revisor .mn.gov /statutes / ?id= 146B.10 6/28/2012 mtormatron for consumers Q: Who can be tattooed? A: Anyone over the age of 18. Effective July 1, 2010, tattooing of minors is prohibited, regardless of parental consent. Q: May a minor be tattooed if they have their parents' consent or presence? A: No. Tattooing of minors is now prohibited by law, regardless of parental consent. Q: Can a minor who already had a tattoo have the tattoo "touched up "? A: No. Any tattooing of minors is now prohibited by law, even if they have a pre- existing tattoo. Q: Can a minor be pierced if they have their parents' consent? A: As of July 1, 2010, a minor may get a piercing, but will need parental /guardian consent and their parent/guardian must be present during the procedure. A minor cannot get the following, even with consent: nipple piercing, genital piercing, branding, scarification, suspension, subdermal implantation, microdermal, �or tongue bifurcation. continued on back J Q: Can an infant still have their ears pierced? A: Yes, with parental consent. Q: Do jewelry stores need to have licensed piercing technicians to pierce ears? A: No. Body piercing does not include the piercing of the outer perimeter or the lobe of the ear using a presterilized single - use stud - and -clasp ear - piercing system. Q: What about permanent makeup? A: Permanent makeup is a form of tattooing, and is subject to the body art regulation. As of January 1, 2011, permanent makeup must be performed by a MDH- licensed body art technician in a licensed body art establishment. Q: What problems should MDH be contacted about? A: Health and safety concerns such as: infections, unsanitary practices, unsanitary premises, tattooing of a minor, and piercing of a minor without parental consent. As of January 1, 2011, MDH should be notified of unlicensed practice. Q: How do I know if a technician and/or establishment is licensed? A: Look for posted technician and establishment licenses; call MDH at 651 - 201 -3731; and /or visit our website www.health. state.mn.us and enter "body arC in the search box, where a list of licensed technicians and establishments All be posted. Q: Are temporary events legal, and can visiting technicians practice legally? A: After January 1, 2011, if licensed by MDH, temporary events and /or visiting guest technicians are legal. Look for posted licenses. MDH Background Information for technicians Information for establishments The Minnesota Legislature passed a law during the 2010 session requiring the Minnesota Department of Health (MDH) to regulate tattoo and piercing professionals. This brochure provides helpful information for body art technicians, establishments and consumers. You can find the law (Minnesota Statutes, Chapter 146B) at https: / /www.revisor.mn.gov /laws / ?id= 317 &doctype = chapter &year= 2010 &type =0 Q: What is body art? A: Body art means physical body adornment using, but not limited to, tattooing and body piercing. Body art does not include practices and procedures that are performed by a licensed medical or dental professional if the procedure is within the professional's scope of practice. Q: What is tattooing? A: Tattooing means any method of placing indelible ink or other pigments into or under the skin or mucosa with needles or any other instruments used to puncture the skin, resulting in permanent coloration of the skin or mucosa. Tattooing also includes micropigmentation and cosmetic tattooing. Q: What is body piercing? A: Body piercing means the penetration or puncturing of the skin by any method for the purpose of inserting jewelry or other objects in or through the body. Body piercing also includes branding, scarification, suspension, subdermal implantation, microdermal, and tongue bifurcation. Body piercing does not include the piercing of the outer perimeter or the lobe of the ear using a presterilized single -use stud -and- I clasp ear - piercing system. Q: Who needs to be licensed? A: As of January 1, 2011, anyone who provides tattooing and/ or piercing services must be MDH licensed. Q: May a technician be licensed as both a tattooist and a piercer? A: Yes. A technician who provides both tattoo and piercing services may hold a dual license. Dual licensure requires the technician to meet loth sets of requirements. Q: What are the requirements to be a tattoo, piercing, or dual technician? A: You must be at least 18 years old, have proof you have at least 200 hours of supervised experience, and have proof you satisfactorily completed coursework on bloodborne pathogens, prevention