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Home My WebLink About20230918 - CC PacketSign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at https://www.hastingsmn.gov/city-government/city-council/city-council-documents-copy CITY OF HASTINGS CITY COUNCIL AGENDA Monday, September 18, 2023 7:00 p.m. I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. DETERMINATION OF QUORUM Recognition of City’s AA+ Bond Rating V. APPROVAL OF MINUTES Approve Minutes of the City Council workshop and regular meeting on September 5, 2023. VI. COMMENTS FROM THE AUDIENCE Comments from the audience may include remarks about items listed on the Consent Agenda. VII. COUNCIL ITEMS TO BE CONSIDERED VIII. CONSENT AGENDA The items on the Consent Agenda are items of routine nature or no perceived controversy to be acted upon by the City Council in a single motion. There will be no discussion on these items unless a Councilmember so requests, in which event the items will be removed from the Consent Agenda to the appropriate Department for discussion. 1. Pay Bills as Audited 2. Resolution: Accept Donation to the Parks and Recreation Department from Fluegel’s Lawn, Garden & Pet Supply 3. Authorize Signature: Services Agreement Amendment with ImageTrend, LLC 4. Approve Pay Estimate No. 4 for 2023 Neighborhood Infrastructure Improvements – BCM Construction, Inc. ($727,020.70) 5. Resolution: Imposing Sanctions Upon Retail Intoxicating Liquor License Holder Speedway Gas Station 6. Authorize Signature: Villas at Pleasant - 3rd Amendment to Development Agreement 7. Resolution Supporting and Authorizing Application to the MNDOT for Transportation and Economic Development (TED) Funding for the Trunk Highway 61 Improvements IX. AWARDING OF CONTRACTS AND PUBLIC HEARING These are formal proceedings that give the public the opportunity to express their concern, ask questions, provide additional information, or support on a particular matter. Once the public hearing is closed, no further testimony is typically allowed and the Council will deliberate amongst itself and with staff and/or applicant on potential action by the Council. 1. Award Contract: Hwy 55 Trail Reconstruction – McNamara Contracting 2. Public Hearing: Vacation of Easement: South Oaks 4th Addition 3. Public Hearing\2nd Reading\Adopt Ordinance: Amend City Code Chapters 156 and 157 – Property Maintenance Code and Structural Maintenance Code Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at https://www.hastingsmn.gov/city-government/city-council/city-council-documents-copy X. REPORTS FROM CITY STAFF These items are intended primarily for Council discussion and action. It is up to the discretion of the Mayor as to what, if any, public comment will be heard on these agenda items. A. Public Works B. Parks and Recreation C. Community Development D. Public Safety E. Administration 1. Utility Rate Study 2. Resolution: Approve Preliminary 2024 City Property Tax Levy, Preliminary Budget, and Setting Truth in Taxation Hearing 3. Resolution: Approve Proposed 2024 HEDRA – HRA Special Tax Levy XI. UNFINISHED BUSINESS XII. NEW BUSINESS XIII. REPORTS FROM CITY COMMITTEES, OFFICERS, COUNCILMEMBERS XIV. ADJOURNMENT Next Regular City Council Meeting: Monday, October 2, 2023 7:00 p.m. Hastings, Minnesota City Council Workshop September 6, 2022 The City Council of the City of Hastings, Minnesota met in a workshop on Tuesday, September 5, 2023 at 5:30 p.m. in the Volunteer Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Folch, Fox, Lawrence, Leifeld, Pemble Members Absent: Councilmember Haus Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Finance Manager Chris Eitemiller Assistant Finance Manger Ashley Bertrand Mayor Fasbender called the workshop to order at 5:30 pm and welcomed councilmembers and staff. Eitemiller introduced the workshop on the budget and levy discussion. Eitemiller reviewed revenues and tax levy to support the budget. Eitemiller reported that in Dakota County, most levies are at or above the proposed levy for the City. The impact on the median value home is a little lower than was discussed at the workshop in June. Eitemiller reviewed the ongoing revenues and one-time funds. These include the levy, local government aid, the Rural Fire Association contract, the Public Safety Aid allocation, general fund and special revenue fund balances. Wietecha reviewed the key expenses that account for the increase to the levy. These include staff additions or other changes that impact personnel expenses, inflationary increases for general services and supplies. Drivers of increases include inflation, phase-in of expenses planned in earlier years (such as compensation/classification study from 2022 and grant expiration), and maintaining assets. Eitemiller reported on the CIP/CEP status. Proposing increased spending on infrastructure projects. Specifically, mill & overlay and skim patching. Due to long lead times, a down payment for a ladder truck is proposed for 2024. The City will need to shift the current one-time funds for the CIF to ongoing funds. Parks Dept. has trail work, funded by reserves. Eitemiller provided an historical look at taxes in the City. He then provided a preliminary tax impact of the proposed rate. The market value of the median value home has risen 2.79% and the proposed budget would increase taxes by $104 per year. Fiscal disparities revenue is again decreasing. Bonding projects for 2024: Neighborhood Street Project and the Arena Project (refrigerant system, lighting upgrade, west rink roof and solar). There may be possible funding from the State bonding bill for the Arena Project. The Utility Rate Study was updated spring 2023. The Utility Rates are consistent with last year. Some of the utility capital items include the utilities portion of the neighborhood project, sewer rehabilitations, SCADA upgrade and water quality improvement project. The Communications Plan for the 2024 budget will be similar to last year and will include a press release following approval of the preliminary levy. There will be key messages to help answer budget-related questions. Communication will also include social media, interviews, Budget-at-a-Glance handout, and an insert in the Dakota County truth-in-taxation mailer. Council discussion on whether the levy cap should be set at this council meeting or the next. Clarity on the impact of some items of the budget may come in the next two weeks. ADJOURNMENT Adjourn the workshop at 6:44 p.m. ____________________________ ______________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Hastings, Minnesota City Council Meeting Minutes September 5, 2023 The City Council of the City of Hastings, Minnesota met in a regular meeting on Tuesday, September 5, 2023 at 7:00 p.m. in the Council Chambers at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Folch, Fox, Lawrence, Leifeld, and Pemble Members Absent: Councilmember Haus Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Attorney Greta Bjerkness Facilities Manager Charlie Judge Assistant Finance Manager Ashley Bertrand Fire Chief John Townsend Police Chief David Wilske New Employees Angi Barber Tom Sorenson Heather Meling Jeremy Bickner Ben Ferderer Mason Johnson Elisabethann Schmidt James Domeier Introductions Sue Vento, Metropolitan Council Tammy Champa, ISD 200 Approval of Minutes Mayor Fasbender asked if there were any additions or corrections to the minutes of the City Council regular meeting on August 21, 2023. Minutes were approved as presented. Comments from the Audience Todd Matzke, 1018 Ramsey Street, requested Council remove item 7 from Consent Agenda for council discussion. He wanted to ensure city councilmember is aware of concerns and did not feel that the Planning Commission properly address citizen concerns. He raised concerns about parking in the area and adding another possible rental property to the area. Concerned that nothing can be done because there is not an ordinance prohibiting the concentration of rental properties in a particular area. Served on Planning Commission and felt the open meeting process did not work that residents that live in the area are not aware of the process of meetings. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Consent Agenda Councilmember Folch requested Item 7 be removed from the Consent Agenda and placed under the Administration section. Councilmember Leifeld motioned to approve the Consent Agenda pulling Item 7, seconded by Councilmember Pemble. 6 Ayes, 0 Nays 1. Pay Bills as Audited 2. Approve Special Event Designation: Relay for Life 3. Approve Special Event Designation: Mainstreet Market 4. Resolution No. 09-01-23: Accept Donation to the Parks and Recreation Department 5. Authorize Signature: CDBG Subrecipient Agreement 6. Authorize Signature: Waiver of Assessment – Hastings Creamery 7. Resolution No. 09-02-23: Minor Subdivision – Adam Greenslade (1012 Ramsey Street) 8. Approve First Amendment to City of Hastings Legal Services Agreement with LeVander, Gillen & Miller, PA. 9. Declare Surplus Property and Authorize Sale (Pickup Trucks and Trash/Recycling Cans) 10. Cannabis Regulation – Send to Public Safety Committee 11. Resolution No. 09-03-23: Schedule Public Hearing Regarding Duluth EDA Financing Benedictine Health System Projects 12. 1st Reading\Order Public Hearing: Amend City Code Chapters 156 and 157 – Property Maintenance Code and Structural Maintenance Code Resolution No. 09-04-23: Approve Preliminary 2024 City Property Tax Levy, Preliminary Budget, and Setting Truth in Taxation Hearing Wietecha requested no action at this meeting based on recently received information, recommending action on September 18, 2023. Resolution No. 09-05-23: Approve Proposed 2024 HEDRA – HRA Special Tax Levy Wietecha requested no action at this meeting, recommending action on September 18, 2023. Strategic Plan 2024 – 2027 Wietecha introduced the 2024 – 2027 Strategic Plan. In April, the City Council and City Staff held a facilitated retreat to develop priorities for the City’s strategic plan for the next couple years. City Staff also developed Action Plans for implementation of each of the 16 strategic initiatives. As provided in the past, staff will report tracking information and progress to the City Council and the public on a quarterly basis. Council discussion on appreciation for having the plan on the agenda. Council discussion that feedback on the initiatives and timing of completion was not offered to Councilmembers before publication. Councilmember Pemble motioned to approve as presented, seconded by Councilmember Fox. 6 Ayes, 0 Nays. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Resolution No. 09-02-23: Minor Subdivision – Adam Greenslade (1012 Ramsey Street) Wietecha provided an overview of the location and zoning of the area. Wietecha provided a summary of the request to subdivide the property and construct a duplex on the two lots. He indicated the process requires a public hearing which provides notice to residents in the area and is heard by the Planning Commission. The Planning Commission considered this request at their August 28, 2023 meeting. He indicated that rental properties are regulated by zoning and rental inspections. Council discussion on the size of the lot and other rental properties in the area. Council discussed challenges with older homes and the rental opportunities. Council specified the proposal does not indicate that the units will be owned or rented. Council discussion on parking availability and offered general support for rental availability due to the variety of reasons why people rent versus purchasing. Wietecha noted item 12 on the Consent agenda addresses some of the topics of discussion related to rentals. Councilmember Leifeld motioned to approve as presented, seconded by Councilmember Fox. 6 Ayes, 0 Nays. Announcements • The Fire Relief Association’s annual Booya is this Saturday, September 9. • Summer Rec Programs at Levee Park… o Tuesday, September 12, Performance in the Park “SAATH Bollywood Dance” Sponsored by SMEAD Manufacturing. o Wednesday, September 13, Storytime in the Park with the theme “rest.” A partnership with Pleasant Hill Library. o Friday, September 15, Movie in the Park “The Mitchells vs. The Machines.” Sponsored by Ardent Mills. Please bring a non-perishable food donation. • Bike with a Ranger – Bike the 10-mile loop and learn history and wildlife fun facts on Saturday, September 16. Recommended for teens and adults. A partnership with the National Park Service. Registration is required. • Councilmember Pemble noted that the next Great River Rail Commission meeting will be held Thursday, September 7 in Red Wing. Some of the topics include: 2024 Workplan and the Second Train. Meetings • Public Safety Committee Meeting on Monday, September 11, 2023 at 7:00 p.m. • Planning Commission Meeting on Monday, September 11, 2023 at 7:00 p.m. - Cancelled • Arts & Culture Commission Meeting on Wednesday, September 13, 2023 at 6:00 p.m. • Administration Committee Meeting on Wednesday, September 13, 2023 at 7:00 p.m. • HEDRA Meeting on Thursday, September 14, 2023 at 6:00 p.m. • City Council Regular Meeting on Monday, September 18, 2023 at 7:00 p.m. Councilmember Pemble motioned to adjourn the meeting at 8:03 PM, seconded by Councilmember Lawrence. Ayes 6; Nays 0. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes _____________________________ ______________________________ Kelly Murtaugh, City Clerk Mary D. Fasbender, Mayor City Council Memorandum To: Mayor Fasbender & City Council Members From: Connie Lang – Accountant Date: 09/14/2023 Item: Disbursements Council Action Requested: Staff requests: Council review of Aug 2023 CenterPoint, Xcel, Wex, Health Insurance payments. Council review of weekly routine disbursements issued 09/12/2023. Council approval of routine disbursements, capital purchases and employee reimbursements to be issued 09/19/2023. Background Information: Disbursements for routine items are made weekly. Disbursements for capital purchases and employee reimbursements are made twice a month, subsequent to Council approval. Financial Impact: Aug 2023 Centerpoint Payment $ 4,255.75 Aug 2023 Xcel Payment $ 92,759.39 Aug 2023 Wex Admin Fee Payment $ 294.25 Aug 2023 Health Ins Payment $ 172,014.18 Disbursement Checks, Hedra & EFT issued on 09/12/2023 $ 367,033.03 Disbursement Checks, Hedra & EFT to be issued on 09/19/2023 $ 1,062,123.67 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ● Disbursement Reports VIII-01 Dept Account Amount Police 101-140-1403-6345 83.44 City Hall 101-140-1404-6345 156.16 City Storage 101-140-1407-6345 65.71 Alt Learning Ctr 101-401-4143-6345 33.52 Parks 200-401-4440-6345 63.75 Jt Maint 200-401-4447-6345 88.63 Pool 201-401-4240-6345 3,066.61 Fire 213-210-2100-6345 139.37 Le Duc 220-450-4160-6345 65.71 Water 600-300-3300-6345 126.90 Water 600-300-3302-6345 147.05 Garage 601-300-3400-6345 66.90 Arena 615-401-4103-6345 152.00 TOTAL 4,255.75 CENTERPOINT ENERGY Aug Pymt VIII-01 Xcel Acct #Amount Date Paid Account # 51-6960213-7 4,806.75 1-Aug 101-140-1403-6343 51-6960213-7 4,545.30 1-Aug 101-140-1403-6343 51-6960208-0 1,649.57 11-Aug 101-140-1404-6343 51-8110141-1 109.72 11-Aug 101-140-1407-6343 51-6960219-3 62.90 10-Aug 101-201-2016-6343 51-6960210-4 205.72 11-Aug 101-300-3100-6343 51-6960210-4 1,028.59 11-Aug 101-301-3200-6343 51-0011278454-9 11.57 11-Aug 101-302-3201-6343 51-0263715-0 18.03 11-Aug 101-302-3201-6343 51-6960218-2 14,339.35 18-Aug 101-302-3201-6343 51-6960215-9 3,329.79 8-Aug 200-401-4440-6343 51-0010048093-4 7.21 10-Aug 200-401-4440-6343 51-0011082067-5 110.01 11-Aug 200-401-4440-6343 51-6960220-6 981.67 10-Aug 200-401-4447-6343 51-6960209-1 5,166.01 31-Jul 201-401-4240-6343 51-6960209-1 4,811.15 29-Aug 201-401-4240-6343 51-6960214-8 1,207.53 10-Aug 213-210-2100-6343 51-7216831-9 590.09 11-Aug 220-450-4160-6343 51-6960216-0 18,399.01 1-Aug 600-300-3300-6343 51-6960210-4 822.88 11-Aug 600-300-3300-6343 51-6960216-0 16,155.96 30-Aug 600-300-3300-6343 51-6960216-0 6,716.26 1-Aug 600-300-3302-6343 51-6960216-0 5,468.91 30-Aug 600-300-3302-6343 51-6960217-1 1,527.52 2-Aug 601-300-3400-6343 51-6960217-1 687.89 29-Aug 601-300-3400-6343 TOTAL 92,759.39 Xcel Bills Aug 2023 Payments VIII-01 ACCOUNT DESCRIPTION ACCOUNT AMOUNT Employer Paid HRA/HSA Admin Fee - Administration 101-105-1051-6131 8.25 Employer Paid HRA/HSA Admin Fee - City Clerk 101-107-1071-6131 10.59 Employer Paid HRA/HSA Admin Fee - Finance 101-120-1201-6131 19.25 Employer Paid HRA/HSA Admin Fee - Planning 101-150-1501-6131 2.75 Employer Paid HRA/HSA Admin Fee - IT 101-160-1601-6131 5.50 Employer Paid HRA/HSA Admin Fee - Police 101-201-2010-6131 96.25 Employer Paid HRA/HSA Admin Fee -Building Safety 101-230-2301-6131 11.00 Employer Paid HRA/HSA Admin Fee-Code Enforcement 101-230-2302-6131 2.75 Employer Paid HRA/HSA Admin Fee - Engineering 101-300-3100-6131 6.46 Employer Paid HRA/HSA Admin Fee - Streets 101-301-3200-6131 12.10 Employer Paid HRA/HSA Admin Fee - Parks 200-401-4440-6131 27.50 Employer Paid HRA/HSA Admin Fee - Cable 205-420-4201-6131 0.41 Employer Paid HRA/HSA Admin Fee - Historical 210-170-1702-6131 0.69 Employer Paid HRA/HSA Admin Fee - Fire 213-210-2100-6131 9.76 Employer Paid HRA/HSA Admin Fee - Ambulance 213-220-2200-6131 39.74 Employer Paid HRA/HSA Admin Fee - Econ. Develop.407-180-6003-6131 4.81 Employer Paid HRA/HSA Admin Fee - Water 600-300-3300-6131 12.65 Employer Paid HRA/HSA Admin Fee - Wastewater 601-300-3400-6131 8.94 Employer Paid HRA/HSA Admin Fee - Storm Water 603-300-3600-6131 7.98 Employer Paid HRA/HSA Admin Fee - Arena 615-401-4103-6131 5.50 Employer Paid HRA/HSA Admin Fee - Hydro 620-300-3500-6131 1.38 TOTAL 294.25 WEX PAYMENTS August Payment VIII-01 ACCOUNT DESCRIPTION ACCOUNT #AMOUNT Medical Insurance Withholding 101-000-0000-2185 17,064.75 COBRA Paid Insurance 101-000-0000-2185 6,703.89 Employer Paid Health Ins. - Administration 101-105-1051-6131 723.81 Employer Paid Health Ins. - Communications 101-107-1061-6131 1,378.53 Employer Paid Health Ins. - City Clerk 101-107-1071-6131 2,329.83 Employer Paid Health Ins. - Finance 101-120-1201-6131 4,849.60 Employer Paid Health Ins. - Maintenance 101-140-1401-6131 1,695.27 Employer Paid Health Ins. - Planning 101-150-1501-6131 992.67 Employer Paid Health Ins. - IT 101-160-1601-6131 3,777.41 Employer Paid Health Ins. - Police 101-201-2010-6131 38,811.46 Employer Paid Health Ins. -Building Safety 101-230-2301-6131 5,174.96 Employer Paid Health Ins.-Code Enforcement 101-230-2302-6131 1,621.80 Employer Paid Health Ins. - Engineering 101-300-3100-6131 2,249.73 Employer Paid Health Ins. - Streets 101-301-3200-6131 3,628.89 Medical Insurance Withholding 200-000-0000-2185 2,085.18 Employer Paid Health Ins. - Parks 200-401-4440-6131 11,067.70 Employer Paid Health Ins. - Swimming Pool 201-401-4240-6131 0.00 Medical Insurance Withholding 205-000-0000-2185 104.26 Employer Paid Health Ins. - Cable 205-420-4201-6131 243.27 Employer Paid Health Ins. --Heritage 210-170-1702-6131 180.95 Medical Insurance Withholding 213-000-0000-2185 4,747.63 Employer Paid Health Ins. - Fire 213-210-2100-6131 3,762.15 Employer Paid Health Ins. - Ambulance 213-220-2200-6131 14,660.21 Medical Insurance Withholding 220-000-0000-2185 128.22 Employer Paid Health Ins. - Leduc 220-450-4160-6131 299.16 Medical Insurance Withholding 407-000-0000-2185 578.33 Employer Paid Health Ins. - Econ. Dev.407-180-6003-6131 2,797.05 Medical Insurance Withholding 600-000-0000-2185 290.60 Employer Paid Health Ins. - Water 600-300-3300-6131 4,775.03 Medical Insurance Withholding 601-000-0000-2185 282.08 Employer Paid Health Ins. - Wastewater 601-300-3400-6131 3,454.43 Medical Insurance Withholding 603-000-0000-2185 629.62 Employer Paid Health Ins. - Storm Water 603-300-3600-6131 3,433.26 Medical Insurance Withholding 615-000-0000-2185 695.06 Employer Paid Health Ins. - Arena 615-401-4103-6131 2,424.81 Medical Insurance Withholding 620-000-0000-2185 0.00 Employer Paid Heatlh Ins. - Hydro 620-300-3500-6131 402.30 Employer Paid Health.Ins. - Retirees 701-600-6002-6131 23,970.27 TOTAL 172,014.18 Medica Health Insurance Premiums August 2023 VIII-01 09-07-2023 10:04 AM Council Report SEPTEMBER 12TH PYMTS, 2023 PAGE: 1 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL GENERAL METROPOLITAN COUNCIL ENVIRONMENTAL SER JULY SAC 7,455.00 JUNE 2023 SAC 14,760.90_ TOTAL: 22,215.90 ADMINISTRATION GENERAL TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 391.56 DAKOTA COUNTY TREASURER SORENSON NOTARY REGISTER F 20.00_ TOTAL: 411.56 FACILITY MANAGEMENT GENERAL TOTAL MECHANICAL SERVICES, INC. P.D. BOILERS DOWN 210.00 C.H. COUNCIL AV ROOM COOLI 1,582.75 FERGUSON ENTERPRISES INC F.D. PARTS 138.19 F.D. PARTS 90.22 TERRYS HARDWARE, INC. F.C. HOSE&STICKS - J.M. BU 78.96 C.H. CABLE LOCK 24.95 C.H. KEYS 9.54 TRANE PARTS CENTER P.D. A/C CONTRACT 1,650.50_ TOTAL: 3,785.11 I.T. GENERAL COMPUTER INTEGRATION TECHNOLOGIES PW TRAINING ROOM PROJECT 8,785.00_ TOTAL: 8,785.00 POLICE GENERAL SHRED RIGHT AUGUST SERVICE FEES 17.73 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 261.90 HOLIDAY STATIONSTORES LLC AUGUST CAR WASHES FOR PD 68.00 DAKOTA 911 DCC FEE / 2023 OCT 29,679.33_ TOTAL: 30,026.96 PUBLIC WORKS GENERAL FOCUS ENGINEERING, INC. PROFESSIONAL SERVICES 6,810.00 TH 61 STUDY 1,320.00 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 40.29_ TOTAL: 8,170.29 PUBLIC WORKS STREETS GENERAL FOCUS ENGINEERING, INC. STREETS EXPERT & CONSULTAN 600.00 SIR LINES-A-LOT, LLC SOUTH METRO 2023 JPA- MARK 5,255.80 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 40.27 BOYER FORD TRUCKS/DBA ALLIANCE TRAILER BRAKE 424.44 CREDIT - ROUND U-JOINT 38.20- TOTAL: 6,282.31 PARKS & RECREATION GENERAL HOMETOWN ACE HARDWARE PAINT FOR TREES 17.26 ECOSAFE ZERO WASTE USA INC. COMPOSTABLE BAGS/LINERS 2,052.20 RIVERTOWN TREE SERVICE LLC TREE REMOVAL AT CANNON 3,000.00_ TOTAL: 5,069.46 NON-DEPARTMENTAL PARKS MANSFIELD OIL COMPANY 502 GALLONS OF GAS 2,014.58_ TOTAL: 2,014.58 PARKS & RECREATION PARKS RIVARD COMPANIES, INC. PLAYGROUND MULCH 2,125.00 PLAYGROUND MULCH 2,125.00 PLAYGROUND MULCH 2,125.00 PIONEER MANUFACTURING CO., INC. FIELD PAINT 687.00 CITY OF ROSEMOUNT 3RD QTR SHARED SW & RECYCL 7,873.15 BEACON ATHLETICS VETS BASEBALL FIELD 484.00 VETS BASEBALL FIELD 1,439.10 JJ LAWNSCAPE VETS REPAIRS 1,192.54 HOMETOWN ACE HARDWARE RUBBER BOOTS FOR POWER WAS 4.13 VIII-01 09-07-2023 10:04 AM Council Report SEPTEMBER 12TH PYMTS, 2023 PAGE: 2 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ BEE KILLER & SPRAYER FOR L 47.31 INDEPENDENT BLACK DIRT & SOD COMPANY I BLACK DIRT 350.00 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 128.81 HASTINGS FIRE & SAFETY FIRE EXTINGUISHER ANNUAL T 564.75 R.E. WAHLSTROM CONCRETE & DIVERSIFIED PLAYER PADS AT PIONEER 4,939.20 ASPEN EQUIPMENT CO NEW TOMMY GATE FOR 2008 CH 1,030.16 FASTENAL COMPANY DRILL BIT SET 142.33 GERLACH OUTDOOR POWER EQUIP NEW WEED WHIP HEADS 107.01 NIEBUR TRACTOR & EQUIPMENT, INC. OIL FOR KUBOTA TRACTOR/MOW 149.08 TERRYS HARDWARE, INC. F.C. HOSE&STICKS - J.M. BU 89.73 WERNER IMPLEMENT CO INC O-RINGS AND SCREEN FOR PAI 24.06_ TOTAL: 25,627.36 PARKS & RECREATION AQUATIC CENTER HORIZON COMMERCIAL POOL SUPPLY CHEMICAL 2,140.25 HASTINGS FIRE & SAFETY HASTINGS FIRE & SAFETY 86.75 SYSCO, MINNESOTA FOOD FOR CONCESSIONS 313.73_ TOTAL: 2,540.73 FIRE FIRE & AMBULANCE NAPA AUTO PARTS STATION SUPPLIES 36.20 TARGETSOLUTIONS LEARNING, LLC VECTOR SCHEDULING 4,959.75 TARGET SOLUTIONS 5,657.18 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 186.45 DAKOTA 911 DCC FEE / 2023 OCT 14,839.67_ TOTAL: 25,679.25 AMBULANCE FIRE & AMBULANCE EXPERT BILLING, LLC JULY REVENUE 3,325.03 LINDE GAS & EQUIPMENT INC. OXYGEN 378.51 OXYGEN 192.52_ TOTAL: 3,896.06 PARKS & RECREATION PARKS CAPITAL PROJ ISG ROADSIDE TENNIS COURTS 802.50_ TOTAL: 802.50 ECONOMIC DEVELOPMENT HEDRA RAJ GANDHI FACADE IMP GRANT-411 VERMI 1,738.88_ TOTAL: 1,738.88 PUBLIC WORKS 2023 IMPROVEMENTS FOCUS ENGINEERING, INC. 2023-1 NHD INFRASTRUCTURE 2,070.00_ TOTAL: 2,070.00 PUBLIC WORKS WATER FOCUS ENGINEERING, INC. WATER FUND 3,390.00 WATER FUND 510.00 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 40.29_ TOTAL: 3,940.29 PUBLIC WORKS WASTEWATER FOCUS ENGINEERING, INC. WASTEWATER FUND 2,730.00 SCHLOMKA'S SERVICES, LLC CREAMERY CLOSE-SEWER LINE 2,447.50 TOSHIBA AMERICA BUSINESS SOLUT COPIER LEASE 40.29_ TOTAL: 5,217.79 PUBLIC WORKS STORM WATER UTILIT FOCUS ENGINEERING, INC. STORM WATER 120.00_ TOTAL: 120.00 PARKS & RECREATION ARENA ISG ARENA PLANNING 4,435.00_ TOTAL: 4,435.00 MISCELLANEOUS INSURANCE FUND LEAGUE MN CITIES INSURANCE TRUST PROPERTY/CASUALTY COVERAGE 79,522.00 VIII-01 09-07-2023 10:04 AM Council Report SEPTEMBER 12TH PYMTS, 2023 PAGE: 3 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ WORKERS COMPENSATION PREMI 124,022.00_ TOTAL: 203,544.00 NON-DEPARTMENTAL ESCROW - DEV/ENG/T FOCUS ENGINEERING, INC. SOUTH OAKS 4TH ADDITION 420.00 HERITAGE RIDGE 3RD ADDITIO 120.00 COUNTY CROSSROADS 4TH APTS 120.00_ TOTAL: 660.00 =============== FUND TOTALS ================ 101 GENERAL 84,746.59 200 PARKS 27,641.94 201 AQUATIC CENTER 2,540.73 213 FIRE & AMBULANCE 29,575.31 401 PARKS CAPITAL PROJECTS 802.50 407 HEDRA 1,738.88 483 2023 IMPROVEMENTS 2,070.00 600 WATER 3,940.29 601 WASTEWATER 5,217.79 603 STORM WATER UTILITY 120.00 615 ARENA 4,435.00 705 INSURANCE FUND 203,544.00 807 ESCROW - DEV/ENG/TIF-HRA 660.00 -------------------------------------------- GRAND TOTAL: 367,033.03 -------------------------------------------- TOTAL PAGES: 3 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 1 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL GENERAL VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 216.84 SEPT 2023 VISION PREMIUM 18.30 METROPOLITAN COUNCIL ENVIRONMENTAL SER AUGUST SAC 4,920.30_ TOTAL: 5,155.44 ADMINISTRATION GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 22.10_ TOTAL: 22.10 CITY CLERK GENERAL MARTIN-MCALLISTER CONSULTING PERSONNEL EVALUATIONS (4) 7,200.00 SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 14.19 OCT 2023 LTD PREMIUM 49.20 MINNESOTA OCCUPATIONAL HEALTH DRUG SCREENS (2) 136.00_ TOTAL: 7,399.39 FINANCE GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 66.67_ TOTAL: 66.67 LEGAL GENERAL CAMPBELL KNUTSON, P.A. AUGUST 2023 LEGAL FEES 13,676.75 LEVANDER, GILLEN & MILLER, P.A. SERVICES THROUGH 08/25/23 2,250.00 SERVICES THROUGH 08/25/23 877.75 SERVICES THROUGH 08/25/23 682.00 SERVICES THROUGH 08/25/23 62.00_ TOTAL: 17,548.50 FACILITY MANAGEMENT GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 13.31 HOMETOWN ACE HARDWARE C.H. BEE KILLER 13.66 ECOLAB PEST ELIMINATION DIVISION C.S. PEST CONTROL 91.00_ TOTAL: 117.97 COMMUNITY DEVELOPMENT GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 19.89_ TOTAL: 19.89 I.T. GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 53.91_ TOTAL: 53.91 POLICE GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 634.62_ TOTAL: 634.62 BUILDING & INSPECTIONS GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 73.18 OCT 2023 LTD PREMIUM 15.22 KLETSCHKA INSPECTIONS, LLC ELECTRICAL INSPECTIONS 4,230.40 TANYA EDMISON EDMISON CLASS REIMBURSEMEN 50.00_ TOTAL: 4,368.80 PUBLIC WORKS GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 43.91 MICHAEL SCOTT ANDERSON BRIDGE INSPECTIONS 500.00_ TOTAL: 543.91 PUBLIC WORKS STREETS GENERAL PRECISE MOBILE RESOURCE MGMT. LLC 10MB FLAT DATA PLAN US W/ 150.00 RUBINS LAWNCARE, LLC LAWN MOWING 3,150.00 SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 72.93 HOMETOWN ACE HARDWARE WASP KILLER,KEYTAGS,LOCK,F 25.56 NAPA AUTO PARTS CONNECTOR 13.22 BENJAMIN BANITT BANITT - JEANS 75.06 POMP'S TIRE SERVICE, INC. TIRES 589.70 ACE TRAILER SALES 1" TANG WASHER - EZ LUBE 7.00 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 2 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ BOYER FORD TRUCKS/DBA ALLIANCE PARTS 2,038.89 CITY OF ST PAUL ASPHALT MIX - 11 7,467.68 TERRYS HARDWARE, INC. PROPANE 22.99 CHAIN SAW PARTS 49.90 PROPANE 74.98 BLADE 7.89 BLADE 8.95 LUBRICANTS 33.66 PLUG, ROPE 8.64 NUSS TRUCK & EQUIPMENT PARTS AND SERVICE 31,222.74 UNLIMITED SUPPLIES INC. MISCELLANEOUS SUPPLIES 206.86 ZIEGLER, INC. FILTER, ELEMENT, KIT 253.46 FILTER 56.32_ TOTAL: 45,536.43 PUBLIC WORKS STR. LIGH GENERAL DAKOTA ELECTRIC ASSN STREET LIGHTS 3,024.00_ TOTAL: 3,024.00 PARKS & RECREATION GENERAL HASTINGS SCHOOL DISTRICT #200 SEPT 23 TILDEN COST SHARE 2,500.00 TERRYS HARDWARE, INC. FORESTRY SUPPLIES 83.84_ TOTAL: 2,583.84 NON-DEPARTMENTAL PARKS MANSFIELD OIL COMPANY 812 GALLONS OF DIESEL 3,261.60 VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 12.20_ TOTAL: 3,273.80 PARKS & RECREATION PARKS CINTAS CORPORATION NO 2 MATS & RAGS FOR SHOP 123.58 INNOVATIVE OFFICE SOLUTIONS, LLC MISCELLANEOUS OFFICE SUPPL 27.79 SCHAEFER LETTERING CONCRETE TABLE LETTERING 375.00 SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 158.87 HOMETOWN ACE HARDWARE MISC SUPPLIES 46.82 PLUG & BOLTS 19.76 WALLIN - BULB 22.49 WALLIN BULBS 37.79 SHOP SUPPLIES 79.02 SCREWS 2.60 TROPHIES PLUS REPLACEMENT BENCH PLATES 60.00 MICHAEL A. PATRICK PATRICK SOFTBALL UMP 252.00 THIERRY AUGE AUGE SOFTBALL UMP 180.00 RIVERVIEW PROMOTIONS LONG SLEEVE SHIRTS - SEASO 165.50 COURT SURFACES & REPAIR, INC. BASKETBALL COURT RESURFACI 20,900.00 BECKY MAY WILKERSON WILKERSON SAND VOLLEYBALL 100.00 ECOLAB PEST ELIMINATION DIVISION J.M. PEST CONTROL 125.00 GERLACH OUTDOOR POWER EQUIP SPINDLE FOR FERRIS ZERO TU 272.99 MTI DISTRIBUTING COMPANY BLADES FOR 5910 402.33 SHERWIN-WILLIAMS TAPE FOR GARBAGE 86.11 TERRYS HARDWARE, INC. DRILL BITS 64.43 SCREW RETURN 11.49- BOLTS 13.86 BOLTS 3.96 SAND MIX FOR SIGN AT CP 7.75 LEVEE - GARBAGE CAN 49.97 LEVEE - RETURN GARBAGE CAN 15.00- THE TREE HOUSE PLANTS FOR POTS 91.53_ TOTAL: 23,642.66 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 3 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL CABLE TV VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 3.12_ TOTAL: 3.12 CABLE CABLE TV SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 2.50_ TOTAL: 2.50 HERITAGE PRESERVATION HERITAGE PRESERVAT SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 4.80_ TOTAL: 4.80 NON-DEPARTMENTAL FIRE & AMBULANCE VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 76.60_ TOTAL: 76.60 FIRE FIRE & AMBULANCE SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 71.24 HOMETOWN ACE HARDWARE LP TANK 19.79 POMP'S TIRE SERVICE, INC. TIRES FOR ENGINE 4 2,040.17 INTERSTATE POWER SYSTEMS REPAIR TO LADDER 1 4,847.95 MACQUEEN EQUIPMENT, INC. FF BOOTS 1,174.27 TERRYS HARDWARE, INC. LP TANK REFILL 32.98_ TOTAL: 8,186.40 AMBULANCE FIRE & AMBULANCE SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 289.76 BOUND TREE MEDICAL LLC MEDICAL SUPPLIES 1,090.10 MEDICAL SUPPLIES 172.45 LINDE GAS & EQUIPMENT INC. OXYGEN 163.91_ TOTAL: 1,716.22 LEDUC LEDUC HISTORIC EST SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 2.35_ TOTAL: 2.35 ECONOMIC DEVELOPMENT HEDRA SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 32.94 LEVANDER, GILLEN & MILLER, P.A. SERVICES THROUGH 08/25/23 434.00_ TOTAL: 466.94 INVALID DEPARTMENT TIF 9 BLOCK 28 LEVANDER, GILLEN & MILLER, P.A. SERVICES THROUGH 08/25/23 26.00 SERVICES THROUGH 08/25/23 84.00 SERVICES THROUGH 08/25/23 12.00_ TOTAL: 122.00 PUBLIC WORKS 2023 IMPROVEMENTS BCM CONSTRUCTION, INC. 2023 NEIGHBORHOOD IMPROVEM 727,020.70 BARR ENGINEERING CO. PROFESSIONAL SERVICES 1,190.00_ TOTAL: 728,210.70 NON-DEPARTMENTAL WATER VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 5.70_ TOTAL: 5.70 PUBLIC WORKS WATER HAWKINS INC CHLORINE 1,417.28 IN CONTROL, INC. ENGINEERING SERVICES-SCHED 875.00 BAUER SERVICES EAGLE BLUFF PRESSURE STATI 1,390.00 REPAIR SHUTOFF VALVE-CREAM 7,500.00 SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 74.77 HOMETOWN ACE HARDWARE BATTERY 6.29 EDGER BLADE 10.79 SPRINKLER, ELBOWS 14.18 FASTENERS, WIPES, DISINFEC 36.39 CORE & MAIN LP METER REPLACEMENT PROJECT 38,121.30 ELECTRO WATCHMAN, INC CODE PANEL REMOVAL/ADDITIO 25.00 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 4 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ GOPHER STATE ONE-CALL INC TOTAL BILLABLE TICKETS - 2 380.70 GRAPHIC DESIGN UTILITY BILLING STATEMENTS 265.67 UTILITY BILLING STATEMENTS 1,341.58 #10 WINDOW SECURITY ENVELO 807.00 TERRYS HARDWARE, INC. BATTERY 16.99 SPACKLING, SIGN 13.48 SIGNS 17.97_ TOTAL: 52,314.39 NON-DEPARTMENTAL WASTEWATER VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 5.56_ TOTAL: 5.56 PUBLIC WORKS WASTEWATER SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 53.35 HOMETOWN ACE HARDWARE MISCELLANEOUS FASTENERS 25.79 NIPPLE, FASTENERS 12.24 4 CORNERS READY MIX WESTWOOD LIFT GENERATOR 698.00 GRAPHIC DESIGN UTILITY BILLING STATEMENTS 265.77 #10 WINDOW SECURITY ENVELO 807.00 MACQUEEN EQUIPMENT, INC. SWIVEL JNT, TIGER TAIL 730.61 MCES WASTE WATER SERVICES DEF R 138,272.63 CENTERPOINT ENERGY SERVICE AT 615 19TH ST W 5.80_ TOTAL: 140,871.19 NON-DEPARTMENTAL STORM WATER UTILIT VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 5.56_ TOTAL: 5.56 PUBLIC WORKS STORM WATER UTILIT SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 55.70 POMP'S TIRE SERVICE, INC. TIRES 598.70 GRAPHIC DESIGN UTILITY BILLING STATEMENTS 265.66 #10 WINDOW SECURITY ENVELO 807.00_ TOTAL: 1,727.06 NON-DEPARTMENTAL ARENA VISION SERVICE PLAN INSURANCE CO. SEPT 2023 VISION PREMIUM 13.04_ TOTAL: 13.04 PARKS & RECREATION ARENA RIEDELL SHOES, INC. RENTAL SKATES 838.00 CLAREY'S SAFETY EQUIPMENT, INC CALIBRATION GAS 409.39 HUEBSCH LAUNDRY CO. ENTRY RUG SERVICE 53.78 ENTRY RUG SERVICE 53.78 SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 33.00 TERRYS HARDWARE, INC. SCREWS 0.64_ TOTAL: 1,388.59 PUBLIC WORKS HYDRO ELECTRIC SUN LIFE ASSUANCE COMPANY OF CANADA OCT 2023 LTD PREMIUM 6.61 J. F. BRENNAN CO. INC. HYDROGRAPHIC SURVEY 7,205.00 TERRYS HARDWARE, INC. SCOOP 32.98_ TOTAL: 7,244.59 MISCELLANEOUS VEHICLE AND EQUIP HASTINGS VEHICLE REGIS. TITLE/REGIST-23 CHEV SILVE 2,799.04_ TOTAL: 2,799.04 NON-DEPARTMENTAL ESCROW - DEV/ENG/T LEVANDER, GILLEN & MILLER, P.A. SERVICES THROUGH 08/25/23 74.25 SERVICES THROUGH 08/25/23 90.00 SERVICES THROUGH 08/25/23 111.50 SERVICES THROUGH 08/25/23 471.00 SERVICES THROUGH 08/25/23 247.00 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 5 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ SERVICES THROUGH 08/25/23 61.50 SERVICES THROUGH 08/25/23 48.50 SERVICES THROUGH 08/25/23 28.00 BARR ENGINEERING CO. PROFESSIONAL SERVICES 1,520.00 VIII-01 09-14-2023 10:27 AM Council Report SEPTEMBER 19TH PYMTS, 2023 PAGE: 6 * REFUND CHECKS * DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL WATER CARDINAL, CARY US REFUNDS 10.66 LANDSBERGER, KELLY US REFUNDS 13.10 HOWLEY, MARK US REFUNDS 114.59 ERICKSON, GREGORY/STEPHAN US REFUNDS 36.34 BEATTY, GEORGE W US REFUNDS 20.72 KANE, JACQUELINE A US REFUNDS 96.62 POTTER, ADAM US REFUNDS 0.06 STOTKO-SPEEDLING CONSTRUCTION US REFUNDS 21.55_ TOTAL: 2,965.39 =============== FUND TOTALS ================ 101 GENERAL 87,075.47 200 PARKS 26,916.46 205 CABLE TV 5.62 210 HERITAGE PRESERVATION 4.80 213 FIRE & AMBULANCE 9,979.22 220 LEDUC HISTORIC ESTATE 2.35 407 HEDRA 466.94 413 TIF 9 BLOCK 28 122.00 483 2023 IMPROVEMENTS 728,210.70 600 WATER 52,633.73 601 WASTEWATER 140,876.75 603 STORM WATER UTILITY 1,732.62 615 ARENA 1,401.63 620 HYDRO ELECTRIC 7,244.59 703 VEHICLE AND EQUIP FUND 2,799.04 807 ESCROW - DEV/ENG/TIF-HRA 2,651.75 -------------------------------------------- GRAND TOTAL: 1,062,123.67 -------------------------------------------- TOTAL PAGES: 6 VIII-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Paige Marschall Bigler, Recreation Program Specialist Date: September 18, 2023 Item: Accept Donation to the Parks and Recreation Department Council Action Requested: Council is asked to accept a donation in the amount of $445.00, made to the Parks and Recreation Department and has designated that this donation be used for Paws in the Park. Background Information: Fluegel’s Lawn, Garden and Pet Supply has made this donation to be used for Paws in the Park. Financial Impact: Increase the Parks and Recreation donation account by $445.00 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: • Resolution VIII-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 09 - - 23 A RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION OF A DONATION TO THE PARKS AND RECREATION DEPARTMENT WHEREAS, Fluegel’s Lawn Garden and Pet Supply has presented to the City Parks & Recreation Department a donation of $445.00 and has designated that this donation be used for Paws in the Park; and WHEREAS, the City Council is appreciative of the donation and commends Fluegel’s Lawn, Garden and Pet Supply for their civic efforts, NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; 1. That the donation is accepted and acknowledged with gratitude; and 2. That the donation will be appropriated for Paws in the Park. Adopted this 18th day of September, 2023 ______________________________ Mary D. Fasbender, Mayor ATTEST: ____________________________ Kelly Murtaugh, City Clerk VIII-02 City of Hastings  101 Fourth Street East  Hastings, MN 55033-1944  Phone: 651-480-2350  www.hastingsmn.gov City Council Memorandum To: Mayor Fasbender & City Council Members From: John Townsend, Fire Chief Date: September 7, 2023 Item: Approve Services Agreement Amendment with ImageTrend, LLC Council Action Requested: Approve services agreement amendment with ImageTrend, LLC Background Information: The 2023 budget includes upgrading our records management system. This agreement includes fire investigations, direct messaging modules, as well as training, for improvement of both the users and system. Financial Impact: 2023 budgeted item, records management upgrade, no impact to budget Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: Software or services agreement amendment VIII-03 1 SOFTWARE OR SERVICES AGREEMENT AMENDMENT Contract Details Original Contract Number (“Original Contract”) 256809 Amendment Contract Number 00007546.0 This Agreement (hereinafter referred to as this “Agreement”) is made as of the date executed by the last of the parties named below: BETWEEN: ImageTrend, LLC, Minnesota corporation (hereinafter “ImageTrend”) AND: City of Hastings Fire (hereinafter “Client”). The Client and ImageTrend mutually agree to the following changes to the Original Contract between City of Hastings Fire and ImageTrend, LLC. 1. The purpose of this Amendment is for Client to modify the Original Contract and Client’s existing product orders and/or add new product items as outlined below in the Price Sheet attachment. 