of disease transmission, infection control, and aseptic technique. Q: Does MDH provide the required coursework for technicians? A: No. Training may be obtained from the American Red Cross, OSHA, the Alliance of Professional Tattooists; or other professional organizations. Q: Does the Minnesota Department of Health endorse the training offered by the certifying organizations in order to become a licensed body art technician? A: No. MDH does not endorse any educational program. Q: Where can a body an technician work? A: As of January 1, 2011, a body art technician can only perform work at a licensed body art establishment or an MDH licensed body an temporary event. Q: Do establishments need to be licensed? A: Yes. Starting January 1, 2011, all body art establishments must be licensed. If an establishment is licensed by a city or county agency, it may be exempt from the state requirement and must apply for a waiver. Q: Do all body art establishments need to be licensed by MDH? A: No. Body art establishments subject to city or county ordinances which meet or exceed MDH requirements do not have to have MDH licensure. For each establishment, owners /operators must complete and return either an application for MDH licensure or an application for exemption from MDH licensure. Q: What if an owner /operator has multiple establishments? A: If an owner /operator has more than one establishment, each establishment must be individually licensed, and a separate application submitted for each establishment. Q: What licenses need to be posted? A: The establishment license and each technician's license must be prominently displayed in a public area of the establishment. Q: Are establishments inspected? A: Yes. Body art establishment licensed by j MDH are inspected within the period of 111 the provisional establishment license, and then at least one time during each three -year licensure period. Unannounced inspections may occur at any time for any reason. Date: July 2010 To: Body Art Technicians and Establishment Owners /Operators From: Kyle Renell, Staff Attorney Health Occupations Program Subject: Licensure Requirement for Body Art Technicians and Establishments On May 13, 2010, legislation was signed into law and went into effect on July 1st. As of January 1, 2011, all body art establishments and technicians must be licensed in order to provide body art services in the State of Minnesota. Enclosed you will find a copy of the new law and the necessary application materials needed to begin the licensure process. You are receiving these materials because your business has been identified by MDH as a provider of body art services. If your body art establishment is currently licensed by a local or county agency, it may be exempt from the state licensure; however, you must request an exemption from MDH. Enclosed is an application form for exemption from the Minnesota Body Art Establishment License requirement. Once MDH receives your request for exemption, MDH staff will review the applicable laws in your jurisdiction. You will be notified in writing as to whether or not your exemption request has been approved. If you do not apply for an exemption, you must apply for a license using the establishment application enclosed. Each individual body art technician must be licensed by the state. Enclosed in this packet is one copy each of the Minnesota Body Art Technician License Application and the Temporary License Application for Body Art Technician. If you do not have at least 200 hours of experience, you should apply for a temporary license. Otherwise, complete the technician license application. You may make copies of these applications, or after July lst you may download them from: http• / /www health state mn us/ divs /hnsc/ hot)/tattoo/bodyartapi2lications.html NOTE: NO license is valid until approved by MDH— regardless of when an application is dated, submitted, or received. Please return all completed application materials along with the appropriate fees (a fee schedule is on the reverse of this page) to MDH at the address indicated on each application. If you have any questions about the application materials and /or process, please contact the Health Occupations Program, at 651- 201 -3770. General Information: (651) 201 -5000 • TDD /TTY: (651) 201 -5797 • Minnesota Relay Service: (800) 627 -3529 • w .health.state.mn.us For directions to any of the MDH locations, call (651) 201.5000 • An Equal Opportunity Employer \k�0 BODY ART FEE SCHEDULE: (Effective 07/01/10) Pursuant to Minnesota