2. This Amendment is coterminous with the Original Contract. The Original Contract’s term remains the same. All other terms and conditions remain the same. 3. Out of Scope customization is $225.00/hour and performed only under mutually agreed upon Statement of Work. IN WITNESS WHEREOF: the undersigned parties, each having authority to bind their respective organizations, hereby agree. City of Hastings ImageTrend Signature: Signature: Print Name: Print Name: Title: Title: Date: Date: VIII-03 2 PRICE SHEET AND WORK ORDER ATTACHMENT The prices below are based on the following SaaS transaction volumes, as provided by Client: One Time Fees Description SKU Unit Price Qty Extended Amount Webinar Training 2hr Session ELT.006.003.009 $450.00 2 $900.00 Onsite Training Session - Lakeville - 4 Hours ELT.006.003.021 $700.00 1 $700.00 Direct Messaging Connection Fee - Per Agency Connection ELT.002.010.029 $200.00 20 $4,000.00 Total One-Time Fees: $5,600.00 Recurring Fees Description SKU Unit Price Qty Extended Amount Connect Conference Registration (per Attendee) ELT.007.004.001 $645.00 2 $1,290.00 Investigations ELT.001.002.018 $1,250.00 1 $1,250.00 Standard Direct Messaging - EMS Agency ELT.002.010.023 $720.00 1 $720.00 Total Recurring Fees: $3,260.00 TOTAL YEAR 1: $8,860.00 Send Invoices To: John Townsend jtownsend@hastingsmn.gov 115 W. 5th Street Hastings, MN 55033 Payment Terms: 1. “One Time Fees” are due once upon contract signature. 2. “Recurring Fees” are annual fees which are due once upon contract signature and recur each year. 3. The Recurring Fees will escalate in price annually by 7% beginning one year from the last signature hereto and each year thereafter. 4. ImageTrend may temporarily suspend performance (e.g. cease to provide access, hosting, support) due to Client’s breach of contract provided Client shall have 30 days to cure such breach before ImageTrend may suspend performance. 5. ImageTrend may charge to Client a late fee of 1.5% per month, or the highest rate allowed under the law, whichever is lower, on any overdue amounts. Client also agrees ImageTrend may charge to Client all reasonable costs and expenses of collection, including attorneys' fees where, in ImageTrend’s discretion, payments are consistently deficient or late. VIII-03 3 6. All Annual SaaS Fees are based upon anticipated transaction volumes (as provided by Client) and are subject to an annual usage audit. ImageTrend reserves the right to increase fees in accordance with increased transaction volume per the Unit Price listed in the tables above. 7. ImageTrend will not be responsible for third-party fees related to this Agreement unless specifically outlined by this Agreement. VIII-03 Quantity Unit Price Amount Quantity Amount Quantity Amount Pay Estimate #4 Quantity Amount 1 CLEARING TREE 14 650.00$ 9,100.00$ 17 11,050.00$ 17 11,050.00$ -$ 2 GRUBBING TREE 15 315.00$ 4,725.00$ 19 5,985.00$ 19 5,985.00$ -$ 3 REMOVE EXISTING GATE VALVE EA 25 200.00$ 5,000.00$ 25 5,000.00$ 22 4,400.00$ 3 600.00$ 4 REMOVE EXISTING HYDRANT & GATE VALVE EA 4 515.00$ 2,060.00$ 4 2,060.00$ 2 1,030.00$ 2 1,030.00$ 5 REMOVE EXISTING STORM SEWER STRUCTURE (ALL DEPTHS & SIZES) EA 60 415.00$ 24,900.00$ 61 25,315.00$ 54 22,410.00$ 7 2,905.00$ 6 REMOVE EXISTING SANITARY MANHOLE EA 4 350.00$ 1,400.00$ 4 1,400.00$ 4 1,400.00$ -$ 7 REMOVE EXISTING CONCRETE PEDESTRIAN RAMP EA 39 170.00$ 6,630.00$ 39 6,630.00$ 37 6,290.00$ 2 340.00$ 8 SALVAGE AND REINSTALL MAIL BOX EA 7 185.00$ 1,295.00$ -$ -$ -$ 9 INSTALL MAIL BOX EA 3 185.00$ 555.00$ -$ -$ -$ 10 SAWCUT EXISTING BITUMINOUS PAVEMENT LF 750 4.00$ 3,000.00$ -$ -$ -$ 11 SAWCUT EXISTING CONCRETE PAVEMENT LF 50 8.00$ 400.00$ -$ -$ -$ 12 REMOVE CONCRETE CURB & GUTTER LF 10670 3.60$ 38,412.00$ 10670 38,412.00$ 10670 38,412.00$ -$ 13 REMOVE EXISTING STORM SEWER PIPE (ALL DEPTHS & SIZES) LF 1358 8.50$ 11,543.00$ 1358 11,543.00$ 1358 11,543.00$ -$ 14 REMOVE EXISTING SANITARY SEWER PIPE (ALL DEPTHS & SIZES) LF 80 8.50$ 680.00$ 80 680.00$ 80 680.00$ -$ 15 SAND FILL AND ABANDON WATER MAIN LF 800 7.00$ 5,600.00$ 396 2,772.00$ 396 2,772.00$ -$ 16 REMOVE EXISTING WATER MAIN (ALL DEPTHS & SIZES) LF 243 14.00$ 3,402.00$ 243 3,402.00$ 243 3,402.00$ -$ 17 REMOVE CONCRETE SIDEWALK SY 2100 9.00$ 18,900.00$ 2122 19,098.00$ 1038 9,342.00$ 1084 9,756.00$ 18 REMOVE CONCRETE DRIVEWAY SY 469 9.00$ 4,221.00$ 380 3,420.00$ 135 1,215.00$ 245 2,205.00$ 19 REMOVE BITUMINOUS DRIVEWAY PAVEMENT SY 60 11.00$ 660.00$ -$ -$ -$ 20 REMOVE BITUMINOUS PAVEMENT SY 25450 0.80$ 20,360.00$ 25450 20,360.00$ 25450 20,360.00$ -$ 21 REMOVE MAIL BOX SPECIAL EA 2 350.00$ 700.00$ -$ -$ -$ 22 SUBGRADE PREPARATION OF RECLAIMED SURFACE SY 11140 1.10$ 12,254.00$ 6850 7,535.00$ -$ 6850 7,535.00$ 23 COMMON EXCAVATION (EV) CY 6330 19.75$ 125,017.50$ 6330 125,017.50$ 5850 115,537.50$ 480 9,480.00$ 24 COMMON EXCAVATION TRAIL (EV) CY 1040 17.00$ 17,680.00$ 890 15,130.00$ 225 3,825.00$ 665 11,305.00$ 25 HAUL EXCESS RECLAIM MATERIAL (LV) CY 1014 9.50$ 9,633.00$ 656 6,232.00$ -$ 656 6,232.00$ 26 SUBGRADE CORRECTION (EV) CY 1650 6.50$ 10,725.00$ 886 5,759.00$ 118 767.00$ 768 4,992.00$ 27 CRUSHED ROCK BORROW MATERIAL (LV) CY 1650 15.60$ 25,740.00$ 317 4,945.20$ -$ 317 4,945.20$ 28 GRANULAR PIPE BEDDING (LV) CY 50 30.00$ 1,500.00$ -$ -$ -$ 29 SALVAGE AGGREGATE FROM STOCKPILE (MILLINGS) CY 50 25.00$ 1,250.00$ -$ -$ -$ 30 AGGREGATE BASE CLASS 5 (STREET) TON 10511 12.75$ 134,015.25$ 11233 143,220.75$ 8434 107,533.50$ 2799 35,687.25$ 31 AGGREGATE BASE CLASS 5 (TRAIL OR WALK) TON 1281 21.00$ 26,901.00$ 1100 23,100.00$ 405 8,505.00$ 695 14,595.00$ 32 BIT JOINT SAWING AND SEALING LF 6780 4.20$ 28,476.00$ -$ -$ -$ 33 JOINT ADHESIVE LF 17065 0.80$ 13,652.00$ -$ -$ -$ 34 FULL DEPTH PAVEMENT RECLAMATION - 8-10 INCHES SY 11140 3.25$ 36,205.00$ 11140 36,205.00$ -$ 11140 36,205.00$ 35 BITUMINOUS MATERIAL FOR TACK COAT GAL 5264 5.25$ 27,636.00$ -$ -$ -$ 36 BITUMINOUS DRIVEWAY SPWEB240B/SPNW230B SY 60 63.00$ 3,780.00$ -$ -$ -$ 37 BITUMINOUS WEAR COURSE MIX SPWEB340C (STREET) TON 3847 78.50$ 301,989.50$ -$ -$ -$ 38 BITUMINOUS NON WEAR COURSE MIX SPNWB330C (STREET) TON 6370 78.50$ 500,045.00$ 5143 403,725.50$ 1814 142,399.00$ 3329 261,326.50$ 39 BITUMINOUS WEAR COURSE MIX: SPWEB340B (TRAIL) TON 755 84.00$ 63,420.00$ -$ -$ -$ 40 12" RCP DES 3006 CL III LF 58 127.00$ 7,366.00$ 58 7,366.00$ 23 2,921.00$ 35 4,445.00$ 41 15" RCP DES 3006 CL III LF 1911 84.50$ 161,479.50$ 1933 163,338.50$ 1763 148,973.50$ 170 14,365.00$ 42 18" RCP DES 3006 CL III LF 111 101.00$ 11,211.00$ 111 11,211.00$ 94 9,494.00$ 17 1,717.00$ 43 21" RCP DES 3006 CL III LF 15 108.00$ 1,620.00$ 15 1,620.00$ 15 1,620.00$ -$ 44 CONNECT TO EXISTING STORM SEWER STRUCTURE EA 1 1,500.00$ 1,500.00$ 1 1,500.00$ 1 1,500.00$ -$ 45 CONNECT TO EXISTING STORM SEWER EA 29 400.00$ 11,600.00$ 31 12,400.00$ 25 10,000.00$ 6 2,400.00$ 46 CONST DRAINAGE STRUCTURE 24" X 36" EA 40 3,350.00$ 134,000.00$ 42 140,700.00$ 36 120,600.00$ 6 20,100.00$ ITEM NO. DESCRIPTION UNIT ORIGINAL BID COMPLETED Total To Date Previous Payments This Pay Period Request For Payment Date: 8/31/2023 Project: 2023 Neighborhood Infrastructure Improvements Contractor: BCM Construction Inc. Request Number: 4 Payment Period: 8/1/2023 - 8/31/2023 Hastings Project 2023-1 2023 Neighborhood Infrastructure Improvements Page 1 of 4 VIII-04 Quantity Unit Price Amount Quantity Amount Quantity Amount Pay Estimate #4 Quantity Amount 47 CONST DRAINAGE STRUCTURE 4020 48" DIA EA 20 4,150.00$ 83,000.00$ 22 91,300.00$ 17 70,550.00$ 5 20,750.00$ 48 REPLACE EXISTING STORM SEWER CASTING SPECIAL EA 8 1,350.00$ 10,800.00$ -$ -$ -$ 49 ADJUST FRAME RING AND CASTING (SPECIAL) EA 21 700.00$ 14,700.00$ -$ -$ -$ 50 HYDRODYNAMIC SEPARATOR EA 3 18,200.00$ 54,600.00$ 3 54,600.00$ 1 18,200.00$ 2 36,400.00$ 51 GEOTEXTILE FILTER MATERIAL TYPE IV SY 50 5.00$ 250.00$ -$ -$ -$ 52 4" CONCRETE SIDEWALK SF 2750 7.30$ 20,075.00$ 1413 10,314.90$ 1413 10,314.90$ -$ 53 6" CONCRETE SIDEWALK SF 390 9.40$ 3,666.00$ 335 3,149.00$ 335 3,149.00$ -$ 54 B618 CONCRETE CURB & GUTTER LF 10920 19.60$ 214,032.00$ 7699 150,900.40$ 7699 150,900.40$ -$ 55 CONCRETE VALLEY GUTTER LF 400 37.00$ 14,800.00$ -$ -$ -$ 56 REMOVE & REPLACE EXISTING CURB & GUTTER (ALL TYPES & SIZES) LF 1485 31.25$ 46,406.25$ 909 28,406.25$ 398 12,437.50$ 511 15,968.75$ 57 6" CONCRETE DRIVEWAY PAVEMENT SY 530 67.00$ 35,510.00$ 155 10,385.00$ 135 9,045.00$ 20 1,340.00$ 58 CONCRETE PEDESTRIAN RAMP EA 44 2,150.00$ 94,600.00$ 13 27,950.00$ 13 27,950.00$ -$ 59 TRAFFIC CONTROL LS 1 12,600.00$ 12,600.00$ 0.5 6,300.00$ 0.5 6,300.00$ -$ 60 ROCK CONSTRUCTION EXIT EA 7 700.00$ 4,900.00$ -$ -$ -$ 61 STORM DRAIN INLET PROTECTION EA 65 125.00$ 8,125.00$ 65 8,125.00$ 65 8,125.00$ -$ 62 SILT FENCE, TYPE MS LF 250 5.00$ 1,250.00$ -$ -$ -$ 63 FLOTATION SILT CURTAIN, TYPE MOVING WATER LF 50 25.00$ 1,250.00$ 50 1,250.00$ -$ 50 1,250.00$ 64 EROSION & SEDIMENT CONTROL LS 1 4,500.00$ 4,500.00$ 1 4,500.00$ 1 4,500.00$ -$ 65 LOAM TOPSOIL BORROW (LV) CY 1550 25.00$ 38,750.00$ -$ -$ -$ 66 EROSION CONTROL BLANKETS CATEGORY 4 SY 50 4.20$ 210.00$ -$ -$ -$ 67 SEEDING, BLOWN COMPOST SY 12025 5.50$ 66,137.50$ -$ -$ -$ 68 PAVEMENT MESSAGE PAINT (RIGHT OR LEFT ARROW) EA 4 84.00$ 336.00$ -$ -$ -$ 69 4" SOLID LINE PAINT LF 10850 0.20$ 2,170.00$ -$ -$ -$ 70 12" SOLID LINE PAINT LF 80 12.00$ 960.00$ -$ -$ -$ 71 4" BROKEN LINE PAINT LF 1040 0.20$ 208.00$ -$ -$ -$ 72 CROSSWALK PAINT SF 108 9.50$ 1,026.00$ -$ -$ -$ 73 TEMPORARY BYPASS PUMPING LS 1 2,500.00$ 2,500.00$ 1 2,500.00$ 1 2,500.00$ -$ 74 CONNECT TO EXISTING SANITARY SEWER STRUCTURE EA 1 1,300.00$ 1,300.00$ 1 1,300.00$ -$ 1 1,300.00$ 75 CONNECT TO EXISTING SANITARY SEWER EA 1 980.00$ 980.00$ 1 980.00$ 1 980.00$ -$ 76 CONNECT TO EXISTING SANITARY SEWER SERVICE EA 10 500.00$ 5,000.00$ 10 5,000.00$ -$ 10 5,000.00$ 77 4" ON 8" PVC WYE EA 10 340.00$ 3,400.00$ 10 3,400.00$ 10 3,400.00$ -$ 78 4" PVC SDR 26 (FOR SERVICES) LF 330 48.00$ 15,840.00$ 275 13,200.00$ 15 720.00$ 260 12,480.00$ 79 8" PVC SDR 35 LF 658 59.00$ 38,822.00$ 658 38,822.00$ 638 37,642.00$ 20 1,180.00$ 80 10" PVC SDR 35 LF 306 72.00$ 22,032.00$ 306 22,032.00$ 306 22,032.00$ -$ 81 8" DIP SANITARY SEWER (ALL DEPTHS) LF 20 180.00$ 3,600.00$ 20 3,600.00$ 20 3,600.00$ -$ 82 CONSTRUCT 8" OUTSIDE DROP LF 4 1,200.00$ 4,800.00$ 4 4,800.00$ 4 4,800.00$ -$ 83 TELEVISE SANITARY SEWER LF 964 4.00$ 3,856.00$ -$ -$ -$ 84 REPLACE EXISTING SANITARY SEWER CASTING EA 4 1,100.00$ 4,400.00$ -$ -$ -$ 85 48" DIA. SSMH EA 5 6,000.00$ 30,000.00$ 5 30,000.00$ 5 30,000.00$ -$ 86 EXTRA DEPTH MH 10'+ LF 3 420.00$ 1,260.00$ 3 1,260.00$ 3 1,260.00$ -$ 87 CONNECT TO EXISTING WATERMAIN EA 18 900.00$ 16,200.00$ 19 17,100.00$ 18 16,200.00$ 1 900.00$ 88 CONNECT TO EXISTING WATER SERVICE EA 11 300.00$ 3,300.00$ 11 3,300.00$ -$ 11 3,300.00$ 89 1" CORP STOP EA 10 550.00$ 5,500.00$ 10 5,500.00$ -$ 10 5,500.00$ 90 2" CORP STOP EA 1 880.00$ 880.00$ 1 880.00$ -$ 1 880.00$ 91 1" CURB STOP AND BOX EA 10 600.00$ 6,000.00$ 10 6,000.00$ -$ 10 6,000.00$ 92 2" CURB STOP AND BOX EA 1 1,060.00$ 1,060.00$ 1 1,060.00$ -$ 1 1,060.00$ 93 HYDRANT 7.5' BURY W/GATE VALVE EA 5 8,400.00$ 42,000.00$ 5 42,000.00$ 3 25,200.00$ 2 16,800.00$ 94 REPLACE EXISTING GATE VALVE BOX EA 7 750.00$ 5,250.00$ 6 4,500.00$ 6 4,500.00$ -$ 95 CURB STOP COVER CASTING EA 3 360.00$ 1,080.00$ -$ -$ -$ 96 ADJUST GATE VALVE SPECIAL - BOLT REPLACEMENT EA 7 1,650.00$ 11,550.00$ 6 9,900.00$ 6 9,900.00$ -$ 97 ADJUST EXISTING GATE VALVE BOX EA 24 160.00$ 3,840.00$ -$ -$ -$ 98 6" GATE VALVE & BOX EA 15 2,225.00$ 33,375.00$ 15 33,375.00$ 14 31,150.00$ 1 2,225.00$ 99 8" GATE VALVE & BOX EA 7 3,050.00$ 21,350.00$ 8 24,400.00$ 8 24,400.00$ -$ 100 12" GATE VALVE & BOX EA 2 5,350.00$ 10,700.00$ 2 10,700.00$ 2 10,700.00$ -$ 101 CURB STOP BOX REPAIR/EXTENSION EA 1 650.00$ 650.00$ -$ -$ -$ 102 CONSTRUCT TEMPORARY WATERMAIN & SERVICES LF 1850 6.75$ 12,487.50$ 3141 21,201.75$ 3141 21,201.75$ -$ ITEM NO. DESCRIPTION UNIT ORIGINAL BID COMPLETED Total To Date Previous Payments This Pay Period Hastings Project 2023-1 2023 Neighborhood Infrastructure Improvements Page 2 of 4 VIII-04 Quantity Unit Price Amount Quantity Amount Quantity Amount Pay Estimate #4 Quantity Amount 103 CURB STOP EXTRA DEPTH LF 1 415.00$ 415.00$ -$ -$ -$ 104 1" TYPE K COPPER W/FITTINGS LF 300 54.00$ 16,200.00$ 281 15,174.00$ -$ 281 15,174.00$ 105 2" HDPE (CTS) WATER SERVICE LF 38 75.00$ 2,850.00$ 61 4,575.00$ -$ 61 4,575.00$ 106 6" C-900 PVC W/FITTINGS LF 1460 56.00$ 81,760.00$ 1436 80,416.00$ 841 47,096.00$ 595 33,320.00$ 107 6" DIP W/FITTINGS LF 70 120.00$ 8,400.00$ 150 18,000.00$ 130 15,600.00$ 20 2,400.00$ 108 8" C-900 PVC W/FITTINGS LF 2940 65.00$ 191,100.00$ 2940 191,100.00$ 2940 191,100.00$ -$ 109 12" C-900 PVC W/FITTINGS LF 92 180.00$ 16,560.00$ 83 14,940.00$ 83 14,940.00$ -$ 110 2" INSULATION 4'X8' SHEET SY 15 38.00$ 570.00$ -$ -$ -$ 111 REMOVE ORNAMENTAL METAL RAILING LF 116 37.00$ 4,292.00$ -$ -$ -$ 112 REMOVE CONCRETE APPROACH PANELS SF 180 48.00$ 8,640.00$ 180 8,640.00$ -$ 180 8,640.00$ 113 REMOVE CONCRETE SIDEWALK SF 220 8.00$ 1,760.00$ 220 1,760.00$ -$ 220 1,760.00$ 114 SIDEWALK CONCRETE (3S52) SF 878 59.00$ 51,802.00$ 878 51,802.00$ -$ 878 51,802.00$ 115 REINFORCEMENT BARS (EPOXY COATED) LB 3315 3.15$ 10,442.25$ 3315 10,442.25$ -$ 3315 10,442.25$ 116 BRIDGE APPROACH PANELS SY 45 800.00$ 36,000.00$ 45 36,000.00$ -$ 45 36,000.00$ 117 REMOVE CONCRETE BRIDGE DECK SF 6 210.00$ 1,260.00$ 6 1,260.00$ -$ 6 1,260.00$ 118 REMOVE CONCRETE BRIDGE SIDEWALK LF 115 28.00$ 3,220.00$ 115 3,220.00$ -$ 115 3,220.00$ 119 ANCHORAGES TYPE REINF BARS EA 254 48.00$ 12,192.00$ 254 12,192.00$ -$ 254 12,192.00$ 120 RECONSTRUCT EXPANSION JOINT TYPE B LF 7 1,575.00$ 11,025.00$ -$ -$ -$ 121 CONCRETE SURFACE REPAIR, TYPE 2 SF 6 210.00$ 1,260.00$ -$ -$ -$ 122 WIRE FENCE, DESIGN S-1 (VINYL COATED) LF 111 260.00$ 28,860.00$ -$ -$ -$ 3,368,721.25$ ORIGINAL BID PROJECTS: This Period Total to Date 2023-1 Neighborhood Infrastructure Improvements $765,284.95 $2,419,645.00 SUBTOTALS: $2,419,645.00 $1,654,360.05 $765,284.95 TOTAL TO DATE PREVIOUS PAYMENTS CURRENT PERIOD ITEM NO. DESCRIPTION UNIT ORIGINAL BID COMPLETED Total To Date Previous Payments This Pay Period Hastings Project 2023-1 2023 Neighborhood Infrastructure Improvements Page 3 of 4 VIII-04 Pay Estimate Number Period Retainage* 1 5/1/2023 - 5/31/2023 2 6/1/2023 - 6/30/2023 3 7/1/2023 - 7/31/2023 4 (Current) 8/1/2023 - 8/31/2023 $38,264.25 $38,264.25 *A 5% retainage is withheld on all payments after total amount completed to date exceeds 50% of original bid $2,419,645.00 $38,264.25 $1,654,360.05 $727,020.70 Application for Payment Number: 4 BCM Construction Inc. _________________________________________________________ __________________ Contractor Date _________________________________________________________ __________________ Engineer Date ___________________________________________________________________________ Approved by Owner Date TOTALS TO DATE: $2,381,380.75 $2,419,645.00 $765,284.95 Payment $412,385.00 $663,034.95 $578,940.10 $727,020.70 Total Amount Due: Contractor: CITY OF HASTINGS2023 Neighborhood Infrastructure ImprovementsPayment Summary Total Completed to Date: Less Retainage: Less Previous Payment: Pay Period Total $412,385.00 $663,034.95 $578,940.10 Hastings Project 2023-1 2023 Neighborhood Infrastructure Improvements Page 4 of 4 9/7/23 9/8/23 Aaron Miller Digitally signed by Aaron MillerDN: C=US, E=amiller@bcmgrading.com, CN=Aaron MillerReason: I am approving this documentDate: 2023.09.07 16:26:14-05'00' VIII-04 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: September 18, 2023 Item: Speedway Gas Station License Suspension Council Action Requested: Approve resolution imposing civil penalties of $1,000 and a 3-day license suspension of Speedway Gas Station at 1390 S. Frontage Road. Background Information: On April 28, 2023, the City of Hastings conducted a liquor license compliance check of Speedway Gas Station, 1390 S. Frontage Road, Hastings, MN 55033. Speedway failed the compliance check and was not enrolled in the Best Practices Program. Pursuant to Section 111.10 of the City Code Pertaining to Alcoholic Beverages, the presumptive civil penalties for a first offense, Non-Best Practices Business of a $1,000 and a 3-day license suspension would be levied against Speedway Gas Station. Licensee has been advised of the penalties and that it has an opportunity to demand a hearing before the City Council. Financial Impact: Not applicable Committee Discussion: Not applicable Attachments: • Hastings City Code Section 111.0 Suspension or Revocation of License • Police Report #23-900068 • Resolution Imposing Sanctions Upon Retail Intoxicating Liquor License Holder Speedway Gas Station VIII-05 VIII-05 VIII-05 VIII-05 Other Vehicle Information:NCIC# Incident: CFS Code-1:CFS Code-2:CFS Code-3:CFS Code-4: CFS Code-5:CFS Code-6:CFS Code-7:CFS Code-8: Name (Last, First, Middle)DOB:Race/Sex Incident Report Number:Between: Date - Time And/At: Date-Time Address: (Address, City, State, Zip)Phone 1 Employer Phone 2 Employer Address Work Phone # Time Received:Time Cleared:Unit(s) Assigned: Reporting Officer(s):Report Date: License Number:State:Expiration Year:Vin:Insurance Company: Reviewed by:Copy To D a t e : C F S C o d e - 1 : I n c i d e n t R e p o r t N u m b e r : Incident Location: Address: (Address, City, State, Zip)Phone 1 Name (Last, First, Middle)DOB:Race/Sex Employer Phone 2 Employer Address Work Phone # Vehicle Information: (Year, Make, Model, Style, Color) Pages: SUMMARY On 04/28/2023 at 2013 hours, Officers responded to the 1300 block of South Frontage Road regarding a violation of the Alcohol Compliance Checks. 1 Of 5 Hastings Police Department Incident Report GM-Liquor-Purchase/Sell/Bar 23-900068 4/28/23 19:50 1390 South Frontage Rd, Hastings, MN, 55033 340A.503.2(1) 05/24/2023 20:30:00 1422 0 5 / 2 4 / 2 0 2 3 3 4 0 A . 5 0 3 . 2 ( 1 ) 2 3 - 9 0 0 0 6 8 19:50:00 Offense - 1:Offense - 2:Offense - 3:Offense - 4: Offense - 5:Offense - 7:Offense - 8: O f f e n s e - 1 : Offense - 6: Willers, Jacob R.HAJW01 Payroll Number : Payroll Number : Belisle, Kathleen C.hakb03 VIII-05 Continuation Reporting Officer(s):Pages:: Incident Report Number Incident Location:Incident Date: NAMES Suspect Poole, Jamya Lashay B/F-18 of 1601 South Frontage Rd, Hastings,MN,55033-2496 DOB: 02/13/2005 HT: 508 WT: 164 Hair: Black Eyes: Brown Complexion: Medium Location of Event Speedway #4486 of 1390 South Frontage Rd,Hastings,MN,55033 Phone 1:(651) 480-8700 Other-1 Klann, Gabrielle Marie U/F-18 of 9763 Dunes Ln, Cottage Grove,MN,55016-4649 DOB: 12/03/2004 HT: 504 WT: 130 Hair: Brown Eyes: Brown Complexion: Medium Other-2 Robbins, Adriauna Suzanne U/F-26 of 1000 Peters Pl, 303, Columbia Heights,MN,55421 DOB: 02/12/1997 HT: 505 WT: 190 Hair: Black Eyes: Hazel Phone 1:(651) 200-1243 ============================================================================= 2 Of 5 Hastings Police Department 23-900068 04/28/20231390 South Frontage Rd, Hastings, MN, 55033 Willers, Jacob R. Payroll Number : HAJW01 VIII-05 Continuation Reporting Officer(s):Pages:: Incident Report Number Incident Location:Incident Date: NARRATIVE On 04/28/2023 at approximately 1950 hours, I, School Resource Officer Jake Willers, conducted an alcohol and tobacco compliance check at Speedway (1390 South Frontage Road). The person attempting to purchase tobacco and alcohol for me was Gabrielle Marie Klann DOB/2004-12-03. I parked directly east of Speedway behind pine trees in another businesses' parking lot. I could not see who was inside the business. Before Gabrielle went inside, we discussed what I wanted her to attempt to purchase, which was Camel Blue cigarettes and Coors Light. If there wasn't Coors Light (some gas stations did not carry Coors Light), then Gabrielle should buy any other alcoholic beverage. Gabrielle went inside Speedway and returned with a single box of Camel Blue cigarettes, a six pack of Michelob Ultra Lime, 8 dollars in change, and the receipt for the transaction. Gabrielle said she grabbed the six pack of Michelob Ultra Lime and approached the Cashier. The Cashier was described as an African American with "dreads." Gabrielle asked for Camel Blue cigarettes, and the Cashier asked Gabrielle why she wanted Camel Blues. The Cashier still handed Gabrielle the cigarettes and did not ask Gabrielle for her age or identification. The Cashier told Gabrielle the price ($21.14), and Gabrielle handed the Cashier $30 in cash. The Cashier provided $8 in change (all $1 bills), but the Cashier never provided the change (86 cents). Gabrielle exited the store with the items. I reviewed the receipt, which showed the transaction occurred at 1957 hours. The name of the Cashier according to the receipt was "Jamya P." I also looked at the Michelob Ultra Lime, which showed an alcohol percentage of four percent in each bottle. I photographed the alcohol, cigarettes, and the receipt, and I uploaded them to the casefile. I brought the cigarettes, alcohol, and the change into the store. At the cash register, I observed a female I knew from Hastings High School. The female was Jamya Lashay Poole DOB/2005-02-13. I briefly spoke with the most senior employee at the time, identified as Adriauna Suzanne Robbins DOB/1997-02-12. I explained the situation to her, and I provided my name and phone number for the manager to call me. I explained to her there would be potential consequences for Speedway. Adriauna said would let the manager know. I then spoke with Jamya, and I explained to Jamya that she failed the compliance check by selling alcohol and cigarettes to someone under the age of 21. I explained the incident as told by Gabrielle, and Jamya recalled the incident. Jamya remembered Gabrielle not taking the coins for change. I told Jamya that she could face possible criminal charges for serving Gabrielle. Jamya said this was her third shift at Speedway, and nobody trained her. Jamya did not specify what she was not trained to do. Jamya abruptly left and did not speak to me again. I advised Adriauna to have the manager call me. I was given the $30 Gabrielle used back, and I gave Audrianna the alcohol and cigarettes back as well. I completed the documentation on the Alcohol 3 Of 5 Hastings Police Department 23-900068 04/28/20231390 South Frontage Rd, Hastings, MN, 55033 Willers, Jacob R. Payroll Number : HAJW01 VIII-05 Continuation Reporting Officer(s):Pages:: Incident Report Number Incident Location:Incident Date: Compliance Form, and I uploaded it to the casefile. As of 05/04/2023, I have attempted to speak with Management at Speedway three separate times about Jamya's training. The employees took my information and said they would let management know to call me. One of the employees advised me Jamya was terminated from Speedway. The same employee also said Jamya only worked three shifts before being terminated. Management never called me. A voicemail was also left with information regarding the case. On 05/16/2023 at approximately 1400 hours, I attempted to call Speedway again. The first time I called there were phone issues, and the second time I called, I left a voicemail. I then contacted Speedway Corporate Office, and I spoke with a customer service representative. I advised the representative of the situation, and she sent an email with information to her supervisor. The representative also created a report on her end and provided me with a reference number of CUSTSUP0247956. The representative also provided me with the Law Enforcement Division for Speedway's email, which was LawEnforcement@7-11.com. I sent an email to the Law Enforcement Division as well regarding this situation. On 05/18/2023, I spoke with Rebecca Vijjeswarapu, who is the Regulatory Compliance Analyst for Speedway. Rebecca provided a phone number of 972-828-6879, and an email address of rebecca.vijjeswarapu@7-11.com. I explained the situation to Rebecca, and she would get back to me. Per company policy, every employee must watch a DVD on compliance checks before running the cash register at any store. Rebecca would try to find out if Jamya received any training. On 05/24/2023, I spoke with Rebecca again, and she spoke with the Area Manager for the Speedway on South Frontage Road. It was determined Jamya was not trained to use the cash register. Since Jamya was not trained properly, I decided not to charge Jamya with selling alcohol to a person under the age of 21. I am unable to charge Jamya with selling tobacco to a person under the age of 21 because Jamya was also under the age of 21. Jaymya was advised of the warning on 05/24/2023. This case should be forwarded to the City Attorney's Office for further review. See BWC for further information. Case Status: Refer to City Attorney's Office. Squad Video: No Photos: Yes 4 Of 5 Hastings Police Department 23-900068 04/28/20231390 South Frontage Rd, Hastings, MN, 55033 Willers, Jacob R. Payroll Number: HAJW01 VIII-05 Continuation Reporting Officer(s):Pages:: Incident Report Number Incident Location:Incident Date: Refer Adult Services: No Refer Juvenile Service: No Physical Evidence: No Body Cam: No Statements: Yes 5 Of 5 Hastings Police Department 23-900068 04/28/20231390 South Frontage Rd, Hastings, MN, 55033 Willers, Jacob R. Payroll Number: HAJW01 VIII-05 1 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. _____ RESOLUTION IMPOSING SANCTIONS UPON RETAIL INTOXICATING LIQUOR LICENSE HOLDER SPEEDWAY GAS STATION WHEREAS, state law authorizes a city council to impose sanctions upon the holder of a retail intoxicating liquor license who has failed to comply with an applicable statute, upon a hearing duly noticed, and the opportunity for the license holder to be heard; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota, as follows: FINDINGS A. On April 28, 2023, the Hastings Police Department conducted an alcohol compliance check at the Speedway Gas Station located at 1390 S Frontage Road, Hastings, Minnesota 55033. On that date, an employee of Speedway sold intoxicating alcohol to an underage purchaser cooperating with the Hastings Police Department. B. The Police reports attached are stipulated into evidence to support the sanctions imposed herein. C. Notice of an intoxicating liquor violation was duly given to the license holder for the premises at 1390 S Frontage Road, Hastings, Minnesota 55033 on September 7, 2023, pursuant to Minnesota Statutes, sections 14.57 to 14.69 and City Code Section 111.10. D. In lieu of a hearing, the liquor license holder has agreed to comply with the civil sanctions below and consents to the terms contained herein. E. The civil sanctions below are conditioned upon the Hastings City Council’s approval. If the City Council chooses to impose more severe sanctions, the liquor license holder has the right to withdraw its consent. CONCLUSION A. Based upon the police report attached hereto, the City Council concludes that the liquor license holder for the premises at 1390 S Frontage Road, Hastings, Minnesota 55033 (Speedway Gas Station) failed to comply with an applicable statute in that an alcoholic beverage was sold to an underage person on April 28, 2023, in the licensed establishment. B. This incident constitutes the liquor license holder’s first violation pursuant to Hastings City Code Section 111.10 within a 24-month period. VIII-05 2 C. The liquor license holder is not a member of the Best Practices Program, therefore the presumptive sanction is: $1,000 fine and 3 day suspension. D. The following sanctions are imposed for the violation: 1. A $1,000 civil penalty is imposed against the license holder which must be paid by 4:30 p.m. on September 25, 2023. If not paid, the license will be suspended without notice to the licensee until the civil penalty is paid. 2. The city-issued license will be revoked/suspended for a period of three days, which will occur on these dates: September 28, September 29, and September 30, 2023. The licensee is required to cooperate and work with the Police Chief, who will monitor and ensure compliance with this sanction. 3. While holding a City-issued alcohol license, the licensee or a representative from this establishment will attend any future City-sponsored alcohol compliance training when notified; 4. The license holder will establish an age verification policy for the establishment’s employees and provide the police department with a copy of this policy within 30 days of this resolution; 5. While holding a City-issued alcohol license, the license holder must document and maintain the signatures and dates of any alcohol training their employees receive, including being advised of the policy cited above. This list must be up kept to date and made available to the police department upon request. 6. The license holder shall not have any alcohol-related violations for a period of one year of this resolution. 7. If the licensee fails to comply by the conditions and sanctions set forth in this resolution, the following will occur: a. Any stayed civil penalty will be administratively imposed; b. Any stayed suspended period penalty will be administratively imposed, with the dates of suspension determined by the Police Chief; c. The licensee may be required to attend a Council meeting for additional sanctions. Adopted by the City Council of the City of Hastings this day of , 2023. Ayes: Nays: Attest: Mary Fasbender, Mayor Kelly Murtaugh, City Clerk VIII-05 3 NORTHERN TIER RETAIL, dba Speedway #4486 Signed Printed Title DATE VIII-05 City Council Memorandum To: Mayor Fasbender and City Council From: John Hinzman, Community Development Director Date: September 18, 2023 Item: Authorize Signature: 3rd Amendment to Development Agreement - Villas at Pleasant - 32 Villas Homes - Simek Property Group - Northridge and Pleasant Council Action Requested: Authorize Signature of the attached 3rd Amendment to the Development Agreement for Villas at Pleasant, a 32 lot villa home subdivision developed by Simek Property Group northeast of Northridge and Pleasant Drives. The amendment modifies the date for completion of wear course bituminous paving from September 15, 2023 to September 15, 2024. No other significant changes are included in the amendment. Action requires a simple majority of City Council. Background Information: The City Council granted Final Plat and Development Agreement approval on April 5, 2021. The agreement established a June 30, 2022 deadline for installation of pavement wear course and completion of public and private improvements. The 1st Amendment extended the deadline of wear course paving until October 15, 2022. The 2nd Amendment extended the deadline of wear course paving until September 15, 2023. Wear course paving is recommended when the majority of homes in a development have been completed. Staff recommends extending the date. Financial Impact: The addition of 32 home sites will add to the tax base and create needed housing opportunities. Advisory Commission Discussion: N\A Attachments: •3rd Amendment to Development Agreement VIII-06 THIRD AMENDMENT TO DEVELOPMENT AGREEMENT THIS THIRDAMENDMENT TO DEVELOPMENT AGREEMENT (this “Third Amendment”) is entered into as of this day of , 2023 (the “Effective Date”), by and between the City of Hastings, a Minnesota municipal corporation (“City”), and Villas at Pleasant, LLC, a Minnesota limited liability company (“Developer”). RECITALS Recital No. 1. The City and Developer entered into that certain Development Agreement of Villas at Pleasant, Dakota County, Minnesota dated April 12, 2021 and recorded as Document No. 3528860 on March 10, 2022 in the Office of the County Recorder, Dakota County, Minnesota, as amended by that certain First Amendment to Development Agreement dated July 14, 2022 and recorded as Document No. 3563459 and the Second Amendment to Development Agreement dated September 6, 2022 and recorded as Document No. 3563460 in the Office of the County Recorder, Dakota County, Minnesota (collectively the “Development Agreement”), for the Subject Property identified in the Development Agreement. Recital No. 2. Developer has requested the Development Agreement be amended to extend the dates of the installation of wear course. Recital No. 3. The City does not object to the extension. NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this Third Amendment and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: 1. The entire Development Agreement is hereby incorporated into this Third Amendment, except as modified below. 2. Section 6(B) of the Development Agreement shall be removed and replaced in its entirety as follows: VIII-06 2 B. Surfacing. Following Public Works Department approval of street grading and utility installation, streets shall be surfaced and provided with concrete curbs and gutters in accordance with the latest recommended plans and specifications prepared by the Public Works Department and on file at the City. The Developer shall install the bituminous wear course of streets after the first course (base course) has weathered a winter season, consistent with warranty requirements, but no later than September 15, 2024. Final acceptance of the required improvements by the City will not be granted until all work, including final wear course, is completed. A bituminous ramping wedge to protect the concrete lip from snowplow damage shall be installed with the bituminous base course. Prior to paving the bituminous wear course, the ramping wedge must be milled off. The City will thoroughly inspect all curb and gutter for damage prior to the installation of the bituminous wear course and may require repairs and/or replacement by Developer depending on the severity of damage. 3. Except as provided for above, the terms and provisions of the Development Agreement shall remain in full force and effect. 4. This Third Amendment and all disputes or controversies arising out of or relating to this Third Amendment, or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of Minnesota, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Minnesota. 5. Nothing contained herein shall be deemed a waiver by the City of any governmental immunity defenses, statutory or otherwise. Further, any and all claims brought by Developer or its successors or assigns, shall be subject to any governmental immunity defenses of the City and the maximum liability limits provided by Minnesota Statutes, Chapter 466. 6. This Third Amendment may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by the parties and delivered to the other parties. 