Statutes, section 14613, section 10, the appropriate fees must submitted with your application. Applications will not be processed without the fees. Technicians • Temporary technician license [effective for one (1) year]: $110* • Initial tattoo technician license [effective for two (2) years]: $110* • Initial piercing technician license [effective for two (2) years]: $110* ❑ Initial dual technician license [effective for two (2) years]: $110* ❑ Renewal of technician license [effective for two (2) years]: $110* ❑ Temporary guest artist license [effective for no more than 30 days]: $55* ❑ Penalty for late renewal: $75 Establishments: ❑ Application for Exemption from State Establishment License: No fee • Provisional establishment license +: $1,100* • Establishment license+ [effective for three (3) years]: $1,100* ❑ Temporary establishment permit [effective for no more than 21 days]: $75.00 ❑ Penalty for late renewal: $75 * The Minnesota Office of Enterprise Technology (OET) assesses a 10% surcharge of no less than $5 and no more than $150 on each business, commercial, professional or occupational license. The funds from this surcharge go to OET to establish an electronic licensing system for the state. The surcharge will be collected through June 30, 2015. See Laws of Minnesota, Chapter 101, Article 2, Section 59. +Provisional establishment licenses will expire when the establishment license is issued. During the provisional period, MDH will conduct an inspection. When MDH determines the establishment meets the license requirements, a regular establishment license will be issued at no additional fee. General Instructions: • All checks should be made payable to "Treasurer, State of Minnesota" • Checks must be enclosed with applications. If not, the application will be considered incomplete and will not be processed until complete applications and fees are received. Section Hutchinson, NIN Code of Ordinances CHAPTER 118: TATTOOING 118.01 Definition 118.02 License required 118.03 License application 118.04 License fee 118.05 License term 118.06 Tattooing of minors restricted 118.07 Health and sanitary requirements § 118.01 DEFINITION. For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning. TATTOOING. The marking of the skin of a person by insertion of permanent colors by introducing them through puncture of the skin. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) § 118.02 LICENSE REQUIRED. No person shall conduct any establishment where tattooing is done, nor engage in the act of tattooing, without being licensed under this chapter. No person shall engage in the practice of tattooing at any place other than the place or location named or described in the license granted by the city. No person shall be granted a license under this chapter who is not of good moral character and free from communicable disease. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) Penalty, see § 10.99 § 118.03 LICENSE APPLICATION. Any person desiring a license under this chapter shall file with the City Administrator, on a form provided by the city, a written application signed by the applicant and containing the name of the applicant, if an individual, the names of co- partners, if a partnership, and if a corporation, the names of the principal officers of the corporation, together with a brief American Legal Publishing Corp. Hutchinson, MN Code of Ordinances description of the place or location at which the business is to be conducted, along with other information routinely required by the City Administrator in connection with applications for business licenses. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) § 118.04 LICENSE FEE. The annual fee for a license to engage in the practice of tattooing shall be set by ordinance of the City Administrator. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) § 118.05 LICENSE TERM. All licenses issued under this chapter shall expire on December 31 of the licensing year. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) § 118.06 TATTOOING OF MINORS RESTRICTED. No person shall tattoo any person under the age of 18 except in the presence of, and with the written permission of, a parent or legal guardian of that person under 18. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) Penalty, see § 10.99 § 118.07 HEALTH AND SANITARY REQUIREMENTS. No person shall engage in the practice of tattooing at any place within the city without complying with the following regulations. (A) Every place where tattooing is done shall be equipped with a sewer and water connected toilet and hand basin or sink. The hand basin or sink shall be supplied with hot and cold running water under pressure, and shall be maintained in good working order at all times; it shall be kept in a clean and sanitary condition. (B) No person having any skin infection or other disease of the skin or any communicable disease shall be tattooed. American Legal Publishing Corp. 0-11) Hutchinson, MN Code of Ordinances (C) All equipment including needles, knell bars, tubes, pigment and receptacles, stencils, razors and razor blades, shall be kept in a dust -proof glass case when not in use. (D) All needles and operating instruments shall be individually pre - packaged, pre - sterilized and disposable. No such equipment shall be used on more than one customer, but shall be discarded in a safe and sanitary manner after its first use. (E) All bandages and surgical dressings used in connection with tattooing of any person shall be individually pre - packaged, pre - sterilized and disposable. (F) Every person who practices tattooing shall wear clean, white colored, washable outer garments when engaged in the practice of tattooing. (G) Every person who practices tattooing shall wash his or her hands thoroughly with soap and water and then dry them in a clean, unused towel before and after each tattooing. The customer's skin shall also be thoroughly cleansed with soap and water and disinfected by an antiseptic solution before the use or application of any tattooing instrument or equipment. (H) Whenever it is necessary to shave the skin, a safety razor must be used. A new blade must be used for each customer. The razor shall be cleaned with soap and water after each use and shall be kept in a closed case when not in use. All electric hair clippers shall be sanitized by a method approved by the Commissioner of Health. (I) Pigments used in tattooing shall be sterile and free from bacterial and noxious agents and substances. The pigments used from stock solutions for each customer shall be placed in a single service receptacle and this receptacle and remaining solution shall be discarded in a safe and sanitary manner after use on each customer. (J) Every person to be tattooed shall be asked whether he or she has had viral hepatitis in the preceding six months. No person suspected of presently having viral hepatitis or having had viral hepatitis within the last six months, shall be tattooed without the written consent of a licensed physician. (K) No place used for the practice of tattooing shall be used or occupied for living or sleeping quarters or for any purpose other than tattooing. (L) There shall be a minimum of 150 square feet of floor space at the place where the practice of tattooing is conducted and the place shall be adequately ventilated and lighted. All tables, chairs and operating furniture shall be constructed of metal with white enamel or porcelain finish or stainless steel, and shall be kept in a clean and sanitary condition. (M) No person shall practice tattooing while under the influence of alcohol or drugs. No customer shall be tattooed while under the influence of alcohol or drugs. (N) A person tattooed shall be provided with written instructions on the approved care American Legal Publishing Corp. \``t) Hutchinson, MN Code of Ordinances of the tattoo during the healing process. ('89 Code, § 6.41) (Ord. 94 -104, passed 3 -8 -94) Penalty, see § 10.99 American Legal Publishing Corp. rd \�`e> MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 30, 2012 Call to order — 3:00 p.m. Vice President Lenz called the meeting to order. Members present: Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Monty Morrow; Commissioner Anthony Hanson; Attorney Marc Sebora; General Manager Michael Kumm. Member absent: President Dwight Bordson. Guests: Dave Berg and Kevin Favero (SAIC); Jeremy Carter (City); Miles Seppelt (City); Mayor Steve Cook. Agenda item #3: Approve Financial Statements /Budget Year to Date was moved to agenda # 4; and Agenda item #4: Presentation by SAIC (Dave Berg) — Rate Study was moved to agenda item #3. 1. Approve Minutes of April 25, 2012 Regular Meeting The minutes of the April 25, 2012 regular meeting were reviewed. A motion was made by Secretary Johnson, seconded by Commissioner Morrow to approve the minutes. Motion was unanimously carried. 2. Ratify Payment of Bills for April 2012 The April 2012 payables were discussed. A motion was made by Secretary Johnson, seconded by Commissioner Hanson to ratify the payment of bills in the amount of $4,193,701.37 (detailed listing in payables book). Motion was unanimously carried. 