7. This Third Amendment shall not be amended, modified or supplemented, except by a written instrument signed by an authorized representative of each party. [remainder of page intentionally blank] VIII-06 3 IN AGREEMENT, the parties hereto have hereunto set their hands as of the Effective Date. CITY: CITY OF HASTINGS By:____________________________ Mary Fasbender, Mayor By: ____________________________ Kelly Murtaugh, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) On this ___ day of ______________________, 2023, before me a Notary Public within and for said County, personally appeared Mary Fasbender and Kelly Murtaugh, to me personally known, who being each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the City of Hastings, the municipality named in the foregoing instrument, and that the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipality. ____________________________ Notary Public VIII-06 4 DEVELOPER: VILLAS AT PLEASANT, LLC By:_____________________________ Stuart R. Simek, President STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ________day of ______________________, 2023, by Stuart R. Simek, the President of Villas at Pleasant, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY AND AFTER RECORDING RETURN TO: Korine L. Land (#262432) LeVander, Gillen & Miller, P.A. 1305 Corporate Center Drive, Suite 300 Eagan, MN 55121 651-451-1831 VIII-06 City Council Memorandum To: Mayor Fasbender & City Council Members From: Ryan Stempski – Public Works Director/City Engineer Date: September 18, 2023 Item: Resolution Supporting and Authorizing Application to MnDOT for Transportation and Economic Development (TED) Funding for TH 61 Improvements COUNCIL ACTION REQUESTED Council is requested to approve a resolution of support and authorize application to the MnDOT TED program. The improvements identified in the TED application include local streets/trails adjacent to TH 61. Specifically, they are improvements to 18th Street, the backage road system from 21st Street to 25th Street, and the connecting trail and pedestrian bridge. BACKGROUND INFORMATION TH 61 needs repair and through a public engagement process, additional improvements were identified to address safety, mobility , vehicle speeds, traffic flow, community enhancements and bicycle/pedestrian safety. The specific areas for this request of TED funding include 18th Street for a new street alignment, signal and trail network that removes driveway access for trucking of heavy industry at this intersection that produces the highest trip generation of trucks along the corridor. Also included in this request is the backage road system from 21st Street to 25th Street to remove/reduce access of local roads and driveways by providing a local road system to accommodate industry and commercial access, consolidated access and trail system to safely connect bike and pedestrian traffic to the area. This grant can only be used on trunk highway eligible projects. For constructability purposes, the schedule would be to complete the improvements to the local road system that are off the direct trunk highway one year in advance (2026) of the major TH 61 Improvements (2027). FINANCIAL IMPACTS The estimated total project costs for the 18th Street, trail and ped bridge across Vermillion River, and 21st Street to 25th Street backage road system is $3,900,000. There is a maximum award of 70% of the total project cost. Therefore, the remaining $1,170,000 would be the responsibility of the City to fund. Our plan to fund the cost share is to submit for Local Road Improvement Funds (LRIP), also administered by MnDOT. VIII-07 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. RESOLUTION SUPPORTING THE TRANSPORTATION AND ECONOMIC DEVELOPMENT PROGRAM (TED) APPLICATION WHEREAS, the City of Hastings acts as the legal sponsor for the Trunk Highway 61 and 18th Street, 21st Street to 25th Street backage road system, and connecting trail and pedestrian bridge improvements and requests funding from the Transportation Economic Development (TED) Program of the Minnesota Department of Transportation, and WHEREAS, the City of Hastings has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure matching funds and adequate construction of the proposed projects, and WHEREAS, the City of Hastings has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice, and WHEREAS, that upon approval of its application by the State, the City of Hastings may enter into an agreement with the State of Minnesota for the above-referenced project, and that it will comply with all applicable laws and regulations as stated in all contract agreements. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: 1. The City of Hastings has committed $1,170,000 towards the local match requirement. 2. The City of Hastings confirms if the project cost increases above the amount listed in the Application, the City of Hastings will provide or secure all additional funds necessary to complete the project. 3. The City of Hastings certifies that it will comply with all applicable laws, regulations, and rules of the Application. 4. That the sources and uses, private investors, equity, and other financing commitment represented in the attached document are accurate. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 18th DAY OF SEPTEMBER, 2023. Ayes: Nays: Mary D. Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk SEAL VIII-07 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Jenkins, Parks & Recreation Director Date: September 18, 2023 Item: Hwy 55 Trail Reconstruction Council Action Requested: Approve contracts for Hwy 55 trail reconstruction and budget adjustment for a fully fund the project. Background Information: The Hwy 55 trail, running east and west from Spring Street to the Hastings Middle School is in very poor shape and was identified in the 2023 budget for a reconstruction project. We engaged WSB for the design and engineering services for this trail, and recently received four (4) competitive bids ranging between $278,247.50 and $445,100.00 to complete this project. After review of the bids, a meeting with WSB, and coordinating some project changes with the contractor, the total construction cost, with 5% contingency, survey & staking, materials testing and construction administration and inspection for this trail work is $302,323.00, with McNamara Construction being the low bidder. The cost overrun is due to traffic control requirements for Hwy 55, patching and concrete work related to the pedestrian ramps, which are not currently compliant with our ADA pedestrian ramp plan, and survey, staking, testing and construction administration and inspection. Our staff estimated cost did not include enough funding for these portions of the project. Staff recommendation is to: 1. Approve the project and contract as bid, with McNamara Contracting with a cost of $278,247.50. This contract price will be modified via change order to a contract price of $234,677.50 after the original contract is awarded. 2. Approve the contract with WSB as attached to provide survey, staking, materials testing, inspections, construction administration in the not to exceed amount of $31, 240.00. IX-01 Financial Impact: The 2023 budgeted project was projected at $259,050.00, which is not sufficient to complete the project as well as pay for the design and engineering costs already incurred. The total project cost, with a 5% construction contingency is $302,323.00, a budget adjustment of $43,273.00 is necessary to complete this project, and Park Dedication Funds is an appropriate source of funding for this trail work. Advisory Commission Discussion: None Council Committee Discussion: None Attachments: ▪ Project map ▪ Bid Tabulation ▪ Recommendation of award ▪ WSB Contract IX-01 IX-01 PROJECT: OWNER: City of Hastings, MN WSB PROJECT NO.: 022687-000 Bids Opened: Wednesday, August 30, 2023 @ 11:00 am Contractor Bid Security (5%) Total Bid 1 McNamara Contracting X $278,247.50 2 New Look Contracting, Inc. X $282,801.00 3 Max Steininger, Inc. X $323,790.90 4 Urban Companies X $445,100.40 Engineer's Opinion of Cost $280,557.50 Denotes corrected figure Justin Messner, Director of Municipal Operations BID TABULATION SUMMARY I hereby certify that this is a true and correct tabulation of the bids as received on August 30, 2023. HWY 55 Bituminous Walk Reconstruction Project K:\022687-000\Admin\Construction Admin\Bidding\022687-000 Bid Summary 083023 IX-01 17 8 E 9 T H S T R E E T | SU I T E 2 0 0 | SA I N T P A U L , M N | 55 1 0 1 | 65 1 . 2 8 6 . 8 4 5 0 | WS B E N G . C O M August 30, 2023 Honorable Mayor and City Council City of Hastings 101 4th Street East Hastings, MN 55033 Re: HWY 55 Bituminous Walk Reconstruction Project City of Hastings, MN WSB Project No. 022687-000 Dear Mayor and Council Members: Bids were received for the above-referenced project on Wednesday, August 30, 2023, and were opened and read aloud. Four bids were received. The bids were checked for mathematical accuracy. Please find enclosed the bid summary indicating the low bid as submitted by McNamara Contracting, Rosemount, Minnesota in the amount of $278,247.50. The Engineer’s Estimate was $280,557.50. We recommend that the City Council consider these bids and award a contract in the amount of $278,247.50 to McNamara Contracting based on the results of the bids received. Sincerely, WSB Justin Messner, PE Director of Municipal Operations Attachments kkp K:\022687-000\Admin\Construction Admin\Bidding\022687-000 LOR 083023.docx IX-01 A PROPOSAL FOR Hastings HWY 55 Trail Reconstruction Project FOR THE CITY OF HASTINGS 15 5 7 4 E D G E W O O D D R I V E | BA X T E R , M N | 56 4 2 5 | 21 8 . 8 2 4 . 3 6 9 0 | WS B E N G . C O M IX-01 Hastings HWY 55 Trail Reconstruction Project 1 September 7, 2023 Mr. Chris Jenkins Parks and Recreation Director City of Hastings 920 West 10th Street Hastings, MN 55033 Re: Proposal to Provide Professional Services for Hastings HWY 55 Trail Reconstruction Project Dear Mr. Jenkins: On behalf of WSB & Associates, Inc., we are excited to submit this proposal to provide Professional Services for the City of Hastings HWY 55 Trail Reconstruction Project. Our firm has the experience and the expertise necessary to meet the City’s trail reconstruction needs. WSB is a full-service design and consulting firm that can provide the City of Hastings with all the necessary professional services – construction survey and staking, material testing, and contract administration and inspection to deliver a successful project. Enclosed you will find a proposal to complete the tasks associated with the Hastings HWY 55 Trail Reconstruction Project. The proposal includes an hourly breakdown to complete each of the tasks associated with the project. The terms of this proposal shall remain valid for the duration of the project. Thank you for the opportunity to submit a proposal on this project. If you have questions about the content of this proposal, please feel to reach out at jmessner@wsbeng.com or 612.388.9652. Sincerely, WSB Justin Messner, PE Director of Municipal Operations Attachment – Project Budget Worksheet IX-01 Hastings HWY 55 Trail Reconstruction Project 2 PROJECT UNDERSTANDING WSB LLC. (WSB) has prepared plans and specifications for the HWY 55 Trail Reconstruction Project. The City of Hastings has requested a proposal for construction survey and staking, material testing, and contract administration and inspection. Based on our extensive expertise with similar projects and our project understanding, we are confident about successfully and professionally undertaking this project. PROJECT APPROACH/SCOPE OF SERVICES WSB’s project scope and proposed work plan are based on our understanding of the mission as previously described. To complete the project, we propose the following scope of services: Task 1: Construction Survey and Staking WSB will provide a National Society of Professional Surveyors, Certified Survey Technician and Survey Crew Chief with experience performing construction staking on projects of similar size. Our survey crew will perform construction staking for the duration of the contract, in response to the contractor’s needs. They will provide construction staking services to assure accurate and quality workflow in a timely manner to maintain the project’s schedule. All our survey personnel are experienced in utilizing Trimble GPS equipment and Trimble Robotic Total Stations to ensure accurate and efficient staking procedures. They will utilize the full capabilities of their equipment for the use of detailed proposed surfaces for construction staking, allowing them to effectively respond to all project needs. All of our staff have performed numerous contractors staking projects on behalf of local, state, and government agencies, as well as Contractors. Task 2: Construction Material Testing WSB’s Construction Materials Testing (CMT) Group has more than four decades of experience providing construction materials testing on roadway improvement projects throughout the state on behalf of local, county, and state agencies, including state-aid and federally funded projects. With our new state of-the-art, accredited materials testing lab, located in Burnsville, we perform both quality control and quality assurance testing for timely and accurate testing results. WSB has a strong commitment to technical excellence, by maintaining our certifications and upholding safe work practices. All of our training, testing, and reporting are completed in accordance with industry standards and follow national published standards such as ASTM, IBC, ICC, AASHTO, MnDOT, ACI, and OSHA. With more than 70 MnDOT certified inspectors and material testers, we can not only meet the demands of every project but have the expertise to ensure quality results. As an example of our expertise, WSB serves as instructors for several MnDOT Certification classes which teach the standards and processes for material testing. We understand that infrastructure is only as sound as the materials used to build it. Our WSB Laboratory is accredited by AASHTO resource, formerly known as AASHTO Materials Reference Laboratory (AMRL), and USACE Validated. WSB offers hundreds of various test capabilities on soils, aggregates, bituminous, concrete, masonry and a variety of other construction related materials. By achieving this accolade from AASHTO resource, we have met the high standards for quality, experience, performance, and documentation set forth by this nationally recognized organization, and with this, we provide the tools necessary to maximize the value and life expectancy of your investment. Task 3: Construction Administration and Inspection This will include correspondence with the contractor regarding project contract items, preparation of partial and final pay estimates, weekly project updates to the Owner’s representative, lead weekly construction meetings and general coordination with Owner’s representative regarding project items and progress. This task also includes preparation of an agenda and conducting the preconstruction meeting. WSB will send out weekly emails for construction updates to keep stakeholders informed. IX-01 Hastings HWY 55 Trail Reconstruction Project 3 WSB will provide the City of Hastings with part-time construction observation with (20 hours per week) one sole observer for the project. We propose that the contract requires completion of the project within 3 weeks required for observation services. It is assumed that the project areas will be completed concurrently with each contractor/subcontractor sequencing their work from one area to the other. It is assumed that only one observer will be needed to observe the critical components of the project such as trail paving and pedestrian ramp construction. WSB will also perform the necessary erosion and sediment control compliance inspections for the project required by the MPCA NPDES requirements. SCHEDULE WSB will begin work immediately upon receiving your Notice to Proceed. WSB proposes to schedule a preconstruction meeting with the Contractor the week of September 18th with construction to begin following final approval of the MnDOT permitting. Final construction completion is identified for October 2023. PROPOSED FEE WSB will provide the services as outlined in Project Approach / Scope of Services. Our budget was developed based on our understanding of the scope and experience with similar types of projects. The following is a summary of the costs for each phase of the project: Task Description Fee 1 Construction Survey Staking $8,138 2 Construction Materials Testing $8,738 3 Construction Administration and Inspection $14,364 Total $31,240 We propose to conduct the work listed above on an hourly basis for an estimated total fee of $31,240. We will review our progress weekly and will not exceed this amount without your prior approval should the scope of the project change. If this proposal is acceptable, please execute the signature block below and return as our authorization to proceed. If you agree with the terms of this proposal, WSB will draft a Professional Services Agreement for this project for execution by both parties. ACCEPTED BY: CITY OF HASTINGS, MN Signature: Name/Title: Date: IX-01 Estimate of Cost City of Hastings, MinnesotaProfessional Engineering Services Hastings HWY 55 Trail Reconstruction Project Senior Project Manager Project Engineer Construction Inspection Environmental Compliance Inspection Administrative Two-Person Survey Crew Survey Coordination Total Hours Cost Justin Messner Katie KoscielakTaskDescription 1 Construction Survey and Staking 1.1 Field Staking 32 32 $7,520.00 1.2 Office Survey 3 3 $618.00 Task 1 Total Estimated Hours and Fee 32 3 35 $8,138.00 2 Construction Materials Testing 2.1 Material Testing $8,737.50 8738 $8,737.50 Task 2 Total Estimated Hours and Fee $8,737.50 3 Construction Administration and Inspection 3.1 Project Management 4 12 16 $2,812.00 3.2 Contract Administration 4 12 10 4 30 $4,312.00 3.3 Construction Inspection 4 60 64 $6,760.00 3.5 Environmental Compliance 4 4 $480.00 Task 2 Total Estimated Hours and Fee 8 28 70 4 4 114 $14,364.00 Total Estimated Hours 8 28 70 4 4 32 3 149 $31,239.50 Average Hourly Billing Rate 223.00 160.00 102.00 120.00 120.00 235.00 206.00 TOTAL PROJECT COST $31,239.50 IX-01 AGREEMENT BETWEEN OWNER AND CONTRACTOR FOR CONSTRUCTION CONTRACT HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 1 THIS AGREEMENT is by and between The City of Hastings (“Owner”) and (“Contractor”). Terms used in this Agreement have the meanings stated in the General Conditions and the Supplementary Conditions. Owner and Contractor hereby agree as follows: ARTICLE - 1 WORK 1.01 Contractor shall complete all Work as specified or indicated in the Contract Documents. The Work is generally described as follows: The HWY 55 Bituminous Walk Reconstruction Project shall include the furnishing of all labor, materials, tools, and equipment necessary to complete the bituminous walk construction and appurtenant work as shown on the Plans and specified herein. ARTICLE - 2 THE PROJECT 2.01 The Project, of which the Work under the Contract Documents is a part, is generally described as follows: HWY 55 Bituminous Walk Reconstruction Project for the City of Hastings, MN, WSB Project No. 022687-000. ARTICLE - 3 ENGINEER 3.01 The Owner has retained WSB & Associates, Inc. d/b/a WSB (“Engineer”) to act as Owner’s representative, assume all duties and responsibilities, and have the rights and authority assigned to Engineer in the Contract. 3.02 The part of the Project that pertains to the Work has been designed by WSB & Associates, Inc. d/b/a WSB. ARTICLE - 4 CONTRACT TIMES 4.01 Time is of the Essence A. All time limits for Milestones, if any, Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 4.02 Contract Times: Dates A. The Work will be substantially completed on or before October 31, 2023, and completed and ready for final payment in accordance with Paragraph 15.06 of the General Conditions on or before June 30, 2024. 4.03 Liquidated Damages A. Contractor and Owner recognize that time is of the essence as stated in Paragraph 4.01 above and that Owner will suffer financial and other losses if the Work is not completed and Milestones not achieved within the Contract Times, as duly modified. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by Owner if the Work is not completed on time. IX-01 HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 2 Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty): 1. Substantial Completion: Contractor shall pay Owner liquidated damages in accordance with MnDOT Table 1807-1 for each Calendar Day that expires after the time (as duly adjusted pursuant to the Contract) specified above for Substantial Completion, until the Work is substantially complete. 2. Completion of Remaining Work: After Substantial Completion, if Contractor shall neglect, refuse, or fail to complete the remaining Work within the Contract Time (as duly adjusted pursuant to the Contract) for completion and readiness for final payment, Contractor shall pay Owner liquidated damages in accordance with MnDOT Table 1807-1 for each Calendar Day that expires after such time until the Work is completed and ready for final payment. 3. Liquidated damages for failing to timely attain Milestones, Substantial Completion and final completion are not additive and will not be imposed concurrently. ARTICLE - 5 CONTRACT PRICE 5.01 Owner shall pay Contractor for completion of the Work in accordance with the Contract Documents the amounts that follow, subject to adjustment under the Contract: A. Contract Price: _______________________________ and XX/100 Dollars ($__________) Base Bid and Alternate(s) No. __ subject to adjustment based on the provisions of the Contract. B. For all Unit Price Work, an amount equal to the sum of the extended prices (established for each separately identified item of Unit Price Work by multiplying the unit price times the actual quantity of that item). The extended prices for Unit Price Work set forth as of the Effective Date of the Contract are based on estimated quantities. As provided in Paragraph 13.03 of the General Conditions, estimated quantities are not guaranteed, and determinations of actual quantities and classifications are to be made by Engineer. C. The Contractor’s Bid, attached hereto as an exhibit, provides the basis for the extended prices for the Unit Price Work. ARTICLE - 6 PAYMENT PROCEDURES 6.01 Submittal and Processing of Payments A. Contractor shall submit Applications for Payment in accordance with Article 15 of the General Conditions. Applications for Payment will be processed by Engineer as provided in the General Conditions. 6.02 Progress Payments; Retainage A. Owner shall make progress payments on the basis of Contractor’s Applications for Payment on or about the last day of each month during performance of the Work as provided in Paragraph 6.02.A.1 below, provided that such Applications for Payment have been submitted in a timely manner and otherwise meet the requirements of the Contract. All such payments will be measured by the Schedule of Values established as provided in the General Conditions (and in the case of Unit Price Work based on the number of units completed) or, in the event there is no Schedule of Values, as provided elsewhere in the Contract. 1. Prior to Substantial Completion, progress payments will be made in an amount equal to the percentage indicated below but, in each case, less the aggregate of payments previously made and less such amounts as Owner may withhold, including but not limited to liquidated damages, in accordance with the Contract. IX-01 HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 3 a. 95 percent of Work completed (with the balance being retainage). 1) If 50 percent or more of the Work has been completed, as determined by Engineer, and if the character and progress of the Work have been satisfactory to Owner and Engineer, then as long as the character and progress of the Work remain satisfactory to Owner and Engineer, there will be no additional retainage; and b. 95 percent of cost of materials and equipment not incorporated in the Work (with the balance being retainage). B. Upon Substantial Completion, Contractor shall submit to the Engineer an Application for Payment for the retainage amount less the following amounts: 1. 250 percent of the anticipated cost to complete the punch list items; and 2. the greater of $500 or 1 percent of the Contract price to ensure delivery of final paperwork which includes, but is not limited to operation manuals, payroll documents for projects subject to prevailing wage requirements, and the IC134 form. The Owner, upon certification from the Engineer, shall make payment of any undisputed amounts within 30 days of receipt of the Application for Payment. 6.03 Final Payment A. Upon final completion and acceptance of the Work, Owner shall pay the remainder of the Contract Price in accordance with Paragraph 15.06 of the General Conditions. 6.04 Consent of Surety A. Owner will not make final payment, or return or release retainage at Substantial Completion or at any other time, unless Contractor submits written consent of the surety to such payment, return, or release. 6.05 Interest A. All amounts not paid when due shall bear interest at the rate of 1.5 percent per month. ARTICLE - 7 CONTRACT DOCUMENTS 7.01 Contents A. The Contract Documents consist of all of the following: 1. This Agreement. 2. Bonds: a. Performance bond (together with power of attorney). b. Payment bond (together with power of attorney). 3. General Conditions. 4. Supplementary Conditions. 5. Specifications as listed in the table of contents of the Project Manual. 6. Drawings (not attached but incorporated by reference) consisting of ___ sheets with each sheet bearing the following general title: ___, dated ___. IX-01 HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 4 7. Addenda (numbers ___ to ___, inclusive). 8. Exhibits to this Agreement (enumerated as follows): a. Completed Bid Form. b. Non-Collusion Affidavit. c. Responsible Contractor Verification and Certification of Compliance Form. 9. The following which may be delivered or issued on or after the Effective Date of the Contract and are not attached hereto: a. Notice to Proceed. b. Work Change Directives. c. Change Orders. d. Field Orders. e. Maintenance Bond. B. The Contract Documents listed in Paragraph 7.01.A are attached to this Agreement (except as expressly noted otherwise above). C. There are no Contract Documents other than those listed above in this Article 7. D. The Contract Documents may only be amended, modified, or supplemented as provided in the Contract. ARTICLE - 8 REPRESENTATIONS, CERTIFICATIONS, AND STIPULATIONS 8.01 Contractor’s Representations A. In order to induce the Owner to enter into this Contract, Contractor makes the following representations: 1. Contractor has examined and carefully studied the Contract Documents, including Addenda. 2. Contractor has visited the Site, conducted a thorough, alert visual examination of the Site and adjacent areas, and become familiar with the general, local, and Site conditions that may affect cost, progress, and performance of the Work. 3. Contractor is familiar with all Laws and Regulations that may affect cost, progress, and performance of the Work. 4. Contractor has carefully studied all: (a) reports of explorations and tests of subsurface conditions at or adjacent to the Site and the drawings of physical conditions relating to existing surface or subsurface structures at the Site that have been identified in the Supplementary Conditions, with respect to the Technical Data in such reports and drawings; and (b) reports and drawings relating to Hazardous Environmental Conditions, if any, at or adjacent to the Site that have been identified in the Supplementary Conditions, with respect to Technical Data in such reports and drawings. 5. Contractor has considered the information known to Contractor itself; information commonly known to contractors doing business in the locality of the Site; information and observations obtained from visits to the Site; the Contract Documents; and the Technical Data identified in the Supplementary Conditions or by definition, with respect to the effect of such information, observations, and Technical Data on (a) the cost, progress, and performance of the Work; (b) the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor; and (c) Contractor’s safety precautions and programs. IX-01 HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 5 6. Based on the information and observations referred to in the preceding paragraph, Contractor agrees that no further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions the Contract. 7. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. 8. Contractor has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and of discrepancies between Site conditions and the Contract Documents, and the written resolution thereof by Engineer is acceptable to Contractor. 9. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 10. Contractor’s entry into this Contract constitutes an incontrovertible representation by Contractor that without exception all prices in the Agreement are premised upon performing and furnishing the Work required by the Contract Documents. 8.02 Contractor’s Certifications A. The provisions of MINN. STAT. 16C.285 Responsible Contractor are imposed as a requirement of this Contract. This Contract may be terminated by the Owner at any time upon discovery by the Owner that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in the Statute. B. The provisions of MINN. STAT. 471.425, subdivision 4a. are imposed as a requirement of this Contract. 1. Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor’s receipt of payment from the municipality for undisputed services provided by the subcontractor. The contract must require the prime contractor to pay interest of 1.5 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due to the subcontractor. A Subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. 8.03 Standard General Conditions A. Owner stipulates that if the General Conditions that are made a part of this Contract are EJCDC® C-700, Standard General Conditions for the Construction Contract (2018), published by the Engineer’s Joint Contract Documents Committee, and if Owner is the party that has furnished said General Conditions, then Owner has plainly shown all modifications to the standard wording of such published document to the Contractor, through a process such as highlighting or “track changes” (redline/strikeout), or in the Supplementary Conditions. IX-01 HWY 55 BITUMINOUS WALK RECONSTRUCTION PROJECT AGREEMENT CITY OF HASTINGS, MN WSB PROJECT NO. 022687-000 PAGE 6 IN WITNESS WHEREOF, Owner and Contractor have signed this Agreement. This Agreement will be effective on (which is the Effective Date of the Contract). Owner: Contractor: By: By: Date: Date: Name: Name: Title: Title: (If Contractor is a corporation, a partnership, or a joint venture, attach evidence of authority to sign.) Attest: Attest: Title: Title: Address for giving notices: Address for giving notices: Designated Representative: Designated Representative: Name: Name: Title: Title: Address: Address: IX-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: John Hinzman, Community Development Director Date: September 18, 2023 Item: Public Hearing: Vacation of Easement – South Oaks of Hastings 2nd Addition Council Action Requested: Hold a public hearing to consider vacation of certain public drainage and utility easements within Outlot A of South Oaks of Hastings 2nd Addition. The property is presently vacant and planned to be platted as South Oaks of Hastings 4th Addition, containing 35 single family homes. Background: The easements must be vacated in order to replat the property as South Oaks of Hastings 4th Addition. Easements for drainage and utility purposes would be established at that time. The Council is asked to hold the public hearing, but to delay action on the request until the Preliminary and Final Plat consideration of South Oaks of Hastings 4th Addition. The vacation does not affect drainage and utility easements that exist upon currently developed lots within South Oaks 2nd Addition. Financial Impact: N\A Advisory Commission Discussion: N\A Council Committee Discussion: N\A Attachments: • Location Map IX-02 Drainage and Utility Easements to be vacated in RED IX-02 All those drainage and utility easements, originally dedicated on the recorded plat of SOUTH OAKS OF HASTINGS 2ND ADDITION, Dakota County, Minnesota, and now to be vacated, which lie within Outlot A, said South Oaks of Hastings 2nd Addition, except that part thereof platted as SOUTH OAKS OF HASTINGS 3RD ADDITION, according to the recorded plat thereof, Dakota County, Minnesota. I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly licensed Professional Land Surveyor under the laws of the State of Minnesota. Signed this 14th day of March, 2017 For: James R. Hill, Inc. By: Marcus F. Hampton, Land Surveyor, MN License No. 47481 Sketch and Description For: GREG J. HOMES OF HASTINGS, INC. EASEMENT VACATION IX-02 Sketch and Description For: GREG J. HOMES OF HASTINGS, INC. EASEMENT VACATION IX-02 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: John Hinzman, Community Development Director Jamie Stevens, Fire Inspector Date: September 18, 2023 Item: Public Hearing\2nd Reading\Ordinance Adoption: Chapters 156 and 157 – Property Maintenance Code and Structure Maintenance Code Council Action Requested: Hold a public hearing and consider 2nd reading and final adoption of the following actions amending the Hastings City Code: 1) City Code Chapter 156 – International Property Maintenance Code 2) City Code Chapter 157 – Structure Maintenance Code for Rental Residential Properties The City Council considered 1st Reading of both ordinance amendments at the September 5th City Council Meeting. A simple majority is necessary for action. Background: The proposed amendments establish property and structural maintenance requirements for residential rental units. Proposed changes include: • Adopt the most current version of the International Property Code by reference. • Update definitions to be consistent with other sections of the City Code. • Owners of Hastings residential rental properties residing in St. Croix and Pierce County Wisconsin no longer need to have a property management agent residing within the 7 County Metro. • Ultimate responsibility for compliance is the responsibility of the property owner. • Licenses issued for two years instead of one year (this would match what we are currently doing). • Rental dwelling units of immediate housing members no longer exempt from permit requirements. • License fees would be invoiced 30 days from expiration. • All licenses must be posted on site. • Simplifies the ability of the Housing Official to revoke license if requirements are not met. Financial Impact: N\A IX-03 Advisory Commission Discussion: N\A Council Committee Discussion: N\A Attachments: • Ordinance Amendment – Chapter 156 • Ordinance Amendment – Chapter 157 • Redlined version of code IX-03 1 ORDINANCE NO. 2023- AN ORDINANCE FOR THE CITY OF HASTINGS, MINNESOTA AMENDING HASTINGS CITY CODE CHAPTER 156 – INTERNATIONAL PROPERTY MAINTENANCE CODE The City Council of the City of Hastings, Minnesota does hereby ordain as follows: SECTION 1. AMENDMENT. The Code of the City of Hastings, State of Minnesota, Chapter 156 – International Property Maintenance Code shall be stricken in its entirety and replaced with the following language: 156.01 Adoption of International Property Maintenance Code Except as modified or amended by the Minnesota State Building Code (or as it may be amended) or by City ordinance, or by this Chapter, the most current edition of the International Property Maintenance Code (IPMC) is adopted by reference and is made apart of this City Code as is fully set out at length. One (1) copy of the IPMC, together with a copy of this Chapter, each marked “Official Copy”, must be kept on file at City Hall and be available for public inspection. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendment adopted by the Hastings City Council on ________________ modifies the City Ordinance to adopt the most current version of the International Property Maintenance Code. SECTION 5. EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this __________ day of _____________________, 2023 _____________________________________ Mary Fasbender, Mayor IX-03 2 Attest: ____________________________ Kelly Murtaugh, City Clerk Published in the Hastings Journal on ________________ IX-03 1 ORDINANCE NO. 2023- AN ORDINANCE FOR THE CITY OF HASTINGS, MINNESOTA AMENDING HASTINGS CITY CODE CHAPTER 157 – STRUCTURE MAINTENANCE CODE FOR RENTAL RESIDENTIAL PROPERTIES The City Council of the City of Hastings, Minnesota does hereby ordain as follows: SECTION 1. AMENDMENT. The Code of the City of Hastings, State of Minnesota, Chapter 157 – Structure Maintenance Code for Rental Residential Properties shall be stricken in its entirety and replaced with the following language: CHAPTER 157 STRUCTURE MAINTENANCE CODE FOR RENTAL RESIDENTIAL PROPERTIES 157.01 Short Title This chapter may be cited as the City of Hastings Structure Maintenance Code, or the Structure Code. 157.02 Policy, Purpose, Intent 1. Policy. It is the policy of the city to enhance the supply of safe, sanitary, and adequate structures for its citizens and to prevent the deterioration of the existing structures of the city. 2. Purpose. The purpose of this chapter is to carry out the policy stated in Section 157.02(1) by establishing minimum standards, and procedures for their enforcement consistent with the right to personal privacy, for the protection of life, limb, health, property, safety and welfare of the general public and the owners and occupants of residential buildings. 3. Objectives. The objectives of this chapter include, but are not limited to, the following: 1. Protection and preservation of the stability and character of residential areas in the city. 2. The prevention and correction of structure conditions that adversely affect the life, safety, health, and general well-being of persons occupying dwellings in the city. 3. The establishment of minimum standards for light, ventilation, cooling, heating, and sanitary equipment necessary to insure the health and safety of occupants of rental dwellings. 4. The establishment of minimum standards for the maintenance of rental residential dwellings. IX-03 2 5. The prevention of the emergence of blighted and deteriorating structures in the city. 6. The prevention of overcrowding of rental dwellings. 7. The preservation of the value of land and structures in the city. 4. Intent, Relation To The Provisions Of City Code. The City Council intends that the Structure Code be an integral part of the city’s program of health, safety, building and land use regulation. This chapter is to be construed liberally in conjunction with other provisions of the City Code to give effect to the policy, purpose, and objectives of this section, but is not to be construed to modify, amend, or otherwise alter the provisions of the city code relating to health, safety, structure, or land use regulation. (Prior code, § 17.02) 157.03 Adoption of International Property Maintenance Code 1. The International Property Maintenance Code (IPMC) is adopted per City Code Chapter 156.01. (Prior code, § 17.03) 157.04 Definitions General. For purposes of this chapter the terms defined in this section have the following meanings given them. ADEQUATE HEAT means heat sufficient to maintain a temperature of 68 degrees Fahrenheit at a height of 3 feet above the floor in all habitable rooms, bathrooms, and water closet compartments. BUILDING CODE means Chapter 50 and 150 of the city code. CITY CODE means the Hastings City Code. CODE or THIS CODE means the Structure Maintenance Code. COMMON AREAS means halls, corridors, passageways, utility rooms, recreational rooms and landscaped areas, not under the exclusive control of a single person, housing unit in or adjacent to a multiple family dwelling. DWELLING means a building or a portion of a building designed for residential occupancy DWELLING, TWO-FAMILY. A detached residential dwelling building containing two dwelling units. IX-03 3 DWELLING, MULTIPLE-FAMILY. A residential building designed for two or more families, with the number of families in residence not exceeding the number of dwelling units provided. DWELLING, SINGLE-FAMILY. A detached residential dwelling unit other than a manufactured home, designed for and occupied by one family only. DWELLING UNIT means A building or portion thereof, constituting an independent housekeeping establishment for owner occupancy, rental, or lease and separate from any other dwelling units that may be in the same structure and containing independent cooking and sleeping facilities. HOUSING OFFICIAL means Building Official or designee. IMMEDIATE FAMILY means close relatives by birth or marriage including siblings, parents, children, in-laws and any financial dependents. OPERATOR means Building Manager or owner representative charged with the maintenance or operation of the building. OWNER, OWNER-OPERATOR or OPERATOR means any person, firm or corporation who alone, jointly, or separately with others is in actual possession of or has charge, care or control of a dwelling or dwelling unit or structure in the city as owner, employee or agent of the owner or as trustee or guardian of the estate or the person is the title holder, and such person is bound by the provision of this code to the same extent as the owner. RENTAL RESIDENTIAL PROPERTY means an occupied single- or multiple family rental dwelling or dwelling unit that is let to a party other than the registered owner of the property. REPAIR means to restore to a sound acceptable state of operation, serviceability or appearance. REPLACE means to remove an existing item or portion of a system and to construct or install a new item of similar or new quality as an existing item when new when repair of the item is impractical. RESIDENT AGENT AREA is limited to the following counties within the State of Minnesota: Anoka, Carver, Dakota, Goodhue, Hennepin, Ramsey, Scott, and Washington. Resident Agent Area also includes the following counties in the State of Wisconsin: St. Croix and Pierce. STRUCTURE means that which is built or constructed, an edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner. IX-03 4 ZONING ORDINANCE means the Chapter 155 of the city code. 1. Relation To Other Code Definitions. Except as expressly provided in this code, the words, terms, and phrases as used in this code have the meanings given them by the City Code. In cases where conflicting definitions of a word, term or phrase make its precise meaning unclear in its application to particular facts, the City Administrator shall resolve the conflict. 157.05 Application 1. General. This code applies to rental residential properties including structures, their premises, accessory structures thereto, and dwelling units therein, used or designed to be used for human habitation or storage. 2. Existing Structures. 1. A building lawfully existing under the Minnesota State Building Code must conform to this code. A building need not be altered or changed to exceed the requirements of the Minnesota State Building Code in effect at the time of its construction, except in the following cases: a) If the structure is altered or enlarged pursuant to Minnesota State Building Code; b) If the structure is moved or relocated; or c) If the structure is determined to be unsafe or hazardous by the Building Official pursuant to the Minnesota State Building Code, International Property Maintenance Code, or state law. 2. Occupancy in structures lawfully existing under the Building Code may be continued under this code. (Prior code, § 17.05) 157.06 Duties Of Owners And Occupants 1. Sanitation. The occupant of a dwelling or dwelling unit must maintain in a clean and sanitary condition that part of the dwelling, dwelling unit, and yard that the occupant occupies and controls; and is responsible for the occupant’s own misuse of areas and facilities available in common. The owner or operator of a two-family dwelling or multiple family dwelling must maintain in a clean and sanitary condition the shared or public areas of the dwelling and yard. The occupant of a dwelling unit must keep all mechanical equipment and appliances, including furnace, water heater, plumbing fixtures, air conditioner, stove, refrigerator, dishwasher, and the like in a clean and sanitary condition and is responsible for the exercise of reasonable care in their proper use and operation. 2. Removal Of Waste Matter. The occupant of a dwelling unit must dispose of rubbish, ashes, garbage, and other organic waste in a clean and sanitary manner as required in the city code. The owner or operator of a multiple-family dwelling is responsible for the clean and sanitary maintenance of common storage or disposal IX-03 5 facilities and must dispose of rubbish in a clean and sanitary manner as required in the city code. 3. Pest Extermination. The occupant or owner of a single-family dwelling unit is responsible for the extermination of vermin infestations or rodents on the premises. The occupant or owner of a dwelling unit in a building containing more than one dwelling unit is responsible for such extermination when the dwelling unit is infested. When infestation is caused by the failure of the owner or operator to maintain a building containing dwelling units in a reasonable rodent-resistant or reasonably vermin-resistant condition, pest extermination is the responsibility of the owner or operator. After extermination it is the responsibility of the owner or operator, to provide evidence that the infestation has been eliminated and steps have been taken to prevent a reoccurrence as designated by appropriate city officials. If infestation exists in two or more dwelling units in any dwelling, or in the shared or public parts of any dwelling containing two or more dwelling units, pest extermination is the responsibility of the owner or operator. 4. Heat. The owner or operator of a building containing two or more dwelling units must supply facilities capable of providing Adequate Heat to every habitable room therein. For the purposes of subdivision 5. Utilities. Except as otherwise provided by law, an owner, operator, or occupant may not cause service equipment or utility service that is required by this code to be removed, shut off or discontinued for any occupied dwelling let or occupied by that person, except for such temporary interruption as may be necessary while actual repairs or alterations are in process or during temporary emergencies. 6. Transfer Of Responsibility. A contract between owner and operator, operator and occupant, or owner and occupant, with regard to compliance with this code, does not relieve the owner or operator of a duty imposed by this chapter. 7. Notice Of Maximum Occupancy. An owner or operator must advise the occupant, in writing, by insertion in the lease between the parties or otherwise, the maximum number of occupants permitted in occupied premises subject to this code. 8. Owner Ultimately Responsible. The owner of a dwelling or dwelling unit is ultimately responsible for compliance of all duties listed within this section if the occupant fails to meet compliance. (Prior code, § 17.06) 157.07 Administration; Enforcement; Inspection 1. Administration And Enforcement. The Housing Official is responsible for the administration and enforcement of this chapter. 2. Compliance. When the Housing Official determines that there exists in a building or a portion thereof conditions that constitute a violation of this code, the Housing Official may begin enforcement procedures. (Prior code, § 17.07) 157.08 Licensing Of Rental Units IX-03 6 1. General Rule. Owners of rental dwelling units shall be required to obtain a license The license is issued for a period of two years and expires two years from the date of issuance. License renewal notices will be sent via U.S. Mail 60 days prior to the expiration date. Penalties for late payment will be added as outlined in Section 110.19 of the Hastings City Code. Site inspections are performed upon initial permit, then every two years from then on. 2. Application. This section is intended to provide standards for licensed rental housing and to allow resolution of complaints regarding licensed rental housing. All rental dwellings shall conform to the requirements of this section, without regard to when it was constructed, altered, or repaired. This section establishes minimum standards for maintaining rental dwellings and their accessory structures and related premises. 3. License Fees. Owners of rental dwellings shall pay a license fee prior to issuance of a rental license. License fees will be invoiced to the owner within 30 days of the license expiration. License fees are due upon occupancy of newly rented dwelling units. License fees are established in Section 34.03 of the Hastings City Code – Fee Schedule. 4. Conditions. A license is non-transferable. The license fee is not refundable upon revocation or suspension 5. Licensing phase-in policy. Commencing on April 1, 1998, initial licensing inspection will begin according to inspection areas established by the Housing Official. 6. Application Information. Applications for a license or renewal of a license must be made by the owner of a rental dwelling. Application forms are filed with the Housing Official. The application form must supply: a) Name, address, email, and telephone number of dwelling owner, partners if partnership, corporate officers if corporation; b) Name, address, email, and telephone number of designated operator or agent, if any; c) Name, address, email, and telephone number of vendee, if the dwelling is being sold through a contract for deed; d) Legal address and parcel identification number; e) Number of dwelling or rental units; f) Description of procedure by which tenant inquiries and complaints are to be processed. 7. Notice Of Change. The licensee must give notice in writing to the Housing Official within five business days after any change of information in the application. Notice of transfer of ownership is governed by Section 157.08, subd. 12 8. Resident Agent Area Requirements. Owners residing outside of the Resident Agent Area must designate in writing the name of a resident agent or operator with offices within the Resident Agent Area who is: a) Responsible for maintenance and upkeep; b) Legally constituted and empowered to receive service of notice of violation of the provisions of city ordinances, to receive orders and to institute remedial action to affect such orders; and IX-03 7 c) To accept service or process pursuant to law. The Housing Official must be notified in writing by the owner of a change of resident agent. 9. Conformance To Laws. An operating license will not be issued or renewed unless the rental unit and its premises conform to this section, the ordinances of the city and laws of the State of Minnesota. 10. Inspection Condition. An operating license will not be issued or renewed unless the owner of the rental unit agrees in the application to permit inspection pursuant to § 157.09. 11. Posting Of License. The licensee must conspicuously post the current license in the main entry way or other conspicuous location in a frame with a glass or plastic cover. 12. Non-Transferable. Licenses may not be transferred. A new license must be approved prior to transfer of the property. 13. License, Suspension And Revocation. An operating license is subject to suspension or revocation by the Housing Official or designee if the licensed owner fails to operate or maintain licensed rental dwellings and units therein consistent with this chapter. Suspension or revocation of an operating license may be appealed to the City Council. If an operating license is suspended or revoked by the staff, it is unlawful for the owner to permit new occupancy of vacant rental units until a valid operating license is issued by the city. 157.09 Enforcement Authority 1. Inspection Authority. The Housing Official may inspect on complaint, change in ownership, or otherwise when reason exists to believe that a violation of this chapter has been or is being committed. Except in the case of emergency, inspections must be conducted during reasonable daylight hours. The Housing Official must present evidence of official authority to the occupant in charge of a rental dwelling unit. 2. Inspection Access. If an owner, occupant, or other person in charge of a dwelling unit licensed under this section fails or refuses to permit free access and entry for inspection purposes, the Housing Official may revoke the license until such inspection can be secured. 157.10 Minimum Requirements; Implementation Standards; Policies 1. Minimum Requirements. The minimum requirements imposed by this chapter include those standards or requirements in effect on the date of the construction of a building subject to this chapter. It is not the intention of this code to require all buildings to be upgraded to meet all requirements of the present Building Code. 2. Implementation Standards. In administering this code, the Housing Official will treat the following as conditions constituting an immediate hazard to health and safety: a. Heating systems, woodburning stove, fireplaces, oil burners and alike, that are unsafe due to: burned out or rusted heat exchanger (fire box); burned IX-03 8 out or plugged flues; not being vented; being connected with unsafe gas supplies; or being incapable of adequately heating the living space; b. Water heaters that are unsafe due to: burned out or rusted out heat exchanger (fire box); burned out, rusted out, or plugged flues; not being vented; being connected with unsafe gas supplies; or lack of temperature and pressure relief valves; c. Electrical systems that are unsafe due to: dangerous overloading; damaged or deteriorated equipment; improperly tapped or spliced wiring; exposed uninsulated wires; distribution systems of extension cords or other temporary methods; ungrounded systems; ungrounded appliances in contact with earth; d. Plumbing systems that are unsanitary due to: leaking waste systems fixtures and traps; lack of water closet; lack of washing and bathing facilities; or cross connection of pure water supply with fixtures or sewage lines; e. Structural systems, walls, chimneys, ceilings, roofs, foundations, and floor systems, that will not safely carry imposed loads; f. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other materials rendering it unsanitary for human occupancy, including lack of light and air; g. Infestation of rats, insects, and other vermin. 3. Foundations, Exterior Walls And Roof. The foundation, exterior walls, and exterior roof shall be substantially watertight and protected against vermin and rodents and shall be kept in sound condition and repair. The foundation element shall adequately support the building at all points. Every exterior wall shall be free of deterioration, holes, breaks, loose or rotting boards or timbers, and any other condition which might admit rain or dampness to the interior portion of the walls or to the exterior spaces of the structure. The roof shall be tight and have no defects which admit rain, and roof drainage shall be adequate to prevent rainwater from causing dampness in the walls. All exterior wood surfaces, other than decay resistant woods, shall be protected from the elements and decay by paint or other protective covering or treatment. 4. Exterior Doors And Windows. Every window, exterior door, and other exterior openings shall be substantially tight and shall be kept in sound condition and repair. Every window, other than a fixed window or storm window, shall be capable of being easily opened. Every window, door and frame shall be constructed and maintained in such relation to the adjacent wall construction as to completely exclude rain, wind, vermin, and rodents from entering the building. Garages attached or detached shall have a fully operational overhead door or barn-type doors. 157.11 Reporting Forms, Records The Housing Official must prepare forms and certificates necessary to carry out the provisions of this code. The Housing Official must design appropriate systems of accumulating or organizing and cataloging data relating to the condition, adequacy, and availability of rental residential housing in the city and must report on these matters from time to time to the City Council at its request. The Housing Official’s report must also IX-03 9 contain recommendations for modifications in the provisions of this chapter and its administration. 157.12 Hazardous Conditions, Built-In Deficiencies, Procedure 1. Procedure. If the Housing Official determines that there exists in a building a condition that constitutes an immediate hazard to the health and safety of its occupants, the Housing Official may: a) Issue a compliance order requiring immediate compliance if the condition can reasonably be corrected; b) Proceed against the building pursuant to applicable city code provisions and state laws relating to hazardous or unsafe structures; or c) Recommend that the City Council proceed to correct the condition by abating it as a nuisance under City Code Chapter 95.96, and through issuance of an Administrative Citation per City Code Chapter 10.25. 2. Built In Deficiencies. It is determined that certain conditions within existing buildings, lawful at the time of the construction of the building, may not comply with the minimum requirements of this chapter. Such conditions are herein referred to as built-in deficiencies, and the Housing Official, in administering this chapter, must consider the following built-in deficiencies as being beyond reasonable correction: a) Ceiling heights. An existing habitable room with less than a 7-foot ceiling height. b) Superficial floor area. An existing habitable room with less than 70 square feet. c) Natural light and ventilation. An existing habitable room with window area less than 8% of the floor area provided, however, that in no case may the required area of light and ventilation be less than 5% of the floor area. 157.13 Inspections 1. Records. Except in the case of emergency, inspections must be conducted during reasonable hours. The Housing Official must present evidence of authority to the owner or occupant in charge of a dwelling unit. Subject to the provisions of law, the Housing Official must keep evidence, exclusive of the inspection records, discovered or obtained in the course of an inspection confidential. 2. Unfit For Human Habitation. A dwelling, dwelling unit or rooming unit or portion thereof that is damaged, decayed, dilapidated, unsanitary, unsafe, vermin- or rodent-infested or which lacks provision for basic illumination, ventilation, or sanitary facilities to the extent that the defects create a hazard to the health, safety, and welfare of the occupants or of the public may be declared unfit for human habitation. If a dwelling, dwelling unit, or rooming unit has been declared unfit for human habitation, the Housing Official must order the same vacated within a reasonable time and post a placard on same indicating that it is unfit for human habitation. 3. Correction. It is unlawful for a dwelling, dwelling unit or rooming unit or portion thereof to be used for human habitation until defective conditions have been corrected and written approval has been issued by the Housing Official. It is IX-03 10 unlawful to deface or remove the declaration placard from a dwelling, dwelling unit, or rooming unit. 4. Secure Unfit And Vacated Dwellings. The owner of a dwelling, dwelling unit, or rooming unit that has been declared unfit for human habitation or that is otherwise vacant for a period of 60 days or more must make the same safe and secure so that it is not hazardous to the health, safety, and welfare of the public and does not constitute a public nuisance. A vacant dwelling open at doors, windows, or wall opening, if unguarded, is deemed to be a hazard to the health, safety, and welfare of the public and a public nuisance within the meaning of this section. 5. Hazardous Building Declaration. If a dwelling has been declared unfit for human habitation and the owner has not remedied the defects within a prescribed reasonable time, the dwelling may be declared a hazardous building and may be removed, razed, or corrected pursuant to the city code and provisions of M.S. Chapter 463, as it may be amended from time to time. 6. Compliance Procedure Order. If the Housing Official determines that a rental dwelling, rental dwelling unit or rooming unit or portion thereof is in violation of an order of this chapter, the Housing Official may issue a compliance order setting forth the violations of such and ordering the owner/occupant, operator, or agent to correct such violation. The compliance order must: a) Be in writing; b) Describe the location and nature of the violations of this section; c) Establish a reasonable time for the correction of the violation and notify the owner of appeal procedures; d) Be served upon the owner, owner’s agent, or the occupant, as the case may be the notice is deemed to be properly served upon owner or agent, or upon any such occupant, if a copy thereof is: 1. Served upon the owner or agent; or 2. Sent by registered mail to the owner or agent’s last known address; or 3. Served pursuant to M.S. § 463.17, Subdivision 2, as it may be amended from time to time. 4. Pursuant to M.S. § 145A.04, as it may be amended from time to time. 157.14 REMOVED 157.15 Restrictions On Transfer Of Ownership It is unlawful for the owner of a dwelling, dwelling unit or rooming unit upon whom a Compliance Order has been served to sell, transfer, mortgage or lease or otherwise dispose the dwelling, dwelling unit, or rooming unit to another person until the compliance order has been complied with, unless the owner furnishes to the grantee, lessee or mortgagee a true copy of any notice of violation or compliance order and obtains and possesses a receipt of acknowledgment. A person obtaining an interest in the dwelling, dwelling unit or rooming unit who has received notice of the existence of a compliance order is bound by the order without further notice and is subject to the penalties and procedures provided by this chapter. 157.99 Penalty IX-03 11 1. General. It is unlawful to erect, construct, enlarge, alter, repair, move, improve, equip, use, occupy or maintain any building or structure within the City contrary to the provisions of this chapter. 2. Non-compliance. Failure to comply with a lawfully issued compliance order is a violation of this chapter. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendment adopted by the Hastings City Council on ________________ modifies the City Ordinance modify procedures and responsibilities for maintenance and licensing of residential rental properties. SECTION 5. EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this __________ day of _____________________, 2023 _____________________________________ Mary Fasbender, Mayor Attest: ____________________________ Kelly Murtaugh, City Clerk Published in the Hastings Journal on ________________ IX-03 CHAPTER 156 INTERNATIONAL PROPERTY MAINTENANCE CODE 156.01 Adoption By Reference 156.01 Adoption By Referenceof International Property Maintenance Code The 2006 International Property Maintenance Code is hereby adopted by reference and incorporated herein as if set out in full. If any provision of the IPMC is inconsistent with a specific provision of this city code, the more restrictive provisions of the city code shall control.Except as modified or amended by the Minnesota State Building Code (or as it may be amended) or by City ordinance, or by this Chapter, the most current edition of the International Property Maintenance Code (IPMC) is adopted by reference and is made apart of this City Code as is fully set out at length. One (1) copy of the IPMC, together with a copy of this Chapter, each marked “Official Copy”, must be kept on file at City Hall and be available for public inspection. The following provisions of the IPMC are modified or clarified as follows: Cross-reference: Structure Maintenance Code for Rental Residential Properties, see Ch. 157 HISTORY Amended by Ord. 2014-10, 3rd Series on 5/19/2014 CHAPTER 157 STRUCTURE MAINTENANCE CODE FOR RENTAL RESIDENTIAL PROPERTIES 157.01 Short Title 157.02 Policy, Purpose, Intent 157.03 Adoption Of 2006 International Property Maintenance Code By Reference 157.04 Definitions 157.05 Application 157.06 Duties Of Owners And Occupants 157.07 Administration; Enforcement; Inspection 157.08 Licensing Of Rental Units 157.09 Enforcement Authority 157.10 Minimum Requirements; Implementation Standards; Policies 157.11 Reporting Forms, Records 157.12 Hazardous Conditions, Built-In Deficiencies, Procedure 157.13 Inspections 157.15 Restrictions On Transfer Of Ownership 157.99 Penalty Cross-reference: International Property Maintenance Code, see Ch. 156 HISTORY Adopted by Ord. 418, 2nd Series on 11/3/1997 Amended by Ord. 423, 2nd Series on 12/15/1997 Repealed by Ord. 2022-13 on 4/18/2022 157.01 Short Title This chapter may be cited as the City of Hastings Structure Maintenance Code, or the Structure Code. IX-03 (Prior code, § 17.01) 157.02 Policy, Purpose, Intent 1. Policy. It is the policy of the city to enhance the supply of safe, sanitary and adequate structures for its citizens and to prevent the deterioration of the existing structures of the city. 2. Purpose. The purpose of this chapter is to carry out the policy stated in Section 2.1157.02(1) by establishing minimum standards, and procedures for their enforcement consistent with the right to personal privacy, for the protection of life, limb, health, property, safety and welfare of the general public and the owners and occupants of residential buildings. 3. Objectives. The objectives of this chapter include, but are not limited to, the following: 1. Protection and preservation of the stability and character of residential areas in the city. 2. The prevention and correction of structure conditions that adversely affect the life, safety, health and general well-being of persons occupying dwellings in the city. 3. The establishment of minimum standards for light, ventilation, cooling, heating and sanitary equipment necessary to insure the health and safety of occupants of rental dwellings. 4. The establishment of minimum standards for the maintenance of rental residential dwellings. 5. The prevention of the emergence of blighted and deteriorating structures in the city. 6. The prevention of overcrowding of rental dwellings. 7. The preservation of the value of land and structures in the city. 4. Intent, Relation To The Provisions Of City Code. The City Council intends that the Structure Code be an integral part of the city’s program of health, safety, building and land use regulation. This chapter is to be construed liberally in conjunction with other provisions of the City Code to give effect to the policy, purpose and objectives of this section, but is not to be construed to modify, amend or otherwise alter the provisions of the city code relating to health, safety, structure, or land use regulation. (Prior code, § 17.02) 157.03 Adoption Of 2006 International Property Maintenance Code By Referenceof International Property Maintenance Code 1. Code Adopted. The 2006 International Property Maintenance Code, published by International Code Council, Inc., except as modified or amended herein, is adopted by reference and is made a part of this code as if fully set out at length.The International Property Maintenance Code (IPMC) is adopted per City Code Chapter 156.01. 2. Copy On File. One copy of the 2006 International Property Maintenance Code will be kept on file in the office of the City Clerk and available for public inspection at reasonable times. (Prior code, § 17.03) 157.04 Definitions General. For purposes of this chapter the terms defined in this section have the following meanings given them. ADEQUATE HEAT means heat sufficient to maintain a temperature of 68 degrees Fahrenheit at a height of 3 feet above the floor in all habitable rooms, bathrooms and water closet compartments. IX-03 BUILDING CODE means Chapter 50 and 150 of the city code. CITY CODE means the Hastings City Code. CODE or THIS CODE means the Structure Maintenance Code. COMMON AREAS means halls, corridors, passageways, utility rooms, recreational rooms and landscaped areas, not under the exclusive control of a single person, housing unit in or adjacent to a multiple family dwelling. HOUSING OFFICIAL means the Supervisor of Inspections and Code Enforcement, the Building Official, or their designees. (Ord. 2014-11 3rd Series, Adopted 5-19-14) COMMON AREAS means halls, corridors, passageways, utility rooms, recreational rooms and extensive landscaped areas, not under the exclusive control of 1one person or family, in or adjacent to a multiple dwelling. DWELLING means a building or a portion of a building designed for residential occupancy: The term includes single-family, 2-family and multiple-family apartments, condominiums, hotels, motels and Bed and Breakfasts. DWELLING, TWO-FAMILY. A detached residential dwelling building containing two dwelling units. DWELLING, MULTIPLE-FAMILY. A residential building designed for two or more families, with the number of families in residence not exceeding the number of dwelling units provided. DWELLING, SINGLE-FAMILY. A detached residential dwelling unit other than a manufactured home, designed for and occupied by one family only. DWELLING UNIT means A building or portion thereof, constituting an independent housekeeping establishment for owner occupancy, rental, or lease and separate from any other dwelling units that may be in the same structure and containing independent cooking and sleeping facilities.: A single-family dwelling; and A discrete portion of a dwelling designed for occupancy by 1 family. HOUSING OFFICIAL means Supervisor of Inspections and Code EnforcementBuilding Official or designee. IMMEDIATE FAMILY means close relatives by birth or marriage including siblings, parents, children, in-laws and any financial dependents. OPERATOR means Building Manager or owner representative charged with the maintenance or operation of the building. OWNER, OWNER-OPERATOR or OPERATOR means any person, firm or corporation who Commented [JHA1]: Placed in alphabetical order IX-03 alone, jointly, or separately with others is in actual possession of or has charge, care or control of a dwelling or dwelling unit or structure in the city as owner, employee or agent of the owner or as trustee or guardian of the estate or the person is the title holder, and such person is bound by the provision of this code to the same extent as the owner. RENTAL RESIDENTIAL PROPERTY means an occupied single- or multi-familymultiple family rental dwelling or dwelling unit that is let to a party other than the registered owner of the property. REPAIR means to restore to a sound acceptable state of operation, serviceability or appearance. REPLACE means to remove an existing item or portion of a system and to construct or install a new item of similar or new quality as an existing item when new when repair of the item is impractical. RESIDENT AGENT AREA is limited to the following counties within the State of Minnesota: Anoka, Carver, Dakota, Goodhue, Hennepin, Ramsey, Scott, and Washington. Resident Agent Area also includes the following counties in the State of Wisconsin: St. Croix and Pierce. STRUCTURE means that which is built or constructed, an edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner. ZONING ORDINANCE means the Chapter 155 of the city code. 1. Relation To Other Code Definitions. Except as expressly provided in this code, the words, terms and phrases as used in this code have the meanings given them by the City Code. In cases where conflicting definitions of a word, term or phrase make its precise meaning unclear in its application to particular facts, the City Administrator shall resolve the conflict. (Prior code, § 17.04) HISTORY Amended by Ord. 2009-09, 3rd Series on 9/8/2009 Amended by Ord. 2014-11, 3rd Series on 5/19/2014 157.05 Application 1. General. This code applies to rental residential properties including: structures, their premises, accessory structures thereto, and dwelling units therein, used or designed to be used for human habitation or storage. 2. Existing Structures. 1. A building lawfully existing under the Minnesota State Building Code must conform to this code. A building need not be altered or changed to exceed the requirements of the Minnesota State Building Code in effect at the time of its construction, except in the following cases: 1. If the structure is altered or enlarged pursuant to Minnesota State Building Code; 2. If the structure is moved or relocated; or 3. If the structure is determined to be unsafe or hazardous by the Building Official pursuant to the Minnesota State Building Code, 2006 International Property Maintenance Code or state law. 2. Occupancy in structures lawfully existing under the Building Code may be continued under this code. IX-03 (Prior code, § 17.05) 157.06 Duties Of Owners And Occupants 1. Sanitation. The occupant of a dwelling or dwelling unit must maintain in a clean and sanitary condition that part of the dwelling, dwelling unit and yard that the occupant occupies and controls; and is responsible for the occupant’s own misuse of areas and facilities available in common. The owner or operator of a 2two-family dwelling or multiple family dwelling must maintain in a clean and sanitary condition the shared or public areas of the dwelling and yard. The occupant of a dwelling unit must keep all mechanical equipment and appliances, including furnace, water heater, plumbing fixtures, air conditioner, stove, refrigerator, dishwasher and the like in a clean and sanitary condition and is responsible for the exercise of reasonable care in their proper use and operation. 