3. Presentation by SAIC (Dave Berg) - Rate Study Dave Berg and Kevin Favero of SAIC were welcomed to the meeting. Mr. Berg gave a presentation on the results of the May 2012 Electric and Gas Cost -of- Service and Unbundled Rate Study. Mr. Berg stated the recommended changes are minimal and HUC is on solid financial footing. HUC may want to consider rate design changes; however, Mr. Berg does not recommend an overall rate increase at this time. Existing rates look favorable through 2016. 4. Approve Financial Statements /Budget Year to Date GM Kumm presented the April 2012 financial statements /budget year -to -date. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the financial statements /budget year -to -date. Motion was unanimously carried. 5. Discuss Angel Network /Incubator Assistance /Future EDA Projects Commissioner Hanson stated it was requested at the Joint HUC /City meeting to add this discussion item to the agenda. Miles Seppelt from City of Hutchinson was welcomed. Mr. Seppelt requested HUC's consideration to partner with EDA in future projects such as: the Angel Network, an industrial spec building /small business incubator and the downtown revitalization plan #2 which is an update and refinement project to promote economic development. 6. Discuss City Administrator /Ex- Officio HUC Board Member GM Kumm stated this agenda item is a result of the HUC /City Joint meeting to further discuss the Mayor's request to appoint the City Administrator as an ex- officio board member on the Commission. In the Joint meeting, Mr. Kumm had noted per Commission President Bordson that all HUC meetings are open and public for anyone to attend. The Board had then unanimously agreed it was not necessary to appoint the City Administrator as an ex- officio. Mayor Cook noted he had since spoken with President Bordson who said he had no opposition to an ex- officio position as a non - voting member. Attorney Sebora mentioned there would need to be a change to the City Charter. Mayor Cook suggested removing Council member verbiage and replacing with ex- officio verbiage as a non - voting member. Mayor Cook said it would then be presented to the Charter Commission. The Board would like to discuss this further upon President Bordson's return and also meet with the Charter Commission. 7. Appoint a Commissioner to Committee for Analyzing the Transfer Formula to C ity Mayor Cook stated this agenda item is also a result of the HUC /City Joint meeting to appoint Commission members to the City Council approved committee which includes Jeremy Carter, Council Member Chad Czmowski and Mayor Steve Cook, to review the transfer formula to City. Mayor Cook would like to see if the transfer could be increased. Vice President Lenz noted a PILOT (Payment in Lieu of Taxes) committee was formed in 2008. HUC will need to absolve that committee at the next regular commission meeting. A motion was made by Commissioner Hanson, seconded by Secretary Johnson to appoint Commissioner Morrow and President Dwight Bordson to the transfer formula committee. Another motion was made to modify the original motion to add GM Kumm to the transfer formula committee. Motions were unanimously carried. 8. Discuss Credit Card Payments GM Kumm discussed information on past years' credit card charges and the credit card fees HUC incurs to accept credit card payments as a convenience for HUC customers. The credit card fee amounts have increased substantially over the years due to the majority of the fees coming from businesses charging their bills. Staff will research options to help reduce the amount HUC incurs and present at the next regular commission meeting. 9. Review Policies and Requirements Booklet GM Kumm presented the policies and requirements booklet, sections: meter testing - natural gas; natural gas service work; and locating customer's underground utilities - natural gas. This is part of HUC's policy review and no changes are requested at this time. 6 1V) 10. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: Section 6 — health and safety; accidents and injuries; unsafe conditions or practices; and employee right -to -know. The changes to 'Section 6 — health and safety' and 'accidents and injuries' were to clean up verbiage and to provide clarity on what we currently practice. A motion was made by Commissioner Hanson, seconded by Secretary Johnson to approve the changes to 'Section 6 — health and safety' and 'accidents and injuries'. Motion was unanimously carried. (Changes attached.) No changes were recommended for section 'unsafe conditions or practices'. The changes recommended for section 'employee right to know' were to clean up verbiage and the Board recommended changing the word 'should' to 'shall' in the last sentence. A motion was made by Commissioner Morrow, seconded by Commissioner Hanson to approve the changes to section ' employee right to know'. Motion was unanimously carried. (Changes attached.) 