2. Removal Of Waste Matter. The occupant of a dwelling unit must dispose of rubbish, ashes, garbage and other organic waste in a clean and sanitary manner as required in the city code. The owner or operator of a multiple-family dwelling is responsible for the clean and sanitary maintenance of common storage or disposal facilities and must dispose of rubbish in a clean and sanitary manner as required in the city code. 3. Pest Extermination. The occupant or owner of a single-family dwelling unit is responsible for the extermination of vermin infestations or rodents on the premises. The occupant or owner of a dwelling unit in a building containing more than 1one dwelling unit is responsible for such extermination when the dwelling unit is infested. When infestation is caused by the failure of the owner or operator to maintain a building containing dwelling units in a reasonable rodent-resistant or reasonably vermin-resistant condition, pest extermination is the responsibility of the owner or operator. After extermination it is the responsibility of the owner or operator, to provide evidence that the infestation has been eliminated and steps have been taken to prevent a reoccurrence as designated by appropriate city officials. If infestation exists in 2two or more dwelling units in any dwelling, or in the shared or public parts of any dwelling containing 2two or more dwelling units, pest extermination is the responsibility of the owner or operator. 4. Heat. The owner or operator of a building containing 2two or more dwelling units must supply facilities capable of providing adequate Adequate hHeat to every habitable room therein. For the purposes of subdivision ADEQUATE HEAT means heat sufficient to maintain a temperature of 68 degrees Fahrenheit at a height of 3 feet above the floor in all habitable rooms, bathrooms and water closet compartments. 5. Utilities. Except as otherwise provided by law, an owner, operator or occupant may not cause service equipment or utility service that is required by this code to be removed, shut off or discontinued for any occupied dwelling let or occupied by that person, except for such temporary interruption as may be necessary while actual repairs or alterations are in process or during temporary emergencies. 6. Transfer Of Responsibility. A contract between owner and operator, operator and occupant, or owner and occupant, with regard to compliance with this code, does not relieve the owner or operator of a duty imposed by this chapter. 7. Notice Of Maximum Occupancy. An owner or operator must advise the occupant, in writing, by insertion in the lease between the parties or otherwise, the maximum number of occupants permitted in occupied premises subject to this code. 7.8. Owner Ultimately Responsible. The owner of a dwelling or dwelling unit is ultimately responsible for compliance of all duties listed within this section if the occupant fails to meet compliance. (Prior code, § 17.06) 157.07 Administration; Enforcement; Inspection IX-03 1. Administration And Enforcement. The Building Housing Official is responsible for the administration and enforcement of this chapter. 2. Compliance. When the Housing Official determines that there exists in a building or a portion thereof conditions that constitute a violation of this code, the Housing Official may begin enforcement procedures. (Prior code, § 17.07) 157.08 Licensing Of Rental Units 1. General Rule. Owners of rental dwelling units shall be required to obtain a license. The license is issued every year and expires on July 31 each yearThe license is issued for a period of two years and expires two years from the date of issuance. License renewal notices will be sent via U.S. Mail 60 days prior to the expiration date. Penalties for late payment will be added as outlined in Section 110.19 of the Hastings City Code. Site inspections are performed initiallyupon initial permit, then every two years from then on. Exempt: Rental dwelling units housing immediate family members. 2. Application. This section is intended to provide standards for licensed rental housing and to allow resolution of complaints regarding licensed rental housing. All rental dwellings shall conform to the requirements of this section, without regard to when it was constructed, altered or repaired. This section establishes minimum standards for maintaining rental dwellings and their accessory structures and related premises. 3. License Fees. Owners of rental dwellings shall pay a license fee prior to issuance of a rental license. License fees will be invoiced to the owner within 30 days of the license expiration.Owners of rental dwellings shall pay an annual license fee. License fees are due by July 31 of each year. License fees are due upon occupancy of newly rented dwelling units. License fees are set by ordinanceestablished in Section 34.03 of the Hastings City Code – Fee Schedule adopted from time to time by the Hastings City Council. 4. Conditions. A license is non-transferable. The license fee is not refundable upon revocation or suspension. The license fee is refundable prorated monthly, upon proof of transfer of legal control or ownership. 5. Licensing phase-in policy. Commencing on April 1, 1998, initial licensing inspection will begin according to inspection areas established by the Housing Official. 6. Application Information. Applications for a license or renewal of a license must be made by the owner of a rental dwelling. Application forms are filed with the Housing Official. The application form must supply: 1. Name, address, email, and telephone number of dwelling owner, partners if partnership, corporate officers if corporation; 2. Name, address, email, and telephone number of designated operator or agent, if any; 3. Name, address, email, and telephone number of vendee, if the dwelling is being sold through a contract for deed; 4. Legal address and parcel identification number; 5. Number of dwelling or rental units; 6. Description of procedure by which tenant inquiries and complaints are to be processed. 7. Notice Of Change. The licensee must give notice in writing to the Housing Official within five business days after any change of information in the application. Notice of transfer of ownership is governed by division (L).Section 157.08, subd. 12 8. Resident Agent Area RequiredRequirements. Owners residing outside of the Resident Agent Area An operating license will not be issued or renewed for a non-resident owner of rental dwelling units (an owner who does not reside in any of the following Minnesota Counties: Hennepin, Ramsey, Anoka, Carver, Dakota, Goodhue, Scott or Washington) unless the owner designatesmust designate IX-03 in writing the name of a resident agent or operator with offices within the Resident Agent Area (an agent who does reside in 1 of the aforementioned counties) who is: 1. `Responsible for maintenance and upkeep; 2. Legally constituted and empowered to receive service of notice of violation of the provisions of city ordinances, to receive orders and to institute remedial action to affect such orders; and 3. To accept service or process pursuant to law. The Housing Official must be notified in writing by the owner of a change of resident agent. 9. Conformance To Laws. An operating license will not be issued or renewed unless the rental unit and its premises conform to this section, the ordinances of the city and laws of the State of Minnesota. 10. Inspection Condition. An operating license will not be issued or renewed unless the owner of the rental unit agrees in the application to permit inspection pursuant to § 157.09. 11. Posting Of License. The licensee of a building containing three or more dwelling units must conspicuously post the current license in the main entry way or other conspicuous location in a frame with a glass or plastic cover. 12. TransferNon Transferable. The licensee must give notice in writing to the Housing Official within 5 business days after having legally transferred or otherwise disposed of the effective control of licensed rental property. The notice must include the name and address of the person succeeding to the ownership or control of the rental dwelling or dwellings. Licenses may not be transferred. A new license must be approved prior to transfer of the property. 13. License, Suspension And Revocation. An operating license is subject to suspension or revocation by the Housing Official or designee if the licensed owner fails to operate or maintain licensed rental dwellings and units therein consistent with this chapter. Suspension or revocation of an operating license may be appealed pursuant to provisions of § 157.14to the City Council. If an operating license is suspended or revoked by the staff, it is unlawful for the owner to permit new occupancy of vacant rental units until a valid operating license is issued by the city. (Prior code, § 17.08) (Ord. 423, passed 12-15-1997) HISTORY Amended by Ord. 2009-09, 3rd Series on 9/8/2009 157.09 Enforcement Authority 1. Inspection Authority. The Housing Official may inspect on complaint, change in ownership, or otherwise when reason exists to believe that a violation of this chapter has been or is being committed. Except in the case of emergency, inspections must be conducted during reasonable daylight hours. The Housing Official must present evidence of official authority to the occupant in charge of a rental dwelling unit. 2. Inspection Access. If an owner, occupant, or other person in charge of a dwelling unit licensed under this section fails or refuses to permit free access and entry for inspection purposes, the Housing Official may, upon a showing of probable cause, obtain orders from a court of competent jurisdiction for the inspection revoke the license until such inspection can be secured.. (Prior Code, § 17.09) 157.10 Minimum Requirements; Implementation Standards; Policies 1. Minimum Requirements. The minimum requirements imposed by this chapter include those standards or requirements in effect on the date of the construction of a building subject to this IX-03 chapter. It is not the intention of this code to require all buildings to be upgraded to meet all requirements of the present Building Code. 2. Implementation Standards. In administering this code, the Housing Official will treat the following as conditions constituting an immediate hazard to health and safety: a. Heating systems, woodburning stove, fireplaces, oil burners and alike, that are unsafe due to: burned out or rusted heat exchanger (fire box); burned out or plugged flues; not being vented; being connected with unsafe gas supplies; or being incapable of adequately heating the living space; b. Water heaters that are unsafe due to: burned out or rusted out heat exchanger (fire box); burned out, rusted out, or plugged flues; not being vented; being connected with unsafe gas supplies; or lack of temperature and pressure relief valves; c. Electrical systems that are unsafe due to: dangerous overloading; damaged or deteriorated equipment; improperly tapped or spliced wiring; exposed uninsulated wires; distribution systems of extension cords or other temporary methods; ungrounded systems; ungrounded appliances in contact with earth; d. Plumbing systems that are unsanitary due to: leaking waste systems fixtures and traps; lack of water closet; lack of washing and bathing facilities; or cross connection of pure water supply with fixtures or sewage lines; e. Structural systems, walls, chimneys, ceilings, roofs, foundations and floor systems, that will not safely carry imposed loads; f. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other materials rendering it unsanitary for human occupancy, including lack of light and air; g. Infestation of rats, insects and other vermin. 3. Foundations, Exterior Walls And Roof. The foundation, exterior walls, and exterior roof shall be substantially water tight and protected against vermin and rodents and shall be kept in sound condition and repair. The foundation element shall adequately support the building at all points. Every exterior wall shall be free of deterioration, holes, breaks, loose or rotting boards or timbers, and any other condition which might admit rain or dampness to the interior portion of the walls or to the exterior spaces of the structure. The roof shall be tight and have no defects which admit rain, and roof drainage shall be adequate to prevent rain water from causing dampness in the walls. All exterior wood surfaces, other than decay resistant woods, shall be protected from the elements and decay by paint or other protective covering or treatment. 4. Exterior Doors And Windows. Every window, exterior door, and other exterior openings shall be substantially tight and shall be kept in sound condition and repair. Every window, other than a fixed window or storm window, shall be capable of being easily opened. Every window, door and frame shall be constructed and maintained in such relation to the adjacent wall construction as to completely exclude rain, wind, vermin and rodents from entering the building. Garages attached or detached shall have a fully operational overhead door or barn-type doors. (Prior Code, § 17.10) 157.11 Reporting Forms, Records The Housing Official must prepare forms and certificates necessary to carry out the provisions of this code. The Housing Official must design appropriate systems of accumulating or organizing and cataloging data relating to the condition, adequacy, and availability of rental residential housing in the city and must report on these matters from time to time to the City Council at its request. The Housing Official’s report must also contain recommendations for modifications in the provisions of this chapter and its administration. (Prior Code, § 17.11) 157.12 Hazardous Conditions, Built-In Deficiencies, Procedure IX-03 1. Procedure. If the Housing Official determines that there exists in a building a condition that constitutes an immediate hazard to the health and safety of its occupants, the Housing Official may: 1. Issue a compliance order requiring immediate compliance if the condition can reasonably be corrected; 2. Proceed against the building pursuant to applicable city code provisions and state laws relating to hazardous or unsafe structures; or 3. Recommend that the City Council proceed to correct the condition by abating it as a nuisance under M.S. § 429.101City Code Chapter 95.96, and through issuance of an Administrative Citation per City Code Chapter 10.25. as it may be amended from time to time, and this clause is to be construed as authorizing the imposition and billing of charges for the cost thereof and the assessment of unpaid charges against the property on which the building is located in the manner provided by M.S. § 429.101, as it may be amended from time to time. 2. Built In Deficiencies. It is determined that certain conditions within existing buildings, lawful at the time of the construction of the building, may not comply with the minimum requirements of this chapter. Such conditions are herein referred to as built-in deficiencies, and the Housing Official, in administering this chapter, must consider the following built-in deficiencies as being beyond reasonable correction: 1. Ceiling heights. An existing habitable room with less than a 7-foot ceiling height. 2. Superficial floor area. An existing habitable room with less than 70 square feet. 3. Natural light and ventilation. An existing habitable room with window area less than 8% of the floor area provided, however, that in no case may the required area of light and ventilation be less than 5% of the floor area. (Prior Code, § 17.12) 157.13 Inspections 1. Records. Except in the case of emergency, inspections must be conducted during reasonable hours. The Housing Official must present evidence of authority to the owner or occupant in charge of a dwelling unit. Subject to the provisions of law, the Housing Official must keep evidence, exclusive of the inspection records, discovered or obtained in the course of an inspection confidential. 2. Unfit For Human Habitation. A dwelling, dwelling unit or rooming unit or portion thereof that is damaged, decayed, dilapidated, unsanitary, unsafe, vermin- or rodent-infested or which lacks provision for basic illumination, ventilation or sanitary facilities to the extent that the defects create a hazard to the health, safety and welfare of the occupants or of the public may be declared unfit for human habitation. If a dwelling, dwelling unit, or rooming unit has been declared unfit for human habitation, the Housing Official must order the same vacated within a reasonable time and post a placard on same indicating that it is unfit for human habitation. 3. Correction. It is unlawful for a dwelling, dwelling unit or rooming unit or portion thereof to be used for human habitation until defective conditions have been corrected and written approval has been issued by the Housing Official. It is unlawful to deface or remove the declaration placard from a dwelling, dwelling unit or rooming unit. 4. Secure Unfit And Vacated Dwellings. The owner of a dwelling, dwelling unit, or rooming unit that has been declared unfit for human habitation or that is otherwise vacant for a period of 60 days or more must make the same safe and secure so that it is not hazardous to the health, safety and welfare of the public and does not constitute a public nuisance. A vacant dwelling open at doors, windows, or wall opening, if unguarded, is deemed to be a hazard to the health, safety and welfare of the public and a public nuisance within the meaning of this section. 5. Hazardous Building Declaration. If a dwelling has been declared unfit for human habitation and the owner has not remedied the defects within a prescribed reasonable time, the dwelling may be IX-03 declared a hazardous building and may be removed, razed or corrected pursuant to the city code and provisions of M.S. Chapter 463, as it may be amended from time to time. 6. Compliance Procedure Order. If the Housing Official determines that a rental dwelling, rental dwelling unit or rooming unit or portion thereof is in violation of an order of this chapter, the Housing Official may issue a compliance order setting forth the violations of such and ordering the owner/occupant, operator or agent to correct such violation. The compliance order must: 1. Be in writing; 2. Describe the location and nature of the violations of this section; 3. Establish a reasonable time for the correction of the violation and notify the owner of appeal procedures; 4. Be served upon the owner, owner’s agent, or the occupant, as the case may be: the notice is deemed to be properly served upon owner or agent, or upon any such occupant, if a copy thereof is: 1. Served upon the owner or agent; or 2. Sent by registered mail to the owner or agent’s last known address; or 3. Upon failure to effect notice through division (F)(4)(a) or (F)(4)(b), service may be madeServed pursuant to M.S. § 463.17, Subdivision 2, as it may be amended from time to time, which reads as follows: 4.3. “Service. This order shall be served upon the owner of record, or his agent if an agent is in charge of the building, and upon the occupying tenant, if there is one, and upon all lien holders of record, in the manner provided for service of a summons in a civil action. If the owner cannot be found, the order shall be served upon them by posting it at the main entrance to the building and by four weeks’ publication in the official newspaper of the municipality if it has one, otherwise in a legal newspaper in the county;” or . 5.4. Pursuant to M.S. § 145A.04, as it may be amended from time to time. (Prior Code, § 17.13) 157.14 Removed 157.15 Restrictions On Transfer Of Ownership It is unlawful for the owner of a dwelling, dwelling unit or rooming unit upon whom a Compliance Order has been served to sell, transfer, mortgage or lease or otherwise dispose the dwelling, dwelling unit, or rooming unit to another person until the compliance order has been complied with, unless the owner furnishes to the grantee, lessee or mortgagee a true copy of any notice of violation or compliance order and obtains and possesses a receipt of acknowledgment. A person obtaining an interest in the dwelling, dwelling unit or rooming unit who has received notice of the existence of a compliance order is bound by the order without further notice and is subject to the penalties and procedures provided by this chapter. (Prior Code, § 17.15) 157.99 Penalty 1. General. It is unlawful to erect, construct, enlarge, alter, repair, move, improve, equip, use, occupy or maintain any building or structure within the City contrary to the provisions of this chapter. 2. Non-compliance. Failure to comply with a lawfully issued compliance order is a violation of this chapter. 3. (Prior Code, § 17.99) (Ord. 365, 2nd Series, passed 11-28-1994; Res. 1-9-00, passed 1-18-2000) IX-03 IX-03 Overview of Utility Rate Study City Council Meeting September 18, 2023 X-E-01 Items to Cover Review study objectives Conclusions and recommendations Key financial information Utility rates and customer impacts 2 X-E-01 Study Objectives Provide City with information to evaluate updated proposed rates for charging for service Review existing plans and projections Collect and analyze customer data Provide recommendation on planning for major capital improvements and financing 3 X-E-01 Conclusions and Recommendations Utility Rates Rates set at level to fund operations, meet debt service, and to provide for annual capital improvements Plan anticipates the following future level of rate increases will be needed over the planning period (2024-2032): 3.5% increase for Water rates 4.5% increase for Sanitary Sewer rates 4.0% increase for Storm Water rate 4 X-E-01 Impact on Example Customer 5 X-E-01 Impact on Development Fees 6 X-E-01 Financial Management of Utility Funds Activities of the utility enterprise funds should be recovered with the fees and charges of the individual utility Objectives for year-end cash balances: Cash sufficient to cover 3-months of operations Cash sufficient to cover following year debt service Cash sufficient to cover planned (pay-go) capital outlay 7 X-E-01 Water Fund Sound financial condition – revenues sufficient to cover expenses Plan assumes an average annual rate increase to customers of 3.5% Plan includes 1/3 FTE increase in 2025 Capital improvements to be funded with a combination of cash (pay-go) and bonding: Debt issuance anticipated in 2025, 2028, and 2029 to finance an estimated $7.905 million of $14.69 million of project costs 8 X-E-01 Water Fund Cash Balance 9 X-E-01 Water Fund Customers and Usage 10 X-E-01 Impact on Example Water Customer 11 X-E-01 Sanitary Sewer Fund Sound financial condition – revenues sufficient to cover expenses Plan includes 1/3 FTE increase in 2025 Plan assumes an annual average rate increase to customers of 4.5% Bonding is anticipated for capital improvements in all years, with the exception of 2030. Total debt issuance of $9.1 million anticipated to finance total project costs of approximately $10.425 million 12 X-E-01 Sanitary Sewer Fund Cash Balance 13 X-E-01 Sanitary Sewer Fund Customers and Usage 14 X-E-01 Impact on Example Sanitary Sewer Customer 15 X-E-01 Storm Water Fund Sound financial condition – revenues sufficient to cover expenses Plan includes 1/3 FTE increase in 2025 Plan assumes average annual increase of 4.0% annually Capital improvements to be funded with a combination of cash and bonding Debt issuance anticipated in 2024, 2027, 2030 and 2032 to finance the estimated $2.65 million of the $4.9 million of total storm utility projects 16 X-E-01 Storm Water Fund Cash Balance 17 X-E-01 Storm Water Fund Customers and Usage 18 X-E-01 Impact on Example Storm Water Customer 19 X-E-01 Bonds Outstanding Paid from Utility Revenue 20 X-E-01 Annual Debt Service Paid from Utility Revenue X-E-01 Comparison to Other Cities X-E-01 Summary City should annually review and adopt rate increases, paying particular attention to anticipated changes to MCES charges and impact on Sewer expenses City should adopt rates that achieve revenues to meet both cash objectives and net position targets 23 X-E-01 Northland Public Finance Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC Registered with SEC and MSRB Thank You 24 Tammy Omdal 612-851-4964 tomdal@northlandsecurities.com Jessica Green 612-851-5930 jgreen@northlandsecurities.com X-E-01 City of Hastings, MN Financial Management Plan For Water Fund, Sewer Fund, and Storm Fund (Utility Study) September 18, 2023 Northland Securities, Inc.150 South Fifth Street , Suite 3300Minneapolis, MN 55402 Toll Free 1-800-851-2920 Main 612-851-5900www.northlandsecurities.comMember FINRA and SIPCRegistered with SEC and MSRB X-E-01 2 This page is intentionally blank. X-E-01 i CONTENTS Letter of Transmittal 1. Introduction and Summary 1Overview ............................................................................................................................1Study Approach ..................................................................................................................1Revenue Sufficiency ...........................................................................................................1Rate Calculation .................................................................................................................2Organization of the Plan .....................................................................................................3 Table 1 - Water Fund Key Financial Summary Data ............................................................4Chart 1 - Water Fund Projected Ending Cash Position .......................................................5Charts 2, 3, 4, 5 - Water Fund - Key Financial Summary Data ............................................6 Table 2 - Sewer Fund Key Financial Summary Data ............................................................7Chart 6- Sewer Fund Projected Ending Cash Position ........................................................8Charts 7, 8, 9, 10- Sewer Fund - Key Financial Summary Data ...........................................9 Table 3 - Storm Fund Key Financial Summary Data ..........................................................10Chart 11- Storm Fund Projected Ending Cash Position ....................................................11Charts 12, 13, 14, 15- Storm Fund - Key Financial Summary Data ...................................12 Charts 16, 17 - Low Volume Customer Water and Sewer Bill...........................................13Charts 18, 19 - Medium Volume Customer Water and Sewer Bill....................................14Charts 20, 21 - High Volume Customer Water and Sewer Bill ..........................................15 2. Best Practices Evaluation 16 Overview ..........................................................................................................................16 Irrigation / Rate Structures ......................................................................................16 Water Conservation Elements and Rate Structures ................................................16 Billing Cycles ............................................................................................................17 Comparison to Other Minnesota Cities ............................................................................18 Chart 22 - Low Volume Customer Comparison to Other Cities ........................................19 Chart 23 - Medium Volume Customer Comparison to Other Cities .................................20 Chart 24 - High Volume Customer Comparison to Other Cities .......................................21 4. Rate Structure 22 Equity of Current Rate Structure for Water and Sewer ....................................................22 Revenue from Fixed Rate Versus Volume Basis ................................................................22 Figure 1 - Charges for Services Revenue ..........................................................................23 Evaluation of Funding Approach for Infrastructure ..........................................................23 Contents X-E-01 ii Funding Depreciation .......................................................................................................23 Cash Balance Targets ........................................................................................................24 Unrestricted Net Position Target ......................................................................................24 Price Elasticity of Demand for Water ...............................................................................24 Chart 25 - Water Revenue - Volume Basis Versus Non-Volume Basis ..............................25 Chart 24 - Sewer Revenue - Volume Basis Versus Non-Volume Basis ..............................25 5. Capital Improvement Plan 26 Overview ..........................................................................................................................26 Capital Projects ................................................................................................................26 Source of Funding for Capital Projects .............................................................................26 Chart 27 - Water Fund - Annual Capital Project Costs ......................................................27 Chart 28 - Sewer Fund - Annual Capital Project Costs ......................................................27 Chart 29 - Storm Fund - Annual Capital Project Costs ......................................................28 Table 4 - Water Fund - Capital Improvement Plan ...........................................................29 Table 5 - Sewer Fund - Capital Improvement Plan ...........................................................30 Table 6 - Storm Fund - Capital Improvement Plan............................................................31 Table 7 - Bonds Outstanding - Existing and Future Bonds ................................................32 Chart 30 - Bonds Outstanding Payable from Utility Funds ...............................................33 Chart 31 - Annual Debt Service Payable from Utility Funds .............................................33 6. Financial Plans 34Revenue Sufficiency .........................................................................................................34Key Assumptions ..............................................................................................................34 Water Fund ......................................................................................................................36Table 8 - Pro Forma .................................................................................................37Table 9 - Year End Cash Balances.............................................................................39Table 10 - Customers/Usage and Rates and Charges for Services Revenue ............40 Sewer Fund ......................................................................................................................43Table 11 - Pro Forma ...............................................................................................45Table 12 - Projected Year End Cash Balances ..........................................................47Table 13 - Customers/Usage and Rates and Charges for Services Revenue ............48 Storm Fund ......................................................................................................................50Table 14 - Pro Forma ...............................................................................................51Table 15 - Projected Year End Cash Balances ..........................................................53Table 14 - Customers/Usage and Rates and Charges for Services Revenue ............54 7. Appendix 55 Comparison to Other Cities ..............................................................................................56 Contents X-E-01 iii September 18, 2023 Chris Eitemiller Finance Manager City of Hastings 101 4th Street East Hastings, MN 55033 RE: Financial Management Plan for Water, Sewer, and Storm Funds Dear Chris, Northland is pleased to present the City of Hastings with a Financial Management Plan for Water, Sewer, and Storm Funds (the “Plan”). The Plan provides the results of our analytical work and facilitation of the process to guide the city towards arriving at a conclusion on utility rate fee schedule for the next decade. The Plan provides options for revenue generation structure that is projected to be financially solvent, fair to end-users, economically competitive, and in proposed alignment with what we understand to be the city’s overall philosophy on utility fees. Sincerely, NORTHLAND SECURITIES, INC. Tammy Omdal Jessica Green Managing Director Managing Director 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4964 / Email: tomdal@northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB X-E-01 1 Introduction and SummaryINTRODUCTION AND SUMMARY ing reports on customer billings for years 2020 and 2021, with volumes billed by billing period and cus- tomer classifications. Northland relied on the data as presented by the city for projection of water use and volumes by tier and average number of billing units per year. • City provided historical financial data along with cur- rent budget plans and CIP. • Information provided by the city was organized, ana- lyzed, and used to support the development of the Plan. Prior year data included in the Plan is reconciled with the city’s audited financial statements. • City staff offered input and feedback on assumptions for the study. Revenue Sufficiency The study evaluated the sufficiency of revenues to meet current and projected financial requirements for the Util- ity Funds over the next decade, and determined the rates necessary in each year of the projection period to provide sufficient revenues to meet objectives. For purposes of the Plan, the objectives included providing revenue sufficient to achieve year-end cash balances to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements Reserves for future capital improvements includes cash available from connection and access charges collected at time of development reserved for future improvements. Overview The Financial Management Plan for Water, Sewer, and Storm Funds (the “Plan”) is intended to serve as a guide for financial management of the water, sewer, and storm systems of the city (the “Utility Funds”). The objectives of the study for the Plan were as follows: • Revenue Sufficiency - develop and populate a fore- casting model to determine the revenue needed to satisfy projected operating, capital improvements, and debt service while maintaining adequate reserves for future capital needs. The city desires to minimize debt issuance for capital improvements when possible. • Rate Calculation - Review existing rate structures for the Utility Funds and develop and propose modifica- tions to ensure that rates reflect accepted practices, fair and equitable distribution of costs. The Plan includes anticipated future capital improvements for the Utility Funds for years 2023-2032 (the “CIP”). Esti- mates include future costs and timing of projects. The ac- tual timing for future system improvements will depend in part on the growth rate of the city. While the specific timing is uncertain, awareness of the necessity of these future im- provements is important when considering rates and level of reserves as presented in the Plan. Study Approach The following steps were taken as part of the study: • City provided information on customer activity, includ- X-E-01 2 Introduction and SummaryThe city accounts for water, sewer, and storm services in the Water Fund, Sewer Fund, and the Storm Fund, reported as Enterprise Funds of the city. Enterprise Funds are used to account for ongoing activities that are similar to businesses found in the private sector. The Enterprise Funds are considered self-supporting in that the services rendered by them are financed primarily through user charges. The costs of providing services, such as capital costs, depreciation, and debt service, are recov- ered with fees and charges, rather than with taxes or similar revenues. The graphics and tables that follow provide a summary of key financial information for the Utility Funds, including the revenue sufficiency of the proposed rates to meet ending cash objectives. Rate Calculation The city has a practice of annually adjusting utility rates to ensure revenue is sufficient. The city has a two-part rate structure for the water and sewer services, comprised of both fixed and variable charges based on volume. A tier structure is recommended by generally accepted practices and is a practice followed by most cities within the Twin Cities metropolitan area. A two-part rate structure recovers a portion of system costs in a fixed charge, recognizing that the water and sewer services have certain fixed costs that are incurred year-round regardless of the level of water us- age by customers. Storm services are billed based on a per customer basis. It is estimated that approximately 70%-85% of the Water Fund and Storm Fund expenses, including depreciation, are fixed, and for the Sewer Fund it is approximately 30%. The fixed expenses for the Sewer Fund are lower because of the collection and treatment system operated by Metropolitan Council Environmental Services (MCES). Based on the results of the study, for usage or metered vol- ume-based rates the following is recommended: • Maintain the city’s structure for base rate charges with annual inflationary adjustments to cover the projected annual increases in fixed costs for services. • Consider the cost/benefit of converting from a quar- terly to monthly billing cycle. The benefits of a monthly billing cycle are covered later. • Establish rates at a level that provides an appropriate level of cash reserves for future capital improvements that are not yet programmed in the CIP. The reserves should be maintained at a level that is consistent with the city’s past experience for contingency and at a level that reflects uncertainty about cost and timing of fu- ture infrastructure needs, and the city’s desire to limit the issuance of debt financing when feasible. The Plan anticipates approximately 3.5% average annual rate increase for water services, 4.5% for sewer services, and 4% for storm services beginning in 2024. The annual rate increases are approximate average annual increases, and reflect the anticipated net cost increases and revenue sufficiency objectives in the Plan. The graphics and tables that follow present the impact to an average residential customer at various levels of water use resulting from the proposed rates. Customer bill amounts are shown on a quarterly basis consistent with the city’s current billing cycle. Utility rates and tier structures should be reviewed annually to ensure that rates and structure provide adequate rev- enues based on actual experience. Future rates should be set based on actual data and performance, which will be X-E-01 3 Introduction and Summaryimpacted by timing of future development, among other factors. Organization of Plan The Plan is organized into seven sections: 1. Introduction and Summary provides information on the study approach, revenue sufficiency, and rate calcula- tions. 2. Best Practices Evaluation provides information on lit- erature search for best practices, and comparison to other cities. 3. Rate Structure provides information on equity of the current rate structure, evaluation of funding approach for infrastructure, and approach for funding deprecia- tion. 4. Capital Improvement Plan provides information on the city’s plans for maintaining and improving the water and sanitary sewer systems. This includes estimates on project costs, timing, and sources of funds. The time horizon for the CIP is 2023-2032. Information on out- standing debt obligation and debt service of the Utility Funds is included in this section. 5. Financial Plans provides the financial plans for the Util- ity Funds. The financial plans include historical, current, and projected sources and uses of funds and estimated ending cash balances. Financial plans take into account capital improvement plans and proposed rates. 6. Appendixes provides additional data and graphics. X-E-01 4 Introduction and SummaryTable 1 Water Fund Summary Water Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Revenues 2,668,223 2,966,836 2,896,394 2,890,923 5,099,397 3,108,955 3,229,588 3,348,716 3,479,382 3,608,946 Expenses 2,466,901 2,528,002 2,675,770 2,768,771 2,835,231 2,949,089 3,126,681 3,196,458 3,208,998 3,228,181 Revenue Over (Under) Expense 201,322 438,834 220,624 122,152 2,264,166 159,866 102,907 152,258 270,384 380,765 Projected Ending Cash by Purpose For future capital and unassigned 3,674,334 4,164,382 3,014,665 345,656 2,906,639 2,961,850 2,682,702 2,655,622 2,699,475 2,979,426 For planned capital 1,035,000 214,000 1,390,100 2,863,500 78,200 239,000 400,300 314,000 405,400 314,000 For 3-months of operating cash 334,054 351,659 362,209 373,075 384,267 395,796 407,669 419,899 432,496 445,471 For following year debt service 883,057 856,125 1,164,125 1,164,850 887,375 1,199,075 1,448,350 1,355,690 1,276,378 1,211,950 Total Projected Ending Cash 5,926,446 5,586,167 5,931,099 4,747,082 4,256,482 4,795,721 4,939,022 4,745,211 4,813,749 4,950,847 Net Position Ending unrestricted net position 5,669,155 5,308,976 5,659,059 4,480,244 3,994,899 4,539,445 4,688,106 4,499,709 4,573,714 4,716,335 As % of expense 230%210%211%162%141%154%150%141%143%146% Net Revenues as % of Debt Service 200% 185% 168% 124% 310% 172% 133% 119% 133% 147% Customers Average # of Customer Accounts Billed Per Quarter 7,653 7,785 7,858 7,894 7,930 7,965 8,001 8,036 8,072 8,107 Annual Volume Billed (1,000 of gallons) 717,493 726,073 730,818 733,158 735,498 737,773 740,113 742,388 744,728 747,003 Example Customer Residential Bill for Water Service (36,000 gallons per quarter) 45 47 48 50 52 54 56 58 61 63 $ Change in Total Annual Billed 2 2 2 2 2 2 2 2 2 % Change in Total Annual Billed 3.7%3.7%3.8%3.8%3.8%3.8%3.8%3.8%3.9% Notes: 1. Expenses includes depreciation expense. X-E-01 5 Introduction and Summary $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mi l l i o n s Chart 1. Water Fund Projected Ending Cash Position is projected to be sufficient to meet policy objectives and to position City to accumulate cash for infrastructure improvements Ending Cash Position with Rate Increases Desired Minimum Ending Cash Position X-E-01 6 Introduction and SummaryWater Fund $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 2 Water FundProjected Ending Cash (Investments) by Designation For future capital improvements For following year pay-go capital For 3-months of operating cash For following year debt service Cash is projected to be sufficient to meet minimum annual cash needs and to provide reserve for future capital improvements 0% 50% 100% 150% 200% 250% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 As % o f E x e p n s e ( T a r g e t i s f o r g r e a t e r t h a n 5 0 % ) Mil l i o n s Chart 3 Water Fund Ending Unrestricted Net Position Ending unrestricted net position As % of expense Ending unrestricted net position as % of expense is projected to be at or above a minimum target of 50% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 4Water FundRevenue and Expense Revenues Expenses Revenues are projected to cover expenses, revenues in excess of annual expenses comes from development fees collected to pay for future improvements 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 To t a l A v e r a g e N u m b e r o f C u s t o m e r B i l l s Vo l u m e B i l l e d ( 1 , 0 0 0 G a l ) Chart 5 Water Fund Customers and Annual Water Volume Billed Annual Volume Billed (1,000of gallons) Average # of Customer AccountsBilled PerQuarter Plan anticipates about 50 new customers added annually with average water volume of 65,000 gallons/year per customer X-E-01 7 Introduction and SummaryTable 2 Sewer Fund Summary Sewer Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Revenues 2,981,209 3,120,164 3,196,015 3,296,463 5,407,373 3,624,323 3,802,874 3,986,785 4,183,169 4,385,738 Expenses 2,886,951 3,096,743 3,306,366 3,469,696 3,673,517 3,864,458 4,099,039 4,283,115 4,462,320 4,647,975 Revenue Over (Under) Expense 94,258 23,422 (110,351) (173,234) 1,733,856 (240,135) (296,165) (296,330) (279,151) (262,237) Projected Ending Cash by Purpose For future capital and unassigned 2,912,371 3,155,626 3,219,397 1,234,401 3,113,222 2,951,114 2,399,841 2,177,257 1,966,827 1,773,378 For planned capital - - - 1,950,000 - - 300,000 - - - For 3-months of operating cash 614,857 654,192 685,600 718,585 753,158 789,538 827,675 867,809 909,887 954,173 For following year debt service 255,837 314,713 419,463 490,263 552,588 669,088 808,213 807,535 827,891 841,525 Total Projected Ending Cash 3,783,065 4,124,530 4,324,460 4,393,248 4,418,967 4,409,740 4,335,729 3,852,602 3,704,605 3,569,077 Net Position Ending unrestricted net position 4,158,065 4,502,630 4,705,622 4,777,432 4,806,131 4,799,839 4,728,716 4,248,429 4,103,221 3,970,427 As % of expense 144%145%142%138%131%124%115%99%92%85% Net Revenues as % of Debt Service 219% 154% 114% 98% 376% 73% 75% 82% 82% 88% Customers Total Average Annual # of Customer Accounts Billed Per Quarter 7,432 7,564 7,637 7,673 7,709 7,744 7,780 7,815 7,851 7,886 Total Annual Volume Billed (1,000 of gallons)485,489 494,069 498,814 501,154 503,494 505,769 508,109 510,384 512,724 514,999 Example Customer Residential Bill for Water Service (36,000 gallons per quarter) 178 186 194 203 212 222 232 242 253 264 $ Change in Total Annual Billed 8 8 9 9 10 10 10 11 11 % Change in Total Annual Billed 4.5%4.5%4.5%4.5%4.5%4.5%4.5%4.5%4.5% Notes: 1. Expenses includes depreciation expense. X-E-01 8 Introduction and Summary $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 M i l l i o n s Chart 6. Sewer Fund Projected Ending Cash Position is projected to be sufficient to meet policy objectives over the planning period Ending Cash Position with Rate Increases Desired Minimum Ending Cash Position X-E-01 9 Introduction and SummarySewer Fund $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 7Sewer FundProjected Ending Cash (Investments) by Designation For future capital improvements For following year pay-go capital For 3-months ofoperating cash For following yeardebt service Cash is projected to be sufficient to meet minimum annual cash needs and to provide reserve for future capital improvements 0% 20% 40% 60% 80% 100% 120% 140% 160% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 As % o f E x e p n s e ( T a r g e t i s f o r g r e a t e r t h a n 5 0 % ) Mil l i o n s Chart 8Sewer Fund Ending Unrestricted Net Position Endingunrestrictednet position As % of expense Ending unrestricted net position as % of expense is projected to be at or above a minimum target of 50%, but at a decline rate $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 9Sewer Fund Revenue and Expense Revenues Expenses Expenses, including deprecation, are anticipated to outpace revenues over the planning period 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 - 100,000 200,000 300,000 400,000 500,000 600,000 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 To t a l A v e r a g e N u m b e r o f C u s t o m e r B i l l s Vo l u m e B i l l e d ( 1 , 0 0 0 G a l ) Chart 10Sewer Fund Customers and Annual Water Volume Billed Total AnnualVolumeBilled (1,000 of gallons) TotalAverageAnnual # of Customer AccountsBilled PerQuarter Plan anticipates about 50 new customers added annually with average volume of 65,000 gallons/year per customer X-E-01 10 Introduction and SummaryTable 3 Storm Fund Summary Storm Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Revenues 836,262 820,338 859,890 897,708 937,558 978,658 1,022,070 1,066,845 1,114,134 1,162,911 Expenses 559,947 603,889 675,627 696,920 741,231 779,777 800,172 852,935 892,282 916,630 Revenue Over (Under) Expense 276,315 216,449 184,263 200,788 196,327 198,882 221,897 213,910 221,852 246,281 Projected Ending Cash by Purpose For future capital and unassigned 1,266,564 753,435 633,634 861,914 497,693 361,391 569,974 268,245 342,738 183,045 For planned capital - 775,000 325,000 - 525,000 325,000 - 425,000 75,000 300,000 For 3-months of operating cash 130,204 141,694 145,944 150,323 154,832 159,477 164,262 169,190 174,265 179,493 For following year debt service - 26,300 83,800 81,400 171,100 166,100 170,900 281,700 282,900 320,400 Total Projected Ending Cash 1,396,768 1,696,429 1,188,379 1,093,637 1,348,625 1,011,968 905,136 1,144,135 874,903 982,938 Net Position Ending unrestricted net position 1,161,768 1,451,929 934,104 829,303 1,073,942 726,635 608,844 836,565 555,729 651,821 As % of expense 207%240%138%119%145%93%76%98%62%71% Net Revenues as % of Debt Service 105% 68% 60% 57% 48% 44% 48% 47% 52% 55% Customers Total Average # of Residential Equivalent Units Billed Per Quarter 7,680 7,812 7,885 7,921 7,957 7,992 8,028 8,063 8,099 8,134 Residential Customer Average Residential Bill for Service 22 22 23 24 25 26 27 28 29 31 $ Change in Total Annual Billed 1 1 1 1 1 1 1 1 1 % Change in Total Annual Billed 4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0%4.0% Notes: 1. Expenses includes depreciation expense. X-E-01 11 Introduction and Summary $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 M i l l i o n s Chart 11. Storm Fund Projected Ending Cash Position is projected to be sufficient to meet policy objectives over the planning period Ending Cash Position with Rate Increases Desired Minimum Ending Cash Position X-E-01 12 Introduction and SummaryStorm Fund $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 12Storm Fund Projected Ending Cash (Investments) by Designation For future capital improvements For following year pay-go capital For 3-months of operating cash For following year debt service Cash is projected to be sufficient to meet minimum annual cash needs and to provide reserve for future capital improvements 0% 50% 100% 150% 200% 250% 300% $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 As % o f E x e p n s e ( T a r g e t i s f o r g r e a t e r t h a n 5 0 % ) Mil l i o n s Chart 13Storm Fund Ending Unrestricted Net Position Endingunrestrictednet position As % of expense Ending unrestricted net position as % of expense is projected to be at or above a minimum target of 50%, but at a decline rate $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Mil l i o n s Chart 14Storm Fund Revenue and Expense Revenues Expenses Revenues are projected to cover expenses within the Storm Fund - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 RE U Chart 15 Storm Fund Residential Equivalent Units (REU) Billed Plan anticipates about 50 new REU added per year X-E-01 13 Introduction and SummaryLow Volume Residential Customer Water and Sewer Bill $0 $10 $20 $30 $40 $50 $60 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 16Water ServicesLow Volume Customer (12,000 gallons/qtr) Water Utility Bill Annual &Change $0 $20 $40 $60 $80 $100 $120 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 17 Sewer Services Low Volume Customer (12,000 gallons/qtr) Sewer Utility Bill Annual &Change X-E-01 14 Introduction and SummaryMedium Volume Residential Customer Utility Bill Examples $0 $10 $20 $30 $40 $50 $60 $70 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 18Water ServicesMedium Volume Customer (18,000 gallons/qtr) Water Utility Bill Annual &Change $0 $20 $40 $60 $80 $100 $120 $140 $160 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 19 Sewer Services Medium Volume Customer (18,000 gallons/qtr) Sewer Utility Bill Annual &Change X-E-01 15 Introduction and SummaryHigh Volume Residential Customer Utility Bill Examples $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 20Water ServicesHigh Volume Customer (60,000 gallons/qtr) Water Utility Bill Annual &Change $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% % C h a n g e i n U t i l i t y B i l l Uti l i t y B i l l A m o u n t Chart 21 Sewer Services High Volume Customer (60,000 gallons/qtr) Sewer Utility Bill Annual &Change X-E-01 16 Best Practices and ComparisonsBest Practices and Comparisons ing rainy or wet weather. WSICS have proven to be valuable tools for residential cus- tomers with automated irrigation systems, particularly in suburban areas. Studies have shown that suburban prop- erties are more likely to have in-ground irrigation systems. This, coupled with the fact that suburban lot sizes are gener- ally larger than those in more denser urban environments, often leads to a greater demand for outdoor watering, par- ticularly in areas with higher property values. Additionally, research indicates that property owners in these areas are more likely to be concerned with the condition and appear- ance of landscaping and maintaining lawn health. High-demand residential water users are particularly sensi- tive to increasing rate structures. Their outdoor water us- age can be discretionary and may be scaled back should the cost of water become less palatable. Specific example of Midwestern cities with experience in modifying water rate structures in a way that results in a reduction in irrigation demand, includes cities of all sizes, located within large metropolitan areas and suburban ar- eas. Most of the examples of cities implementing programs for water conservation tend to be focused on providing financial assistance (grants or otherwise) to assist private property owners with acquisition of new plumbing fixtures (sinks, toilets, sprinkler systems) to improve water conser- vation. Water Conservation Elements and Rate Structures National studies support the finding that the utility rate lev- el itself matters more than the rate structure. Rates that are kept too low do not adequately cover the cost of operation, future replacement, and infrastructure expansion. Rates kept too low in the short term provide inaccurate informa- tion to customers on the long term cost of service. Overview This section provides information on best practices and comparisons to other cities to help inform city decisions for utility rates and billing cycles, among other purposes. Irrigation / Rate Structures Research regarding the relationship between inclining rate structures and demand for water is readily available. Re- search specific to rates versus irrigation demand is less prevalent, particularly for residential customers as these customers often lack separate irrigation meters. Research has shown that inclining rate structures are often successful in reducing overall water demand, which would suggest that demand for water used for irrigation purposes would also decline. Most studies specific to irrigation focus on the use of me- tering, consumption control devices, and the use of other measures specific to landscaping (soil additives, drought tolerant turf, etc.). Separate irrigation metering has proven to be a successful tool in reducing demand for water as it identifies the specific use of outdoor watering and is sepa- rate from normal residential use. Hastings promotes sepa- rate irrigation meters when appropriate and beneficial to the customer. Consumption control devices, such as weather sensitive irrigation control switches (WSICS), are powerful tools in reducing irrigation demand, particularly for high volume users. WSICS are designed to override automated or timer- controlled irrigation systems to prevent over watering dur- X-E-01 17 Best Practices and ComparisonsThe setting of rates and rate structure needs to take into ac- count both current and future needs for revenue. The rates and structure need to balance what are sometimes com- peting objectives. Those objectives may include: • Providing a stable source of revenue, recognizing water usage can vary from year to year due to weather condi- tions and other factors, to cover both variable and fixed costs, both in the short term and long term. • Promoting water conservation. • Providing for affordable and fair structure for charging for services. • Balancing the decision to pay for capital infrastructure with cash versus debt recognizing that future custom- ers will benefit from the improvements funded today. Conservation measures include placing the lowest 10-20% of users in the first tier, the more average users of 20-30% in the second tier, and the highest 20-30% and 10-20% of users in the third and fourth tiers, respectively. Tiered rates should increase respective to the desire for water conservation. Some studies suggest that each tier should be increased by 10, 20, and 30%, while more ag- gressive rate structures may have each tier increasing by 20 to 50%. In Minnesota, public water suppliers serving more than 1,000 people, large private water suppliers in designated Groundwater Management Areas, and all water suppliers in the Twin Cities metropolitan area are required to prepare and submit a water supply plan (WSP). For water suppliers in the metropolitan area, the WSP helps local governmental units to fulfill their statutory requirements to complete a local comprehensive plan. The water industry recognizes that there are many ways to design rates. Research and studies suggest that utilizing a three-or-four tiered approach, such as Hastings has adopt- ed, can demonstrate success in reducing water usage and encouraging conservation. Somes cities tend to recover significant amounts of fixed costs through volumetric rates, primarily for the purpose of promoting conservation. However, when drought-related water shortages over the past five years resulted in declin- ing water sales, those cities may find themselves at greater risk of not recovering their fixed costs. To promote revenue stability its important to not shift fixed costs into volumetric rates. The proposed rate structure for Hastings does not propose changes to shift any fixed costs of the systems into fixed charges versus volumetric rates. Billing Cycles Research has shown that monthly billing cycles can be help- ful in promoting water conservation as less frequent billing tends to disconnect users from monitoring usage. Hastings has a quarterly billing cycle. Billing on a monthly basis can more easily help to identify is- sues with water supply (plumbing that may be leaking) and allow customers to easily see the impacts of increasing or decreasing usage which can lead to behavior modification. Monthly billing can sometimes be more budget friendly for the rate payer and can be beneficial in reducing late pay- ments. Monthly billing will likely have a direct impact on costs as- sociated with utility billing due to the need for increased administrative support and distribution expense. Providers that utilize and promote online billing benefit from reduced costs associated with printing and mailing physical bills. X-E-01 18 Best Practices and ComparisonsTo analyze the cost of monthly versus the city’s current quarterly billing cycle, more information would be need- ed regarding the city’s data collection (meter readings) and other information gathered by the city. The cost of a monthly versus quarterly billing cycle was not analyzed as part of the study. Comparison to Other Cities As part of the study, water and sewer rate information for other cities was compiled and compared to Hastings. As shown in the charts that follow, water and sewer bills for utility customers in Hastings tend to fall in the lower range compared to the other cities included in the study. For equivalent comparison purposes, the bill comparisons are based on monthly equivalent bills. The actual billing cycles vary across cities. The rates used to calculate the monthly bills for the com- parative cities comes from the published fees schedule for each of the cities available on respective city websites. X-E-01 19 Best Practices and ComparisonsLOW VOLUME CUSTOMER COMPARISON Chart 22 $0 $1 0 $2 0 $3 0 $4 0 $5 0 $6 0 $7 0 $8 0 $9 0 Cottage Grove Farmington Lakeville Rosemount Hastings Apple Valley Lake Elmo 3,000 Gallons Monthly Volume - Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Water Sewer Stormwater X-E-01 20 Best Practices and ComparisonsMEDIUM VOLUME CUSTOMER COMPARISON Chart 23 $0 $1 0 $2 0 $3 0 $4 0 $5 0 $6 0 $7 0 $8 0 $9 0 Farmington Cottage Grove Lakeville Hastings Rosemount Apple Valley Lake Elmo 6,000 Gallons Monthly Volume - Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Water Sewer Stormwater X-E-01 21 Best Practices and ComparisonsHIGH VOLUME CUSTOMER COMPARISON Chart 24 $0 $2 0 $4 0 $6 0 $8 0 $1 0 0 $1 2 0 $1 4 0 $1 6 0 $1 8 0 Farmington Apple Valley Hastings Cottage Grove Lakeville Rosemount Lake Elmo 20,000 Gallons Monthly Volume - Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Water Sewer Stormwater X-E-01 22 Rate Structure Rate Structure Sewer Rate Structure Sewer volume is currently billed at a fixed rate per 1,000 gallons. Sewer services are billed based on actual consump- tion during the first quarter of the year, or actual water con- sumption during the billing period, whichever is less. The city does not bill sanitary sewer volume based on a tiered block rate structure. And the city does not vary sanitary sewer rates charged based on customer classifications - all customers are charged based on the same rate structure for sewer services. Revenue from Fixed Rate Versus Volume Basis A comparison of volume basis revenue versus non-volume basis revenue is provided in the charts that follow. The pro- jected revenues from the fixed rate charges (non-volume basis revenue) compared to total fixed expenses and total revenues is projected to remain fairly constant. Base Rates The proposed base rates for water and sanitary sewer ser- vices were determined based on the following targets: • Non-volume basis revenues from base charge equal to not less than 50% of total fixed expenses. • Non-volume basis revenues from base charge equal to not less than 30% of total revenues (total revenues in- cludes both base charges and volumetric-charges). The base rate for water services is projected to meet the above targets by year 2027 based on the proposed increas- es assumed within the Plan. The base rate for sewer is pro- jected to meet the minimum percentage of not less than 50% of total fixed expenses, but not less than 30% of total revenues. Significantly higher adjustments than proposed would be necessary to meet this target. Equity of Current Rate Structure The study included review and analysis of the city’s current utility rates. The proposed rates are based on meeting the following objectives: • Provide a clear understanding of the costs of water and sewer operations; and • Provide revenue generation structures that are finan- cially solvent, fair to end-users, economically competi- tive, and in alignment with the city’s overall philosophy on user fees. The existing rate structure is comprised of quarterly fixed charges per customer for water, sewer, and storm services. Water Rate Structure The quarterly charges include base charges for water ser- vices and for sewer services. The city varies the base charge based on customer meter size. The base charge for irriga- tion meters is twice the charge for non-irrigation meters. The city’s existing volumetric rates for water customers is a four-tier block rate structure, with volumes capped by tier and different rates charged per 1,000 gallon by tier. Residential customers are charged based on different maxi- mum volumes per tier compared to other customers, for example for commercial and industrial customers, but the rate charged per tier, for the four tiers, is the same for all customers. X-E-01 23 Rate StructureFigure 1 below provides information on revenue from fixed rates charges for both water and sewer. Evaluation of Funding Approach for Infrastructure The CIP provides that the city will strive to fund infrastruc- ture for water, sewer, and storm systems with cash versus debt when doing so does not put undue pressure on utility rates. The Plan includes bond issuance for the following: • $1.535 million in 2024 to finance $845,000 in Sewer Improvements and $690,000 in Storm Improvements. • $3.680 million in 2025 to finance $2,550,000 in Water Improvements and $1,130,000 in Sewer Improvements. • $595,000 in 2026 to finance Sewer Improvements. • $1.515 million in 2027 to finance $$805,000 in Sewer improvements, and $710,000 in Storm improvements. • $3.775 million in 2028 to finance $2,550,000 in Water improvements and $1,225,000 in Sewer improvements. • $4.905 million in 2029 to finance $2,805,000 in Water improvements and $2,100,000 in Sewer improvements. • $945,000 in 2030 to finance Storm improvements. • $915,000 in 2031 to finance Sewer improvements. • $840,000 in 2032 to finance $535,000 in Sewer im- provements and $305,000 in Storm improvements. The city plans to adopt annual rate increases to ensure suf- ficient cash is available to pay for planned capital improve- ments, operations and debt service. Recognizing that future customers will benefit from the im- provements funded with today’s dollars, it is always a bal- ancing decision to decide whether to pay for capital infra- structure with cash versus debt. There are many factors to consider, including balancing other city demands for debt financing of projects and the impact on the city’s overall outstanding debt obligations, among other factors. The city should continue to consider which projects make financial sense to fund from cash versus the issuance of debt. Figure 1. Revenue from Fixed Rate Charges (Non-Volume Basis Revenue) Year 2023 Projected Year 2027 Projected Non-Volume Basis Revenue (NVR) $807,756 $995,710 Total Fixed Expense $1,808,026 $2,093,661 Total Revenue $2,668,223 $2,999,397 NVR as % of Total Fixed Expense 45% 48% NVR as % of Total Revenue 30% 33% Non-Volume Basis Revenue (NVR) $577,318 $714,122 Total Fixed Expense $1,031,956 $1,309,192 Total Revenue $2,981,209 $3,457,373 NVR as % of Total Fixed Expense 56% 55% NVR as % of Total Revenue 19% 21% Water Fund Sanitary Sewer Fund X-E-01 24 Rate StructureFunding Depreciation The funding of depreciation, or setting aside of funds to re- place depreciated infrastructure, is an important element for establishment of sufficient rates. The study focused on the city’s asset management practices to maintain and replace aging infrastructure, including the city’s adoption of a long-range capital improvements plan. Rather than focus on “funding depreciation” we find it is better to gain a strong understanding of the expected fu- ture costs and, maybe more importantly, their timing, and plan for replacement of infrastructure and facilities. Using a planned schedule for capital improvements and the in- corporation of those plans into the study does that. Capital improvement plans combined with financial management targets are an important element that allows for the setting of rates that meet city goals. Financial management targets begin with criteria for eval- uating overall financial condition. For instance, do projec- tions show sufficient revenues to cover planned operating and capital improvement expenses? The Utility Funds must do better than break even, but by how much? Cash Balance Targets The Plan helps to answer these question by allocating pro- jected year-end cash balance to defined purposes. One of the purposes is for planned capital acquisition and reserves for future capital. The year end cash balances are targeted to meet the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital Taken together these targets for ending cash help determine if future financial scenarios provide adequate amounts of available financial resources. Unrestricted Net Position Target The Plan provides a second criteria to evaluate revenue suf- ficiency. The second criteria is ending unrestricted net posi- tion as percent of expense. The unrestricted net assets of the Water Fund and the Sewer Fund can be considered a measure of available financial resources. The Plan sets a target (a floor) to strive to maintain an unre- stricted net position in the Utility Funds in the range of 50% of the subsequent year’s estimated expenditures. The majority of revenues in the Water Fund and the Sewer Fund come from user charges. Maintaining an unrestricted net position that is equal to at least 50% of the subsequent year’s expenditures will help to ensure that sufficient re- sources are available to fund services between receipts of user charges. The target (or floor) for unrestricted net position of 50% is meant to be an equivalent of the target for an unrestricted fund balance for the General Fund. Hastings has a stated policy to strive to maintain a year-end unassigned fund bal- ance in the Governmental Funds in the range of 35%–45% of the subsequent year’s budgeted expenditures. Equity is reported as “fund balance” in the General Fund and as “net position” within the Utility Funds. Net position and fund balance are the difference between fund assets and liabilities reflected on the statement of net position or balance sheet. . X-E-01 25 Rate StructurePrice Elasticity of Demand for Water The model developed for the study provides the ability to test different assumptions for how water usage may re- spond to price changes. The model allows for an input of estimated price elasticity of demand for water to adjust wa- ter usage for each one-percent increase in rate. While the model provides the ability to input different as- sumptions for price elasticity of demand, the Plan does not include a factor for reduction in demand based on proposed pricing changes in the Plan. General demand for municipal water is assumed to remain constant, with the exception of growth from new development. While not proposed in the Plan, a more aggressive rate structure may result in a stronger economic relationship between water use and price, with water use responding to price. X-E-01 26 Rate Structure 0% 5% 10% 15% 20% 25% 30% 35% 40% 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 No n - V o l u m e B a s i s R e v e n u e a s % o f T o t a l R E v e n u e Mill i o n s Chart 25 Water Revenue Volume BasisRevenue Non-Volume BasisRevenue Non-Volume BasisRevenue as % ofTotal Revenue Non-volume basis revenue as % of total revenue is projected to increase slightly over 0% 5% 10% 15% 20% 25% 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 No n - V o l u m e B a s i s R e v e n u e a s % o f T o t a l R E v e n u e Mill i o n s Chart 26 Sewer Revenue Volume BasisRevenue Non-Volume BasisRevenue Non-Volume Basis Revenue as % ofTotal Revenue Non-volume basis revenue as % of total revenue is projected to increase over the planning period but below 30% target X-E-01 27 Capital Improvement PlanCAPITAL IMPROVEMENT PLAN ments and to minimize the issuance of debt, with some limited exceptions in years where cash is not projected to be sufficient and bonding is anticipated for major improve- ment projects. Capital projects and source of funding are evaluated on an on-going basis by the city, including for timing and estimat- ed costs. Overview For purposes of the Plan, the city provided a Capital Im- provement Plan (the “CIP”) that included planned water, sewer, and storm capital improvement projects. A purpose of the Plan is to provide the city with options and recommendation for financing future capital improvement projects for water and sanitary sewer services. The tables that follow in this section provide information on planned capital improvement projects. Capital Projects The projects in the CIP include projects to manage both ex- isting and expanding service demands and to reconstruct or replace existing infrastructure. Future updates to the CIP may include service expansion to support development. The city collects development fees at time of development of property. Development fees collected are deposited into the Water Fund and the Sewer Fund and available to pay for future improvements needed as a result of development. Source of Funding for Capital Projects The source of funding for the planned capital projects is an- ticipated to come from the use of estimated available cash within the Utility Funds and the issuance of debt on a lim- ited basis. The Plan includes proposed utility fees and charges at a lev- el to provide for pay-go funding of annual capital improve- X-E-01 28 Capital Improvement Plan -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 En d i n g C a s h Mill i o n s Chart 27Water Fund Capital Improvement PlanAnnual Project Costs Capital Funded from Bond Proceeds Capital Funded from Cash/Non- Bond Sources $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 En d i n g C a s h Mill i o n s Chart 28Sewer FundCapital Improvement PlanAnnual Project Costs Capital Funded from Bond Proceeds Capital Funded from Cash/Non-Bond Sources X-E-01 29 Capital Improvement Plan $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 En d i n g C a s h Mill i o n s Chart 29Storm Fund Capital Improvement Plan Annual Project Costs Capital Funded from Bond Proceeds Capital Funded from Cash/Non- Bond Sources X-E-01 30 Capital Improvement Plan Table 4 Water Fund City of Hastings Capital Improvement Plan (CIP) Water Fund Budget 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Capital Outlay Acquisition of capital assets 431,500 1,035,000 2,714,000 1,390,100 2,863,500 2,578,200 2,989,000 400,300 314,000 405,400 Bond issuance cost - - 50,000 - - 50,000 55,000 - - - Total Capital Outlay 431,500 1,035,000 2,764,000 1,390,100 2,863,500 2,628,200 3,044,000 400,300 314,000 405,400 Source of Funds Bond proceeds 610,000 - 2,550,000 - - 2,550,000 2,805,000 - - - Transfers in - - - - - - - - - - Current revenue / use of cash in fund (178,500) 1,035,000 214,000 1,390,100 2,863,500 78,200 239,000 400,300 314,000 405,400 Total Source of Funds 431,500 1,035,000 2,764,000 1,390,100 2,863,500 2,628,200 3,044,000 400,300 314,000 405,400 X-E-01 31 Capital Improvement Plan Table 5 Sewer Fund City of Hastings Capital Improvement Plan (CIP) Sewer Fund Budget 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Capital Outlay Acquisition of capital assets 537,500 830,000 1,110,000 585,000 