11. Approve Bid Tabulation for Units 3 & 4 RICE Rule Compliance Modifications Steve Lancaster presented the bid tabulation for units 3 and 4 RICE rule compliance modifications to make units 3 and 4 compliant with the RICE ruling. If this work is not done these units would be shut down. This was a budgeted item for $450,000. After discussion, a motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the bid tabulation for units 3 and 4 RICE rule compliance modifications from Farabee Mechanical Inc. for $270,980. Motion was unanimously carried. (Bid tabulation attached.) 12. Approve Requisition #4884 for Casing Bypass Project John Webster presented requisition #4884 for casing bypass project. GM Kumm mentioned these are the last three casings in the distribution system and the final part of the 19 year project. After discussion, a motion was made by Commissioner Hanson, seconded by Commissioner Morrow to approve requisition #4884 for casing bypass project from Northern Pipeline Construction Cc for $73,535. Motion was unanimously carried. (Requisition attached.) 13. Division Reports Electric — Steve Lancaster • New engine on a rail up from Houston. • Mandatory pre -bid site visit last week for plant 1 building modifications for mechanical and electrical. New switchgear in place. Business — Jan Sifferath • New system controller started today — Larry Mason. • Hiring a summer temporary employee for line crew. • Jon Guthmiller working on CIP report to send to the Department of Commerce • Working on researching credit card payment issue. 3 1 vk1Ik_/) Gas — John Webster • Received United Farmers Cooperative's (United Natural Gas LLC) resolution from their Board to design and build skids for their interconnect system to only serve their grain facility. Finance — Jared Martig • Sent out bank requests for proposals last week. • Will receive bond refinancing results tomorrow. GM Kumm will be giving a presentation on power supply planning to City Council members at City Center tomorrow. 14. Legal Update Nothing to report Unfinished Business • Discuss Potential Capacity Sale GM Kumm and Steve Lancaster are continuing to work on the potential capacity sale. New Business • Discuss Patent License Agreement for Statistical Model in System Control Discussion was held regarding a patent for the statistical model and software used in system control. • GM Kumm presented a leadership review summary comparing 2005 to 2010 results of a 360 degree feedback survey anonymously completed by all HUC employees anonymously. Summary shows employees overall are satisfied. There being no further business, a motion was made by Commissioner Hanson, seconded by Commissioner Morrow to adjourn the meeting at 5:45 p.m. Motion was unanimously carried. Leon Johnson, Secretary ATTEST: Dwight Bordson, President M �y(a) f: RA Hutchinson Housing & Redevelopment Authority Regular Board Meeting ,Tuesday, May 15, 2012, 7:00 AM Minutes CALL TO ORDLR: Chairman Becky Felling called the meeting to order. Members Present: Bill Arndt, LaVonne Hansen, LouAnn Ilohnquist. and Joel Kraft. Staff Present: ,lean Ward and Judy Flemming. COASI DI: RATION OF MINUTES OF THE REGULAR BOARD MEETING ON APRIL 17, 2012 LaVonne Hansen moved to approve the Minutes of the regular board meeting as written. LouAnn Holmquist seconded and the motion carried unanimously, FINANCIAL. REPORTS a. Bill Arndt roved to approve the City Center General Fund payments of $28,820.00 for checks 8054 to 8072 and consideration of April 2012 City Center Financial Statements. Joel Kraft seconded and the motion carried unanimously. h. Joel Kraft moved to approve the Park Lowers payments of $23,983.38 for checks 11968 to 11997 and consideration of Park Towers March 2012 Financial Statements. LouAnn Holmquist seconded and the motion carried unanimously. III IPOP LOAN SUBORDINATION REQUEST The loan review committee reviewed the subordination request and approved it. LouAnn Holmquist moved to approve the subordination request for 1111POP 8822 -1.ce. City Revolving loan and IIItA Entry Cost loan. Bill Arndt seconded and the motion carried unanimously. 