2,740,000 1,200,000 2,060,000 300,000 895,000 525,000 Bond issuance cost - 15,000 20,000 10,000 15,000 25,000 40,000 - 20,000 10,000 Total Capital Outlay 537,500 845,000 1,130,000 595,000 2,755,000 1,225,000 2,100,000 300,000 915,000 535,000 Source of Funds Bond proceeds 360,000 845,000 1,130,000 595,000 805,000 1,225,000 2,100,000 - 915,000 535,000 Transfers in 18,333 18,883 19,449 20,033 20,634 21,253 21,891 22,547 23,224 23,920 Current revenue / use of cash in fund 159,167 (18,883) (19,449) (20,033) 1,929,366 (21,253) (21,891) 277,453 (23,224) (23,920) Total Source of Funds 537,500 845,000 1,130,000 595,000 2,755,000 1,225,000 2,100,000 300,000 915,000 535,000 X-E-01 32 Capital Improvement Plan Table 6 Storm Fund City of Hastings Capital Improvement Plan (CIP) Storm Fund Budget 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Capital Outlay Acquisition of capital assets 117,000 675,000 710,000 325,000 695,000 525,000 325,000 925,000 425,000 375,000 Bond issuance cost - 15,000 - - 15,000 - - 20,000 - 5,000 Total Capital Outlay 117,000 690,000 710,000 325,000 710,000 525,000 325,000 945,000 425,000 380,000 Source of Funds Bond proceeds - 690,000 - - 710,000 - - 945,000 - 305,000 Transfers in - - - - - - - - - - Current revenue / use of cash in fund 117,000 - 710,000 325,000 - 525,000 325,000 - 425,000 75,000 Total Source of Funds 117,000 690,000 710,000 325,000 710,000 525,000 325,000 945,000 425,000 380,000 X-E-01 33 Capital Improvement Plan Table 7 Debt Payable from Utility Funds, Includes Existing and Planned New Debt Summary of Debt (Existing and New) Fiscal Year Principal Interest Total P&I Outstanding Principal Interest Total P&I Outstanding Principal Interest Total P&I Outstanding Principal Interest Total P&I Outstanding 2021 360,000 111,642 471,642 4,210,000 40,000 27,558 67,558 1,340,000 - - - - 400,000 139,200 539,200 5,550,000 2022 440,000 118,262 558,262 5,190,000 75,000 38,965 113,965 1,550,000 - - - - 515,000 157,227 672,227 6,740,000 2023 510,000 176,575 686,575 5,290,000 120,000 50,379 170,379 1,790,000 - - - - 630,000 226,954 856,954 7,080,000 2024 705,000 178,057 883,057 4,585,000 195,000 60,837 255,837 2,440,000 - - - 690,000 900,000 238,894 1,138,894 7,715,000 2025 705,000 151,125 856,125 6,430,000 230,000 84,713 314,713 3,340,000 65,000 26,300 91,300 625,000 1,000,000 262,138 1,262,138 10,395,000 2026 940,000 224,125 1,164,125 5,490,000 300,000 119,463 419,463 3,635,000 60,000 23,800 83,800 565,000 1,300,000 367,388 1,667,388 9,690,000 2027 975,000 189,850 1,164,850 4,515,000 360,000 130,263 490,263 4,080,000 60,000 21,400 81,400 1,215,000 1,395,000 341,513 1,736,513 9,810,000 2028 730,000 157,375 887,375 6,335,000 405,000 147,588 552,588 4,900,000 125,000 46,100 171,100 1,090,000 1,260,000 351,063 1,611,063 12,325,000 2029 975,000 224,075 1,199,075 8,165,000 490,000 179,088 669,088 6,510,000 125,000 41,100 166,100 965,000 1,590,000 444,263 2,034,263 15,640,000 2030 1,155,000 293,350 1,448,350 7,010,000 565,000 243,213 808,213 5,945,000 135,000 35,900 170,900 1,775,000 1,855,000 572,463 2,427,463 14,730,000 2031 1,105,000 250,690 1,355,690 5,905,000 585,000 222,535 807,535 6,275,000 215,000 66,700 281,700 1,560,000 1,905,000 539,925 2,444,925 13,740,000 2032 1,065,000 211,378 1,276,378 4,840,000 590,000 237,891 827,891 6,220,000 225,000 57,900 282,900 1,640,000 1,880,000 507,169 2,387,169 12,700,000 2033 1,040,000 171,950 1,211,950 3,800,000 605,000 236,525 841,525 6,565,000 260,000 60,400 320,400 1,380,000 1,905,000 468,875 2,373,875 11,745,000 2034 825,000 135,500 960,500 2,975,000 590,000 250,800 840,800 5,975,000 270,000 49,800 319,800 1,110,000 1,685,000 436,100 2,121,100 10,060,000 2035 855,000 101,900 956,900 2,120,000 620,000 226,600 846,600 5,355,000 200,000 40,400 240,400 910,000 1,675,000 368,900 2,043,900 8,385,000 2036 575,000 73,300 648,300 1,545,000 640,000 201,400 841,400 4,715,000 205,000 32,300 237,300 705,000 1,420,000 307,000 1,727,000 6,965,000 2037 600,000 49,800 649,800 945,000 600,000 176,600 776,600 4,115,000 215,000 23,900 238,900 490,000 1,415,000 250,300 1,665,300 5,550,000 2038 620,000 25,400 645,400 325,000 620,000 152,200 772,200 3,495,000 135,000 16,900 151,900 355,000 1,375,000 194,500 1,569,500 4,175,000 2039 325,000 6,500 331,500 - 640,000 127,000 767,000 2,855,000 140,000 11,400 151,400 215,000 1,105,000 144,900 1,249,900 3,070,000 2040 - - - - 590,000 102,400 692,400 2,265,000 145,000 5,700 150,700 70,000 735,000 108,100 843,100 2,335,000 2041 - - - - 510,000 80,400 590,400 1,755,000 35,000 2,100 37,100 35,000 545,000 82,500 627,500 1,790,000 2042 - - - - 545,000 59,300 604,300 1,210,000 35,000 700 35,700 - 580,000 60,000 640,000 1,210,000 2043 - - - - 420,000 40,000 460,000 790,000 - - - - 420,000 40,000 460,000 790,000 2044 - - - - 325,000 25,100 350,100 465,000 - - - - 325,000 25,100 350,100 465,000 2045 - - - - 150,000 15,600 165,600 315,000 - - - - 150,000 15,600 165,600 315,000 2046 - - - - 155,000 9,500 164,500 160,000 - - - - 155,000 9,500 164,500 160,000 2047 - - - - 80,000 4,800 84,800 80,000 - - - - 80,000 4,800 84,800 80,000 2048 - - - - 80,000 1,600 81,600 - - - - - 80,000 1,600 81,600 - 2049 - - - - - - - - - - - - - - - - Total 14,505,000 2,850,853 17,355,853 11,125,000 3,252,316 14,377,316 2,650,000 562,800 3,212,800 28,280,000 6,665,969 34,945,969 Total Enterprise FundsWater Fund Sewer Fund Storm Fund X-E-01 34 Capital Improvement Plan The bonds outstanding and annual debt service amounts shown in the charts here are for the combined total esti- mated debt payable from rev- enues from the Water Fund, Sewer Fund and Storm Fund. The charts include combined existing debt and future esti- mated debt based on antici- pated bond issuance as shown in the Plan. The charts include debt sup- ported by utility revenue only and does not include debt payable from property tax levy or other sources of revenue. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 3 6 2 0 3 7 2 0 3 8 2 0 3 9 2 0 4 0 2 0 4 1 2 0 4 2 Mill i o n s Chart 30 Outstanding Bonds Payable Includes Existing and Planned Debt Issuance Storm Fund Sewer Fund Water Fund $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 3 6 2 0 3 7 2 0 3 8 2 0 3 9 2 0 4 0 2 0 4 1 2 0 4 2 Mill i o n s Chart 31 Debt Service PayableIncludes Existing and Planned Debt Issuance Storm Fund Sewer Fund Water Fund X-E-01 35 Financial Plans FINANCIAL PLANS crease by 6.80% in 2024 and 5% annually throughout the planning period; the City should closely monitor annual increases to MCES charges and adjust rates as necessary. The Plan includes an increases of one new position (FTE), split equally between the utility funds. • Depreciation is adjusted for anticipated annual depre- ciable capital acquisitions. New capital is depreciated over a 50 year term in the Plan. • Capital improvement plan will be implemented at esti- mated project costs and sources of funding as included in the Plan. • Water customers and volume billed is based on his- torical customer volumes plus estimates for future development. The Plan anticipates an average annual increase of approximately 50 new residential customer units between 2023-2032. The average annual con- sumption per unit is assumed to remain constant over the planning period at 65,000 gallons for water and for sewer. • Rate increases to provide revenue sufficiency. The Plan anticipates fees and charges will increase by an average annual amount of 3.5% for water, 4.5% for sewer, and 4.0% for storm services between 2024-2032. There are no proposed changes to the tier structure for charging water and sewer volume. • Base rate and volume based tiered rate structure in- cludes charging a fixed quarterly fee for water and sani- tary sewer services, consistent with the past structure for billing. Volume based tiered rate structure, includ- ing maximum volumes per tier, are not proposed to be modified. • Development related charges for access (city WAC and SAC) are accounted for in the Water Fund and the Revenue Sufficiency Based on historical financial performance, current utility rates and structure, and anticipated future capital projects, financial plans have been prepared for the Utility Funds. The reports demonstrate revenue sufficiency, which is the level of revenue needed to satisfy each system’s projected operating, capital costs, and debt service while maintaining adequate reserves for future capital needs of the systems. The following reports are provided for the Water Fund, Sewer Fund, and Storm Fund: • Pro Forma - Includes information on annual revenues and expenses and balance sheet items. • Year End Cash Balance - Includes explanation of the projected changes in year end cash balances. • Customers/Usage and Rates - Includes the number of customers, usage (volume billed) for prior years and projections for future years. Revenues by non-volume basis and volume basis are shown by customer type. Key Assumptions The financial plans are based on certain key assumptions, which are as follows: • Operating expenditures, including personnel costs, materials supplies, utilities and all other operating ex- pense will increase by approximately 3.0% per year, with exception for sanitary sewer disposal charges payable to the Met Council, which are estimated to in- X-E-01 36 Financial PlansSewer Fund. There are no access charges for the Storm Fund. The City also charges a “Interceptor Sewer Fee” on a per unit basis. The timing of collection of develop- ment related charges does not directly correlate to the use of funds for capital improvements. Development related charges that have been collected but not spent are reflected in the cash reserve balances of the funds. The Plan assumes the following for WAC, SAC, and Sew- er Interceptor fee: - Increase WAC fee from $2,306.25 to $2,957 per unit - Increase SAC fee from $708.75 to $945 per unit - Maintain Sewer Interceptor Fee at $485 per unit The proposed WAC and SAC fees are based on an analy- sis of the City’s estimated water and sewer improve- ment project costs in future years that are planned to support new development. Improvement projects in- clude a new water well and pump house and elevated storage tank, and sanitary sewer pipe over-sizing and new lift station. The estimated costs for these future projects were spread over the City’s estimated growth in units (from development) out to year 2030. X-E-01 37 Financial Plans WATER FUND The Plan anticipates a 3.0% annual inflationary increase in operating expenses with .33 personnel (FTE) additions. Debt service expense includes interest expense on both ex- isting outstanding bonds and for anticipated new issuance. The Plan models annual depreciation expense on both ex- isting capital assets and anticipated new assets to be ac- quired. The Water Fund includes annual transfers to other funds based on historical levels. Cash Balance The financial plan includes projected assets and liabilities for the Fund. This includes projected annual year-end cash balance. A table that follows provides a detailed summary on projected change in cash year by year. Based on assumptions in the Plan, including collection of development fees related to growth (that will be used to pay for future capital improvements), it is projected that the cash balance position of the Fund will decrease over the planning period. The Fund is projected to have future cash sufficient to meet the objectives for cash balance, including cash sufficient to cover: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements The sufficiency of the estimated reserves for capital im- provements will depend on future capital improvement projects that may not yet be programmed in the CIP. WATER FUND Background The Water Fund is used to account for the operating and capital improvement costs related to maintenance of the water utility system. The Fund is in sound financial condi- tion. Future financial performance will be impacted by fu- ture capital improvement needs and the timing of future development in the city. Future development will increase the demands on the wa- ter utility infrastructure but will also provide increased rev- enue to support the maintenance and operation of the sys- tem. Expansion of infrastructure, including treatment may be needed in the future. The city anticipates collection of future development related revenue, which is reported as revenue in the Water Fund. Revenues The major source of revenue comes from the collection of quarterly charges, including a fixed based charge to each customer, along with volume-based charges for water use. The financial plan for the Water Fund reflects the adopted rates for 2023 and proposed future year increases averag- ing 3.5% annually. Interest income is earned on the cash balance in the Fund that is recorded as revenue. The investment earnings rate is projected to be 2.0% for future years. Expenses The expenses are for payment of operating expenses, debt service expense, and depreciation expense. X-E-01 38 Financial Plans WATER FUNDTable 8 Water Fund Page 1 of 2City of Hastings Finance Plan Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Charges for services 2,563,573 2,326,389 2,347,973 2,409,023 2,511,592 2,610,992 2,714,795 2,822,501 2,935,226 3,052,215 3,174,677 3,301,798 Availability charges 113,006 724,163 160,000 393,281 215,861 106,452 106,452 103,495 106,452 103,495 106,452 103,495 Service charges - state testing fee - - - - - - - - - - - - Service charges - unbilled revenues - - - - - - - - - - - - Service charges - cancels/manual bill adjusts - - - - - - - - - - - - Property taxes - - - - - - - - - - - - Capital contributions - non-cash 328,395 402,154 - - - - - - - - - - Distillery waste disposal - - - - - - - - - - - - Connection permits - - - - - - - - - - - - Sales of meters 11,448 26,106 35,000 36,050 37,132 38,245 39,393 40,575 41,792 43,046 44,337 45,667 Penalties and other revenues 43,200 53,547 104,250 107,378 110,599 113,917 117,334 120,854 124,480 128,214 132,061 136,023 Investment income and other earnings (4,055) (70,710) 21,000 21,105 21,211 21,317 21,423 21,530 21,638 21,746 21,855 21,964 Connection charges - - - - - - - - - - - - Intergovernmental revenues - - - - - - 2,100,000 - - - - - Other revenues and special items 1,345 3,862 - - - - - - - - - - Special assessments 114,436 59,148 - - - - - - - - - - Special item (3,762) 9,082 - - - - - - - - - - Transfers in - - - - - - - - - - - - Capital contributions - - - - - - - - - - - - Total Revenues 3,167,586 3,533,741 2,668,223 2,966,836 2,896,394 2,890,923 5,099,397 3,108,955 3,229,588 3,348,716 3,479,382 3,608,946 Expenses Fixed Expenses Personnel services 465,560 633,889 638,423 657,576 677,303 697,622 718,551 740,107 762,310 785,180 808,735 832,997 Personnel services / FTE changes - - - - 30,333 31,243 32,181 33,146 34,140 35,165 36,220 37,306 Transfers out General Fund - - - - - - - - - - - - Transfer out Debt Service Fund - - - - - - - - - - - - Transfer out Other Funds 33,806 38,877 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 Interest and fiscal expense 102,647 159,845 176,575 178,057 151,125 224,125 189,850 157,375 224,075 293,350 250,690 211,378 Depreciation 897,045 943,576 952,206 972,906 1,027,186 1,054,988 1,112,258 1,163,822 1,223,602 1,231,608 1,237,888 1,245,996 Subtotal Fixed Expenses 1,499,058 1,776,187 1,808,026 1,849,361 1,926,769 2,048,800 2,093,661 2,135,272 2,284,950 2,386,124 2,374,355 2,368,499 Variable Expenses Supplies 392,349 107,713 159,100 163,873 168,789 173,853 179,068 184,441 189,974 195,673 201,543 207,589 Meters - - - - - - - - - - - - Placeholder - - - - - - - - - - - - Repairs and maintenance - - 135,144 139,198 143,374 147,675 152,106 156,669 161,369 166,210 171,196 176,332 Professional services and other expense 554,608 516,488 364,631 375,570 386,837 398,442 410,395 422,707 435,388 448,450 461,904 475,761 Bond issuance cost - - - - 50,000 - - 50,000 55,000 - - - Subtotal Variable Expenses 946,957 624,201 658,875 678,641 749,000 719,971 741,570 813,817 841,731 810,333 834,643 859,682 Total Expenses 2,446,015 2,400,388 2,466,901 2,528,002 2,675,770 2,768,771 2,835,231 2,949,089 3,126,681 3,196,458 3,208,998 3,228,181 Change in Net Position 721,571 1,133,353 201,322 438,834 220,624 122,152 2,264,166 159,866 102,907 152,258 270,384 380,765 Ending net position 17,283,965 18,417,318 18,618,640 19,057,474 19,278,098 19,400,250 21,664,416 21,824,282 21,927,189 22,079,447 22,349,832 22,730,597 X-E-01 39 Financial Plans WATER FUNDTable 8 Water Fund Page 2 of 2City of Hastings Finance Plan Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Assets and Deferred Outflow of Resources Cash and cash equivalents 3,721,657 5,061,827 5,926,446 5,586,167 5,931,099 4,747,082 4,256,482 4,795,721 4,939,022 4,745,211 4,813,748 4,950,847 Due from other governments - - - - - - - - - - - - Due from other funds / advances - - - - - - - - - - - - Special assessments receivable 146,838 149,166 125,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Other assets / receivables 554,787 507,713 510,000 515,100 520,251 525,454 530,708 536,015 541,375 546,789 552,257 557,779 Capital assets 38,040,940 39,962,106 40,393,606 41,428,606 44,142,606 45,532,706 48,396,206 50,974,406 53,963,406 54,363,706 54,677,706 55,083,106 Less Accumulated depreciation (20,022,912) (20,882,724) (21,834,930) (22,807,836) (23,835,022) (24,890,010) (26,002,268) (27,166,090) (28,389,692) (29,621,300) (30,859,188) (32,105,184) Deferred outflows of resources 196,001 184,372 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Total Assets and Deferred Outflows 22,637,311 24,982,460 25,320,122 25,022,037 27,058,934 26,215,231 27,481,128 29,440,052 31,354,111 30,334,406 29,484,524 28,786,549 Liabilities and Deferred Inflow of Resources Other current liabilities / payables 595,562 783,987 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 Contracts payable - - - - - - - - - - - - Due to other governments - - - - - - - - - - - - Bonds payable 4,210,000 5,190,000 5,290,000 4,585,000 6,430,000 5,490,000 4,515,000 6,335,000 8,165,000 7,010,000 5,905,000 4,840,000 Unamortized bond premium 290,577 354,656 319,190 287,271 258,544 232,690 209,421 188,479 169,631 152,668 137,401 123,661 Net pension liability (non-current)209,916 443,614 445,000 445,000 445,000 445,000 445,000 445,000 445,000 445,000 445,000 445,000 Other non-current liabilities (152,401) (218,247) (152,401) (152,401) (152,401) (152,401) (152,401) (152,401) (152,401) (152,401) (152,401) (152,401) Deferred inflows of resources 199,692 11,132 199,692 199,692 199,692 199,692 199,692 199,692 199,692 199,692 199,692 199,692 Total Liabilities and Deferred Inflows 5,353,346 6,565,142 6,701,481 5,964,562 7,780,835 6,814,981 5,816,712 7,615,770 9,426,922 8,254,959 7,134,692 6,055,952 Total Liabilities, Deferred Inflows, and Net Position 22,637,311 24,982,460 25,320,122 25,022,037 27,058,934 26,215,231 27,481,128 29,440,052 31,354,111 30,334,406 29,484,524 28,786,549 Net investments in capital assets 13,517,451 13,534,726 12,949,486 13,748,499 13,619,040 14,920,006 17,669,517 17,284,837 17,239,083 17,579,738 17,776,117 18,014,261 Unrestricted net position 3,766,514 4,882,592 5,669,155 5,308,976 5,659,059 4,480,244 3,994,899 4,539,445 4,688,106 4,499,709 4,573,714 4,716,335 Total net position 17,283,965 18,417,318 18,618,640 19,057,474 19,278,098 19,400,250 21,664,416 21,824,282 21,927,189 22,079,447 22,349,832 22,730,597 X-E-01 40 Financial Plans Table 9 Water Fund City of HastingsEnding Cash Balance Water Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 1,297,298 1,336,217 1,406,637 1,448,836 1,492,301 1,537,070 1,583,182 1,630,678 1,679,598 1,729,986 Capital Acquisition and Cost of Issuance of Bonds 431,500 1,035,000 2,764,000 1,390,100 2,863,500 2,628,200 3,044,000 400,300 314,000 405,400 Other Interfund Transfers 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 40,822 Debt Service (includes transfers for debt)686,575 883,057 856,125 1,164,125 1,164,850 887,375 1,199,075 1,448,350 1,355,690 1,276,378 Total Use of Cash 2,456,195 3,295,096 5,067,584 4,043,883 5,561,473 5,093,467 5,867,079 3,520,150 3,390,110 3,452,585 Source of Cash Revenue from Service Charges 2,508,223 2,573,555 2,680,533 2,784,471 4,992,945 3,005,460 3,123,136 3,245,221 3,372,930 3,505,451 Revenue from Connection and Availability Charges 160,000 393,281 215,861 106,452 106,452 103,495 106,452 103,495 106,452 103,495 Bond Proceeds 610,000 - 2,550,000 - - 2,550,000 2,805,000 - - - Interfund Transfers - - - - - - - - - - Total Source of Cash 3,278,223 2,966,836 5,446,394 2,890,923 5,099,397 5,658,955 6,034,588 3,348,716 3,479,382 3,608,946 Net Change in Other Assets and Liabilities 42,590 (12,019) (33,878) (31,057) (28,524) (26,249) (24,208) (22,377) (20,735) (19,263) Change in Cash Balance 864,618 (340,279) 344,932 (1,184,017) (490,600) 539,239 143,301 (193,811) 68,538 137,098 Beginning Cash Balance 5,061,827 5,926,446 5,586,167 5,931,099 4,747,082 4,256,482 4,795,721 4,939,022 4,745,211 4,813,749 Total Projected Ending Cash 5,926,446 5,586,167 5,931,099 4,747,082 4,256,482 4,795,721 4,939,022 4,745,211 4,813,749 4,950,847 Ending Cash by Purpose For future capital improvements 3,674,334 4,164,382 3,014,665 345,656 2,906,639 2,961,850 2,682,702 2,655,622 2,699,475 2,979,426 For following year pay-go capital 1,035,000 214,000 1,390,100 2,863,500 78,200 239,000 400,300 314,000 405,400 314,000 For 3-months of operating cash 334,054 351,659 362,209 373,075 384,267 395,796 407,669 419,899 432,496 445,471 For following year debt service 883,057 856,125 1,164,125 1,164,850 887,375 1,199,075 1,448,350 1,355,690 1,276,378 1,211,950 Total Projected Ending Cash 5,926,446 5,586,167 5,931,099 4,747,082 4,256,482 4,795,721 4,939,022 4,745,211 4,813,749 4,950,847 Note: Cash balances include cash and investments. WATER FUNDX-E-01 41 Financial Plans WATER FUNDTable 10 Water Fund Page 1 of 3City of Hastings Customers and Charges for Sales and Development Revenue Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj CUSTOMER DATA Average Annual Billing Units (Customers) Residential 6,919 6,942 7,010 7,142 7,215 7,251 7,286 7,321 7,356 7,391 7,426 7,461 Commercial 388 391 392 392 392 392 393 393 394 394 395 395 Governmental 50 53 53 53 53 53 53 53 53 53 53 53 Other 3 3 3 3 3 3 3 3 3 3 3 3 Irrigation 198 195 195 195 195 195 195 195 195 195 195 195 Total Customers 7,558 7,584 7,653 7,785 7,858 7,894 7,930 7,965 8,001 8,036 8,072 8,107 Volume (in thousands of gallons) Residential 572,631 531,081 505,501 514,081 518,826 521,166 523,441 525,716 527,991 530,266 532,541 534,816 Commercial 80,372 79,104 79,169 79,169 79,169 79,169 79,234 79,234 79,299 79,299 79,364 79,364 Governmental 35,968 41,191 41,191 41,191 41,191 41,191 41,191 41,191 41,191 41,191 41,191 41,191 Other 15,561 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 Irrigation 91,872 76,310 76,310 76,310 76,310 76,310 76,310 76,310 76,310 76,310 76,310 76,310 Total Volume 796,404 743,008 717,493 726,073 730,818 733,158 735,498 737,773 740,113 742,388 744,728 747,003 X-E-01 42 Financial Plans Table 10 Water Fund Page 2 of 3City of Hastings Customers and Charges for Sales and Development Revenue Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj REVENUE Revenue - Base Charge Residential $519,202 $539,255 $563,604 $602,928 $639,545 $674,873 $712,037 $751,230 $792,563 $836,150 $882,115 $930,587 Commercial $72,804 $75,932 $78,792 $82,732 $86,868 $91,212 $96,016 $100,817 $106,128 $111,434 $117,303 $123,168 Governmental $9,382 $10,293 $10,653 $11,186 $11,745 $12,332 $12,949 $13,596 $14,276 $14,990 $15,739 $16,526 Other $1,801 $1,864 $1,929 $2,026 $2,127 $2,234 $2,345 $2,463 $2,586 $2,715 $2,851 $2,993 Irrigation $74,305 $75,730 $78,390 $82,310 $86,425 $90,746 $95,284 $100,048 $105,050 $110,303 $115,818 $121,609 Total Revenue $677,495 $703,074 $733,368 $781,180 $826,710 $871,396 $918,631 $968,154 $1,020,602 $1,075,592 $1,133,826 $1,194,882 Revenue - State Testing Charge Residential $67,253 $67,476 $68,137 $69,420 $70,130 $70,480 $70,820 $71,160 $71,500 $71,841 $72,181 $72,521 Commercial $3,771 $3,801 $3,810 $3,810 $3,810 $3,810 $3,820 $3,820 $3,830 $3,830 $3,839 $3,839 Governmental $486 $515 $515 $515 $515 $515 $515 $515 $515 $515 $515 $515 Other $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 Irrigation $1,925 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 $1,895 Total Revenue $73,464 $73,716 $74,387 $75,670 $76,380 $76,730 $77,080 $77,420 $77,770 $78,110 $78,460 $78,800 Revenue - Volume Charge Residential $1,012,412 $836,559 $823,866 $862,985 $897,079 $928,158 $960,176 $993,280 $1,027,506 $1,062,891 $1,099,474 $1,137,297 Commercial $222,389 $216,310 $224,009 $230,729 $237,651 $244,780 $252,331 $259,901 $267,917 $275,955 $284,466 $293,000 Governmental $141,031 $167,792 $173,620 $178,829 $184,194 $189,719 $195,411 $201,273 $207,311 $213,531 $219,937 $226,535 Other $21,941 $22,539 $23,305 $24,004 $24,724 $25,466 $26,230 $27,017 $27,827 $28,662 $29,522 $30,407 Irrigation $370,474 $310,849 $321,647 $331,296 $341,235 $351,472 $362,016 $372,877 $384,063 $395,585 $407,452 $419,676 Total Revenue $1,768,246 $1,554,048 $1,566,446 $1,627,842 $1,684,882 $1,739,596 $1,796,164 $1,854,347 $1,914,624 $1,976,623 $2,040,852 $2,106,915 WATER FUNDX-E-01 43 Financial Plans Table 10 Water Fund Page 3 of 3City of Hastings Customers and Charges for Sales and Development Revenue Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Availability Charge (WAC) Residential $113,006 $724,163 $157,694 $393,281 $215,861 $106,452 $103,495 $103,495 $103,495 $103,495 $103,495 $103,495 Commercial $0 $0 $2,306 $0 $0 $0 $2,957 $0 $2,957 $0 $2,957 $0 Governmental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Irrigation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue $113,006 $724,163 $160,000 $393,281 $215,861 $106,452 $106,452 $103,495 $106,452 $103,495 $106,452 $103,495 Total Unadjusted Revenue $2,632,211 $3,055,001 $2,534,201 $2,877,974 $2,803,833 $2,794,174 $2,898,326 $3,003,416 $3,119,448 $3,233,820 $3,359,589 $3,484,093 Adjustments / other changes 1 $44,368 -$4,449 -$26,228 Total Revenue Calculated $2,676,579 $3,050,552 $2,507,973 $2,877,974 $2,803,833 $2,794,174 $2,898,326 $3,003,416 $3,119,448 $3,233,820 $3,359,589 $3,484,093 Total Revenue from Service Charges $2,519,205 $2,330,838 $2,374,201 $2,484,693 $2,587,972 $2,687,722 $2,791,874 $2,899,921 $3,012,996 $3,130,325 $3,253,137 $3,380,598 Total Revenue Other / Adjustments $44,368 -$4,449 -$26,228 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Connection Charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Availability Charges $113,006 $724,163 $160,000 $393,281 $215,861 $106,452 $106,452 $103,495 $106,452 $103,495 $106,452 $103,495 Total $2,676,579 $3,050,552 $2,507,973 $2,877,974 $2,803,833 $2,794,174 $2,898,326 $3,003,416 $3,119,448 $3,233,820 $3,359,589 $3,484,093 Note: 1. The Adjustments/other changes is the difference between how the Study calculated revenue compared to revenue reported in the city's financial statements or budget document. The difference are subject to further review. WATER FUNDX-E-01 44 Financial Plans SEWER FUND The financial plan for the Sewer Fund reflects the adopted rates for 2024 and proposed future year increases averaging 4.5% annually. Interest income is earned on the cash balance in the Fund that is recorded as revenue. The investment earnings rate is projected to be 2.0% for future years. Expenses The expenses are for payment of operating expenses, debt service expense, and depreciation expense. The Plan anticipates a 3.0% annual inflationary increase in operating expenses and .33 personnel (FTE) additions. Debt service expense includes interest expense on both ex- isting outstanding bonds and for anticipated new issuance. The Plan models annual depreciation expense on both exist- ing capital assets and anticipated new assets to be acquired. With the inclusion of depreciation expense, annual operat- ing losses are shown within the Sewer Fund, on a declin- ing basis beginning in 2030, due to the retirement of debt service. The Sewer Fund includes annual transfers to other funds based on historical levels. MCES charges the city a fee for the regional collection and treatment of wastewater (disposal charges). The city does not have control over this operating expense. Future charges payable to the MCES are projected based on total estimated sanitary sewer volume reported to the MCES with an esti- mated 6.8% increase in 2024 and 5.0% annual increase in years 2025-2032 per unit of volume. The City should closely monitor changes to MCES charges and adjust rates as neces- sary. MCES uses an allocation method based on previous flow to calculate each municipality’s charges. For example, the SEWER FUND Background The Sewer Fund is used to account for the operating and capital improvement costs related to maintenance of the sanitary sewer system. The sanitary sewer utility system provides for the collection and treatment of wastewater. The treatment of wastewater is provided by Metropolitan Council Environmental Services (MCES). The city builds and maintains the collection system that transports wastewater to the MCES treatment facilities. The Sewer Fund is in sound financial condition, but nota- bly the level of reserves and net assets as percentage of expense is comparatively less than compared to the Water Fund. The Plan proposes higher rate increases for sewer services compared to water. Future development will increase the demands on the sanitary sewer utility infrastructure but will also provide increased revenue to support the maintenance and opera- tion of the system. The city anticipates collection of future development fees to support expansion of the system as the community con- tinues to grow. Development fees are accounted for in the Sewer Fund. Revenues The major source of revenue comes from the collection of quarterly charges, including a fixed based charge to each customer, along with volume-based charges for sanitary sewer volume billed. X-E-01 45 Financial Plansmethod uses 2022 calendar year flow to allocate 2023 fees. The city pays the Metropolitan Council a disposal charge based on volume. Disposal charges payable to the MCES represent approximately 48% of the estimated 2023 ex- penses in the Sewer Fund, increasing to an average of 58% in years 2024-2032. Cash Balance The financial plan includes projected assets and liabilities for the Fund. This includes projected annual year-end cash balance. A table that follows provides a detailed summary on projected change in cash year by year. Based on assumptions in the Plan, including collection of development fees related to growth (that will be used to pay for future capital improvements), it is projected that the cash balance position of the Fund will decrease over the planning period. The Fund is projected to have future cash sufficient to meet the objectives for cash balance, including cash sufficient to cover: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements The sufficiency of the estimated reserves for capital im- provements will depend on future capital improvement projects that may not yet be programmed in the CIP. SEWER FUNDX-E-01 46 Financial Plans Table 11 Sewer FundCity of Hastings Finance Plan Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Charges for services 2,608,421 2,627,715 2,876,876 2,885,742 3,044,592 3,196,539 3,355,996 3,522,878 3,698,458 3,882,211 4,075,529 4,277,844 Availability charges 108,984 222,548 60,000 188,760 104,390 51,480 51,480 50,050 51,480 50,050 51,480 50,050 Penalties and other revenues - - 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 15,657 Investment income and other earnings (2,774) (44,484) 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 18,267 Connection charges - - - - - - - - - - - - Intergovernmental revenues - - - - - - 1,950,000 - - - - - Other revenues and special items 37,299 169,082 - - - - - - - - - - Special assessments (233) - - - - - - - - - - - Transfers in 18,333 18,333 18,333 18,883 19,449 20,033 20,634 21,253 21,891 22,547 23,224 23,920 Capital contributions 223,782 339,292 - - - - - - - - - - Total Revenues 2,993,812 3,332,486 2,981,209 3,120,164 3,196,015 3,296,463 5,407,373 3,624,323 3,802,874 3,986,785 4,183,169 4,385,738 Expenses Fixed Expenses Personnel services 321,850 383,932 437,876 451,012 464,543 478,479 492,833 507,618 522,847 538,532 554,688 571,329 Personnel services / FTE changes - - - - 30,333 31,243 32,181 33,146 34,140 35,165 36,220 37,306 Transfers out General Fund - - - - - - - - - - - - Transfer out Debt Service Fund - - - - - - - - - - - - Transfer out Other Funds 387,429 37,293 39,158 40,333 41,543 42,789 44,073 45,395 46,757 48,159 49,604 51,092 Interest and fiscal expense 32,068 58,955 50,379 60,837 84,713 119,463 130,263 147,588 179,088 243,213 222,535 237,891 Depreciation 476,605 493,793 504,543 521,143 543,343 555,043 609,843 633,843 675,043 681,043 698,943 709,443 Subtotal Fixed Expenses 1,217,952 973,973 1,031,956 1,073,325 1,164,474 1,227,017 1,309,192 1,367,590 1,457,874 1,546,112 1,561,990 1,607,062 Variable Expenses Supplies 5,358 6,201 6,400 6,592 6,790 6,993 7,203 7,419 7,642 7,871 8,107 8,351 Repairs and maintenance 102,471 1,600 65,000 66,950 68,959 71,027 73,158 75,353 77,613 79,942 82,340 84,810 MCES Disposal Charges 1,412,707 1,595,532 1,659,271 1,806,822 1,914,248 2,018,807 2,129,036 2,244,970 2,367,460 2,496,287 2,632,392 2,775,538 Professional services and other expense 219,428 182,409 124,324 128,054 131,895 135,852 139,928 144,126 148,449 152,903 157,490 162,215 Bond issuance cost - - - 15,000 20,000 10,000 15,000 25,000 40,000 - 20,000 10,000 Subtotal Variable Expenses 1,739,964 1,785,742 1,854,995 2,023,418 2,141,891 2,242,680 2,364,325 2,496,868 2,641,165 2,737,003 2,900,330 3,040,913 Total Expenses 2,957,916 2,759,715 2,886,951 3,096,743 3,306,366 3,469,696 3,673,517 3,864,458 4,099,039 4,283,115 4,462,320 4,647,975 Beginning net position 11,153,684 11,189,580 11,762,351 11,856,608 11,880,030 11,769,679 11,596,446 13,330,302 13,090,167 12,794,002 12,497,671 12,218,520 Change in Net Position 35,896 572,771 94,258 23,422 (110,351) (173,234) 1,733,856 (240,135) (296,165) (296,330) (279,151) (262,237) Ending net position 11,189,580 11,762,351 11,856,608 11,880,030 11,769,679 11,596,446 13,330,302 13,090,167 12,794,002 12,497,671 12,218,520 11,956,283 SEWER FUNDX-E-01 47 Financial Plans SEWER FUNDTable 11 Sewer FundCity of Hastings Finance Plan Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Assets and Deferred Outflow of Resources Cash and cash equivalents 3,285,758 3,457,029 3,783,065 4,124,530 4,324,460 4,393,248 4,418,967 4,409,740 4,335,729 3,852,601 3,704,605 3,569,076 Due from other governments - - - - - - - - - - - - Due from other funds / advances - - - - - - - - - - - - Special assessments receivable 15,358 13,527 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Other assets / receivables 841,186 848,936 850,000 858,500 867,085 875,756 884,513 893,359 902,292 911,315 920,428 929,632 Capital assets 20,438,295 21,482,497 22,019,997 22,849,997 23,959,997 24,544,997 27,284,997 28,484,997 30,544,997 30,844,997 31,739,997 32,264,997 Less Accumulated depreciation (11,453,653) (11,926,911) (12,431,454) (12,952,597) (13,495,940) (14,050,983) (14,660,826) (15,294,669) (15,969,712) (16,650,755) (17,349,698) (18,059,141) Deferred outflows of resources 148,311 117,240 125,000 128,750 132,613 136,591 140,689 144,909 149,257 153,734 158,346 163,097 Total Assets and Deferred Outflows 13,275,255 13,992,318 14,361,608 15,024,180 15,803,215 15,914,609 18,083,340 18,653,336 19,977,562 19,126,893 19,188,678 18,882,662 Liabilities and Deferred Inflow of Resources Other current liabilities / payables 194,282 195,498 195,000 198,900 202,878 206,936 211,074 215,296 219,602 223,994 228,474 233,043 Contracts payable - - - - - - - - - - - - Due to other governments - - - - - - - - - - - - Bonds payable 1,340,000 1,550,000 1,790,000 2,440,000 3,340,000 3,635,000 4,080,000 4,900,000 6,510,000 5,945,000 6,275,000 6,220,000 Unamortized bond premium 111,704 119,010 100,000 80,000 60,000 40,000 20,000 - - - - - Net pension liability (non-current)163,873 125,802 175,000 180,250 185,658 191,227 196,964 202,873 208,959 215,228 221,685 228,335 Other non-current liabilities 120,127 232,722 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 Deferred inflows of resources 155,689 6,936 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Total Liabilities and Deferred Inflows 2,085,675 2,229,968 2,505,000 3,144,150 4,033,536 4,318,163 4,753,038 5,563,169 7,183,561 6,629,222 6,970,158 6,926,378 Total Liabilities, Deferred Inflows, and Net Position 13,275,255 13,992,318 14,361,608 15,024,180 15,803,215 15,914,609 18,083,340 18,653,336 19,977,562 19,126,893 19,188,678 18,882,662 Net investments in capital assets 7,532,938 7,886,576 7,698,543 7,377,400 7,064,057 6,819,014 8,524,171 8,290,328 8,065,285 8,249,242 8,115,299 7,985,856 Unrestricted net position 3,656,642 3,875,775 4,158,065 4,502,630 4,705,622 4,777,432 4,806,131 4,799,839 4,728,716 4,248,429 4,103,221 3,970,427 Total net position 11,189,580 11,762,351 11,856,608 11,880,030 11,769,679 11,596,446 13,330,302 13,090,167 12,794,002 12,497,671 12,218,520 11,956,283 X-E-01 48 Financial Plans Table 12 Sewer Fund City of Hastings Ending Cash Balance Sewer Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 2,292,871 2,459,430 2,616,767 2,742,402 2,874,339 3,012,632 3,158,152 3,310,700 3,471,238 3,639,549 Capital Acquisition and Cost of Issuance of Bonds 537,500 845,000 1,130,000 595,000 2,755,000 1,225,000 2,100,000 300,000 915,000 535,000 Other Interfund Transfers 39,158 40,333 41,543 42,789 44,073 45,395 46,757 48,159 49,604 51,092 Debt Service (includes transfers for debt)170,379 255,837 314,713 419,463 490,263 552,588 669,088 808,213 807,535 827,891 Total Use of Cash 3,039,908 3,600,600 4,103,023 3,799,653 6,163,674 4,835,615 5,973,996 4,467,072 5,243,377 5,053,532 Source of Cash Revenue from Service Charges 2,902,876 2,912,522 3,072,175 3,224,950 5,335,259 3,553,020 3,729,503 3,914,187 4,108,465 4,311,768 Revenue from Connection and Availability Charges 60,000 188,760 104,390 51,480 51,480 50,050 51,480 50,050 51,480 50,050 Bond Proceeds 360,000 845,000 1,130,000 595,000 805,000 1,225,000 2,100,000 - 915,000 535,000 Interfund Transfers 18,333 18,883 19,449 20,033 20,634 21,253 21,891 22,547 23,224 23,920 Total Source of Cash 3,341,209 3,965,164 4,326,015 3,891,463 6,212,373 4,849,323 5,902,874 3,986,785 5,098,169 4,920,738 Net Change in Other Assets and Liabilities 24,735 (23,100) (23,062) (23,022) (22,980) (22,935) (2,889) (2,840) (2,788) (2,735) Change in Cash Balance 326,036 341,465 199,930 68,788 25,719 (9,228) (74,011) (483,127) (147,997) (135,528) Beginning Cash Balance 3,457,029 3,783,065 4,124,530 4,324,460 4,393,248 4,418,967 4,409,740 4,335,729 3,852,602 3,704,605 Total Projected Ending Cash 3,783,065 4,124,530 4,324,460 4,393,248 4,418,967 4,409,740 4,335,729 3,852,602 3,704,605 3,569,077 Ending Cash by Purpose For future capital improvements 2,912,371 3,155,626 3,219,397 1,234,401 3,113,222 2,951,114 2,399,841 2,177,257 1,966,827 1,773,378 For following year pay-go capital - - - 1,950,000 - - 300,000 - - - For 3-months of operating cash 614,857 654,192 685,600 718,585 753,158 789,538 827,675 867,809 909,887 954,173 For following year debt service 255,837 314,713 419,463 490,263 552,588 669,088 808,213 807,535 827,891 841,525 Total Projected Ending Cash 3,783,065 4,124,530 4,324,460 4,393,248 4,418,967 4,409,740 4,335,729 3,852,602 3,704,605 3,569,077 Note: Cash balances include cash and investments. SEWER FUNDX-E-01 49 Financial Plans Table 13 Sewer FundCity of Hastings Customers and Charges for Sales and Development Revenue Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj CUSTOMER DATA Average Annual Billing Units (Customers) Residential 6,917 6,947 7,015 7,147 7,220 7,256 7,291 7,326 7,361 7,396 7,431 7,466 Commercial 372 371 372 372 372 372 373 373 374 374 375 375 Non-Profit - - - - - - - - - - - - Governmental 45 45 45 45 45 45 45 45 45 45 45 45 Other 1 1 1 1 1 1 1 1 1 1 1 1 Total Customers 7,335 7,363 7,432 7,564 7,637 7,673 7,709 7,744 7,780 7,815 7,851 7,886 Volume (in thousands of gallons) Residential 351,801 348,823 353,243 361,823 366,568 368,908 371,183 373,458 375,733 378,008 380,283 382,558 Commercial 69,341 69,042 69,107 69,107 69,107 69,107 69,172 69,172 69,237 69,237 69,302 69,302 Non-Profit - - - - - - - - - - - - Governmental 45,822 47,817 47,817 47,817 47,817 47,817 47,817 47,817 47,817 47,817 47,817 47,817 Other 15,561 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 15,322 Total Volume 482,525 481,004 485,489 494,069 498,814 501,154 503,494 505,769 508,109 510,384 512,724 514,999 REVENUE Revenue - Base Charge Residential $521,561 $529,045 $544,886 $580,121 $612,419 $643,169 $675,354 $709,133 $744,585 $781,791 $820,838 $861,816 Commercial $28,011 $28,217 $28,858 $30,157 $31,514 $32,932 $34,506 $36,059 $37,783 $39,483 $41,371 $43,232 Non-Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Governmental $3,393 $3,427 $3,496 $3,653 $3,817 $3,989 $4,169 $4,356 $4,552 $4,757 $4,971 $5,195 Other $75 $76 $78 $81 $85 $89 $93 $97 $101 $106 $110 $115 Total Revenue $553,040 $560,766 $577,318 $614,012 $647,835 $680,179 $714,122 $749,646 $787,021 $826,137 $867,290 $910,359 Revenue - Volume Charge Residential $1,502,190 $1,503,427 $1,554,269 $1,663,662 $1,761,326 $1,852,335 $1,947,628 $2,047,745 $2,152,929 $2,263,433 $2,379,523 $2,501,477 Commercial $296,086 $297,571 $304,071 $317,754 $332,053 $346,995 $362,951 $379,284 $396,724 $414,577 $433,639 $453,153 Non-Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Governmental $195,660 $206,091 $210,395 $219,863 $229,756 $240,095 $250,900 $262,190 $273,989 $286,318 $299,203 $312,667 Other $66,445 $66,038 $67,417 $70,451 $73,621 $76,934 $80,396 $84,014 $87,794 $91,745 $95,873 $100,188 Total Revenue $2,060,382 $2,073,127 $2,136,152 $2,271,729 $2,396,756 $2,516,360 $2,641,874 $2,773,233 $2,911,436 $3,056,073 $3,208,239 $3,367,485 SEWER FUNDX-E-01 50 Financial Plans Table 13 Sewer FundCity of Hastings Customers and Charges for Sales and Development Revenue Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Availability Charge (SAC) and Interceptor Sewer Fee Residential $183,411 $374,838 $116,988 $188,760 $104,390 $51,480 $50,050 $50,050 $50,050 $50,050 $50,050 $50,050 Commercial $0 $0 $1,194 $0 $0 $0 $1,430 $0 $1,430 $0 $1,430 $0 Non-Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Governmental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue $183,411 $374,838 $118,181 $188,760 $104,390 $51,480 $51,480 $50,050 $51,480 $50,050 $51,480 $50,050 Total Unadjusted Revenue $2,796,832 $3,008,732 $2,831,651 $3,074,502 $3,148,982 $3,248,019 $3,407,476 $3,572,928 $3,749,938 $3,932,261 $4,127,009 $4,327,894 Adjustments / other changes 1 -$79,427 -$158,469 $105,225 Total Revenue Calculated $2,717,405 $2,850,263 $2,936,876 $3,074,502 $3,148,982 $3,248,019 $3,407,476 $3,572,928 $3,749,938 $3,932,261 $4,127,009 $4,327,894 Total Revenue from Service Charges $2,613,422 $2,633,893 $2,713,469 $2,885,742 $3,044,592 $3,196,539 $3,355,996 $3,522,878 $3,698,458 $3,882,211 $4,075,529 $4,277,844 Total Revenue Other / Adjustments -$79,427 -$158,469 $105,225 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Connection Charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Availability Charges $183,411 $374,838 $118,181 $188,760 $104,390 $51,480 $51,480 $50,050 $51,480 $50,050 $51,480 $50,050 Total $2,717,405 $2,850,263 $2,936,876 $3,074,502 $3,148,982 $3,248,019 $3,407,476 $3,572,928 $3,749,938 $3,932,261 $4,127,009 $4,327,894 Note: 1. The Adjustments/other changes is the difference between how the Study calculated revenue compared to revenue reported in the city's financial statements or budget document. The difference are subject to further review. SEWER FUNDX-E-01 51 Financial Plans STORM FUNDSTORM FUND Debt service expense includes interest expense on antici- pated new bond issuance. The Storm Fund includes annual transfers to other funds based on historical levels. Cash Balance The financial plan includes projected assets and liabilities for the Fund. This includes projected annual year-end cash balance. A table that follows provides a detailed summary on projected change in cash year by year. Based on assumptions in the Plan, which does not include any collection of development fees related to growth, it is projected that the cash balance position of the Fund will decrease over the planning period. The Fund is projected to have future cash sufficient to meet the objectives for cash balance, including cash sufficient to cover: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements The sufficiency of the estimated reserves for capital im- provements will depend on future capital improvement projects that may not yet be programmed in the CIP. Background The Storm Fund is used to account for the operating and capital improvement costs related to maintenance of the stormwater system. The city builds and maintains the col- lection system that transports and manages stormwater. The Storm Fund is in sound financial condition. Future de- velopment will increase the demands on the sanitary sewer utility infrastructure but will also provide increased revenue to support the maintenance and operation of the system. The Plan does not include collection of future development fees to support the stormwater system. Revenues The major source of revenue comes from the collection of quarterly charges from a fixed charge that is based on cus- tomer classification. The financial plan for the Storm Fund reflects the adopted rates for 2023 and proposed future year increases averag- ing 4.0% annually. Interest income is earned on the cash balance in the Fund that is recorded as revenue. The investment earnings rate is projected to be 2.0% for future years. Expenses The expenses are for payment of operating expenses, in- cluding depreciation expense. The Plan anticipates a 3.0% annual inflationary increase in operating expenses and .33 personnel (FTE) additions. X-E-01 52 Financial Plans Table 14 Storm Fund City of Hastings Finance Plan Storm Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Charges for services 761,135 802,509 829,762 813,643 852,995 890,605 930,242 971,123 1,014,308 1,058,851 1,105,900 1,154,430 Availability charges - - - - - - - - - - - - Penalties and other revenues - (49,568) 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567 Investment income and other earnings (1,270) (31,805) 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 3,914 Connection charges - - - - - - - - - - - - Intergovernmental revenues 119,525 - - - - - - - - - - - Other revenues and special items - - - - - - - - - - - - Special assessments - - - - - - - - - - - - Special item - - - - - - - - - - - - Transfers in - - - - - - - - - - - - Capital contributions 260,554 - - - - - - - - - - - Total Revenues 1,139,944 721,136 836,262 820,338 859,890 897,708 937,558 978,658 1,022,070 1,066,845 1,114,134 1,162,911 Expenses Fixed Expenses Personnel services 308,885 362,258 401,250 413,288 425,686 438,457 451,610 465,159 479,113 493,487 508,291 523,540 Personnel services / FTE changes - - - - 30,333 31,243 32,181 33,146 34,140 35,165 36,220 37,306 Transfer out Other Funds 7,526 8,655 9,088 9,361 9,641 9,931 10,229 10,535 10,852 11,177 11,512 11,858 Interest and fiscal expense - - - - 26,300 23,800 21,400 46,100 41,100 35,900 66,700 57,900 Depreciation 32,093 42,872 45,212 58,712 72,912 79,412 93,312 103,812 110,312 128,812 137,312 144,812 Subtotal Fixed Expenses 348,504 413,785 455,550 481,360 564,872 582,842 608,731 658,752 675,517 704,540 760,035 775,416 Variable Expenses Supplies 3,856 5,132 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 3,914 Meters - - - - - - - - - - - - Repairs and maintenance - - - - - - - - - - - - Professional services and other expense 58,653 84,596 101,397 104,439 107,572 110,799 114,123 117,547 121,073 124,706 128,447 132,300 Bond issuance cost - - - 15,000 - - 15,000 - - 20,000 - 5,000 Subtotal Variable Expenses 62,509 89,728 104,397 122,529 110,755 114,077 132,500 121,025 124,655 148,395 132,247 141,214 Total Expenses 411,013 503,513 559,947 603,889 675,627 696,920 741,231 779,777 800,172 852,935 892,282 916,630 Change in Net Position 728,931 217,623 276,315 216,449 184,263 200,788 196,327 198,882 221,897 213,910 221,852 246,281 Ending net position 1,640,105 1,857,728 2,134,044 2,350,493 2,534,756 2,735,544 2,931,872 3,130,753 3,352,651 3,566,560 3,788,412 4,034,693 X-E-01 53 Financial Plans Table 14 Storm Fund City of Hastings Finance Plan Storm Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Charges for services 761,135 802,509 829,762 813,643 852,995 890,605 930,242 971,123 1,014,308 1,058,851 1,105,900 1,154,430 Availability charges - - - - - - - - - - - - Penalties and other revenues - (49,568) 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567 Investment income and other earnings (1,270) (31,805) 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 3,914 Connection charges - - - - - - - - - - - - Intergovernmental revenues 119,525 - - - - - - - - - - - Other revenues and special items - - - - - - - - - - - - Special assessments - - - - - - - - - - - - Special item - - - - - - - - - - - - Transfers in - - - - - - - - - - - - Capital contributions 260,554 - - - - - - - - - - - Total Revenues 1,139,944 721,136 836,262 820,338 859,890 897,708 937,558 978,658 1,022,070 1,066,845 1,114,134 1,162,911 Expenses Fixed Expenses Personnel services 308,885 362,258 401,250 413,288 425,686 438,457 451,610 465,159 479,113 493,487 508,291 523,540 Personnel services / FTE changes - - - - 30,333 31,243 32,181 33,146 34,140 35,165 36,220 37,306 Transfer out Other Funds 7,526 8,655 9,088 9,361 9,641 9,931 10,229 10,535 10,852 11,177 11,512 11,858 Interest and fiscal expense - - - - 26,300 23,800 21,400 46,100 41,100 35,900 66,700 57,900 Depreciation 32,093 42,872 45,212 58,712 72,912 79,412 93,312 103,812 110,312 128,812 137,312 144,812 Subtotal Fixed Expenses 348,504 413,785 455,550 481,360 564,872 582,842 608,731 658,752 675,517 704,540 760,035 775,416 Variable Expenses Supplies 3,856 5,132 3,000 3,090 3,183 3,278 3,377 3,478 3,582 3,690 3,800 3,914 Meters - - - - - - - - - - - - Repairs and maintenance - - - - - - - - - - - - Professional services and other expense 58,653 84,596 101,397 104,439 107,572 110,799 114,123 117,547 121,073 124,706 128,447 132,300 Bond issuance cost - - - 15,000 - - 15,000 - - 20,000 - 5,000 Subtotal Variable Expenses 62,509 89,728 104,397 122,529 110,755 114,077 132,500 121,025 124,655 148,395 132,247 141,214 Total Expenses 411,013 503,513 559,947 603,889 675,627 696,920 741,231 779,777 800,172 852,935 892,282 916,630 Change in Net Position 728,931 217,623 276,315 216,449 184,263 200,788 196,327 198,882 221,897 213,910 221,852 246,281 Ending net position 1,640,105 1,857,728 2,134,044 2,350,493 2,534,756 2,735,544 2,931,872 3,130,753 3,352,651 3,566,560 3,788,412 4,034,693 X-E-01 54 Financial Plans Table 15 Storm Fund City of HastingsEnding Cash Balance Storm Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance 505,647 520,816 566,774 583,777 601,291 619,330 637,909 657,047 676,758 697,061 Capital Acquisition and Cost of Issuance of Bonds 117,000 690,000 710,000 325,000 710,000 525,000 325,000 945,000 425,000 380,000 Other Interfund Transfers 9,088 9,361 9,641 9,931 10,229 10,535 10,852 11,177 11,512 11,858 Debt Service (includes transfers for debt)- - 91,300 83,800 81,400 171,100 166,100 170,900 281,700 282,900 Total Use of Cash 631,735 1,220,177 1,377,716 1,002,508 1,402,919 1,325,965 1,139,861 1,784,124 1,394,970 1,371,819 Source of Cash Revenue from Service Charges 836,262 820,338 859,890 897,708 937,558 978,658 1,022,070 1,066,845 1,114,134 1,162,911 Revenue from Connection and Availability Charges - - - - - - - - - - Bond Proceeds - 690,000 - - 710,000 - - 945,000 - 305,000 Interfund Transfers - - - - - - - - - - Total Source of Cash 836,262 1,510,338 859,890 897,708 1,647,558 978,658 1,022,070 2,011,845 1,114,134 1,467,911 Net Change in Other Assets and Liabilities 95,972 9,500 9,775 10,058 10,350 10,650 10,959 11,277 11,605 11,942 Change in Cash Balance 300,499 299,661 (508,050) (94,742) 254,989 (336,657) (106,832) 238,999 (269,232) 108,035 Beginning Cash Balance 1,096,269 1,396,768 1,696,429 1,188,379 1,093,637 1,348,625 1,011,968 905,136 1,144,135 874,903 Total Projected Ending Cash 1,396,768 1,696,429 1,188,379 1,093,637 1,348,625 1,011,968 905,136 1,144,135 874,903 982,938 Ending Cash by Purpose For future capital improvements 1,266,564 753,435 633,634 861,914 497,693 361,391 569,974 268,245 342,738 183,045 For following year pay-go capital - 775,000 325,000 - 525,000 325,000 - 425,000 75,000 300,000 For 3-months of operating cash 130,204 141,694 145,944 150,323 154,832 159,477 164,262 169,190 174,265 179,493 For following year debt service - 26,300 83,800 81,400 171,100 166,100 170,900 281,700 282,900 320,400 Total Projected Ending Cash 1,396,768 1,696,429 1,188,379 1,093,637 1,348,625 1,011,968 905,136 1,144,135 874,903 982,938 Note: Cash balances include cash and investments. X-E-01 55 Financial Plans Table 16 Storm FundCity of Hastings Customers and Charges for Sales and Development Revenue Storm Fund 2 3 4 5 6 7 8 9 10 11 12 13 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj CUSTOMER DATA Average Annual REU Units (Customers) Residential 7,056 7,164 7,232 7,364 7,437 7,473 7,508 7,543 7,578 7,613 7,648 7,683 Commercial 334 332 333 333 333 333 334 334 335 335 336 336 Non-Profit - - - - - - - - - - - - Governmental - - - - - - - - - - - - Other 108 115 115 115 115 115 115 115 115 115 115 115 Total Customers 7,498 7,611 7,680 7,812 7,885 7,921 7,957 7,992 8,028 8,063 8,099 8,134 REVENUE Revenue - REU ChargeResidential $562,202 $593,732 $623,377 $660,145 $693,357 $724,582 $757,095 $791,050 $826,509 $863,540 $902,210 $942,593 Commercial $127,599 $132,003 $137,702 $143,210 $148,939 $154,896 $161,576 $168,039 $175,284 $182,295 $190,153 $197,759 Non-Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Governmental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $8,605 $9,510 $9,891 $10,287 $10,699 $11,127 $11,572 $12,034 $12,516 $13,016 $13,537 $14,079Irrigation Total Revenue $698,407 $735,245 $770,970 $813,643 $852,995 $890,605 $930,242 $971,123 $1,014,308 $1,058,851 $1,105,900 $1,154,430 Access Charge Residential $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Commercial $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Non-Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Governmental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Total Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Unadjusted Revenue $698,407 $735,245 $770,970 $813,643 $852,995 $890,605 $930,242 $971,123 $1,014,308 $1,058,851 $1,105,900 $1,154,430 Adjustments / other changes 1 $62,728 $67,264 $58,792 Total Revenue Calculated $761,135 $802,509 $829,762 $813,643 $852,995 $890,605 $930,242 $971,123 $1,014,308 $1,058,851 $1,105,900 $1,154,430 Total Revenue from Service Charges $698,407 $735,245 $770,970 $813,643 $852,995 $890,605 $930,242 $971,123 $1,014,308 $1,058,851 $1,105,900 $1,154,430 Total Revenue Other / Adjustments $62,728 $67,264 $58,792 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Connection Charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue from Availability Charges $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total $761,135 $802,509 $829,762 $813,643 $852,995 $890,605 $930,242 $971,123 $1,014,308 $1,058,851 $1,105,900 $1,154,430 X-E-01 56 Appendixes APPENDIXES X-E-01 57 AppendixesAppendix A PFAS Scenario Comparison Memo Hastings Water Fund Scenarios Page 0 City of Hastings, MN Utility Study Finance Plan Development for Water Fund Presentation of Potential Scenarios to City Staff As of August 4, 2023 Prepared by Northland Public Finance X-E-01 58 Appendixes Hastings Water Fund Scenarios Page 1 TABLE OF CONTENTS INTRODUCTION 1 SCENARIOS 1 Scenario A 3 Scenario B 2 Scenario C 4 PRESENTATION AND COMPARISON OF SCENARIOS 3 COMPARISON OF WATER UTILITY BILLS TO OTHER CITEIS 4 COMPARISON OF SCENARIOS 4 SCENARIO REPORTS 4 EXHIBITS Exhibit A: Charts 5 Exhibit B: Comparison of Water Utility Bills to Other Cities 8 Exhibit C: Comparison of Scenarios 11 Exhibit D: Scenario A Report 12 Exhibit E: Scenario B Report 13 Exhibit F: Scenario C Report 14 X-E-01 59 Appendixes Hastings Water Fund Scenarios Page 1 INTRODUCTION The City of Hastings engaged Northland to aid the city with a study of the municipal utility funds for development of the scenarios for funding future planned capital improvements, including related debt service on planned bond issuance to support the planned capital improvements. The aims of the study, which in process, are as follows: • Revenue Sufficiency – For the Enterprise Funds, develop and populate a forecasting model to decide the level of revenue needed to fund planned operations, capital improvements, and debt service while maintaining adequate reserves for future services and capital needs. • Rate Calculations - Model projected future utility fees and charges for revenue sufficiency. The study includes planned future capital improvements for years 2023-2033. Estimates were made by the city for capital improvement project costs and the timing of projects. While the specific timing and costs of future improvements is uncertain, awareness of the projects and the funding needed for each project are important when considering utility fees and charges and level of reserves. Future development of property within the city will supply increased utility revenue from charges for services. The rate of future development and addition of new utility customers is a significant variable for the study. Future development will affect the projected service demands and revenues included in the study. The purpose of this document is to supply preliminary information to the city on three different scenarios specific to the Water Fund. Northland will update the study and final report based on the city’s direction to Northland on which of the three scenarios should be incorporated into the final “Financial Management Plan For Water Fund, Sewer Fund, and Storm Water Fund (Utility Study)”. SCENARIOS There are three scenarios presented for review and discussion with city staff, as outlined below. Scenario A Scenario A is presented as the “base” scenario. The results and key assumptions and parameters for this scenario are as follows: RESULTS 1. Total average annual change in utility bills for water services for all users, including high volume, medium volume, and low volume, over the planning period (10 years) does not exceed 3.5%. 2. Annual ending cash balances for the Water Fund between 2023-2033 are projected to be sufficient to cover at a minimum the following: three months of operating expense; following year planned pay-go capital improvements; and following year debt service. Cash balance is projected above minimum amounts for future capital improvements. ASSUMPTIONS 1. City will issue debt as needed to spread the financial impact of capital improvements over multiple years to achieve the parameters for average annual change in water utility bills, as listed in item 1 above. Total bonds issued between years 2024 and 2028 is $9.945 million; and no bonds issued between 2029-2033. Debt issuance is assumed as follows: - $2.55 million in 2025 X-E-01 60 Appendixes Hastings Water Fund Scenarios Page 2 - $3.825 million in 2027 - $3.57 million in 2028 2. City will structure amortization of debt to achieve the parameters for average annual change in water utility bills as listed in items 1 above. 3. City will implement its plans for personnel increases, including positions and wage adjustments as planned and salary and wages, personnel costs are assumed to increase by approximately 3.0% annually. 4. Non-personnel operating expenses are assumed to increase by an average of approximately 3.0% annually. 5. City will annually adjust fees for water services at amounts needed to achieve revenue sufficiency for the Water Fund. This includes annual increases for fees for meters, usage, and water availability charge (WAC). Scenario B Scenario B is based on the same assumptions as Scenario A, except Scenario B includes future capital improvements for water treatment facility improvements and issuance of bonds to finance the improvements. RESULTS Because Scenario B includes spending for water treatment facility improvements and issuance of bonds to finance these improvements, Scenario B does not achieve the same results as Scenario A. The results for Scenario B are as follows: 1. Total average annual change in utility bills for water services, for all users including high volume, medium volume, and low volume, over the planning period (10 years) will average 14.5%. This scenario includes larger increases between years 2024-2028, with a five-year average annual increase of 26.4%. 2. Total average annual change for City Water Availability Charge (WAC) will average 4.0%. 3. Ending cash balances for the Water Fund is projected to be sufficient to cover at a minimum the following: three months of operating expense; following year planned pay- go capital improvements; and following year debt service. Cash balance is projected above minimum amounts for future capital improvements. ASSUMPTIONS Same assumptions as Scenario A, except Scenario B includes project costs and bonding for water treatment facilities, as noted above. 1. No external funding is assumed to be available for the water treatment facility improvements. Scenario B assumes the project costs are funded entirely from customers of the water utility, and from fees and charges collected and deposited by the city into the Water Fund. 2. Water revenue bonds are structured with relatively level annual debt service over terms ranging from 10-25 years. The treatment facility improvements are structured over the longer 25-year term, bonds for other projects are structured over a 10 year terms. Total bonds issued between years 2024 and 2028 is $80.23 million; and no issuance between 2029-2033. Debt issuance is assumed as follows: X-E-01 61 Appendixes Hastings Water Fund Scenarios Page 3 a. $21.05 million in 2024 b. $29.775 million in 2025 c. $22.01 million in 2027 d. $3.57 million in 2028 Scenario C Scenario C is based on the same assumptions as Scenario A, except Scenario C includes $850,000 for costs related to planning for construction of future water treatment facilities. Only the planning dollars are included in Scenario C and not the construction costs. Results The results for Scenario C are as follows: 1. Total average annual change in utility bills for water services, for all users including high volume, medium volume, and low volume, over the planning period (10 years) will average 3.8%. This scenario includes slightly larger increases than Scenario A to supply funds related to planning for future treatment facility improvements. 2. Ending cash balances for the Water Fund is projected to be sufficient to cover at a minimum the following: three months of operating expense; following year planned pay-go capital improvements; and following year debt service. Cash balance is projected above minimum amounts for future capital improvements. ASSUMPTIONS Same assumptions as Scenario A, except Scenario C includes spending for capital improvement planning, as noted above. 1. Water revenue bonds are structured with relatively level annual debt service over term of 25 years. Total bonds issued between years 2024 and 2028 is $80.23 million; and no issuance between 2029-2033. Debt issuance is assumed as follows: a. $2.55 million in 2025 b. $1.42 million in 2026 c. $3.825 million in 2027 d. $3.57 million in 2028 e. $415,000 in 2032 PRESENTATION AND COMPARISON OF SCENARIOS Exhibit A includes charts to graphically present the results for the three scenarios based on the assumptions outlined above. The charts include the following information that is intended to summarize the data in the more detailed information included in the other exhibits that follow: Chart 1: City Quarterly Utility Bill for Water Services Chart 2: Five Year Average Annual % Increase in Quarterly Water Utility Bill Chart 3: Bonds Issued to Finance Improvements Supported by Water Revenues Chart 4: Total Principal Amount of Bonds Outstanding Supported by Water Revenues X-E-01 62 Appendixes Hastings Water Fund Scenarios Page 4 Chart 5: Total Debt Service Paid from Water Revenues Chart 6: Amortization of Bonds Supported by Water Revenues COMPARISON OF WATER UTILTY BILLS TO OTHER CITIES Exhibit B includes a comparison of water utility bills to other cities. A comparison to the City of Hastings’ water bills is provided for current year bills (year 2023) and future estimated Hastings’ water bills under Scenarios A, B, and C, for year 2028. Year 2028 is used for comparison purposes to account for the phasing of fee increases between years 2024-2028 under Scenario B and Scenario C. COMPARISON OF SCENARIOS Exhibit C includes a summary report with key financial data for each of the three scenarios. SCENARIO FINANCIAL RESULTS Exhibit D, Exhibit E, and Exhibit F includes reports for Scenario A, Scenario B, and Scenario C, respectively. X-E-01 63 Appendixes Exhibit A Hastings Water Fund Scenarios Page 5 Ch a r t 1 Ch a r t 2 $78 $78 $78$92 $238 $94$109 $272 $112 $0 $50 $100 $150 $200 $250 $300 Scenario A Scenario B Scenario C City Quarterly Utility Bill for Water ServicesWater bill for example residential customer with 36,000 gallons of water billed Year 2023 Year 2028 Year 2033 3.2%3.4%3.5% 23.1% 26.4% 28.6% 3.7%3.8%3.9% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% High User Medium User Low User Five Year Average Annual % Increase in Quarterly Water Utility Bill Scenario A Scenario B Scenario C X-E-01 64 Appendixes Exhibit A Hastings Water Fund Scenarios Page 6 C ha r t 3 Ch a r t 4 $9.945 $0.000 $80.230 $0.000 $11.365 $0.415$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Between years 2024 to 2028 Between years 2029 to 2033 Mill i o n s Bonds Issued to Finance Improvements Supported by Water Revenues Principal Amount of Bonds Issued Scenario A Scenario B Scenario C *The Plandoes not anticipate any bonding for Water Improvements under Scenario A and Scenario B, between years 2029-2033. $0 $10 $20 $30 $40 $50 $60 $70 $80 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Mill i o n s Total Principal Amount of Bonds OutstandingSupported by Water Revenue Scenario A Scenario B Scenario C X-E-01 65 Appendixes Exhibit A Hastings Water Fund Scenarios Page 7 Ch a r t 5 Ch a r t 6 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Mill i o n s Total Debt Serivce (Principal and Interest) Paid from Water RevenuesEstimated Based on Planned Capital Improvements and Bonding New Debt for Treatment / Extraordinary Improvements New Debt After 12/31/2023 Existing Debt as of 12/31/2023 56.9% 78.6% 68.1% 93.9% 0.0%20.0%40.0%60.0%80.0%100.0% Percent of debtamortized within fiveyears Percent of debtamortized within tenyears Amortization of Bonds Supported by Water RevenuePercent of Principal Repaid Over a Period of Time Scenario A Scenario B X-E-01 66 Appendixes EXHIBIT B Comparison of Water Utility Bills to Other Cities Includes City of Hastings Current Rates for Year 2023 and Estimated Future Rates for Scenarios A, B, and C for Year 2028 Hastings Water Fund Scenarios Page 8 $0 $1 0 $2 0 $3 0 $4 0 $5 0 $6 0 Cottage Grove Lakeville White Bear Lake Inver Grove Heights Rosemount Woodbury Plymouth Hastings Blaine Brooklyn Park Farmington Lino Lakes Spring Lake Park Eagan Oakdale Chaska Stillwater Minnetonka Hastings Scen A Yr 2028 Champlin Hastings Scen C Yr 2028 Apple Valley Lake Elmo South St. Paul Eden Prairie Bloomington Burnsville Long Lake Victoria Savage Prior Lake Maplewood Mendota Heights West St. Paul Carver St Francis St Bonifacius Loretto Hastings Scen B Yr 2028 Water Bill for 3,000 Gallons Monthly Volume -Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Note: Hastings Scenarios are based on estimated rates for year 2028. The comparison to the other cities does not account for any adjustments these other cities may make to water rates between year 2023 and 2028. X-E-01 67 Appendixes EXHIBIT B Comparison of Water Utility Bills to Other Cities Includes City of Hastings Current Rates for Year 2023 and Estimated Future Rates for Scenarios A, B, and C for Year 2028 Hastings Water Fund Scenarios Page 9 $0 $1 0 $2 0 $3 0 $4 0 $5 0 $6 0 $7 0 Cottage Grove White Bear Lake Lakeville Inver Grove Heights Rosemount Hastings Woodbury Plymouth Farmington Stillwater Blaine Spring Lake Park Lino Lakes Brooklyn Park Hastings Scen A Yr 2028 Oakdale Hastings Scen C Yr 2028 Champlin Apple Valley Eagan Chaska Lake Elmo Minnetonka South St. Paul Eden Prairie Burnsville Victoria Long Lake Bloomington Savage Prior Lake Maplewood Mendota Heights West St. Paul St Francis Carver St Bonifacius Hastings Scen B Yr 2028 Loretto Water Bill for 6,000 Gallons Monthly Volume -Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Note: Hastings Scenarios are based on estimated rates for year 2028. The comparison to the other cities does not account for any adjustments these other cities may make to water rates between year 2023 and 2028. X-E-01 68 Appendixes EXHIBIT B Comparison of Water Utility Bills to Other Cities Includes City of Hastings Current Rates for Year 2023 and Estimated Future Rates for Scenarios A, B, and C for Year 2028 Hastings Water Fund Scenarios Page 10 $0 $5 0 $1 0 0 $1 5 0 $2 0 0 $2 5 0 Hastings Hastings Scen A Yr 2028 Lakeville Hastings Scen C Yr 2028 Woodbury Farmington Rosemount Apple Valley Plymouth Lino Lakes Stillwater Spring Lake Park Blaine Oakdale Cottage Grove White Bear Lake Champlin Brooklyn Park Lake Elmo Inver Grove Heights Eden Prairie Eagan Burnsville Minnetonka Chaska South St. Paul Victoria Maplewood Savage Prior Lake Long Lake Hastings Scen B Yr 2028 St Francis Mendota Heights West St. Paul Bloomington St Bonifacius Carver Loretto Water Bill for 20,000 Gallons Monthly Volume -Residential Estimated Based on Published Rate Data and Interpretation of Fee Schedules Cities have different billing cycles for comparison billing is shown as monthly equivalent bills Note: Hastings Scenarios are based on estimated rates for year 2028. The comparison to the other cities does not account for any adjustments these other cities may make to water rates between year 2023 and 2028. X-E-01 Northland Securities, Inc.150 South Fifth Street , Suite 3300Minneapolis, MN 55402 Toll Free 1-800-851-2920 Main 612-851-5900www.northlandsecurities.comMember FINRA and SIPCRegistered with SEC and MSRB X-E-01 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 09 - - 23 A RESOLUTION ADOPTING THE PRELIMINARY 2024 CITY PROPERTY TAX LEVY, PRELIMINARY BUDGET, AND SETTING TRUTH IN TAXATION HEARING DATE WHEREAS, the City must annually prepare a budget that is responsive, responsible, and in alignment with our CORE values and strategic plan; and WHEREAS, departments prepare requests with are discussed and reviewed as a team and with the Finance Committee of the Council (Folch*, Fox, Leifeld); and WHEREAS, the Finance Committee and the City Council have met several times over the last few months to discuss the preliminary budget information; and WHEREAS, the committee has directed the City Administrator and staff to prepare a preliminary 2024 tax levy and budget, a special levy, and set a truth in taxation hearing date; and WHEREAS, provisions of the Minnesota Truth and Taxation Law require Cities to certify a Proposed Property Tax Levy and City Budget to the County Auditor by October 2, 2023; and WHEREAS, City staff was directed to set the 2024 City Preliminary levy at $18,649,930, the Preliminary Budget at $38,898,627, and to schedule a truth in taxation public hearing date at 7:00 p.m. on Monday, December 4, 2023 in the City Council Chambers at Hastings City Hall, with a continuation date (if needed) of Monday, December 18, 2023; and WHEREAS, the City has sufficient cash on hand to reduce the debt levy to $2,162,338. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; that the preliminary Property Tax Levy of the City of Hastings, for the 2024 City Budget to be certified is hereby adopted. Adopted this 18th day of September, 2023. _______________________________ Attest: Mary D. Fasbender, Mayor _____________________ ____ Kelly Murtaugh, City Clerk X-E-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 09 - - 23 A RESOLUTION APPROVING A PROPOSED 2024 HEDRA-HRA SPECIAL TAX LEVY WHEREAS, the Hastings Economic Development and Redevelopment Authority (the “Authority”) was created by the City Council of the City of Hastings (the “City”) pursuant to Minnesota Statutes, Sections 469.090 to 469.1081; and WHEREAS, the Authority was granted all of the powers of a municipal housing and redevelopment authority under Minnesota Statutes, Sections 469-001 to 469-047 (the “Act”); and WHEREAS, Section 469.033, Subdivision 6, of the Act, as amended, permits the Authority to levy and collect a special benefit tax of up to .0185 percent of taxable market value in the City upon all taxable property, real and personal, within the City; and WHEREAS, the Authority desires to levy such tax based upon the limit of .0185 % of the taxable market value; and WHEREAS, the levy of such a special benefit tax is subject to consent by Resolution of the City Council of the City of Hastings. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; that the City of Hastings HRA Special Levy be granted subject to the limit of .0185 percent of taxable market value as per Minnesota Statute. Adopted this 18th day of September 2023. _______________________________ Mary D. Fasbender, Mayor Attest: ___________________________ Kelly Murtaugh, City Clerk X-E-03