1'Ite mortgage company contacted the HRA after the approval to say that the homeowners withdraw their refinance loan application and the subordination will not be used. PARK TOWERS UPDATE a. Jean Ward updated the Board regarding the local HUD representatives visit scheduled for July 24"'. b. Joel Kraft moved to approve the Depository Agreement for Park Towers' accounts with Mid Country and First Minnesota. LOaAnn Holmquist seconded and the notion carried unanimously. C. Occupancy Status - currently there is I vacancy. 6. CON StDL--RAATION OF MEMORANDUM OF UNDERSTANDING WITH IIUFC11 INSON INDEPENDENT SCHOOL.. DISTRICT FOR REHAB OF 734 SOUFHVIE W DRIVE SW • LaVonne Hansen moved to approve the Memorandum of lJnderstanding with Hutchinson Independent School District for the rehab of 734 Southview Drive SW. LouAnn Holmquist seconded and the motion carried unanimously. • Bill Arndt asked the Board to think about considering donating IIRA funds for a scholarship for students that work on the School Construction homes. "The Board decided to discuss this more when reviewing the 2013 City Center Budget next month. 7. I;PDATE ON 400 LYNN ROAD a. .lean Ward presented to the Board the Purchase Agreement she received yesterday afternoon. Joel Kraft moved to accept the Purchase Agreement for 400 Lynn Road SW, LouAnn Holmquist seconded and the motion carried unanimously. b. The Board read a letter from Daryl Lundin, school instructor, on the progress and construction Schedule for 400 Lynn Road. t.i�iq li ]ql:� Minutes f a, I c,P {�� S. FIRST LOOK PROGRAM a. update on Ptu-chase of 7 ,-1 SOUThV1Cw Drive SW — estimated closing date scheduled £or May 16, 2012. 9, 2013 CI'I"Y CENTER BUDGET DISCUSSION £lie Board discussed their ideas on future HRA projects. The Board directed Jean when working on the 2013 City Center budget to use S 150,000 for the tax levy amount. 10. MAKFlELD STUDY PROPOSAL LaVonne Hansen moved to approve having the Maxfield housing study done and to split the cost with the City Planning Department. LOUAnn Holmquist seconded and the motion carried unanimously. 11. OTH63R FYI: City oPHutchinson Updated Polices Relating to Boards /Commissions. 12. ADJOURNMENT Bill Arndt moved to adjourn and LouAnn Holmquist seconded. '['here being no other business, Chairman Becky Felling declared the meeting adjourned. Recorded by Jean Wand, HRA Executive Director LaVonne Hansen, Secretary /Treasurer P,Iuc �S >01 °R16nnc� f'agr2 or'� - ra'J \ti Summer... Enjoy! To: Hutchinson Fire District Citizens From: Brad Emans, Fire Chief Date: 07/01/2012 Re: Monthly Update on the Activities of the Hutchinson Fire Department for June 2012 Fire Department Response: The Fire Department responded to 30 calls for service in the month of June. Fire Officer Only Response: A "fire officer only" responded to 10 calls in June saving the Hutchinson Fire District the cost of a "general' alarm estimated at $1,820.00 for the month. Response Time (First Emergency Vehicle Out of the Door): June — 3 minutes 10 seconds. Example of a Few of the Calls: • The FD responded to a bedroom fire in a manufactured home in the northwest section of the city. Firefighters quickly got the fire under control keeping structural damage to a minimum. The cause is under investigation; • The FD sent one engine and four firefighters to the Sartell paper mill fire in June. In all 97 fire departments responded to the call over a six day period; • The FD responded to a rescue call when a vehicle struck a house in the northeast part of the fire district. No extrication was needed, however firefighters made sure that no flammable liquids or any other hazardous material was leaking from the vehicle; • The FD responded to a call that a machine shed was burning in the northwest part of the fire district. It turned out to be a riding lawnmower burning inside the shed. Firefighters quickly extinguished the fire and checked the structure for fire extension with the Thermal Imagining Camera; The FD responded to a residential attic fire during a lightning storm in the southwest part of the city. The firefighters located the exact location of the smoldering insulation with the assistance of the Thermal Imaging Camera and removed the sheetrock below it thus limiting the structural, smoke, and water damage. It was first thought that lightning was the cause of the fire but after the investigation was completed it was determined to be improper wiring in the attic; • The FD responded to a possible explosion, and the smell of smoke in the southeast part of the city. Law enforcement advised the FD that a weapon was possibly involved and to stay in quarters until the scene was cleared. What actually happened was the residents of the property were having a recreational fire in their back yard when one of the people threw an old cigarette light into the flame it exploded; The FD activated when the district went into a Tomado Warning. Due to the late notice we received, the FD was only able to get one Sky Warn location filled. The rest of the units stood by in quarters for approximately one hour anticipating possible damage; • The FD responded to a routine "funny smell" call at a large multiple unit senior living complexes. The incident commander using a four gas meter, it was quickly determined that the building was filling up with high concentrations of CO. The building was quickly evacuated and then ventilated. It was determined that a PVC power exhaust pipe off one of the commercial water heaters broke spilling the CO. Breakdown of the Calls for the Month: city Type of Call Number for the Month Residential 4 Commercial /] ndustrial 4 Multi-Family 5 School 1 Grass 0 Medical 1 CO 3 Rescue 1 Haz-Mat Leak/Spill 2 Vehicle 1 Sk -Wam 1 Mutual Aid 1 Total 24 Structure Fires 3 Arson 0 • Page 2 Rural: Type of Call Number for the Month Residential 0 Commercial / Industrial 0 School 0 Farm Building 1 Grass 0 Medical 3 CO 0 Rescue 2 Haz -Mat Leak/Spill 0 Vehicle 0 Mutual Aid 0 Total 6 Structure Fires 1 Arson 0 Training: Firefighters Trained on the Following Topics /Equipment: I am very proud to make the announcement that 100% of our State Certified Firefighter I firefighters have completed Firefighter II, Hazardous Material Operations, and taken the State Certification test. This was a goal set by our training division after the firefighter reviews in 2011 and required several four hour training nights to accomplish. This achievement by our Training Chief and our Firefighters demonstrates the level of professionalism your Fire Department maintains; • In 2011 the fire department hired four new firefighters, three of them when to college to become certified, licensed firefighters and one went to Afghanistan to serve his country. The three sent to college have now completed Firefighter I and took their Oath of Office. We look forward to our Marine's return to the fire service in late fall; • The FD worked with Hutchinson Area Health Care on a demonstration for operating room employees on the hazards of oxygen enrich environment, flammable skin cleaner, flammability of the draping used in the operating room, and finally hands on use of fire extinguishers. All of this training took place at the training site. Fire Prevention / Public Relations / Other Information: The FD replaced many of the firefighter helmets due to that fact that several of the helmets had shells that were cracked and they were either very close to or over the allowable years for use in interior firefighting according to NFPA and OSHA. This also gave us the opportunity to change color for incident management. Firefighters will now have black helmets, Lieutenants will wear red helmets, Rookie Firefighters will wear yellow helmets, and the Chiefs will continue to wear the traditional white helmet. • MNOSHA made a surprise inspection of the fire department in June. I am very pleased to announce that we did not have any violations. If you have ever visited the station you are not surprised as this department takes great pride in constantly being in the ready mode; • Page 3 \"1'Cl The FD completed the hiring process for paid -on -call firefighters and issued a conditional offer of employment to three people. I want to welcome Daryl Rath, John Travis, and Kyle Baysinger to the fire service! The rookies will train with us over the summer and fall and then enter the Firefighter I college course in January 2013; • The FD participated in the following public relation, or educational events: 1. Participated in the 3M Club Family Day; 2. Assisted with the Park & Recreation "Slip & Slide "; 3. Provided First Aid at the Hutchinson Jaycee "Grand Day Parade "; 4. Participated in the "Grade Day Parade ". Measurements: 1. Number of calls that required more than one engine, and four firefighters in June: 6 2. Number of Calls that required more than "required by law investigation" in June: 5 3. Estimated dollars "saved" in property (building and contents) by the fire department response for the month of June: $200,000 4. Estimated dollars `lost' in property (building and contents) to fire in June: $17,500 • Page 4